Finance

PennantPark's Joint Venture Successfully Refinances $300.7 Million CLO, Demonstrating Firm Commitment to Middle Market CLO Strategy

Published May 21, 2024

MIAMI, May 21, 2024 -- In a move that underscores the robustness of its investment strategies within the middle market, PennantPark Floating Rate Capital Ltd. PFLT, a leading investment management company, is pleased to announce the successful refinancing of a sizable Collateralized Loan Obligation (CLO). The Company's unconsolidated joint venture, PennantPark Senior Secured Loan Fund I LLC (PSSL), has orchestrated the refinancing through its wholly-owned and consolidated subsidiary, PennantPark CLO II, Ltd (CLO II). The refinancing amount totals an impressive $300.7 million, marking a strong continuation of PennantPark's commitment to its Middle Market CLO platform.

Strategic Refinancing Act

The move by PSSL to refinance CLO II is a strategic one that not only demonstrates PennantPark's proficiency in navigating complex financial endeavors but also solidifies the company's standing as a stalwart supporter of middle market lending. This significant refinancing effort is anticipated to foster enhanced revenue streams and offer better loan terms which can be advantageous for both the firm and its clients.

Underscoring Confidence in Middle Market Lending

Middle-market businesses frequently encounter hurdles in securing the necessary capital for growth and development. PennantPark, through ventures like PSSL, is devoted to bridging this gap by offering tailored financing solutions. The successful closure of this major refinancing effort is a testament to PennantPark's expertise and confidence in the resilience and potential of the middle market sector.

PennantPark Floating Rate Capital Ltd., traded under the ticker PFLT and its Canadian counterpart PennantPark Investment Corporation under the ticker CAPFF, have been pivotal in directing capital towards middle market enterprises, reflecting both firms' strategic foresight in this niche yet crucial segment of the market.

Refinancing, CLO, Investment