PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) (TASE: PFLT)
announced today financial results for the fourth quarter and fiscal
year ended September 30, 2021.
HIGHLIGHTSQuarter ended September 30,
2021($ in millions, except per share amounts)
Assets and Liabilities: |
|
|
|
|
Investment portfolio (1) |
|
$ |
1,081.6 |
|
PSSL investment portfolio |
|
$ |
564.8 |
|
Net assets |
|
$ |
490.6 |
|
GAAP net asset value per share |
|
$ |
12.62 |
|
Decrease in GAAP net asset value per share |
|
|
(1.5 |
)% |
Adjusted net asset value per share (2) |
|
$ |
12.43 |
|
Decrease in adjusted net asset value per share (2) |
|
|
(1.5 |
)% |
|
|
|
|
|
Credit Facility |
|
$ |
218.9 |
|
2023 Notes |
|
$ |
111.1 |
|
2026 Notes |
|
$ |
97.2 |
|
2031 Asset-Backed Debt |
|
$ |
225.5 |
|
Regulatory Debt to Equity |
|
|
1.36x |
|
Regulatory Net Debt to Equity (3) |
|
|
1.25x |
|
GAAP Net Debt to Equity (4) |
|
|
1.23x |
|
|
|
|
|
|
Yield on debt investments at
quarter-end |
|
|
7.4 |
% |
|
|
Quarter Ended September 30, 2021 |
|
|
Year Ended September 30,
2021 |
|
Operating Results: |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
9.3 |
|
|
$ |
39.6 |
|
GAAP net investment income per share |
|
$ |
0.24 |
|
|
$ |
1.02 |
|
Credit facility amendment costs per share |
|
$ |
0.04 |
|
|
|
0.04 |
|
Core net investment income per share (5) |
|
$ |
0.28 |
|
|
|
1.06 |
|
Distributions declared per share |
|
$ |
0.285 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
Portfolio Activity: |
|
|
|
|
|
|
|
|
Purchases of investments |
|
$ |
185.7 |
|
|
$ |
661.1 |
|
Sales and repayments of investments |
|
$ |
136.6 |
|
|
$ |
702.1 |
|
|
|
|
|
|
|
|
|
|
Number of new portfolio companies invested |
|
16 |
|
|
35 |
|
Number of existing portfolio companies invested |
|
18 |
|
|
68 |
|
Number of ending portfolio companies |
|
110 |
|
|
110 |
|
(1) |
Includes investments in PennantPark Senior Secured Loan Fund I LLC
(“PSSL”), an unconsolidated joint venture, totaling $185.7 million,
at fair value. |
(2) |
This is a
non-GAAP financial measure. The Company believes that this number
provides useful information to investors and management because it
reflects the Company’s financial performance excluding the impact
of the $7.2 million unrealized loss on our multi-currency senior
secured revolving credit facility, as amended and restated, with
Truist Bank (formerly SunTrust Bank) and other lenders (the “Credit
Facility”), which was refinanced on August 12, 2021, and our 4.3%
Series A notes due 2023, (the “2023 Notes”). The presentation of
this additional information is not meant to be considered in
isolation or as a substitute for financial results prepared in
accordance with GAAP. |
(3) |
This is a
non-GAAP financial measure. The Company believes that this number
provides useful information to investors and management because it
reflects the Company’s financial performance net of $49.8 million
of cash and equivalents. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for financial results prepared in accordance with
GAAP. |
(4) |
This is a
non-GAAP financial measure. The Company believes that this number
provides useful information to investors and management because it
reflects the Company’s financial performance including the impact
of the $7.2 million unrealized loss on the Credit Facility and the
2023 Notes net of $49.8 million of cash and equivalents. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for financial results
prepared in accordance with GAAP. |
(5) |
Core net
investment income is a non-GAAP financial measure. The Company
believes that core net investment income provides useful
information to investors and management because it reflects the
Company’s financial performance excluding a one-time expense of
$2.9 million associated with entering into our multi-currency
senior secured revolving credit facility with Truist Bank and other
lenders on August 12, 2021 (the “New Credit Facility”) and the
associated incentive fee reduction of $1.4 million. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for financial results
prepared in accordance with GAAP. Unless otherwise specified, the
term “Credit Facility” refers to the “New Credit Facility” when
associated with the period subsequent to the termination of the
Credit Facility on August 12, 2021. |
CONFERENCE CALL AT 9:00 A.M. EST ON
NOVEMBER 18, 2021
PennantPark Floating Rate Capital Ltd. (“we,”
“our,” “us” or the “Company”) will host a conference call at 9:00
a.m. (Eastern Time) on Thursday, November 18, 2021 to discuss its
financial results. All interested parties are welcome to
participate. You can access the conference call by dialing
toll-free (866) 548-4713 approximately 5-10 minutes prior to the
call. International callers should dial (323) 794-2093. All callers
should reference conference ID #6282998 or PennantPark Floating
Rate Capital Ltd. An archived replay of the call will be available
through December 2, 2021, by calling toll-free (888) 203-1112.
