PennantPark Floating Rate Capital (NYSE:PFLT) priced an underwritten public offering of $100 million 7.375% notes due 2031. The notes mature June 15, 2031, are callable at par from June 15, 2028, and are expected to list on NYSE under PFLA around June 2026.
The underwriters have a 30-day option for an additional $15 million. Net proceeds are earmarked to repay the revolving credit facility, fund new or existing portfolio investments, and for general corporate or strategic purposes.
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Positive
$100 million 7.375% notes due 2031 priced in underwritten public offering
30-day underwriter option to purchase up to additional $15 million of notes
Expected NYSE listing of notes under symbol PFLA within 30 days of issue
Net proceeds planned to repay revolving credit facility obligations
Proceeds also designated to invest in new or existing portfolio companies
Negative
Incurs new long-term debt carrying a 7.375% annual interest rate
Notes generally non-callable until June 15, 2028, limiting early refinancing flexibility
News Market Reaction – PFLT
+0.24%
+0.24%Session close to close
In the May 28 session, PFLT gained 0.24%, reflecting a mild positive market reaction.
This announcement details PFLT’s plan to issue $100M of 7.375% notes due 2031, with an option for an...
Analysis
This announcement details PFLT’s plan to issue $100M of 7.375% notes due 2031, with an option for an additional $15M. Proceeds are earmarked to repay the revolving credit facility and support portfolio investments and general or strategic purposes. Compared with the earlier $200M 6.75% 2029 notes, it extends the debt maturity profile. Investors may focus on demand for the new issue, leverage trends, and how added interest expense interacts with future net investment income.
Key Figures
Notes principal:$100 millionCoupon rate:7.375%Maturity year:2031+5 more
8 metrics
Notes principal$100 millionAggregate principal amount of 7.375% notes offering
Coupon rate7.375%Interest rate on notes due 2031
Maturity year2031Scheduled maturity of the new notes
First call dateJune 15, 2028Earliest optional redemption date for notes
Over-allotment option$15 millionAdditional principal amount underwriters may purchase
Expected closing dateJune 1, 2026Target closing for the notes offering
Managed capital$10 billionInvestable capital managed by PennantPark Investment Advisers, LLC
Inception year2007Year PennantPark Investment Advisers, LLC was founded
Priced $200M 6.75% notes due 2029 off effective registration.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Limited prior history for note offerings shows a small positive reaction, suggesting these financings have been absorbed without major dislocations.
Recent Company History
Historical data for PFLT’s capital markets activity shows one recent note offering. On Feb 26, 2026, the company priced $200 million of 6.75% notes due 2029, with proceeds earmarked to repay its revolving credit facility and fund portfolio investments and general or strategic uses. That announcement saw a modest 0.12% share-price move, indicating prior debt issuance was digested calmly. Today’s 2031 notes pricing follows a similar pattern of terming out funding while supporting portfolio growth.
Key Terms
underwritten public offering, aggregate principal amount, prospectus supplement, prospectus, +4 more
8 terms
underwritten public offeringfinancial
"it has priced an underwritten public offering of $100 million..."
An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.
aggregate principal amountfinancial
"public offering of $100 million aggregate principal amount of its 7.375% notes..."
The aggregate principal amount is the total amount of money borrowed through a bond or loan that the borrower promises to repay. It’s like the original price tag on a loan or bond, showing how much money is involved in the deal. This number matters because it indicates the size of the debt and helps investors understand the scale of the borrowing.
prospectus supplementregulatory
"the preliminary prospectus supplement dated May 27, 2026 and the accompanying prospectus..."
A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.
prospectusregulatory
"Before you invest, you should read the prospectus in that registration statement..."
A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.
business development companyfinancial
"PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests..."
A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.
floating rate senior secured loansfinancial
"primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans..."
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 debtfinancial
"including first lien secured debt, second lien secured debt and subordinated debt."
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 debtfinancial
"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.
MIAMI, May 27, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that it has priced an underwritten public offering of $100 million aggregate principal amount of its 7.375% notes due 2031 (the “Notes”). The Notes will mature on June 15, 2031 and may be redeemed in whole or in part at the Company’s option at any time on and after June 15, 2028, upon not less than 30 days nor more than 60 days’ written notice prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption. The offering is expected to close on or about June 1, 2026, subject to the satisfaction of customary closing conditions. The Notes are expected to be listed on the New York Stock Exchange and to trade thereon within 30 days of the original issue date under the symbol “PFLA”.
