GoldenTree Announces Closing of $599 Million CLO Under GLM Strategy

NEW YORK, May 13, 2022 /PRNewswire/ — GoldenTree Loan Management II (“GLM II”) and its affiliate investment manager GoldenTree Asset Management LP (as well as other “GoldenTree” affiliate investment managers) have announced the closing of a $599 million secured loan obligation (“CLO”) to be serviced by GLM II. With the closing of this CLO, GoldenTree Loan Management US CLO 12 (“GLM US CLO 12”), GoldenTree has issued 18 CLOs totaling over $10.5 billion as part of its GLM CLO strategy. Since its creation in January 2017, the GLM strategy had to comply with applicable regulations on risk retention. While a decision of the United States Court of Appeals on February 9, 2018 led to the repeal of US risk retention rules for open market CLOs, GLM CLOs are expected to continue to comply with EU and UK risk retention regulations.

GLM US CLO 12 will initially be supported by an 88% ramp $530 million senior secured loan portfolio from closing and will have a five-year reinvestment period and a two-year non-call period. The CLO was organized by a banking syndicate comprising Wells Fargo Securities as lead arranger, and BofA Securities and Morgan Stanley as co-lead arrangers. The syndicate globally distributed the investment-grade and BB-rated bonds issued by the CLO, while GLM II invested in the shares of the CLO as well as the B-rated bonds.

GLM US CLO 12 issued $325 million AAA-rated senior bonds with a weighted average coupon of S+1.44%, as well as lower-rated senior, mezzanine and junior bonds, for an overall weighted average coupon of S+2.09%.

Since its creation in 2000, GoldenTree has issued more than $20.5 billion of CLO/CBO, with more than $13 billion currently pending. GoldenTree’s investment team is made up of around 70 people covering around 20 industries and having, on average, 15 years of experience. Additionally, GoldenTree has been an active investor in structured credit since 2007 and currently manages approximately $6 billion investments in structured products throughout the company.

About GoldenTree

GoldenTree is an employee-owned global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured products, emerging markets, private equity and credit-themed equities. GoldenTree was founded in 2000 by Steve Tananbaum and is one of the largest independent credit-focused asset managers. GoldenTree manages close $47 billion for institutional investors, including major public and corporate pension plans, endowments, foundations, insurance companies and sovereign wealth funds. GoldenTree has over 250 employees, with offices in New YorkWest Palm Beach, Charlotte, London, Dublin, Singapore, sydney and Tokyo. For more information, please visit www.goldentree.com.

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SOURCE GoldenTree Loan Management

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