MIAMI — PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) today announced that PennantPark Senior Secured Loan Fund I LLC (“PSSL”) through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO 12, LLC (“CLO 12”) has closed a four-year reinvestment period, twelve-year final maturity $301 million debt securitization in the form of a collateralized loan obligation (“CLO” or “Securitization”).
The debt issued in this Securitization (the “Debt”) is structured in the following manner:
| Class | Par Amount ($ in millions) | % of Capital Structure | Coupon | Expected Rating (S&P) |
| A-1 Loans | $30,000,000 | 9.9% | 3 Mo SOFR + 1.45% | AAA |
| A-1 Notes | 141,000,000 | 46.8% | 3 Mo SOFR + 1.45% | AAA |
| A-2 Notes | 12,000,000 | 4.0% | 3 Mo SOFR + 1.60% | AAA |
| B | 21,000,000 | 7.0% | 3 Mo SOFR + 1.85% | AA |
| C | 24,000,000 | 8.0% | 3 Mo SOFR + 2.30% | A |
| D | 18,000,000 | 6.0% | 3 Mo SOFR + 3.30% | BBB- |
| Sub Notes | 55,020,000 | 18.3% | NR | |
| Total | $301,020,000 |
“This transaction demonstrates PennantPark’s resilience and ability to raise attractive long-term financing with our joint venture partner, especially in these challenging capital markets conditions in which interest rate volatility and uncertain economic prospects have disrupted credit markets,” said Arthur Penn, Chief Executive Officer. “We are particularly pleased to have achieved our lowest AAA pricing in our platform’s history which further enhances our strong capital position allowing us to participate in today’s excellent vintage of both primary and secondary opportunities. With the closing of CLO 12, PennantPark now manages approximately $4.0 billion in CLO middle market assets, and we look forward to continued growth with the support of our current and new investors.”
PSSL will continue to retain all of the Subordinated Notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2029 and the Debt is scheduled to mature in April 2037. The term debt securitization is expected to be approximately 100% 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 will act as retention holder in the transaction to retain exposure to the performance of the securitized assets. CIBC World Markets Corp. acted as lead placement agent on the Securitization.
