GoldenTree has closed its latest collateralized loan obligation at $503 million. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and BofA Securities and Wells Fargo Securities as co-leads.
NEW YORK, May 11, 2020 /PRNewswire/ — GoldenTree Loan Management (“GLM”) and its affiliated investment manager GoldenTree Asset Management (collectively “GoldenTree”), announced the closing of a $503 million collateralized loan obligation (“CLO”) to be managed by GLM. With the closing of this CLO, GoldenTree Loan Management US CLO 7 (“GLM US CLO 7”), GoldenTree has issued 11 CLOs totaling $6.5 billion under its GLM CLO strategy. Since its inception in January 2017, the GLM strategy was intended to be compliant with applicable Risk Retention regulations. While a US Court of Appeals ruling on February 9, 2018 led to repeal of risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European Risk Retention regulations.
GLM US CLO 7 will initially be backed by a 93% ramped $464 million portfolio of senior secured loans as of closing and will have a one-year reinvestment period and a one-year non call period. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and BofA Securities and Wells Fargo Securities as co-leads. The syndicate globally distributed the investment grade rated notes other than ‘BBB-‘ rated notes. GLM invested in the CLO’s equity as well as ‘BBB-‘ and lower rated notes.
GLM US CLO 7 issued $298 million of AAA rated senior notes with a coupon of L+1.90%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+2.33%.
Since its inception in 2000, GoldenTree has issued over $16 billion of CLOs/CBOs, with over $9 billion currently outstanding. GoldenTree’s investment team is comprised of more than 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 over $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 credit. GoldenTree manages over $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.