GoldenTree raises over $500m for CLO

GoldenTree Loan Management (GLM) announced the closing of a $503 million collateralized loan obligation to be managed by the GoldenTree Asset Management affiliate. With the closing of the GLM US CLO 7, the firm has issued 11 CLOs total $6.5 Billion under its GLM CLO strategy that was established in January 2017. GLM US CLO 7 will initially be backed by a 93% ramped $464 million portfolio of senior secured loans as of closing and will have a one-year reinvestment period and a one-year non call period. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and BofA Securities and Wells Fargo Securities as co-leads. The syndicate globally distributed the investment grade rated notes other than 'BBB-' rated notes. GLM invested in the CLO's equity as well as 'BBB-' and lower rated notes. GLM US CLO 7 issued $298 million of AAA rated senior notes with a coupon of L+1.90%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+2.33%. According to a press release the GLM strategy was intended to be compliant with applicable risk retention regulations. Officials said that a U.S. Court of Appeals ruling in February 2018 led to the repeal of risk retention for open market CLOs. GLM CLOs, however, are intended to comply with European Risk Retention regulations. Overall, the New York-based firm manages $31 billion 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. Since 2000, GoldenTree has issued more than $16 billion of CLOs/CBs, with more than $9 billion currently outstanding. GoldenTree also has been an active investor in structured credit since 2007 and currently manages over $4 billion of structured products investments across the firm.

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