PennantPark Floating Rate Capital Ltd. Completes CLO, Marking Continued Growth in PennantPark’s CLO Platform
MIAMI, Feb. 22, 2024 (GLOBE NEWSWIRE) -- 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:
|
| Par Amount |
|
| Expected Rating |
| |||||
| 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.
