PennantPark Floating Rate Capital .(PFLT)

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PennantPark Floating Rate Capital .(PFLT) - 2025 Q3 - Quarterly Results
2025-08-11 20:05
[Financial Results and Highlights](index=1&type=section&id=Financial%20Results%20and%20Highlights) [Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) PFLT reported a Q3 2025 NAV per share of **$10.96**, a 1.0% decrease, with net investment income at **$0.25 per share** and a **$2.4 billion** investment portfolio Q3 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | **Assets and Liabilities** | | | Investment Portfolio | $2,403.5 million | | Net Assets | $1,087.5 million | | Net Asset Value (NAV) per Share | $10.96 | | Quarterly Change in NAV per Share | (1.0)% | | Regulatory Debt to Equity | 1.29x | | **Operating Results** | | | Net Investment Income per Share | $0.25 | | Core Net Investment Income per Share | $0.27 | | Distributions Declared per Share | $0.31 | | **Portfolio Activity** | | | Purchases of Investments | $208.1 million | | Sales and Repayments | $145.8 million | - Core Net Investment Income (Core NII) is a non-GAAP measure that excludes **$2.9 million** of credit facility amendment costs and a **$1.2 million** incentive fee expense offset for the quarter[2](index=2&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) [Overall Portfolio Review](index=2&type=section&id=Overall%20Portfolio%20Review) The portfolio grew to **$2.4 billion** as of June 30, 2025, with 99% first lien secured debt and a 10.4% weighted average yield - Management anticipates continued net investment income growth driven by recent capital raises and the formation of a new joint venture with Hamilton Lane to invest in middle-market senior secured loans[5](index=5&type=chunk) Portfolio Composition Comparison | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Portfolio | $2,403.5 M | $1,983.5 M | | First Lien Secured Debt | $2,150.6 M | $1,746.7 M | | Number of Companies | 155 | 158 | | Avg. Investment Size | $15.5 M | $12.6 M | | Weighted Avg. Yield on Debt | 10.4% | 11.5% | | Non-Accruals (at fair value) | 0.5% | 0.2% | [Investment Activity Details](index=2&type=section&id=Investment%20Activity%20Details) Q3 2025 investments totaled **$208.1 million**, a decrease from prior year, with nine-month investments reaching **$1.1 billion** Investment Activity (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Investments | $208.1 M | $320.9 M | | Weighted Avg. Yield on New Debt | 10.1% | 11.5% | | Sales and Repayments | $145.8 M | $137.6 M | Investment Activity (Nine Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Investments | $1,108.3 M | $961.8 M | | Weighted Avg. Yield on New Debt | 10.2% | 11.7% | | Sales and Repayments | $669.5 M | $386.3 M | [PennantPark Senior Secured Loan Fund I LLC (PSSL)](index=2&type=section&id=PennantPark%20Senior%20Secured%20Loan%20Fund%20I%20LLC%20(PSSL)) PSSL's portfolio grew to **$1.06 billion** as of June 30, 2025, with a 10.4% weighted average yield on debt investments PSSL Portfolio Overview | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Portfolio | $1,055.6 M | $913.3 M | | Number of Companies | 117 | 109 | | Avg. Investment Size | $9.0 M | $8.4 M | | Weighted Avg. Yield on Debt | 10.4% | 11.4% | - For the three months ended June 30, 2025, PSSL invested **$52.3 million** and had sales/repayments of **$53.8 million**[10](index=10&type=chunk)[11](index=11&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) [Investment Income](index=3&type=section&id=Investment%20Income) Q3 2025 total investment income increased to **$63.5 million**, driven by the growing size of the debt portfolio Investment Income Comparison (in millions) | Period | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $63.5 | $48.5 | Increase in size of debt portfolio | | Nine Months Ended June 30 | $192.4 | $130.8 | Increase in size of debt portfolio | [Expenses](index=3&type=section&id=Expenses) Q3 2025 expenses rose to **$38.9 million**, primarily due to higher interest, management fees, and credit facility amendment costs Expenses Comparison (in millions) | Period | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $38.9 | $27.3 | Higher interest expense, management fees, and amendment costs | | Nine Months Ended June 30 | $112.8 | $71.1 | Higher interest expense and management fees | [Net Investment Income (NII)](index=3&type=section&id=Net%20Investment%20Income%20(NII)) Q3 2025 net investment income was **$24.6 million** or **$0.25 per share**, with