PennantPark Floating Rate Capital Ltd. Announces Monthly Distribution of $0.1025 per Share

Rhea-AI Summary

PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) declared a $0.1025 per share monthly distribution for January 2026, payable on February 2, 2026 to holders of record on January 16, 2026. The distribution is expected to be paid from taxable net investment income. Final tax characteristics will be reported on Form 1099 and in the company's SEC periodic report.

The company is a business development company investing primarily in U.S. middle-market floating-rate senior secured loans and is managed by PennantPark Investment Advisers, which manages approximately $10 billion of investable capital.

Positive

• $0.1025 per-share distribution declared
• Distribution payable on Feb 2, 2026 to Jan 16 record holders
• Expected payment from taxable net investment income
• Manager oversees approximately $10 billion of capital

Negative

• Final tax classification reported after year-end on Form 1099
• Non-U.S. holders need proper documentation to claim withholding exemption
• Tax laws may change, potentially affecting future distributions

Key Figures

Monthly distribution $0.1025 per share January 2026 distribution declaration

Payable date February 2, 2026 Payment date for January 2026 distribution

Record date January 16, 2026 Record date for January 2026 distribution

Investable capital $10 billion PennantPark Investment Advisers managed capital including potential leverage

Inception year 2007 PennantPark Investment Advisers inception

Market Reality Check

$9.32 Last Close

Volume Volume 1,343,915 vs 20-day average 946,407 (relative volume 1.42x). normal

Technical Price 9.40 trades below 200-day MA of 9.87, before this dividend news.

Peers on Argus

PFLT was up 1.4% while close peers were flat to slightly negative (e.g., KBDC -0.49%, JFR -0.26%, AWF -0.09%, BCSF/NMFC 0%), indicating a more stock-specific reaction.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Monthly distribution	Neutral	+2.6%	Declared December 2025 monthly distribution of $0.1025 per share.
Nov 24	Earnings results	Neutral	-1.0%	Reported Q4 and FY 2025 results, including NII and portfolio metrics.
Nov 04	Monthly distribution	Neutral	+0.2%	Announced November 2025 monthly distribution of $0.1025 per share.
Oct 03	Earnings schedule	Neutral	+0.0%	Scheduled release and call for Q4 2025 earnings results.
Oct 02	Monthly distribution	Neutral	-0.2%	Declared October 2025 monthly distribution of $0.1025 per share.

Pattern Detected

Recent news has centered on recurring monthly distributions and regular earnings updates, with generally modest price moves and no clear pattern of strong rallies or selloffs following announcements.

Recent Company History

Over the last few months, PennantPark Floating Rate Capital Ltd. has repeatedly announced a monthly distribution of $0.1025 per share, with October, November, and December 2025 declarations producing small price moves, including a 2.62% gain after the December notice. Earnings coverage highlighted a portfolio of $2,773.3M, net assets of $1,074.5M, and NAV per share of $10.83. The new January 2026 distribution continues this pattern of stable payouts funded by taxable net investment income.

Market Pulse Summary

This announcement continues PennantPark Floating Rate Capital Ltd.’s pattern of monthly distributions at $0.1025 per share, funded from taxable net investment income. It reiterates the company’s status as a regulated investment company and highlights potential U.S. withholding tax benefits for properly documented non-U.S. holders. In context of prior distribution and earnings releases, investors may focus on the durability of net investment income and portfolio performance as key metrics to monitor.

Key Terms

regulated investment company financial

"The Company, which operates as a regulated investment company (“RIC”), generates..."

A regulated investment company is a type of pooled investment (like a mutual fund or ETF) that meets specific tax-law rules allowing it to pass most income, gains and losses directly to shareholders instead of being taxed at the company level. For investors this matters because it affects how distributions are taxed, how often income is paid, and the overall net return—think of it like a collective account that funnels earnings straight to owners rather than keeping profits inside a separate corporate layer.

short-term capital gains financial

"generates qualified interest income and short-term capital gains that may be exempt..."