International callers please dial (719) 457-0820. For all phone
replays, please reference conference ID #6282998.
PORTFOLIO AND INVESTMENT
ACTIVITY
“PFLT continues to be well positioned as a
leading provider of consistent, credible first lien capital to the
core middle market. Due to the relative lack of competition in the
core middle market, lenders can generally achieve higher returns
with lower risk,” said Arthur Penn, Chairman and CEO.
“Additionally, PFLT is poised to grow Net Investment Income through
growing its balance sheet to its target leverage ratio, growing the
PSSL joint venture and rotating equity investments in its
successful equity co-investment portfolio.”
As of September 30, 2021, our portfolio totaled
$1,081.6 million and consisted of $934.4 million of first lien
secured debt (including $140.9 million in PSSL), $8.9 million of
second lien secured debt and $138.3 million of preferred and common
equity (including $44.9 million in PSSL). Our debt portfolio
consisted of 99% variable-rate investments. As of September 30,
2021, we had two portfolio companies on non-accrual, representing
2.7% and 2.6% of our overall portfolio on a cost and fair value
basis, respectively. Overall, the portfolio had net unrealized
appreciation of $11.0 million. Our overall portfolio consisted of
110 companies with an average investment size of $9.8 million, had
a weighted average yield on debt investments of 7.4%, and was
invested 86% in first lien secured debt (including 13% in PSSL), 1%
in second lien secured debt and 13% in preferred and common equity
(including 4% in PSSL). As of September 30, 2021, 99% of the
investments held by PSSL were first lien secured debt. For more
information on how the COVID-19 pandemic has affected our business
and results of operations, see our Annual Report on Form 10-K for
the fiscal year ended September 30, 2021, including “Item 7.
Management's Discussion and Analysis of Financial Condition and
Results of Operations – COVID-19 Developments” and “Item 1A. Risk
Factors” therein.
As of September 30, 2020, our portfolio totaled
$1,086.9 million and consisted of $968.6 million of first lien
secured debt (including $125.4 million in PSSL), $29.9 million of
second lien secured debt and $88.4 million of preferred and common
equity (including $39.9 million in PSSL). Our debt portfolio
consisted of 99% variable-rate investments. As of September 30,
2020, we had three portfolio companies on non-accrual, representing
2.1% and 1.8% of our overall portfolio on a cost and fair value
basis, respectively. Overall, the portfolio had net unrealized
depreciation of $29.9 million. Our overall portfolio consisted of
102 companies with an average investment size of $10.7 million, had
a weighted average yield on debt investments of 7.3%, and was
invested 89% in first lien secured debt (including 12% in PSSL), 3%
in second lien secured debt and 8% in preferred and common equity
(including 4% in PSSL). As of September 30, 2020, 97% of the
investments held by PSSL were first lien secured debt.
For the three months ended September 30,
2021, we invested $185.7 million in 16 new and 18 existing
portfolio companies with a weighted average yield on debt
investments of 7.3%. Sales and repayments of investments for the
same period totaled $136.6 million. This compares to the three
months ended September 30, 2020, in which we invested $15.3
million in one new and nine existing portfolio companies with a
weighted average yield on debt investments of 7.8%. Sales and
repayments of investments for the same period totaled $49.7
million.
