PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I, LLC Prices ...
December 24 2020 - 4:05PM
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 priced 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.
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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