PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) (TASE: PFLT)
announced today financial results for the second fiscal quarter
ended March 31, 2020.
HIGHLIGHTS |
Quarter ended
March 31, 2020 |
($ in millions,
except per share amounts) |
|
Assets and Liabilities: |
|
|
|
Investment portfolio
(1) |
$ |
1,179.0 |
|
PSSL investment
portfolio |
$ |
482.8 |
|
Net assets |
$ |
469.8 |
|
GAAP net asset value
per share |
$ |
12.12 |
|
Adjusted net asset
value per share (2) |
$ |
11.10 |
|
|
|
|
Credit Facility |
$ |
400.6 |
|
2023 Notes |
$ |
111.7 |
|
2031 Asset-Backed
Debt |
$ |
224.6 |
|
GAAP Net Debt to Equity
(3) |
|
1.50x |
|
Regulatory Debt to
Equity |
|
1.81x |
|
Regulatory Net Debt to
Equity (4) |
|
1.74x |
|
|
|
|
|
Yield on debt
investments at quarter-end |
|
7.8 |
% |
|
|
|
Operating Results: |
|
|
|
Net investment income |
$ |
11.7 |
|
Net investment income
per share |
$ |
0.30 |
|
Distributions declared
per share |
$ |
0.285 |
|
|
|
|
|
Portfolio Activity: |
|
|
|
Purchases of
investments |
$ |
167.5 |
|
Sales and repayments of
investments |
$ |
99.4 |
|
|
|
|
|
Number of new portfolio
companies invested |
|
7 |
|
Number of existing
portfolio companies invested |
|
37 |
|
Number of ending
portfolio companies |
|
108 |
|
- Includes investments in PennantPark
Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint
venture, totaling $154.8 million, at fair value.
- This is a non-GAAP financial
measure. The Company believes that this number provides useful
information to investors and management because it reflects the
Company’s financial performance excluding the impact of the $39.4
million unrealized loss on the Credit Facility and the 2023 Notes.
The presentation of this additional information is not meant to be
considered in isolation or as a substitute for financial results
prepared in accordance with GAAP.
- This is a non-GAAP financial
measure. The Company believes that this number provides useful
information to investors and management because it reflects the
Company’s financial performance net of $30.0 million of cash and
equivalents. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for
financial results prepared in accordance with GAAP.
- This is a non-GAAP financial
measure. The Company believes that this number provides useful
information to investors and management because it reflects the
Company’s financial performance excluding the impact of the $39.4
million unrealized loss on the Credit Facility and the 2023 Notes
and net of $30.0 million of cash and equivalents. The presentation
of this additional information is not meant to be considered in
isolation or as a substitute for financial results prepared in
accordance with GAAP.
CONFERENCE CALL AT 10:00 A.M. ET ON MAY
12, 2020
PennantPark Floating Rate Capital Ltd. (“we,”
“our,” “us” or the “Company”) will host a conference call at 10:00
a.m. (Eastern Time) on Tuesday, May 12, 2020 to discuss its
financial results. All interested parties are welcome to
participate. You can access the conference call by dialing
toll-free (800) 289-0438 approximately 5-10 minutes prior to the
call. International callers should dial (929) 477-0402. All callers
should reference conference ID #1717710 or PennantPark Floating
Rate Capital Ltd. An archived replay of the call will be available
through May 26, 2020 by calling toll-free (888) 203-1112.
International callers please dial (719) 457-0820. For all phone
replays, please reference conference ID #1717710.
PORTFOLIO AND INVESTMENT
ACTIVITY
“We are pleased that PennantPark continues to
operate smoothly and effectively and remains committed to working
diligently on behalf of our investors,” said Art Penn, Chairman and
CEO. “We believe that our rigorous underwriting process and
disciplined approach has successfully positioned us to manage
through the challenges ahead.”
As of March 31, 2020, our portfolio totaled
$1,179.0 million and consisted of $1,072.0 million of first lien
secured debt (including $119.7 million in PSSL), $32.0 million of
second lien secured debt and $74.9 million of preferred and common
equity (including $35.1 million in PSSL). Our debt portfolio
consisted of 99% variable-rate investments. As of March 31, 2020,
we had two portfolio companies on non-accrual, representing 0.6%
and zero of our overall portfolio on a cost and fair value basis,
respectively. Overall, the portfolio had net unrealized
depreciation of $71.7 million. Our overall portfolio consisted of
108 companies with an average investment size of $10.9 million, had
a weighted average yield on debt investments of 7.8%, and was
invested 91% in first lien secured debt (including 10% in PSSL), 3%
in second lien secured debt and 6% in preferred and common equity
(including 3% in PSSL). As of March 31, 2020, 98% of the
investments held by PSSL were first lien secured debt. For more
information on how the COVID-19 pandemic has affected our business
and results of operations, see the “Effects of COVID-19” section
below.
