PennantPark Floating Rate Capital Ltd. Closes New Securitization, Substantially Lowering Borrowing Costs

Core Viewpoint - PennantPark Floating Rate Capital Ltd. has successfully completed a $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 ($45 million), A-1 Notes ($220.5 million), A-2 Notes ($19 million), B Notes ($28.5 million), C Notes ($38 million), D Notes ($28.5 million), and Subordinated Notes ($85.1 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 $3.7 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].