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PFLT PennantPark Floating Rate Capital

Filed: 5 May 21, 4:06pm

7 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM             TO            

COMMISSION FILE NUMBER: 814-00891 

 

PENNANTPARK FLOATING RATE CAPITAL LTD.

(Exact name of registrant as specified in its charter)

 

MARYLAND

 

27-3794690

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

590 Madison Avenue, 15th Floor

New York, N.Y.

 

10022

(Address of principal executive offices)

 

(Zip Code)

(212) 905-1000

(Registrant’s Telephone Number, Including Area Code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

PFLT

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes    No  

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    No  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of May 5, 2021 was 38,772,074. 

 


 

PENNANTPARK FLOATING RATE CAPITAL LTD.

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

TABLE OF CONTENTS

 


 

2


 

PART I—CONSOLIDATED FINANCIAL INFORMATION

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where the context suggests otherwise, the terms “Company,” “we,” “our” or “us” refers to PennantPark Floating Rate Capital Ltd. and its wholly-owned consolidated subsidiaries; “Funding I” refers to PennantPark Floating Rate Funding I, LLC; “Taxable Subsidiary” refers to PFLT Investment Holdings, LLC; “PSSL” refers to PennantPark Senior Secured Loan Fund I LLC, an unconsolidated joint venture; “PennantPark Investment Advisers” or “Investment Adviser” refers to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refers to PennantPark Investment Administration, LLC; “2023 Notes” refers to our 4.3% Series A notes due 2023; “2026 Notes” refers to our 4.25% notes due 2026; “1940 Act” refers to the Investment Company Act of 1940, as amended; “SBCAA” refers to the Small Business Credit Availability Act; “Code” refers to the Internal Revenue Code of 1986, as amended; “RIC” refers to a regulated investment company under the Code; “BDC” refers to a business development company under the 1940 Act; “MCG” refers to MCG Capital Corporation; “Credit Facility” refers to our multi-currency senior secured revolving credit facility, as amended and restated with Truist Bank (formerly SunTrust Bank) and other lenders, or the Lenders; “Securitization Issuer” refers to PennantPark CLO I, Ltd.; “Securitization Issuers” refers to the Securitization Issuer and PennantPark CLO I, LLC; “Debt Securitization” refers to the $301.4 million term debt securitization completed by the Securitization Issuers; “2031 Asset-Backed Debt” refers to (i) the issuance of the Class A-1 Senior Secured Floating Rate Notes due 2031, the Class A-2 Senior Secured Fixed Rate Notes due 2031, the Class B-1 Senior Secured Floating Rate Notes due 2031, the Class B-2 Senior Secured Fixed Rate Notes due 2031, the Class C-1 Secured Deferrable Floating Rate Notes due 2031, the Class C-2 Notes Secured Deferrable Fixed Rate Notes due 2031, and the Class D Secured Deferrable Floating Notes due 2031 and (ii) the borrowing of the Class A‑1 Senior Secured Floating Rate Loans due 2031 by the Securitization Issuers in connection with the Debt Securitization; and “Depositor” refers to PennantPark CLO I Depositor, LLC. References to our portfolio, our investments, our Credit Facility, and our business include investments we make through our subsidiaries.

 

 

 

 

 

3

 


 

Item 1.

Consolidated Financial Statements

 

 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

March 31, 2021

 

 

September 30, 2020

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$835,250,686 and $915,874,757, respectively)

 

$

866,861,275

 

 

$

910,552,309

 

Non-controlled, affiliated investments (cost—$26,156,024 and $21,964,181, respectively)

 

 

6,841,460

 

 

 

11,086,834

 

Controlled, affiliated investments (cost���$203,046,955 and $179,112,500, respectively)

 

 

195,434,406

 

 

 

165,289,324

 

Total of investments (cost—$1,064,453,665 and $1,116,951,438, respectively)

 

 

1,069,137,141

 

 

 

1,086,928,467

 

Cash and cash equivalents (cost—$66,572,341 and $57,534,421, respectively)

 

 

66,572,811

 

 

 

57,511,928

 

Interest receivable

 

 

2,818,433

 

 

 

3,673,502

 

Prepaid expenses and other assets

 

 

 

 

 

173,318

 

Total assets

 

 

1,138,528,385

 

 

 

1,148,287,215

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

3,683,347

 

 

 

3,683,347

 

Payable for investments purchased

 

 

50,469,362

 

 

 

3,800,000

 

Credit Facility payable, at fair value (cost—$146,900,000 and $308,598,500, respectively) (See Notes 5 and 10)

 

 

146,205,500

 

 

 

299,047,275

 

2023 Notes payable, at fair value (par—$117,792,879 and $138,579,858, respectively) (See Notes 5 and 10)

 

 

114,200,197

 

 

 

129,295,008

 

2026 Notes payable, net (par—$100,000,000) (See Notes 5 and 10)

 

 

96,856,485

 

 

 

 

2031 Asset-Backed Debt, net (par—$228,000,000) (See Notes 5 and 10)

 

 

225,181,755

 

 

 

224,866,334

 

Interest payable on debt

 

 

3,026,964

 

 

 

3,601,479

 

Base management fee payable (See Note 3)

 

 

2,633,715

 

 

 

2,776,477

 

Performance-based incentive fee payable (See Note 3)

 

 

1,302,025

 

 

 

2,071,622

 

Accrued other expenses

 

 

1,994,792

 

 

 

1,875,281

 

Total liabilities

 

 

645,554,142

 

 

 

671,016,823

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 38,772,074 shares issued and outstanding Par value $0.001 per share and 100,000,000

   shares authorized

 

 

38,772

 

 

 

38,772

 

Paid-in capital in excess of par value

 

 

538,151,528

 

 

 

538,151,528

 

Accumulated distributable net loss

 

 

(45,216,057

)

 

 

(60,919,908

)

Total net assets

 

$

492,974,243

 

 

$

477,270,392

 

Total liabilities and net assets

 

$

1,138,528,385

 

 

$

1,148,287,215

 

Net asset value per share

 

$

12.71

 

 

$

12.31

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

13,724,538

 

 

$

20,307,380

 

 

$

29,025,969

 

 

$

39,217,274

 

Other income

 

 

490,763

 

 

 

1,140,500

 

 

 

1,372,548

 

 

 

1,913,603

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

183,438

 

 

 

233,772

 

 

 

279,900

 

 

 

459,125

 

Other income

 

 

102,263

 

 

 

 

 

 

122,570

 

 

 

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

2,659,019

 

 

 

3,069,785

 

 

 

5,321,895

 

 

 

6,225,109

 

Dividend

 

 

2,275,000

 

 

 

1,575,000

 

 

 

3,850,000

 

 

 

3,150,000

 

Other income

 

 

 

 

 

 

 

 

195,630

 

 

 

 

Total investment income

 

 

19,435,021

 

 

 

26,326,437

 

 

 

40,168,512

 

 

 

50,965,111

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

2,633,715

 

 

 

2,948,941

 

 

 

5,349,887

 

 

 

5,779,100

 

Performance-based incentive fee (See Note 3)

 

 

1,302,025

 

 

 

2,937,024

 

 

 

3,063,899

 

 

 

5,252,859

 

Interest and expenses on debt (See Note 10)

 

 

4,781,114

 

 

 

7,626,550

 

 

 

10,122,455

 

 

 

14,933,814

 

Administrative services expenses (See Note 3)

 

 

300,000

 

 

 

350,000

 

 

 

600,000

 

 

 

700,000

 

Other general and administrative expenses

 

 

400,000

 

 

 

616,077

 

 

 

800,000

 

 

 

1,232,153

 

Expenses before provision for taxes:

 

 

9,416,854

 

 

 

14,478,592

 

 

 

19,936,241

 

 

 

27,897,926

 

Provision for taxes

 

 

100,000

 

 

 

100,000

 

 

 

200,000

 

 

 

200,000

 

Total expenses

 

 

9,516,854

 

 

 

14,578,592

 

 

 

20,136,241

 

 

 

28,097,926

 

Net investment income

 

 

9,918,167

 

 

 

11,747,845

 

 

 

20,032,271

 

 

 

22,867,185

 

Realized and unrealized gain (loss) on investments and debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

473,661

 

 

 

(1,599,285

)

 

 

(1,234,038

)

 

 

(586,972

)

Non-controlled and controlled, affiliated investments

 

 

 

 

 

 

 

 

(1,052,048

)

 

 

 

Net realized gain (loss) on investments

 

 

473,661

 

 

 

(1,599,285

)

 

 

(2,286,086

)

 

 

(586,972

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

12,150,548

 

 

 

(40,004,484

)

 

 

34,687,828

 

 

 

(37,625,126

)

Controlled and non-controlled, affiliated investments

 

 

(333,952

)

 

 

(24,782,772

)

 

 

(81,186

)

 

 

(30,682,477

)

Debt (appreciation) depreciation (See Notes 5 and 10)

 

 

(10,535,079

)

 

 

33,537,647

 

 

 

(14,548,894

)

 

 

34,899,235

 

Net change in unrealized appreciation (depreciation) on investments and debt

 

 

1,281,517

 

 

 

(31,249,609

)

 

 

20,057,748

 

 

 

(33,408,368

)

Net realized and unrealized gain (loss) from investments and debt

 

 

1,755,178

 

 

 

(32,848,894

)

 

 

17,771,662

 

 

 

(33,995,340

)

Net increase (decrease) in net assets resulting from operations

 

$

11,673,345

 

 

$

(21,101,049

)

 

$

37,803,933

 

 

$

(11,128,155

)

Net increase (decrease) in net assets resulting from operations per common share (See Note 7)

 

$

0.30

 

 

$

(0.54

)

 

$

0.98

 

 

$

(0.29

)

Net investment income per common share

 

$

0.26

 

 

$

0.30

 

 

$

0.52

 

 

$

0.59

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net increase (decrease) in net assets resulting from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

9,918,167

 

 

$

11,747,845

 

 

$

20,032,271

 

 

$

22,867,185

 

Net realized gain (loss) on investments

 

 

473,661

 

 

 

(1,599,285

)

 

 

(2,286,086

)

 

 

(586,972

)

Net change in unrealized appreciation (depreciation) on investments

 

 

11,816,596

 

 

 

(64,787,256

)

 

 

34,606,642

 

 

 

(68,307,603

)

Net change in unrealized (appreciation) depreciation on debt

 

 

(10,535,079

)

 

 

33,537,647

 

 

 

(14,548,894

)

 

 

34,899,235

 

Net increase (decrease) in net assets resulting from operations

 

 

11,673,345

 

 

 

(21,101,049

)

 

 

37,803,933

 

 

 

(11,128,155

)

Distributions to stockholders

 

 

(11,050,041

)

 

 

(11,050,041

)

 

 

(22,100,082

)

 

 

(22,100,082

)

Net increase (decrease) in net assets

 

 

623,304

 

 

 

(32,151,090

)

 

 

15,703,851

 

 

 

(33,228,237

)

Net assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

492,350,939

 

 

 

501,980,364

 

 

 

477,270,392

 

 

 

503,057,511

 

End of period

 

$

492,974,243

 

 

$

469,829,274

 

 

$

492,974,243

 

 

$

469,829,274

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended March 31,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

37,803,933

 

 

$

(11,128,155

)

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash

   provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Net change in unrealized (appreciation) depreciation on investments

 

 

(34,606,642

)

 

 

68,307,603

 

Net change in unrealized appreciation (depreciation) on debt

 

 

14,548,894

 

 

 

(34,899,235

)

Net realized loss on investments

 

 

2,286,086

 

 

 

586,972

 

Net accretion of discount and amortization of premium

 

 

(1,355,492

)

 

 

(887,519

)

Purchases of investments

 

 

(227,201,031

)

 

 

(406,983,072

)

Payment-in-kind interest

 

 

(2,055,853

)

 

 

(1,089,736

)

Proceeds from dispositions of investments

 

 

281,669,989

 

 

 

243,107,247

 

Amortization of deferred financing costs

 

 

330,906

 

 

 

229,072

 

Decrease (increase) in interest receivable

 

 

855,069

 

 

 

(254,533

)

Increase in receivable for investments sold

 

 

 

 

 

(6,052,454

)

Decrease (increase) in prepaid expenses and other assets

 

 

173,318

 

 

 

(22,842

)

Increase (decrease) in payable for investments purchased

 

 

46,669,362

 

 

 

(12,033,794

)

(Decrease) increase in interest payable on debt

 

 

(574,515

)

 

 

1,627,778

 

(Decrease) increase in base management fee payable

 

 

(142,763

)

 

 

220,921

 

(Decrease) increase in performance-based incentive fee payable

 

 

(769,597

)

 

 

404,820

 

Increase (decrease) in accrued other expenses

 

 

119,512

 

 

 

(82,519

)

Net cash provided by (used in) operating activities

 

 

117,751,176

 

 

 

(158,949,446

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Distributions paid to stockholders

 

 

(22,100,082

)

 

 

(22,100,082

)

Repayment of 2023 Notes (See Notes 5 and 10)

 

 

(20,786,979

)

 

 

 

Proceeds from 2026 Notes issuance (See Note 10)

 

 

96,841,000

 

 

 

 

Borrowings under Credit Facility (See Notes 5 and 10)

 

 

113,500,000

 

 

 

245,000,000

 

Repayments under Credit Facility (See Notes 5 and 10)

 

 

(275,198,500

)

 

 

(97,000,000

)

Net cash (used in) provided by financing activities

 

 

(107,744,561

)

 

 

125,899,918

 

Net increase (decrease) in cash and cash equivalents

 

 

10,006,615

 

 

 

(33,049,528

)

Effect of exchange rate changes on cash

 

 

(945,732

)

 

 

(294,448

)

Cash and cash equivalents, beginning of period

 

 

57,511,928

 

 

 

63,337,728

 

Cash and cash equivalents, end of period

 

$

66,572,811

 

 

$

29,993,752

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

10,366,064

 

 

$

13,076,964

 

Taxes paid

 

$

403,761

 

 

$

501,633

 

Non-cash exchanges and conversions

 

$

20,334,379

 

 

$

8,025,882

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

MARCH 31, 2021

(Unaudited)

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

Investments in Non-Controlled, Non-Affiliated Portfolio Companies—175.8% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—154.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 Freemont Street Acquisition, LLC

 

08/11/2025

 

Hotels, Restaurants and Leisure

 

 

9.50

%

 

1M L+800

 

 

 

6,697,697

 

 

$

6,590,489

 

 

$

6,764,674

 

Altamira Technologies, LLC

 

07/24/2025

 

IT Services

 

 

8.00

%

 

3M L+700

 

 

 

5,206,625

 

 

 

5,146,716

 

 

 

5,011,376

 

Altamira Technologies, LLC (Revolver) (7)

 

07/24/2025

 

IT Services

 

 

8.00

%

 

3M L+700

 

 

 

575,000

 

 

 

575,000

 

 

 

553,437

 

Altamira Technologies, LLC (Revolver) (7), (9)

 

07/24/2025

 

IT Services

 

 

 

 

 

 

 

 

1,581,250

 

 

 

 

 

 

(59,297

)

American Auto Auction Group, LLC

 

01/02/2024

 

Transportation: Consumer

 

 

5.75

%

 

3M L+475

 

 

 

6,829,816

 

 

 

6,776,332

 

 

 

6,624,922

 

American Insulated Glass, LLC

 

12/21/2023

 

Building Products

 

 

6.50

%

 

3M L+550

 

 

 

8,950,175

 

 

 

8,845,668

 

 

 

8,860,673

 

American Teleconferencing Services, Ltd.

