GoldenTree closes on first new European risk retention compliant CLO; secondary active

By Cristal Cody

Tupelo, Miss., March 23 – GoldenTree Loan Management announced on Friday that it completed its previously reported €404.75 million CLO offering.

The deal closed on Thursday.

GoldenTree Loan Management EUR CLO 1 DAC priced the €162 million tranche of class A-1A senior secured floating-rate notes at Euribor plus 73 basis points.

The CLO is managed by affiliate GoldenTree Asset Management LP.

The EUR CLO 1 will initially be backed by a 98% ramped €393 million portfolio of senior secured loans as of closing, according to the release.

The CLO was arranged by a bank syndicate including Citigroup Global Markets Ltd. as structuring lead, Barclays and Morgan Stanley & Co. LLC as co-leads, and Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC as placement agents.

The syndicate globally distributed the rated notes and a small amount of equity issued by the CLO, according to the release. GLM invested in nearly all of the CLO’s equity.

GoldenTree said the deal is the “first European CLO to be issued” under its GLM CLO strategy announced in 2017. The company said it raised $600 million in commitments to invest in and manage CLOs that are intended to be compliant with U.S. and European risk retention regulations.

Meanwhile, The U.S. securitized secondary market has been active over the week, according to Trace data.

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