GoldenTree Asset Management Closes On $711M CLO

Apr 13 2017 | 11:35pm ET

GoldenTree Asset Management has announced the closing of a $711 million collateralized loan obligation to be managed by its affiliate GoldenTree Loan Management. 

The CLO, named GoldenTree Loan Management U.S. CLO 1, is the first to be issued under GoldenTree's previously announced new CLO strategy. Under the new strategy, GoldenTree Loan Management raised $600 million in commitments to invest in and manage CLOs that are intended to be compliant with U.S. and European Risk Retention regulations.

GLM U.S. CLO 1 will initially be backed by a 96% ramped $670 million portfolio of senior secured loans, and will have a four-year reinvestment period and a two year non-call period, the company said. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, Bank of America Merrill Lynch and Wells Fargo as co-leads, and GreensLedge as placement agent. The syndicate globally distributed the investment grade rated notes issued by the CLO, while GoldenTree Loan Managememt invested in the CLO’s equity and lower rated notes.

GLM US CLO 1 issued $429 million of AAA rated senior notes with a coupon of L+1.22%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of L+1.74%. The CLO also issued $18 million AA rated fixed rate notes with a coupon of 3.79%, GoldenTree said.

Since its inception in 2000, GoldenTree has issued more than $11 billion of CLOs, with approximately $5 billion currently outstanding. An active investor in structured credit since 2007, the company pursues opportunities in high yield bonds, leveraged loans, distressed debt, structured products, emerging markets and credit-themed equities.

GoldenTree currently manages more than $3 billion of structured products investments across the firm and over $25 billion in primarily credit strategies for leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. 


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