 

06/08/2023

 

Telecommunications

 

 

7.50

%

 

3M L+650

 

 

 

9,642,556

 

 

 

9,553,435

 

 

 

7,521,194

 

Apex Service Partners, LLC

 

07/31/2025

 

Energy Equipment and Services

 

 

6.25

%

 

1M L+525

 

 

 

7,110,037

 

 

 

7,047,848

 

 

 

7,110,037

 

Apex Service Partners, LLC Term Loan B

 

07/31/2025

 

Energy Equipment and Services

 

 

6.50

%

 

1M L+550

 

 

 

1,253,880

 

 

 

1,245,348

 

 

 

1,253,880

 

Apex Service Partners, LLC Term Loan B (9)

 

07/31/2021

 

Energy Equipment and Services

 

 

 

 

 

 

 

 

612,116

 

 

 

 

 

 

 

API Technologies Corp.

 

05/11/2026

 

Electronic Equipment, Instruments, and Components

 

 

4.36

%

 

1M L+425

 

 

 

5,895,000

 

 

 

5,869,364

 

 

 

5,791,838

 

Applied Technical Services, LLC

 

12/29/2026

 

Commercial Services & Supplies

 

 

6.75

%

 

3M L+575

 

 

 

4,987,500

 

 

 

4,880,541

 

 

 

4,912,688

 

Applied Technical Services, LLC (7), (9)

 

06/29/2022

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

3,181,818

 

 

 

 

 

 

(11,932

)

Applied Technical Services, LLC (Revolver) (7), (9)

 

12/29/2026

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

1,272,727

 

 

 

 

 

 

(19,091

)

BEI Precision Systems & Space Company, Inc.

 

04/28/2023

 

Aerospace and Defense

 

 

6.50

%

 

3M L+550

 

 

 

6,433,162

 

 

 

6,385,809

 

 

 

6,433,162

 

By Light Professional IT Services, LLC

 

05/16/2022

 

High Tech Industries

 

 

7.25

%

 

3M L+625

 

 

 

28,373,444

 

 

 

28,266,763

 

 

 

28,373,444

 

By Light Professional IT Services, LLC (Revolver)

 

05/16/2022

 

High Tech Industries

 

 

7.25

%

 

3M L+625

 

 

 

600,982

 

 

 

600,982

 

 

 

600,982

 

By Light Professional IT Services, LLC (Revolver) (9)

 

05/16/2022

 

High Tech Industries

 

 

 

 

 

 

 

 

2,461,620

 

 

 

 

 

 

 

Cadence Aerospace, LLC (7)

 

11/14/2023

 

Aerospace and Defense

 

 

9.50

%

 

3M L+850

 

 

 

2,961,464

 

 

 

2,941,151

 

 

 

2,869,658

 

 

 

 

 

 

 

 

(PIK 9.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardenas Markets LLC

 

11/29/2023

 

Beverage, Food and Tobacco

 

 

6.75

%

 

1M L+575

 

 

 

3,775,734

 

 

 

3,778,457

 

 

 

3,756,855

 

CHA Holdings, Inc.

 

04/10/2025

 

Environmental Industries

 

 

5.50

%

 

3M L+450

 

 

 

1,606,777

 

 

 

1,601,705

 

 

 

1,574,641

 

Challenger Performance Optimization, Inc. (Revolver) (7), (9)

 

08/31/2023

 

Business Services

 

 

 

 

 

 

 

 

711,447

 

 

 

 

 

 

(32,015

)

Compex Legal Services, Inc.

 

02/09/2026

 

Professional Services

 

 

6.75

%

 

3M L+575

 

 

 

7,691,774

 

 

 

7,555,914

 

 

 

7,437,176

 

Compex Legal Services, Inc. (Revolver) (7)

 

02/07/2025

 

Professional Services

 

 

6.75

%

 

3M L+575

 

 

 

983,962

 

 

 

983,962

 

 

 

951,393

 

Compex Legal Services, Inc. (Revolver) (7), (9)

 

02/07/2025

 

Professional Services

 

 

 

 

 

 

 

 

421,698

 

 

 

 

 

 

(13,958

)

Confluent Health, LLC

 

06/24/2026

 

Health Providers and Services

 

 

5.11

%

 

1M L+500

 

 

 

3,930,000

 

 

 

3,896,502

 

 

 

3,920,175

 

Datalot Inc.

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

 

9,445,616

 

 

 

9,292,410

 

 

 

9,445,616

 

Datalot Inc. (Revolver) (7), (9)

 

01/24/2025

 

Insurance

 

 

 

 

 

 

 

 

3,833,619

 

 

 

 

 

 

 

Digital Room Holdings, Inc.

 

05/22/2026

 

Media: Advertising, Printing and Publishing

 

 

5.20

%

 

1M L+500

 

 

 

6,580,487

 

 

 

6,494,335

 

 

 

6,437,888

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

6,579,004

 

 

 

6,534,437

 

 

 

6,513,213

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

P+475

 

 

 

2,049,216

 

 

 

2,049,216

 

 

 

2,028,723

 

(Revolver)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

2,341,961

 

 

 

 

 

 

(23,420

)

(Revolver) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Douglas Sewer Intermediate, LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

3,006,420

 

 

 

2,996,507

 

 

 

2,976,356

 

DRS Holdings III, Inc.

 

11/03/2025

 

Personal Products

 

 

6.75

%

 

3M L+575

 

 

 

4,937,500

 

 

 

4,896,911

 

 

 

4,986,875

 

DRS Holdings III, Inc. (Revolver) (7), (9)

 

11/03/2025

 

Personal Products

 

 

 

 

 

 

 

 

903,716

 

 

-

 

 

 

9,037

 

East Valley Tourist Development Authority

 

03/07/2022

 

Hotel, Gaming and Leisure

 

 

9.00

%

 

3M L+800

 

 

 

13,289,079

 

 

 

13,237,939

 

 

 

13,089,743

 

 

 

 

 

 

 

 

(PIK 3.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ECL Entertainment, LLC

 

04/01/2028

 

Hotels, Restaurants and Leisure

 

 

8.25

%

 

1M L+750

 

 

 

10,269,231

 

 

 

10,166,538

 

 

 

10,269,231

 

ECM Industries, LLC (Revolver)

 

12/23/2025

 

Electronic Equipment, Instruments, and Components

 

 

5.50

%

 

1M L+450

 

 

 

457,208

 

 

 

457,208

 

 

 

454,922

 

ECM Industries, LLC (Revolver) (9)

 

12/23/2025

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

 

457,208

 

 

 

 

 

 

(2,286

)

eCommission Financial Services, Inc. (10)

 

10/05/2023

 

Banking, Finance, Insurance & Real Estate

 

 

6.00

%

 

1M L+500

 

 

 

15,821,875

 

 

 

15,821,875

 

 

 

15,584,547

 

eCommission Financial Services, Inc. (Revolver) (7), (9), (10)

 

10/05/2023

 

Banking, Finance, Insurance & Real Estate

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

 

 

(75,000

)

Education Networks of America, Inc.

 

05/06/2021

 

Telecommunications

 

 

10.00

%

 

1M L+925

 

 

 

9,601,188

 

 

 

9,601,188

 

 

 

9,601,188

 

 

 

 

 

 

 

 

(PIK 4.75

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education Networks of America, Inc. (Revolver)

 

05/06/2021

 

Telecommunications

 

 

10.00

%

 

1M L+925

 

 

 

2,155,566

 

 

 

2,155,566

 

 

 

2,155,566

 

 

 

 

 

 

 

 

(PIK 4.75

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education Networks of America, Inc. (Revolver) (9)

 

05/06/2021

 

Telecommunications

 

 

 

 

 

 

 

 

114,630

 

 

 

 

 

 

 

Efficient Collaborative Retail Marketing Company, LLC

 

06/15/2022

 

Media: Diversified and Production

 

 

7.75

%

 

3M L+675

 

 

 

7,189,139

 

 

 

7,176,280

 

 

 

6,703,872

 

GCOM Software LLC

 

11/14/2022

 

High Tech Industries

 

 

7.75

%

 

1M L+625

 

 

 

13,468,460

 

 

 

13,322,903

 

 

 

13,468,460

 

GCOM Software LLC (Revolver) (7)

 

11/14/2022

 

High Tech Industries

 

 

8.75

%

 

1M L+550

 

 

 

533,333

 

 

 

533,333

 

 

 

533,333

 

GCOM Software LLC (Revolver) (7), (9)

 

11/14/2022

 

High Tech Industries

 

 

 

 

 

 

 

 

2,133,333

 

 

 

 

 

 

 

Global Holdings InterCo LLC

 

03/16/2026

 

Diversified Financial Services

 

 

7.00

%

 

3M L+600

 

 

 

12,500,000

 

 

 

12,312,694

 

 

 

12,468,750

 

Good2Grow LLC

 

11/18/2024

 

Beverages

 

 

5.25

%

 

3M L+425

 

 

 

5,699,510

 

 

 

5,662,350

 

 

 

5,699,510

 

Good2Grow LLC (Revolver) (7), (9)

 

11/16/2023

 

Beverages

 

 

 

 

 

 

 

 

3,137,000

 

 

 

 

 

 

 

Hancock Roofing and Construction L.L.C.

 

12/31/2026

 

Insurance

 

 

6.25

%

 

3M L+425

 

 

 

3,491,250

 

 

 

3,407,862

 

 

 

3,403,969

 

Hancock Roofing and Construction L.L.C. (7), (9)

 

12/31/2022

 

Insurance

 

 

 

 

 

 

 

 

1,500,000

 

 

 

 

 

 

(37,500

)

Hancock Roofing and Construction L.L.C. (Revolver) (7), (9)

 

12/31/2026

 

Insurance

 

 

 

 

 

 

 

 

750,000

 

 

 

 

 

 

(18,750

)

Holdco Sands Intermediate, LLC

 

12/19/2025

 

Aerospace and Defense

 

 

7.50

%

 

3M L+600

 

 

 

1,995,000

 

 

 

1,957,044

 

 

 

1,965,075

 

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

5.50

%

 

1M L+450

 

 

 

7,378,548

 

 

 

7,329,172

 

 

 

7,230,977

 

HW Holdco, LLC (Revolver) (7), (9)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

1,451,613

 

 

 

 

 

 

(29,032

)

IMIA Holdings, Inc. (Revolver) (7), (9)

 

10/26/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,968,504

 

 

 

 

 

 

 

Impact Group, LLC

 

06/27/2023

 

Wholesale

 

 

8.37

%

 

1M L+737

 

 

 

12,535,274

 

 

 

12,494,988

 

 

 

12,660,627

 

Innova Medical Ophthalmics Inc. (5), (10)

 

04/13/2023

 

Capital Equipment

 

 

9.25

%

 

3M L+825

 

 

 

3,262,015

 

 

 

3,238,527

 

 

 

3,131,534

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Innova Medical Ophthalmics Inc. (Revolver) (5), (7), (10)

 

04/13/2023

 

Capital Equipment

 

 

9.25

%

 

3M L+825

 

 

 

532,168

 

 

 

532,168

 

 

 

510,881

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Integrative Nutrition, LLC

 

09/29/2023

 

Consumer Services

 

 

5.75

%

 

3M L+475

 

 

 

22,043,450

 

 

 

21,924,500

 

 

 

22,043,450

 

Integrative Nutrition, LLC (Revolver) (7), (9)

 

09/29/2023

 

Consumer Services

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

 

 

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

642,857

 

 

 

642,857

 

 

 

629,164

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7), (9)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

785,714

 

 

 

 

 

 

(16,736

)

Kentucky Downs, LLC (7), (9)

 

03/07/2025

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

448,276

 

 

 

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

8


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

MARCH 31, 2021

(Unaudited)

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

LAV Gear Holdings, Inc.

 

10/31/2024

 

Capital Equipment

 

 

8.50

%

 

1M L+750

 

 

 

9,250,452

 

 

$

9,212,166

 

 

$

8,573,319

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LAV Gear Holdings, Inc. (Revolver) (7)

 

10/31/2024

 

Capital Equipment

 

 

8.50

%

 

1M L+750

 

 

 

1,648,477

 

 

 

1,648,477

 

 

 

1,527,808

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lightspeed Buyer Inc.

 

02/03/2026

 

Healthcare Technology

 

 

6.50

%

 

1M L+550

 

 

 

24,474,552

 

 

 

24,079,887

 

 

 

24,107,434

 

Lightspeed Buyer Inc. (7), (9)

 

08/03/2021

 

Healthcare Technology

 

 

 

 

 

 

 

 

1,891,068

 

 

 

 

 

 

(9,455

)

Lightspeed Buyer Inc. (Revolver) (7)

 

02/03/2026

 

Healthcare Technology

 

 

6.50

%

 

1M L+550

 

 

 

833,100

 

 

 

833,100

 

 

 

820,603

 

Lightspeed Buyer Inc. (Revolver) (7), (9)

 

02/03/2026

 

Healthcare Technology

 

 

 

 

 

 

 

 

1,666,199

 

 

 

 

 

 

(24,993

)

Lombart Brothers, Inc.

 

04/13/2023

 

Capital Equipment

 

 

9.25

%

 

3M L+825

 

 

 

13,597,652

 

 

 

13,498,783

 

 

 

13,053,746

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lombart Brothers, Inc. (Revolver) (7)

 

04/13/2023

 

Capital Equipment

 

 

9.25

%

 

3M L+825

 

 

 

1,241,726

 

 

 

1,241,726

 

 

 

1,192,057

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MAG DS Corp.

 

04/01/2027

 

Aerospace and Defense

 

 

6.50

%

 

1M L+550

 

 

 

3,980,000

 

 

 

3,793,462

 

 

 

3,900,400

 

MeritDirect, LLC

 

05/23/2024

 

Media

 

 

6.50

%

 

3M L+550

 

 

 

27,890,629

 

 

 

27,605,528

 

 

 

27,263,091

 

MeritDirect, LLC (Revolver) (7), (9)

 

05/23/2024

 

Media

 

 

 

 

 

 

 

 

4,481,655

 

 

 

 

 

 

(100,837

)

Mission Critical Electronics, Inc.

 

09/28/2022

 

Capital Equipment

 

 

6.00

%

 

1M L+500

 

 

 

609,099

 

 

 

605,744

 

 

 

609,099

 

Mission Critical Electronics, Inc. (Revolver) (7), (9)

 

09/28/2021

 

Capital Equipment

 

 

 

 

 

 

 

 

1,325,088

 

 

 

 

 

 

 

Output Services Group, Inc.

 

03/27/2024

 

Business Services

 

 

5.50

%

 

1M L+450

 

 

 

4,439,430

 

 

 

3,980,081

 

 

 

4,106,473

 

Ox Two, LLC

 

02/27/2023

 

Construction and Building

 

 

7.25

%

 

1M L+625

 

 

 

6,678,546

 

 

 

6,678,546

 

 

 

6,678,546

 

Ox Two, LLC (Revolver) (7)

 

02/27/2023

 

Construction and Building

 

 

7.25

%

 

1M L+625

 

 

 

108,444

 

 

 

108,444

 

 

 

108,444

 

Ox Two, LLC (Revolver) (7), (9)

 

02/27/2023

 

Construction and Building

 

 

 

 

 

 

 

 

447,111

 

 

 

 

 

 

 

Plant Health Intermediate, Inc.

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

647,333

 

 

 

643,946

 

 

 

640,860

 

PlayPower, Inc.

 

05/08/2026

 

Leisure Products

 

 

5.70

%

 

1M L+550

 

 

 

5,339,361

 

 

 

5,296,909

 

 

 

5,265,944

 

PRA Events, Inc.

