GoldenTree Loan Management II, Affiliated Investment Managers Close $698M CLO

GoldenTree Loan Management II and affiliated investment manager GoldenTree Asset Management completed a $698 million collateralized loan obligation, to be managed by the former.

With the closing of the GoldenTree Loan Management US CLO 9, the companies and other affiliated investment managers have issued 14 CLOs, amounting to over $8 billion under their GLM CLO strategy.

The CLO will initially be backed by a 100% ramped $700 million portfolio of senior secured loans as of closing with a three-year reinvestment period and one-year non-call period.

The CLO was arranged by a bank syndicate that includes BofA Securities as structuring lead, and Morgan Stanley and Wells Fargo Securities as co-leads. The syndicate distributed the CLO-issued investment-grade-rated notes globally. GoldenTree Loan Management II, on the other hand, invested in the CLO's equity and lower-rated notes.

The CLO issued $455 million of AAA rated senior notes with a coupon of L+1.07%, as well as lower-rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.47%.