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MIAMI, July 26, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that PennantPark CLO I, Ltd (“CLO I”), a wholly-owned and consolidated subsidiary of the Company, has closed the refinancing and upsize of a four-year reinvestment period, twelve-year final maturity $351.0 million debt securitization 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 | % of Capital | Coupon | Expected Rating | Issuance | ||||
| A-1-R Notes | $ | 203,000,000 |
| 57.8 | % | 3 Mo SOFR + 1.75% | AAA | 100.0 | % |
| A-2-R Notes |
| 10,500,000 |
| 3.0 | % | 3 Mo SOFR + 1.90% | AAA | 100.0 | % |
| B-R Notes |
| 12,000,000 |
| 3.4 | % | 3 Mo SOFR + 2.05% | AA | 100.0 | % |
| B-R Loans |
| 12,500,000 |
| 3.6 | % | 3 Mo SOFR + 2.05% | AA | 100.0 | % |
| C-R Notes |
| 28,000,000 |
| 8.0 | % | 3 Mo SOFR + 2.75% | A | 100.0 | % |
| D-R Notes |
| 21,000,000 |
| 6.0 | % | 3 Mo SOFR + 4.30% | BBB- | 100.0 | % |
| Subordinated Notes |
| 64,000,000 |
| 18.2 | % | N/A | NR | N/A | |
| Total | $ | 351,000,000 |
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“We are pleased to have completed this reset which enables us to optimize financing costs in the current market and enhance our return profile, reinforcing our commitment to deliver sustained value for our investors,” said Arthur Penn, Chief Executive Officer of the Company. “Not only were we able to reduce our cost of capital but we also were able to increase the size of the CLO due to strong investor demand to better match the underlying growth in PFLT. PennantPark currently manages approximately $2.8 billion in middle market CLO assets, and we look forward to continued growth with the support of our current and new investors.”
PFLT will continue to retain the Class D-R Notes and the Subordinated Notes through a consolidated subsidiary. The maturity of the replacement Debt is now extended to July 2036. The replacement Debt was 100% funded at closing. In addition, PFLT 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 structurer and lead arranger, and NatWest Markets Securities Inc. acted as co-placement agent on the CLO refinancing 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 PFLT. 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.