Published: 2023-02-08 16:36:57 ET

 

 

 

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 DECEMBER 31, 2022

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.)
1691 Michigan Avenue Miami Beach, Florida		33139
(Address of principal executive offices)		(Zip Code)

(786) 297-9500

(Registrant’s Telephone Number, Including Area Code)

 

None

(Former name, former address and former fiscal year, if changed since last report)

 

 

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 New York Stock Exchange

 

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 February 8, 2023 was 49,681,815.

 

 

 

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PENNANTPARK FLOATING RATE CAPITAL LTD.

FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2022

TABLE OF CONTENTS

 

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities as of December 31, 2022 (unaudited) and September 30, 2022		4
Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021 (unaudited)		5
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2022 and 2021 (unaudited)		6
Consolidated Statements of Cash Flows for the three months ended December 31, 2022 and 2021 (unaudited)		7
Consolidated Schedules of Investments as of December 31, 2022 (unaudited) and September 30, 2022		8
Notes to Consolidated Financial Statements (unaudited)		19
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		37
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		39
Item 3. Quantitative and Qualitative Disclosures About Market Risk		53
Item 4. Controls and Procedures		53
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		54
Item 1A. Risk Factors		54
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		55
Item 3. Defaults Upon Senior Securities		55
Item 4. Mine Safety Disclosures		55
Item 5. Other Information		55
Item 6. Exhibits		56
SIGNATURES		57

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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; “PTSF” refers to PennantPark-TSO Senior Loan Fund, LP, an unconsolidated limited partnership; “PennantPark Investment Advisers” or “Investment Adviser” refer 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; “Prior 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, originally entered into on June 23, 2011 and terminated on August 12, 2021; “Credit Facility” refers to our multi-currency senior secured revolving credit facility, as amended from time to time, with Truist Bank and other lenders, or the “Lenders,” entered into on August 12, 2021; “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 Notes 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 multi-currency, senior secured revolving credit facility, as amended and restated, or the Credit Facility, and our business include investments we make through our subsidiaries.

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Item 1. Consolidated Financial Statements

 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share and per share data)

 

		December 31, 2022				September 30, 2022
		(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (cost— $872,780  and $882,570, respectively)		$	870,741			$	893,249
Controlled, affiliated investments (cost— $308,245  and $294,787, respectively)			280,396				271,005
Total investments (cost— $1,181,025  and $1,177,357, respectively)			1,151,137				1,164,254
Cash and cash equivalents (cost—$52,944 and $47,917, respectively)			52,935				47,880
Interest receivable			8,736				7,543
Receivable for investments sold			12,353				3,441
Distributions receivable			577				—
Prepaid expenses and other assets			945				748
Total assets			1,226,683				1,223,866
Liabilities
Distributions payable			4,316				4,308
Payable for investments purchased			9,990				—
Credit Facility payable, at fair value (cost—$199,654 and $168,830, respectively) (See Notes 5 and 10)			197,688				167,563
2023 Notes payable, at fair value (par—$76,219 and $97,006, respectively) (See Notes 5 and 10)			73,833				96,812
2026 Notes payable, net (par—$185,000) (See Notes 5 and 10)			182,471				182,276
2031 Asset-Backed Debt, net (par—$228,000) (See Notes 5 and 10)			226,286				226,128
Interest payable on debt			6,075				8,163
Base management fee payable (See Note 3)			2,931				3,027
Performance-based incentive fee payable (See Note 3)			3,433				3,164
Deferred tax liability			5,293				4,568
Accrued other expenses			837				765
Total liabilities			713,153				696,774
Commitments and contingencies (See Note 11)
Net assets
Common stock, 45,431,815 and 45,345,638 shares issued and outstanding, respectively    Par value $0.001 per share and 100,000,000 shares authorized			45				45
Paid-in capital in excess of par value			619,019				618,028
Accumulated deficit			(105,534	)			(90,981	)
Total net assets		$	513,530			$	527,092
Total liabilities and net assets		$	1,226,683			$	1,223,866
Net asset value per share		$	11.30			$	11.62

