PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I, LLC Completes $300.7 Million CLO
PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) announced the closure of a $300.7 million collateralized loan obligation (CLO) via its subsidiary, PennantPark Senior Secured Loan Fund I, LLC. This 11-year CLO features a three-year reinvestment period and aims to enhance returns while tapping into low-cost, long-term financing. The proceeds will partially repay a $325 million secured credit facility. The transaction is approximately 95% funded at close, indicating strong investor confidence.
- Closure of $300.7 million CLO enhances long-term financing for PFLT.
- Transaction expected to improve returns, leveraging low-cost capital.
- Strong investor confidence with approximately 95% funding at close.
- None.
NEW YORK, Jan. 28, 2021 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NASDAQ: PFLT) (TASE: PFLT) today announced that PennantPark Senior Secured Loan Fund I, LLC, “PSSL”, through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO II, Ltd. has closed a three-year reinvestment period, eleven-year final maturity
| Class | Par Amount ($ in millions) | % of Capital Structure | Coupon | Expected Rating (S&P) | Issuance Price | |||
| A-1 Notes | 41,000,000 | 3 Mo LIBOR + | AAA | |||||
| A-1 Loans | 130,000,000 | 3 Mo LIBOR + | AAA | |||||
| A-2 | 6,000,000 | 3 Mo LIBOR + | AAA | |||||
| B-1 | 15,500,000 | 3 Mo LIBOR + | AA | |||||
| B-2 | 8,500,000 | AA | ||||||
| C | 27,000,000 | 3 Mo LIBOR + | A | |||||
| D | 18,000,000 | 3 Mo LIBOR + | BBB- | |||||
| E | 18,000,000 | NA | BB- | NA | ||||
| Sub Notes | 36,700,000 | NR | NA | |||||
| Total | 300,700,000 | |||||||
PSSL will retain all the Class E Notes and Subordinated Notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in January 2024 and the Debt is scheduled to mature in January 2032. The term debt securitization is expected to be approximately
“This transaction allows PSSL to grow with low cost, long term financing which is well matched to the lower risk nature of the underlying assets,” said Arthur Penn, Chief Executive Officer of PFLT. “Having a three-year reinvestment period, an 11-year final maturity, and attractive pricing will enhance returns for the Company and PSSL. The resiliency of the portfolio through COVID along with the strong performance of the Company’s first CLO led to a successful execution.”
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, or 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 PSSL. 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 SENIOR SECURED LOAN FUND I, LLC
PennantPark Senior Secured Loan Fund I LLC, is a joint venture between PennantPark Floating Rate Capital Ltd. and a subsidiary of Kemper Corporation (NYSE: KMPR), Trinity Universal Insurance Company, and primarily invests in U.S. middle-market companies whose debt is rated below investment grade.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, which has 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 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:
Aviv Efrat
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com
FAQ
What is the significance of the $300.7 million CLO announced by PFLT?
When does the reinvestment period for the CLO close?
What will the proceeds from the CLO be used for?
What is the funding status of the CLO transaction?
Who acted as the lead placement agent for the CLO transaction?
