PennantPark Floating Rate Capital .(PFLT) - 2025 Q2 - Quarterly Results

Financial Performance - For the quarter ended March 31, 2025, the investment portfolio totaled $2,344.1 million, with net assets of$ 1,067.1 million, reflecting a quarterly change in GAAP net asset value per share of -2.4%[2] - Net investment income for the quarter was $25.0 million, or$ 0.28 per share, compared to $19.1 million, or$ 0.31 per share for the same period in 2024, indicating an increase in investment income[17] - For the six months ended March 31, 2025, net investment income totaled $55.0 million, or$ 0.64 per share, consistent with the same period in 2024[17] - Total investment income for the six months ended March 31, 2025, was $128.9 million, an increase from$ 82.3 million in the same period of 2024[36] - The company declared distributions of $0.31 per share for the quarter[2] - The company declared distributions of$ 0.615 per share for the six months ended March 31, 2025, totaling $52.9 million, compared to$ 36.9 million for the same period in 2024[30] Investment Activities - The company invested $293.3 million in new and existing portfolio companies during the quarter, with a weighted average yield on debt investments of 9.9%[8] - The weighted average yield on debt investments in the portfolio was 10.5% as of March 31, 2025[6] - The company had four portfolio companies on non-accrual status, representing 2.2% of the overall portfolio on a cost basis[6] Expenses and Debt - Total expenses for the quarter were$ 36.9 million, up from $25.3 million in the same quarter of 2024, primarily due to increased interest expenses and management fees[16] - The annualized weighted average cost of debt decreased to 6.8% for the six months ended March 31, 2025, from 7.1% in the prior year[25] - The company completed a$ 474.6 million term debt securitization in February 2025, retaining $85.1 million of subordinated notes[24] - The company closed a$ 301 million debt securitization in April 2025, structured with various classes of loans and notes, expected to be approximately 100% funded at close[32] Asset Management - The company’s total assets increased to $2.471 billion as of March 31, 2025, from$ 2.109 billion as of September 30, 2024[35] - The net asset value per share decreased to $11.07 as of March 31, 2025, from$ 11.31 a year earlier[35] - For the six months ended March 31, 2025, the company had cash equivalents of $111.4 million, slightly down from$ 112.1 million as of September 30, 2024[26] - The company issued 11,562,000 shares and 18,838,000 shares of common stock during the three and six months ended March 31, 2025, raising net proceeds of $131.0 million and$ 213.2 million, respectively[27] Management and Strategy - PennantPark Floating Rate Capital Ltd. primarily invests in U.S. middle-market companies through floating rate senior secured loans, including first lien, second lien, and subordinated debt[38] - PennantPark Investment Advisers, LLC manages approximately $10 billion of investable capital, including potential leverage, since its inception in 2007[39] - The company provides a comprehensive range of creative and flexible financing solutions to private equity firms and middle-market borrowers[39] Forward-Looking Statements - Forward-looking statements made by the company are subject to risks and uncertainties that could cause actual results to differ materially from expectations[40] - The company does not guarantee future performance or results, and actual outcomes may vary significantly from forward-looking statements[41] - The information provided does not constitute specific legal, tax, or accounting advice, and qualified professionals should be consulted for such matters[42]