GoldenTree's Major CLO Closing: €403 Million Success Story

GoldenTree Successfully Closes €403 Million CLO

In an exciting development, GoldenTree Asset Management LP has officially closed on a substantial €403 million collateralized loan obligation, known as GLM EUR CLO 8. This remarkable achievement not only highlights GoldenTree's expertise in managing CLOs but also reinforces its commitment to structured credit investment strategies.

Growth of the GLM Strategy

With this latest closing, GoldenTree has successfully issued a total of 31 CLOs, accumulating nearly $17 billion under its GLM CLO strategy since its inception in early 2017. This robust strategy is specifically designed to comply with Risk Retention regulations in both the European Union and the United Kingdom, ensuring adherence despite shifting regulatory landscapes.

Key Features of GLM EUR CLO 8

The newly launched GLM EUR CLO 8 is set to be backed by a 95% ramped portfolio totaling €382 million, primarily consisting of senior secured loans. It features an impressive four-and-a-half-year reinvestment period, complemented by a one-and-a-half-year non-call period. The arrangement was facilitated by a prestigious bank syndicate, including Barclays as the lead structurer, along with Morgan Stanley and Wells Fargo contributing their expertise as co-lead and placement agents, respectively.

This CLO issued €248 million of AAA-rated senior notes with an attractive coupon of E+1.28%. Together with a range of lower-rated senior, mezzanine, and junior notes, the structure achieves an overall weighted average coupon of E+2.01%. This demonstrates GoldenTree's strategic approach to attracting diverse investment profiles.

GoldenTree’s Commitment to Structured Credit

Since its foundation in 2000, GoldenTree has established itself as a leader in the credit market, having issued more than $26 billion in CLOs and CBOs, with an impressive $14 billion currently outstanding. The firm's investment team, consisting of nearly 100 skilled professionals, brings an average of 16 years of experience across over 30 industries. This wealth of knowledge positions GoldenTree as a formidable force in structured credit, having actively invested in this domain since 2007.

Currently, GoldenTree manages an impressive portfolio of over $7 billion in structured credit investments. This depth of experience empowers the firm to navigate the complexities of the credit markets effectively, ensuring they provide optimal investment solutions for their clients.

About GoldenTree

GoldenTree is an employee-owned global asset management firm renowned for its wide-ranging expertise in the credit universe, covering sectors that include high-yield bonds, leveraged loans, private credit, distressed debt, structured credit, emerging markets, real estate, private equity, and credit-themed equities. Founded in 2000 by Steven Tananbaum, GoldenTree stands out as one of the largest independent global credit asset managers.

Currently, GoldenTree manages nearly $57 billion on behalf of institutional investors like public and corporate pensions, endowments, foundations, insurance companies, and sovereign wealth funds. With over 310 talented employees located across offices in major global cities including New York, London, and Tokyo, GoldenTree is well-positioned to capitalize on promising investment opportunities.

Frequently Asked Questions

What is the significance of the €403 million CLO issued by GoldenTree?

This CLO represents a significant milestone for GoldenTree, reinforcing their position within the asset management industry and illustrating their successful strategy in structured credit.

How does GoldenTree’s CLOs align with regulatory frameworks?

GoldenTree’s CLOs, including GLM EUR CLO 8, are designed to comply with the Risk Retention regulations in the EU and the UK, maintaining adherence to evolving mandates even as U.S. regulations change.

What types of loans does GLM EUR CLO 8 primarily include?

The GLM EUR CLO 8 is predominantly backed by senior secured loans, ensuring a strong foundation for investment and risk management.

Can you describe GoldenTree's team and expertise?

GoldenTree’s investment team comprises nearly 100 professionals with an average of 16 years of experience each, covering a wide range of over 30 industries, making them highly knowledgeable in various sectors.

What is GoldenTree’s track record in CLO issuance?

Since its inception, GoldenTree has issued more than $26 billion in CLOs, showcasing their extensive experience and success in the structured credit market.

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