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. 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.
PennantPark Investment Corporation (NYSE: PNNT) ha annunciato che la sua joint venture non consolidata, PennantPark Senior Loan Fund (PSLF), ha completato un rifinanziamento parziale della sua cartolarizzazione del debito da 300 milioni di dollari tramite la sua controllata, CLO VII. Il rifinanziamento riguarda tre tranche: 21 milioni di dollari in prestiti B-R a SOFR + 1,95%, 24 milioni di dollari in prestiti C-R a SOFR + 2,30% e 18 milioni di dollari in prestiti D-R a SOFR + 3,35%.
L'obiettivo del rifinanziamento è ridurre significativamente il costo del capitale di PSLF, migliorando i rendimenti sul capitale investito. PennantPark gestisce attualmente 4,0 miliardi di dollari in asset di mercato medio nelle cartolarizzazioni e 10 miliardi di dollari di capitale totale investibile. PSLF manterrà le Note Subordinate tramite una controllata consolidata e continuerà a svolgere il ruolo di detentore di retention nella transazione.
PennantPark Investment Corporation (NYSE: PNNT) ha anunciado que su empresa conjunta no consolidada, PennantPark Senior Loan Fund (PSLF), ha completado una refinanciación parcial de su titulización de deuda de 300 millones de dólares a través de su subsidiaria, CLO VII. La refinanciación afecta a tres tramos: 21 millones de dólares en préstamos B-R a SOFR + 1,95%, 24 millones de dólares en préstamos C-R a SOFR + 2,30% y 18 millones de dólares en préstamos D-R a SOFR + 3,35%.
La refinanciación tiene como objetivo reducir significativamente el costo de capital de PSLF, mejorando los rendimientos sobre el capital invertido. PennantPark gestiona actualmente 4.000 millones de dólares en activos de mercado medio en titulizaciones y 10.000 millones de dólares de capital total invertible. PSLF conservará las Notas Subordinadas a través de una subsidiaria consolidada y mantendrá su papel como titular de retención en la transacción.
PennantPark Investment Corporation (NYSE: PNNT)는 비연결 합작 투자사인 PennantPark Senior Loan Fund (PSLF)가 자회사 CLO VII를 통해 3억 달러 규모의 부채 증권화 일부 재융자를 완료했다고 발표했습니다. 이번 재융자는 세 개 트랜치에 영향을 미칩니다: SOFR + 1.95%의 2,100만 달러 B-R 대출, SOFR + 2.30%의 2,400만 달러 C-R 대출, SOFR + 3.35%의 1,800만 달러 D-R 대출입니다.
재융자의 목적은 PSLF의 자본 비용을 크게 낮추어 투자 자본 수익률을 향상시키는 것입니다. PennantPark는 현재 증권화된 중간 시장 자산 40억 달러와 총 투자 가능 자본 100억 달러를 관리하고 있습니다. PSLF는 연결 자회사를 통해 후순위 채권을 보유하며 거래에서 보유자 역할을 유지할 예정입니다.
PennantPark Investment Corporation (NYSE: PNNT) a annoncé que sa coentreprise non consolidée, PennantPark Senior Loan Fund (PSLF), a réalisé un refinancement partiel de sa titrisation de dette de 300 millions de dollars via sa filiale CLO VII. Le refinancement concerne trois tranches : 21 millions de dollars de prêts B-R à SOFR + 1,95 %, 24 millions de dollars de prêts C-R à SOFR + 2,30 % et 18 millions de dollars de prêts D-R à SOFR + 3,35 %.
Ce refinancement vise à réduire significativement le coût du capital de PSLF, améliorant ainsi les rendements sur le capital investi. PennantPark gère actuellement 4,0 milliards de dollars d'actifs de marché intermédiaire dans des titrisations et 10 milliards de dollars de capital total investissable. PSLF conservera les obligations subordonnées via une filiale consolidée et maintiendra son rôle de détenteur de retention dans la transaction.
PennantPark Investment Corporation (NYSE: PNNT) hat bekannt gegeben, dass ihr nicht konsolidiertes Joint Venture, PennantPark Senior Loan Fund (PSLF), eine teilweise Refinanzierung ihrer 300 Millionen US-Dollar Schuldtitel über ihre Tochtergesellschaft CLO VII abgeschlossen hat. Die Refinanzierung betrifft drei Tranchen: 21 Millionen US-Dollar B-R-Darlehen zu SOFR + 1,95 %, 24 Millionen US-Dollar C-R-Darlehen zu SOFR + 2,30 % und 18 Millionen US-Dollar D-R-Darlehen zu SOFR + 3,35 %.
Ziel der Refinanzierung ist es, die Kapitalkosten von PSLF deutlich zu senken und die Renditen auf das investierte Kapital zu verbessern. PennantPark verwaltet derzeit 4,0 Milliarden US-Dollar an Mittelmarkt-Assets in Verbriefungen und 10 Milliarden US-Dollar an insgesamt investierbarem Kapital. PSLF wird die nachrangigen Schuldverschreibungen über eine konsolidierte Tochtergesellschaft halten und seine Rolle als Retention Holder in der Transaktion beibehalten.
- 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
- Debt securities not registered under Securities Act, limiting transferability
- Complex structure through joint venture and subsidiary may increase operational complexity
Insights
PNNT's joint venture refinanced $63M of securitized debt at lower rates, reducing capital costs and potentially improving returns.
PennantPark Investment Corporation's joint venture has successfully executed a partial refinancing of its
- Class B-R Loans:
$21 million at SOFR +1.95% (AA-rated) - Class C-R Loans:
$24 million at SOFR +2.30% (A-rated) - Class D-R Loans:
$18 million at SOFR +3.35% (BBB-rated)
This refinancing represents a tactical financial maneuver that should directly enhance the economics of the PennantPark Senior Loan Fund (PSLF) joint venture between PNNT and Pantheon Ventures. By reducing the interest rate spreads on these tranches, PSLF has effectively widened the spread between its financing costs and the yields on its middle-market loan investments.
What makes this particularly notable is that PSLF is retaining the subordinated notes through a consolidated subsidiary, meaning it maintains its position in the higher-yielding equity portion of the CLO structure while reducing costs on the debt tranches. This creates an asymmetric benefit where PSLF reduces costs without sacrificing yield potential.
For PNNT shareholders, this refinancing should translate to improved earnings from their joint venture investment as the reduced financing costs flow through to the bottom line. With PennantPark currently managing approximately
MIAMI, July 23, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the “Company”) (NYSE: PNNT) today announced that PennantPark Senior Loan Fund, LLC (“PSLF”) through PSLF’s wholly-owned and consolidated subsidiary, PennantPark CLO VII, LLC (“CLO VII”) has closed the partial refinancing of its
The partial refinancing of this securitization (the “Debt”) impacted the following tranches:
| Class | Par Amount ($ 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
FAQ
What is the size of PennantPark's (NYSE: PNNT) CLO VII refinancing and what are the new rates?
How much assets does PennantPark Investment Corporation manage in 2025?
What is the expected impact of PNNT's CLO refinancing on the company?
Who are the key partners in PennantPark Senior Loan Fund (PSLF)?
What role did BNP Paribas play in PNNT's CLO transaction?
