GLM III, LP (GLM III) and its affiliated investment manager GoldenTree Asset Management LP (along with other affiliated investment managers GoldenTree), announced the closing of a $500 million collateralized loan obligation (CLO) to be managed by GLM III.
Through the closing of this CLO, GoldenTree Loan Management US CLO 23 (GLM US CLO 23), GoldenTree has issued 30 CLOs totaling over $16 billion under its GLM CLO strategy. And since its founding in January 2017, the GLM strategy was intended to comply with applicable Risk Retention regulations. While a US Court of Appeals ruling on February 9, 2018 repealed US risk retention rules for open market CLOs, GLM CLOs are intended to continue to comply with EU and UK Risk Retention regulations.
GLM US CLO 23 will initially be backed by a 96% ramped $478 million portfolio of primarily senior secured loans as of closing and will have a 5-year reinvestment period and a two-year non call period. The syndicate globally distributed the investment grade and BB-rated notes issued by the CLO, while GLM III invested in the CLO’s equity as well as B-rated notes.
GLM US CLO 23 issued $320 million of AAA-rated senior notes with a coupon of S+1.27%, along with lower-rated senior, mezzanine, and junior notes, for an overall weighted average coupon of S+1.68%.
Since its founding in 2000, GoldenTree has issued over $26 billion of CLOs/CBOs, with over $14 billion currently outstanding. And GoldenTree’s investment team comprises nearly 100 individuals covering over 30 industries and having 15 years of experience on average. In addition, 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 that specializes in opportunities across the credit universe in sectors like high-yield bonds, leveraged loans, private credit, distressed debt, structured credit, emerging markets, real estate, private equity, and credit-themed equities. And GoldenTree was founded in 2000 by Steven Tananbaum and is one of the largest independent global credit asset managers. GoldenTree manages $56+ billion for institutional investors, including leading public and corporate pensions, endowments, foundations, insurance companies, and sovereign wealth funds.
The CLO was arranged by a bank syndicate, including Morgan Stanley as structuring lead and BofA Securities and Wells Fargo Securities as co-leads.
