PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes the Reset of $316.7 Million Securitization, Substantially Reducing Borrowing Costs
Rhea-AI Summary
PennantPark Floating Rate Capital (NYSE: PFLT) announced that its unconsolidated joint venture, PennantPark Senior Secured Loan Fund I (PSSL), via wholly owned subsidiary PennantPark CLO II, closed a reset of a $316.7 million term debt securitization with a four-year reinvestment period and twelve-year final maturity.
The capital structure includes multiple note classes (X, A-1-R2, A-2-R2, B-R2, C-R2, D-R2, E-R2) and preferred shares, with senior tranches rated up to AAA and coupons ranging from 3‑month SOFR + 1.05% to + 7.50%. According to PennantPark Floating Rate Capital, the reset is expected to reduce the weighted average cost of capital from SOFR + 2.31% to SOFR + 1.82% and extend the replacement debt maturity to April 2038. PSSL will retain the preferred shares and Class E-R2 notes through a consolidated subsidiary and continue to act as retention holder, with the replacement debt expected to be approximately 100% funded at closing.
Positive
- Cost of capital reduced from SOFR + 2.31% to SOFR + 1.82%
- $316.7 million securitization reset with four-year reinvestment, 12-year final term
- Debt maturity extended to April 2038
- Replacement Debt expected to be approximately 100% funded at close
- PSSL retains Preferred Shares and Class E-R2 Notes, maintaining exposure to assets
- PennantPark manages approximately $4 billion in middle-market securitization assets
Negative
- None.
News Market Reaction – PFLT
In the Aug 31 session, PFLT gained 1.29%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIAMI, Aug. 31, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) announced that PennantPark Senior Secured Loan Fund I LLC (“PSSL”), through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO II, Ltd (“CLO II”), has closed the reset of 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 | % of Capital Structure | Coupon | Expected Rating (S&P) | Issuance Price |
| X Notes | 3 Mo SOFR + | AAA | |||
| A-1-R2 Notes | 172,500,000 | 3 Mo SOFR + | AAA | ||
| A-2-R2 Notes | 13,500,000 | 3 Mo SOFR + | AAA | ||
| B-R2 Notes | 22,500,000 | 3 Mo SOFR + | AA | ||
| C-R2 Notes | 19,500,000 | 3 Mo SOFR + | A | ||
| D-R2 Notes | 18,000,000 | 3 Mo SOFR + | BBB- | ||
| E-R2 Notes | 18,000,000 | 3 Mo SOFR + | BB- | N/A | |
| Preferred Shares | 47,700,000 | N/A | NR | N/A | |
| Total |
“We are pleased to have completed this reset which enables us to optimize financing costs in the current market, reinforcing our commitment to deliver sustained value for our investors,” said Arthur Penn, Chief Executive Officer. “The reset is expected to result in a reduction in the weighted average cost of capital from SOFR +
PSSL will continue to retain the Preferred Shares and Class E-R2 Notes through a consolidated subsidiary. The maturity of the replacement Debt is now extended to April 2038. The replacement Debt 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. This financing 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 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 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, a leading middle-market credit platform, and its affiliates manage over
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 the Company 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. The Company 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
