PennantPark Floating Rate Capital Ltd. amended its credit facility, lowering interest rates and extending terms, benefiting investors.
Quiver AI Summary
PennantPark Floating Rate Capital Ltd. (PFLT) has announced amendments to its credit facility agreement with Truist Bank, which include a reduction in pricing from SOFR plus 225 basis points to SOFR plus 200 basis points, an extension of the reinvestment period to August 2028, and the maturity date to August 2030. Additionally, the maximum first lien advance rate has been increased to 72.5% from 70.0%, although overall commitments have decreased from $736 million to $718 million. CEO Arthur Penn expressed gratitude for the lenders' support, stating that the new terms will benefit investors. The credit facility is secured by the assets of PFLT's subsidiary and includes standard covenants.
Potential Positives
- Amendment of the credit facility led to a reduced interest rate spread, benefiting the company's financial expenses.
- The extension of the reinvestment period until August 2028 provides more time for the company to invest in opportunities, potentially enhancing returns.
- Increasing the maximum first lien advance rate to 72.5% allows for greater leverage on assets, potentially improving capital efficiency.
- The support from lending partners demonstrates confidence in the company's creditworthiness, which could enhance its reputation in the market.
Potential Negatives
- The decrease in commitments from $736 million to $718 million may indicate reduced confidence from lenders or demand for the credit facility.
- The reliance on a credit amendment to lower interest rates may suggest previous financial challenges or higher rates that could affect cash flow.
- The mention of customary covenants, including minimum asset coverage and equity requirements, implies existing financial obligations that the company must manage closely.
FAQ
What recent amendment did PennantPark Floating Rate Capital Ltd. make to its credit facility?
PennantPark amended its credit facility by decreasing pricing and extending the reinvestment and maturity periods.
How much did the commitments decrease in the credit facility amendment?
The commitments decreased from $736 million to $718 million as part of the amendment.
What are the new pricing terms for the credit facility?
The new pricing terms are SOFR plus 200 basis points, down from SOFR plus 225 basis points.
What is the maximum first lien advance rate after the amendment?
The maximum first lien advance rate increased to 72.5% from 70.0% following the credit facility amendment.
Who manages PennantPark Floating Rate Capital Ltd.?
PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC, a prominent middle market credit platform.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PFLT Hedge Fund Activity
We have seen 67 institutional investors add shares of $PFLT stock to their portfolio, and 38 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- INVESCO LTD. added 963,709 shares (+inf%) to their portfolio in Q4 2024, for an estimated $10,533,339
- STRATEGIC FINANCIAL CONCEPTS, LLC added 662,266 shares (+1080.4%) to their portfolio in Q4 2024, for an estimated $7,238,567
- BALYASNY ASSET MANAGEMENT L.P. added 549,905 shares (+57.4%) to their portfolio in Q4 2024, for an estimated $6,010,461
- MARSHALL WACE, LLP removed 493,376 shares (-79.8%) from their portfolio in Q4 2024, for an estimated $5,392,599
- MILLENNIUM MANAGEMENT LLC added 314,064 shares (+94.4%) to their portfolio in Q4 2024, for an estimated $3,432,719
- SOUND INCOME STRATEGIES, LLC added 265,162 shares (+8.0%) to their portfolio in Q1 2025, for an estimated $2,967,162
- JPMORGAN CHASE & CO removed 250,725 shares (-99.6%) from their portfolio in Q4 2024, for an estimated $2,740,424
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MIAMI, April 22, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (“PFLT”) (NYSE: PFLT) announced that it amended its credit facility agreement led by Truist Bank (the “Credit Facility”). As part of the amendment, PFLT decreased pricing to SOFR plus 200 basis points from SOFR plus 225 basis points, extended the reinvestment period one year to August 2028, extended the maturity date one year to August 2030, and increased the maximum first lien advance rate to 72.5% from 70.0%. As part of the amendment, commitments decreased from $736 million to $718 million.
“We are appreciative of the support from our lending partners. The beneficial terms, lowering the interest rate spread and increasing advance rates, are a terrific result in the current market, which will benefit our investors,” said Arthur Penn, Chairman and Chief Executive Officer of PFLT.
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 $10 billion of investible capital, including leverage. 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 Miami, and has offices in New York, Chicago, Houston, Los Angeles and Amsterdam.
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