 

08/07/2025

 

Business Services

 

 

11.50

%

 

1M L+1,050

 

 

 

2,981,396

 

 

 

2,547,378

 

 

 

2,631,082

 

 

 

 

 

 

 

 

(PIK 11.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Questex, LLC

 

09/09/2024

 

Media: Diversified and Production

 

 

6.75

%

 

3M L+575

 

 

 

7,312,500

 

 

 

7,221,999

 

 

 

6,654,375

 

Questex, LLC (Revolver)

 

09/09/2024

 

Media: Diversified and Production

 

 

6.75

%

 

3M L+575

 

 

 

877,660

 

 

 

877,660

 

 

 

798,670

 

Questex, LLC (Revolver) (7), (9)

 

09/09/2024

 

Media: Diversified and Production

 

 

 

 

 

 

 

 

319,149

 

 

 

 

 

 

(28,723

)

Rancho Health MSO, Inc. (7)

 

12/18/2025

 

Healthcare Equipment and Supplies

 

 

6.75

%

 

3M L+575

 

 

 

3,675,000

 

 

 

3,596,142

 

 

 

3,610,688

 

Rancho Health MSO, Inc. (7), (9)

 

12/18/2022

 

Healthcare Equipment and Supplies

 

 

 

 

 

 

 

 

1,050,000

 

 

 

 

 

 

(18,375

)

Rancho Health MSO, Inc. (Revolver) (7), (9)

 

12/18/2025

 

Healthcare Equipment and Supplies

 

 

 

 

 

 

 

 

525,000

 

 

 

 

 

 

(9,187

)

Recteq, LLC

 

01/29/2026

 

Leisure Products

 

 

7.00

%

 

3M L+600

 

 

 

6,500,000

 

 

 

6,374,503

 

 

 

6,370,000

 

Recteq, LLC (Revolver) (7), (9)

 

01/29/2026

 

Leisure Products

 

 

 

 

 

 

 

 

1,295,775

 

 

 

 

 

 

(25,915

)

Research Horizons, LLC

 

06/28/2022

 

Media: Advertising, Printing and Publishing

 

 

7.25

%

 

3M L+625

 

 

 

6,617,483

 

 

 

6,585,016

 

 

 

6,485,133

 

Research Now Group, Inc. and Survey Sampling

 

12/20/2024

 

Business Services

 

 

6.50

%

 

3M L+550

 

 

 

17,412,071

 

 

 

17,047,275

 

 

 

17,207,479

 

International LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Riverpoint Medical, LLC

 

06/20/2025

 

Healthcare Equipment and Supplies

 

 

5.50

%

 

3M L+450

 

 

 

4,912,500

 

 

 

4,871,846

 

 

 

4,882,534

 

Riverpoint Medical, LLC (Revolver) (7), (9)

 

06/20/2025

 

Healthcare Equipment and Supplies

 

 

 

 

 

 

 

 

909,091

 

 

 

 

 

 

(5,545

)

Riverside Assessments, LLC

 

03/10/2025

 

Professional Services

 

 

8.25

%

 

3M L+725

 

 

 

16,291,343

 

 

 

16,038,721

 

 

 

15,598,961

 

Sales Benchmark Index LLC

 

01/03/2025

 

Professional Services

 

 

7.75

%

 

3M L+600

 

 

 

8,128,508

 

 

 

8,000,403

 

 

 

7,579,834

 

Sales Benchmark Index LLC (Revolver) (7), (9)

 

01/03/2025

 

Professional Services

 

 

 

 

 

 

 

1,292,683

 

 

 

 

 

 

(87,256

)

Salient CRGT Inc.

 

02/28/2022

 

High Tech Industries

 

 

7.50

%

 

1M L+650

 

 

 

1,671,283

 

 

 

1,663,899

 

 

 

1,639,529

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

Electronic Equipment, Instruments, and Components

 

 

7.00

%

 

1M L+550

 

 

 

3,797,506

 

 

 

3,753,198

 

 

 

3,797,506

 

Sargent & Greenleaf Inc. (Revolver) (9)

 

12/20/2024

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

1,056,367

 

 

 

 

 

 

 

Schlesinger Global, Inc.

 

07/14/2025

 

Professional Services

 

 

8.00

%

 

1M L+700

 

 

 

13,438,829

 

 

 

13,324,420

 

 

 

12,363,722

 

Schlesinger Global, Inc. (Revolver)

 

07/14/2025

 

Professional Services

 

 

8.00

%

 

1M L+700

 

 

 

776,453

 

 

 

776,453

 

 

 

714,337

 

Schlesinger Global, Inc. (Revolver) (7), (9)

 

07/14/2025

 

Professional Services

 

 

 

 

 

 

 

 

1,093,848

 

 

 

 

 

 

(87,508

)

Sigma Defense Systems, LLC

 

12/18/2025

 

IT Services

 

 

9.75

%

 

3M L+875

 

 

 

5,814,927

 

 

 

5,678,378

 

 

 

5,698,628

 

Sigma Defense Systems, LLC (Revolver) (7), (9)

 

12/18/2025

 

IT Services

 

 

 

 

 

 

 

 

837,391

 

 

 

 

 

 

(16,748

)

Signature Systems Holding Company

 

05/03/2024

 

Commercial Services & Supplies

 

 

7.50

%

 

1M L+650

 

 

 

12,025,000

 

 

 

11,902,904

 

 

 

11,874,687

 

Signature Systems Holding Company (Revolver)

 

05/03/2024

 

Commercial Services & Supplies

 

 

7.50

%

 

1M L+650

 

 

 

1,747,312

 

 

 

1,747,312

 

 

 

1,725,470

 

Signature Systems Holding Company - Term Loan II

 

12/31/2021

 

Commercial Services & Supplies

 

 

8.50

%

 

1M L+750

 

 

 

698,925

 

 

 

688,479

 

 

 

690,188

 

Smile Brands Inc.

 

10/14/2024

 

Healthcare and Pharmaceuticals

 

 

5.40

%

 

1M L+450

 

 

 

3,480,124

 

 

 

3,480,124

 

 

 

3,497,524

 

Smile Brands Inc. (Revolver) (7), (9)

 

10/14/2024

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,616,250

 

 

 

 

 

 

8,081

 

Snak Club, LLC (Revolver) (7)

 

07/19/2021

 

Beverage, Food and Tobacco

 

 

6.50

%

 

3M L+550

 

 

 

100,000

 

 

 

100,000

 

 

 

99,500

 

Snak Club, LLC (Revolver) (7), (9)

 

07/19/2021

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

395,136

 

 

 

 

 

 

(1,976

)

Solutionreach, Inc.

 

01/17/2024

 

Healthcare Technology

 

 

6.75

%

 

3M L+575

 

 

 

6,283,246

 

 

 

6,206,485

 

 

 

6,283,246

 

Solutionreach, Inc. (Revolver) (7), (9)

 

01/17/2024

 

Healthcare Technology

 

 

 

 

 

 

 

1,665,000

 

 

 

 

 

 

 

Spear Education, LLC

 

02/26/2025

 

Professional Services

 

 

6.50

%

 

3M L+550

 

 

 

14,973,750

 

 

 

14,851,806

 

 

 

14,824,012

 

Spear Education, LLC (7), (9)

 

02/26/2022

 

Professional Services

 

 

 

 

 

 

 

6,875,000

 

 

 

 

 

 

(68,750

)

Spectacle Gary Holdings, LLC

 

12/23/2025

 

Hotels, Restaurants and Leisure

 

 

11.00

%

 

1M L+900

 

 

 

5,000,000

 

 

 

4,874,271

 

 

 

5,450,000

 

STV Group Incorporated

 

12/11/2026

 

Construction & Engineering

 

 

5.36

%

 

1M L+525

 

 

 

6,257,023

 

 

 

6,201,448

 

 

 

5,975,457

 

TAC LifePort Purchaser, LLC

 

03/01/2026

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

5,536,343

 

 

 

5,426,878

 

 

 

5,447,649

 

TAC LifePort Purchaser, LLC (Revolver) (7)

 

03/01/2026

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

172,286

 

 

 

172,286

 

 

 

169,526

 

TAC LifePort Purchaser, LLC (Revolver) (7), (9)

 

03/01/2026

 

Aerospace and Defense

 

 

 

 

 

 

1,130,040

 

 

 

 

 

(18,104

)

TeleGuam Holdings, LLC

 

11/20/2025

 

Telecommunications

 

 

5.50

%

 

1M L+450

 

 

 

6,320,944

 

 

 

6,264,666

 

 

 

6,257,734

 

Teneo Holdings LLC

 

07/18/2025

 

Diversified Financial Services

 

 

6.25

%

 

1M L+525

 

 

 

19,531,731

 

 

 

19,091,793

 

 

 

19,478,019

 

The Aegis Technologies Group, LLC

 

10/31/2025

 

Aerospace and Defense

 

 

6.50

%

 

3M L+550

 

 

 

9,226,875

 

 

 

9,095,330

 

 

 

9,134,606

 

The Infosoft Group, LLC

 

09/16/2024

 

Media: Broadcasting and Subscription

 

 

6.75

%

 

3M L+575

 

 

 

25,141,986

 

 

 

24,949,588

 

 

 

25,141,986

 

The Original Cakerie, Co. (5), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

6.00

%

 

2M L+500

 

 

 

1,773,641

 

 

 

1,764,819

 

 

 

1,773,641

 

The Original Cakerie Ltd. (5), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

5.50

%

 

2M L+450

 

 

 

5,348,582

 

 

 

5,331,121

 

 

 

5,348,582

 

The Original Cakerie Ltd. (Revolver) (5), (9), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

1,418,484

 

 

 

 

 

 

 

TPC Canada Parent, Inc. and TPC US Parent, LLC (5), (10)

 

11/24/2025

 

Food Products

 

 

6.25

%

 

3M L+525

 

 

 

4,937,500

 

 

 

4,897,412

 

 

 

4,789,375

 

TVC Enterprises, LLC

 

03/26/2026

 

Professional Services

 

 

6.75

%

 

1M L+575

 

 

 

30,112,380

 

 

 

29,675,934

 

 

 

29,811,256

 

TVC Enterprises, LLC (Revolver) (7), (9)

 

03/26/2026

 

Professional Services

 

 

 

 

 

 

 

 

1,303,813

 

 

-

 

 

 

(13,038

)

TWS Acquisition Corporation

 

06/16/2025

 

Diversified Consumer Services

 

 

7.25

%

 

1M L+625

 

 

 

6,636,062

 

 

 

6,510,393

 

 

 

6,636,062

 

TWS Acquisition Corporation (Revolver) (7), (9)

 

06/16/2025

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

2,627,857

 

 

 

 

 

 

 

Tyto Athene, LLC

 

08/27/2024

 

Aerospace and Defense

 

 

6.25

%

 

1M L+525

 

 

 

11,695,801

 

 

 

11,577,453

 

 

 

11,695,801

 

Tyto Athene, LLC (Revolver) (7), (9)

 

08/27/2024

 

Aerospace and Defense

 

 

 

 

 

 

 

 

6,818,182

 

 

 

 

 

 

 

Tyto Athene, LLC (New Issue)

 

04/01/2028

 

Aerospace and Defense

 

 

6.25

%

 

1M L+550

 

 

 

28,596,591

 

 

 

28,157,315

 

 

 

28,157,319

 

Tyto Athene, LLC (New Issue) (Revolver) (7), (9)

 

04/01/2026

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,039,799

 

 

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

9


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

MARCH 31, 2021

(Unaudited)

 

Issuer Name

 

Maturity

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

UBEO, LLC

 

04/03/2024

 

 

Capital Equipment

 

 

5.50

%

 

3M L+450

 

 

 

13,955,379

 

 

$

13,877,035

 

 

$

13,817,815

 

UBEO, LLC (Revolver)

 

04/03/2024

 

 

Capital Equipment

 

 

5.50

%

 

3M L+450

 

 

 

880,000

 

 

 

880,000

 

 

 

869,000

 

UBEO, LLC (Revolver) (9)

 

04/03/2024

 

 

Capital Equipment

 

 

 

 

 

 

 

 

2,053,333

 

 

 

 

 

 

(25,667

)

Urology Management Associates, LLC

 

08/30/2024

 

 

Healthcare Providers and Services

 

 

6.00

%

 

3M L+500

 

 

 

4,937,500

 

 

 

4,872,178

 

 

 

4,875,781

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare and Pharmaceuticals

 

 

8.50

%

 

1M L+750

 

 

 

2,949,219

 

 

 

2,949,219

 

 

 

2,949,219

 

Virgin Pulse, Inc.

 

04/01/2028

 

 

Healthcare Providers and Services

 

 

4.75

%

 

3M L+400

 

 

 

5,000,000

 

 

 

4,950,000

 

 

 

4,962,500

 

Vision Purchaser Corporation

 

06/10/2025

 

 

Media

 

 

7.75

%

 

1M L+675

 

 

 

14,321,451

 

 

 

14,094,138

 

 

 

13,748,593

 

Walker Edison Furniture Company LLC

 

03/31/2027

 

 

Wholesale

 

 

6.75

%

 

1M L+575

 

 

 

30,000,000

 

 

 

29,250,293

 

 

 

29,250,000

 

Whitney, Bradley & Brown, Inc.

 

10/18/2022

 

 

Aerospace and Defense

 

 

8.50

%

 

1M L+750

 

 

 

4,045,310

 

 

 

4,011,580

 

 

 

4,085,764

 

Wildcat Buyerco, Inc.

 

02/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

6.25

%

 

3M L+525

 

 

 

3,072,572

 

 

 

3,029,453

 

 

 

3,050,163

 

Wildcat Buyerco, Inc. (7), (9)

 

02/27/2022

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

2,491,176

 

 

 

 

 

 

3,114

 

Wildcat Buyerco, Inc. (Revolver) (7), (9)

 

02/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

533,824

 

 

 

 

 

 

(8,383

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

765,246,597

 

 

 

759,197,207

 

Second Lien Secured Debt—6.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holdings, LLC, Term Loan B

 

02/01/2026

 

 

Business Services

 

 

9.00

%

 

 

 

 

 

12,129,344

 

 

 

12,129,344

 

 

 

12,129,344

 

 

 

 

 

 

 

 

 

 

(PIK 9.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holding, LLC - 1.5 Lien Term Loan (7)

 

05/01/2023

 

 

Business Services

 

 

14.00

%

 

 

 

 

 

2,189,596

 

 

 

2,189,596

 

 

 

2,189,596

 

 

 

 

 

 

 

 

 

 

(PIK 14.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

9.25

%

 

3M L+825

 

 

 

9,738,580

 

 

 

9,663,166

 

 

 

9,738,580

 

Inventus Power, Inc.

