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GoldenTree closes 3rd European collateralized loan obligation

GoldenTree Loan Management LP and its affiliated investment manager, GoldenTree Asset Management LP, closed a €402 million collateralized loan obligation.

It is the third European CLO to be issued under GoldenTree's GLM CLO strategy announced in January 2017, where GoldenTree Loan Management raised $600 million in commitments to invest in and manage CLOs intended to be compliant with applicable risk retention regulations.

Dubbed GLM EUR CLO 3, the debt obligation will be backed initially by a 95% ramped €379 million portfolio of primarily senior secured loans as of closing and will have a reinvestment period of a four and a half years and a two-year noncall period.

The CLO was arranged by a bank syndicate including Barclays as structuring lead, Citigroup and Morgan Stanley as co-leads, and Goldman Sachs and Wells Fargo Securities as placement agents. The syndicate globally distributed the rated notes, while GoldenTree Loan Management invested in the CLO's equity.

GLM EUR CLO 3 issued €248 million of AAA-rated senior notes with a coupon of E+1.12%, along with lower-rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of E+2.04%. The CLO also issued €8 million AA fixed-rate notes with a coupon of 2.45%.