PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes the Reset of its $315.8 Million Securitization, Lowering the Cost of Financing

Rhea-AI Summary

PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) has announced that its joint venture PSSL has successfully completed a $315.8 million debt securitization reset through its subsidiary CLO VI. The restructured debt includes $228 million in A-R Loans at SOFR + 1.85%, $18 million in B-R Loans at SOFR + 4.50%, and retained positions in C-R Loans and Subordinated Notes. The reset extends the maturity to April 2037 and includes a four-year reinvestment period. This transaction is expected to significantly reduce PFLT's and PSSL's cost of capital. The company, which manages approximately $4.0 billion in middle market assets in securitizations, has about $850 million of available capital between PFLT and PSSL for investment in middle market loans.

Positive

• Significant reduction in cost of capital through debt restructuring
• $850 million of available capital for new investments
• Extended maturity to April 2037 provides long-term financing stability
• 100% expected funding at close indicates strong execution
• Maintains exposure to securitized assets through retention holding

Negative

• Increased leverage through $315.8 million securitization
• Exposure to market volatility and interest rate risk through floating rate structure
• Complex debt structure with multiple tranches may increase operational complexity

MIAMI BEACH, Fla., May 22, 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 VI, LLC (“CLO VI”) has closed the reset of a four-year reinvestment period, twelve-year final maturity $315.8 million debt securitization.

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)	Issuance Price
A-R Loans	$	228,000,000	72.2%	3 Mo SOFR + 1.85%	A-	100.0%
B-R Loans		18,000,000	5.7%	3 Mo SOFR + 4.50%	BBB-	100.0%
C-R Loans		18,000,000	5.7%	Retained	BB-	100.0%
Sub. Notes		51,800,000	16.4%	N/A	NR	N/A
Total	$	315,800,000

“The reset of this PSSL securitization is a testament to the strength of the Company’s platform, and highlights our ability to execute on a transaction during a period of significant market volatility,” said Arthur Penn, Chief Executive Officer. “The reset of CLO VI is expected to result in a significant reduction in the Company’s and PSSL’s cost of capital. The increases in scale of both the Company’s and PSSL’s balance sheets coupled with efficiencies gained in their long term financing should continue to drive attractive returns on invested capital and enhance the Company’s earnings momentum. Between PFLT and PSSL, there is approximately $850 million of available capital that can be invested in this attractive vintage of core middle market loans. PennantPark currently manages approximately $4.0 billion in middle market assets in securitizations, and we look forward to continued growth with the support of our current and new investors.”

PSSL will continue to retain the Subordinated Notes and Class C-R Loans through a consolidated subsidiary. The maturity of the replacement Debt and the existing Subordinated Notes is now extended to April 2037. The replacement Debt is expected to be approximately 100% funded at close. In addition, PSSL continues to act as retention holder in the transaction to retain exposure to the performance of the securitized assets. GreensLedge Capital Markets LLC acted as the structurer and sole arranger in connection with this reset transaction.

The Debt offered as part of this 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 PSSL. 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 Debt 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 SENIOR SECURED LOAN FUND I LLC

PennantPark Senior Secured Loan Fund I LLC, is a joint venture between PennantPark Floating Rate Capital Ltd. and a subsidiary of Kemper Corporation (NYSE: KMPR), Trinity Universal Insurance Company, and primarily invests in U.S. middle market companies whose debt is rated below investment grade.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC (“PennantPark”) is a leading middle market credit platform, managing approximately $10.0 billion of investable capital, including available leverage. Since its inception in 2007, PennantPark 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 is headquartered in Miami, and has offices in New York, Chicago, Houston, Los Angeles and Amsterdam.

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

FAQ

What is the size of PFLT's latest securitization reset?

PennantPark's latest securitization reset through PSSL is $315.8 million, structured with multiple tranches including $228 million in A-R Loans, $18 million in B-R Loans, and retained positions in C-R Loans and Subordinated Notes.

How will the securitization reset benefit PFLT shareholders?

The reset is expected to significantly reduce the company's and PSSL's cost of capital, which should drive attractive returns on invested capital and enhance earnings momentum for shareholders.

What is the maturity date of PFLT's new securitization?

The reset securitization extends the maturity to April 2037, with a four-year reinvestment period.

How much capital does PFLT have available for investment?

Between PFLT and PSSL, there is approximately $850 million of available capital that can be invested in middle market loans.

What is the interest rate on PFLT's A-R Loans in the securitization?

The A-R Loans, which represent 72.2% of the capital structure, carry an interest rate of 3-month SOFR plus 1.85%.