PennantPark Floating Rate Capital Ltd. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) has initiated a primary offering of 4 million shares at $12.40 each, aiming for gross proceeds of approximately $49.6 million. The offering, slated to close on August 11, 2022, includes a 30-day option for underwriters to purchase an additional 600,000 shares. Proceeds will be utilized for debt reduction, investments in portfolio companies, and general corporate purposes. The offering is managed by major financial institutions including Morgan Stanley and Goldman Sachs.

Positive

• Gross proceeds of approximately $49.6 million from the offering.
• Intended use of funds for debt reduction and investments, potentially enhancing financial stability and growth.

Negative

• Potential shareholder dilution from the additional 600,000 shares option for underwriters.

MIAMI, Aug. 08, 2022 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) (TASE: PFLT), a business development company (the “Company”), today announced that it has priced an underwritten primary offering of 4,000,000 shares of its common stock at a public offering price of $12.40 per share pursuant to the Company’s shelf registration statement, which was filed with, and has been declared effective by, the Securities and Exchange Commission (the “Commission”), which will result in gross proceeds to the Company of approximately $49.6 million, before deducting underwriting commission and discounts and estimated offering expenses. In addition, in connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of common stock. The offering is expected to close on August 11, 2022, subject to customary closing conditions.

The Company expects to use the net proceeds from the offering to reduce outstanding obligations under its existing indebtedness, to invest in new or existing portfolio companies, to capitalize a subsidiary or new joint venture or for other general corporate or strategic purposes.

Morgan Stanley, Goldman Sachs & Co. LLC, J.P. Morgan, Keefe, Bruyette & Woods, A Stifel Company, RBC Capital Markets, LLC and Truist Securities are serving as joint book-running managers for the offering. Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., Maxim Group LLC and Comerica Securities, Inc. are serving as co-managers for the offering.

Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement, dated August 8, 2022 and the accompanying prospectus, dated January 29, 2020, which have been filed with the Commission, contain this and other information about the Company and should be read carefully before investing.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the shares referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained from the joint book-running managers at: Morgan Stanley & Co. LLC, Attn. Prospectus Department, 180 Varick Street, New York, NY 10014; Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717; Keefe, Bruyette & Woods, Inc., 787 Seventh Avenue, 4th Floor, New York, NY 10019; RBC Capital Markets, LLC, 200 Vesey Street, New York, NY 10281; and Truist Securities, Inc., 3333 Peachtree Road NE, Atlanta, GA 30326.

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.
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About PennantPark Investment Advisers, LLC

PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing approximately $6.0 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, and Los Angeles.

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 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 as well as changes in the economy and risks associated with possible disruption in the Company’s operations or the economy generally due to terrorism, natural disasters or pandemics such as COVID-19. 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.

Contacts

Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000

FAQ

What is the purpose of the share offering by PFLT?

The share offering aims to raise funds for debt reduction, investments in portfolio companies, and general corporate purposes.

How many shares are being offered by PFLT?

PFLT is offering 4 million shares, with a possibility of an additional 600,000 shares.

What is the price per share for the PFLT offering?

The shares are priced at $12.40 each.

When is the closing date for PFLT's offering?

The offering is expected to close on August 11, 2022.

Who are the managers for the PFLT share offering?

The offering is managed by Morgan Stanley, Goldman Sachs, and other financial institutions.