PennantPark Senior Secured Loan Fund I LLC, a subsidiary of PennantPark Floating Rate Capital Ltd., completed a $316.7 million debt securitization reset through PennantPark CLO II, Ltd., the company said on Monday.
The transaction restructured the fund’s capital stack with a four-year reinvestment period and a final maturity extending to April 2038. The debt was divided into multiple note classes rated from AAA to BB- by S&P, with coupons tied to three-month SOFR plus spreads ranging from 1.05% to 7.50%.
The largest component was $172.5 million in A-1-R2 notes, representing 54.5% of the capital structure and carrying a coupon of SOFR plus 1.51%. Preferred shares totaling $47.7 million accounted for 15% of the structure. The reset reduced the fund’s weighted average cost of capital from SOFR plus 2.31% to SOFR plus 1.82%.
PennantPark Senior Secured Loan Fund I LLC retained the preferred shares and Class E-R2 notes through a consolidated subsidiary, maintaining its role as the retention holder. The replacement debt was fully funded at closing, with GreensLedge Capital Markets LLC serving as the placement agent.
PennantPark Floating Rate Capital Ltd., listed on the NYSE under the ticker PFLT, operates the fund as a joint venture with Trinity Universal Insurance Company, a subsidiary of Kemper Corporation. PennantPark Investment Advisers, LLC manages approximately $4 billion in middle-market securitization assets and over $10 billion of investable capital, including potential leverage across its platform.
The fund focuses on below-investment-grade debt issued by U.S. middle-market companies and is based in Miami.
