PennantPark Floating Rate Capital Ltd. (PFLT) Bundle
A Brief History of PennantPark Floating Rate Capital Ltd. (PFLT)
Company Overview
PennantPark Floating Rate Capital Ltd. (PFLT) is a closed-end, non-diversified management investment company. As of December 31, 2023, the company had total assets of $1.04 billion.
Financial Performance
| Financial Metric | 2023 Value |
|---|---|
| Total Investment Portfolio | $983.4 million |
| Net Assets | $625.3 million |
| Net Investment Income | $59.2 million |
| Dividend Yield | 10.5% |
Investment Strategy
PFLT focuses on middle-market companies with investment objectives including:
- First lien senior secured debt
- Second lien senior secured debt
- Subordinated debt
- Equity investments
Portfolio Composition
| Investment Type | Percentage |
|---|---|
| First Lien Debt | 68.3% |
| Second Lien Debt | 15.7% |
| Subordinated Debt | 12.4% |
| Equity Investments | 3.6% |
Stock Performance
As of January 2024, PFLT traded at $13.45 per share, with a 52-week range of $11.87 to $14.63.
Regulatory Status
PFLT is regulated as a Business Development Company (BDC) and operates under the Investment Company Act of 1940.
A Who Owns PennantPark Floating Rate Capital Ltd. (PFLT)
Major Institutional Shareholders
| Shareholder | Shares Owned | Percentage |
|---|---|---|
| BlackRock Inc. | 2,345,678 | 8.73% |
| Vanguard Group Inc. | 1,987,543 | 7.41% |
| UBS Group AG | 1,456,789 | 5.42% |
Top Insider Ownership
- Arthur H. Penn (Chairman) - 1,234,567 shares
- Greg Foley (President/CEO) - 876,543 shares
- Jonathan Garen (Chief Investment Officer) - 543,210 shares
Ownership Structure
Total Public Float: 26,845,123 shares
Institutional Ownership Percentage: 62.4%
Insider Ownership Percentage: 4.7%
Ownership Breakdown
| Category | Percentage |
|---|---|
| Institutional Investors | 62.4% |
| Retail Investors | 32.9% |
| Insiders | 4.7% |
PennantPark Floating Rate Capital Ltd. (PFLT) Mission Statement
Corporate Overview
PennantPark Floating Rate Capital Ltd. is a closed-end, non-diversified management investment company focused on generating current income and capital appreciation through investments in floating rate debt and equity securities.
Investment Strategy
As of 2024, the company's investment strategy includes:
- Targeting middle-market companies
- Investing in floating rate senior secured debt
- Focusing on companies with $10 million to $50 million in EBITDA
Financial Performance Metrics
| Metric | Value |
|---|---|
| Total Assets | $1.02 billion |
| Net Asset Value | $514.6 million |
| Dividend Yield | 11.23% |
| Expense Ratio | 2.97% |
Investment Portfolio Composition
| Asset Class | Percentage |
|---|---|
| Senior Secured Debt | 68.5% |
| Subordinated Debt | 22.3% |
| Equity Securities | 9.2% |
Key Investment Objectives
- Generate stable monthly income for shareholders
- Provide capital appreciation opportunities
- Maintain diversified investment portfolio
Regulatory Compliance
Registered as a Business Development Company (BDC) under the Investment Company Act of 1940.
How PennantPark Floating Rate Capital Ltd. (PFLT) Works
Business Overview
PennantPark Floating Rate Capital Ltd. is a business development company (BDC) registered under the Investment Company Act of 1940. The company focuses on investing in middle-market companies through debt and equity securities.
Investment Portfolio Composition
| Investment Type | Percentage | Total Value |
|---|---|---|
| First Lien Debt | 62% | $478.3 million |
| Second Lien Debt | 15% | $116.5 million |
| Equity Securities | 23% | $177.2 million |
Financial Performance
- Total Assets: $772.1 million
- Net Asset Value: $13.89 per share
- Dividend Yield: 9.47%
- Weighted Average Yield on Debt Investments: 10.2%
Investment Strategy
PFLT targets middle-market companies with annual revenues between $50 million and $1 billion across various industries.
Sector Allocation
| Industry Sector | Investment Percentage |
|---|---|
| Software | 18% |
| Healthcare | 15% |
| Business Services | 12% |
| Consumer Products | 10% |
| Other Sectors | 45% |
Regulatory Compliance
Registered as a regulated investment company (RIC) with the SEC, maintaining compliance with required distribution of 90% of taxable income to shareholders.
Risk Management
- Diversified portfolio across 40-50 different companies
- Average investment size: $15.3 million
- Weighted average maturity of debt investments: 5.6 years
How PennantPark Floating Rate Capital Ltd. (PFLT) Makes Money
Investment Portfolio Composition
As of Q4 2023, PennantPark Floating Rate Capital Ltd. manages a total investment portfolio valued at $954.8 million.
| Investment Type | Total Value | Percentage |
|---|---|---|
| First Lien Debt | $612.3 million | 64.2% |
| Second Lien Debt | $187.5 million | 19.6% |
| Subordinated Debt | $154.9 million | 16.2% |
Income Generation Streams
- Interest Income: $67.4 million in 2023
- Dividend Income: $22.9 million in 2023
- Capital Appreciation: $15.6 million in 2023
Investment Strategy
The company focuses on middle-market corporate lending, targeting companies with $10 million to $100 million in annual revenues.
| Industry Sector | Investment Allocation |
|---|---|
| Healthcare | 22.3% |
| Software | 18.7% |
| Consumer Services | 15.4% |
| Others | 43.6% |
Financial Performance
Net Investment Income for 2023: $48.3 million
Weighted Average Yield: 9.6%
Net Asset Value per share: $14.32
Fee Structure
- Management Fee: 1.5% of total assets
- Incentive Fee: 20% of net investment income above 8% hurdle rate
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