GoldenTree Asset Management Closes Second CLO At $734M

Nov 29 2017 | 7:11pm ET

GoldenTree Asset Management has announced the closing of a $734 million collateralized loan obligation that will be managed by its affiliate Goldentree Loan Management. 

The new CLO, named GoldenTree Loan Management US CLO 2, is the second to be issued under GoldenTree's GLM CLO strategy announced early this year, following April’s $711 million CLO 1. 

CLO 2 will initially be backed by a 97% ramped $700 million portfolio of senior secured loans as of closing, and will have a five year reinvestment period and a two year non-call period, the company said in a statement. It was arranged by a bank syndicate including Wells Fargo as structuring lead, Bank of America Merrill Lynch and Morgan Stanley as co-leads, and GreensLedge as placement agent. 

The syndicate globally distributed the investment grade rated notes issued by the CLO, while GLM invested in the CLO’s equity and lower rated notes, the statement added.

$471 million of AAA rated senior notes were reportedly issued with a coupon of LIBOR+1.15%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of LIBOR+1.65%. 

Since its inception in 2000, GoldenTree has issued more than $11.5 billion of CLOs/CBOs, with over $5.5 billion currently outstanding. An active investor in structured credit since 2007, the company pursues opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, distressed debt, structured products, emerging markets and credit-themed equities. 

GoldenTree currently manages some $3.4 billion of structured products investments across the firm and over $25.5 billion in primarily credit strategies for public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. 

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