PennantPark Floating Rate Capital Ltd. (PFLT) has announced an increase in its credit facility from $636 million to $736 million, led by Truist Bank. The pricing on the facility remained unchanged at SOFR plus 225 basis points. According to Arthur Penn, the Chairman and CEO of PFLT, the increased facility is expected to expand their ability to serve middle-market sponsor and borrower clients by providing more comprehensive senior secured solutions.
The credit facility is secured by all the assets held by PennantPark Floating Rate Funding I, LLC, a wholly-owned subsidiary of the company, and includes customary covenants such as minimum asset coverage and minimum equity requirements.
PennantPark Floating Rate Capital Ltd. 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. The company may also invest in equity investments from time to time.
PennantPark Investment Advisers, LLC, the manager of PFLT, is a leading middle-market credit platform, managing approximately $8.9 billion of investible capital, including leverage. Since its inception in 2007, the company 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.
It is worth noting that the $100 million increase in the credit facility provides PFLT with additional financial resources to support its growth and strategic initiatives in serving the middle-market sponsor and borrower clients. As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $10.8. Check out the company's full 8-K submission here.