 

09/29/2024

 

 

Electronic Equipment, Instruments, and Components

 

 

9.50

%

 

3M L+850

 

 

 

3,000,000

 

 

 

2,940,110

 

 

 

2,940,000

 

Mailsouth Inc. (7)

 

04/23/2025

 

 

Media: Advertising, Printing and Publishing

 

 

15.00

%

 

 

 

 

 

804,373

 

 

 

804,373

 

 

 

804,373

 

 

 

 

 

 

 

 

 

 

(PIK 15.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Network, LLC (7)

 

11/30/2024

 

 

Healthcare and Pharmaceuticals

 

 

11.00

%

 

3M L+1,000

 

 

 

2,218,850

 

 

 

2,205,478

 

 

 

2,218,850

 

 

 

 

 

 

 

 

 

 

(PIK 12.30

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QuantiTech LLC

 

02/04/27

 

 

Aerospace and Defense

 

 

11.00

%

 

3M L+1,000

 

 

 

150,000

 

 

 

147,120

 

 

 

147,000

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,079,187

 

 

 

30,167,743

 

Preferred Equity— 2.2% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,458

 

 

 

21,870

 

 

 

 

(PT Network, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holding, LLC, Series A-1 (8)

 

 

 

 

Business Services

 

 

14.00

%

 

 

 

 

 

7,041

 

 

 

7,040,844

 

 

 

6,352,528

 

MeritDirect Holdings, LP (7), (8)

 

 

 

 

Media

 

 

 

 

 

 

 

 

960

 

 

 

960,000

 

 

 

1,062,033

 

NXOF Holdings, Inc. (NextiraOne Federal, LLC) (7)

 

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

733

 

 

 

733,049

 

 

 

848,358

 

PT Network Intermediate Holdings, LLC (7)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

11.00

%

 

3M L+1,000

 

 

 

33

 

 

 

429,000

 

 

 

512,488

 

Signature CR Intermediate Holdco, Inc. (7)

 

 

 

 

Commercial Services & Supplies

 

 

12.00

%

 

 

 

 

 

1,323

 

 

 

1,323,421

 

 

 

1,440,924

 

TPC Holding Company, LP (5), (7), (10)

 

 

 

 

Food Products

 

 

 

 

 

 

 

 

409

 

 

 

409,011

 

 

 

465,831

 

UniTek Global Services, Inc. -

 

 

 

 

Telecommunications

 

 

20.00

%

 

 

 

 

 

343,861

 

 

 

343,861

 

 

 

 

Super Senior Preferred Equity (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UniTek Global Services, Inc. - Senior Preferred Equity (7)

 

 

 

 

Telecommunications

 

 

19.00

%

 

 

 

 

 

448,851

 

 

 

448,851

 

 

 

 

UniTek Global Services, Inc. (7)

 

 

 

 

Telecommunications

 

 

13.50

%

 

 

 

 

 

1,047,317

 

 

 

670,283

 

 

 

 

Total Preferred Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,380,190

 

 

 

10,682,162

 

Common Equity/Warrants— 13.6% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affinion Group Holdings, Inc. (Warrants)(7)

 

04/10/2024

 

 

Consumer Goods: Durable

 

 

 

 

 

 

 

 

8,893

 

 

 

244,998

 

 

 

 

AG Investco LP (7), (8)

 

 

 

 

Software

 

 

 

 

 

 

 

 

805,164

 

 

 

805,164

 

 

 

1,107,840

 

AG Investco LP (7), (8), (9)

 

 

 

 

Software

 

 

 

 

 

 

 

 

194,836

 

 

 

 

 

 

 

Altamira Intermediate Company II, Inc. (7)

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

1,437,500

 

 

 

1,437,500

 

 

 

916,082

 

By Light Investco LP (7), (8)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

21,908

 

 

 

2,172,391

 

 

 

11,788,322

 

By Light Investco LP (7), (8),  (9)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

7,401

 

 

 

 

 

 

 

CI (Allied) Investment Holdings, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

120,962

 

 

 

1,243,217

 

 

 

272,538

 

(Allied America, Inc.) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

13,333

 

 

 

200,000

 

 

 

 

(PT Network, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (Summit) Investment Holdings, LLC

 

 

 

 

Construction and Building

 

 

 

 

 

 

 

 

64,262

 

 

 

696,296

 

 

 

1,012,070

 

(SFP Holding, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holding, LLC, Series B (8)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

1,489,508

 

 

 

330,791

 

 

 

 

DecoPac Holdings Inc. (7)

 

 

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

1,633

 

 

 

1,632,744

 

 

 

2,048,637

 

Delta InvestCo LP (Sigma Defense Systems, LLC) (7), (8)

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

502,435

 

 

 

502,435

 

 

 

516,972

 

Delta InvestCo LP (Sigma Defense Systems, LLC) (7), (8), (9)

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

502,435

 

 

 

 

 

 

 

ECM Investors, LLC (7), (8)

 

 

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

 

295,982

 

 

 

295,982

 

 

 

772,638

 

eCommission Holding Corporation (7), (10)

 

 

 

 

 

Banking, Finance, Insurance & Real Estate

 

 

 

 

 

 

 

 

20

 

 

 

251,156

 

 

 

206,899

 

Faraday Holdings, LLC (7)

 

 

 

 

Construction and Building

 

 

 

 

 

 

 

 

1,141

 

 

 

58,044

 

 

 

390,247

 

Gauge InfosoftCoInvest, LLC

 

 

 

 

Media: Broadcasting and Subscription

 

 

 

 

 

 

 

 

500

 

 

 

143,663

 

 

 

1,431,530

 

(The Infosoft Group, LLC) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gauge Lash Coinvest LLC (7)

 

 

 

 

Personal Products

 

 

 

 

 

 

 

 

1,485,953

 

 

 

1,760,670

 

 

 

2,788,836

 

Gauge Schlesinger Coinvest LLC (7)

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

437

 

 

 

437,371

 

 

 

317,617

 

Gauge TVC Coinvest, LLC (TVC Enterprises, LLC) (7)

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

391,144

 

 

 

 

 

 

741,470

 

GCOM InvestCo LP (7), (8)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

1,722,632

 

 

 

1,596,634

 

 

 

3,570,631

 

GCOM InvestCo LP (7), (8), (9)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

277,368

 

 

 

 

 

 

 

Go Dawgs Capital III, LP

 

 

 

 

Building Products

 

 

 

 

 

 

 

 

324,675

 

 

 

324,675

 

 

 

415,585

 

(American Insulated Glass, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hancock Claims Consultants Investors, LLC (7), (8)

 

 

 

 

Insurance

 

 

 

 

 

 

 

 

450,000

 

 

 

450,000

 

 

 

494,750

 

IIN Group Holdings, LLC

 

 

 

 

Consumer Services

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000,000

 

 

 

1,519,888

 

(Integrative Nutrition, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ironclad Holdco, LLC (Applied Technical Services, LLC) (7), (8)

 

 

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

5,040

 

 

 

504,000

 

 

 

534,838

 

ITC Rumba, LLC (Cano Health, LLC)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

46,763

 

 

 

431,039

 

 

 

9,082,822

 

JWC/UMA Holdings, L.P. (7)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000,000

 

 

 

1,609,637

 

JWC-WE Holdings, L.P.

 

 

 

 

Wholesale

 

 

 

 

 

 

 

 

1,381,741

 

 

 

1,381,741

 

 

 

12,135,981

 

(Walker Edison Furniture Company LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kentucky Racing Holdco, LLC (Warrants) (7), (8)

 

 

 

 

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

87,345

 

 

 

 

 

 

369,331

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

10


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

MARCH 31, 2021

(Unaudited)

 

Issuer Name

 

Maturity

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

Lightspeed Investment Holdco LLC (7)

 

 

 

 

Healthcare Technology

 

 

 

 

 

 

 

 

585,587

 

 

$

585,587

 

 

$

721,685

 

MeritDirect Holdings, LP (7), (8)

 

 

 

 

Media

 

 

 

 

 

 

 

 

960

 

 

 

 

 

 

 

MSpark, LLC

 

 

 

 

Media: Advertising, Printing and Publishing

 

 

 

 

 

 

 

 

3,988

 

 

 

1,287,502

 

 

 

1,395,413

 

NEPRT Parent Holdings, LLC (Recteq, LLC) (7), (8)

 

 

 

 

Leisure Products

 

 

 

 

 

 

 

 

1,494

 

 

 

1,493,506

 

 

 

1,544,031

 

NXOF Holdings, Inc. (NextiraOne Federal, LLC) (7)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

14,960

 

 

 

14,960

 

 

 

116,284

 

OceanSound Discovery Equity, LP (Holdco Sands Intermediate, LLC) (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

173,638

 

 

 

1,736,381

 

 

 

1,689,101

 

PT Network Intermediate Holdings, LLC (7)

 

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

25

 

 

 

293,560

 

 

 

1,399,560

 

QuantiTech InvestCo LP (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

700

 

 

 

65,957

 

 

 

424,767

 

QuantiTech InvestCo LP (7), (8), (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

967

 

 

 

 

 

 

 

QuantiTech InvestCo II LP (7), (8),

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

40

 

 

 

24,000

 

 

 

24,000

 

RFMG Parent, LP (7)

 

 

 

 

Healthcare Equipment and Supplies

 

 

 

 

 

 

 

 

1,050,000

 

 

 

1,050,000

 

 

 

1,050,000

 

SBI Holdings Investments LLC (Sales Benchmark Index LLC) (7), (8)

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

64,634

 

 

 

646,341

 

 

 

277,009

 

Signature CR Intermediate Holdco, Inc. (7)

 

 

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

70

 

 

 

69,654

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Capital Equipment

 

 

 

 

 

 

 

 

500

 

 

 

500,000

 

 

 

583,200

 

Class A (US Dominion, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Capital Equipment

 

 

 

 

 

 

 

 

500

 

 

 

 

 

 

1,649,908

 

Class B (US Dominion, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAC LifePort Holdings, LLC

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

488,372

 

 

 

488,372

 

 

 

489,119

 

TPC Holding Company, LP (5), (7), (10)

 

 

 

 

Food Products

 

 

 

 

 

 

 

 

21,527

 

 

 

21,527

 

 

 

183,409

 

UniTek Global Services, Inc. (7)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

213,739

 

 

 

 

 

 

 

UniTek Global Services, Inc. (Warrants) (7)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

23,889

 

 

 

 

 

 

 

WBB Equity, LLC (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

142,857

 

 

 

142,857

 

 

 

890,000

 

Wildcat Parent, LP (Wildcat Buyerco, Inc.) (7), (8)

 

 

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

 

2,240

 

 

 

223,997

 

 

 

331,516

 

Total Common Equity/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,544,712

 

 

 

66,814,163

 

Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

835,250,686

 

 

 

866,861,275

 

Investments in Non-Controlled, Affiliated Portfolio Companies—1.4% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holdings, LLC - DIP Facility (7)

 

06/16/2021

 

 

Beverage, Food and Tobacco

 

 

17.00

%

 

 

 

 

 

2,126,624

 

 

 

2,126,624

 

 

 

2,126,624

 

Country Fresh Holdings, LLC - DIP Facility (7), (9)

 

06/16/2021

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

347,401

 

 

 

 

 

 

 

Country Fresh Holdings, LLC - Super Senior Term Loan (7)

 

06/01/2022

 

 

Beverage, Food and Tobacco

 

 

0.00

%

(6)

 

 

 

 

3,316,059

 

 

 

3,285,322

 

 

 

3,316,059

 

Country Fresh Holdings, LLC (7)

 

05/01/2023

 

 

Beverage, Food and Tobacco

 

 

0.00

%

(6)

 

 

 

 

1,544,161

 

 

 

1,520,356

 

 

 

503,397

 

Country Fresh Holdings, LLC (Revolver) (7)

 

05/01/2023

 

 

Beverage, Food and Tobacco

 

 

0.00

%

(6)

 

 

 

 

2,746,564

 

 

 

2,746,564

 

 

 

895,380

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,678,866

 

 

 

6,841,460

 

Second Lien Secured Debt—0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holdings, LLC (7)

 

04/29/2024

 

 

Beverage, Food and Tobacco

 

 

0.00

%

(6)

 

 

 

 

6,183,227

 

 

 

6,023,808

 

 

 

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,023,808

 

 

 

 

Common Equity/Warrants—0.0% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holding Company Inc. (7)

 

 

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

8,034

 

 

 

10,453,350

 

 

 

 

Total Common Equity/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,453,350

 

 

 

 

Total Investments in Non-Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,156,024

 

 

 

6,841,460

 

Investments in Controlled, Affiliated Portfolio Companies—39.6% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—30.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketplace Events, LLC - Super Priority First Lien Term Loan (7)

 

09/30/2025

 

 

Media: Diversified and Production

 

 

6.25

%

 

3M L+525

 

 

 

3,312,579

 

 

 

3,312,579

 

 

 

3,312,579

 

 

 

 

 

 

 

 

 

 

(PIK 6.25

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketplace Events, LLC - Super Priority First Lien (7), (9)

 

09/30/2025

 

 

Media: Diversified and Production

 

 

 

 

 

 

 

 

3,260,502

 

 

 

 

 

 

 

Marketplace Events, LLC

 

09/30/2026

 

 

Media: Diversified and Production

 

 

0.00

%

(6)

 

 

 

 

24,757,541

 

 

 

19,046,876

 

 

 

20,135,240

 

PennantPark Senior Secured Loan Fund I LLC (7), (9), (10)

 

05/06/2024

 

 

Financial Services

 

 

8.20

%

 

3M L+800

 

 

 

126,481,250

 

 

 

126,481,250

 

 

 

126,481,250

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

148,840,705

 

 

 

149,929,069

 

Equity Interests—9.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New MPE Holdings, LLC (Marketplace Events, LLC) (7)

 

 

 

 

Media: Diversified and Production

 

 

 

 

 

 

 

 

349

 

 

 

 

 

 

 

PennantPark Senior Secured Loan Fund I LLC (7), (9), (10)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

54,206

 

 

 

54,206,250

 

 

 

45,505,337

 

Total Equity Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,206,250

 

 

 

45,505,337

 

Total Investments in Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

203,046,955

 

 

 

195,434,406

 

Total Investments—216.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,064,453,665

 

 

 

1,069,137,141

 

Cash and Cash Equivalents—13.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,157,000

 

 

 

7,157,000

 

BNY Mellon Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59,415,341

 

 

 

59,415,811

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

66,572,341

 

 

 

66,572,811

 

Total Investments and Cash Equivalents—230.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,131,026,006

 

 

$

1,135,709,952

 

Liabilities in Excess of Other Assets—(130.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(642,735,709

)

Net Assets—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

492,974,243

 

 

(1)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable London Interbank Offered Rate, or LIBOR or “L”, or Prime rate, or “P.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day LIBOR rate (1M L, 2M L, 3M L, or 6M L, respectively), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes payment-in-kind, or PIK, interest and other fee rates, if any.

(2)

Valued based on our accounting policy (See Note 2). The value of all securities was determined using significant unobservable inputs (See Note 5).

(3)

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.

(4)

The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities.

(5)

Non-U.S. company or principal place of business outside the United States.

(6)

Non-income producing securities.

(7)

The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2031 Asset-Backed Debt (See Note 10) and held through PennantPark CLO I, Ltd.

(8)

Investment is held through our Taxable Subsidiary (See Note 1).

(9)

Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(10)

The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2021, qualifying assets represent 81% of our total assets and non-qualifying assets represent 19% of our total assets.

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

11


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2020

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

Investments in Non-Controlled, Non-Affiliated Portfolio Companies—190.8% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—175.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 Freemont Street Acquisition, LLC

 

08/11/2025

 

Hotels, Restaurants and Leisure

 

 

9.50

%

 

1M L+800

 

 

 

6,697,697

 

 

$

6,581,574

 

 

$

6,362,812

 

Advantage Sales & Marketing

 

07/23/2021

 

Food and Staples Retailing

 

 

4.25

%

 

1M L+325

 

 

 

3,158,375

 

 

 

3,084,907

 

 

 

3,095,997

 

Altamira Technologies, LLC

 

07/24/2025

 

IT Services

 

 

7.00

%

 

3M L+600

 

 

 

6,313,001

 

 

 

6,233,142

 

 

 

6,092,046

 

Altamira Technologies, LLC (Revolver) (7)

 

07/24/2025

 

IT Services

 

 

7.00

%

 

3M L+600

 

 

 

1,437,500

 

 

 

1,437,500

 

 

 

1,387,187

 

Altamira Technologies, LLC (Revolver) (7), (9)

 

07/24/2025

 

IT Services

 

 

 

 

 

 

 

 

718,750

 

 

 

 

 

 

(25,156

)

American Auto Auction Group, LLC

 

01/02/2024

 

Transportation: Consumer

 

 

6.00

%

 

3M L+500

 

 

 

7,385,098

 

 

 

7,317,949

 

 

 

7,163,545

 

American Insulated Glass, LLC

 

12/21/2023

 

Building Products

 

 

6.50

%

 

3M L+550

 

 

 

14,775,105

 

 

 

14,574,748

 

 

 

14,479,603

 

American Teleconferencing Services, Ltd.

