PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes the Refinancing of $300.7 Million CLO, Marking Continued Support of PennantPark’s Middle Market CLO Platform
May 21 2024 - 4:40PM
PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT)
today 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 refinancing of a
four-year reinvestment period, twelve-year final maturity $300.7
million debt securitization in the form of a collateralized loan
obligation (“CLO”).
The debt issued in the CLO (the “Debt”) is
structured in the following manner:
Class |
Par Amount($ in millions) |
% of Capital Structure |
Coupon |
Expected Rating(S&P) |
Issuance Price |
A-1-R Loans |
$103,000,000 |
34.3% |
3 Mo SOFR + 1.93% |
AAA |
100.0% |
A-1-R Notes |
71,000,000 |
23.6% |
3 Mo SOFR + 1.93% |
AAA |
100.0% |
A-2-R Notes |
5,000,000 |
1.7% |
3 Mo SOFR + 2.20% |
AAA |
100.0% |
B-R Notes |
25,000,000 |
8.3% |
3 Mo SOFR + 2.35% |
AA |
100.0% |
C-R Notes |
24,000,000 |
8.0% |
3 Mo SOFR + 3.10% |
A |
100.0% |
D-R Notes |
18,000,000 |
6.0% |
3 Mo SOFR + 4.95% |
BBB- |
100.0% |
E-R Notes |
18,000,000 |
6.0% |
3 Mo SOFR + 7.50% |
BB- |
N/A |
Preferred Shares |
36,700,000 |
12.1% |
N/A |
NR |
N/A |
Total |
$300,700,000 |
|
|
|
|
“Our track record and high quality loan
portfolio have combined to create a market-leading cost of capital
for our platform and a lower cost of debt capital for PFLT and
PSSL,” said Arthur Penn, Chief Executive Officer. “We are
particularly pleased to enhance the strong capital position of our
platform and to participate in today’s excellent vintage of
opportunities. PennantPark currently manages approximately $2.8
billion in CLO middle market assets, and we look forward to
continued growth with the support of our current and new
investors.”
PSSL will continue to retain the Preferred
Shares and Class E-R Notes through a consolidated subsidiary. The
maturity of the replacement Debt is now extended to April 2036. 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. Capital One Securities, Inc. acted as the
Initial Purchaser and Lead Placement Agent, and GreensLedge Capital
Markets LLC 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
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 (NYSE: 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 is a leading middle market credit
platform, managing approximately $7.5 billion of investable
capital, including available 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 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
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