As of September 30, 2019, our portfolio
totaled $1,081.7 million and consisted of $944.9 million of first
lien secured debt (including $122.2 million in PSSL), $34.4 million
of second lien secured debt and $102.4 million of preferred and
common equity (including $50.0 million in PSSL). Our debt portfolio
consisted of 99% variable-rate investments. As of
September 30, 2019, we had one portfolio company on
non-accrual, representing 0.4% and zero of our overall portfolio on
a cost and fair value basis, respectively. Overall, the portfolio
had net unrealized depreciation of $3.5 million. Our overall
portfolio consisted of 95 companies with an average investment size
of $11.4 million, had a weighted average yield on debt investments
of 8.7%, and was invested 87% in first lien secured debt (including
11% in PSSL), 3% in second lien secured debt and 10% in preferred
and common equity (including 5% in PSSL). As of September 30,
2019, 97% of the investments held by PSSL were first lien secured
debt.
For the three months ended March 31, 2020, we
invested $167.5 million in seven new and 37 existing portfolio
companies with a weighted average yield on debt investments of
7.5%. Sales and repayments of investments for the three months
ended March 31, 2020 totaled $99.4 million. For the six months
ended March 31, 2020, we invested $407.0 million in 17 new and 68
existing portfolio companies with a weighted average yield on debt
investments of 8.0%. Sales and repayments of investments for the
six months ended March 31, 2020 totaled $243.1 million.
For the three months ended March 31, 2019, we
invested $136.1 million in five new and 22 existing portfolio
companies with a weighted average yield on debt investments of
8.7%. Sales and repayments of investments for the three months
ended March 31, 2019 totaled $143.2 million. For the six months
ended March 31, 2019, we invested $316.8 million in 14 new and 46
existing portfolio companies with a weighted average yield on debt
investments of 8.6%. Sales and repayments of investments for the
six months ended March 31, 2019 totaled $333.5 million.
PennantPark Senior Secured Loan Fund I
LLC
As of March 31, 2020, PSSL’s portfolio totaled
$482.8 million, consisted of 51 companies with an average
investment size of $9.5 million and had a weighted average yield on
debt investments of 7.0%. As of September 30, 2019, PSSL’s
portfolio totaled $488.5 million, consisted of 45 companies with an
average investment size of $10.9 million and had a weighted average
yield on debt investments of 7.6%.
For the three months ended March 31, 2020, PSSL
invested $17.9 million (including $17.8 million purchased from the
Company) in three new and one existing portfolio companies with a
weighted average yield on debt investments of 7.4%. Sales and
repayments of investments for the three months ended March 31, 2020
totaled $7.9 million. For the six months ended March 31, 2020, PSSL
invested $87.1 million (including $86.7 million purchased from the
Company) in 11 new and two existing portfolio companies with a
weighted average yield on debt investments of 7.4%. Sales and
repayments of investments for the six months ended March 31, 2020
totaled $74.3 million.
For the three months ended March 31, 2019, PSSL
invested $25.2 million (of which $19.7 million was purchased from
the Company) in one new and three existing portfolio companies with
a weighted average yield on debt investments of 8.0%. PSSL’s sales
and repayments of investments for the three months ended March 31,
2019 totaled $17.8 million. For the six months ended March 31, 2019
PSSL invested $167.6 million in 10 new and 10 existing portfolio
companies with a weighted average yield on debt investments of
8.1%. PSSL’s sales and repayments of investments for the six months
ended March 31, 2019 totaled $88.5 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and
six months ended March 31, 2020 and 2019.
Investment Income
Investment income for the three and six months
ended March 31, 2020 was $26.3 million and $51.0 million,
respectively, and was attributable to $24.1 million and $46.5
million from first lien secured debt and $2.2 million and $4.5
million from other investments, respectively. This compares to
investment income for the three and six months ended March 31,
2019, which was $23.0 million and $46.2 million, respectively, and
was attributable to $21.0 million and $42.1 million from first lien
secured debt and $2.0 million and $4.1 million from other
investments, respectively. The increase in investment income
compared to the same periods in the prior year was primarily due to
the growth of our portfolio.
