PennantPark Reports Q4 2024 Investments

TL;DR

PFLT's 10-Q shows strong focus on secured debt, with key holdings like By Light and StoicLane.

AI Summary

PennantPark Floating Rate Capital Ltd. filed its 10-Q for the period ending December 31, 2024. The company reported investments in non-controlled, non-affiliated portfolio companies totaling 198.1% of its portfolio, with a significant portion in First Lien Secured Debt (179.3%). Key investments include By Light Professional IT Services, LLC with a revolver maturing May 16, 2025, and StoicLane, Inc. convertible notes maturing August 15, 2027, with a 12.00% coupon.

Why It Matters

This filing provides insight into PennantPark's investment portfolio composition and key holdings, which can impact its financial performance and dividend payouts to shareholders.

Risk Assessment

Risk Level: medium — The company's investment in floating rate debt and specific portfolio companies carries inherent credit and interest rate risks.

Key Numbers

• 198.1% — Investments in Non-Controlled, Non-Affiliated Portfolio Companies (Represents a significant portion of the company's investment strategy.)
• 179.3% — First Lien Secured Debt (Indicates a focus on senior secured debt within the portfolio.)
• 15.9% — Common Equity/Warrants (Shows exposure to equity-like instruments in portfolio companies.)

Key Players & Entities

• PennantPark Floating Rate Capital Ltd. (company) — Filer of the 10-Q
• By Light Professional IT Services, LLC (company) — Portfolio company with a revolver maturing 05/16/2025
• StoicLane, Inc. (company) — Portfolio company with convertible notes maturing 08/15/2027
• 12.00% (dollar_amount) — Current coupon for StoicLane, Inc. convertible notes
• 05/16/2025 (date) — Maturity date for By Light Professional IT Services, LLC revolver
• 08/15/2027 (date) — Maturity date for StoicLane, Inc. convertible notes

FAQ

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share PFLT The New York Stock E
• $301.4 million — LC; "Debt Securitization" refers to the $301.4 million term debt securitization completed by t
• $350.6 million — 2036-Debt Securitization" refers to the $350.6 million term debt securitization completed by t
• $203 million — notes pursuant the 2036-R Indenture (i) $203 million of A-1-R Notes, which bear interest at
• $10.5 million — inancing rate ("SOFR") plus 1.75%, (ii) $10.5 million of A-2-R Notes, which bear interest at
• $12 million — t at three-month SOFR plus 1.90%, (iii) $12 million of Class B-R Notes, which bear interest
• $28 million — st at three-month SOFR plus 2.05%, (iv) $28 million of C-R Notes, which bear interest at th
• $21 million — at three-month SOFR plus 2.75% and (v) $21 million of D-R Notes, which bear interest at th
• $64 million — ce by a 2036-R Securitization Issuer of $64 million of subordinated notes pursuant to the 2
• $12.5 million — rrowing by the Securitization Issuer of $12.5 million of Class B-R Loans, which bear interest

Filing Documents

• pflt-20241231.htm (10-Q) — 20619KB
• pflt-ex10_1.htm (EX-10.1) — 26KB
• pflt-ex31_1.htm (EX-31.1) — 15KB
• pflt-ex31_2.htm (EX-31.2) — 15KB
• pflt-ex32_1.htm (EX-32.1) — 8KB
• pflt-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-25-017047.txt ( ) — 68843KB
• pflt-20241231.xsd (EX-101.SCH) — 1698KB
• pflt-20241231_htm.xml (XML) — 17832KB

CONSOLIDATED FINANCIAL INFORMATION

PART I. CONSOLIDATED FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Statements of Assets and Liabilities as of December 31, 2024 (unaudited) and September 30, 2024 4 Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the three months ended December 31, 2024 and 2023 (unaudited) 7 Consolidated Schedules of Investments as of December 31, 2024 (unaudited) and September 30, 2024 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 24 Report of Independent Registered Public Accounting Firm (PCAOB ID 49) 47

