GLM III, LP and its affiliated investment manager GoldenTree Asset Management LP announced the closing of a $449 million collateralized loan obligation (CLO) to be managed by GLM III. And with the closing of this CLO, GoldenTree Loan Management US CLO 19, GoldenTree has issued 25 CLOs totaling over $14 billion under its GLM CLO strategy.
Since being founded in January 2017, the GLM strategy was intended to be compliant with applicable Risk Retention regulations. And 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 19 will initially be backed by a 96% ramped $434 million portfolio of primarily senior secured loans as of closing and will have a five-year reinvestment period and a two-year non call period. And the CLO was arranged by a bank syndicate including Wells Fargo Securities as structuring lead, and BofA Securities and Morgan Stanley as co-leads.
The syndicate globally distributed the investment grade rated notes issued by the CLO, while GLM III invested in the CLO’s equity as well as B- rated notes.
Since launching in 2000, GoldenTree has issued over $23 billion of CLOs/CBOs, with over $15 billion currently outstanding. And GoldenTree’s investment team is comprised of over 90 individuals covering over 30 industries and having on average 15 years of experience. Plus, GoldenTree has been an active investor in structured credit since 2007 and currently manages over $7 billion of structured products investments across the firm.
