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BofA Securities, Others Lead GoldenTree’s $698MM CLO Under GLM Strategy

March 09, 2021, 07:00 AM
Filed Under: Industry News

GoldenTree Loan Management II ("GLM II") and its affiliated investment manager GoldenTree Asset Management (along with other affiliated investment managers "GoldenTree"), announced the closing of a $698 million collateralized loan obligation ("CLO") to be managed by GLM II. With the closing of this CLO, GoldenTree Loan Management US CLO 9 ("GLM US CLO 9"), GoldenTree has issued 14 CLOs totaling over $8 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 Union and United Kingdom Risk Retention regulations.

GLM US CLO 9 will initially be backed by a 100% ramped $700 million portfolio of senior secured loans as of closing and will have a three-year reinvestment period and a one-year non call period. The CLO was arranged by a bank syndicate including BofA Securities as structuring lead, and Morgan Stanley and Wells Fargo Securities as co-leads. 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 US CLO 9 issued $455 million of AAA rated senior notes with a coupon of L+1.07%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.47%.

Since its inception in 2000, GoldenTree has issued over $18 billion of CLOs/CBOs, with over $10.5 billion currently outstanding. GoldenTree's investment team is comprised of over 60 individuals covering over 20 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 $6 billion of structured products investments across the firm.

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