 

06/08/2023

 

Telecommunications

 

 

7.50

%

 

3M L+650

 

 

 

9,651,242

 

 

 

9,550,005

 

 

 

8,203,555

 

Apex Service Partners, LLC

 

07/31/2025

 

Energy Equipment and Services

 

 

6.25

%

 

1M L+525

 

 

 

6,978,475

 

 

 

6,920,667

 

 

 

6,769,121

 

Apex Service Partners, LLC (7), (9)

 

07/31/2021

 

Energy Equipment and Services

 

 

 

 

 

 

 

 

1,198,613

 

 

 

 

 

 

(35,958

)

API Technologies Corp.

 

05/11/2026

 

Electronic Equipment, Instruments, and Components

 

 

4.40

%

 

1M L+425

 

 

 

5,925,000

 

 

 

5,897,574

 

 

 

5,776,875

 

BEI Precision Systems & Space Company, Inc.

 

04/28/2023

 

Aerospace and Defense

 

 

6.50

%

 

3M L+550

 

 

 

11,610,000

 

 

 

11,527,096

 

 

 

11,493,900

 

By Light Professional IT Services, LLC

 

05/16/2022

 

High Tech Industries

 

 

7.25

%

 

3M L+625

 

 

 

28,863,220

 

 

 

28,711,219

 

 

 

28,574,588

 

By Light Professional IT Services, LLC (Revolver)

 

05/16/2022

 

High Tech Industries

 

 

7.25

%

 

3M L+625

 

 

 

2,504,092

 

 

 

2,504,092

 

 

 

2,479,051

 

By Light Professional IT Services, LLC (Revolver) (7), (9)

 

05/16/2022

 

High Tech Industries

 

 

 

 

 

 

 

 

558,511

 

 

 

 

 

 

(5,585

)

Cadence Aerospace, LLC (7)

 

11/14/2023

 

Aerospace and Defense

 

 

9.50

%

 

3M L+650

 

 

 

2,884,399

 

 

 

2,860,365

 

 

 

2,767,292

 

Cano Health, LLC

 

06/02/2025

 

Healthcare and Pharmaceuticals

 

 

8.50

%

 

1M L+750

 

 

 

14,882,169

 

 

 

14,771,615

 

 

 

14,993,786

 

Cardenas Markets LLC

 

11/29/2023

 

Beverage, Food and Tobacco

 

 

6.75

%

 

1M L+575

 

 

 

3,795,450

 

 

 

3,798,714

 

 

 

3,795,450

 

Centauri Group Holdings, LLC

 

02/12/2024

 

Aerospace and Defense

 

 

6.25

%

 

3M L+525

 

 

 

3,248,900

 

 

 

3,244,298

 

 

 

3,232,655

 

CHA Holdings, Inc.

 

04/10/2025

 

Environmental Industries

 

 

5.50

%

 

3M L+450

 

 

 

7,291,746

 

 

 

7,267,251

 

 

 

7,145,911

 

Challenger Performance Optimization, Inc. (Revolver) (7), (9)

 

08/31/2023

 

Business Services

 

 

 

 

 

 

 

 

711,447

 

 

 

 

 

 

(49,801

)

Compex Legal Services, Inc.

 

02/09/2026

 

Professional Services

 

 

6.75

%

 

3M L+575

 

 

 

7,730,621

 

 

 

7,582,329

 

 

 

7,589,151

 

Compex Legal Services, Inc. (7), (9)

 

02/08/2021

 

Professional Services

 

 

 

 

 

 

 

 

3,322,470

 

 

 

 

 

 

(27,576

)

Compex Legal Services, Inc. (Revolver) (7)

 

02/07/2025

 

Professional Services

 

 

6.75

%

 

3M L+575

 

 

 

983,962

 

 

 

983,962

 

 

 

965,956

 

Compex Legal Services, Inc. (Revolver) (7), (9)

 

02/07/2025

 

Professional Services

 

 

 

 

 

 

 

 

421,698

 

 

 

 

 

 

(7,717

)

Confluent Health, LLC

 

06/24/2026

 

Health Providers and Services

 

 

5.15

%

 

1M L+500

 

 

 

3,950,000

 

 

 

3,913,661

 

 

 

3,890,750

 

Datalot Inc.

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

 

15,257,804

 

 

 

14,979,266

 

 

 

15,276,113

 

Datalot Inc. (Revolver) (7)

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

 

3,833,619

 

 

 

3,833,619

 

 

 

3,838,219

 

Digital Room Holdings, Inc.

 

05/22/2026

 

Media: Advertising, Printing and Publishing

 

 

5.27

%

 

1M L+500

 

 

 

9,875,000

 

 

 

9,736,008

 

 

 

9,183,750

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

6,612,916

 

 

 

6,553,834

 

 

 

6,513,722

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

P+475

 

 

 

3,220,196

 

 

 

3,220,196

 

 

 

3,171,893

 

(Revolver)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

1,170,980

 

 

 

 

 

 

(17,565

)

(Revolver) (7), (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Douglas Sewer Intermediate, LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

3,021,798

 

 

 

3,008,407

 

 

 

2,976,471

 

DRS Holdings III, Inc.

 

11/03/2025

 

Personal Products

 

 

6.75

%

 

3M L+575

 

 

 

4,962,500

 

 

 

4,918,144

 

 

 

4,871,686

 

DRS Holdings III, Inc. (Revolver) (7), (9)

 

11/03/2025

 

Personal Products

 

 

 

 

 

 

 

 

903,716

 

 

 

 

 

 

(16,538

)

East Valley Tourist Development Authority

 

03/07/2022

 

Hotel, Gaming and Leisure

 

 

9.00

%

 

3M L+800

 

 

 

19,039,079

 

 

 

18,917,984

 

 

 

18,467,906

 

 

 

 

 

 

 

 

(PIK 3.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ECM Industries, LLC

 

12/23/2025

 

Electronic Equipment, Instruments, and Components

 

 

5.50

%

 

1M L+450

 

 

 

5,075,958

 

 

 

5,028,206

 

 

 

5,050,578

 

ECM Industries, LLC (Revolver)

 

12/23/2025

 

Electronic Equipment, Instruments, and Components

 

 

5.50

%

 

1M L+450

 

 

 

914,415

 

 

 

914,415

 

 

 

902,345

 

eCommission Financial Services, Inc. (10)

 

10/05/2023

 

Banking, Finance, Insurance & Real Estate

 

 

6.00

%

 

1M L+500

 

 

 

16,131,250

 

 

 

16,131,250

 

 

 

15,889,281

 

eCommission Financial Services, Inc. (Revolver) (7), (9), (10)

 

10/05/2023

 

Banking, Finance, Insurance & Real Estate

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

 

 

(75,000

)

Education Networks of America, Inc.

 

05/06/2021

 

Telecommunications

 

 

10.00

%

 

1M L+925

 

 

 

9,985,621

 

 

 

9,985,621

 

 

 

9,985,621

 

 

 

 

 

 

 

 

(PIK 4.75

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education Networks of America, Inc. (Revolver)

 

05/06/2021

 

Telecommunications

 

 

10.00

%

 

1M L+925

 

 

 

2,243,444

 

 

 

2,243,444

 

 

 

2,243,444

 

 

 

 

 

 

 

 

(PIK 4.75

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficient Collaborative Retail Marketing Company, LLC

 

06/15/2022

 

Media: Diversified and Production

 

 

7.75

%

 

3M L+675

 

 

 

7,189,139

 

 

 

7,168,054

 

 

 

6,937,519

 

Empire Resorts, Inc.

 

03/22/2021

 

Hotel, Gaming and Leisure

 

 

2.89

%

 

1M L+225

 

 

 

7,500,000

 

 

 

7,471,938

 

 

 

7,425,000

 

FlexPrint, LLC

 

01/02/2024

 

Professional Services

 

 

7.12

%

 

3M L+684

 

 

 

4,975,898

 

 

 

4,916,661

 

 

 

4,839,060

 

FlexPrint, LLC (7), (9)

 

12/31/2020

 

Professional Services

 

 

 

 

 

 

 

 

3,077,342

 

 

 

 

 

 

(61,547

)

GCOM Software LLC

 

11/14/2022

 

High Tech Industries

 

 

7.75

%

 

1M L+625

 

 

 

13,707,757

 

 

 

13,504,876

 

 

 

13,707,757

 

GCOM Software LLC (Revolver)

 

11/14/2022

 

High Tech Industries

 

 

8.75

%

 

1M L+550

 

 

 

2,133,333

 

 

 

2,133,333

 

 

 

2,133,333

 

GCOM Software LLC (Revolver) (7), (9)

 

11/14/2022

 

High Tech Industries

 

 

 

 

 

 

 

 

533,333

 

 

 

 

 

 

 

Good2Grow LLC

 

11/18/2024

 

Beverages

 

 

5.25

%

 

3M L+425

 

 

 

5,699,510

 

 

 

5,657,300

 

 

 

5,656,763

 

Good2Grow LLC (Revolver) (7), (9)

 

11/16/2023

 

Beverages

 

 

 

 

 

 

 

 

3,137,000

 

 

 

 

 

 

(23,528

)

GSM Holdings, Inc.

 

06/03/2024

 

Consumer Goods: Durable

 

 

5.50

%

 

3M L+450

 

 

 

19,130,304

 

 

 

19,041,110

 

 

 

18,939,001

 

GSM Holdings, Inc. (Revolver)

 

06/03/2024

 

Consumer Goods: Durable

 

 

5.50

%

 

3M L+450

 

 

 

7,126,484

 

 

 

7,126,484

 

 

 

7,055,219

 

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

5.50

%

 

1M L+450

 

 

 

7,416,290

 

 

 

7,357,894

 

 

 

7,193,802

 

HW Holdco, LLC (Revolver) (7), (9)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

1,451,613

 

 

 

 

 

 

(43,548

)

IMIA Holdings, Inc. (Revolver) (7), (9)

 

10/28/2024

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,968,504

 

 

 

 

 

 

 

Impact Group, LLC

 

06/27/2023

 

Wholesale

 

 

8.37

%

 

1M L+737

 

 

 

12,671,202

 

 

 

12,622,034

 

 

 

12,734,558

 

Innova Medical Ophthalmics Inc. (5), (10)

 

04/13/2023

 

Capital Equipment

 

 

7.25

%

 

3M L+625

 

 

 

3,271,649

 

 

 

3,244,173

 

 

 

3,072,079

 

Innova Medical Ophthalmics Inc. (Revolver) (5), (7), (10)

 

04/13/2023

 

Capital Equipment

 

 

7.25

%

 

3M L+625

 

 

 

530,973

 

 

 

530,973

 

 

 

498,584

 

Integrative Nutrition, LLC

 

09/29/2023

 

Consumer Services

 

 

5.75

%

 

3M L+475

 

 

 

22,173,199

 

 

 

22,028,349

 

 

 

21,840,601

 

Integrative Nutrition, LLC (Revolver) (7), (9)

 

09/29/2023

 

Consumer Services

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

 

 

(75,000

)

Inventus Power, Inc.

 

04/30/2021

 

Consumer Goods: Durable

 

 

6.50

%

 

1M L+650

 

 

 

3,709,390

 

 

 

3,702,960

 

 

 

3,672,296

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

1,071,429

 

 

 

1,071,429

 

 

 

1,047,857

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7), (9)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

357,143

 

 

 

 

 

 

(7,857

)

Kentucky Downs, LLC

 

03/07/2025

 

Hotels, Restaurants and Leisure

 

 

9.50

%

 

1M L+850

 

 

 

5,499,731

 

 

 

5,395,498

 

 

 

5,417,236

 

Kentucky Downs, LLC (7), (9)

 

03/07/2025

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

448,276

 

 

 

 

 

 

(6,724

)

LAV Gear Holdings, Inc.

 

10/31/2024

 

Capital Equipment

 

 

8.50

%

 

1M L+750

 

 

 

9,028,277

 

 

 

8,984,046

 

 

 

8,315,946

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LAV Gear Holdings, Inc. (Revolver) (7)

 

10/31/2024

 

Capital Equipment

 

 

8.50

%

 

1M L+750

 

 

 

1,607,584

 

 

 

1,607,584

 

 

 

1,480,745

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lightspeed Buyer Inc.

 

02/03/2026

 

Healthcare Technology

 

 

6.25

%

 

1M L+525

 

 

 

30,362,602

 

 

 

29,830,439

 

 

 

29,983,070

 

Lightspeed Buyer Inc. (7), (9)

 

08/03/2021

 

Healthcare Technology

 

 

 

 

 

 

 

 

1,891,068

 

 

 

 

 

 

(4,728

)

Lightspeed Buyer Inc. (Revolver)

 

02/03/2026

 

Healthcare Technology

 

 

6.25

%

 

1M L+525

 

 

 

2,499,299

 

 

 

2,499,299

 

 

 

2,468,058

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

12


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

SEPTEMBER 30, 2020

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

Lombart Brothers, Inc.

 

04/13/2023

 

Capital Equipment

 

 

7.25

%

 

3M L+625

 

 

 

13,639,301

 

 

$

13,517,803

 

 

$

12,807,304

 

Lombart Brothers, Inc. (Revolver) (7)

 

04/13/2023

 

Capital Equipment

 

 

7.25

%

 

3M L+625

 

 

 

1,238,938

 

 

 

1,238,938

 

 

 

1,163,363

 

Long Island Vision Management, LLC

 

09/07/2023

 

Healthcare and Pharmaceuticals

 

 

5.76

%

 

3M L+475

 

 

 

8,969,009

 

 

 

8,919,084

 

 

 

8,551,950

 

LSF9 Atlantis Holdings, LLC

 

05/01/2023

 

Retail

 

 

7.00

%

 

1M L+600

 

 

 

13,231,250

 

 

 

13,162,333

 

 

 

12,820,552

 

MAG DS Corp.

 

04/01/2027

 

Aerospace and Defense

 

 

6.50

%

 

1M L+550

 

 

 

4,000,000

 

 

 

3,800,000

 

 

 

3,805,000

 

Manna Pro Products, LLC

 

12/08/2023

 

Consumer Goods: Non-Durable

 

 

7.00

%

 

1M L+600

 

 

 

8,305,000

 

 

 

8,253,987

 

 

 

8,081,596

 

Marketplace Events LLC

 

01/27/2023

 

Media: Diversified and Production

 

 

0.00

%

(6)

 

 

 

 

5,284,919

 

 

 

5,220,978

 

 

 

4,464,171

 

Marketplace Events LLC (11)

 

01/27/2023

 

Media: Diversified and Production

 

 

0.00

%

(6)

 

 

C

$

16,213,270

 

 

 

11,377,025

 

 

 

10,252,929

 

Marketplace Events LLC (Revolver)

 

01/27/2023

 

Media: Diversified and Production

 

 

0.00

%

(6)

 

 

 

 

1,703,163

 

 

 

1,703,163

 

 

 

1,438,662

 

MeritDirect, LLC

 

05/23/2024

 

Media

 

 

6.50

%

 

3M L+550

 

 

 

29,582,555

 

 

 

29,236,103

 

 

 

28,177,384

 

MeritDirect, LLC (Revolver) (7), (9)

 

05/23/2024

 

Media

 

 

 

 

 

 

 

 

4,481,655

 

 

 

 

 

 

(212,879

)

Mission Critical Electronics, Inc.

 

09/28/2022

 

Capital Equipment

 

 

6.00

%

 

1M L+500

 

 

 

612,191

 

 

 

607,716

 

 

 

604,783

 

Mission Critical Electronics, Inc. (Revolver) (7), (9)

 

09/28/2021

 

Capital Equipment

 

 

 

 

 

 

 

 

1,325,088

 

 

 

 

 

 

(16,034

)

Output Services Group, Inc.

