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PennantPark Floating Rate Capital Ltd. Closes New Securitization, Substantially Lowering Borrowing Costs
PFLTPennantPark Floating Rate Capital .(PFLT) GlobeNewswire·2025-02-21 14:15

Core Viewpoint - PennantPark Floating Rate Capital Ltd. has successfully completed a 474.6milliontermdebtsecuritizationtransaction,markingasignificantmilestoneinitsfinancinghistorywiththelowestspreaddebtfinancingachievedtodate[1][3].Group1:SecuritizationDetails−Thesecuritizationtransactionincludesafour−yearreinvestmentperiodandatwelve−yearfinalmaturityintheformofacollateralizedloanobligation(CLO)[1].−Thetotalamountofdebtissuedinthistransactionisstructuredacrossvariousclasses,includingClassA−1L−ALoans(474.6 million term debt securitization transaction, marking a significant milestone in its financing history with the lowest spread debt financing achieved to date [1][3]. Group 1: Securitization Details - The securitization transaction includes a four-year reinvestment period and a twelve-year final maturity in the form of a collateralized loan obligation (CLO) [1]. - The total amount of debt issued in this transaction is structured across various classes, including Class A-1L-A Loans (10 million), A-1L-B Loans (45million),A−1Notes(45 million), A-1 Notes (220.5 million), A-2 Notes (19million),BNotes(19 million), B Notes (28.5 million), C Notes (38million),DNotes(38 million), D Notes (28.5 million), and Subordinated Notes (85.1million)[2].−Theweightedaveragespreadof159basispointson85.1 million) [2]. - The weighted average spread of 159 basis points on 361 million of financing represents a 66-basis point reduction from the previous bank facility [3]. Group 2: Company Growth and Strategy - The company has onboarded several new investors, increasing its investor base to over 75 unique investors across its securitization platform [3]. - With the closing of its eleventh securitization, the company currently manages approximately 3.7billioninCLOassets,indicatingastronggrowthtrajectory[3].−ThecompanyretainstheClassDNotesandSubordinatedNotes,maintainingexposuretotheperformanceofthesecuritizedassets[3].Group3:CompanyOverview−PennantParkFloatingRateCapitalLtd.primarilyinvestsinU.S.middle−marketprivatecompaniesthroughfloatingrateseniorsecuredloans,includingfirstliensecureddebt,secondliensecureddebt,andsubordinateddebt[5].−ThecompanyismanagedbyPennantParkInvestmentAdvisers,LLC,whichhasapproximately3.7 billion in CLO assets, indicating a strong growth trajectory [3]. - The company retains the Class D Notes and Subordinated Notes, maintaining exposure to the performance of the securitized assets [3]. Group 3: Company Overview - PennantPark Floating Rate Capital Ltd. primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first lien secured debt, second lien secured debt, and subordinated debt [5]. - The company is managed by PennantPark Investment Advisers, LLC, which has approximately 9.5 billion of investable capital and offers a range of financing solutions to middle-market borrowers [7].