For the year ended September 30, 2021, we
invested $661.1 million in 35 new and 68 existing portfolio
companies with a weighted average yield on debt investments of
7.4%. Sales and repayments of investments for the same period
totaled $702.1 million.
For the year ended September 30, 2020, we
invested $436.7 million in 19 new and 95 existing portfolio
companies with a weighted average yield on debt investments of
8.0%. Sales and repayments of investments for the same period
totaled $396.9 million.
PennantPark Senior Secured Loan Fund I
LLC
As of September 30, 2021, PSSL’s portfolio
totaled $564.8 million, consisted of 74 companies with an average
investment size of $7.6 million and had a weighted average yield on
debt investments of 7.1%. As of September 30, 2020, PSSL’s
portfolio totaled $393.0 million, consisted of 45 companies with an
average investment size of $8.7 million and had a weighted average
yield on debt investments of 6.8%.
For the three months ended September 30,
2021, PSSL invested $76.6 million in 12 new and three existing
portfolio companies with a weighted average yield on debt
investments of 7.3%. PSSL’s sales and repayments of investments for
the same period totaled $36.7 million. For the three months ended
September 30, 2020, PSSL did not make any investments. PSSL’s
sales and repayments of investments for the same period totaled
$69.9 million.
For the year ended September 30, 2021, PSSL
invested $354.4 million (of which $285.7 million was purchased from
the Company) in 42 new and 29 existing portfolio companies with a
weighted average yield on debt investments of 7.2%. PSSL’s sales
and repayments of investments for the same period totaled $199.8
million.
For the year ended September 30, 2020, PSSL
invested $87.1 million (of which $86.7 million was purchased from
the Company) in 11 new and two existing portfolio companies with a
weighted average yield on debt investments of 7.4%. PSSL’s sales
and repayments of investments for the same period totaled $172.6
million.
RECENT DEVELOPMENTS
On October 6, 2021, we issued an additional $85
million aggregate principal amount of our 4.25% Notes due 2026 (the
“Add-On Notes”) in an add-on offering (the “Add-On Offering”)
pursuant to the Base Indenture, dated March 23, 2021 (the “Base
Indenture”), between the Company and American Stock Transfer &
Trust Company, LLC (the “Trustee”), as supplemented by the First
Supplemental Indenture, dated March 23, 2021, between the Company
and the Trustee (together with the Base Indenture, the
“Indenture”). In connection with the Add-On Offering, the Company
entered into an underwriting agreement (the “Underwriting
Agreement”), by and among the Company, PennantPark Investment
Advisers, LLC (the “Investment Adviser”) and Goldman Sachs &
Co. LLC, Keefe, Bruyette & Woods, Inc. and Truist Securities,
Inc., as representatives of the several underwriters named on
Schedule A to the Underwriting Agreement.
The Add-On Notes constitute a further issuance
of the $100 million aggregate principal amount of the 2026 Notes
issued by the Company on March 23, 2021 (the “Existing Notes”)
under the Indenture.
The Add-On Notes are treated as a single series
with the Existing Notes and have the same terms as the Existing
Notes, other than the issue date and the offering price. The Add-On
Notes have the same CUSIP number and are fungible and rank equally
with the Existing Notes. Upon issuance of the Add-On Notes, the
outstanding aggregate principal amount of the Company’s 4.25% notes
due 2026 is $185 million.
Subsequent to quarter end, PFLT had new funded investments of
$82.3 million, net of sales and repayments. PSSL had new
funded investments of $23.3 million, net of sales and
repayments.
RESULTS OF OPERATIONS
Set forth below are the results of operations
for the years ended September 30, 2021 and 2020.
Investment Income
Investment income for the three months ended
September 30, 2021 and 2020 was $21.6 million and $21.8
million, respectively, and was primarily attributable to $18.6
million and $19.3 million from first lien secured debt and $3.0
million and $2.5 million from other investments, respectively.
Investment income for the year ended September
30, 2021 was $82.7 million and was attributable to $72.1 million
from first lien secured debt and $10.6 million from other
investments. The decrease in investment income compared to the same
periods in the prior year was primarily due to a decrease in the
size of our portfolio and in the London Inter-Bank Offered Rate
(“LIBOR”).