per-share NII decreasing due to higher share count Net Investment Income Comparison | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | NII (in millions) | $24.6 | $21.2 | | NII per Share | $0.25 | $0.31 | | **Nine Months Ended June 30** | | | | NII (in millions) | $79.6 | $59.7 | | NII per Share | $0.88 | $0.95 | [Realized and Unrealized Gains/Losses](index=3&type=section&id=Realized%20and%20Unrealized%20Gains%2FLosses) Q3 2025 saw a net realized loss of **$14.8 million** and a net unrealized appreciation of **$9.9 million** on investments - For the three months ended June 30, 2025, the company experienced net realized losses of **$(14.8) million**, a significant change from the **$(0.4) million** loss in the same period of 2024[17](index=17&type=chunk) - The net change in unrealized appreciation on investments was **$9.9 million** for the quarter, compared to a depreciation of **$(4.0) million** in Q3 2024, driven by portfolio performance and capital market conditions[19](index=19&type=chunk) [Net Change in Net Assets](index=4&type=section&id=Net%20Change%20in%20Net%20Assets) Q3 2025 net increase in net assets from operations was **$19.3 million**, or **$0.19 per share**, influenced by portfolio and market conditions Net Increase in Net Assets from Operations | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | Net Increase (in millions) | $19.3 | $16.9 | | Per Share | $0.19 | $0.25 | | **Nine Months Ended June 30** | | | | Net Increase (in millions) | $48.9 | $70.5 | | Per Share | $0.54 | $1.12 | [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) [Capital Structure and Debt Facilities](index=4&type=section&id=Capital%20Structure%20and%20Debt%20Facilities) The company amended its credit facility in April 2025, reducing pricing and extending maturity, and PSSL closed a new **$301 million** CLO - The annualized weighted average cost of debt decreased to **7.0%** for the nine months ended June 30, 2025, from **7.3%** in the prior year period[23](index=23&type=chunk) - In April 2025, the credit facility was amended, reducing pricing to SOFR + **200 bps** and extending the maturity to August 2030[24](index=24&type=chunk) - PSSL closed a new **$301 million** CLO in April 2025 and refinanced its 2035 Asset-Backed Debt in May 2025, extending maturities to 2037[25](index=25&type=chunk)[26](index=26&type=chunk) [Cash Flow and Equity Issuances](index=5&type=section&id=Cash%20Flow%20and%20Equity%20Issuances) As of June 30, 2025, the company held **$102.7 million** in cash, with **$244.8 million** raised through its ATM program - The company held cash and cash equivalents of **$102.7 million** as of June 30, 2025[27](index=27&type=chunk) ATM Program Issuances (Nine Months Ended June 30) | Period | Shares Issued | Avg. Price | Net Proceeds | | :--- | :--- | :--- | :--- | | 2025 | 21,638,000 | $11.34 | $244.8 M | | 2024 | 13,263,436 | $11.39 | $150.6 M | - For the nine months ended June 30, 2025, cash used in operations was **$386.1 million**, while cash provided by financing was **$376.7 million**[29](index=29&type=chunk) [Shareholder Distributions and Recent Developments](index=5&type=section&id=Shareholder%20Distributions%20and%20Recent%20Developments) [Distributions](index=5&type=section&id=Distributions) The company declared distributions of **$0.3075 per share** for Q3 2025, totaling **$83.4 million** for the nine-month period Distributions Declared | Period | Per Share | Total (in millions) | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $0.3075 | $30.5 | | **Nine Months Ended June 30, 2025** | $0.9225 | $83.4 | [Recent Developments](index=5&type=section&id=Recent%20Developments) A new joint venture, PSSL II, was formed with Hamilton Lane in August 2025, targeting an initial **$500 million** portfolio - A new joint venture, PSSL II, was formed in August 2025 with Hamilton Lane (HL) to invest in middle-market loans[32](index=32&type=chunk) - PFLT and HL have committed a combined **$200 million** (**$150 million** from PFLT, **$50 million** from HL) and intend to add a **$300 million** financing facility, targeting an initial portfolio size of **$500 million**[33](index=33&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets reached **$2.52 billion**, with net assets growing to **$1.09 billion**, though NAV per share decreased to **$10.96** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investments, at fair value | $2,403,515 | $1,983,504 | | Total Assets | $2,521,602 | $2,108,845 | | Total Liabilities | $1,434,089 | $1,231,551 | | Total Net Assets | $1,087,513 | $877,294 | | Net Asset Value per Share | $10.96 | $11.31 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2025 total investment income was **$63.5 million**, resulting in net investment income of **$24.6 million** and a net increase in net assets of **$19.3 million** Income Statement Summary (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $63,502 | $48,505 | | Total Expenses | $38,877 | $27,295 | | Net Investment Income | $24,625 | $21,210 | | Net Realized/Unrealized Loss | $(5,327) | $(4,290) | | **Net Increase in Net Assets** | **$19,298** | **$16,920** | Per Share Data (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Investment Income per Share | $0.25 | $0.31 | | Net Increase in Net Assets per Share | $0.19 | $0.25 |
PennantPark Floating Rate Capital Ltd. Announces New Investment Venture with Hamilton Lane
Globenewswire· 2025-08-11 20:05
Core Viewpoint - PennantPark Floating Rate Capital Ltd. has formed a joint venture, PennantPark Senior Secured Loan Fund II, LLC, with Hamilton Lane to invest primarily in middle market loans, enhancing its position as a direct lender in this sector [1][3]. Company Overview - PennantPark Floating Rate Capital Ltd. is a business development company that primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first lien, second lien, and subordinated debt [4]. - The company is managed by PennantPark Investment Advisers, LLC, which has approximately $10 billion of investable capital [5]. Joint Venture Details - The joint venture, PSSL II, will have a combined commitment of $200 million, with PennantPark contributing $150 million and Hamilton Lane contributing $50 million [2]. - PSSL II plans to establish a financing facility of $300 million, allowing the portfolio to grow to an initial size of $500 million [2]. - Investments in PSSL II's portfolio are expected to commence in late September or early October [2]. Strategic Importance - The joint venture is seen as a strategic move to broaden the impact of PennantPark as a core middle market direct lender, aiming to provide senior loan solutions to middle market sponsors and borrowers [3]. - The CEO of PennantPark anticipates that growing PSSL II will lead to higher returns on equity and net investment income per share [3]. Hamilton Lane Overview - Hamilton Lane is a leading private markets investment firm with approximately $986 billion in assets under management, specializing in providing access to a wide range of private market strategies [6].
PennantPark Floating Rate Capital Ltd. Announces Financial Results for the Third Quarter Ended June 30, 2025
Globenewswire· 2025-08-11 20:05
Core Viewpoint - PennantPark Floating Rate Capital Ltd. reported its financial results for the third fiscal quarter ended June 30, 2025, highlighting growth in net investment income and portfolio activity despite a slight decline in net asset value per share [1][2]. Financial Results - The investment portfolio totaled $2,403.5 million, with net assets at $1,087.5 million and a net asset value per share of $10.96, reflecting a quarterly change of -1.0% [2]. - Net investment income for the quarter was $24.6 million, or $0.25 per share, compared to $21.2 million, or $0.31 per share, for the same period in 2024 [17]. - Total investment income for the quarter was $63.5 million, up from $48.5 million in the previous year, primarily due to an increase in the size of the debt portfolio [15]. Portfolio Activity - The company invested $208.1 million in new and existing portfolio companies during the quarter, with a weighted average yield on debt investments of 10.1% [8]. - As of June 30, 2025, the portfolio consisted of 155 companies with an average investment size of $15.5 million and a weighted average yield on debt investments of 10.4% [6]. - The company announced the formation of a new joint venture, PSSL II, with Hamilton Lane, aimed at investing in middle-market loans [32][33]. Debt and Financing - The company amended its credit facility in April 2025, reducing pricing and extending the reinvestment period and maturity date [24]. - As of June 30, 2025, the company had $419.1 million of unused borrowing capacity under the credit facility [23]. - The annualized weighted average cost of debt was 7.0% for the nine months ended June 30, 2025, compared to 7.3% for the same period in 2024 [23]. Distributions - Distributions declared per share for the quarter were $0.31, totaling $30.5 million, compared to $21.0 million for the same period in 2024 [31].
