GoldenTree has closed its fifth European collateralized loan obligation at 402 million euros. GoldenTree Loan Management II will manage the CLO. The CLO was arranged by a bank syndicate including Barclays as structuring lead, Morgan Stanley as co-lead and Wells Fargo Securities as placement agent.
NEW YORK, April 15, 2021 /PRNewswire/ — GoldenTree Loan Management II (“GLM II”) 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 II. The CLO, GoldenTree Loan Management EUR CLO 5 (“GLM EUR CLO 5”), is the fifth European CLO and fifteenth overall CLO to be issued under GoldenTree’s GLM CLO strategy totaling over $8.5 billion. 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 Union and United Kingdom Risk Retention regulations.
GLM EUR CLO 5 will initially be backed by a 92% ramped €368 million portfolio of primarily senior secured loans as of closing and will have a four and a quarter year reinvestment period and a one and a quarter year non call period. The CLO was arranged by a bank syndicate including Barclays as structuring lead, Morgan Stanley as co-lead, and Wells Fargo Securities as placement agent. The syndicate globally distributed the investment grade rated notes issued by the CLO, while GLM II invested in the CLO’s equity and lower rated notes.
GLM EUR CLO 5 issued €252 million of AAA rated senior notes with a coupon of E+0.82%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of E+1.62%.
Since its inception in 2000, GoldenTree has issued over $18 billion of CLOs/CBOs, with over $11 billion currently outstanding. GoldenTree’s investment team is comprised of approximately 60 individuals covering over 20 industries and having, on average, 15 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over $6 billion of structured products investments across the
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 by Steve Tananbaum and is one of the largest independent asset managers focused on credit. GoldenTree manages nearly $42 billion for institutional investors including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. GoldenTree has over 240 employees, with offices in New York, London, Singapore, Sydney, Tokyo, Dublin and West Palm Beach. For more information, please visit www.goldentree.com.