Expenses
Expenses for the three and six months ended
March 31, 2020 totaled $14.6 million and $28.1 million,
respectively. Base management fee for the same periods totaled $2.9
million and $5.8 million, incentive fee totaled $2.9 million and
$5.3 million, debt related interest and expenses totaled $7.6
million and $14.9 million and general and administrative expenses
totaled $1.0 million and $1.9 million, respectively. This compares
to expenses for the three and six months ended March 31, 2019 which
totaled $11.2 million and $23.5 million, respectively. Base
management fee for the same periods totaled $2.4 million and $4.9
million, incentive fee totaled $2.5 million and $1.3 million
(including $(1.4) million on realized and unrealized gains accrued
but not payable), debt related interest and expenses totaled $5.3
million (including less than $0.1 million in Credit Facility
amendment costs) and $15.1 million (including $4.5 million in
Credit Facility amendment costs), and general and administrative
expenses totaled $1.0 million and $2.2 million, respectively. The
increase in expenses for the three and six months ended March 31,
2020 compared to the same periods in the prior year was primarily
due to the growth of our portfolio.
Net Investment Income
Net investment income totaled $11.7 million and
$22.9 million, or $0.30 and $0.59 per share, for the three and six
months ended March 31, 2020, respectively. Net investment income
totaled $11.8 million and $22.7 million, or $0.30 and $0.59 per
share, for the three and six months ended March 31, 2019,
respectively.
Net Realized Gains or
Losses
Sales and repayments of investments for the
three and six months ended March 31, 2020 totaled $99.4 million and
$243.1 million, respectively, and net realized losses totaled $1.6
million and $0.6 million, respectively. Sales and repayments of
investments for the three and six months ended March 31, 2019
totaled $143.2 million and $333.5 million, respectively, and net
realized gains totaled $1.1 million and $2.0 million, respectively.
The change in realized gains/losses was primarily due to changes in
the market conditions of our investments and the values at which
they were realized.
Unrealized Appreciation or Depreciation
on Investments, the Credit Facility and the 2023 Notes
For the three and six months ended March 31,
2020, we reported net change in unrealized depreciation on
investments of $64.8 million and $68.3 million, respectively. For
the three and six months ended March 31, 2019, we reported net
change in unrealized depreciation on investments of $12.7 million
and $25.1 million, respectively. As of March 31, 2020 and September
30, 2019, our net unrealized depreciation on investments totaled
$71.7 million and $3.5 million, respectively. The net change in
unrealized depreciation on our investments compared to the same
periods in the prior year was primarily due to changes in the
capital market conditions as well as the financial performance of
certain portfolio companies primarily driven by the market
disruption caused by the COVID-19 pandemic and the uncertainty
surrounding its continued adverse economic impact. For more
information on how the COVID-19 pandemic has affected our business
and results of operations, see the “Effects of COVID-19” section
below.
For the three and six months ended March 31,
2020, the Credit Facility and the 2023 Notes had a net change in
unrealized appreciation of $33.5 million and $34.9 million,
respectively. For the three and six months ended March 31, 2019,
the Credit Facility and the 2023 Notes had a net change in
unrealized appreciation of $5.6 million and $0.1 million,
respectively. As of March 31, 2020 and September 30, 2019, the net
unrealized depreciation on the Credit Facility and the 2023 Notes
totaled $39.6 million and $4.7 million, respectively. The net
change in net unrealized depreciation compared to the same period
in the prior year was primarily due to changes in the capital
markets.
Net Change in Net Assets Resulting from
Operations
Net decrease in net assets resulting from
operations totaled $21.1 million and $11.1 million, or $0.54 and
$0.29 per share, respectively, for the three and six months ended
March 31, 2020. This compares to a net decrease in net assets
resulting from operations of $5.5 million and $0.5 million, or
$0.14 and $0.01 per share, respectively, for the three and six
months ended March 31, 2019. The net change in net assets from
operations compared to the same periods in the prior year was
primarily due to depreciation of the portfolio in the current
period primarily driven by the market disruption caused by the
COVID-19 pandemic and the uncertainty surrounding its continued
adverse economic impact. For more information on how the COVID-19
pandemic has affected our business and results of operations, see
the “Effects of COVID-19” section below.