PennantPark Floating Rate Capital Ltd. Schedules Earnings Release of Third Fiscal Quarter 2025 Results
Globenewswire· 2025-07-03 20:05
Core Points - PennantPark Floating Rate Capital Ltd. will report its financial results for the third fiscal quarter ended June 30, 2025, on August 11, 2025, after market close [1] - A conference call to discuss the financial results will be held on August 12, 2025, at 9:00 a.m. Eastern Time, with access details provided for participants [2] Company Overview - PennantPark Floating Rate Capital Ltd. is a business development company that 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 [3] - The company may also engage in equity investments occasionally [3] - The company is managed by PennantPark Investment Advisers, LLC, which oversees approximately $10 billion of investable capital [4] - PennantPark Investment Advisers, LLC has been operational since 2007, providing a range of financing solutions to middle-market borrowers [4]
PennantPark Floating Rate Capital .(PFLT) - 2024 Q4 - Earnings Call Presentation
2025-06-25 14:19
Company Overview - PennantPark is an independent private credit platform investing since 2007, focused on the core middle market[2] - The platform has deployed over $21 billion of capital across 745 investments[2] - As of September 30, 2024, PennantPark has $83 billion of AUM[2] Investment Strategy & Portfolio - PennantPark targets profitable, growing companies with $10 million to $50 million of EBITDA[7] - The company actively covers 770+ middle market private equity sponsors in the U S [9] - PennantPark's first lien loans have a cumulative default rate of 3 89% based on capital invested, with a recovery rate of 73 5% (principal only) and 91 6% (all proceeds)[14] - Since 2018, over 75% of PennantPark's deals have been with repeat private equity sponsors[13] Market Positioning - The U S middle market generates $10 trillion of annual revenue, representing 1/3 of the U S economy[23] - Core middle market first lien new issue pricing is SOFR + 5 00% to 6 50%, while second lien is SOFR + 7 50% to 10 00%[20] PFLT Performance & Structure - PFLT's market value of investments is $2 0 billion as of September 30, 2024, primarily in first lien senior secured loans (88%)[29] - PFLT reported $18 0 million of Net Investment Income during the fiscal fourth quarter[36] - PFLT's core NII per share was $0 32 during the quarter, with an annualized dividend yield on NAV of 10 9%[36]
PennantPark Floating Rate Capital .(PFLT) - 2025 Q2 - Earnings Call Presentation
2025-06-25 14:18
PennantPark Overview - PennantPark is an independent private credit platform investing since 2007, with over $26 billion of capital deployed[3] and $10 billion of AUM as of March 31, 2025[3] - The firm targets profitable, growing, and cash-flowing companies with $10 million to $50 million of EBITDA[9] - PennantPark actively covers 770+ middle market PE sponsors in the U S[11], closing deals with 240+ PE sponsors[11] Investment Strategy & Performance - PennantPark focuses on capital preservation, resulting in low annualized loss rates of 0 08% on first lien loans[17, 18] - The cumulative default rate on PennantPark's first lien loans is 3 34% based on capital invested[18] with a recovery rate of 72 8% on principal proceeds only and 91 8% on all proceeds[18] - PFLT's portfolio consists of 159 direct investments with a market value of $2 3 billion as of March 31, 2025[35] PFLT Financial Highlights - PFLT reported $25 0 million of Net Investment Income (NII) during the fiscal second quarter, with $0 28 of core NII per share[36] - PFLT's total assets were $2 472 billion as of March 2025, with a Net Asset Value of $1 067 billion[40] - PFLT has a historically consistent monthly dividend of $0 1025, with an annualized dividend yield on NAV of 11 1% during the quarter[36]
Pennantpark Floating Rate Capital (PFLT) Earnings Call Presentation
2025-06-25 14:15