Investment income for the year ended September
30, 2020 was $95.5 million and was attributable to $86.8 million
from first lien secured debt and $8.7 million from other
investments.
Expenses
Expenses for the three months ended
September 30, 2021 and 2020 totaled $12.3 million and $10.3
million, respectively. Base management fee totaled $2.7 million and
$2.8 million, incentive fee totaled $0.6 million and $2.1 million,
debt related interest and expenses totaled $8.5 million (including
$2.9 million attributable to fees associated with entering into the
New Credit Facility) and $5.5 million, general and administrative
expenses totaled $0.4 million and $1.0 million and provision for
taxes totaled $0.1 million and $0.1 million, respectively, for the
same periods.
Expenses for the years ended September 30, 2021
and 2020 totaled $43.1 million and $52.1 million, respectively.
Base management fee for the same periods totaled $10.7 million and
$11.4 million, incentive fee totaled $5.3 million and $9.3 million,
debt related interest and expenses totaled $24.5 million (including
$2.9 million attributable to fees associated with entering into the
New Credit Facility) and $27.1 million, general and administrative
expenses totaled $2.1 million and $3.9 million and provision for
taxes totaled $0.4 million and $0.4 million, respectively, for the
same periods. The decrease in expenses compared to the prior year
was primarily due to a decrease in management fees under our
Investment Management Agreement with the Investment Advisor and
debt related interest and expenses.
Net Investment Income
Net investment income totaled $9.3 million, or
$0.24 per share, and $10.3 million, or $0.27 per share, for the
three months ended September 30, 2021 and 2020,
respectively.
Net investment income totaled $39.6 million, or
$1.02 per share, and $43.4 million, or $1.12 per share, for the
years ended September 30, 2021 and 2020, respectively. The decrease
in net investment income compared to the prior year was primarily
due to a decrease in the size of our portfolio and in LIBOR.
Net Realized Gains or
Losses
Sales and repayments of investments for the
three months ended September 30, 2021 and 2020 totaled $136.7
million and $49.7 million, respectively. Net realized gain (losses)
totaled $2.5 million and $(4.7) million for the same periods,
respectively.
Sales and repayments of investments for the
years ended September 30, 2021 and 2020 totaled $702.1 million and
$396.9 million, respectively. Net realized losses totaled $12.8
million and $12.7 million for the same periods, respectively. The
change in realized losses was primarily due to changes in the
market conditions of our investments and the values at which they
were realized.
Unrealized Appreciation or Depreciation
on Investments, the Credit Facility and the 2023 Notes
For the three months ended September 30,
2021 and 2020, we reported a net change in unrealized
(depreciation) appreciation on investments of $(7.5) million and
$19.9 million, respectively. For the years ended September 30, 2021
and 2020, we reported net change in unrealized appreciation
(depreciation) on investments of $41.3 million and $(26.5) million,
respectively. As of September 30, 2021 and 2020, our net unrealized
appreciation (depreciation) on investments totaled $11.0 million
and $(29.9) million, respectively. The net change in unrealized
appreciation/depreciation on our investments for the year ended
September 30, 2021 compared to the prior year was primarily due to
changes in the capital market conditions as well as the financial
performance of certain portfolio companies primarily driven by the
market disruption caused by the COVID-19 pandemic and the
uncertainty surrounding its continued adverse economic impact. For
more information on how the COVID-19 pandemic has affected our
business and results of operations, see our Annual Report on Form
10-K for the fiscal year ended September 30, 2021, including “Item
7. Management's Discussion and Analysis of Financial Condition and
Results of Operations – COVID-19 Developments” and “Item 1A. Risk
Factors” therein.
For the three months ended September 30,
2021 and 2020, our Credit Facility and 2023 Notes had a net change
in unrealized (appreciation) depreciation of $(0.3) million and
$8.6 million, respectively. For the years ended September 30, 2021
and 2020, our Credit Facility and the 2023 Notes had a net change
in unrealized (appreciation) depreciation of $(11.6) million and
less than $14.2 million, respectively. As of September 30, 2021 and
2020, our net unrealized depreciation on our Credit Facility and
the 2023 Notes totaled $7.2 million and $18.8 million,
respectively. The net change in unrealized depreciation for the
year ended September 30, 2021 compared to the prior year was
primarily due to changes in the capital markets.