LIQUIDITY AND CAPITAL
RESOURCES
Our liquidity and capital resources are derived
primarily from proceeds of securities offerings, debt capital and
cash flows from operations, including investment sales and
repayments, and income earned. Our primary use of funds from
operations includes investments in portfolio companies and payments
of fees and other operating expenses we incur. We have used, and
expect to continue to use, our debt capital, proceeds from the
rotation of our portfolio and proceeds from public and private
offerings of securities to finance our investment objectives. For
more information on how the COVID-19 pandemic may impact our
ability to comply with the covenants of the Credit Facility, see
the “Effects of COVID-19” section below.
The annualized weighted average cost of debt for
the six months ended March 31, 2020 and 2019, inclusive of the fee
on the undrawn commitment on the Credit Facility, amendment costs
and debt issuance costs, was 4.1% and 6.2%, respectively (excluding
amendment and debt issuance costs, amounts were 4.1% and 5.1%,
respectively). As of March 31, 2020 and September 30, 2019, we had
$106.7 million and $254.7 million of unused borrowing capacity
under the Credit Facility, respectively, subject to leverage and
borrowing base restrictions.
As of March 31, 2020 and September 30, 2019,
PennantPark Floating Rate Funding I, LLC, or Funding I, had $413.3
million and 265.3 million of outstanding borrowings under the
Credit Facility, respectively. The Credit Facility had a weighted
average interest rate of 3.6% and 4.1%, exclusive of the fee on
undrawn commitments as of March 31, 2020 and September 30, 2019,
respectively.
As of March 31, 2020 and September 30, 2019, we
had cash equivalents of $30.0 million and $63.3 million,
respectively, available for investing and general corporate
purposes. We believe our liquidity and capital resources are
sufficient to take advantage of market opportunities.
Our operating activities used cash of $158.9
million for the six months ended March 31, 2020, and our financing
activities provided cash of $125.9 million for the same period. Our
operating activities used cash primarily for our investment
activities and our financing activities provided cash primarily
from draws on our credit facility, partially offset by
distributions paid to stockholders.
Our operating activities used cash of $35.6
million for the six months ended March 31, 2019 and our financing
activities used cash of $3.5 million for the same period. Our
operating activities used cash primarily for our investment
activities and our financing activities used cash primarily for
distributions paid to stockholders.
DISTRIBUTIONS
During the three and six months ended March 31,
2020 and 2019, we declared distributions of $0.285 and $0.57 per
share, respectively, for total distributions of $11.1 and $22.1
million, respectively. We monitor available net investment income
to determine if a return of capital for tax purposes may occur for
the fiscal year. To the extent our taxable earnings fall below the
total amount of our distributions for any given fiscal year,
stockholders will be notified of the portion of those distributions
deemed to be a tax return of capital. Tax characteristics of all
distributions will be reported to stockholders subject to
information reporting on Form 1099-DIV after the end of each
calendar year and in our periodic reports filed with the Securities
and Exchange Commission, or the SEC.
EFFECTS OF COVID-19
The spread of COVID-19 has had a significant
impact on the U.S. economy and has resulted in governmental orders
imposing travel restrictions and prolonged closures of many
corporate offices, retail stores, manufacturing facilities,
factories and other common places of public congregation around the
world. These restrictions and “stay-at-home” orders have
essentially resulted in the shutdown of all non-essential
businesses, as defined by each governmental authority imposing the
respective orders. Any future impact to our business and results of
operations will depend to a large extent on future developments and
new information that may emerge regarding the duration and severity
of COVID-19 and the actions taken by authorities and other entities
to reduce the spread of the virus, all of which are beyond our
control. The COVID-19 pandemic has had, and continues to have, an
adverse impact on our operating results and the operating results
of our portfolio companies.
We had a significant reduction of our net asset
value as of March 31, 2020 as compared to our net asset value in
the prior quarter. This reduction resulted from an increase in the
overall net unrealized depreciation of the Company’s portfolio,
including unrealized depreciations in the Company's investments,
the Credit Facility and the 2023 Notes as of March 31, 2020, which
was primarily due to the immediate adverse economic impact of the
COVID-19 pandemic, the continuing uncertainty surrounding its
long-term effects as well as the re-pricing of credit risk in the
broadly syndicated credit market. As of March 31, 2020, we are in
compliance with asset coverage requirements under the Investment
Company Act of 1940, as amended. In addition, we are not in default
of any asset coverage requirements under the Credit Facility as of
March 31, 2020. However, any continued increase in unrealized
depreciation of our investment portfolio or further significant
reductions in our net asset value, as a result of the effects of
the COVID-19 pandemic or otherwise, increases the risk of breaching
the relevant covenants. As such, we may run into liquidity issues
in the future if we are unable to draw on the unused borrowing
capacity under our Credit Facility due the breach of financial
covenants.
