MIAMI, Aug. 10, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the third quarter ended June 30, 2026.
HIGHLIGHTS
Quarter ended June 30, 2026 (Unaudited)
($ in millions, except per share amounts)
Assets and Liabilities: Investment portfolio (1)(2) $2,504.7 Net assets $1,017.6 Net asset value per share $ 10.26 Quarterly change in net asset value per share (2.0)% Credit Facility $ 318.3 2029 Notes, net of unamortized deferred financing costs $ 196.2 2031 Notes, net of unamortized deferred financing costs $ 101.3 2036-R Asset-Backed Debt, net of unamortized deferred financing costs $ 286.6 2037 Asset-Backed Debt, net of unamortized deferred financing costs $ 387.3 2038-R Asset-Backed Debt, net of unamortized deferred financing costs $ 284.9 Debt to equity 1.56x Weighted average yield on debt investments at quarter-end 9.8% Operating Results: Net investment income $ 25.9 Net investment income per share (GAAP) $ 0.26 Core net investment income per share (3) $ 0.26 Distributions declared per share - base $ 0.2850 Distributions declared per share - supplemental $ 0.0033 Portfolio Activity: Purchases of investments $ 212.1 Sales and repayments of investments $ 271.7 PSSL Portfolio data: PSSL investment portfolio $1,139.9 Purchases of investments $ 37.3 Sales and repayments of investments $ 99.7 PSSL II Portfolio data: PSSL II investment portfolio $ 320.1 Purchases of investments $ 9.8 Sales and repayments of investments $ 29.6
________________________
(1) Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling $290.3 million, at fair value. (2) Includes investments in PennatPark Senior Secured Loan Fund II LLC, or PSSL II, an unconsolidated joint venture, totaling $93.4 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 June 30, 2026, there were no one-time events resulting in $0.26 of Core NII.
CONFERENCE CALL AT 9:00 A.M. ET ON AUGUST 11, 2026
The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, August 11, 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 #2261035 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 to continue to find attractive risk adjusted returns in the core middle market with conservative portfolio company leverage, low PIK interest and covenant protections. Our exposure to the Government Services and Defense sector continues to outperform. We are delighted with the meaningful realization during the quarter from an equity co-investment in a leading defense technology company. The ramp of PSSL II continues on plan and should generate substantial earnings overtime," said Art Penn, Chairman and CEO.
As of June 30, 2026, our portfolio totaled $2,504.7 million, and consisted of $2,230.7 million of first lien secured debt (including $237.7 million in PSSL and $65.6 million in PSSL II), $19.7 million of subordinated debt and $254.3 million of preferred and common equity (including $52.7 million in PSSL and $27.8 million in PSSL II). Our debt portfolio consisted of approximately 99% variable-rate investments. As of June 30, 2026, we had four portfolio companies on non-accrual, representing 1.0% and 0.4% of our overall portfolio on a cost and fair value basis, respectively. As of June 30, 2026, the portfolio had net unrealized depreciation of $122.8 million. Our overall portfolio consisted of 159 companies with an average investment size of $15.8 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 June 30, 2026, we invested $212.1 million in five new and 51 existing portfolio companies at a weighted average yield on debt investments of 9.0%. Sales and repayments of investments for the same period totaled $271.7 million including $37.1 million of sales to PSSL and $9.8 million of sales to PSSL II. For the nine months ended June 30, 2026, we invested $807.9 million in 15 new and 86 existing portfolio companies with a weighted average yield on debt investments of 9.5%. Sales and repayments of investments for the same period totaled $1,041.2 million including $226.5 million of sales to PSSL and $354.3 million of sales to PSSL II.
For the three months ended June 30, 2025 we invested $208.1 million in four new and 17 existing portfolio companies at a weighted average yield on debt investments of 10.1%. Sales and repayments of investments for the same period totaled $145.8 million including $51.8 million of sales to PSSL. For the nine months ended June 30, 2025, we invested $1,108.3 million in 18 new and 112 existing portfolio companies with a weighted average yield on debt investments of 10.2%. Sales and repayments of investments for the same period totaled $669.5 million, including $292.4 million of sales to PSSL.
PennantPark Senior Secured Loan Fund I LLC
As of June 30, 2026, PSSL's portfolio totaled $1,139.9 million, consisted of 120 companies with an average investment size of $9.5 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 June 30, 2026, PSSL invested $37.3 million (including $37.1 million purchase from the Company) in six new and two 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 $99.7 million. For the nine months ended June 30, 2026, PSSL invested $229.7 million (including $226.5 million purchase from the Company) in 13 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 $144.2 million.
