Welcome to our dedicated page for PennantPark Floating Rate Capital Ltd. news (Ticker: PFLT), a resource for investors and traders seeking the latest updates and insights on PennantPark Floating Rate Capital Ltd. stock.
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 Ltd. (NYSE: PFLT) announced the successful closure of a $297.8 million debt securitization via its wholly-owned subsidiary, PennantPark CLO VI, LLC. This collateralized loan obligation (CLO) features a four-year reinvestment period and a twelve-year final maturity. The debt issuance includes several classes of notes with varying amounts, structures, and expected ratings, underpinning a well-structured financing strategy that highlights the company's ability to navigate a volatile market. CEO Arthur Penn emphasized the strength of their capital position and the potential for growth with ongoing support from investors. Proceeds will partially repay a $325 million credit facility, and the CLO is expected to maintain a nearly 100% funding rate upon closing.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced it will report its second fiscal quarter results on May 10, 2023, after market close. A conference call to discuss these results is scheduled for May 11, 2023, at 9:00 a.m. ET. Interested parties can join by calling toll-free (888) 256-1007 or internationally at (929) 477-0448, referencing conference ID #9075273.
PennantPark primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first and second lien secured debt, and subordinated debt. Managed by PennantPark Investment Advisers, LLC, which oversees $6.1 billion in investable capital, the company aims to provide flexible financing solutions in the middle market.
PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced a monthly distribution of $0.10 per share for April 2023, payable on May 1, 2023, to stockholders of record by April 18, 2023. The distribution will be sourced from taxable net investment income. The Company, acting as a regulated investment company (RIC), primarily invests in U.S. middle-market private companies through floating rate senior secured loans. Furthermore, it offers tax benefits for non-U.S. stockholders under U.S. tax law for specific types of distributions. Detailed tax characteristics of the distribution will be shared in future reports.
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