Core Viewpoint - PennantPark Investment Corporation announced the partial refinancing of its $300 million debt securitization through its subsidiary, PennantPark CLO VII, LLC, which is expected to lower the cost of capital and enhance returns on invested capital [1][2]. Company Overview - PennantPark Investment Corporation is a business development company that primarily invests in U.S. middle market private companies through various forms of secured debt and equity investments [4]. - The company manages approximately $4.0 billion in middle market assets in securitizations and has a total of about $10 billion of investable capital, including leverage [2][6]. Investment Strategy - PennantPark Senior Loan Fund, LLC, a joint venture with Pantheon Ventures (UK), LLP, focuses on investing in U.S. middle market companies with below investment grade debt [5]. - The company aims to provide flexible financing solutions to private equity firms and their portfolio companies, as well as other middle market borrowers [6]. Financial Details - The partial refinancing involved different tranches with specific amounts and expected ratings: - Class B-R Loans: $21 million at 1.95% coupon rated AA - Class C-R Loans: $24 million at 2.30% coupon rated A - Class D-R Loans: $18 million at 3.35% coupon rated BBB- [2]. - The refinancing is anticipated to significantly reduce the cost of capital for both the company and PSLF [2]. Market Position - The CEO highlighted the refinancing as a testament to the strength of the company's platform and its ability to capitalize on favorable market conditions [2]. - The company continues to retain exposure to the performance of the securitized assets through its retention of Subordinated Notes [2]. Transaction Details - BNP Paribas acted as the lead placement agent for the CLO transaction [2]. - The debt offered in this securitization has not been registered under the Securities Act and cannot be sold in the U.S. without proper registration [3].

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]

Core Viewpoint - PennantPark Floating Rate Capital Ltd. has successfully closed a $315.8 million debt securitization, indicating the strength of its platform and ability to execute transactions amid market volatility [1][3]. Debt Securitization Details - The securitization includes a four-year reinvestment period and a twelve-year final maturity [1]. - The total debt issued is structured as follows: - Class A-R Loans: $228 million (72.2% of capital) with a coupon of +1.85% rated A- - Class B-R Loans: $18 million (5.7% of capital) with a coupon of +4.50% rated BBB- - Class C-R Loans: $18 million (5.7% of capital) retained with a rating of BB- - Subordinated Notes: $51.8 million (16.4% of capital) rated NR [2]. Company Growth and Strategy - The reset of CLO VI is expected to significantly reduce the cost of capital for both the Company and PennantPark Senior Secured Loan Fund I LLC (PSSL) [3]. - The Company and PSSL have approximately $850 million available for investment in middle market loans [3]. - PennantPark currently manages around $4.0 billion in middle market assets in securitizations and aims for continued growth with existing and new investors [3]. Management and Structure - PSSL will retain the Subordinated Notes and Class C-R Loans through a consolidated subsidiary, with the maturity of the replacement debt extended to April 2037 [3]. - GreensLedge Capital Markets LLC acted as the structurer and sole arranger for this transaction [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, second lien, and subordinated debt [5]. - PennantPark Investment Advisers, LLC manages approximately $10 billion of investable capital, providing a range of financing solutions to middle market borrowers [8].