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

 

		Three Months Ended December 31,
		2022				2021
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	20,735			$	16,858
Dividend			577				577
Other income			142				2,823
From non-controlled, affiliated investments:
Interest			—				112
Other income			—				—
From controlled, affiliated investments:
Interest			6,909				3,165
Dividend			2,975				2,800
Other Income			—				—
Total investment income			31,338				26,335
Expenses:
Base management fee (See Note 3)			2,931				2,896
Performance-based incentive fee (See Note 3)			3,433				3,180
Interest and expenses on debt (See Note 10)			9,858				6,639
Administrative services expenses (See Note 3)			144				144
Other general and administrative expenses			706				655
Expenses before provision for taxes			17,072				13,514
Provision for taxes on net investment income			534				100
Total expenses			17,606				13,614
Net investment income			13,732				12,721
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on:
Non-controlled, non-affiliated investments			63				3,073
Non-controlled and controlled, affiliated investments			—				65
Net realized gain (loss) on investments			63				3,138
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments			(12,693	)			4,387
Controlled and non-controlled, affiliated investments			(4,064	)			(7,884	)
Provision for taxes on unrealized appreciation (depreciation) on investments			(725	)			(1,540	)
Debt (appreciation) depreciation (See Note 5 and 10)			2,067				3,611
Net change in unrealized appreciation (depreciation) on investments and debt			(15,415	)			(1,426	)
Net realized and unrealized gain (loss) from investments and debt			(15,352	)			1,712
Net increase (decrease) in net assets resulting from operations		$	(1,620	)		$	14,433
Net increase (decrease) in net assets resulting from operations per common share (See Note 7)		$	(0.04	)		$	0.37
Net investment income per common share		$	0.30			$	0.33

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(in thousands, except share issue data)

(Unaudited)

 

		Three Months Ended December 31,
		2022				2021
Net increase (decrease) in net assets from operations:
Net investment income		$	13,732			$	12,721
Net realized gain on investments			63				3,138
Net change in unrealized depreciation on investments			(16,757	)			(3,497	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments			(725	)			(1,540	)
Net change in unrealized depreciation on debt			2,067				3,611
Net increase (decrease) in net assets resulting from operations			(1,620	)			14,433
Distributions to stockholders:
Distribution of net investment income			(12,932	)			(11,106	)
Total distributions to stockholders			(12,932	)			(11,106	)
Capital transactions
Public offering (See Note 1)			995				3,520
Offering costs			(5	)			(53	)
Net increase in net assets resulting from capital transactions			990				3,467
Net increase (decrease) in net assets			(13,562	)			6,794
Net assets:
Beginning of period			527,092				490,611
End of period		$	513,530			$	497,405
Capital share activity:
Shares issued from public offering			86,177				270,066

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

		Three months ended December 31,
		2022				2021
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	(1,620	)		$	14,433
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 depreciation on investments			16,757				3,497
Net change in unrealized depreciation on debt			(2,067	)			(3,611	)
Net realized loss on investments			(63	)			(3,138	)
Net accretion of discount and amortization of premium			(944	)			(1,358	)
Purchases of investments			(65,587	)			(335,103	)
Payment-in-kind interest			(56	)			(441	)
Proceeds from dispositions of investments			62,998				238,369
Accretion (amortization) of deferred financing costs			352				(320	)
(Increase) or Decrease in:
Interest receivable			(1,193	)			(291	)
Distribution receivable			(577	)			—
Receivable for investments sold			(8,912	)			15,536
Prepaid expenses and other assets			(197	)			(96	)
Increase or (Decrease) in:
Payable for investments purchased			9,990				(12,487	)
Interest payable on debt			(2,088	)			(1,440	)
Base management fee payable			(96	)			189
Performance-based incentive fee payable			269				2,557
Deferred tax liability			725				1,540
Accrued other expenses			72				(222	)
Net cash provided by (used in) operating activities			7,763				(82,386	)
Cash flows from financing activities:
Proceeds from public offering			995				3,520
Offering costs			(15	)			(53	)
Distributions paid to stockholders			(12,924	)			(11,078	)
Repayment of 2023 notes payable (See Notes 5 and 10)			(20,787	)			(20,787	)
Proceeds from 2026 notes issuance (See Notes 5 and 10)			—				84,333
Borrowings under Credit Facility (See Notes 5 and 10)			30,000				137,253
Repayments under Credit Facility (See Notes 5 and 10)			—				(100,000	)
Net cash provided by (used in) financing activities			(2,731	)			93,188
Net increase (decrease) in cash and cash equivalents			5,032				10,802
Effect of exchange rate changes on cash			23				639
Cash and cash equivalents, beginning of period			47,880				49,826
Cash and cash equivalents, end of period		$	52,935			$	61,267
Supplemental disclosures:
Interest paid		$	11,594			$	7,931
Taxes paid		$	5			$	183