The Company has granted the underwriters a 30-day option to purchase up to an additional $15 million aggregate principal amount of Notes at the same price and on the same terms and conditions to cover over-allotments, if any.
The Company intends to use the net proceeds from the offering to repay its outstanding obligations under its revolving credit facility, to invest in new or existing portfolio companies and for general corporate or strategic purposes.
Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Keefe, Bruyette & Woods, A Stifel Company, RBC Capital Markets, LLC and UBS Securities LLC are acting as joint book-running managers for this offering. Oppenheimer & Co. Inc., Ladenburg Thalmann & Co. Inc. and Maxim Group LLC are acting as co-managers for this offering.
Other Information
Investors are advised to carefully consider the investment objectives, risks, charges and expenses of the Company before investing. The pricing term sheet dated May 27, 2026, the preliminary prospectus supplement dated May 27, 2026 and the accompanying prospectus dated July 17, 2024, each of which have been filed with the Securities and Exchange Commission (the “SEC”), contain this and other information about the Company and should be read carefully before investing.
The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of the Company and are not soliciting an offer to buy such securities in any state or jurisdiction where such offer and sale is not permitted.
The Company’s shelf registration statement is on file and has been declared effective by the SEC. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, you may obtain copies of the preliminary prospectus supplement and the accompanying prospectus from Morgan Stanley & Co. LLC by calling +1 (866) 718-1649; Goldman Sachs & Co. LLC by calling +1 (866) 471-2526; Keefe, Bruyette & Woods, Inc. by calling +1 (800) 966-1559; RBC Capital Markets, LLC by calling +1 (866) 375-6829; and UBS Securities LLC by calling +1 (833) 481-0269. You are advised to obtain a copy of the prospectus supplement and accompanying prospectus and to carefully review the information contained or incorporated by reference therein before making any investment decision.
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market 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.
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 of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or 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 we file 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 SEC. 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.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.
CONTACT:
Richard T. Allorto, Jr. PennantPark Floating Rate Capital Ltd. (212) 905-1000
Source: PennantPark Floating Rate Capital Ltd.
FAQ
What did PennantPark Floating Rate Capital (NYSE:PFLT) announce on May 27, 2026?
PennantPark Floating Rate Capital announced pricing of a $100 million public notes offering. According to the company, the 7.375% notes will mature on June 15, 2031, with expected closing around June 1, 2026, subject to customary conditions.
What are the key terms of PennantPark Floating Rate Capital's 7.375% notes due 2031 (PFLA)?
The notes carry a 7.375% interest rate and mature June 15, 2031. According to the company, they are callable at 100% of principal plus accrued interest from June 15, 2028, and are expected to list on the NYSE under the symbol PFLA.
How will PennantPark Floating Rate Capital use proceeds from the $100 million notes offering (PFLT)?
The company plans to use net proceeds to repay its revolving credit facility. According to the company, remaining funds may be invested in new or existing portfolio companies and used for general corporate or strategic purposes.
Does the PennantPark Floating Rate Capital notes deal include an over-allotment option?
Yes, the underwriters received a 30-day option to buy up to $15 million additional notes. According to the company, this option is at the same price and on the same terms as the main $100 million offering.
When will PennantPark Floating Rate Capital's new notes start trading on the NYSE under PFLA?
The notes are expected to be listed and trade on the NYSE within 30 days of the original issue date. According to the company, they will trade under the symbol PFLA once listed.
What is the expected closing date of PennantPark Floating Rate Capital's 7.375% notes offering?
The offering is expected to close on or about June 1, 2026. According to the company, closing is subject to customary conditions typical for underwritten public offerings of debt securities.
What type of investments does PennantPark Floating Rate Capital target with capital raised from offerings like these?
PennantPark Floating Rate Capital primarily invests in U.S. middle-market companies through floating rate senior secured loans. According to the company, it may also make equity investments while being managed by PennantPark Investment Advisers, a middle-market credit platform.
