PennantPark Floating Rate Capital Ltd. Announces Financial Results for the First Quarter Ended December 31, 2024
PennantPark Floating Rate Capital (PFLT) reported financial results for Q1 2024, showing solid performance in both NAV and net investment income. The investment portfolio totaled $2,193.9 million, with net assets of $962.7 million. GAAP net asset value per share increased 0.3% to $11.34.
Key highlights include net investment income of $30.0 million ($0.37 per share), core net investment income of $0.33 per share, and distributions declared of $0.31 per share. The portfolio consisted of 159 companies with a weighted average yield on debt investments of 10.6%. The company invested $606.9 million in new and existing portfolio companies during the quarter.
PFLT and its joint venture partner agreed to invest an additional $100 million in PSSL, expanding total investment capacity to $1.5 billion. The company also priced a new $361 million securitization financing with a weighted average spread of 1.59%, expected to close by early March 2025.
PennantPark Floating Rate Capital (PFLT) ha riportato i risultati finanziari per il primo trimestre del 2024, mostrando una solida performance sia nel NAV che nel reddito netto da investimenti. Il portafoglio d'investimento ha totalizzato 2.193,9 milioni di dollari, con un patrimonio netto di 962,7 milioni di dollari. Il valore netto dell'attivo per azione secondo GAAP è aumentato dello 0,3% a 11,34 dollari.
I punti salienti includono un reddito netto da investimenti di 30,0 milioni di dollari (0,37 dollari per azione), un reddito netto da investimenti core di 0,33 dollari per azione, e distribuzioni dichiarate di 0,31 dollari per azione. Il portafoglio era composto da 159 aziende con un rendimento medio ponderato sugli investimenti in debito del 10,6%. L'azienda ha investito 606,9 milioni di dollari in nuove e già esistenti aziende del portafoglio durante il trimestre.
PFLT e il suo partner in joint venture hanno concordato di investire ulteriori 100 milioni di dollari in PSSL, espandendo la capacità totale di investimento a 1,5 miliardi di dollari. L'azienda ha anche stabilito i termini per un nuovo finanziamento di cartolarizzazione da 361 milioni di dollari con uno spread medio ponderato dell'1,59%, che ci si aspetta chiuda entro inizio marzo 2025.
PennantPark Floating Rate Capital (PFLT) reportó resultados financieros para el primer trimestre de 2024, mostrando un sólido desempeño tanto en NAV como en ingresos netos por inversiones. La cartera de inversiones totalizó $2,193.9 millones, con activos netos de $962.7 millones. El valor neto de los activos por acción según GAAP aumentó un 0.3% a $11.34.
Los aspectos destacados incluyen ingresos netos por inversión de $30.0 millones ($0.37 por acción), ingresos netos por inversión central de $0.33 por acción y distribuciones declaradas de $0.31 por acción. La cartera consistió en 159 empresas con un rendimiento promedio ponderado en inversiones de deuda del 10.6%. La empresa invirtió $606.9 millones en nuevas y existentes empresas de la cartera durante el trimestre.
PFLT y su socio de joint venture acordaron invertir $100 millones adicionales en PSSL, ampliando la capacidad total de inversión a $1.5 mil millones. La empresa también fijó un nuevo financiamiento de securitización de $361 millones con un spread promedio ponderado del 1.59%, que se espera cierre a principios de marzo de 2025.
PennantPark Floating Rate Capital (PFLT)는 2024년 1분기 재무 결과를 보고하며, NAV와 순 투자 수익 모두에서 견고한 성과를 보였습니다. 투자 포트폴리오는 $2,193.9 백만에 이르며, 순 자산은 9억 6,270만 달러입니다. GAAP 기준 주당 순 자산 가치는 0.3% 증가하여 $11.34로 나타났습니다.
주요 하이라이트에는 순 투자 수익 $30.0 백만 ($0.37 주당), 핵심 순 투자 수익 $0.33 주당, 그리고 주당 $0.31로 선언된 배당금이 포함됩니다. 포트폴리오는 159개 회사로 구성되어 있으며, 부채 투자에 대한 가중 평균 수익률은 10.6%입니다. 회사는 분기 동안 신규 및 기존 포트폴리오 회사에 6억 6090만 달러를 투자했습니다.
PFLT와 공동 투자 파트너는 PSSL에 추가로 1억 달러를 투자하기로 합의했으며, 총 투자 용량을 15억 달러로 확대했습니다. 또한, 회사는 가중 평균 스프레드 1.59%인 3억 6100만 달러 규모의 새로운 증권화 금융을 설정했으며, 이는 2025년 3월 초까지 마감될 것으로 예상됩니다.