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

DECEMBER 31, 2022

(in thousands, except share data)

(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—169.6% (3), (4)
First Lien Secured Debt—149.6%
A1 Garage Merger Sub, LLC		12/22/2028		Commercial Services & Supplies			11.12	%		3M L+650				359				$	354			$	354
A1 Garage Merger Sub, LLC - Unfunded Term Loan		12/21/2024		Commercial Services & Supplies			—				—				1,698				—				—
A1 Garage Merger Sub, LLC LLC (Revolver) (7), (9)		12/22/2028		Commercial Services & Supplies			—				—				748				—				—
Ad.net Acquisition, LLC		05/06/2026		Media			10.84	%		3M L+600					4,925				4,873				4,888
Ad.net Acquisition, LLC (Revolver) (7)		05/06/2026		Media			10.84	%		3M L+600					996				996				988
Ad.net Acquisition, LLC (Revolver) (7), (9)		05/06/2026		Media			—				—				249				—				(2	)
Altamira Technologies, LLC		07/24/2025		IT Services			10.24	%		3M L+600					4,725				4,691				4,642
Altamira Technologies, LLC (Revolver) (7)		07/24/2025		IT Services			10.73	%		3M L+600					575				575				565
Altamira Technologies, LLC (Revolver) (7), (9)		07/24/2025		IT Services			—				—				1,581				—				(28	)
American Insulated Glass, LLC		12/21/2023		Building Products			9.25	%		3M L+550					7,579				7,545				7,579
American Teleconferencing Services, Ltd.(7)		06/08/2023		Telecommunications		0.00%			(6)		—				7,986				7,915				90
American Teleconferencing Services, Ltd. (Revolver) (7)		01/31/2023		Telecommunications		0.00%			(6)		—				1,656				1,642				17
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)		06/10/2025		Media			10.98	%		3M L+625					14,067				13,928				13,786
Anteriad, LLC (f/k/a MeritDirect, LLC)		05/23/2024		Media			10.23	%		3M L+550					14,372				14,304				14,372
Anteriad, LLC (f/k/a MeritDirect, LLC) (Revolver) (7), (9)		05/23/2024		Media			—				—				2,869				—				—
Any Hour Services		07/21/2027		Energy Equipment and Services			9.54	%		3M L+525					10,501				10,414				10,212
Any Hour Services (Revolver) (7)		07/21/2027		Energy Equipment and Services			10.17	%		3M L+585					229				229				223
Any Hour Services (Revolver) (7), (9)		07/21/2027		Energy Equipment and Services			—				—				918				—				(25	)
Apex Service Partners, LLC		07/31/2025		Diversified Consumer Services			9.46	%		1M L+525					6,208				6,169				6,177
Apex Service Partners, LLC Term Loan B		07/31/2025		Diversified Consumer Services			9.67	%		1M L+550					296				296				295
Apex Service Partners, LLC Term Loan C		07/31/2025		Diversified Consumer Services			9.59	%		1M L+525					12,923				12,847				12,859
Apex Service Partners, LLC (Revolver) (7)		07/31/2025		Diversified Consumer Services			9.99	%		1M L+525					1,153				1,153				1,147
Apex Service Partners, LLC (Revolver) (7), (9)		07/31/2025		Diversified Consumer Services			—				—				692				—				(3	)
API Holding III Corp.		05/11/2026		Electronic Equipment, Instruments, and Components			8.98	%		1M L+425					5,790				5,771				4,574
Applied Technical Services, LLC		12/29/2026		Commercial Services & Supplies			10.47	%		3M L+575					7,325				7,222				7,142