For the three months ended June 30, 2025, PSSL invested $52.3 million (including $51.8 million purchase from the Company) in seven new and two existing portfolio companies with a weighted average yield on debt investments of 10.8%. PSSL's sales and repayments of investments for the same period totaled $53.8 million. For the nine months ended June 30, 2025, PSSL invested $337.2 million (including $292.4 million purchased from the Company) in 28 new and 13 existing portfolio companies with a weighted average yield on debt investments of 10.3%. PSSL's sales and repayments of investments for the same period totaled $177.2 million.
PennantPark Senior Secured Loan Fund II LLC
As of June 30, 2026, PSSL II's portfolio totaled $320.1 million and consisted of 52 companies with an average investment size of $6.2 million and at a weighted average yield on debt investments of 9.0%.
For the three months ended June 30, 2026, PSSL II invested $9.8 million (including $9.8 million purchased from the Company) in one new and one existing portfolio companies at a weighted average yield on debt investments of 9.6%. Sales and repayments of investments for the three months ended June 30, 2026 totaled $29.6 million. For the nine months ended June 30, 2026, PSSL II invested $354.3 million (including $354.3 million purchased from the Company) in 55 new and zero existing portfolio companies at a weighted average yield on debt investments of 9.1%. Sales and repayments for the same period totaled $33.8 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and nine months ended June 30, 2026 and 2025.
Investment Income
For the three and nine months ended June 30, 2026 investment income was $66.1 million and $202.1 million, respectively, which was attributable to $58.9 million and $181.8 million from first lien secured debt and $7.2 million and $20.3 million from other investments, respectively. For the three and nine months ended June 30, 2025, investment income was $63.5 million and $192.4 million, respectively, which was attributable to $57.9 million and $175.1 million from first lien secured debt and $5.6 million and $17.3 million from other investments, respectively. The increase in investment income for the three and nine months ended June 30, 2026, was primarily due to the increase in the size of our debt portfolio.
Expenses
For the three and nine months ended June 30, 2026, expenses totaled $40.2 million and $123.8 million, respectively and were comprised of: $25.0 million and $76.3 million of debt related interest and expenses, $6.4 million and $19.6 million of base management fees, $6.5 million and $19.6 million of performance-based incentive fees, $2.3 million and $$6.5 million of general and administrative expenses, $0.1 million and $0.3 million of taxes and zero and $1.6 million in Credit Facility amendment and debt issuance costs. For the three and nine months ended June 30, 2025, expenses totaled $38.9 million and $112.8 million, respectively and were comprised of: $22.5 million and $67.4 million of debt related interest and expenses, $5.9 million and $16.8 million of base management fees, $5.4 million and $19.1 million of performance-based incentive fees, $2.0 million and $5.5 million of general and administrative expenses, $0.2 million and $0.7 million of taxes and $2.9 million and $3.3 million in Credit Facility amendment costs. The increase in expenses for the three and nine months ended June 30, 2026, was primarily due to the increase in interest expense from increased borrowings as a result of the increase in our investment portfolio.
Net Investment Income
For the three and nine months ended June 30, 2026 net investment income totaled $25.9 million or $0.26 per share, and $78.3 million or $0.79 per share, respectively. For the three and nine months ended June 30, 2025 net investment income totaled $24.6 million or $0.25 per share, and $79.6 million or $0.88 per share, respectively. The decrease in net investment income for the nine months ended June 30, 2026, was primarily due to an increase in interest expense.
Net Realized Gains or Losses
For the three and nine months ended June 30, 2026 net realized gains (losses) totaled $37.3 million and $29.9 million, respectively. For the three and nine months ended June 30, 2025 net realized gains (losses) totaled $(14.8) million and $8.4 million, respectively. The change in net realized gains (losses) was primarily due to changes in the market conditions of our investments and the values at which investments were realized.
Unrealized Appreciation or Depreciation on Investments and Debt
For the three and nine months ended June 30, 2026, we reported net change in unrealized appreciation (depreciation) on investments of $(56.6) million and $(76.7) million, respectively. For the three and nine months ended June 30, 2025 we reported net change in unrealized appreciation (depreciation) on investments of $9.9 million and $(39.9) million, respectively. As of June 30, 2026 and September 30, 2025, our net unrealized appreciation (depreciation) on investments totaled $(122.8) million and $(46.1) million, respectively. The net change in unrealized appreciation (depreciation) on our investments was primarily due to the operating performance of the portfolio companies within our portfolio, changes in the capital market conditions of our investments, and realization of investments.
