PennantPark grabs $420 mln from Capital One

Capital One provided a $420 million five-year secured line of credit for PennantPark. Headquartered in New York, PennantPark is a business development company that primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans.

PRESS RELEASE

Bethesda, Md. (May 14, 2018) – Capital One announced today that it served as the administrative agent for a $420 million, five-year senior secured line of credit for PennantPark Senior Secured Loan Fund I, LLC, which is a portfolio company of PennantPark Floating Rate Capital, Ltd., a business development company affiliate of PennantPark Investment Advisers, LLC (together with its affiliates, “PennantPark”). The credit facility initially closed in June 2017 at $100 million and was increased to $210 million in December 2017.

“We worked closely with PennantPark to create a facility that could be scaled over time to meet the company’s growing demand for capital,” said Matt Tallo, Managing Director at Capital One’s Financial Institutions Group. “PennantPark is a premier middle-market lender with a world-class team of investment professionals, and we look forward to being a part of their continued success.”

PennantPark is a leading investment manager with deep expertise in direct lending to middle market companies. With approximately $2.3 billion of assets under management, the firm has been an active investor in the middle market, investing approximately $7 billion into 467 companies since its inception in 2007.

“Capital One has been a very responsive partner,” said Art Penn, PennantPark’s Founder, Chief Executive Officer and Chairman of the Board of Directors. “The team worked with us to design a highly customized and flexible leverage facility that allows our joint venture to generate higher returns. They provided an initial credit line nearly a year ago and were able to accommodate our need for additional capacity with a syndicate of highly regarded financial institutions, many of which are new relationships for PennantPark.”

Capital One’s Financial Institutions Group is dedicated to the lender finance market and works with a wide variety of non-bank financial institutions and asset managers. The team is focused on providing customized lending, advisory, and financing products and solutions—including asset securitization, recourse financing, and interest-rate hedging.

About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $250.8 billion in deposits and $362.9 billion in total assets as of March 31, 2018. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

About PennantPark Floating Rate Capital Ltd.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.