PennantPark Floating Rate Capital Resets $315.8 Million Securitization

Deal News | May 22, 2025 | Pennantpark Investment Adviser

PennantPark Floating Rate Capital Ltd., a significant player in middle market credit, has announced the successful reset of a $315.8 million securitization through their joint venture, PennantPark Senior Secured Loan Fund I LLC. Involving a four-year reinvestment period and extending the maturity date to 2037, this move is strategic in reducing the cost of financing amidst volatile markets. Highlighted in the transaction were a series of debt tranches with varied coupons and ratings. The venture, significantly financed by a subsidiary of Kemper Corporation, represents about $850 million available for investing in middle market loans, demonstrating both PennantPark's financial dynamism and strategic foresight to expand its portfolio while maximizing earnings. GreensLedge Capital Markets LLC played a pivotal role as the structurer and arranger of the reset transaction. Moving forward, the continued investment from PennantPark is bolstered by retaining critical tranches, demonstrating its commitment to operational risk management and sustained growth in middle market assets, which is currently valued at $4 billion.

Sectors

Private Equity
Financial Services - Securitization

Geography

United States – All mentioned entities, including PennantPark Floating Rate Capital Ltd. and PennantPark Senior Secured Loan Fund I LLC, operate primarily within the United States, making it the geographic focal point.
Florida – The headquarters of PennantPark is in Miami Beach, Florida, marking it a significant geographical element of the operations and narrative.

Industry

Private Equity – PennantPark Floating Rate Capital Ltd. and PennantPark Investment Advisers, LLC operate in the private equity space by providing financing solutions to middle market companies, which aligns with typical private equity investment strategies.
Financial Services - Securitization – The article primarily discusses the resetting of a substantial debt securitization, which is a core component of financial services and involves structured finance products.

Financials

$315,800,000 – Total amount secured through the reset of PennantPark's four-year reinvestment period securitization.
$4.0 billion – PennantPark currently manages approximately this amount in middle market assets, showcasing its scale in the market.
A-R Loans: $228,000,000 (Coupon: 3 Mo SOFR + 1.85%) – The largest portion of the securitization structure, rated A- with 72.2% of the capital structure.
B-R Loans: $18,000,000 (Coupon: 3 Mo SOFR + 4.50%) – This tranche is rated BBB- and constitutes 5.7% of the capital structure.
C-R Loans: $18,000,000 (Retained) – Issued and retained with a BB- rating, representing an essential element of the company's investment strategy.
Sub. Notes: $51,800,000 – These constitute 16.4% of the capital structure and are retained, indicating strategic interest in expanding financial exposure.
$850 million – Amount of capital available between PFLT and PSSL for investment in middle market loans.

Participants

Name	Role	Type	Description
PennantPark Floating Rate Capital Ltd.	Company Issuing Debt	Company	A business development company investing in U.S. middle market private companies and has announced the reset of a $315.8 million securitization.
PennantPark Senior Secured Loan Fund I LLC	Joint Venture	Company	The entity through which the securitization reset was executed; it is a joint venture involving PennantPark and a Kemper Corporation subsidiary.
PennantPark Investment Advisers, LLC	Investment Advisor	Company	The management entity behind PennantPark, overseeing approximately $10 billion in capital and involved in the finances of the discussed securitization.
Kemper Corporation	Joint Venture Partner	Company	Through its subsidiary, Kemper is involved in the joint venture PennantPark Senior Secured Loan Fund I LLC, which is central to the securitization reset.
GreensLedge Capital Markets LLC	Structurer and Sole Arranger	Company	Acted as the structurer and sole arranger for the securitization reset transaction.