PennantPark Floating Rate Conducts $301 Million Securitization
Deal News | Apr 15, 2025 | Pennantpark Investment Adviser
PennantPark Floating Rate Capital Ltd. has announced the completion of a $301 million securitization via its joint venture with PennantPark Senior Secured Loan Fund I LLC. The securitization, known as a collateralized loan obligation (CLO), includes a variety of debt structured across several tranches, designed to tap into both primary and secondary market opportunities. This CLO marks the firm's twelfth and brings its total middle-market CLO assets under management to around $4 billion. The transaction underscores PennantPark's ongoing expansion and capability in raising efficient long-term financing during a time of economic uncertainty and interest rate volatility. CIBC World Markets Corp. facilitated the placement of the notes, while PennantPark will retain all Subordinated Notes through a consolidated subsidiary, maintaining exposure to asset performance. The proceeds will aid in repaying part of PSSL's existing credit facility, while also highlighting the firm's minimum AAA pricing achieved historically in this segment.
Sectors
- Financial Services
- Investment Management
Geography
- United States – The primary location of PennantPark's operations and market engagement, including its headquarters and several offices.
- Netherlands – Presence indicated by the office in Amsterdam, pointing to an extension of operations into European markets.
Industry
- Financial Services – Pertains to the investment and asset management activities, particularly related to CLOs and structured financial instruments.
- Investment Management – Relevant due to PennantPark Investment Advisers' role in managing capital and providing access to middle-market credit.
Financials
- $301,020,000 – Total amount of the securitization completed by PennantPark Floating Rate Capital.
- $4.0 billion – Total CLO middle-market assets under PennantPark's management post-securitization.
- $325 million – The amount of PSSL’s secured credit facility partially repaid with the proceeds.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PennantPark Floating Rate Capital Ltd. | Issuer | Company | Business development company managing the securitization through its consolidated subsidiary. |
| PennantPark Senior Secured Loan Fund I LLC | Joint Venture Partner | Company | Managed the CLO under discussion, holding all subordinated notes through a consolidated subsidiary. |
| PennantPark Investment Advisers, LLC | Manager | Company | Investment adviser responsible for overseeing the management of capital in various investable forms. |
| CIBC World Markets Corp. | Lead Placement Agent | Company | Served as the lead placement agent in issuing the securitization notes. |