For the three and nine months ended June 30, 2026, our Credit Facility had a net change in unrealized appreciation (depreciation) of less than $0.1 million and less than $0.1 million, respectively. For the three and nine months ended June 30, 2025, our Credit Facility had a net change in unrealized appreciation (depreciation) of $(0.1) million and less than $0.1 million, respectively. As of June 30, 2026 and September 30, 2025, the net unrealized appreciation (depreciation) on the Credit Facility totaled zero and zero, respectively. The net change in net unrealized (appreciation) or depreciation was primarily due to changes in the capital markets.
Net Change in Net Assets Resulting from Operations
For the three and nine months ended June 30, 2026, net increase (decrease) in net assets resulting from operations totaled $7.6 million or $0.08 per share and $32.7 million, or $0.33 per share, respectively. For the three and nine months ended June 30, 2025, net increase (decrease) in net assets resulting from operations totaled $19.3 million or $0.19 per share and $48.9 million or $0.54 per share, respectively. The net increase or (decrease) from operations for the three and nine months ended June 30, 2026, was primarily due to operating performance of our portfolio and changes in capital market conditions of our investments along with change in size and cost yield of our debt portfolio and costs of financing.
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments, and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
In June 2026, we issued $105.0 million in aggregate principal amount of unsecured 2031 Notes. The effective interest rate on the 2031 Notes is 7.375% and they mature in June 2031.
For the nine months ended June 30, 2026 and 2025, the annualized weighted average cost of debt, inclusive of the fee on the undrawn commitment on the Credit Facility, amendment costs and debt issuance costs, was 6.1% and 6.9%, respectively. As of June 30, 2026 and September 30, 2025 we had $449.7 million and $34.1 million of unused borrowing capacity under the Credit Facility, respectively, subject to leverage and borrowing base restrictions.
As of June 30, 2026 and September 30, 2025, we had cash and cash equivalents of $100.8 million and $122.7 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.
During the three and nine months ended June 30, 2026, we did not issue any shares of our common stock under the ATM Programs. During the three and nine months ended June 30, 2025, we issued 2,800,000 shares and 21,638,000 shares of our common stock under the ATM Programs, respectively, at an average price of $11.31 per share and $11.34 per share raising $31.6 million and $244.8 million of net proceeds after commissions to the Sales Agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV, respectively.
For the nine months ended June 30, 2026, our operating activities provided cash of $276.1 million and our financing activities used cash of $298.0 million. Our operating activities provided cash primarily due to our investment activities and our financing activities used cash primarily due to repayments of our Credit Facility and 2026 Notes offset by proceeds received from the sales of $28.5 million of 2037 Class D Notes, $21.0 million of 2036-R Asset-Backed Debt D-R Notes to third parties and the issuance of $200.0 million of our 2029 Notes and the issuance of $105.0 million of our 2031 Notes.
For the nine months ended June 30, 2025, our operating activities used cash of $386.1 million and our financing activities provided cash of $376.7 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily due to proceeds from the 2037 Asset-Backed debt and proceeds from public offerings under our 2024 ATM Program partially offset by repayments of our Credit Facility.
DISTRIBUTIONS
During the three and nine months ended June 30, 2026 we declared distributions of $0.2883 per share and $0.9033 per share for total distributions of $28.6 million and $89.6 million. During the three and nine months ended June 30, 2025, we declared distributions of $0.3075 per share and $0.9225 per share for total distributions of $30.5 million and $83.4 million. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the SEC.
We will maintain a base dividend of $0.08 per share and supplemental dividend of $0.0033 per share for October, November and December.
