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PennantPark Floating Rate Capital Ltd. Closes New Securitization, Substantially Lowering Borrowing Costs

1. PFLT completed a $474.6M CLO term debt securitization. It involves a four-year reinvestment and 12-year maturity. 2. The deal achieved the lowest spread financing in 14-year history. The weighted average spread was 159bps. 3. Cost of capital reduced by 66bps compared to previous bank financing. This supports growth and net investment income. 4. Over 75 unique investors are now on board. The transaction is PFLT's largest securitization to date.

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Why Bullish?

The reduction in financing cost and lowest spread in company history are positive catalysts. Similar restructurings have historically led to improved returns.

How important is it?

The significant securitization, cost reduction, and new investor participation provide a strong foundation for long-term growth.

Why Long Term?

With debt maturing in 2037 and a strong investor base, benefits are expected over an extended period.

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MIAMI, Feb. 21, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) today announced that it completed a $474.6 million term debt securitization transaction with a four-year reinvestment period, twelve-year final maturity in the form of a collateralized loan obligation (“CLO”). The debt issued in this securitization transaction (the “ Debt”) is structured in the following manner: ClassPar Amount($ in millions)% of Capital StructureCouponExpected Rating(S&P)Issuance PriceA-1L-A Loans$10,000,0002.1%3 Mo SOFR + 1.49%AAA100.0%A-1L-B Loans 45,000,0009.5%3 Mo SOFR + 1.49%AAA100.0%A-1 Notes 220,500,00046.5%3 Mo SOFR + 1.49%AAA100.0%A-2 Notes 19,000,0004.0%3 Mo SOFR + 1.60%AAA100.0%B Notes 28,500,0006.0%3 Mo SOFR + 1.75%AA100.0%C Notes 38,000,0008.0%3 Mo SOFR + 2.20%A100.0%D Notes 28,500,0006.0%         RetainedBBB-100.0%Subordinated Notes 85,100,00017.9% NRNATotal$474,600,000      “We are delighted to close on the lowest spread debt financing in PFLT’s 14-year history, which will support the Company’s growth and net investment income. The weighted average spread of 159 basis points on $361 million of financing is a 66-basis point reduction from the bank facility this capital is replacing. We are also thrilled about the continued momentum and positive market recognition that our senior lending strategy has received, which is demonstrative of our industry-leading team as well as the merits of our disciplined and differentiated approach to core middle market credit investing,” said Arthur Penn, Chief Executive Officer. “We are proud to have onboarded several new investors into our securitization liabilities as part of this transaction and now have over 75 unique investors across our securitization platform. With their support, we were able to issue our largest securitization to date while also achieving our lowest cost of capital to date. Together, these attributes will continue to enable and further enhance PFLT’s ability to offer attractive risk-adjusted returns to its investors. With the closing of its eleventh securitization, PennantPark Investment Advisers, LLC currently manages approximately $3.7 billion in CLO assets, and we look forward to continued growth with the support of our current and new investors.” PFLT will continue to retain the Class D Notes and the Subordinated Notes. The reinvestment period for the term debt securitization ends no later than 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. In addition, the Company acts as retention holder in the transaction to retain exposure to the performance of the securitized assets. GreensLedge Capital Markets LLC acted as lead placement agent on the CLO transaction. The notes offered as part of the term debt securitization have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state “blue sky” laws, and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements. The CLO is a form of secured financing incurred and consolidated by the Company. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD. PennantPark Floating Rate Capital Ltd. 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. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC. ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing approximately $9.5 billion of investable capital, including available leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC 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. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, and Amsterdam. FORWARD-LOOKING STATEMENTS This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made. CONTACT:Richard T. Allorto, Jr.PennantPark Floating Rate Capital Ltd. (212) 905-1000www.pennantpark.com Source: PennantPark Floating Rate Capital Ltd.

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