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 $316.7 million debt securitization.
The debt issued in this securitization (the "Debt") is structured in the following manner:
Expected
% of Capital Rating Issuance
Class Par Amount Structure Coupon (S&P) Price
3 Mo SOFR +
X Notes $5,000,000 1.6% 1.05% AAA 100.0%
3 Mo SOFR +
A-1-R2 Notes 172,500,000 54.5% 1.51% AAA 100.0%
3 Mo SOFR +
A-2-R2 Notes 13,500,000 4.3% 1.70% AAA 100.0%
3 Mo SOFR +
B-R2 Notes 22,500,000 7.1% 1.90% AA 100.0%
3 Mo SOFR +
C-R2 Notes 19,500,000 6.1% 2.45% A 100.0%
3 Mo SOFR +
D-R2 Notes 18,000,000 5.7% 4.25% BBB- 100.0%
3 Mo SOFR +
E-R2 Notes 18,000,000 5.7% 7.50% BB- N/A
Preferred
Shares 47,700,000 15.0% N/A NR N/A
Total $316,700,000
"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 + 2.31% to SOFR + 1.82%. We were able to reduce the spread on this financing due to strong investor demand which validated our excellent long term track record in lending to the core middle market. PennantPark Investment Advisers, LLC ("PennantPark") currently manages approximately $4 billion in middle-market securitization assets, and we look forward to continued growth of our platform with the support of our current and new investors."
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 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 Placement Agent on the reset transaction.
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 $(KMPR)$, 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 $10 billion of investable capital, including potential 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, Amsterdam, and Zurich. For more information about PennantPark and its affiliates, please go to our website at www.pennantpark.com.
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