PennantPark Floating Rate Capital (PFLT) a publié ses résultats financiers pour le premier trimestre 2024, montrant de solides performances à la fois dans le NAV et dans le revenu net d'investissement. Le portefeuille d'investissement a atteint 2,193.9 millions de dollars, avec des actifs nets de 962,7 millions de dollars. La valeur nette des actifs par action selon les normes GAAP a augmenté de 0,3 % pour atteindre 11,34 dollars.
Les points clés incluent un revenu net d'investissement de 30,0 millions de dollars (0,37 dollars par action), un revenu net d'investissement principal de 0,33 dollars par action et des distributions déclarées de 0,31 dollars par action. Le portefeuille se composait de 159 entreprises avec un rendement moyen pondéré des investissements en dette de 10,6 %. L'entreprise a investi 606,9 millions de dollars dans de nouvelles et existantes entreprises du portefeuille au cours du trimestre.
PFLT et son partenaire en coentreprise ont convenu d'investir 100 millions de dollars supplémentaires dans PSSL, augmentant la capacité d'investissement totale à 1,5 milliard de dollars. L'entreprise a également fixé un nouveau financement de titrisation de 361 millions de dollars avec un écart moyen pondéré de 1,59 %, qui devrait se clôturer début mars 2025.
PennantPark Floating Rate Capital (PFLT) hat die finanziellen Ergebnisse für das erste Quartal 2024 veröffentlicht und dabei eine solide Leistung sowohl im NAV als auch im Nettoinvestitionseinkommen gezeigt. Das Investitionsportfolio belief sich auf 2.193,9 Millionen Dollar, mit einem Nettovermögen von 962,7 Millionen Dollar. Der GAAP-Nettowert pro Aktie stieg um 0,3 % auf 11,34 Dollar.
Wichtige Highlights sind ein Nettoinvestitionseinkommen von 30,0 Millionen Dollar (0,37 Dollar pro Aktie), ein Kern-Nettoinvestitionseinkommen von 0,33 Dollar pro Aktie und erklärte Ausschüttungen von 0,31 Dollar pro Aktie. Das Portfolio bestand aus 159 Unternehmen mit einer gewichteten durchschnittlichen Rendite von 10,6 % auf Schuldeninvestitionen. Das Unternehmen investierte 606,9 Millionen Dollar in neue und bestehende Portfoliounternehmen während des Quartals.
PFLT und sein Joint-Venture-Partner haben zugestimmt, zusätzlich 100 Millionen Dollar in PSSL zu investieren, wodurch die gesamte Investitionskapazität auf 1,5 Milliarden Dollar erweitert wird. Das Unternehmen hat auch eine neue Verbriefungsfinanzierung in Höhe von 361 Millionen Dollar mit einem gewichteten Durchschnittsspread von 1,59 % festgelegt, die voraussichtlich Anfang März 2025 abgeschlossen wird.
- Net investment income increased to $30.0 million ($0.37 per share) from $19.4 million ($0.33 per share) YoY
- Portfolio expansion with $606.9 million invested in new and existing companies
- Credit facility upsized to $736 million from $636 million
- Joint venture expansion adding $100 million capacity to PSSL
- Low non-accrual rate at 0.4% of portfolio cost
- Net unrealized depreciation increased to $40.4 million from $11.4 million
- Weighted average yield on debt investments decreased to 10.6% from 11.5%
- Higher debt-related expenses at $22.4 million vs $8.9 million YoY
Insights
PennantPark's Q1 FY2025 results demonstrate robust portfolio growth and strategic positioning in the middle market lending space. The 54.4% year-over-year increase in net investment income to
Three key developments merit particular attention:
- The portfolio's exceptional credit quality, with non-accruals at just
0.4% by cost, significantly outperforms industry averages and indicates strong underwriting standards. - The new
$361 million securitization financing with a1.59% weighted average spread represents a30 basis point improvement over previous terms, potentially enhancing future earnings. - The PSSL joint venture expansion adds
$500 million in investment capacity, reaching$1.5 billion total capacity, which should drive meaningful income growth through this higher-yielding structure.
The company's 100% variable-rate debt portfolio positions it favorably in the current rate environment, while the increased leverage capacity through the upsized
The strategic focus on first lien secured debt (
MIAMI, Feb. 10, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the first quarter ended December 31, 2024.
