PennantPark Floating Rate Capital Ltd.’s Unconsolidated Joint Venture, PennantPark Senior Secured Loan Fund I, LLC Prices $300.7 Million CLO

NEW YORK, Dec. 24, 2020 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the “Company”) (NASDAQ: PFLT) (TASE: PFLT) today announced that PennantPark Senior Secured Loan Fund I, LLC, “PSSL”, through PSSL’s wholly-owned and consolidated subsidiary, PennantPark CLO II, Ltd. has priced a three-year reinvestment period, eleven-year final maturity $300.7 million debt securitization in the form of a collateralized loan obligation (“CLO”). The debt issued in the CLO (the “Debt”) is structured in the following manner:

Class	Par Amount ($ in millions)		% of Capital Structure	Coupon	Expected Rating (S&P)	Issuance Price
A-1 Notes	41,000,000		13.6%	3 Mo LIBOR + 1.90%	AAA	100.0%
A-1 Loans	130,000,000		43.2%	3 Mo LIBOR + 1.90%	AAA	100.0%
A-2	6,000,000		2.0%	3 Mo LIBOR + 2.25%	AAA	100.0%
B-1	15,500,000		5.2%	3 Mo LIBOR + 2.60%	AA	100.0%
B-2	8,500,000		2.8%	3.14%	AA	100.0%
C	27,000,000		9.0%	3 Mo LIBOR + 4.25%	A	100.0%
D	18,000,000		6.0%	3 Mo LIBOR + 6.50%	BBB-	100.0%
E	18,000,000		6.0%	NA	BB-	NA
Sub Notes	36,700,000		12.2%		NR	NA
Total	300,700,000

PSSL will retain all the Class E Notes and Subordinated Notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in January 2024 and the Debt is scheduled to mature in January 2032. The term debt securitization is expected to be approximately 95% funded at close. The proceeds from the Debt will be used to repay a portion of PSSL’s $325 million secured credit facility.