PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) (TASE: PFLT)
announced today financial results for the third fiscal quarter
ended June 30, 2020.
HIGHLIGHTS
Quarter ended June 30, 2020($ in millions, except per share
amounts)
Assets and Liabilities: |
|
|
Investment portfolio (1) |
$ |
1,104.4 |
PSSL investment portfolio |
$ |
458.5 |
Net assets |
$ |
471.3 |
GAAP net asset value per share |
$ |
12.16 |
Increase GAAP net asset value per share |
|
0.3% |
Adjusted net asset value per share (2) |
$ |
11.44 |
Increase in adjusted net asset value per share (2) |
|
3.1% |
|
|
|
Credit Facility |
$ |
340.9 |
2023 Notes |
$ |
121.9 |
2031 Asset-Backed Debt |
$ |
224.7 |
Regulatory Debt to Equity |
|
1.62x |
Regulatory Net Debt to Equity (3) |
|
1.50x |
GAAP Net Debt to Equity (4) |
|
1.35x |
|
|
|
Yield on debt investments at quarter-end |
|
7.4% |
|
|
|
Operating
Results: |
|
|
Net investment income |
$ |
10.2 |
Net investment income per share |
$ |
0.26 |
Distributions declared per share |
$ |
0.285 |
|
|
|
Portfolio Activity: |
|
|
Purchases of investments |
$ |
14.4 |
Sales and repayments of investments |
$ |
104.1 |
|
|
|
Number of new portfolio companies invested |
|
1 |
Number of existing portfolio companies invested |
|
18 |
Number of ending portfolio companies |
|
104 |
(1) Includes investments in PennantPark Senior Secured Loan Fund
I LLC, or PSSL, an unconsolidated joint venture, totaling $159.4
million, at fair value.
(2) 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 $27.8 million unrealized loss on our
multi-currency senior secured revolving credit facility, as amended
and restated with Truist Bank (formerly SunTrust Bank) and other
lenders, or the Credit Facility, and our 4.3% Series A notes due
2023, or 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.
(3) 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 $53.4 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.
(4) 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
including the impact of the $27.8 million unrealized loss on the
Credit Facility and the 2023 Notes net of $53.4 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
AUGUST 6, 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 Thursday, August 6, 2020 to discuss its
financial results. All interested parties are welcome to
participate. You can access the conference call by dialing
toll-free (866) 548-4713 approximately 5-10 minutes prior to the
call. International callers should dial (323) 794-2093. All callers
should reference conference ID #6656028 or PennantPark Floating
Rate Capital Ltd. An archived replay of the call will be available
through August 20, 2020 by calling toll-free (888) 203-1112.
International callers please dial (719) 457-0820. For all phone
replays, please reference conference ID #6656028.
PORTFOLIO AND INVESTMENT
ACTIVITY“We are pleased that we accomplished several key
goals this past quarter. We achieved a 3% increase in adjusted NAV
as well as reduced leverage and increased liquidity,” said Arthur
Penn, Chairman and CEO. “We believe our rigorous underwriting
process and disciplined investment approach has successfully
positioned us to manage through this environment.”
As of June 30, 2020, our portfolio totaled
$1,104.4 million and consisted of $993.6 million of first lien
secured debt (including $123.4 million in PSSL), $31.7 million of
second lien secured debt and $79.0 million of preferred and common
equity (including $36.0 million in PSSL). Our debt portfolio
consisted of 99% variable-rate investments. As of June 30,
2020, we had three portfolio companies on non-accrual, representing
2.2% and 1.8% of our overall portfolio on a cost and fair value
basis, respectively. Overall, the portfolio had net unrealized
depreciation of $49.9 million. Our overall portfolio consisted of
104 companies with an average investment size of $10.6 million, had
a weighted average yield on debt investments of 7.4%, and was
invested 90% in first lien secured debt (including 11% in PSSL), 3%
in second lien secured debt and 7% in preferred and common equity
(including 3% in PSSL). As of June 30, 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 June 30, 2020,
we invested $14.4 million in one new and 18 existing portfolio
companies with a weighted average yield on debt investments of
8.1%. Sales and repayments of investments for the three months
ended June 30, 2020 totaled $104.1 million. For the nine
months ended June 30, 2020, we invested $421.4 million in 18
new and 86 existing portfolio companies with a weighted average
yield on debt investments of 8.0%. Sales and repayments of
investments for the nine months ended June 30, 2020 totaled
$347.2 million.
