PennantPark Floating Rate Capital Ltd. Closes New Securitization, Substantially Lowering Borrowing Costs
PennantPark Floating Rate Capital (PFLT) has completed a $474.6 million term debt securitization through a collateralized loan obligation (CLO) with a four-year reinvestment period and twelve-year final maturity. The transaction features a weighted average spread of 159 basis points on $361 million of financing, representing a 66-basis point reduction from the previous bank facility.
This marks PFLT's lowest spread debt financing in its 14-year history. The company has expanded its investor base to over 75 unique investors across its securitization platform. The reinvestment period ends in April 2029, with debt maturity scheduled for April 2037. The term debt securitization is expected to be approximately 100% funded at close, with PFLT retaining the Class D Notes and Subordinated Notes.
PennantPark Investment Advisers currently manages approximately $3.7 billion in CLO assets. GreensLedge Capital Markets served as lead placement agent for the transaction.
PennantPark Floating Rate Capital (PFLT) ha completato una cartolarizzazione di debito a termine di 474,6 milioni di dollari attraverso un'obbligazione garantita da prestiti (CLO) con un periodo di reinvestimento di quattro anni e una scadenza finale di dodici anni. La transazione presenta uno spread medio ponderato di 159 punti base su 361 milioni di dollari di finanziamento, rappresentando una riduzione di 66 punti base rispetto alla precedente struttura bancaria.
Questo segna il finanziamento di debito con il più basso spread nella storia di 14 anni di PFLT. L'azienda ha ampliato la propria base di investitori a oltre 75 investitori unici all'interno della sua piattaforma di cartolarizzazione. Il periodo di reinvestimento termina nell'aprile 2029, con la scadenza del debito prevista per aprile 2037. Si prevede che la cartolarizzazione del debito a termine sarà finanziata per circa il 100% al momento della chiusura, con PFLT che trattiene le Note di Classe D e le Note Subordinate.
PennantPark Investment Advisers gestisce attualmente circa 3,7 miliardi di dollari in attività CLO. GreensLedge Capital Markets ha svolto il ruolo di agente di collocamento principale per la transazione.
PennantPark Floating Rate Capital (PFLT) ha completado una titulización de deuda a término de 474.6 millones de dólares a través de una obligación de préstamo colateralizado (CLO) con un período de reinversión de cuatro años y un vencimiento final de doce años. La transacción cuenta con un diferencial promedio ponderado de 159 puntos básicos sobre 361 millones de dólares de financiamiento, lo que representa una reducción de 66 puntos básicos respecto a la anterior línea de crédito bancaria.
Este es el financiamiento de deuda con el diferencial más bajo en los 14 años de historia de PFLT. La empresa ha ampliado su base de inversores a más de 75 inversores únicos en su plataforma de titulización. El período de reinversión finaliza en abril de 2029, con el vencimiento de la deuda programado para abril de 2037. Se espera que la titulización de deuda a término esté aproximadamente financiada al 100% al cierre, con PFLT reteniendo las Notas Clase D y las Notas Subordinadas.
PennantPark Investment Advisers actualmente gestiona aproximadamente 3.7 mil millones de dólares en activos CLO. GreensLedge Capital Markets actuó como agente de colocación principal para la transacción.
PennantPark Floating Rate Capital (PFLT)는 4년의 재투자 기간과 12년의 최종 만기를 가진 담보 대출 의무(CLO)를 통해 4억 7460만 달러 규모의 기한부 채무 증권화를 완료했습니다. 이 거래는 3억 6100만 달러의 금융에 대해 159bp의 가중 평균 스프레드를 특징으로 하며, 이는 이전 은행 시설에 비해 66bp 감소한 것입니다.
이것은 PFLT의 14년 역사에서 가장 낮은 스프레드의 채무 금융을 나타냅니다. 회사는 증권화 플랫폼을 통해 75명 이상의 독특한 투자자로 투자자 기반을 확장했습니다. 재투자 기간은 2029년 4월에 종료되며, 채무 만기는 2037년 4월로 예정되어 있습니다. 기한부 채무 증권화는 마감 시점에 약 100% 자금이 조달될 것으로 예상되며, PFLT는 D 클래스 노트와 후순위 노트를 보유하게 됩니다.
PennantPark Investment Advisers는 현재 약 37억 달러의 CLO 자산을 관리하고 있습니다. GreensLedge Capital Markets는 이 거래의 주요 배치 에이전트로 활동했습니다.
PennantPark Floating Rate Capital (PFLT) a complété une titrisation de dette à terme de 474,6 millions de dollars par le biais d'une obligation de prêt garantie (CLO) avec une période de réinvestissement de quatre ans et une échéance finale de douze ans. La transaction présente un écart moyen pondéré de 159 points de base sur 361 millions de dollars de financement, représentant une réduction de 66 points de base par rapport à l'ancienne facilité bancaire.
Ceci marque le financement de dette avec l'écart le plus bas dans les 14 ans d'histoire de PFLT. L'entreprise a élargi sa base d'investisseurs à plus de 75 investisseurs uniques au sein de sa plateforme de titrisation. La période de réinvestissement se termine en avril 2029, avec une échéance de la dette prévue pour avril 2037. La titrisation de la dette à terme devrait être financée à environ 100 % au moment de la clôture, PFLT conservant les Notes de Classe D et les Notes Subordonnées.
