PennantPark Floating Rate Capital Ltd
NYSE:PFLT
PennantPark Floating Rate Capital Ltd
PennantPark Floating Rate Capital Ltd is a non-diversified closed-end management investment company invests in small market-cap and public middle market companies located in the U.S. and to a limited extent non-US companies. The company is headquartered in New York City, New York. The company went IPO on 2011-04-08. The Company’s investment objectives are to generate both current income and capital appreciation while seeking to preserve capital. The firm seeks to achieve its investment objectives by investing primarily in loans bearing variable rates of interest or floating rate loans and other investments made to United States middle-market private companies whose debt is rated below investment grade. Interest on floating rate loans is determined periodically, on the basis of a floating base lending rate, such as LIBOR, with or without a floor, plus a fixed spread. Under normal market conditions, the Company generally expect that at least 80% of the value of its net assets plus any borrowings for investment purposes or its Managed Assets, will be invested in floating rate loans and other investments bearing a variable rate of interest.
PennantPark Floating Rate Capital Ltd is a non-diversified closed-end management investment company invests in small market-cap and public middle market companies located in the U.S. and to a limited extent non-US companies. The company is headquartered in New York City, New York. The company went IPO on 2011-04-08. The Company’s investment objectives are to generate both current income and capital appreciation while seeking to preserve capital. The firm seeks to achieve its investment objectives by investing primarily in loans bearing variable rates of interest or floating rate loans and other investments made to United States middle-market private companies whose debt is rated below investment grade. Interest on floating rate loans is determined periodically, on the basis of a floating base lending rate, such as LIBOR, with or without a floor, plus a fixed spread. Under normal market conditions, the Company generally expect that at least 80% of the value of its net assets plus any borrowings for investment purposes or its Managed Assets, will be invested in floating rate loans and other investments bearing a variable rate of interest.
Net Investment Income: Core and GAAP net investment income for the quarter was $0.27 per share, covering the dividend as the company ramps its new joint venture.
NAV Decline: Net asset value fell to $10.49 per share, down 3.1% from last quarter, mainly due to unrealized losses in select investments from the 2021 vintage.
New Joint Venture: The new PSSL 2 joint venture launched, with a current portfolio of $326 million and an objective to scale over $1 billion in assets.
Portfolio Quality: Only 0.5% of the portfolio is on nonaccrual at cost, and software exposure is kept low at 4.4%, providing a conservative risk profile.
M&A Activity: Management sees increased M&A in the core middle market, which is expected to drive deal flow and repayments, supporting portfolio rotation and dividend coverage.
