MIAMI, May 07, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the second quarter ended March 31, 2026.

 
 
HIGHLIGHTS 
 Quarter ended March 31, 2026 (Unaudited) 
 ($ in millions, except per share amounts) 
 
Assets and Liabilities: 
   Investment portfolio (1)(2)                              $2,580.3 
   Net assets                                               $1,038.7 
   Net asset value per share                                $  10.47 
   Quarterly change in net asset value per share                (0.2)% 
 
Credit Facility                                             $  328.3 
2026 Notes, net of unamortized deferred financing 
 costs                                                      $  185.0 
2029 Notes, net of unamortized deferred financing 
 costs                                                      $  195.9 
2036-R Asset-Backed Debt, net of unamortized deferred 
 financing costs                                            $  286.6 
2037 Asset-Backed Debt, net of unamortized deferred 
 financing costs                                            $  387.1 
2038-R Asset-Backed Debt, net of unamortized deferred 
 financing costs                                            $  284.8 
Debt to equity                                                 1.61x 
Weighted average yield on debt investments at quarter-end        9.8% 
 
Operating Results: 
   Net investment income                                    $   25.7 
   Net investment income per share (GAAP)                   $   0.26 
   Core net investment income per share (3)                 $   0.27 
   Distributions declared per share                         $   0.31 
 
Portfolio Activity 
   Purchases of Investments                                    294.8 
   Sales and repayments of investments                         328.0 
 
PSSL Portfolio data: 
   PSSL investment portfolio                                $1,209.0 
   Purchases of investments                                 $   58.6 
   Sales and repayments of investments                      $   32.2 
 
PSSL II Portfolio data: 
   PSSL II investment portfolio                             $  339.9 
   Purchases of investments                                 $  148.1 
   Sales and repayments of investments                      $    1.3 
 

________________________

 
(1)    Includes investments in PennantPark Senior Secured 
        Loan Fund I LLC, or PSSL, an unconsolidated joint 
        venture, totaling $297.8 million, at fair value. 
(2)    Includes investments in PennatPark Senior Secured 
        Loan Fund II LLC, or PSSL II, an unconsolidated joint 
        venture, totaling $93.5 million, at fair value. 
(3)    Core net investment income ("Core NII") is a non-GAAP 
        financial measure. The Company believes that Core 
        NII provides useful information to investors and management 
        because it reflects the Company's financial performance 
        excluding one-time or non-recurring investment income 
        and expenses. The presentation of this additional 
        information is not meant to be considered in isolation 
        or as a substitute for financial results prepared 
        in accordance with GAAP. For the quarter ended March 
        31, 2026, Core NII excluded: i) $1.1 million of debt 
        issuance costs and ii) $0.2 million of incentive fee 
        expense offset. 
 
 

CONFERENCE CALL AT 9:00 A.M. ET ON MAY 8, 2026

The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Friday, May 8, 2026 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (800) 330-6710 approximately 5-10 minutes prior to the call. International callers should dial (646) 769-9200. All callers should reference conference ID #9559786 or PennantPark Floating Rate Capital Ltd. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark's website.

PORTFOLIO AND INVESTMENT ACTIVITY

"We are pleased with the continued quality and performance of our investment portfolio in this market. The risk-reward of the core middle market remains differentiated from the upper middle market. Despite the challenging market environment, NAV was flat for the quarter and portfolio company leverage, PIK interest and non accruals are among the lowest in the industry. The substantial growth of the PSSL II JV this past quarter provides a solid base and positions PFLT for growth in NII over time as the JV ramps" said Art Penn, Chairman and CEO. "Given the lower interest rate environment and current market activity levels, in consultation with the Board, we will be adjusting our dividend policy to be better aligned with NII, starting with the July dividend."