PennantPark Investment Advisers gère actuellement environ 3,7 milliards de dollars d'actifs CLO. GreensLedge Capital Markets a agi en tant qu'agent de placement principal pour la transaction.
PennantPark Floating Rate Capital (PFLT) hat eine Schuldtitelverbriefung in Höhe von 474,6 Millionen Dollar durch eine besicherte Kreditverpflichtung (CLO) abgeschlossen, die eine vierjährige Reinvestitionsperiode und eine endgültige Laufzeit von zwölf Jahren umfasst. Die Transaktion weist einen gewichteten durchschnittlichen Spread von 159 Basispunkten auf 361 Millionen Dollar Finanzierung auf, was eine Reduzierung um 66 Basispunkte im Vergleich zur vorherigen Bankfinanzierung darstellt.
Dies markiert die niedrigste Spread-Schuldfinanzierung in der 14-jährigen Geschichte von PFLT. Das Unternehmen hat seine Investorenbasis auf über 75 einzigartige Investoren innerhalb seiner Verbriefungsplattform erweitert. Die Reinvestitionsperiode endet im April 2029, und die Fälligkeit der Schulden ist für April 2037 geplant. Es wird erwartet, dass die Schuldtitelverbriefung zum Zeitpunkt des Abschlusses zu etwa 100 % finanziert ist, wobei PFLT die Class D Notes und die nachrangigen Notes behält.
PennantPark Investment Advisers verwaltet derzeit etwa 3,7 Milliarden Dollar an CLO-Vermögenswerten. GreensLedge Capital Markets fungierte als Hauptplatzierungsagent für die Transaktion.
- Secured lowest borrowing cost in company history with 159 basis points spread
- 66-basis point reduction in financing costs compared to previous facility
- Expanded investor base to over 75 unique investors
- Largest securitization to date at $474.6 million
- 100% funding expected at close
- None.
Insights
This CLO transaction marks a pivotal moment for PennantPark Floating Rate Capital, representing a sophisticated optimization of their capital structure that will drive meaningful bottom-line improvements. The 66 basis point reduction in borrowing costs on
The transaction's structure offers several strategic advantages. The four-year reinvestment period through 2029 provides operational flexibility to manage the portfolio through market cycles, while the 2037 maturity ensures long-term financing stability. This extended timeline is particularly valuable in the middle market lending space, where investment opportunities can be cyclical and having committed capital is crucial.
The expansion to over 75 unique investors in their securitization platform is a strong vote of confidence in PFLT's investment strategy and risk management capabilities. This broader investor base not only provides more stable funding but also potentially creates opportunities for future financing at attractive terms. The successful placement of their largest securitization to date, combined with achieving their lowest cost of capital, demonstrates strong market recognition of their credit selection and portfolio management capabilities.
The retention of Class D Notes and Subordinated Notes shows skin in the game, aligning management's interests with investors while potentially capturing additional yield from these riskier tranches. With approximately
MIAMI, Feb. 21, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that it completed a
The debt issued in this securitization transaction (the “ Debt”) is structured in the following manner:
Class | Par Amount ($ in millions) | % of Capital Structure | Coupon | Expected Rating (S&P) | Issuance Price | |||
| A-1L-A Loans | $ | 10,000,000 | 2.1 | % | 3 Mo SOFR + | AAA | 100.0 | % |
| A-1L-B Loans | 45,000,000 | 9.5 | % | 3 Mo SOFR + | AAA | 100.0 | % | |
| A-1 Notes | 220,500,000 | 46.5 | % | 3 Mo SOFR + | AAA | 100.0 | % | |
| A-2 Notes | 19,000,000 | 4.0 | % | 3 Mo SOFR + | AAA | 100.0 | % | |
| B Notes | 28,500,000 | 6.0 | % | 3 Mo SOFR + | AA | 100.0 | % | |
| C Notes | 38,000,000 | 8.0 | % | 3 Mo SOFR + | A | 100.0 | % | |
| D Notes | 28,500,000 | 6.0 | % | Retained | BBB- | 100.0 | % | |
| Subordinated Notes | 85,100,000 | 17.9 | % | NR | NA | |||
| Total | $ | 474,600,000 | ||||||
“We are delighted to close on the lowest spread debt financing in PFLT’s 14-year history, which will support the Company’s growth and net investment income. The weighted average spread of 159 basis points on
PFLT will continue to retain the Class D Notes and the Subordinated Notes. The reinvestment period for the term debt securitization ends no later than April 2029 and the Debt is scheduled to mature in April 2037. The term debt securitization is expected to be approximately
The notes offered as part of the term debt securitization have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state “blue sky” laws, and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements. The CLO is a form of secured financing incurred and consolidated by the Company. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 approximately
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 Securities Exchange Act of 1934, as amended (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.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com
Source: PennantPark Floating Rate Capital Ltd.
FAQ
What is the size and terms of PFLT's new securitization deal in February 2024?
How much did PFLT reduce its borrowing costs with the new securitization?
How many investors does PFLT now have across its securitization platform?
What is the total CLO assets under management at PennantPark Investment Advisers?
When does PFLT's new securitization mature?