HIGHLIGHTS
Quarter ended December 31, 2024 (Unaudited)
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||
| Investment portfolio (1) | $ | 2,193.9 | ||
| Net assets | $ | 962.7 | ||
| GAAP net asset value per share | $ | 11.34 | ||
| Quarterly increase in GAAP net asset value per share | 0.3 | % | ||
| Adjusted net asset value per share (2) | $ | 11.34 | ||
| Quarterly increase in adjusted net asset value per share (2) | 0.3 | % | ||
| Credit Facility | $ | 608.8 | ||
| 2036 Asset-Backed Debt | $ | 284.2 | ||
| 2036-R Asset Backed Debt | $ | 265.3 | ||
| 2026 Notes | $ | 184.0 | ||
| Regulatory debt to equity | 1.40x | |||
| Weighted average yield on debt investments at quarter-end | 10.6 | % | ||
| Operating Results: | ||||
| Net investment income | $ | 30.0 | ||
| Net investment income per share (GAAP) | $ | 0.37 | ||
| Core net investment income per share (3) | $ | 0.33 | ||
| Distributions declared per share | $ | 0.31 | ||
| Portfolio Activity: | ||||
| Purchases of investments | $ | 606.9 | ||
| Sales and repayments of investments | $ | 401.3 | ||
| PSSL Portfolio data: | ||||
| PSSL investment portfolio | $ | 1,046.2 | ||
| Purchases of investments | $ | 224.9 | ||
| Sales and repayments of investments | $ | 86.6 | ||
- Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling
$286.6 million , at fair value. - This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of the unrealized amounts on the Credit Facility. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
- Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended December 31, 2024, Core NII excluded: i)
$3.8m of accelerated amortization income from the early repayment of a loan and ii)$0.8m of incentive fee expense.
CONFERENCE CALL AT 9:00 A.M. ET ON FEBRUARY 11, 2025
The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday February 11, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (929) 477-0402. All callers should reference conference ID #1777320 or PennantPark Floating Rate Capital Ltd. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased to have another quarter of solid performance from both an NAV and net investment income perspective. We are actively investing in this excellent vintage of new core middle market loans,” said Art Penn, Chairman and CEO. “Through the growing balance sheets of PFLT and our PSSL joint venture, we are driving meaningfully increased income.”
As of December 31, 2024, our portfolio totaled
As of September 30, 2024, our portfolio totaled
For the three months ended December 31, 2024, we invested
PennantPark Senior Secured Loan Fund I LLC
The Company and its joint venture partner jointly agreed to invest an additional
As of December 31, 2024, PSSL’s portfolio totaled
For the three months ended December 31, 2024, PSSL invested
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three months ended December 31, 2024 and 2023.
Investment Income
For the three months ended December 31, 2024 investment income was
Expenses
For the three months ended December 31, 2024, expenses totaled
Net Investment Income
For the three months ended December 31, 2024 and 2023, net investment income totaled
Net Realized Gains or Losses
For the three months ended December 31, 2024 and 2023, net realized gains (losses) totaled
Unrealized Appreciation or Depreciation on Investments and Debt
For the three months ended December 31, 2024 and 2023, we reported net change in unrealized appreciation (depreciation) on investments of
For the three months ended December 31, 2024 and 2023, our Credit Facility had a net change in unrealized appreciation (depreciation) of
Net Change in Net Assets Resulting from Operations
For the three months ended December 31, 2024 and 2023, net increase (decrease) in net assets resulting from operations totaled
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments, and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
The multi-currency Credit Facility with affiliates of Truist Bank, or the Lenders, was upsized during the quarter to
For the three months ended December 31, 2024 and 2023, the annualized weighted average cost of debt, inclusive of the fee on the undrawn commitment on the Credit Facility, amendment costs and debt issuance costs, was
As of December 31, 2024 and September 30, 2024, we had cash equivalents of
For the three months ended December 31, 2024, our operating activities used cash of
For the three months ended December 31, 2023, our operating activities used cash of
DISTRIBUTIONS
During the three months ended December 31, 2024 we declared distributions of
RECENT DEVELOPMENTS
In February 2025, the Company priced a new securitization financing that is expected to close by early March. The new financing is a
Securitization financing continues to be a good match for our lower risk first lien assets. We believe securitizations are attractive financing structures as they have a 12 year stated maturity and generally have 4 to 5 year reinvestment periods. The securitization financings are governed by an indenture similar to other bond instruments which prescribes how the securitization deals with credit deterioration, which means there is no risk of unpredictable behavior from the counterparties. In addition, securitizations are non mark to market financings regardless of broader market volatility. The only time an asset gets marked to market would be if there are defaults or if we experience CCC downgrades that would cause an excess CCC concentration, whereby only the excess CCC collateral is marked to market. The securitizations provide an attractive cost of capital that is well matched to the portfolio and provide a downside mitigation tool given the stable and consistent long-term nature of the financing.
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC, and stockholders may find such report on its website at www.pennantpark.com.