For the three months ended June 30, 2019,
we invested $182.7 million in eight new and 14 existing portfolio
companies with a weighted average yield on debt investments of
9.3%. Sales and repayments of investments for the three months
ended June 30, 2019 totaled $66.6 million. For the nine months
ended June 30, 2019, we invested $499.5 million in 22 new and
60 existing portfolio companies with a weighted average yield on
debt investments of 8.9%. Sales and repayments of investments for
the nine months ended June 30, 2019 totaled $400.1
million.
PennantPark Senior Secured Loan Fund I
LLC
As of June 30, 2020, PSSL’s portfolio
totaled $458.5 million, consisted of 49 companies with an average
investment size of $9.4 million and had a weighted average yield on
debt investments of 6.8%. 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 June 30, 2020,
PSSL made zero new or follow-on investments. Sales and repayments
of investments for the three months ended June 30, 2020
totaled $28.3 million. For the nine months ended June 30,
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 nine months ended
June 30, 2020 totaled $102.6 million.
For the three months ended June 30, 2019,
PSSL invested $8.4 million in one new and three existing portfolio
companies with a weighted average yield on debt investments of
9.0%. PSSL’s sales and repayments of investments for the three
months ended June 30, 2019 totaled $39.7 million. For the nine
months ended June 30, 2019 PSSL invested $176.0 million
(including $57.7 million purchased from the Company) in 11 new and
13 existing portfolio companies with a weighted average yield on
debt investments of 8.1%. PSSL’s sales and repayments of
investments for the nine months ended June 30, 2019 totaled
$128.2 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and
nine months ended June 30, 2020 and 2019.
Investment Income
Investment income for the three and nine months
ended June 30, 2020 was $22.8 million and $73.7 million,
respectively, and was attributable to $21.0 million and $67.5
million from first lien secured debt and $1.8 million and $6.2
million from other investments, respectively. This compares to
investment income for the three and nine months ended June 30,
2019, which was $22.9 million and $69.1 million, respectively, and
was attributable to $19.9 million and $62.0 million from first lien
secured debt and $3.0 million and $7.0 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 nine months ended
June 30, 2020 totaled $12.6 million and $40.7 million,
respectively. Base management fee for the same periods totaled $2.9
million and $8.7 million, incentive fee totaled $2.0 million and
$7.2 million, debt related interest and expenses totaled $6.7
million and $21.6 million and general and administrative expenses
totaled $1.0 million and $2.9 million, respectively. This compares
to expenses for the three and nine months ended June 30, 2019 which
totaled $11.5 million and $35.0 million, respectively. Base
management fee for the same periods totaled $2.6 million and $7.5
million, incentive fee totaled $2.4 million and $3.7 million
(including $(1.4) million on realized and unrealized gains accrued
but not payable), debt related interest and expenses totaled $5.7
million and $20.8 million (including $4.5 million in Credit
Facility amendment costs), and general and administrative expenses
totaled $1.0 million and $3.0 million, respectively. The increase
in expenses for the three and nine months ended June 30, 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 $10.2 million and
$33.1 million, or $0.26 and $0.85 per share, for the three and nine
months ended June 30, 2020, respectively. Net investment income
totaled $11.3 million and $34.1 million, or $0.29 and $0.88 per
share, for the three and nine months ended June 30, 2019,
respectively.
Net Realized Gains or
Losses
Sales and repayments of investments for the
three and nine months ended June 30, 2020 totaled $104.1 million
and $347.2 million, respectively, and net realized losses totaled
$7.4 million and $8.0 million, respectively. Sales and repayments
of investments for the three and nine months ended June 30, 2019
totaled $66.6 million and $400.1 million, respectively, and net
realized losses totaled $18.4 million and $16.4 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 nine months ended June 30,
2020, we reported net change in unrealized appreciation
(depreciation) on investments of $21.9 million and $(46.4) million,
respectively. For the three and nine months ended June 30, 2019, we
reported net change in unrealized appreciation (depreciation) on
investments of $11.9 million and $(13.2) million, respectively. As
of June 30, 2020 and September 30, 2019, our net unrealized
depreciation on investments totaled $49.9 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 nine months ended June 30,
2020, the Credit Facility and the 2023 Notes had a net change in
unrealized (appreciation) depreciation of $(12.2) million and $22.7
million, respectively. For the three and nine months ended June 30,
2019, the Credit Facility and the 2023 Notes had a net change in
unrealized appreciation of $0.4 million and $0.4 million,
respectively. As of June 30, 2020 and September 30, 2019, the net
unrealized depreciation on the Credit Facility and the 2023 Notes
totaled $27.4 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 change in net assets resulting from
operations totaled $12.6 million and $1.4 million, or $0.32 and
$0.04 per share, respectively, for the three and nine months ended
June 30, 2020. This compares to a net change in net assets
resulting from operations of $4.5 million and $4.0 million, or
$0.12 and $0.10 per share, respectively, for the three and nine
months ended June 30, 2019. The increase in the net change in net
assets from operations for the three months ended June 30, 2020
compared to the same period in the prior year was primarily due to
changes in the capital markets. The decrease in the net change in
net assets from operations for the nine months ended June 30, 2020
compared to the same period in the prior year was primarily due to
depreciation of the portfolio 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 nine months ended June 30, 2020 and 2019, inclusive of the
fee on the undrawn commitment on the Credit Facility, amendment
costs and debt issuance costs, was 3.9% and 5.3%, respectively
(excluding amendment and debt issuance costs, amounts were 3.9% and
4.4%, respectively). As of June 30, 2020 and
September 30, 2019, we had $168.4 million and $254.7 million
of unused borrowing capacity under the Credit Facility,
respectively, subject to leverage and borrowing base
restrictions.