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 66

Controls and Procedures

Item 4. Controls and Procedures 66

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 67

Risk Factors

Item 1A. Risk Factors 67

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 68

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 68

Other Information

Item 5. Other Information 68

Exhibits

Item 6. Exhibits 69

—CONSOLIDATED FINANCIAL INFORMATION

PART I—CONSOLIDATED FINANCIAL INFORMATION We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where the context suggests otherwise, the terms "Company," "we," "our" or "us" refers to PennantPark Floating Rate Capital Ltd. and its wholly-owned consolidated subsidiaries; "Funding I" refers to PennantPark Floating Rate Funding I, LLC; "Taxable Subsidiary" refers to collectively our consolidated subsidiaries PFLT Investment Holdings II, LLC and PFLT Investment Holdings, LLC; "PSSL" refers to PennantPark Senior Secured Loan Fund I LLC, an unconsolidated joint venture; "PTSF" refers to PennantPark-TSO Senior Loan Fund, LP, an unconsolidated limited partnership; "PennantPark Investment Advisers" or "Investment Adviser" refer to PennantPark Investment Advisers, LLC; "PennantPark Investment Administration" or "Administrator" refers to PennantPark Investment Administration, LLC; "2023 Notes" refers to our 4.3% Series A notes due 2023; "2026 Notes" refers to our 4.25% Notes due 2026; "1940 Act" refers to the Investment Company Act of 1940, as amended; "SBCAA" refers to the Small Business Credit Availability Act; "Code" refers to the Internal Revenue Code of 1986, as amended; "RIC" refers to a regulated investment company under the Code; "BDC" refers to a business development company under the 1940 Act; "Credit Facility" refers to our multi-currency senior secured revolving credit facility, as amended from time to time, with Truist Bank and other lenders, or the "Lenders," entered into on August 12, 2021; "Securitization Issuer" refers to PennantPark CLO I, Ltd.; "Securitization Issuers" refers to the Securitization Issuer and PennantPark CLO I, LLC; "Debt Securitization" refers to the $301.4 million term debt securitization completed by the Securitization Issuers; "

Consolidated Financial Statements

Item 1. Consolidated Financial Statements PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS O F ASSETS AND LIABILITIES (in thousands, except share and per share data) December 31, 2024 September 30, 2024 (unaudited) Assets Investments at fair value Non-controlled, non-affiliated investments (amortized cost— $ 1,894,793 and $ 1,622,669 , respectively) $ 1,907,349 $ 1,632,269 Controlled, affiliated investments (amortized cost— $ 339,500 and $ 372,271 , respectively) 286,561 351,235 Total investments (amortized cost— $ 2,234,293 and $ 1,994,940 , respectively) 2,193,910 1,983,504 Cash and cash equivalents (cost— $ 102,273 and $ 112,046 , respectively) 102,262 112,050 Interest receivable 13,024 12,167 Receivables from investments sold 29,090 — Distributions receivable 577 635 Due from affiliates 312 291 Prepaid expenses and other assets 5,026 198 Total assets 2,344,201 2,108,845 Liabilities Credit Facility payable, at fair value (cost— $ 608,855 and $ 443,855 , respectively) 608,791 443,880 2026 Notes payable, net (par—$ 185,000 ) 184,026 183,832 2036 Asset-Backed Debt, net (par—$ 287,000 ) 284,222 284,086 2036-R Asset-Backed Debt, net (par— $ 266,000 ) 265,268 265,235 Payable for investments purchased 471 20,363 Interest payable on debt 13,318 14,645 Distributions payable 8,698 7,834 Base management fee payable 5,264 4,588 Incentive fee payable 7,492 3,189 Accounts payable and accrued expenses 2,920 2,187 Deferred tax liability 1,080 1,712 Total liabilities 1,381,550 1,231,551 Commitments and contingencies (See Note 12) Net assets Common stock, 84,855,896 and 77,579,896 shares issued and outstanding, respectively Par value $ 0.001 per share and 200,000,000 shares authorized 85 78 Paid-in capital in excess of par value 1,058,949 976,744 Accumulated deficit ( 96,383 )

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View this 10-Q filing on SEC EDGAR