GLM III, LP and its affiliated investment manager GoldenTree Asset Management LP announced the closing of a $599 million collateralized loan obligation (CLO) to be managed by GLM III.
Through closing this CLO, GoldenTree Loan Management US CLO 22 (“GLM US CLO 22”), GoldenTree has issued 29 CLOs totaling approximately $16 billion under its GLM CLO strategy. Since its founding in January 2017, the GLM strategy has been intended to comply with applicable risk retention regulations. While a US Court of Appeals ruling on February 9, 2018, led to the repeal of US risk retention rules for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom Risk Retention regulations.
GLM US CLO 22 will initially be backed by a 100% ramped $598 million portfolio of primarily senior secured loans as of closing. It will have a five-year reinvestment period and a two-year non-call period.
GLM US CLO 22 issued $384 million of AAA-rated senior notes with a coupon of S+1.33% – along with lower-rated senior, mezzanine, and junior notes, for an overall weighted average coupon of S+1.76%.
Since its founding in 2000, GoldenTree has issued over $25 billion of CLOs/CBOs, with over $13 billion currently outstanding. GoldenTree’s investment team is comprised of nearly 100 individuals covering over 30 industries and having on average 15 years of experience. And GoldenTree has been an active investor in structured credit since 2007 and currently manages over $7 billion of structured credit investments across the firm.
GoldenTree is an employee-owned global asset management firm specializing in opportunities across the credit universe in sectors such as high-yield bonds, leveraged loans, private credit, distressed debt, structured credit, emerging markets, real estate, private equity, and credit-themed equities. And GoldenTree was launched in 2000 by Steven Tananbaum and is one of the largest independent global credit asset managers. GoldenTree manages about $56 billion for institutional investors, including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds.
BNP Paribas Securities arranged the CLO as the sole lead. And the arranger distributed the rated notes issued by the CLO, while GLM III invested in the CLO’s equity.