 

03/27/2024

 

Business Services

 

 

5.50

%

 

1M L+450

 

 

 

4,462,303

 

 

 

3,937,732

 

 

 

4,060,696

 

Ox Two, LLC

 

02/27/2023

 

Construction and Building

 

 

7.25

%

 

1M L+625

 

 

 

12,526,325

 

 

 

12,473,095

 

 

 

12,463,694

 

Ox Two, LLC (Revolver) (7)

 

02/27/2023

 

Construction and Building

 

 

7.25

%

 

1M L+625

 

 

 

108,444

 

 

 

108,444

 

 

 

107,902

 

Ox Two, LLC (Revolver) (7), (9)

 

02/27/2023

 

Construction and Building

 

 

 

 

 

 

 

 

447,111

 

 

 

 

 

 

(2,236

)

Peninsula Pacific Entertainment LLC (7)

 

11/13/2024

 

Hotel, Gaming and Leisure

 

 

7.40

%

 

1M L+725

 

 

 

10,224,431

 

 

 

10,193,277

 

 

 

9,508,720

 

Plant Health Intermediate, Inc. (7)

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

6.75

%

 

3M L+575

 

 

 

650,644

 

 

 

646,164

 

 

 

640,884

 

PlayPower, Inc.

 

05/08/2026

 

Leisure Products

 

 

5.72

%

 

1M L+550

 

 

 

5,367,361

 

 

 

5,320,837

 

 

 

5,098,992

 

PRA Events, Inc.

 

08/08/2022

 

Business Services

 

 

0.00

%

(6)

1M L+700

 

 

 

2,558,746

 

 

 

2,527,407

 

 

 

2,154,464

 

Questex, LLC

 

09/09/2024

 

Media: Diversified and Production

 

 

6.75

%

 

3M L+575

 

 

 

7,350,000

 

 

 

7,245,118

 

 

 

6,762,000

 

Questex, LLC (Revolver)

 

09/09/2024

 

Media: Diversified and Production

 

 

6.75

%

 

3M L+575

 

 

 

598,404

 

 

 

598,404

 

 

 

550,532

 

Questex, LLC (Revolver) (7), (9)

 

09/09/2024

 

Media: Diversified and Production

 

 

 

 

 

 

 

 

598,404

 

 

 

 

 

 

(47,872

)

Research Horizons, LLC

 

06/28/2022

 

Media: Advertising, Printing and Publishing

 

 

7.25

%

 

3M L+625

 

 

 

6,894,172

 

 

 

6,847,485

 

 

 

6,618,405

 

Research Now Group, Inc. and Survey Sampling

 

12/20/2024

 

Business Services

 

 

6.50

%

 

3M L+550

 

 

 

23,266,875

 

 

 

22,662,940

 

 

 

21,975,563

 

International LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Riverpoint Medical, LLC

 

06/20/2025

 

Healthcare Equipment and Supplies

 

 

5.50

%

 

3M L+450

 

 

 

4,937,500

 

 

 

4,892,077

 

 

 

4,764,194

 

Riverpoint Medical, LLC (Revolver) (7), (9)

 

06/20/2025

 

Healthcare Equipment and Supplies

 

 

 

 

 

 

 

 

909,091

 

 

 

 

 

 

(31,909

)

Riverside Assessments, LLC

 

03/10/2025

 

Professional Services

 

 

6.75

%

 

3M L+575

 

 

 

15,671,250

 

 

 

15,389,332

 

 

 

14,848,509

 

Sales Benchmark Index LLC

 

01/03/2025

 

Professional Services

 

 

7.75

%

 

3M L+600

 

 

 

13,934,045

 

 

 

13,689,392

 

 

 

13,599,628

 

Sales Benchmark Index LLC (7), (9)

 

07/07/2021

 

Professional Services

 

 

 

 

 

 

 

3,231,707

 

 

 

 

 

 

(77,561

)

Sales Benchmark Index LLC (Revolver) (7), (9)

 

01/03/2025

 

Professional Services

 

 

 

 

 

 

 

1,292,683

 

 

 

 

 

 

(31,024

)

Salient CRGT Inc.

 

02/28/2022

 

High Tech Industries

 

 

7.50

%

 

1M L+650

 

 

 

1,696,397

 

 

 

1,684,941

 

 

 

1,569,168

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

Electronic Equipment, Instruments, and Components

 

 

7.00

%

 

1M L+550

 

 

 

4,700,654

 

 

 

4,639,240

 

 

 

4,616,042

 

Sargent & Greenleaf Inc. (Revolver) (7), (9)

 

12/20/2024

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

1,056,367

 

 

 

 

 

 

(19,015

)

Schlesinger Global, Inc.

 

07/14/2025

 

Professional Services

 

 

7.00

%

 

1M L+600

 

 

 

13,478,823

 

 

 

13,351,351

 

 

 

12,501,608

 

Schlesinger Global, Inc. (Revolver)

 

07/14/2025

 

Professional Services

 

 

7.00

%

 

1M L+600

 

 

 

774,839

 

 

 

774,839

 

 

 

718,663

 

Schlesinger Global, Inc. (Revolver) (7), (9)

 

07/14/2025

 

Professional Services

 

 

 

 

 

 

 

 

1,095,462

 

 

 

 

 

 

(79,421

)

Signature Systems Holding Company

 

05/03/2024

 

Commercial Services & Supplies

 

 

7.50

%

 

1M L+650

 

 

 

12,350,000

 

 

 

12,205,240

 

 

 

11,948,625

 

Signature Systems Holding Company (Revolver)

 

05/03/2024

 

Commercial Services & Supplies

 

 

7.50

%

 

1M L+650

 

 

 

978,495

 

 

 

978,495

 

 

 

946,694

 

Signature Systems Holding Company (Revolver) (7), (9)

 

05/03/2024

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

768,817

 

 

 

 

 

 

(24,987

)

Smile Brands Inc. (7)

 

10/14/2024

 

Healthcare and Pharmaceuticals

 

 

4.90

%

 

1M L+450

 

 

 

3,395,269

 

 

 

3,395,269

 

 

 

3,293,411

 

Smile Brands Inc. (7), (9)

 

10/14/2024

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,076,088

 

 

 

 

 

 

(32,283

)

Smile Brands Inc. (Revolver) (7), (9)

 

10/14/2024

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,616,250

 

 

 

 

 

 

(99,027

)

Snak Club, LLC (Revolver) (7)

 

07/19/2021

 

Beverage, Food and Tobacco

 

 

6.50

%

 

3M L+550

 

 

 

100,000

 

 

 

100,000

 

 

 

99,000

 

Snak Club, LLC (Revolver) (7), (9)

 

07/19/2021

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

395,136

 

 

 

 

 

 

(3,951

)

Solutionreach, Inc.

 

01/17/2024

 

Healthcare Technology

 

 

6.75

%

 

3M L+575

 

 

 

6,316,818

 

 

 

6,227,596

 

 

 

6,247,334

 

Solutionreach, Inc. (Revolver)

 

01/17/2024

 

Healthcare Technology

 

 

6.75

%

 

3M L+575

 

 

 

1,248,750

 

 

 

1,248,750

 

 

 

1,235,014

 

Solutionreach, Inc. (Revolver) (7), (9)

 

01/17/2024

 

Healthcare Technology

 

 

 

 

 

 

 

416,250

 

 

 

 

 

 

(4,579

)

Spear Education, LLC

 

02/26/2025

 

Professional Services

 

 

6.00

%

 

3M L+500

 

 

 

15,049,375

 

 

 

14,913,852

 

 

 

14,673,140

 

Spear Education, LLC (7), (9)

 

02/26/2022

 

Professional Services

 

 

 

 

 

 

 

6,875,000

 

 

 

 

 

 

(171,875

)

Spectacle Gary Holdings, LLC

 

12/23/2025

 

Hotels, Restaurants and Leisure

 

 

11.00

%

 

1M L+900

 

 

 

8,427,027

 

 

 

8,196,440

 

 

 

8,174,216

 

Spectacle Gary Holdings, LLC (7), (9)

 

12/23/2025

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

972,973

 

 

 

 

 

(29,189

)

STV Group Incorporated

 

12/11/2026

 

Construction & Engineering

 

 

5.40

%

 

1M L+525

 

 

 

12,875,242

 

 

 

12,753,948

 

 

 

12,746,490

 

TeleGuam Holdings, LLC

 

11/20/2025

 

Telecommunications

 

 

5.50

%

 

1M L+450

 

 

 

6,584,034

 

 

 

6,519,682

 

 

 

6,386,513

 

Teneo Holdings LLC

 

07/18/2025

 

Diversified Financial Services

 

 

6.25

%

 

1M L+525

 

 

 

9,900,000

 

 

 

9,562,628

 

 

 

9,528,750

 

Tensar Corporation

 

07/09/2021

 

Construction and Building

 

 

5.75

%

 

3M L+475

 

 

 

22,439,744

 

 

 

22,394,704

 

 

 

22,439,744

 

The Infosoft Group, LLC

 

09/16/2024

 

Media: Broadcasting and Subscription

 

 

6.75

%

 

3M L+575

 

 

 

18,200,773

 

 

 

18,074,350

 

 

 

18,200,773

 

The Original Cakerie, Co. (5), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

6.00

%

 

2M L+500

 

 

 

7,547,565

 

 

 

7,496,711

 

 

 

7,472,089

 

The Original Cakerie Ltd. (5), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

5.50

%

 

2M L+450

 

 

 

5,376,152

 

 

 

5,352,309

 

 

 

5,322,390

 

The Original Cakerie Ltd. (Revolver) (5), (9), (10)

 

07/20/2022

 

Consumer Goods: Non-Durable

 

 

 

 

 

 

 

 

1,418,484

 

 

 

 

 

 

(14,185

)

TPC Canada Parent, Inc. and TPC US Parent, LLC (5), (10)

 

11/24/2025

 

Food Products

 

 

6.25

%

 

3M L+525

 

 

 

4,962,500

 

 

 

4,918,485

 

 

 

4,813,625

 

TVC Enterprises, LLC

 

01/18/2024

 

Professional Services

 

 

6.50

%

 

1M L+550

 

 

 

5,793,560

 

 

 

5,711,855

 

 

 

5,750,108

 

TVC Enterprises, LLC (Revolver) (7), (9)

 

01/18/2024

 

Professional Services

 

 

 

 

 

 

 

 

1,303,813

 

 

 

 

 

 

(9,779

)

TWS Acquisition Corporation

 

06/16/2025

 

Diversified Consumer Services

 

 

7.25

%

 

1M L+625

 

 

 

6,910,465

 

 

 

6,766,653

 

 

 

6,772,256

 

TWS Acquisition Corporation (Revolver)

 

06/16/2025

 

Diversified Consumer Services

 

 

7.25

%

 

1M L+625

 

 

 

1,819,285

 

 

 

1,819,285

 

 

 

1,782,899

 

TWS Acquisition Corporation (Revolver) (7), (9)

 

06/16/2025

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

808,571

 

 

 

 

 

 

(16,171

)

Tyto Athene, LLC

 

08/27/2024

 

Aerospace and Defense

 

 

6.25

%

 

1M L+525

 

 

 

17,491,232

 

 

 

17,294,288

 

 

 

17,435,261

 

Tyto Athene, LLC (Revolver) (7), (9)

 

08/27/2024

 

Aerospace and Defense

 

 

 

 

 

 

 

 

6,818,182

 

 

 

 

 

 

(21,818

)

UBEO, LLC

 

04/03/2024

 

Capital Equipment

 

 

5.50

%

 

3M L+450

 

 

 

13,967,402

 

 

 

13,889,735

 

 

 

13,129,357

 

UBEO, LLC (Revolver)

 

04/03/2024

 

Capital Equipment

 

 

5.50

%

 

3M L+450

 

 

 

2,933,333

 

 

 

2,933,333

 

 

 

2,717,939

 

Urology Management Associates, LLC

 

08/30/2024

 

Healthcare Providers and Services

 

 

6.00

%

 

3M L+500

 

 

 

4,962,500

 

 

 

4,888,916

 

 

 

4,813,625

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

13


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

SEPTEMBER 30, 2020

 

Issuer Name

 

Maturity

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare and Pharmaceuticals

 

 

9.00

%

 

1M L+800

 

 

 

2,964,844

 

 

$

2,964,844

 

 

$

2,935,195

 

Vision Purchaser Corporation

 

06/10/2025

 

 

Media

 

 

7.25

%

 

1M L+625

 

 

 

14,358,203

 

 

 

14,104,839

 

 

 

13,496,711

 

Whitney, Bradley & Brown, Inc.

 

10/18/2022

 

 

Aerospace and Defense

 

 

8.50

%

 

1M L+750

 

 

 

4,156,259

 

 

 

4,110,635

 

 

 

4,114,696

 

Wildcat Buyerco, Inc.

 

02/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

6.50

%

 

3M L+550

 

 

 

8,852,574

 

 

 

8,685,417

 

 

 

8,764,052

 

Wildcat Buyerco, Inc. (7), (9)

 

02/27/2022

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

2,491,176

 

 

 

 

 

 

3,114

 

Wildcat Buyerco, Inc. (Revolver) (7), (9)

 

02/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

533,824

 

 

 

 

 

 

(9,716

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

855,654,960

 

 

 

837,579,784

 

Second Lien Secured Debt—5.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holdings, LLC, Term Loan B

 

02/01/2026

 

 

Business Services

 

 

9.00

%

 

 

 

 

 

11,157,124

 

 

 

11,157,124

 

 

 

11,157,124

 

 

 

 

 

 

 

 

 

 

(PIK 9.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holdings, LLC, Term Loan C (7)

 

03/26/2021

 

 

Business Services

 

 

9.00

%

 

 

 

 

 

22,312

 

 

 

22,312

 

 

 

22,312

 

 

 

 

 

 

 

 

 

 

(PIK 9.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

9.25

%

 

3M L+825

 

 

 

9,738,580

 

 

 

9,654,555

 

 

 

9,738,580

 

MailSouth, Inc.

