GoldenTree invests in portions of new euro CLO; primary action thins; CLO spreads mixed

By Cristal Cody

Tupelo, Miss., July 13 – CLO primary action remains light so far in July, market sources report.

No supply was seen last week, according to a BofA Securities, Inc. research note released on Monday.

Year to date, about $35 billion of dollar-denominated broadly syndicated CLOs and more than €10 billion of euro-denominated broadly syndicated CLOs have priced.

Meanwhile on Monday, GoldenTree Asset Management LP announced the closing of its previously reported €373.7 million GoldenTree Loan Management EUR CLO 4 DAC transaction.

The CLO was arranged by a bank syndicate including Morgan Stanley & Co. International plc as structuring lead, Barclays as co-lead and Wells Fargo Securities LLC as placement agent.

“The syndicate globally distributed the investment-grade rated notes and a portion of the lower rated notes issued by the CLO,” GoldenTree said in a release. “GLM invested in the CLO's equity and a majority of the lower rated notes.”

The CLO is backed by an 86% ramped €323 million portfolio of primarily senior secured loans as of closing and complies with European risk retention regulations.

GoldenTree said the CLO is the fourth European CLO it’s issued since 2017.

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