Profit from selling an investment held for a short period that is taxed at ordinary income rates rather than the lower long-term rates. Think of it like flipping a gadget quickly for a gain: because you didn’t hold it long, the taxman treats the profit like regular pay, which can reduce the after-tax return and influence decisions about how long investors keep assets.

withholding tax regulatory

"may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders."

Withholding tax is a government-required portion of a payment—such as dividends, interest, or salary—that the payer keeps back and sends directly to tax authorities before the recipient receives the money. For investors it reduces the cash they actually get and changes the after-tax return on an investment; rates and refund or credit rules vary by country and can materially affect comparisons between similar investments, like a cashier holding part of a bill to cover taxes.

form 1099 regulatory

"tax characteristics of the distribution will be reported to stockholders on Form 1099..."

Form 1099 is a set of U.S. tax forms used by financial institutions and payers to report income paid to an individual or entity that isn’t a regular paycheck, such as dividends, interest, bond or stock sale proceeds, and certain miscellaneous payments. For investors it acts like a formal receipt summarizing taxable events for the year, so it matters for calculating tax liability, verifying broker statements, and keeping accurate records of after‑tax returns.

floating rate senior secured loans financial

"invests ... in the form of floating rate senior secured loans, including first lien..."

A floating rate senior secured loan is a type of loan a company takes where the interest rate moves up or down with a market benchmark, the loan has first claim on repayment ahead of other creditors, and it is backed by specific assets as collateral. For investors this means income that adjusts when interest rates change, stronger protection if the borrower runs into trouble, and typically lower risk and yield than unsecured or junior debt—think of it like an adjustable-rate mortgage that gets paid back first and is tied to a pledged asset.

first lien secured debt financial

"floating rate senior secured loans, including first lien secured debt, second lien..."

A first lien secured debt is a loan or bond backed by specific assets that gives the lender the top legal claim on those assets if the borrower defaults. Think of it like holding the first seat in line for repayment from a company’s pledged property; that priority usually means lower risk and lower interest compared with unsecured or later‑ranked debt. Investors care because it determines how likely they are to recover money if the borrower runs into trouble and where this claim sits in the company’s payment order.

subordinated debt financial

"including first lien secured debt, second lien secured debt and subordinated debt."

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

AI-generated analysis. Not financial advice.

MIAMI, Jan. 05, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the "Company") (NYSE: PFLT) declares its monthly distribution for January 2026 of $0.1025 per share, payable on February 2, 2026 to stockholders of record as of January 16, 2026. The distribution is expected to be paid from taxable net investment income. The final specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company's periodic report filed with the Securities and Exchange Commission.

The Company, which operates as a regulated investment company (“RIC”), generates qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders. The U.S. tax law permits a RIC to report the portion of distributions paid that represents interest-related dividends as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

The specific tax characteristics of this distribution can be found on our website www.pennantpark.com.

ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.

PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC, a leading middle market credit platform, and its affiliates, manage approximately $10 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, Amsterdam, and Zurich. For more information about PennantPark and affiliates, please go to our website at www.pennantpark.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com

FAQ

What distribution did PennantPark Floating Rate Capital (PFLT) declare for January 2026?

PFLT declared a $0.1025 per share distribution for January 2026.

When is the PFLT January 2026 distribution payable and who is eligible?

The distribution is payable on Feb 2, 2026 to shareholders of record as of Jan 16, 2026.

How will PennantPark (PFLT) report tax details for the January 2026 distribution?

Final tax characteristics will be reported on Form 1099 after year-end and in the company's SEC periodic report.

Is the PFLT distribution taxable and where will it be sourced from?

The company expects the distribution to be paid from taxable net investment income.

How are non-U.S. shareholders treated for PFLT distributions?

Interest-related dividends may be exempt from U.S. withholding tax for non-U.S. holders with proper documentation.

Where can investors find more details about PFLT's distribution and tax characteristics?

Distribution tax details and related information are available on the company's website at www.pennantpark.com and in SEC filings.