Applied Technical Services, LLC (Unfunded Term Loan)		04/21/2023		Commercial Services & Supplies			—				—				2,100				—				(29	)
Applied Technical Services, LLC (Revolver) (7)		12/29/2026		Commercial Services & Supplies			12.25	%		3M L+475					382				382				372
Applied Technical Services, LLC (Revolver) (7), (9)		12/29/2026		Commercial Services & Supplies			—				—				891				—				(22	)
Arcfield Acquisition Corp. (Revolver) (9)		03/07/2028		Aerospace and Defense			—				—				887				—				(18	)
Beta Plus Technologies, Inc.		07/01/2029		Internet Software and Services			8.99	%		1M L+525					5,000				4,904				4,950
Blackhawk Industrial Distribution, Inc.		09/17/2024		Distributors			9.18	%		3M L+500					213				212				209
Blackhawk Industrial Distribution, Inc. (7),(9)		09/17/2024		Distributors			—				—				3,045				—				(38	)
Blackhawk Industrial Distribution, Inc. (Revolver) (7)		09/17/2024		Distributors			10.06	%		3M L+500					823				823				780
Blackhawk Industrial Distribution, Inc. (9)		09/17/2024		Distributors			—				—				1,920				—				(100	)
Broder Bros., Co.		12/04/2025		Textiles, Apparel and Luxury Goods			10.73	%		3M L+600					3,389				3,389				3,389
By Light Professional IT Services, LLC		05/16/2024		High Tech Industries			10.79	%		3M L+625					27,252				27,077				26,979
By Light Professional IT Services, LLC (Revolver)		05/16/2024		High Tech Industries			10.92	%		3M L+663					3,419				3,419				3,385
By Light Professional IT Services, LLC (Revolver) (9)		05/16/2024		High Tech Industries			—				—				646				—				(6	)
Cadence Aerospace, LLC (7)		11/14/2023		Aerospace and Defense			12.92	%		3M L+850					3,042				3,035				2,987
						(PIK 9.50%)
Cartessa Aesthetics, LLC		05/13/2028		Distributors			10.58	%		1M L+600					13,176				12,932				13,044
Cartessa Aesthetics, LLC (Revolver) (7)		05/13/2028		Distributors			10.58	%		1M L+600					511				511				505
Cartessa Aesthetics, LLC (Revolver) (7)(9)		05/13/2028		Distributors			—								927				-				(9	)
CF512, Inc.		08/20/2026		Media			10.75	%		3M L+600					8,077				7,976				7,916
CF512, Inc. (7), (9)		08/20/2026		Media			—				—				191				—				(2	)
CF512, Inc. (Revolver) (7), (9)		08/20/2026		Media			—				—				955				—				(19	)
CHA Holdings, Inc.		04/10/2025		Environmental Industries			9.23	%		3M L+450					1,577				1,573				1,577
Challenger Performance Optimization, Inc. (Revolver) (7)		08/31/2023		Business Services			10.82	%		1M L+675					358				357				345
Challenger Performance Optimization, Inc. (Revolver) (7), (9)		08/31/2023		Business Services			—				—				356				—				(12	)
Compex Legal Services, Inc.		02/09/2026		Professional Services			9.97	%		3M L+525					8,017				7,991				7,993
Compex Legal Services, Inc. (Revolver) (7)		02/07/2025		Professional Services			9.61	%		3M L+525					703				703				701
Compex Legal Services, Inc. (Revolver) (7), (9)		02/07/2025		Professional Services			—				—				703				—				(2	)
Connatix Buyer, Inc.		07/13/2027		Media			10.14	%		3M L+550					3,897				3,834				3,771
Connatix Buyer, Inc. (7), (9)		01/13/2023		Media			—				—				2,105				—				(47	)