Net Change in Net Assets Resulting from
Operations
Net change in net assets resulting from
operations totaled $4.0 million, or $0.10 per share, and $17.0
million, or $0.44 per share, for the three months ended
September 30, 2021 and 2020, respectively.
Net change in net assets resulting from
operations totaled $56.5 million, or $1.46 per share, and $18.4
million, or $0.47 per share, for the years ended September 30, 2021
and 2020, respectively. The increase in net assets from operations
for the year ended September 30, 2021 compared to the prior year
was primarily due to appreciation of the portfolio primarily driven
by the recovery from the market disruption caused by the COVID-19
pandemic and the uncertainty surrounding its continued adverse
economic impact.
LIQUIDITY AND CAPITAL
RESOURCES
Our liquidity and capital resources are derived
primarily from proceeds of securities offerings, debt capital and
cash flows from operations, including investment sales and
repayments, and income earned. Our primary use of funds from
operations includes investments in portfolio companies and payments
of fees and other operating expenses we incur. We have used, and
expect to continue to use, our debt capital, proceeds from the
rotation of our portfolio and proceeds from public and private
offerings of securities to finance our investment objectives. For
more information on how the COVID-19 pandemic may impact our
ability to comply with the covenants of the Credit Facility, see
our Annual Report on Form 10-K for the fiscal year ended September
30, 2021, including “Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations – COVID-19
Developments” and “Item 1A. Risk Factors” therein.
The annualized weighted average cost of debt for
the years ended September 30, 2021 and 2020, inclusive of the fee
on the undrawn commitment on the Credit Facility, amendment costs
and debt issuance costs, were 3.9% and 3.7%, respectively
(excluding amendment and debt issuance costs, such amounts are 3.4%
and 3.7%, respectively). As of September 30, 2021 and 2020, we had
$80.6 million and $211.4 million of unused borrowing capacity under
our Credit Facility, respectively, subject to leverage and
borrowing base restrictions.
As of September 30, 2021 and 2020, PennantPark
Floating Rate Funding I, LLC (“Funding I”), had $219.4 million and
$308.6 million of outstanding borrowings under the Credit Facility,
respectively. The Credit Facility had a weighted average interest
rate of 2.3% and 2.2%, exclusive of the fee on undrawn commitments,
as of September 30, 2021 and 2020, respectively.
As of September 30, 2021 and 2020, we had cash
equivalents of $49.8 million and $57.5 million, respectively,
available for investing and general corporate purposes. We believe
our liquidity and capital resources are sufficient to take
advantage of market opportunities.
Our operating activities provided cash of $49.6
million for the year ended September 30, 2021, and our financing
activities used cash of $56.3 million for the same period. Our
operating activities used cash primarily for our investment
activities and our financing activities used cash primarily for
paying down our Credit Facility and paying distributions to
stockholders.
Our operating activities used cash of $4.9
million for the year ended September 30, 2020, and our financing
activities used cash of $0.9 million for the same period. Our
operating activities used cash primarily for our investment
activities and our financing activities used cash primarily for
paying down our Credit Facility and paying distributions to
stockholders.
DISTRIBUTIONS
During both years ended September 30, 2021 and
2020, we declared distributions of $1.14 per share for total
distributions of $44.2 million. We monitor available net investment
income to determine if a return of capital for tax purposes may
occur for the fiscal year. To the extent our taxable earnings fall
below the total amount of our distributions for any given fiscal
year, stockholders will be notified of the portion of those
distributions deemed to be a tax return of capital. Tax
characteristics of all distributions will be reported to
stockholders subject to information reporting on Form 1099-DIV
after the end of each calendar year and in our periodic reports
filed with the Securities and Exchange Commission (the “SEC”).
AVAILABLE INFORMATION
The Company makes available on its website its
annual report on Form 10-K filed with the SEC, and stockholders may
find the annual report on its website at www.pennantpark.com.
