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
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
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.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) ha annunciato che la sua joint venture PSSL ha completato con successo un rifinanziamento da 315,8 milioni di dollari di cartolarizzazione del debito tramite la sua controllata CLO VI. Il debito ristrutturato comprende 228 milioni di dollari in prestiti A-R a SOFR + 1,85%, 18 milioni di dollari in prestiti B-R a SOFR + 4,50%, oltre a posizioni mantenute in prestiti C-R e note subordinate. Il rifinanziamento estende la scadenza fino ad aprile 2037 e include un periodo di reinvestimento di quattro anni. Questa operazione dovrebbe ridurre significativamente il costo del capitale per PFLT e PSSL. La società, che gestisce circa 4,0 miliardi di dollari in asset di mercato medio nelle cartolarizzazioni, dispone di circa 850 milioni di dollari di capitale disponibile tra PFLT e PSSL per investimenti in prestiti di mercato medio.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) ha anunciado que su empresa conjunta PSSL ha completado con éxito un reinicio de titulización de deuda por 315,8 millones de dólares a través de su subsidiaria CLO VI. La deuda reestructurada incluye 228 millones de dólares en préstamos A-R a SOFR + 1,85%, 18 millones de dólares en préstamos B-R a SOFR + 4,50%, y posiciones retenidas en préstamos C-R y notas subordinadas. El reinicio extiende el vencimiento hasta abril de 2037 e incluye un período de reinversión de cuatro años. Se espera que esta transacción reduzca significativamente el costo de capital de PFLT y PSSL. La compañía, que administra aproximadamente 4.000 millones de dólares en activos de mercado medio en titulizaciones, cuenta con alrededor de 850 millones de dólares de capital disponible entre PFLT y PSSL para invertir en préstamos de mercado medio.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT)는 합작 투자사 PSSL이 자회사 CLO VI를 통해 3억 1,580만 달러 규모의 부채 증권화 리셋을 성공적으로 완료했다고 발표했습니다. 재구성된 부채에는 SOFR + 1.85%의 2억 2,800만 달러 A-R 대출, SOFR + 4.50%의 1,800만 달러 B-R 대출, 그리고 C-R 대출 및 후순위 채권의 보유 포지션이 포함됩니다. 이번 리셋으로 만기가 2037년 4월까지 연장되며 4년간의 재투자 기간이 포함됩니다. 이 거래는 PFLT와 PSSL의 자본 비용을 크게 줄일 것으로 예상됩니다. 약 40억 달러 규모의 중간 시장 자산을 증권화하여 운용하는 이 회사는 PFLT와 PSSL을 합쳐 중간 시장 대출에 투자할 수 있는 약 8억 5천만 달러의 가용 자본을 보유하고 있습니다.
PennantPark Floating Rate Capital Ltd. (NYSE : PFLT) a annoncé que sa coentreprise PSSL a réussi à finaliser un réajustement de titrisation de dette de 315,8 millions de dollars via sa filiale CLO VI. La dette restructurée comprend 228 millions de dollars de prêts A-R à SOFR + 1,85 %, 18 millions de dollars de prêts B-R à SOFR + 4,50 %, ainsi que des positions conservées dans les prêts C-R et les billets subordonnés. Le réajustement prolonge l’échéance jusqu’en avril 2037 et inclut une période de réinvestissement de quatre ans. Cette opération devrait réduire significativement le coût du capital de PFLT et PSSL. La société, qui gère environ 4,0 milliards de dollars d’actifs sur le marché intermédiaire en titrisations, dispose d’environ 850 millions de dollars de capital disponible entre PFLT et PSSL pour investir dans des prêts sur le marché intermédiaire.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) hat bekannt gegeben, dass sein Joint Venture PSSL erfolgreich eine Schuldtitel-Reset-Transaktion über 315,8 Millionen US-Dollar über seine Tochtergesellschaft CLO VI abgeschlossen hat. Die umstrukturierte Schuld umfasst 228 Millionen US-Dollar an A-R-Darlehen zu SOFR + 1,85 %, 18 Millionen US-Dollar an B-R-Darlehen zu SOFR + 4,50 % sowie gehaltene Positionen in C-R-Darlehen und nachrangigen Schuldverschreibungen. Das Reset verlängert die Laufzeit bis April 2037 und beinhaltet eine vierjährige Reinvestitionsperiode. Diese Transaktion wird voraussichtlich die Kapitalkosten von PFLT und PSSL deutlich senken. Das Unternehmen, das etwa 4,0 Milliarden US-Dollar an Mittelmarktvermögen in Verbriefungen verwaltet, verfügt über rund 850 Millionen US-Dollar verfügbares Kapital zwischen PFLT und PSSL für Investitionen in Mittelmarktdarlehen.
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
Insights
PFLT's joint venture reset a $315.8M securitization, lowering financing costs and potentially enhancing returns on invested capital.
PennantPark Floating Rate Capital (PFLT) has successfully reset a $315.8 million debt securitization through its joint venture PSSL, extending the maturity to April 2037 with a four-year reinvestment period. This financial restructuring is particularly notable as it was executed during significant market volatility, demonstrating the strength of PFLT's platform.
The reset securitization maintains its size at $315.8 million but with revised terms. The Class A-R Loans, representing 72.2% of the capital structure, now carry a coupon of 3-month SOFR plus 1.85%, while the B-R Loans (5.7% of structure) are priced at SOFR plus 4.50%. PSSL is retaining both the Class C-R Loans (5.7%) and the Subordinated Notes (16.4%), maintaining significant skin in the game.
This transaction should substantially reduce PFLT's and PSSL's cost of capital, which is critical for a business development company whose profitability depends on the spread between its investment yields and borrowing costs. The reset positions PFLT to capitalize on what management describes as an "attractive vintage of core middle market loans" with approximately $850 million of available capital between PFLT and PSSL.
The increased scale of both balance sheets, combined with more efficient long-term financing, should create operational leverage that enhances returns on invested capital. This improved financial structure strengthens PFLT's competitive position in the middle market lending space, where they currently manage approximately $4 billion in assets through securitizations.
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%.
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