PennantPark Floating Rate Capital recently released its 10-K report, revealing key insights into the company's business operations and financial performance. The company, a business development company, primarily invests in floating rate loans, debt, equity, and other investments in U.S. middle-market companies, with a focus on private or thinly traded public companies with market capitalizations of less than $250 million. Its investments typically range between $2 million and $20 million, and it primarily targets companies not rated by national rating agencies, with ratings between BB and CCC under the Standard & Poor's system. The fund also invests in equity securities, such as preferred stock, common stock, warrants, or options received in connection with debt investments or through direct investments.
In the recently released 10-K report, PennantPark Floating Rate Capital discussed forward-looking statements, highlighting various factors that could impact its future operating results, business prospects, and the performance of its portfolio companies. These factors include changes in political, economic, or industry conditions, interest rate environment, and the impact of investments, among others. The report emphasized the importance of not placing undue influence on forward-looking statements, as actual results could differ materially from the projections due to various factors and uncertainties.
The report also provided an overview of the company's financial condition and results of operations, emphasizing its focus on generating current income and capital appreciation while seeking to preserve capital. PennantPark Floating Rate Capital detailed its revenue sources, including interest income on debt securities, capital gains, and dividends on investment securities, as well as various fees from portfolio companies. The company's primary operating expenses were outlined, including management fees, interest expense, and other costs associated with its operations and transactions.
Additionally, the report highlighted the organization and structure of PennantPark Floating Rate Capital, outlining its status as a closed-end, externally managed, non-diversified investment company that has elected to be treated as a Business Development Company (BDC) under the 1940 Act. The company's investment activities are managed by an Investment Adviser, and it has entered into equity distribution agreements to facilitate the sale of shares of its common stock.
Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $11.05. Check out the company's full 10-K submission here.
