As a result of expanded lender partner relationships, PennantPark Floating Rate Capital (PFLT) has upsized its credit facility, led by Truist Bank, to $611 million from $436 million. Pricing on this facility remained unchanged at SOFR plus 236 basis points.
“We are appreciative of the support from all of our existing lending partners and pleased to have expanded our relationships. Their support highlights the confidence they have in our excellent long term track record,” Arthur Penn, chairman and CEO of PFLT, said. “This increased facility will expand our ability to serve middle-market sponsor and borrower clients by providing them with more comprehensive senior secured solutions. This enhanced credit facility positions us well to capture the opportunity in the core middle market, where our capital is strategic to our borrowers. As a result, the package of risk adjusted return we receive is attractive and includes higher yields, lower leverage and covenants which are not available in the upper middle market.”
The credit facility is secured by all of the assets held by PennantPark Floating Rate Funding I, a wholly-owned subsidiary of the company, and includes customary covenants, including minimum asset coverage and minimum equity requirements.