As of June 30, 2020 and September 30,
2019, PennantPark Floating Rate Funding I, LLC had $351.6 million
and 265.3 million of outstanding borrowings under the Credit
Facility, respectively. The Credit Facility had a weighted average
interest rate of 2.2% and 4.1%, exclusive of the fee on undrawn
commitments as of June 30, 2020 and September 30, 2019,
respectively.
As of June 30, 2020 and September 30, 2019, we
had cash equivalents of $53.4 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 $63.0
million for the nine months ended June 30, 2020, and our financing
activities provided cash of $53.1 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 $96.0
million for the nine months ended June 30, 2019 and our financing
activities provided cash of $48.4 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 Credit Facility, partially offset by for
distributions paid to stockholders.
DISTRIBUTIONS
During the three and nine months ended June 30,
2020 and 2019, we declared distributions of $0.285 and $0.855 per
share, respectively, for total distributions of $11.1 and $33.2
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.
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. 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. 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.
We had a significant reduction of our net asset
value as of June 30, 2020 as compared to our net asset value as of
September 30, 2019. 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 June 30, 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 June 30, 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
June 30, 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 continue to 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 June 30, 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
|
June 30, 2020 |
|
|
September 30, 2019 |
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments (cost—$956,767,973 and
$886,955,156, respectively) |
$ |
935,279,231 |
|
|
$ |
889,113,264 |
|
Non-controlled, affiliated investments (cost—$21,136,074 and
$23,645,693, respectively) |
|
9,677,605 |
|
|
|
20,430,565 |
|
Controlled, affiliated investments (cost—$176,312,500 and
$174,562,500, respectively) |
|
159,396,415 |
|
|
|
172,163,080 |
|
Total of investments (cost—$1,154,216,547 and $1,085,172,349,
respectively) |
|
1,104,353,251 |
|
|
|
1,081,706,909 |
|
Cash and cash equivalents
(cost—$53,473,103 and $63,367,237, respectively) |
|
53,405,925 |
|
|
|
63,337,728 |
|
Receivable for investments
sold |
|
8,441,713 |
|
|
|
2,997,546 |
|
Interest receivable |
|
3,626,998 |
|
|
|
3,892,292 |
|
Distribution receivable from
controlled, affiliated investment |
|
1,225,000 |
|
|
|
— |
|
Prepaid expenses and other
assets |
|
614,370 |
|
|
|
441,337 |
|
Total assets |
|
1,171,667,257 |
|
|
|
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—$351,598,500 and $265,307,500, respectively) |
|
340,926,080 |
|
|
|
263,988,583 |
|
2023 Notes payable, at fair value
(par—$138,579,858) |
|
121,853,269 |
|
|
|
135,240,084 |
|
2031 Asset-Backed Debt, net
(par—$228,000,000) |
|
224,708,624 |
|
|
|
224,321,845 |
|
Interest payable on debt |
|
2,644,746 |
|
|
|
3,275,481 |
|
Base management fee payable |
|
2,872,725 |
|
|
|
2,728,019 |
|
Performance-based incentive fee
payable |
|
1,975,831 |
|
|
|
2,532,205 |
|
Accrued other expenses |
|
1,668,257 |
|
|
|
1,514,943 |
|
Total liabilities |
|
700,332,879 |
|
|
|
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 |
|
(67,337,222 |
) |
|
|
(35,614,089 |
) |
Total net assets |
$ |
471,334,378 |
|
|
$ |
503,057,511 |
|
Total liabilities and net assets |
$ |
1,171,667,257 |
|
|
$ |
1,152,375,812 |
|
Net asset value per
