GoldenTree Closes $500M CLO Under GLM Strategy
GLM III, LP and affiliated investment manager GoldenTree Asset Management LP have closed GoldenTree Loan Management US CLO 26, a $500 million collateralized loan obligation (CLO) to be managed by GLM III. With this closing, GoldenTree has now issued 34 CLOs totaling nearly $18 billion under its GLM CLO strategy.
GLM US CLO 26 is initially backed by a 95% ramped $476 million portfolio of primarily senior secured loans. The deal features a five-year reinvestment period and a two-year non-call period. The CLO was arranged by a bank syndicate led by BofA Securities as structuring lead, with Morgan Stanley and Wells Fargo Securities serving as co-leads. The syndicate distributed the rated notes, while GLM III invested in the equity tranche.
The transaction issued $308 million of senior AAA-rated notes with a coupon of S+1.28%, alongside junior AAA-rated notes and lower-rated senior, mezzanine, and junior tranches, for an overall weighted average coupon of S+1.71%.
Since its founding in 2000, GoldenTree has issued more than $27 billion in CLOs/CBOs, with over $14 billion currently outstanding. The firm has also been a significant investor in structured credit since 2007, currently managing nearly $8 billion in structured credit investments across its platform.