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC, and stockholders may find such report on its website at www.pennantpark.com.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data)
June 30, 2026 September 30, 2025
--------------- --------------------
(unaudited)
--------------------
Assets
Investments at fair value
Non-controlled,
non-affiliated
investments (amortized
cost-- $2,132,947 and
$2,458,018,
respectively) $ 2,120,934 $ 2,491,360
Controlled, affiliated
investments (amortized
cost-- $494,500 and
$361,375, respectively) 383,724 281,968
----------- ----------------
Total investments (amortized
cost-- $2,627,447 and
$2,819,393, respectively) 2,504,658 2,773,328
Cash equivalents (cost--
$50,725 and $40,729,
respectively) 50,725 40,729
Cash (cost-- $50,090 and
$81,955, respectively) 50,083 81,959
Interest receivable 13,496 13,832
Distributions receivable 6,081 --
Receivable for investments
sold 7,472 1,369
Due from affiliates 233 321
Prepaid expenses and other
assets 2,094 2,143
----------- ----------------
Total assets 2,634,842 2,913,681
----------- ----------------
Liabilities
Credit Facility payable, at
fair value (cost-- $318,355
and $683,855, respectively) 318,310 683,837
2026 Notes payable, net
(par-- $0 and $185,000)
(unamortized deferred
financing costs of $0 and
$391, respectively) -- 184,609
2029 Notes payable, net
(par--$200,000 and $0)
(unamortized deferred
financing costs of $3,788
and $0, respectively) 196,212 --
2031 Notes payable, net
(par--$105,000 and $0)
(unamortized deferred
financing costs of $3,745
and $0, respectively) 101,255 --
2036 Asset-Backed Debt, net
(par--$0 and $287,000)
(unamortized deferred
financing costs of $0 and
$2,373, respectively) -- 284,627
2036-R Asset-Backed Debt, net
(par-- $287,000 and
$266,000) (unamortized
deferred financing costs of
$391 and $634,
respectively) 286,609 265,366
2037 Asset-Backed Debt, net
(par-- $389,500 and
$361,000) (unamortized
deferred financing costs of
$2,234 and $2,669,
respectively) 387,266 358,331
2038-R Asset-Backed Debt,
net (par--$287,000 and $0)
(unamortized deferred
financing costs of $2,135
and $0, respectively) 284,865 --
Payable for investments
purchased -- 14,852
Interest payable on debt 19,662 19,172
Distributions payable 8,265 10,170
Base management fee payable 6,381 6,549
Incentive fee payable 6,476 6,883
Accounts payable and accrued
expenses 1,320 2,166
Deferred tax liability 592 1,864
Due to affiliates -- 739
----------- ----------------
Total liabilities 1,617,213 1,839,165
----------- ----------------
Net assets
Common stock, 99,217,896 and
99,217,896 shares issued and
outstanding, respectively
Par value $0.001 per share
and 200,000,000 shares
authorized 99 99
Paid-in capital in excess of
par value 1,219,502 1,219,502
Accumulated deficit (201,972) (145,085)
----------- ----------------
Total net assets $ 1,017,629 $ 1,074,516
----------- ----------------
Total liabilities and net
assets $ 2,634,842 $ 2,913,681
=========== ================
Net asset value per share $ 10.26 $ 10.83
=========== ================
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
------------------- -------------------
2026 2025 2026 2025
-------- -------- -------- --------
Investment income:
From non-controlled,
non-affiliated
investments:
Interest $ 50,133 $ 50,856 $157,398 $147,533
Dividend 111 549 152 1,495
Other income 816 786 1,964 2,901
From controlled,
affiliated
investments:
Interest 8,947 7,373 25,444 27,526
Dividend 6,081 3,938 17,175 12,688
Other income -- -- -- 306
------- ------- ------- -------
Total investment
income 66,088 63,502 202,133 192,449
------- ------- ------- -------
Expenses:
Interest and
expenses on debt 25,029 22,547 76,321 67,437
Performance-based
incentive fee 6,476 5,396 19,573 19,146
Base management fee 6,381 5,929 19,622 16,797
General and
administrative
expenses 1,350 1,200 3,750 3,600
Administrative
services expenses 900 750 2,700 1,900
------- ------- ------- -------
Expenses before
amendment costs,
debt issuance
costs and
provision for
taxes 40,136 35,822 121,966 108,880
Provision for taxes
on net investment
income 50 200 300 650
Credit Facility
amendment and debt
issuance costs -- 2,855 1,578 3,297
------- ------- ------- -------
Total expenses 40,186 38,877 123,844 112,827
------- ------- ------- -------
Net investment
income 25,902 24,625 78,289 79,622
------- ------- ------- -------
Realized and
unrealized gain
(loss) on investments
and debt:
Net realized gain
(loss) on:
Non-controlled,
non-affiliated
investments 37,383 (14,842) 31,304 (14,456)
Non-controlled and
controlled,
affiliated
investments -- -- -- 22,811
Provision for taxes
on realized gain
(loss) on
investments (49) 12 (49) (82)
Debt extinguishment -- -- (1,380) --
------- ------- ------- -------
Net realized gain
(loss) on
investments and
debt 37,334 (14,830) 29,875 8,273
Net change in
unrealized
appreciation
(depreciation) on:
Non-controlled,
non-affiliated
investments (49,103) 16,233 (45,360) 9,546
Non-controlled and
controlled,
affiliated
investments (7,546) (6,351) (31,369) (49,401)
Provision for taxes
on unrealized
appreciation
(depreciation) on
investments 966 (303) 1,273 797
Debt appreciation
(depreciation) 23 (76) 27 15
------- ------- ------- -------
Net change in
unrealized
appreciation