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share data) | ||||||||
| December 31, 2024 | September 30, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 1,907,349 | $ | 1,632,269 | ||||
| Controlled, affiliated investments (amortized cost— | 286,561 | 351,235 | ||||||
| Total investments (amortized cost— | 2,193,910 | 1,983,504 | ||||||
| Cash and cash equivalents (cost— | 102,262 | 112,050 | ||||||
| Interest receivable | 13,024 | 12,167 | ||||||
| Receivables from investments sold | 29,090 | — | ||||||
| Distributions receivable | 577 | 635 | ||||||
| Due from affiliate | 312 | 291 | ||||||
| Prepaid expenses and other assets | 5,026 | 198 | ||||||
| Total assets | 2,344,201 | 2,108,845 | ||||||
| Liabilities | ||||||||
| Credit Facility payable, at fair value (cost— | 608,791 | 443,880 | ||||||
| 2026 Notes payable, net (par— | 184,026 | 183,832 | ||||||
| 2036 Asset-Backed Debt, net (par— | 284,222 | 284,086 | ||||||
| 2036-R Asset-Backed Debt, net (par- | 265,268 | 265,235 | ||||||
| Payable for investments purchased | 471 | 20,363 | ||||||
| Interest payable on debt | 13,318 | 14,645 | ||||||
| Distributions payable | 8,698 | 7,834 | ||||||
| Base management fee payable | 5,264 | 4,588 | ||||||
| Incentive fee payable | 7,492 | 3,189 | ||||||
| Accounts payable and accrued expenses | 2,920 | 2,187 | ||||||
| Deferred tax liability | 1,080 | 1,712 | ||||||
| Total liabilities | 1,381,550 | 1,231,551 | ||||||
| Net assets | ||||||||
| Common stock, 84,855,896 and 77,579,896 shares issued and outstanding, respectively Par value | 85 | 78 | ||||||
| Paid-in capital in excess of par value | 1,058,949 | 976,744 | ||||||
| Accumulated deficit | (96,383 | ) | (99,528 | ) | ||||
| Total net assets | $ | 962,651 | $ | 877,294 | ||||
| Total liabilities and net assets | $ | 2,344,201 | $ | 2,108,845 | ||||
| Net asset value per share | $ | 11.34 | $ | 11.31 | ||||
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) | ||||||||
| Three Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Investment income: | ||||||||
| From non-controlled, non-affiliated investments: | ||||||||
| Interest | $ | 47,463 | $ | 23,768 | ||||
| Dividend | 577 | 508 | ||||||
| Other income | 1,480 | 1,763 | ||||||
| From controlled, affiliated investments: | ||||||||
| Interest | 12,808 | 8,434 | ||||||
| Dividend | 4,375 | 3,500 | ||||||
| Other income | 306 | — | ||||||
| Total investment income | 67,009 | 37,973 | ||||||
| Expenses: | ||||||||
| Interest and expenses on debt | 22,361 | 8,942 | ||||||
| Performance-based incentive fee | 7,492 | 4,863 | ||||||
| Base management fee | 5,264 | 2,951 | ||||||
| General and administrative expenses | 1,200 | 988 | ||||||
| Administrative services expenses | 500 | 626 | ||||||
| Expenses before provision for taxes and financing costs | 36,817 | 18,370 | ||||||
| Provision for taxes on net investment income | 225 | 154 | ||||||
| Total expenses | 37,042 | 18,524 | ||||||
| Net investment income | 29,967 | 19,449 | ||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Non-controlled, non-affiliated investments | 1,181 | (3,089 | ) | |||||
| Non-controlled and controlled, affiliated investments | 25,493 | — | ||||||
| Provision for taxes on realized gain on investments | (73 | ) | — | |||||
| Net realized gain (loss) on investments | 26,601 | (3,089 | ) | |||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||
| Non-controlled, non-affiliated investments | 2,943 | 5,228 | ||||||
| Controlled and non-controlled, affiliated investments | (31,904 | ) | 943 | |||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | 632 | — | ||||||
| Debt appreciation (depreciation) | 90 | (62 | ) | |||||
| Net change in unrealized appreciation (depreciation) on investments and debt | (28,239 | ) | 6,109 | |||||
| Net realized and unrealized gain (loss) from investments and debt | (1,638 | ) | 3,020 | |||||
| Net increase (decrease) in net assets resulting from operations | $ | 28,329 | $ | 22,469 | ||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.35 | $ | 0.38 | ||||
| Net investment income per common share | $ | 0.37 | $ | 0.33 | ||||
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market 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 INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing
FORWARD-LOOKING STATEMENTS AND OTHER
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 of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or 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 we file 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.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
| CONTACT: | Richard T. Allorto, Jr. |
| PennantPark Floating Rate Capital Ltd. | |
| (212) 905-1000 | |
| www.pennantpark.com |
FAQ
What was PFLT's net investment income per share for Q1 2024?
How much did PFLT invest in new and existing portfolio companies in Q1 2024?
What is the size of PFLT's investment portfolio as of December 31, 2024?
What was PFLT's quarterly dividend distribution for Q1 2024?
What is PFLT's new securitization financing amount and spread?
