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PennantPark Floating Rate Capital Ltd.'s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I LLC Completes $301 Million Securitization, Marking Continued Growth in PennantPark's Middle Market Platform with Twelve CLOs Under Management

1. PFLT closed a $301 million CLO, enhancing capital position. 2. The CLO targets middle-market assets, reflecting strong demand. 3. Subordinated Notes retained, indicating confidence in securitized performance. 4. CLO 12 enables participation in favorable vintage opportunities. 5. PFLT managing $4.0 billion in CLO assets shows growth potential.

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FAQ

Why Bullish?

The successful CLO issuance indicates financial strength and market confidence, reminiscent of past successful financing rounds that bolstered PFLT’s valuation.

How important is it?

The issuance of the CLO, significant in size and structure, bolsters PFLT's financial foundation, which is crucial for future growth.

Why Long Term?

Securities structured for stability over long terms, capitalizing on market opportunities can lead to sustained revenue growth.

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PSSLCLOAPO
MIAMI, April 15, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (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 $301 million debt securitization in the form of a collateralized loan obligation (“CLO” or “Securitization”). The debt issued in this Securitization (the “Debt”) is structured in the following manner: ClassPar Amount($ in millions)% of CapitalStructureCouponExpected Rating(S&P)A-1 Loans$30,000,0009.9%3 Mo SOFR + 1.45%AAAA-1 Notes141,000,00046.8%3 Mo SOFR + 1.45%AAAA-2 Notes12,000,0004.0%3 Mo SOFR + 1.60%AAAB21,000,0007.0%3 Mo SOFR + 1.85%AAC24,000,0008.0%3 Mo SOFR + 2.30%AD18,000,0006.0%3 Mo SOFR + 3.30%BBB-Sub Notes55,020,00018.3% NRTotal$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. 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 $10 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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