Golden Tree Closes $487M CLO in GLM Strategy
GoldenTree Loan Management II, an affiliate of $48bn GoldenTree Asset Management, a credit-focused investment firm, closed its latest collateralized loan obligation (CLO) with $487mn.
The firm has issued 21 CLOs totaling over $12bn in capital since 2017 with its latest offering.
The new CLO, GLM US CLO 16, will initially be backed by a 95% ramped $474mn portfolio of senior secured loans as of closing and will have a three-year reinvestment period and a one-year non-call period, according to the firm.
GLM US CLO 16 issued $325 million of AAA rated senior notes with a weighted average coupon of S+2.33%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+2.96%.
Since its inception in 2000, GoldenTree has issued over $21bn of CLOs/CBO – Collateralized Bond Obligations, with over $14bn currently outstanding. The firm has been active in structured credit since 2007 and currently manages over $5bn of structured products investments.
GoldenTree remained very active in the CLO market last year; its two previous offerings totaled $390mn and $487mn, respectively.
The CLO was arranged by a bank syndicate including Wells Fargo Securities, Bank of America Securities and Morgan Stanley.