We will continue to monitor the rapidly evolving
situation surrounding the COVID-19 pandemic and guidance from U.S.
and international authorities, including federal, state and local
public health authorities, and may take further actions based on
their recommendations. There may be developments outside our
control requiring us to adjust our plans accordingly. While we are
closely monitoring this situation, we cannot predict the impact of
COVID-19 on our future financial condition, results of operations
or cash flows with any level of certainty. However, we expect that
the COVID-19 pandemic will have a material adverse impact on our
future net investment income, the fair value of our portfolio
investments, and the results of operations and financial condition
of our portfolio companies. For information concerning the COVID-19
pandemic and its potential impact on our business and our operating
results, see our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020, including “Item 2. Management's Discussion
and Analysis of Financial Condition and Results of Operations –
COVID-19 Developments” and “Part II - Other Information – Item 1A.
Risk Factors” therein.
AVAILABLE INFORMATION
The Company makes available on its website its
report on Form 10-Q filed with the SEC and stockholders may find
the report on its website at www.pennantpark.com.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES |
|
|
|
|
March 31, 2020 |
|
|
September 30, 2019 |
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments (cost—$1,048,160,082 and
$886,955,156, respectively) |
$ |
1,012,983,114 |
|
|
$ |
889,113,264 |
|
Non-controlled, affiliated investments (cost—$25,970,270 and
$23,645,693, respectively) |
|
11,138,636 |
|
|
|
20,430,565 |
|
Controlled, affiliated investments (cost—$176,312,500 and
$174,562,500, respectively) |
|
154,838,109 |
|
|
|
172,163,080 |
|
Total of investments (cost—$1,250,442,852 and $1,085,172,349,
respectively) |
|
1,178,959,859 |
|
|
|
1,081,706,909 |
|
Cash and cash equivalents
(cost—$30,223,951 and $63,367,237, respectively) |
|
29,993,752 |
|
|
|
63,337,728 |
|
Interest receivable |
|
4,146,825 |
|
|
|
3,892,292 |
|
Receivable for investments
sold |
|
9,050,000 |
|
|
|
2,997,546 |
|
Prepaid expenses and other
assets |
|
464,179 |
|
|
|
441,337 |
|
Total assets |
|
1,222,614,615 |
|
|
|
1,152,375,812 |
|
Liabilities |
|
|
|
|
|
|
|
Distributions payable |
|
3,683,347 |
|
|
|
3,683,347 |
|
Payable for investments
purchased |
|
— |
|
|
|
12,033,794 |
|
Credit Facility payable, at fair
value (cost—$413,307,500 and $265,307,500, respectively) |
|
400,592,492 |
|
|
|
263,988,583 |
|
2023 Notes payable, at fair value
(par—$138,579,858) |
|
111,736,940 |
|
|
|
135,240,084 |
|
2031 Asset-Backed Debt, net
(par—$228,000,000) |
|
224,550,913 |
|
|
|
224,321,845 |
|
Interest payable on debt |
|
4,903,259 |
|
|
|
3,275,481 |
|
Base management fee payable |
|
2,948,941 |
|
|
|
2,728,019 |
|
Performance-based incentive fee
payable |
|
2,937,024 |
|
|
|
2,532,205 |
|
Accrued other expenses |
|
1,432,425 |
|
|
|
1,514,943 |
|
Total liabilities |
|
752,785,341 |
|
|
|
649,318,301 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
Common stock, 38,772,074 shares
issued and outstanding Par value $0.001 per share and
100,000,000 shares authorized |
|
38,772 |
|
|
|
38,772 |
|
Paid-in capital in excess of par
value |
|
538,632,828 |
|
|
|
538,632,828 |
|
Distributable income |
|
(68,842,326 |
) |
|
|
(35,614,089 |
) |
Total net assets |
$ |
469,829,274 |
|
|
$ |
503,057,511 |
|
Total liabilities and net assets |
$ |
1,222,614,615 |
|
|
$ |
1,152,375,812 |
|
Net asset value per
share |
$ |
12.12 |
|
|
$ |
12.97 |
|
PENNANTPARK FLOATING RATE CAPITAL LTD. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Unaudited) |
|
|
|
|
Three Months Ended March 31, |
|
|
Six Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Investment