PENNANTPARK FLOATING RATE CAPITAL LTD.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments (cost—$824,541,549 and
$915,874,757, respectively) |
|
$ |
856,806,437 |
|
|
$ |
910,552,309 |
|
Non-controlled, affiliated investments (cost—$22,380,092 and
$21,964,181, respectively) |
|
|
7,432,896 |
|
|
|
11,086,834 |
|
Controlled, affiliated investments (cost— $223,714,366 and
$179,112,500, respectively) |
|
|
217,380,079 |
|
|
|
165,289,324 |
|
Total of investments (cost—$1,070,636,007 and $1,116,951,438,
respectively) |
|
|
1,081,619,412 |
|
|
|
1,086,928,467 |
|
Cash and cash equivalents
(cost—$49,825,527 and $57,534,421, respectively) |
|
|
49,825,527 |
|
|
|
57,511,928 |
|
Interest receivable |
|
|
5,445,726 |
|
|
|
3,673,502 |
|
Receivable for investments
sold |
|
|
33,965,807 |
|
|
|
— |
|
Prepaid expenses and other
assets |
|
|
— |
|
|
|
173,318 |
|
Total assets |
|
|
1,170,856,472 |
|
|
|
1,148,287,215 |
|
Liabilities |
|
|
|
|
|
|
|
|
Distributions payable |
|
|
3,690,320 |
|
|
|
3,683,347 |
|
Payable for investments
purchased |
|
|
13,545,522 |
|
|
|
3,800,000 |
|
Credit Facility payable, at fair
value (cost—$219,400,000 and $308,598,500, respectively) |
|
|
218,851,500 |
|
|
|
299,047,275 |
|
2023 Notes payable, at fair value
(par—$117,792,879 and $138,579,858, respectively) |
|
|
111,114,023 |
|
|
|
129,295,008 |
|
2026 Notes payable, net
(par—$100,000,000 and zero, respectively) |
|
|
97,170,665 |
|
|
|
— |
|
2031 Asset-Backed Debt, net
(par—$228,000,000 ) |
|
|
225,497,177 |
|
|
|
224,866,334 |
|
Interest payable on debt |
|
|
5,454,784 |
|
|
|
3,601,479 |
|
Base management fee payable |
|
|
2,706,828 |
|
|
|
2,776,477 |
|
Performance-based incentive fee
payable |
|
|
623,718 |
|
|
|
2,071,622 |
|
Accrued other expenses |
|
|
1,590,679 |
|
|
|
1,875,281 |
|
Total liabilities |
|
|
680,245,216 |
|
|
|
671,016,823 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
Common stock, 38,880,728 and
38,772,074 shares issued and outstanding, respectively
Par value $0.001 per share and 100,000,000 shares authorized |
|
|
38,881 |
|
|
|
38,772 |
|
Paid-in capital in excess of par
value |
|
|
538,814,549 |
|
|
|
538,151,528 |
|
Distributable income |
|
|
(48,242,174 |
) |
|
|
(60,919,908 |
) |
Total net assets |
|
$ |
490,611,256 |
|
|
$ |
477,270,392 |
|
Total liabilities and net assets |
|
$ |
1,170,856,472 |
|
|
$ |
1,148,287,215 |
|
Net asset value per
share |
|
$ |
12.62 |
|
|
$ |
12.31 |
|
PENNANTPARK FLOATING RATE CAPITAL LTD.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Years Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
From non-controlled,
non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
56,878,497 |
|
|
$ |
73,250,887 |
|
|
$ |
69,319,954 |
|
Other income |
|
|
4,153,310 |
|
|
|
3,565,134 |
|
|
|
3,497,784 |
|
From non-controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
1,309,001 |
|
|
|
882,934 |
|
|
|
1,237,675 |
|
Other income |
|
|
122,750 |
|
|
|
36,170 |
|
|
|
127,734 |
|
From controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
11,240,574 |
|
|
|
11,801,245 |
|
|
|
12,464,035 |
|
Dividend |
|
|
8,793,750 |
|
|
|
5,950,000 |
|
|
|
6,300,000 |
|
Other Income |
|
|
195,630 |
|
|
|
— |
|
|
|
— |
|
Total investment income |
|
|
82,693,512 |
|
|
|
95,486,370 |
|
|
|
92,947,182 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee |
|
|
10,678,288 |
|
|
|
11,428,302 |
|
|
|
10,209,566 |
|
Performance-based incentive fee |
|
|
5,339,895 |
|
|
|
9,300,311 |
|
|
|
6,204,112 |
|
