PennantPark Floating Rate Capital Ltd. Announces Monthly Distribution of $0.1025 per Share

Rhea-AI Summary

PennantPark Floating Rate Capital (NYSE: PFLT) has announced its monthly distribution for August 2024 of $0.1025 per share, payable on September 3, 2024, to stockholders of record as of August 16, 2024. The distribution is expected to be paid from taxable net investment income. As a regulated investment company (RIC), PFLT generates qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax for non-U.S. stockholders.

PFLT is a business development company primarily investing in U.S. middle-market private companies through floating rate senior secured loans. It is managed by PennantPark Investment Advisers, , a leading middle market credit platform managing $7.7 billion of investable capital.

Positive

• Consistent monthly distribution of $0.1025 per share
• Distribution expected to be paid from taxable net investment income
• Potential tax benefits for non-U.S. stockholders
• Managed by PennantPark Investment Advisers, , which oversees $7.7 billion in investable capital

Negative

• None.

Insights

Financial Analyst

PennantPark Floating Rate Capital's (PFLT) announcement of a $0.1025 monthly distribution is a continuation of its consistent dividend policy. This stability is important for income-focused investors, especially in the current economic climate. The yield stands at approximately 10.5% annually, which is attractive in the BDC sector.

However, investors should note that the distribution is expected to be paid from taxable net investment income, which may impact after-tax returns for some shareholders. The company's focus on floating rate senior secured loans positions it well in a rising interest rate environment, potentially supporting the sustainability of this high yield.

Tax Expert

The tax implications of PFLT's distribution are noteworthy. As a Regulated Investment Company (RIC), PFLT offers potential tax advantages to certain investors. Non-U.S. stockholders may benefit from exemptions on U.S. withholding tax for qualified interest income and short-term capital gains. This can enhance the effective yield for international investors.

However, domestic investors should be aware that the distribution is from taxable net investment income. The company's commitment to providing detailed tax characteristics on Form 1099 and in SEC filings demonstrates transparency, which is important for investors' tax planning.

Market Research Analyst

PFLT's consistent distribution policy reflects stability in its business model, focusing on middle-market private companies. With $7.7 billion of investable capital under management, PennantPark Investment Advisers shows significant scale in the middle market credit space. The company's geographic expansion, with offices across the U.S. and in Amsterdam, suggests a strategy for diversification and growth.

However, investors should monitor the broader economic conditions affecting middle-market companies, as these could impact PFLT's loan portfolio quality and, consequently, its ability to maintain the current distribution level in the long term.

MIAMI, Aug. 02, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the "Company") (NYSE: PFLT) declares its monthly distribution for August 2024 of $0.1025 per share, payable on September 3, 2024 to stockholders of record as of August 16, 2024. The distribution is expected to be paid from taxable net investment income. The final specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company's periodic report filed with the Securities and Exchange Commission.

The Company, which operates as a regulated investment company (“RIC”), generates qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders. The U.S. tax law permits a RIC to report the portion of distributions paid that represents interest-related dividends as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

The specific tax characteristics of this distribution can be found on our website www.pennantpark.com.

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 INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing $7.7 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC 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 Investment Advisers, LLC 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 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.

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 is the August 2024 monthly distribution amount for PennantPark Floating Rate Capital (PFLT)?

PennantPark Floating Rate Capital (PFLT) has declared a monthly distribution of $0.1025 per share for August 2024.

When is the payment date for PFLT's August 2024 distribution?

The August 2024 distribution for PFLT is payable on September 3, 2024.

What is the record date for PFLT's August 2024 distribution?

The record date for PFLT's August 2024 distribution is August 16, 2024.

How much investable capital does PennantPark Investment Advisers, manage?

PennantPark Investment Advisers, manages $7.7 billion of investable capital, including potential leverage.