PennantPark Investment Corporation’s Unconsolidated Joint Venture, PennantPark Senior Loan Fund, LLC Completes the Partial Refinancing of its $300 Million Securitization, Lowering the Cost of Financing
PennantPark Investment Corporation (NYSE: PNNT) has announced that its unconsolidated joint venture, PennantPark Senior Loan Fund (PSLF), has completed a partial refinancing of its $300 million debt securitization through its subsidiary, CLO VII.
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Rhea-AI Summary
PennantPark Investment Corporation (NYSE: PNNT) has announced that its unconsolidated joint venture, PennantPark Senior Loan Fund (PSLF), has completed a partial refinancing of its $300 million debt securitization through its subsidiary, CLO VII. The refinancing impacts three tranches: $21 million B-R Loans at SOFR + 1.95%, $24 million C-R Loans at SOFR + 2.30%, and $18 million D-R Loans at SOFR + 3.35%.
The refinancing aims to significantly reduce PSLF's cost of capital, enhancing returns on invested capital. PennantPark currently manages $4.0 billion in middle market assets in securitizations and $10 billion of total investable capital. PSLF will retain the Subordinated Notes through a consolidated subsidiary and maintain its role as retention holder in the transaction.
Positive
- Significant reduction in cost of capital through refinancing
- Strong platform demonstrated by successful refinancing in attractive market conditions
- Large scale with $4.0 billion in middle market securitization assets
- Substantial total investable capital of $10 billion under management
Negative
- Debt securities not registered under Securities Act, limiting transferability
- Complex structure through joint venture and subsidiary may increase operational complexity
Details
News Market Reaction – PNNT
The recorded move for PNNT in the trading session of this news was +0.14%.
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MIAMI, July 23, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the “Company”) (NYSE: PNNT) today announced that PennantPark Senior Loan Fund, LLC (“PSLF”) through PSLF’s wholly-owned and consolidated subsidiary, PennantPark CLO VII, LLC (“CLO VII”) has closed the partial refinancing of its
The partial refinancing of this securitization (the “Debt”) impacted the following tranches:
| Class | Par Amount ($ in millions) | Coupon | Expected Rating (S&P) | Issuance Price |
| B-R Loans | 3 Mo SOFR + | AA | ||
| C-R Loans | 24,000,000 | 3 Mo SOFR + | A | |
| D-R Loans | 18,000,000 | 3 Mo SOFR + | BBB- | |
“The partial refinancing of this PSLF securitization is a continued testament to the strength of the Company’s platform, and highlights our ability to take advantage of an attractive market to reprice our liabilities lower,” said Arthur Penn, Chief Executive Officer. “The partial refinancing of CLO VII is expected to result in a significant reduction in the Company’s and PSLF’s cost of capital, which should allow PSLF to continue to achieve attractive returns on invested capital. PennantPark currently manages approximately
PSLF will continue to retain the Subordinated Notes through a consolidated subsidiary. In addition, PSLF continues to act as retention holder in the transaction to retain exposure to the performance of the securitized assets. BNP Paribas acted as lead placement agent on the CLO 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 PSLF. 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 INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development company which primarily invests in U.S. middle market private companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK SENIOR LOAN FUND, LLC
PennantPark Senior Loan Fund, LLC, is a joint venture between PennantPark Investment Corporation and Pantheon Ventures (UK), LLP 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
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 Investment Corporation 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 Investment Corporation 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 Investment Corporation
(212) 905-1000
www.pennantpark.com
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