Interest and expenses on debt |
|
|
21,650,557 |
|
|
|
27,108,452 |
|
|
|
22,540,098 |
|
Administrative services expenses |
|
|
900,000 |
|
|
|
1,400,000 |
|
|
|
1,550,000 |
|
Other general and administrative expenses |
|
|
1,200,000 |
|
|
|
2,464,306 |
|
|
|
2,464,306 |
|
Expenses before amendment costs, debt issuance costs and
provision for taxes |
|
|
39,768,740 |
|
|
|
51,701,371 |
|
|
|
42,968,082 |
|
Credit Facility amendment costs and debt issuance costs |
|
|
2,898,401 |
|
|
|
— |
|
|
|
4,517,292 |
|
Provision for taxes |
|
|
400,000 |
|
|
|
400,000 |
|
|
|
— |
|
Total expenses |
|
|
43,067,141 |
|
|
|
52,101,371 |
|
|
|
47,485,374 |
|
Net investment income |
|
|
39,626,371 |
|
|
|
43,384,999 |
|
|
|
45,461,808 |
|
Realized and unrealized
(loss) gain on investments and debt: |
|
|
|
|
|
|
|
|
|
|
|
|
Net realized loss on: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
24,615,558 |
|
|
|
(6,998,886 |
) |
|
|
(18,802,365 |
) |
Non-controlled and controlled, affiliated investments |
|
|
(37,409,065 |
) |
|
|
(5,683,145 |
) |
|
|
(12,621,504 |
) |
Net realized loss on investments |
|
|
(12,796,507 |
) |
|
|
(12,682,031 |
) |
|
|
(31,423,869 |
) |
Net change in unrealized
(depreciation) appreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
30,881,375 |
|
|
|
(7,390,333 |
) |
|
|
2,640,050 |
|
Controlled and non-controlled, affiliated investments |
|
|
10,413,524 |
|
|
|
(19,076,975 |
) |
|
|
(5,245,396 |
) |
Debt depreciation (appreciation) |
|
|
(11,608,720 |
) |
|
|
14,177,384 |
|
|
|
(16,487 |
) |
Net change in unrealized (depreciation) appreciation on
investments and debt |
|
|
29,686,179 |
|
|
|
(12,289,924 |
) |
|
|
(2,621,833 |
) |
Net realized and
unrealized (loss) gain from investments and debt |
|
|
16,889,672 |
|
|
|
(24,971,955 |
) |
|
|
(34,045,702 |
) |
Net increase in net
assets resulting from operations |
|
$ |
56,516,043 |
|
|
$ |
18,413,044 |
|
|
$ |
11,416,106 |
|
Net increase in net assets
resulting from operations per common share |
|
$ |
1.46 |
|
|
$ |
0.47 |
|
|
$ |
0.29 |
|
Net investment income per common
share |
|
$ |
1.02 |
|
|
$ |
1.12 |
|
|
$ |
1.17 |
|
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 $5.2 billion of
investable capital, including potential 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 New York and has offices in Chicago, Houston
and Los Angeles.
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 of 1933, as amended, 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 SEC. 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.
We may use words such as “anticipates,”
“believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and
similar expressions to identify forward-looking statements. Such
statements are based on currently available operating, financial
and competitive information and are subject to various risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations.
The information contained herein is based on
current tax laws, which may change in the future. The Company
cannot be held responsible for any direct or incidental loss
resulting from applying any of the information provided in this
publication or from any other source mentioned. The information
provided in this material does not constitute any specific legal,
tax or accounting advice. Please consult with qualified
professionals for this type of advice.
CONTACT:
Richard CheungPennantPark Floating Rate Capital
Ltd.(212) 905-1000www.pennantpark.com
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