Daily News: May 15, 2018

Capital One Agents $420MM PennantPark L/C

Capital One served as administrative agent on a $420 million, five-year senior secured line of credit for PennantPark Senior Secured Loan Fund I, a portfolio company of PennantPark Floating Rate Capital.

The credit facility initially closed in June 2017 at $100 million and was increased to $210 million in December 2017.

“We worked closely with PennantPark to create a facility that could be scaled over time to meet the company’s growing demand for capital,” said Matt Tallo, managing director at Capital One’s Financial Institutions Group. “PennantPark is a premier middle-market lender and we look forward to being a part of their continued success.”

“Capital One has been a very responsive partner,” said Art Penn, PennantPark’s founder, CEO and chairman. “The team worked with us to design a customized and flexible leverage facility that allows our joint venture to generate higher returns. They were able to accommodate our need for additional capacity with a syndicate of highly regarded financial institutions, many of which are new relationships for PennantPark.”

PennantPark Floating Rate Capital 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.