- Reduced borrowing costs with a 25 basis points decrease in the interest rate spread
- Extended reinvestment period and maturity date by one year
- Increased first lien advance rate by 2.5 percentage points
PennantPark Floating Rate Capital Ltd. (PFLT, Financial) has announced a successful amendment to its credit facility agreement with Truist Bank. Among the key changes, PFLT reduced the pricing on its borrowing from SOFR plus 225 basis points to SOFR plus 200 basis points, effectively lowering its borrowing costs.
Moreover, the reinvestment period has been extended by one year, now concluding in August 2028, and the maturity date has also been extended by one year to August 2030. Additionally, PFLT has increased the maximum first lien advance rate from 70.0% to 72.5%.
However, the amendment also includes a slight reduction in commitments, which decreased from $736 million to $718 million. The credit facility is secured by assets held by PennantPark Floating Rate Funding I, a wholly-owned subsidiary of PFLT, and it includes standard covenants related to minimum asset coverage and equity requirements.
Arthur Penn, Chairman and CEO of PennantPark Floating Rate Capital Ltd., expressed appreciation for the support from their lending partners, noting that the favorable terms obtained are likely to benefit investors in the current market environment.
