GoldenTree Asset Management preps $409.7 million U.S. CLO; second-quarter volume picks up

By Cristal Cody

Eureka Springs, Ark., June 21 – GoldenTree Asset Management LP is expected to return to the primary market to price a U.S. dollar CLO offering following its euro-denominated deal earlier in June.

GoldenTree priced the €407.4 million Laurelin 2016-1 DAC transaction via Credit Suisse Securities (Europe) Ltd. on June 13.

CLO issuers remain active in June so far with nearly $4 billion of U.S. dollar-denominated deals priced and €1.64 billion of European CLO volume during the month.

“CLO issuance also slowed in Q1 2016, but has since picked up,” Moody’s Investors Service said in its June CLO report released on Tuesday. “In Q1, we rated 19 collateralized loan obligations with total par of $8.6 billion, down by about 50% from 36 CLOs with $18 billion of par in Q1 2015. So far in Q2, we have assigned definitive ratings to 16 CLOs and provisional ratings to another 101, and in addition, are analyzing another 30 proposed CLOs.”

GoldenTree Asset Management plans to price $409.7 million of notes due April 15, 2027 in the GoldenTree Loan Opportunities XII, Ltd. deal, according to a market source.

GreensLedge Capital Markets LLC is the placement agent.

The deal, backed primarily by broadly syndicated first-lien senior secured corporate loans, is expected to close on July 28.

GoldenTree Asset Management has priced one euro-denominated CLO offering year to date.

The New York City-based private investment firm brought two U.S. CLO deals in 2015.

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