GLM III, LP and its affiliated investment manager GoldenTree Asset Management LP (along with other affiliated investment managers “GoldenTree”), announced the closing of a $500 million collateralized loan obligation (“CLO”) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management US CLO 23 (“GLM US CLO 23”), GoldenTree has issued 30 CLOs totaling over $16 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 the repeal of US risk retention rules for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom Risk Retention regulations.

GLM US CLO 23 will initially be backed by a 96% ramped $478 million portfolio of primarily senior secured loans as of closing and will have a five-year reinvestment period and a two-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 and BB rated notes issued by the CLO, while GLM III invested in the CLO’s equity as well as B rated notes.

GLM US CLO 23 issued $320 million of AAA rated senior notes with a coupon of S+1.27%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+1.68%.

Since its inception in 2000, GoldenTree has issued over $26 billion of CLOs/CBOs, with over $14 billion currently outstanding. GoldenTree’s investment team is comprised of nearly 100 individuals covering over 30 industries and having on average 15 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over $7 billion of structured credit investments across the firm.