GoldenTree Loan Management has closed its third European collateralized loan obligation at 402 million euros. Barclays served as structuring lead for the CLO while Citigroup and Morgan Stanley acted as co-leads. Goldman Sachs and Wells Fargo Securities were placement agents.
NEW YORK, Sept. 5, 2019 /PRNewswire/ — GoldenTree Loan Management (“GLM”) and its affiliated investment manager GoldenTree Asset Management (collectively “GoldenTree”), announced the closing of a €402 million collateralized loan obligation (“CLO”) to be managed by GLM. The CLO, GoldenTree Loan Management EUR CLO 3 (“GLM EUR CLO 3”), is the third European CLO to be issued under GoldenTree’s GLM CLO strategy announced in January 2017 whereby GLM raised $600 million in commitments to invest in and manage CLOs that were intended to be compliant with applicable Risk Retention regulations. A US Court of Appeals ruling on February 9, 2018 led to repeal of US risk retention for open market CLOs. GLM CLOs are intended to continue to comply with European Risk Retention regulations.
GLM EUR CLO 3 will initially be backed by a 95% ramped €379 million portfolio of primarily senior secured loans as of closing and will have a four and a half year reinvestment period and a two year non call period. The CLO was arranged by a bank syndicate including Barclays as structuring lead, Citigroup and Morgan Stanley as co-leads, and Goldman Sachs and Wells Fargo Securities as placement agents. The syndicate globally distributed the rated notes, while GLM invested in the CLO’s equity.
GLM EUR CLO 3 issued €248 million of AAA rated senior notes with a coupon of E+1.12%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of E+2.04%. The CLO also issued €8 million AA fixed rate notes with a coupon of 2.45%.
Since its inception in 2000, GoldenTree has issued over $15 billion of CLOs/CBOs, with $8 billion currently outstanding. GoldenTree’s investment team is comprised of 50 individuals covering over 25 industries and having, on average, 17 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages approximately $4 billion of structured products investments across the firm.
GoldenTree is an employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, distressed debt, structured products, emerging markets, private equity and credit-themed equities. GoldenTree was founded in 2000 and is one of the largest independent asset managers focused on global credit. GoldenTree manages approximately $31 billion for institutional investors including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. For more information, please visit www.goldentree.com.