PennantPark Overview - PennantPark is an independent private credit platform investing since 2007, with over $26 billion of capital deployed[3] and $10 billion of AUM as of March 31, 2025[3] - The firm targets profitable, growing, and cash-flowing companies with $10 million to $50 million of EBITDA[9] - PennantPark actively covers 770+ middle market PE sponsors in the U S[11], closing deals with 240+ PE sponsors[11] Investment Strategy & Performance - PennantPark focuses on capital preservation, resulting in low annualized loss rates of 0 08% on first lien loans[17, 18] - The cumulative default rate on PennantPark's first lien loans is 3 34% based on capital invested[18] with a recovery rate of 72 8% on principal proceeds only and 91 8% on all proceeds[18] - PFLT's portfolio consists of 159 direct investments with a market value of $2 3 billion as of March 31, 2025[35] PFLT Financial Highlights - PFLT reported $25 0 million of Net Investment Income (NII) during the fiscal second quarter, with $0 28 of core NII per share[36] - PFLT's total assets were $2 472 billion as of March 2025, with a Net Asset Value of $1 067 billion[40] - PFLT has a historically consistent monthly dividend of $0 1025, with an annualized dividend yield on NAV of 11 1% during the quarter[36]
PennantPark Floating Rate Capital Ltd.'s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes the Reset of its $315.8 Million Securitization, Lowering the Cost of Financing
GlobeNewswire News Room· 2025-05-22 20:05
Core Viewpoint - PennantPark Floating Rate Capital Ltd. has successfully closed a $315.8 million debt securitization, demonstrating the strength of its platform amid market volatility and is expected to reduce the cost of capital for the company and its joint venture, PennantPark Senior Secured Loan Fund I LLC [1] Group 1: Debt Securitization Details - The securitization includes a four-year reinvestment period and a twelve-year final maturity [1] - The debt structure consists of: - A-R Loans: $228 million (72.2% of capital structure) with a coupon of 3 Mo SOFR + 1.85% rated A- - B-R Loans: $18 million (5.7% of capital structure) with a coupon of 3 Mo SOFR + 4.50% rated BBB- - C-R Loans: $18 million (5.7% of capital structure) retained with a rating of BB- - Subordinated Notes: $51.8 million (16.4% of capital structure) rated NR [1] Group 2: Company and Fund Overview - PennantPark Floating Rate Capital Ltd. primarily invests in U.S. middle market private companies through floating rate senior secured loans and may also invest in equity [3] - PennantPark Senior Secured Loan Fund I LLC is a joint venture between PennantPark Floating Rate Capital Ltd. and Kemper Corporation, focusing on U.S. middle market companies with below investment grade debt [4] - PennantPark Investment Advisers, LLC manages approximately $10 billion of investable capital, providing access to middle market credit since 2007 [5]
PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes the Reset of its $315.8 Million Securitization, Lowering the Cost of Financing
Globenewswire· 2025-05-22 20:05
MIAMI BEACH, Fla., May 22, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that PennantPark Senior Secured Loan Fund I LLC (“PSSL”) through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO VI, LLC (“CLO VI”) has closed the reset of a four-year reinvestment period, twelve-year final maturity $315.8 million debt securitization. The debt issued in this securitization (the “Debt”) is structured in the following manner: ClassPar Amount( ...
PennantPark Floating Rate Capital: Weak Q2 Earnings Warrants Caution (Rating Downgrade)
Seeking Alpha· 2025-05-18 03:37
Core Insights - Business Development Companies (BDCs) are beginning to experience challenges due to a prolonged period of higher interest rates, with PennantPark Floating Rate Capital (NYSE: PFLT) being one of the affected companies [1] Group 1: Industry Challenges - The prolonged period of higher interest rates is impacting many BDCs, indicating a broader trend within the industry [1] Group 2: Investment Strategy - A hybrid investment strategy that combines classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]