GLM III, LP (“GLM III”) and its affiliated investment manager GoldenTree Asset Management LP (along with other affiliated investment managers “GoldenTree”), announced the closing of a $753 million collateralized loan obligation (“CLO”) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management US CLO 27 (“GLM US CLO 27”), GoldenTree has issued 36 CLOs totaling nearly $20 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 on February 9, 2018 held that the U.S. risk retention rules do not apply to collateral managers of open market CLOs, GLM CLOs have intended to comply with European Union and/ or United Kingdom Risk Retention regulations.

GLM US CLO 27 will initially be backed by a 98% ramped $736 million portfolio of primarily senior secured loans as of closing and will have a five-year reinvestment period and a two-year non call period. The CLO was arranged by a bank syndicate including Wells Fargo Securities as structuring lead, and BofA Securities and Morgan Stanley as co-leads. The syndicate globally distributed the investment grade and BB rated notes issued by the CLO, while GLM III invested in the CLO’s equity as well as B rated notes.

GLM US CLO 27 issued $480 million of senior AAA rated notes with a coupon of S+1.19%, along with junior AAA rated notes and other lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+1.61%.

Since its inception in 2000, GoldenTree has issued over $29 billion of CLOs/CBOs, with approximately $15 billion currently outstanding. GoldenTree’s investment team is comprised of approximately 100 individuals covering over 30 industries and having on average 16 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over $8 billion of structured credit investments across the firm.