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-controlled,
non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
$ |
20,307,380 |
|
|
$ |
16,825,167 |
|
|
$ |
39,217,274 |
|
|
$ |
34,995,165 |
|
Other income |
|
1,140,500 |
|
|
|
1,390,690 |
|
|
|
1,913,603 |
|
|
|
2,011,879 |
|
From non-controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
233,772 |
|
|
|
— |
|
|
|
459,125 |
|
|
|
— |
|
From controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
3,069,785 |
|
|
|
3,214,482 |
|
|
|
6,225,109 |
|
|
|
6,032,527 |
|
Dividend |
|
1,575,000 |
|
|
|
1,575,000 |
|
|
|
3,150,000 |
|
|
|
3,150,000 |
|
Total investment income |
|
26,326,437 |
|
|
|
23,005,339 |
|
|
|
50,965,111 |
|
|
|
46,189,571 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee |
|
2,948,941 |
|
|
|
2,418,706 |
|
|
|
5,779,100 |
|
|
|
4,917,472 |
|
Performance-based incentive fee |
|
2,937,024 |
|
|
|
2,514,047 |
|
|
|
5,252,859 |
|
|
|
1,321,638 |
|
Interest and expenses on debt |
|
7,626,550 |
|
|
|
5,316,180 |
|
|
|
14,933,814 |
|
|
|
10,621,658 |
|
Administrative services expenses |
|
350,000 |
|
|
|
350,000 |
|
|
|
700,000 |
|
|
|
850,000 |
|
Other general and administrative expenses |
|
616,077 |
|
|
|
616,077 |
|
|
|
1,232,153 |
|
|
|
1,232,152 |
|
Expenses before amendment costs, debt issuance costs and
provision for taxes |
|
14,478,592 |
|
|
|
11,215,010 |
|
|
|
27,897,926 |
|
|
|
18,942,920 |
|
Credit Facility amendment costs and debt issuance costs |
|
— |
|
|
|
5,013 |
|
|
|
— |
|
|
|
4,517,292 |
|
Provision for taxes |
|
100,000 |
|
|
|
— |
|
|
|
200,000 |
|
|
|
— |
|
Total expenses |
|
14,578,592 |
|
|
|
11,220,023 |
|
|
|
28,097,926 |
|
|
|
23,460,212 |
|
Net investment income |
|
11,747,845 |
|
|
|
11,785,316 |
|
|
|
22,867,185 |
|
|
|
22,729,359 |
|
Realized and unrealized
loss on investments and debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (loss) gain on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
(1,599,285 |
) |
|
|
1,079,348 |
|
|
|
(586,972 |
) |
|
|
2,002,814 |
|
Net realized (loss) gain on investments |
|
(1,599,285 |
) |
|
|
1,079,348 |
|
|
|
(586,972 |
) |
|
|
2,002,814 |
|
Net change in unrealized
depreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
(40,004,484 |
) |
|
|
(13,288,572 |
) |
|
|
(37,625,126 |
) |
|
|
(23,330,111 |
) |
Controlled and non-controlled, affiliated investments |
|
(24,782,772 |
) |
|
|
573,851 |
|
|
|
(30,682,477 |
) |
|
|
(1,790,617 |
) |
Debt depreciation (appreciation) |
|
33,537,647 |
|
|
|
(5,621,668 |
) |
|
|
34,899,235 |
|
|
|
(87,975 |
) |
Net change in unrealized depreciation on investments and
debt |
|
(31,249,609 |
) |
|
|
(18,336,389 |
) |
|
|
(33,408,368 |
) |
|
|
(25,208,703 |
) |
Net realized and
unrealized loss from investments and debt |
|
(32,848,894 |
) |
|
|
(17,257,041 |
) |
|
|
(33,995,340 |
) |
|
|
(23,205,889 |
) |
Net decrease in net
assets resulting from operations |
$ |
(21,101,049 |
) |
|
$ |
(5,471,725 |
) |
|
$ |
(11,128,155 |
) |
|
$ |
(476,530 |
) |
Net decrease in net assets
resulting from operations per common share |
$ |
(0.54 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.01 |
) |
Net investment income per common
share |
$ |
0.30 |
|
|
$ |
0.30 |
|
|
$ |
0.59 |
|
|
$ |
0.59 |
|
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.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a
leading middle market credit platform, which has approximately $3.7
billion of assets under management. 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 New York
and has offices in 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. Such
statements are based on currently available operating, financial
and competitive information and are subject to various risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations.
CONTACT: |
|
Aviv Efrat |
|
|
PennantPark Floating Rate Capital Ltd. |
|
|
(212) 905-1000 |
|
|
www.pennantpark.com |
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