Connatix Buyer, Inc. (7), (9)		07/13/2027		Media			—				—				1,234				—				(40	)
Crane 1 Services, Inc.		08/16/2027		Commercial Services & Supplies			9.75	%		3M L+575					889				883				880
Crane 1 Services, Inc. (Revolver) (7)		08/16/2027		Commercial Services & Supplies			10.48	%		3M L+575					202				202				200
Crane 1 Services, Inc. (Revolver) (7)		08/16/2027		Commercial Services & Supplies			—				—				135				—				(1	)
Dr. Squatch, LLC		08/31/2027		Personal Products			10.48	%		3M L+600					4,417				4,349				4,351
Dr. Squatch, LLC (Revolver) (7)		08/31/2027		Personal Products			10.46	%		3M L+600					1,118				1,118				1,101
Dr. Squatch, LLC (Revolver) (7), (9)		08/31/2027		Personal Products			—				—				2,236				—				(34	)
DRS Holdings III, Inc.		11/03/2025		Chemicals, Plastics and Rubber			10.47	%		3M L+575					16,533				16,368				16,004
DRS Holdings III, Inc. (Revolver) (7), (9)		11/03/2025		Personal Products			—				—				1,426				—				(46	)
Duraco Specialty Tapes LLC		06/30/2024		Containers and Packaging			9.89	%		3M L+550					3,239				3,205				3,187
ECL Entertainment, LLC		05/01/2028		Hotels, Restaurants and Leisure			11.88	%		1M L+750					5,190				5,146				5,173
ECM Industries, LLC (Revolver)		12/23/2025		Electronic Equipment, Instruments, and Components			9.50	%		1M L+475					343				343				327
ECM Industries, LLC (Revolver) (9)		12/23/2025		Electronic Equipment, Instruments, and Components			—				—				572				—				(27	)
eCommission Financial Services, Inc. (10)		10/05/2023		Banking, Finance, Insurance & Real Estate			9.17	%		1M L+500					5,528				5,528				5,528
eCommission Financial Services, Inc. (Revolver) (7), (9), (10)		10/05/2023		Banking, Finance, Insurance & Real Estate			—				—				5,000				—				—
EDS Buyer, LLC		12/22/2028		Electronic Equipment, Instruments, and Components			10.91	%		3M L+625					9,000				8,865				8,865
EDS Buyer, LLC - Unfunded Term Loan		12/22/2028		Electronic Equipment, Instruments, and Components			—				—				6,750				—				—
EDS Buyer, LLC. (Revolver) (7), (9)		12/22/2028		Electronic Equipment, Instruments, and Components			—				—				2,025				—				—
Efficient Collaborative Retail Marketing Company, LLC		06/15/2024		Media: Diversified and Production			11.13	%		3M L+675					7,131				7,112				6,739
Exigo Intermediate II, LLC (9)		03/15/2024		Software			—				—				2,758				—				(34	)
Exigo Intermediate II, LLC (Revolver)		03/15/2027		Software			10.13	%		3M L+575					138				138				135
Exigo Intermediate II, LLC (Revolver) (9)		03/15/2027		Software			—				—				552				—				(11	)
Findex Group Limited (5)(10)(11)		05/31/2024		Diversified Financial Services			7.68	%		3M L+450					AUD 10,000				7,431				6,782
Gantech Acquisition Corp.		05/14/2026		IT Services			10.63	%		1M L+625					21,869				21,541				21,213
Gantech Acquisition Corp. (Revolver) (7)		05/14/2026		IT Services			10.63	%		1M L+625					1,244				1,244				1,207
Gantech Acquisition Corp. (Revolver) (7), (9)		05/14/2026		IT Services			—				—				2,489				—				(75	)
Global Holdings InterCo LLC		03/16/2026		Diversified Financial Services			10.19	%		3M L+600					3,418				3,382				3,264