 

10/23/2024

 

 

Media: Advertising, Printing and Publishing

 

 

0.00

%

(6)

 

 

 

 

2,871,025

 

 

 

2,827,178

 

 

 

1,464,223

 

PT Network, LLC (7)

 

11/30/2024

 

 

Healthcare and Pharmaceuticals

 

 

11.00

%

 

3M L+1,000

 

 

 

2,099,171

 

 

 

2,083,772

 

 

 

2,099,171

 

 

 

 

 

 

 

 

 

 

(PIK 12.30

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,744,941

 

 

 

24,481,410

 

Preferred Equity— 1.3% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,458

 

 

 

21,870

 

 

 

 

(PT Network, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condor Holdings Limited (5), (7), (10)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

88,000

 

 

 

10,173

 

 

 

11,274

 

Condor Top Holdco Limited (5), (7), (10)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

88,000

 

 

 

77,827

 

 

 

207,079

 

DBI Holding, LLC, Series A-1 (8)

 

 

 

 

Business Services

 

 

14.00

%

 

 

 

 

 

7,041

 

 

 

7,040,844

 

 

 

2,522,555

 

MeritDirect Holdings, LP (7), (8)

 

 

 

 

Media

 

 

 

 

 

 

 

 

960

 

 

 

960,000

 

 

 

635,021

 

NXOF Holdings, Inc. (NextiraOne Federal, LLC) (7)

 

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

490

 

 

 

490,000

 

 

 

591,195

 

PT Network Intermediate Holdings, LLC (7)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

11.00

%

 

3M L+1,000

 

 

 

33

 

 

 

429,000

 

 

 

488,631

 

Signature CR Intermediate Holdco, Inc. (7)

 

 

 

 

Commercial Services & Supplies

 

 

12.00

%

 

 

 

 

 

1,167

 

 

 

1,166,993

 

 

 

1,221,750

 

TPC Holding Company, LP (5), (7), (10)

 

 

 

 

Food Products

 

 

 

 

 

 

 

 

409

 

 

 

409,011

 

 

 

443,141

 

UniTek Global Services, Inc. -

 

 

 

 

Telecommunications

 

 

20.00

%

 

 

 

 

 

343,861

 

 

 

343,861

 

 

 

 

Super Senior Preferred Equity (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UniTek Global Services, Inc. - Senior Preferred Equity (7)

 

 

 

 

Telecommunications

 

 

19.00

%

 

 

 

 

 

448,851

 

 

 

448,851

 

 

 

 

UniTek Global Services, Inc. (7)

 

 

 

 

Telecommunications

 

 

13.50

%

 

 

 

 

 

1,047,317

 

 

 

670,283

 

 

 

 

Total Preferred Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,068,713

 

 

 

6,120,646

 

Common Equity/Warrants— 8.9% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affinion Group Holdings, Inc. (Warrants)(7)

 

 

 

 

Consumer Goods: Durable

 

 

 

 

 

 

 

 

8,893

 

 

 

244,998

 

 

 

 

AG Investco LP (7), (8)

 

 

 

 

Software

 

 

 

 

 

 

 

 

805,164

 

 

 

805,164

 

 

 

1,002,599

 

AG Investco LP (7), (8), (9)

 

 

 

 

Software

 

 

 

 

 

 

 

 

194,836

 

 

 

 

 

 

 

Altamira Intermediate Company II, Inc. (7)

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

1,437,500

 

 

 

1,437,500

 

 

 

933,198

 

By Light Investco LP (7), (8)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

21,908

 

 

 

2,190,771

 

 

 

7,599,349

 

By Light Investco LP (7), (8),  (9)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

5,592

 

 

 

 

 

 

 

CI (Allied) Investment Holdings, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

120,962

 

 

 

1,243,217

 

 

 

 

(Allied America, Inc.) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

13,333

 

 

 

200,000

 

 

 

 

(PT Network, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (Summit) Investment Holdings, LLC

 

 

 

 

Construction and Building

 

 

 

 

 

 

 

 

58,846

 

 

 

629,620

 

 

 

788,839

 

(SFP Holding, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DBI Holding, LLC, Series B (8)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

1,489,508

 

 

 

330,791

 

 

 

 

DecoPac Holdings Inc. (7)

 

 

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

1,633

 

 

 

1,632,744

 

 

 

2,401,324

 

ECM Investors, LLC (7), (8)

 

 

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

 

295,982

 

 

 

295,982

 

 

 

449,276

 

eCommission Holding Corporation (7), (10)

 

 

 

 

 

Banking, Finance, Insurance & Real Estate

 

 

 

 

 

 

 

 

20

 

 

 

251,156

 

 

 

257,421

 

Faraday Holdings, LLC (7)

 

 

 

 

Construction and Building

 

 

 

 

 

 

 

 

1,141

 

 

 

58,044

 

 

 

375,581

 

Gauge InfosoftCoInvest, LLC

 

 

 

 

Media: Broadcasting and Subscription

 

 

 

 

 

 

 

 

500

 

 

 

143,663

 

 

 

775,000

 

(The Infosoft Group, LLC) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gauge Lash Coinvest LLC (7)

 

 

 

 

Personal Products

 

 

 

 

 

 

 

 

1,485,953

 

 

 

1,760,670

 

 

 

2,615,277

 

Gauge Schlesinger Coinvest LLC (7)

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

437

 

 

 

437,371

 

 

 

425,883

 

Gauge TVC Coinvest, LLC (TVC Enterprises, LLC) (7)

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

391,144

 

 

 

391,144

 

 

 

482,277

 

GCOM InvestCo LP (7), (8)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

1,722,632

 

 

 

1,596,634

 

 

 

3,010,719

 

GCOM InvestCo LP (7), (8), (9)

 

 

 

 

High Tech Industries

 

 

 

 

 

 

 

 

277,368

 

 

 

 

 

 

 

Go Dawgs Capital III, LP

 

 

 

 

Building Products

 

 

 

 

 

 

 

 

324,675

 

 

 

324,675

 

 

 

324,675

 

(American Insulated Glass, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IIN Group Holdings, LLC

 

 

 

 

Consumer Services

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000,000

 

 

 

1,054,709

 

(Integrative Nutrition, LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITC Rumba, LLC (Cano Health, LLC)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

46,763

 

 

 

766,149

 

 

 

2,335,369

 

JWC/UMA Holdings, L.P. (7)

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000,000

 

 

 

1,389,498

 

JWC-WE Holdings, L.P.

 

 

 

 

Wholesale

 

 

 

 

 

 

 

 

1,381,741

 

 

 

1,381,741

 

 

 

8,704,966

 

(Walker Edison Furniture Company LLC) (7), (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kentucky Racing Holdco, LLC (Warrants) (7), (8)

 

 

 

 

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

 

 

87,345

 

 

 

 

 

 

226,368

 

Lightspeed Investment Holdco LLC (7)

 

 

 

 

Healthcare Technology

 

 

 

 

 

 

 

 

585,587

 

 

 

585,587

 

 

 

672,313

 

MeritDirect Holdings, LP (7), (8)

 

 

 

 

Media

 

 

 

 

 

 

 

 

960

 

 

 

 

 

 

 

NXOF Holdings, Inc. (NextiraOne Federal, LLC) (7)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

10,000

 

 

 

10,000

 

 

 

24,916

 

OceanSound Discovery Equity, LP (Holdco Sands Intermediate, LLC) (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

173,638

 

 

 

1,736,381

 

 

 

1,744,780

 

PT Network Intermediate Holdings, LLC (7)

 

 

 

 

 

Healthcare and Pharmaceuticals

 

 

 

 

 

 

 

 

 

 

25

 

 

 

286,000

 

 

 

1,067,566

 

QuantiTech InvestCo LP (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

70,000

 

 

 

70,000

 

 

 

103,995

 

QuantiTech InvestCo LP (7), (8), (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

96,667

 

 

 

 

 

 

 

SBI Holdings Investments LLC (Sales Benchmark Index LLC) (7), (8)

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

64,634

 

 

 

646,341

 

 

 

458,093

 

Signature CR Intermediate Holdco, Inc. (7)

 

 

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

61

 

 

 

61,421

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

14


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

SEPTEMBER 30, 2020

 

Issuer Name

 

Maturity

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above

Index (1)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (2)

 

SSC Dominion Holdings, LLC

 

 

 

 

Capital Equipment

 

 

 

 

 

 

 

 

500

 

 

$

500,000

 

 

$

583,200

 

Class A (US Dominion, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Capital Equipment

 

 

 

 

 

 

 

 

500

 

 

 

 

 

 

1,585,388

 

Class B (US Dominion, Inc.) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TPC Holding Company, LP (5), (7), (10)

 

 

 

 

Food Products

 

 

 

 

 

 

 

 

21,527

 

 

 

21,527

 

 

 

105,482

 

UniTek Global Services, Inc. (7)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

213,739

 

 

 

 

 

 

 

UniTek Global Services, Inc. (Warrants) (7)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

23,889

 

 

 

 

 

 

 

WBB Equity, LLC (7), (8)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

142,857

 

 

 

142,857

 

 

 

625,714

 

Wildcat Parent, LP (Wildcat Buyerco, Inc.) (7), (8)

 

 

 

 

Electronic Equipment, Instruments, and Components

 

 

 

 

 

 

 

 

2,240

 

 

 

223,995

 

 

 

246,694

 

Total Common Equity/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,406,143

 

 

 

42,370,469

 

Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

915,874,757

 

 

 

910,552,309

 

Investments in Non-Controlled, Affiliated Portfolio Companies—2.3% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holdings, LLC - Super Senior Term Loan (7)

 

06/01/2022

 

 

Beverage, Food and Tobacco

 

 

12.00

%

 

 

 

 

 

1,366,489

 

 

 

1,366,489

 

 

 

1,366,489

 

Country Fresh Holdings, LLC - Super Senior Term Loan (7), (9)

 

06/01/2022

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

452,123

 

 

 

 

 

 

 

Country Fresh Holdings, LLC (7)

 

05/01/2023

 

 

Beverage, Food and Tobacco

 

 

6.00

%

 

3M L+500

 

 

 

1,544,161

 

 

 

1,515,199

 

 

 

1,544,161

 

Country Fresh Holdings, LLC (Revolver) (7)

 

05/01/2023

 

 

Beverage, Food and Tobacco

 

 

6.00

%

 

3M L+500

 

 

 

2,746,564

 

 

 

2,746,564

 

 

 

2,746,564

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,628,252

 

 

 

5,657,214

 

Second Lien Secured Debt—1.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holdings, LLC (7)

 

04/29/2024

 

 

Beverage, Food and Tobacco

 

 

9.50

%

 

1M L+850

 

 

 

5,882,579

 

 

 

5,882,579

 

 

 

5,429,620

 

 

 

 

 

 

 

 

 

 

(PIK 9.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,882,579

 

 

 

5,429,620

 

Common Equity/Warrants—0.0% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Fresh Holding Company Inc. (7)

 

 

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

8,034

 

 

 

10,453,350

 

 

 

 

Total Common Equity/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,453,350

 

 

 

 

Total Investments in Non-Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,964,181

 

 

 

11,086,834

 

Investments in Controlled, Affiliated Portfolio Companies—34.6% (3), (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—26.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PennantPark Senior Secured Loan Fund I LLC (7), (9), (10)

 

05/06/2024

 

 

Financial Services

 

 

8.22

%

 

3M L+800

 

 

 

125,378,750

 

 

 

125,378,750

 

 

 

125,378,750

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125,378,750

 

 

 

125,378,750

 

Equity Interests—8.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PennantPark Senior Secured Loan Fund I LLC (7), (9), (10)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

53,734

 

 

 

53,733,750

 

 

 

39,910,574

 

Total Equity Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53,733,750

 

 

 

39,910,574

 

Total Investments in Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

179,112,500

 

 

 

165,289,324

 

Total Investments—227.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,116,951,438

 

 

 

1,086,928,467

 

Cash and Cash Equivalents—12.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,433,416

 

 

 

8,433,416

 

BNY Mellon Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49,101,005

 

 

 

49,078,512

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,534,421

 

 

 

57,511,928

 

Total Investments and Cash Equivalents—239.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,174,485,859

 

 

$

1,144,440,395

 

Liabilities in Excess of Other Assets—(139.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(667,170,003

)

Net Assets—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

477,270,392

 

 

(1)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable LIBOR or “L” or Prime rate, or “P.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day LIBOR rate (1M L, 2M L, 3M L, or 6M L, respectively), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes payment-in-kind, or PIK, interest and other fee rates, if any.

(2)

Valued based on our accounting policy (See Note 2). The value of all securities was determined using significant unobservable inputs (See Note 5).

(3)

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.

(4)

The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities.

(5)

Non-U.S. company or principal place of business outside the United States.

(6)

Non-income producing securities.

(7)

The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2031 Asset-Backed Debt (See Note 10) and held through PennantPark CLO I, Ltd.

(8)

Investment is held through our Taxable Subsidiary (See Note 1).

(9)

Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(10)

The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2020, qualifying assets represent 81% of our total assets and non-qualifying assets represent 19% of our total assets.

(11)

Par amount is denominated in Canadian Dollars (C$) as denoted.


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

15


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2021

(Unaudited)

 

1. ORGANIZATION

 

PennantPark Floating Rate Capital Ltd. was organized as a Maryland corporation in October 2010. We are a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act.

 

Our investment objectives are to generate both current income and capital appreciation while seeking to preserve capital. We seek to achieve our investment objectives by investing primarily in loans bearing variable rates of interest, or Floating Rate Loans, and other investments made to U.S. middle-market private companies whose debt is rated below investment grade. Interest on Floating Rate Loans is determined periodically, on the basis of a floating base lending rate such as LIBOR, with or without a floor, plus a fixed spread. Under normal market conditions, we generally expect that at least 80% of the value of our net assets plus any borrowings for investment purposes, or our Managed Assets, will be invested in Floating Rate Loans and other investments bearing a variable rate of interest, which may include, from time to time, variable rate derivative instruments. We generally expect that first lien secured debt will represent at least 65% of our overall portfolio. We generally expect to invest up to 35% of our overall portfolio opportunistically in other types of investments, including second lien secured debt, subordinated debt, and, to a lesser extent, equity investments.

 

We have entered into an investment management agreement, or the Investment Management Agreement, with the Investment Adviser, an external adviser that manages our day-to-day operations. We have also entered into an administration agreement, or the Administration Agreement, with the Administrator, which provides the administrative services necessary for us to operate.

 

Funding I, our wholly owned subsidiary and a special purpose entity, was organized in Delaware as a limited liability company in May 2011. We formed Funding I in order to establish the Credit Facility. The Investment Adviser serves as the collateral manager to Funding I and has irrevocably directed that any management fee owed with respect to such services is to be paid to us so long as the Investment Adviser remains the collateral manager. This arrangement does not increase our consolidated management fee. The Credit Facility allows Funding I to borrow up to $400 million (reduced from $520 million on January 19, 2021) at LIBOR (or an alternative risk-free floating interest rate index) plus 200 basis points during the revolving period. The Credit Facility is secured by all of the assets held by Funding I. See Note 10.

 

We have formed and expect to continue to form certain taxable subsidiaries, including the Taxable Subsidiary, which are subject to tax as corporations. These taxable subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

 

In May 2017, we and a subsidiary of Kemper Corporation (NYSE: KMPR), Trinity Universal Insurance Company, or Kemper, formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. See Note 4.

 

In November 2017, we issued $138.6 million of our 2023 Notes. The principal on the 2023 Notes is payable in four annual installments as follows: 15% of the original principal amount on December 15, 2020, 15% of the original principal amount on December 15, 2021, 15% of the original principal amount on December 15, 2022 and 55% on December 15, 2023. The 2023 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2023 Notes are listed on the Tel Aviv Stock Exchange, or the TASE. In connection with this offering, we have dual listed our common stock on the TASE.

 

In September 2019, the Securitization Issuers completed the Debt Securitization. The 2031 Asset-Backed Debt is secured by a diversified portfolio of the Securitization Issuer consisting primarily of middle market loans and participation interests in middle market loans. The 2031 Asset-Backed Debt is scheduled to mature on October 15, 2031. On the closing date of the Debt Securitization, in consideration of our transfer to the Securitization Issuer of the initial closing date loan portfolio, which included loans distributed to us by certain of our wholly owned subsidiaries, the Securitization Issuer transferred to us 100% of the Preferred Shares of the Securitization Issuer, 100% of the Class D Secured Deferrable Floating Rate Notes issued by the Securitization Issuer, and a portion of the net cash proceeds received from the sale of the 2031 Asset-Backed Debt. See Note 10.

 

In March 2021, we issued $100.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on April 1 and October 1 of each year, at a rate of 4.25% per year, commencing October 1, 2021. The 2026 Notes mature on April 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

 

We are operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and, therefore, is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies, the global outbreak of the novel coronavirus (“COVID-19”), and any other parameters used in determining these estimates and assumptions could cause actual results to differ from these estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Codification, as amended, or ASC, serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued.

 

Our Consolidated Financial Statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, we have provided a Consolidated Statement of Changes in Net Assets in lieu of a Consolidated Statement of Changes in Stockholders’ Equity.

 

Our significant accounting policies consistently applied are as follows:

 

16


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

MARCH 31, 2021

(Unaudited)

 

(a) Investment Valuations

 

We expect that there may not be readily available market values for many of the investments, which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.

