PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes $301 Million Securitization, Marking Continued Growth in PennantPark’s Middle Market Platform with Twelve CLOs Under Management
Rhea-AI Summary
PennantPark Floating Rate Capital (NYSE: PFLT) has announced the completion of a $301 million debt securitization through its joint venture PSSL's subsidiary, PennantPark CLO 12. The collateralized loan obligation (CLO) features a four-year reinvestment period and twelve-year final maturity.
The securitization is structured across multiple classes, with AAA-rated tranches comprising the majority of the capital structure. The proceeds will be used to repay a portion of PSSL's $325 million secured credit facility. PSSL will retain all Subordinated Notes through a consolidated subsidiary.
This marks PennantPark's lowest AAA pricing in its platform's history, with the company now managing approximately $4.0 billion in CLO middle market assets. The reinvestment period ends in April 2029, with debt maturity scheduled for April 2037. CIBC World Markets Corp. served as lead placement agent for the securitization.
Positive
- Achieved lowest AAA pricing in platform's history
- Successfully raised $301 million in long-term financing
- Manages significant $4.0 billion in CLO middle market assets
- 100% funding expected at close
- Structured with majority AAA-rated tranches (60.7% of capital)
Negative
- Operating in challenging capital markets with interest rate volatility
- Increasing debt load through new CLO issuance
- Uncertain economic prospects affecting credit markets
News Market Reaction
On the day this news was published, PFLT declined 1.56%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MIAMI, April 15, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that PennantPark Senior Secured Loan Fund I LLC (“PSSL”) through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO 12, LLC (“CLO 12”) has closed a four-year reinvestment period, twelve-year final maturity
The debt issued in this Securitization (the “Debt”) is structured in the following manner:
| Class | Par Amount ($ in millions) | % of Capital Structure | Coupon | Expected Rating (S&P) | |
| A-1 Loans | 3 Mo SOFR + | AAA | |||
| A-1 Notes | 141,000,000 | 3 Mo SOFR + | AAA | ||
| A-2 Notes | 12,000,000 | 3 Mo SOFR + | AAA | ||
| B | 21,000,000 | 3 Mo SOFR + | AA | ||
| C | 24,000,000 | 3 Mo SOFR + | A | ||
| D | 18,000,000 | 3 Mo SOFR + | BBB- | ||
| Sub Notes | 55,020,000 | NR | |||
| Total | |||||
“This transaction demonstrates PennantPark’s resilience and ability to raise attractive long-term financing with our joint venture partner, especially in these challenging capital markets conditions in which interest rate volatility and uncertain economic prospects have disrupted credit markets,” said Arthur Penn, Chief Executive Officer. “We are particularly pleased to have achieved our lowest AAA pricing in our platform’s history which further enhances our strong capital position allowing us to participate in today’s excellent vintage of both primary and secondary opportunities. With the closing of CLO 12, PennantPark now manages approximately
PSSL will continue to retain all of the Subordinated Notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2029 and the Debt is scheduled to mature in April 2037. The term debt securitization is expected to be approximately
The notes offered as part of the term debt securitization have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state “blue sky” laws, and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements. The CLO is a form of secured financing incurred and consolidated by the Company. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 is a leading middle-market credit platform, managing approximately
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 Securities Exchange Act of 1934, as amended (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.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com
Source: PennantPark Floating Rate Capital Ltd.
FAQ
What is the size and structure of PFLT's latest CLO securitization?
When does PFLT's new CLO 12 reinvestment period end and mature?
How much CLO middle market assets does PennantPark now manage after CLO 12?
What will the proceeds from PFLT's new CLO be used for?
What is significant about the pricing of PFLT's CLO 12?
