PennantPark Floating Rate Capital Ltd announced that its subsidiary, PennantPark Senior Secured Loan Fund I LLC, has completed a reset of a $316.7 million debt securitization through PennantPark CLO II, Ltd. The transaction restructures the CLO with a four‑year reinvestment period and a final maturity of 12 years, now slated for April 2038.
The reset spans multiple note classes rated by S&P from AAA to BB‑. Coupon rates are tied to three‑month SOFR plus spreads ranging from 1.05 percentage points to 7.50 percentage points. The largest tranche, A‑1‑R2 Notes, totals $172.5 million (54.5 % of the capital structure) and carries a coupon of SOFR + 1.51 %. Preferred shares amount to $47.7 million, representing 15 % of the structure.
By resetting the notes, the weighted average cost of capital fell from SOFR + 2.31 % to SOFR + 1.82 %. PennantPark Senior Secured Loan Fund I LLC will retain the preferred shares and the Class E‑R2 Notes through a consolidated subsidiary, remaining the retention holder.
The replacement debt is expected to be fully funded at closing, with GreensLedge Capital Markets LLC acting as placement agent. PennantPark Senior Secured Loan Fund I LLC is a joint venture between PennantPark Floating Rate Capital and Trinity Universal Insurance Company, a subsidiary of Kemper Corporation. The fund targets U.S. middle‑market companies that carry below‑investment‑grade debt.
PennantPark Investment Advisers, LLC, which manages roughly $4 billion in middle‑market securitization assets and over $10 billion of investable capital across its platform, oversees the CLO. The transaction was executed from the firm’s Miami base.