 

Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:

 

 

(1)

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment;

 

 

(2)

Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;

 

 

(3)

Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;

 

 

(4)

The audit committee of our board of directors reviews the preliminary valuations of the Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and

 

 

(5)

Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

 

Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If our board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

 

(b) Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses

 

Security transactions are recorded on a trade-date basis. We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects, as applicable, the change in the fair values of our portfolio investments, the Credit Facility and the 2023 Notes during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

 

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, or OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned. Litigation settlements are accounted for in accordance with the gain contingency provisions of ASC Subtopic 450-30, Gain Contingencies, or ASC 450-30.

 

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. As of March 31, 2021, we had two portfolio companies on non-accrual, representing 3.1% and 2.3% of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2020, we had three portfolio companies on non-accrual, representing 2.1% and 1.8% of our overall portfolio on a cost and fair value basis, respectively.

 

(c) Income Taxes

 

We have complied with the requirements of Subchapter M of the Code and have qualified to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S. federal income tax purposes, we typically do not incur material U.S. federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of a U.S. federal excise tax, or we may incur taxes through our taxable subsidiaries, including the Taxable Subsidiary. For both the three and six months ended March 31, 2021 and 2020, we recorded a provision for taxes of $0.1 million and $0.2 million, respectively, pertaining to U.S. federal excise tax.

 

17


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

MARCH 31, 2021

(Unaudited)

 

We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both U.S. federal and state income tax returns, the Company’s major tax jurisdiction is federal.

 

Because U.S. federal income tax regulations differ from GAAP, distributions characterized in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

 

(d) Distributions and Capital Transactions

 

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by our board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains, but may also include certain tax-qualified dividends and/or a return of capital.

 

Capital transactions in connection with offerings of our common stock are recorded when issued and offering costs are charged as a reduction of capital upon issuance of our common stock.

 

(e) Foreign Currency Translation

 

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

 

 

1.

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and

 

 

2.

Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

 

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

 

Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

 

(f) Consolidation

 

As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, we will generally not consolidate our investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we have consolidated the results of our taxable subsidiaries, including the Taxable Subsidiary, Funding I and the Securitization Issuer in our Consolidated Financial Statements. We do not consolidate our investment in PSSL. See further description of our investment in PSSL in Note 4.

 

(g) Asset Transfers and Servicing

 

Asset transfers that do not meet ASC Topic 860, Transfers and Servicing, requirements for sale accounting treatment are reflected in the Consolidated Statements of Assets and Liabilities and the Consolidated Schedules of Investments as investments. The creditors of Funding I have received a security interest in all of its assets and such assets are not intended to be available to the creditors of PennantPark Floating Rate Capital, Ltd. or any of its affiliates.

 

3. AGREEMENTS AND RELATED PARTY TRANSACTIONS

 

The Investment Management Agreement with the Investment Adviser was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in February 2021. Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of and provides investment advisory services to us. The Investment Adviser serves as the collateral manager to Funding I and has irrevocably directed that any management fee owed with respect to such services is to be paid to the Company so long as the Investment Adviser remains the collateral manager. This arrangement does not increase our consolidated management fee. For providing these services, the Investment Adviser receives a fee from us consisting of two components— a base management fee and an incentive fee.

 

The base management fee is calculated at an annual rate of 1.00% of our “average adjusted gross assets,” which equals our gross assets (exclusive of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For the three and six months ended March 31, 2021, the Investment Adviser earned a base management fee of $2.6 million and $5.3 million, respectively, from us. For the three and six months ended March 31, 2020, the Investment Adviser earned a base management fee of $2.9 million and $5.8 million, respectively, from us.

 

The incentive fee has two parts, as follows:

 

One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio

18


PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

MARCH 31, 2021

(Unaudited)

companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7.00% annualized). We pay the Investment Adviser an incentive fee with respect to our Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75%, (2) 50% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.9167% in any calendar quarter (11.67% annualized) (we refer to this portion of our Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.9167%) as the “catch-up,” which is meant to provide our Investment Adviser with 20% of our Pre-Incentive Fee Net Investment Income, as if a hurdle did not apply, if this net investment income exceeds 2.9167% in any calendar quarter), and (3) 20% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.9167% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable. For the three and six months ended March 31, 2021, the Investment Adviser earned $1.3 million and $3.1 million, respectively, in incentive fees on net investment income from us. For the three and six months ended March 31, 2020, the Investment Adviser earned $2.9 million and $5.3 million, respectively, in incentive fees on net investment income from us.

 

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 20% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For both the three and six months ended March 31, 2021 and 2020, the Investment Adviser did not accrue an incentive fee on capital gains, as calculated under the Investment Management Agreement (as described above).

 

Under GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 20% of such amount, less the aggregate amount of actual capital gains related to incentive fees paid in all prior years. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. The incentive fee accrued for, but not payable, under GAAP on our unrealized and realized capital gains for both the three and six months ended March 31, 2021 and 2020 was zero, respectively.

 

The Administration Agreement with the Administrator was reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in February 2021. Under the Administration Agreement, the Administrator provides administrative services and office facilities to us. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs. The Administrator also offers, on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the three and six months ended March 31, 2021, we reimbursed the Investment Adviser approximately $0.5 million and $0.7 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for services described above. For the three and six months ended March 31, 2020, we reimbursed the Investment Adviser approximately $0.7 million and $1.0 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for services described above.

 

There were no transactions subject to Rule 17a-7 under the 1940 Act during the three and six months ended March 31, 2021. During both the three and six months ended March 31, 2020, the Company sold $15.0 million in total investments to an affiliated fund managed by our Investment Adviser in accordance with, and pursuant to procedures adopted under, Rule 17a-7 of the 1940 Act. Realized losses on those sales for both periods amounted to $1.0 million.

 

For both the three and six months ended March 31, 2021, we sold $125.2 million in investments to PSSL at fair value and recognized $0.3 million of net realized gains. For the three and six months ended March 31, 2020, we sold $17.8 million and $86.7 million in investments, respectively, to PSSL at fair value and recognized net realized gains of less than $0.1 million and $0.5 million, respectively.

 

4. INVESTMENTS

 

Purchases of investments, including PIK interest, for the three and six months ended March 31, 2021 totaled $160.8 million and $229.3 million, respectively. For the same periods in the prior year, purchases of investments, including PIK interest, totaled $167.8 million and $408.1 million, respectively. Sales and repayments of investments for the three and six months ended March 31, 2021 totaled $172.1 million and $281.7 million, respectively. For the same periods in the prior year, sales and repayments of investments totaled $99.4 million and $243.1 million, respectively.

 

19


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

MARCH 31, 2021

(Unaudited)

Investments and cash and cash equivalents consisted of the following:

 

 

 

March 31, 2021

 

 

September 30, 2020

 

Investment Classification

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

First lien

 

$

797,284,918

 

 

$

789,486,486

 

 

$

861,283,212

 

 

$

843,236,998

 

First lien in PSSL

 

 

126,481,250

 

 

 

126,481,250

 

 

 

125,378,750

 

 

 

125,378,750

 

Second lien

 

 

36,102,995

 

 

 

30,167,743

 

 

 

31,627,520

 

 

 

29,911,030

 

Equity

 

 

50,378,252

 

 

 

77,496,325

 

 

 

44,928,206

 

 

 

48,491,115

 

Equity in PSSL

 

 

54,206,250

 

 

 

45,505,337

 

 

 

53,733,750

 

 

 

39,910,574

 

Total investments

 

$

1,064,453,665

 

 

$

1,069,137,141

 

 

$

1,116,951,438

 

 

$

1,086,928,467

 

Cash and cash equivalents

 

 

66,572,341

 

 

 

66,572,811

 

 

 

57,534,421

 

 

 

57,511,928

 

Total investments and cash and cash equivalents

 

$

1,131,026,006

 

 

$

1,135,709,952

 

 

$

1,174,485,859

 

 

$

1,144,440,395

 

 

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries:

 

Industry Classification

 

March 31, 2021 (1)

 

 

September 30, 2020 (1)

 

High Tech Industries

 

 

7

%

 

 

6

%

Professional Services

 

 

7

 

 

 

8

 

IT Services

 

 

6

 

 

 

1

 

Wholesale

 

 

6

 

 

 

2

 

Capital Equipment

 

 

5

 

 

 

5

 

Commercial Services & Supplies

 

 

5

 

 

 

2

 

Media

 

 

5

 

 

 

5

 

Aerospace and Defense

 

 

4

 

 

 

5

 

Business Services

 

 

4

 

 

 

5

 

Diversified Financial Services

 

 

4

 

 

 

1

 

Media: Diversified and Production

 

 

4

 

 

 

3

 

Beverage, Food and Tobacco

 

 

3

 

 

 

3

 

Consumer Services

 

 

3

 

 

 

2

 

Healthcare Technology

 

 

3

 

 

 

4

 

Hotels, Restaurants and Leisure

 

 

3

 

 

 

2

 

Media: Broadcasting and Subscription

 

 

3

 

 

 

2

 

Banking, Finance, Insurance & Real Estate

 

 

2

 

 

 

2

 

Diversified Consumer Services

 

 

2

 

 

 

1

 

Electronic Equipment, Instruments, and Components

 

 

2

 

 

 

3

 

Healthcare and Pharmaceuticals

 

 

2

 

 

 

4

 

Healthcare Providers and Services

 

 

2

 

 

 

1

 

Insurance

 

 

2

 

 

 

2

 

Media: Advertising, Printing and Publishing

 

 

2

 

 

 

2

 

Telecommunications

 

 

2

 

 

 

2

 

Building Products

 

 

1

 

 

 

2

 

Chemicals, Plastics and Rubber

 

 

1

 

 

 

2

 

Construction & Engineering

 

 

1

 

 

 

1

 

Construction and Building

 

 

1

 

 

 

4

 

Consumer Goods: Durable

 

 

1

 

 

 

3

 

Consumer Goods: Non-Durable

 

 

1

 

 

 

2

 

Healthcare Equipment and Supplies

 

 

1

 

 

 

1

 

Hotel, Gaming and Leisure

 

 

1

 

 

 

4

 

Leisure Products

 

 

1

 

 

 

1

 

Personal Products

 

 

1

 

 

 

1

 

Transportation: Consumer

 

 

1

 

 

 

1

 

All Other

 

 

1

 

 

 

5

 

Total

 

 

100

%

 

 

100

%

 

(1)

Excludes investments in PSSL.

 

PennantPark Senior Secured Loan Fund I LLC

 

In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. As of March 31, 2021 and September 30, 2020, PSSL had total assets of $532.2 million and $406.4 million, respectively. As of March 31, 2021, PSSL had $36.0 million of unused borrowing capacity under the PSSL Credit Facility (as defined point below), subject to leverage and borrowing base restrictions, and cash and cash equivalents of $43.7 million. As of September 30, 2020, PSSL had $107.5 million of unused borrowing capacity under the PSSL Credit Facility, subject to leverage and borrowing base restrictions, and cash and cash equivalents of $11.1 million. As of March 31, 2021 and September 30, 2020, we and Kemper had remaining commitments to fund first lien secured debt and equity interests in PSSL in an aggregate amount of $23.5 million and $25.3 million, respectively. PSSL invests in portfolio companies in the same industries in which we may directly invest.

 

We provide capital to PSSL in the form of first lien secured debt and equity interests. As of March 31, 2021 and September 30, 2020, we and Kemper owned 87.5% and 12.5%, respectively, of each of the outstanding first lien secured debt and equity interests. As of the same dates, our investment in PSSL consisted of first lien secured debt of $126.5 million (additional $14.4 million unfunded) and $125.4 million (additional $15.5 million unfunded), respectively, and equity interests of $54.2 million (additional $6.2 million unfunded) and $53.7 million (additional $6.6 million unfunded), respectively.

20


 

We and Kemper each appointed two members to PSSL’s four-person board of directors and investment committee. All material decisions with respect to PSSL, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors or investment committee. Quorum is defined as (i) the presence of two members of the board of directors or investment committee, provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors or investment committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; or (iii) the presence of four members of the board of directors or investment committee, provided that two individuals are present that were elected, designated or appointed by each member.

 

PSSL has entered into a $125.0 million senior secured revolving credit facility which bears interest at LIBOR (or an alternative risk-free floating interest rate index) plus 225 basis points, or the PSSL Credit Facility, with Ally Bank through a wholly-owned subsidiary, subject to leverage and borrowing base restrictions.  

 

In January 2021, PSSL completed a $300.7 million debt securitization in the form of a collateralized loan obligation, or the “2032 Asset-Backed Debt”. The 2032 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2032 Asset-Backed Debt is scheduled to mature in January 2032. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO II, Ltd. of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO II, Ltd. transferred to PSSL 100% of the Preferred Shares of PennantPark CLO II, Ltd. and 100% of the Class E Notes issued by PennantPark CLO II, Ltd.

 

Below is a summary of PSSL’s portfolio at fair value:

 

 

 

March 31, 2021

 

 

September 30, 2020

 

Total investments

 

$

485,117,492

 

 

$

392,986,090

 

Weighted average yield on debt investments

 

 

7.2

%

 

 

6.8

%

Number of portfolio companies in PSSL

 

 

64

 

 

 

45

 

Largest portfolio company investment

 

$

21,747,486

 

 

$

20,614,860

 

Total of five largest portfolio company investments

 

$

88,027,443

 

 

$

93,320,993

 


21


 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

MARCH 31, 2021

(Unaudited)

 

Below is a listing of PSSL’s individual investments as of March 31, 2021:

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (1)

 

Par

 

 

Cost

 

 

Fair Value (2)

 

First Lien Secured Debt—907.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Altamira Technologies, LLC

 

07/24/2025

 

High Tech Industries

 

 

8.00

%

 

3M L+700

 

 

5,675,031

 

 

$

5,506,409

 

 

$

5,462,217

 

American Auto Auction Group, LLC

 

01/02/2024

 

Transportation: Consumer

 

 

5.75

%

 

3M L+475

 

 

7,093,665

 

 

 

6,946,622

 

 

 

6,880,855

 

American Insulated Glass, LLC

 

12/21/2023

 

Building Products

 

 

6.50

%

 

3M L+550

 

 

5,750,000

 

 

 

5,669,071

 

 

 

5,692,500

 

Apex Service Partners, LLC

 

07/31/2025

 

Diversified Consumer Services

 

 

6.25

%

 

1M L+525

 

 

1,028,431

 

 

 

1,028,431

 

 

 

1,028,431

 

Apex Service Partners, LLC Term Loan B

 

07/31/2025

 

Diversified Consumer Services

 

 

6.50

%

 

1M L+550

 

 

2,232,458

 

 

 

2,232,458

 

 

 

2,232,458

 

Applied Technical Services, LLC

 

12/29/2026

 

Commercial Services & Supplies

 

 

6.75

%

 

3M L+575

 

 

4,534,091

 

 

 

4,435,119

 

 

 

4,466,080

 

BEI Precision Systems & Space Company, Inc.

 

04/28/2023

 

Aerospace and Defense

 

 

6.50

%

 

3M L+550

 

 

5,116,838

 

 

 

5,093,710

 

 

 

5,116,838

 

By Light Professional IT Services, LLC

 

05/16/2022

 

High Tech Industries

 

 

7.25

%

 

1M L+625

 

 

13,225,375

 

 

 

13,205,260

 

 

 

13,225,375

 

Cadence Aerospace, LLC

 

11/14/2023

 

Aerospace and Defense

 

 

9.50

%

 

3M L+850

 

 

12,117,407

 

 

 

12,059,250

 

 

 

11,741,768

 

 

 

 

 

 

 

 

(PIK 9.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cardenas Markets LLC

 

11/29/2023

 

Beverage, Food and Tobacco

 

 

6.75

%