share |
$ |
12.16 |
|
|
$ |
12.97 |
|
PENNANTPARK FLOATING RATE CAPITAL LTD.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-controlled,
non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
$ |
17,543,157 |
|
|
$ |
16,670,408 |
|
|
$ |
56,760,434 |
|
|
$ |
50,888,582 |
|
Other income |
|
820,997 |
|
|
|
974,760 |
|
|
|
2,734,600 |
|
|
|
2,971,768 |
|
From non-controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
195,904 |
|
|
|
305,217 |
|
|
|
655,029 |
|
|
|
1,082,208 |
|
Other income |
|
36,170 |
|
|
|
109,863 |
|
|
|
36,170 |
|
|
|
124,734 |
|
From controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
2,944,290 |
|
|
|
3,240,760 |
|
|
|
9,169,399 |
|
|
|
9,273,287 |
|
Dividend |
|
1,225,000 |
|
|
|
1,575,000 |
|
|
|
4,375,000 |
|
|
|
4,725,000 |
|
Total investment income |
|
22,765,518 |
|
|
|
22,876,008 |
|
|
|
73,730,632 |
|
|
|
69,065,579 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee |
|
2,872,725 |
|
|
|
2,564,074 |
|
|
|
8,651,825 |
|
|
|
7,481,546 |
|
Performance-based incentive fee |
|
1,975,831 |
|
|
|
2,350,270 |
|
|
|
7,228,690 |
|
|
|
3,671,908 |
|
Interest and expenses on debt |
|
6,653,045 |
|
|
|
5,663,183 |
|
|
|
21,586,859 |
|
|
|
16,284,841 |
|
Administrative services expenses |
|
350,000 |
|
|
|
350,000 |
|
|
|
1,050,000 |
|
|
|
1,200,000 |
|
Other general and administrative expenses |
|
616,077 |
|
|
|
616,077 |
|
|
|
1,848,230 |
|
|
|
1,848,229 |
|
Expenses before amendment costs, debt issuance costs and
provision for taxes: |
|
12,467,678 |
|
|
|
11,543,604 |
|
|
|
40,365,604 |
|
|
|
30,486,524 |
|
Credit Facility amendment costs and debt issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,517,292 |
|
Provision for taxes |
|
100,000 |
|
|
|
— |
|
|
|
300,000 |
|
|
|
— |
|
Total expenses |
|
12,567,678 |
|
|
|
11,543,604 |
|
|
|
40,665,604 |
|
|
|
35,003,816 |
|
Net investment income |
|
10,197,840 |
|
|
|
11,332,404 |
|
|
|
33,065,028 |
|
|
|
34,061,763 |
|
Realized and unrealized
gain (loss) on investments and debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized loss on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
(1,694,710 |
) |
|
|
(11,230,236 |
) |
|
|
(2,281,683 |
) |
|
|
(9,227,422 |
) |
Non-controlled and controlled, affiliated investments |
|
(5,683,145 |
) |
|
|
(7,164,304 |
) |
|
|
(5,683,145 |
) |
|
|
(7,164,304 |
) |
Net realized loss on investments |
|
(7,377,855 |
) |
|
|
(18,394,540 |
) |
|
|
(7,964,828 |
) |
|
|
(16,391,726 |
) |
Net change in unrealized
appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
13,962,606 |
|
|
|
8,492,044 |
|
|
|
(23,662,521 |
) |
|
|
(9,292,141 |
) |
Controlled and non-controlled, affiliated investments |
|
7,931,471 |
|
|
|
3,444,481 |
|
|
|
(22,751,006 |
) |
|
|
(3,892,061 |
) |
Debt (appreciation) depreciation |
|
(12,158,917 |
) |
|
|
(355,573 |
) |
|
|
22,740,317 |
|
|
|
(443,549 |
) |
Net change in unrealized appreciation (depreciation) on
investments and debt |
|
9,735,160 |
|
|
|
11,580,952 |
|
|
|
(23,673,210 |
) |
|
|
(13,627,751 |
) |
Net realized and
unrealized gain (loss) from investments and debt |
|
2,357,305 |
|
|
|
(6,813,588 |
) |
|
|
(31,638,038 |
) |
|
|
(30,019,477 |
) |
Net increase in net
assets resulting from operations |
$ |
12,555,145 |
|
|
$ |
4,518,816 |
|
|
$ |
1,426,990 |
|
|
$ |
4,042,286 |
|
Net increase in net assets
resulting from operations per common share |
$ |
0.32 |
|
|
$ |
0.12 |
|
|
$ |
0.04 |
|
|
$ |
0.10 |
|
Net investment income per common
share |
$ |
0.26 |
|
|
$ |
0.29 |
|
|
$ |
0.85 |
|
|
$ |
0.88 |
|
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 $3.6
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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