PennantPark Floating Rate Capital Ltd. Completes CLO, Marking Continued Growth in PennantPark’s CLO Platform
22 Februar 2024 - 10:57PM
PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT)
today announced that it completed a $350.55 million term debt
securitization transaction with a four-year reinvestment period,
twelve-year final maturity in the form of a collateralized loan
obligation (“CLO”).
The debt issued in the CLO (the “ Debt”) is
structured in the following manner:
Class |
Par Amount($ in millions) |
% of Capital Structure |
Coupon |
Expected Rating(S&P) |
Issuance Price |
A-1 Loans |
$60,000,000 |
|
17.1 |
% |
|
3 Mo SOFR + 2.30% |
AAA |
100.0 |
% |
|
A-1 Notes |
139,500,000 |
|
39.8 |
% |
|
3 Mo SOFR + 2.30% |
AAA |
100.0 |
% |
|
A-2 Notes |
14,000,000 |
|
4.0 |
% |
|
3 Mo SOFR + 2.70% |
AAA |
100.0 |
% |
|
B Notes |
24,500,000 |
|
7.0 |
% |
|
3 Mo SOFR + 2.90% |
AA |
100.0 |
% |
|
C Notes |
28,000,000 |
|
8.0 |
% |
|
3 Mo SOFR + 3.90% |
A |
100.0 |
% |
|
D Notes |
21,000,000 |
|
6.0 |
% |
|
3 Mo SOFR + 5.90% |
BBB- |
100.0 |
% |
|
Sub Notes |
63,550,000 |
|
18.1 |
% |
|
|
NR |
NA |
|
Total |
$350,550,000 |
|
|
|
|
|
|
|
|
|
|
|
|
“I am extremely pleased with the pricing and
structure of our latest CLO, which speaks volumes about our track
record and the strength of our investment platform,” said Arthur
Penn, Chief Executive Officer. “The maturity, reinvestment period
and pricing of this financing are attractive and are well matched
to our asset base. With the closing of CLO VIII, PennantPark now
manages approximately $2.5 billion in CLO assets, and we look
forward to continued growth with the support of our current and new
investors.”
PFLT will retain all the subordinated notes
through a consolidated subsidiary. The reinvestment period for the
term debt securitization ends no later than April 2028 and the Debt
is scheduled to mature in April 2036. The term debt securitization
is expected to be approximately 100% funded at close. The proceeds
from the Debt will be used to repay a portion of PFLT’s $386.0
million secured credit facility. In addition, the Company acts as
retention holder in the transaction to retain exposure to the
performance of the securitized assets. GreensLedge Capital Markets
LLC acted as lead placement agent on the CLO 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. The
CLO is a form of secured financing incurred and consolidated by the
Company. 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
INVESTMENT ADVISERS,
LLC
PennantPark Investment Advisers, LLC is a
leading middle-market credit platform, managing approximately $7.0
billion of investable capital, including potential leverage. Since
its inception in 2007, PennantPark Investment Advisers, LLC 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 Investment Advisers, LLC
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) 905-1000www.pennantpark.com
Source: PennantPark Floating Rate Capital Ltd.
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