PennantPark Floating Rate Capital Ltd. Upsizes Credit Facility to $736 Million
PennantPark Floating Rate Capital (PFLT) has expanded its credit facility, led by Truist Bank, from $636 million to $736 million. The pricing remains at SOFR plus 225 basis points. The facility is secured by assets held by PennantPark Floating Rate Funding I, , a wholly-owned subsidiary.
The company expects this increased facility to enhance its ability to serve middle-market sponsors and borrowers with comprehensive senior secured solutions. PFLT focuses on the core middle market, where it believes it can achieve attractive risk-adjusted returns with higher yields, lower leverage, and stronger covenants compared to the upper middle market.
PennantPark Floating Rate Capital (PFLT) ha ampliato la sua linea di credito, guidata da Truist Bank, da 636 milioni di dollari a 736 milioni di dollari. I costi rimangono a SOFR più 225 punti base. La linea di credito è garantita da beni detenuti da PennantPark Floating Rate Funding I, una sussidiaria interamente controllata.
L'azienda si aspetta che questo aumento della linea di credito migliori la sua capacità di servire sponsor e mutuatari del mercato medio con soluzioni senior garantite complete. PFLT si concentra sul mercato medio core, dove crede di poter raggiungere ritorni attraenti aggiustati per il rischio con rendimenti più elevati, lower leverage e clausole più forti rispetto al mercato medio superiore.
PennantPark Floating Rate Capital (PFLT) ha ampliado su línea de crédito, liderada por Truist Bank, de 636 millones de dólares a 736 millones de dólares. La tarifa permanece en SOFR más 225 puntos base. La línea de crédito está asegurada por activos mantenidos por PennantPark Floating Rate Funding I, una subsidiaria de propiedad total.
La compañía espera que esta ampliación le permita mejorar su capacidad para atender a patrocinadores y prestatarios del mercado medio con soluciones senior garantizadas integrales. PFLT se enfoca en el mercado medio central, donde cree que puede lograr atractivos retornos ajustados por riesgo con mayores rendimientos, menor apalancamiento y cláusulas más sólidas en comparación con el mercado medio superior.
PennantPark Floating Rate Capital (PFLT)는 Truist Bank의 주도 하에 신용 시설을 6억 3600만 달러에서 7억 3600만 달러로 확대했습니다. 가격은 SOFR 플러스 225 베이시스 포인트로 유지됩니다. 이 시설은 PennantPark Floating Rate Funding I라는 전액 출자 자회사에서 보유한 자산으로 담보됩니다.
회사는 이번 신용 시설 확대가 중형 시장의 스폰서 및 차입자에게 포괄적인 선순위 담보 솔루션을 제공하는 능력을 향상시킬 것으로 기대하고 있습니다. PFLT는 핵심 중형 시장에 집중하고 있으며, 이 시장에서 더 높은 수익, 낮은 레버리지 및 상위 중형 시장보다 강력한 계약으로 매력적인 리스크 조정 수익률을 달성할 수 있다고 믿고 있습니다.
PennantPark Floating Rate Capital (PFLT) a élargi sa ligne de crédit, dirigée par Truist Bank, de 636 millions de dollars à 736 millions de dollars. Les tarifs restent à SOFR plus 225 points de base. La ligne de crédit est garantie par des actifs détenus par PennantPark Floating Rate Funding I, une filiale entièrement détenue.
L'entreprise s'attend à ce que cette augmentation de la ligne de crédit améliore sa capacité à servir les sponsors et les emprunteurs du marché intermédiaire avec des solutions senior sécurisées complètes. PFLT se concentre sur le cœur du marché intermédiaire, où elle croit pouvoir réaliser des rendements ajustés au risque attractifs avec des rendements plus élevés, un levier plus faible et des clauses plus solides par rapport au marché intermédiaire supérieur.
PennantPark Floating Rate Capital (PFLT) hat seine Kreditlinie, die von der Truist Bank geleitet wird, von 636 Millionen Dollar auf 736 Millionen Dollar erhöht. Die Preissetzung bleibt bei SOFR plus 225 Basispunkte. Die Kreditlinie ist durch Vermögenswerte gesichert, die von PennantPark Floating Rate Funding I, einer hundertprozentigen Tochtergesellschaft, gehalten werden.
Das Unternehmen erwartet, dass diese erweiterte Kreditlinie seine Fähigkeit verbessert, Sponsoren und Kreditnehmer im Mittelstand mit umfassenden, senior gesicherten Lösungen zu bedienen. PFLT konzentriert sich auf den Kernmittelstand, wo es glaubt, attraktive risikobadjustierte Renditen mit höheren Erträgen, geringerer Hebelwirkung und stärkeren Vereinbarungen im Vergleich zum oberen Mittelstand erreichen zu können.
- Credit facility increased by $100 million to $736 million
- Maintained favorable pricing at SOFR + 225 basis points
- Enhanced lending capacity for middle-market operations
- None.
Insights
- Increased facility provides
15.7% more deployable capital for middle-market lending - Maintained pricing despite market volatility suggests robust financial health
- Enhanced ability to compete in middle-market lending with expanded capacity
- Yields 100-200 basis points higher than upper middle market
- Lower leverage multiples providing better downside protection
- Stronger covenant packages enabling earlier intervention if needed
- Increased deal flow from sponsor relationships
- Enhanced ability to lead larger transactions
- Potential for improved ROE through efficient capital deployment
MIAMI, Dec. 26, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (“PFLT”) (NYSE: PFLT) announced that it has upsized its credit facility, led by Truist Bank (the “Credit Facility”) to
“We are appreciative of the support from all of our existing lending partners. Their support highlights the confidence they have in our excellent long-term track record,” said Arthur Penn, Chairman and Chief Executive Officer of PFLT. “We expect that this increased facility will expand our ability to serve middle-market sponsor and borrower clients by providing them with more comprehensive senior secured solutions. We believe that this enhanced credit facility positions us well to capture the opportunity in the core middle market, where our capital is strategic to our borrowers. As a result, we believe that the package of risk adjusted return we receive is attractive and includes higher yields, lower leverage and covenants which are not available in the upper middle market.”
The Credit Facility is secured by all of the assets held by PennantPark Floating Rate Funding I, LLC, a wholly-owned subsidiary of the Company, and includes customary covenants, including minimum asset coverage and minimum equity requirements.
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 of 1933, as amended, 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
FAQ
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