As of March 31, 2026, our portfolio totaled $2,580.3 million, and consisted of $2,252.1 million of first lien secured debt (including $237.7 million in PSSL and $65.6 million in PSSL II), $18.8 million of subordinated debt and $309.3 million of preferred and common equity (including $60.1 million in PSSL and $27.9 million in PSSL II). Our debt portfolio consisted of approximately 99% variable-rate investments. As of March 31, 2026, we had three portfolio companies on non-accrual, representing 0.8% and 0.5% of our overall portfolio on a cost and fair value basis, respectively. As of March 31, 2026, the portfolio had net unrealized depreciation of $66.1 million. Our overall portfolio consisted of 162 companies with an average investment size of $15.9 million and had a weighted average yield on debt investments of 9.8%.

As of September 30, 2025, our portfolio totaled $2,773.3 million and consisted of $2,513.6 million of first lien secured debt (including $237.7 million in PSSL), $19.0 million of second lien and subordinated debt and $240.7 million of preferred and common equity (including $44.3 million in PSSL). Our debt portfolio consisted of approximately 99% variable-rate investments. As of September 30, 2025, we had three portfolio companies on non-accrual, representing 0.4% and 0.2% of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2025, the portfolio had net unrealized depreciation of $46.1 million. Our overall portfolio consisted of 164 companies with an average investment size of $16.9 million, and a weighted average yield on debt investments of 10.2%.

For the three months ended March 31, 2026, we invested $294.8 million in six new and 53 existing portfolio companies at a weighted average yield on debt investments of 9.3%. Sales and repayments of investments for the same period totaled $328.0 million including $56.9 million of sales to PSSL and $148.1 million of sales to PSSL II. For the six months ended March 31, 2026, we invested $595.8 million in 10 new and 74 existing portfolio companies with a weighted average yield on debt investments of 9.6%. Sales and repayments of investments for the same period totaled $769.5 million including $189.4 million of sales to PSSL and $344.6 million of sales to PSSL II.

For the three months ended March 31, 2025, we invested $293.3 million in three new and 54 existing portfolio companies at a weighted average yield on debt investments of 9.9%. Sales and repayments of investments for the same period totaled $122.4 million including $52.9 million of sales to PSSL. For the six months ended March 31, 2025, we invested $900.2 million in 14 new and 96 existing portfolio companies with a weighted average yield on debt investments of 10.2%. Sales and repayments of investments for the same period totaled $523.7 million, including $240.6 million of sales to PSSL.

PennantPark Senior Secured Loan Fund I LLC

As of March 31, 2026, PSSL's portfolio totaled $1,209.0 million, consisted of 120 companies with an average investment size of $10.1 million and had a weighted average yield on debt investments of 9.5%. As of September 30, 2025, PSSL's portfolio totaled $1,084.6 million, consisted of 117 companies with an average investment size of $9.3 million and had a weighted average yield on debt investments of 10.1%.

For the three months ended March 31, 2026, PSSL invested $58.6 million (including $56.9 million purchase from the Company) in three new and five existing portfolio companies with a weighted average yield on debt investments of 9.2%. PSSL's sales and repayments of investments for the same period totaled $32.2 million. For the six months ended March 31, 2026, PSSL invested $192.4 million (including $189.4 million purchase from the Company) in seven new and 22 existing portfolio companies with a weighted average yield on debt investments of 9.3%. PSSL's sales and repayments of investments for the same period totaled $44.6 million.

For the three months ended March 31, 2025, PSSL invested $60.0 million (including $52.9 million purchase from the Company) in four new and five existing portfolio companies with a weighted average yield on debt investments of 9.8%. PSSL's sales and repayments of investments for the same period totaled $36.8 million. For the six months ended March 31, 2025, PSSL invested $284.9 million (including $240.6 million purchased from the Company) in 21 new and 12 existing portfolio companies with a weighted average yield on debt investments of 10.2%. PSSL's sales and repayments of investments for the same period totaled $123.4 million.

PennantPark Senior Secured Loan Fund II LLC

As of March 31, 2026, PSSL II's portfolio totaled $339.9 million and consisted of 54 companies with an average investment size of $6.3 million and at a weighted average yield on debt investments of 8.9%.

(MORE TO FOLLOW) Dow Jones Newswires

May 07, 2026 16:05 ET (20:05 GMT)