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PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) is a closed-end, externally managed, non-diversified investment company that specializes in generating current income and capital appreciation. The company's core focus is investing in Floating Rate Loans and other investments made to U.S. middle-market companies. These loans offer an appealing risk-reward ratio for investors due to the limited capital available for such companies and the potential for rising interest rates.
Founded in 2007 and led by Arthur Penn, PennantPark Investment Advisers manages approximately $2.1 billion across its publicly-listed business development companies and private vehicles for institutional limited partners. The senior team at PennantPark has deep individual experience and a long-standing history of collaboration. As of June 30, 2023, PFLT’s portfolio totaled $1,105.3 million, consisting of $950.2 million in first lien secured debt, $0.1 million in second lien secured debt, and $154.9 million in preferred and common equity. The debt portfolio is 100% variable-rate, which provides a hedge against interest rate fluctuations.
PFLT generates revenue primarily through interest income on debt securities and dividends. For the three months ended June 30, 2023, PFLT reported an investment income of $37.7 million and a net investment income of $18.5 million. Recent developments include the issuance of 5,805,484 shares of common stock through the ATM Program, raising $64.1 million in net proceeds.
The company's portfolio includes investments in 130 companies with an average investment size of $8.5 million and a weighted average yield on debt investments of 12.4%. PFLT has also managed to maintain a low percentage of non-accrual portfolio companies, representing just 1% on a cost basis and zero percent on a fair value basis as of June 30, 2023.
Recent news highlights include financial results for the third quarter ended June 30, 2023, and announcements about new investments and portfolio adjustments. The company's commitment to providing flexible capital solutions to U.S. middle-market companies underscores its significance in the investment landscape.
PennantPark Floating Rate Capital (PFLT) announced that its joint venture, PennantPark Senior Secured Loan Fund I (PSSL), via its subsidiary PennantPark CLO II, , has completed a $300.7 million refinancing of a collateralized loan obligation (CLO). The deal includes a four-year reinvestment period and twelve-year maturity. The debt is structured across various tranches with different interest rates and ratings. PennantPark aims to lower the cost of capital and enhance its platform's capital strength. CEO Arthur Penn highlighted the $2.8 billion in managed CLO middle market assets and future growth potential. PSSL will retain the Preferred Shares and Class E-R Notes, and Capital One Securities acted as the Lead Placement Agent, with GreensLedge Capital Markets as Co-Placement Agent.
PennantPark Floating Rate Capital reported financial results for Q2 2024, with net assets of $720.7 million and a net asset value per share of $11.40, a 1.8% increase. The company's investment portfolio totaled $1,477.9 million, with a weighted average yield on debt investments of 12.3%. Net investment income per share was $0.31. The company declared distributions of $0.31 per share. PSSL investment portfolio stood at $869.7 million with a weighted average yield on debt investments of 12.0%. For Q2 2024, investment income was $44.4 million, expenses were $25.3 million, and net investment income was $19.1 million. Net change in net assets from operations was $31.1 million.
PennantPark Floating Rate Capital (NYSE: PFLT) announces a monthly distribution of $0.1025 per share for May 2024, payable on June 3, 2024. The distribution is expected to be paid from taxable net investment income. The Company operates as a regulated investment company and may offer tax benefits to non-U.S. stockholders. The specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the calendar year. PennantPark Floating Rate Capital primarily invests in U.S. middle-market private companies through various debt instruments and is managed by PennantPark Investment Advisers,
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