PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I, LLC Complete...
January 28 2021 - 9:01AM
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 $300.7
million debt securitization in the form of a collateralized loan
obligation (“CLO”). The debt issued in the CLO (the “Debt”) is
structured in the following manner:
Class |
Par Amount($ in millions) |
% of Capital Structure |
Coupon |
Expected Rating(S&P) |
Issuance Price |
A-1 Notes |
41,000,000 |
13.6% |
|
3 Mo LIBOR + 1.90% |
AAA |
100.0% |
|
A-1 Loans |
130,000,000 |
43.2% |
|
3 Mo LIBOR + 1.90% |
AAA |
100.0% |
|
A-2 |
6,000,000 |
2.0% |
|
3 Mo LIBOR + 2.25% |
AAA |
100.0% |
|
B-1 |
15,500,000 |
5.2% |
|
3 Mo LIBOR + 2.60% |
AA |
100.0% |
|
B-2 |
8,500,000 |
2.8% |
|
3.14% |
AA |
100.0% |
|
C |
27,000,000 |
9.0% |
|
3 Mo LIBOR + 4.25% |
A |
100.0% |
|
D |
18,000,000 |
6.0% |
|
3 Mo LIBOR + 6.50% |
BBB- |
100.0% |
|
E |
18,000,000 |
6.0% |
|
NA |
BB- |
NA |
Sub Notes |
36,700,000 |
12.2% |
|
|
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 95% funded at close. The proceeds
from the Debt will be used to repay a portion of PSSL’s $325
million secured credit facility. In addition, PSSL acts as
retention holder in the transaction to retain exposure to the
performance of the securitized assets. GreensLedge Capital Markets
LLC acted as lead placement agent on the CLO Transaction.
“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 $3.5 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 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 EfratPennantPark Floating Rate Capital Ltd.(212)
905-1000www.pennantpark.com
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