PennantPark, a middle-market credit platform, has closed its latest collateralized loan obligation at $300.8 million. The reinvestment period for the term debt securitization ends in October 2024 and the debt is scheduled to mature in October 2032. Credit Suisse Securities (USA) LLC acted as sole placement agent on the CLO transaction.
NEW YORK, Nov. 10, 2021 (GLOBE NEWSWIRE) — PennantPark Investment Advisers, LLC (the “Company” or “PennantPark”) today announced that PennantPark CLO III, Ltd. has closed a $300.8 million debt securitization in the form of a collateralized loan obligation (“CLO”). The debt (the “Debt”) issued in the CLO, which has a three-year reinvestment period, 11-year final maturity, is structured in the following manner:
Class Par Amount
($ in millions) % of Capital Structure Coupon Expected Rating (S&P)
A-1 Notes $171,000,000 56.2 % 3 Mo. LIBOR + 1.62% AAA
A-2 Notes 12,000,000 4.0 % 3 Mo. LIBOR + 1.75% AAA
B Notes 21,000,000 7.0 % 3 Mo. LIBOR + 1.90% AA
C Notes 24,000,000 8.0 % 3 Mo. LIBOR + 2.80% A
D Notes 18,000,000 6.0 % 3 Mo. LIBOR + 4.10% BBB-
E Notes 18,000,000 6.0 % 3 Mo. LIBOR + 8.14% BB-
Preferred Shares 36,800,000 12.2 % N/A NR
The reinvestment period for the term debt securitization ends in October 2024 and the Debt is scheduled to mature in October 2032. Credit Suisse Securities (USA) LLC acted as sole placement agent on the CLO Transaction.
“This transaction reinforces PennantPark’s commitment to the growth of our CLO platform, and our ability to access attractive, long-term financing well matched to the lower risk nature of the underlying assets we originate,” said Arthur Penn, Chief Executive Officer of PennantPark. “We are particularly pleased with the improved pricing and terms as compared to our previous CLOs, and look forward to continuing our efforts to drive efficient execution across a broader and more diversified investor base. We are excited that this transaction represents our first standalone CLO where a third-party institutional investor purchased the majority of the equity, and are appreciative of the trust and support of both our debt and equity investors.”
The notes offered as part of the term debt securitization have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state “blue sky” laws, and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
PennantPark is a leading middle market credit platform, which today has $5.2 billion of assets under management. Since its inception in 2007, PennantPark has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark is headquartered in New York, and has offices in Chicago, Houston, and Los Angeles.