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

8

---

 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

DECEMBER 31, 2022

(in thousands, except share data)

(Unaudited)

 

Issuer Name		Maturity		Industry		Current  Coupon				Basis Point  Spread  Above  Index (1)				Par /  Shares				Cost				Fair Value (2)
Graffiti Buyer, Inc.		08/10/2027		Trading Companies & Distributors			10.23	%		3M L+550					209			$	207			$	202
Graffiti Buyer, Inc. (7), (9)		08/10/2023		Trading Companies & Distributors			—				—				862				—				(19	)
Graffiti Buyer, Inc. (Revolver) (7)		08/10/2027		Trading Companies & Distributors			10.16	%		3M L+575					348				348				334
Graffiti Buyer, Inc. (Revolver) (7), (9)		08/10/2027		Trading Companies & Distributors			—				—				516				—				(21	)
Hancock Roofing and Construction L.L.C.		12/31/2026		Insurance			10.23	%		3M L+550					4,438				4,362				4,349
Hancock Roofing and Construction L.L.C. (Revolver) (7)		12/31/2026		Insurance			9.79	%		3M L+550					160				160				157
Hancock Roofing and Construction L.L.C. (Revolver) (7), (9)		12/31/2026		Insurance			—				—				590				—				(12	)
Holdco Sands Intermediate, LLC		11/23/2028		Aerospace and Defense			10.17	%		3M L+600					4,950				4,863				4,851
Holdco Sands Intermediate, LLC (Revolver) (9)		11/23/2027		Aerospace and Defense			—				—				1,791				—				(36	)
HW Holdco, LLC		12/10/2024		Media			6.00	%		1M L+500					8,392				8,355				8,287
HW Holdco, LLC (9)		12/10/2024		Media			—				—				1,686				—				(4	)
HW Holdco, LLC (Revolver) (7), (9)		12/10/2024		Media			—				—				1,452				—				(18	)
IDC Infusion Services, Inc.		12/30/2026		Healthcare Equipment and Supplies			11.47	%		3M L+700					5,709				5,609				5,550
IDC Infusion Services, Inc. (Revolver) (9)		12/30/2026		Healthcare Equipment and Supplies			—				—				4,167				—				(146	)
IG Investments Holdings, LLC (7)		09/22/2028		Professional Services			10.38	%		3M L+600					4,462				4,381				4,395
IG Investments Holdings, LLC (Revolver)		09/22/2027		Professional Services			10.39	%		3M L+600					191				191				188
IG Investments Holdings, LLC (Revolver) (7), (9)		09/22/2027		Professional Services			—				—				286				—				(4	)
Imagine Acquisitionco, LLC		11/15/2027		Software			10.14	%		3M L+550					3,969				3,901				3,849
Imagine Acquisitionco, LLC (9)		11/15/2027		Software			—				—				1,657				—				(33	)
Imagine Acquisitionco, LLC (Revolver) (9)		11/15/2027		Software			—				—				1,193				—				(36	)
Inception Fertility Ventures, LLC		12/07/2023		Healthcare Providers and Services			11.94	%		3M L+715					14,916				14,739				14,618
Infinity Home Services Holdco, Inc. - Unfunded Term Loan		12/28/2023		Commercial Services & Supplies			0.00	%			—				3,230				—				—
Infinity Home Services Holdco, Inc. (Revolver) (9)		12/28/2028		Commercial Services & Supplies			0.00	%			—				1,292				—				—
Infolinks Media Buyco, LLC		11/01/2026		Media			10.23	%		3M L+575					2,618				2,577				2,618
Infolinks Media Buyco, LLC (9)		11/01/2023		Media			—				—				969				—				10
Integrative Nutrition, LLC		09/29/2023		Consumer Services			9.48	%		3M L+450					15,583				15,556				15,272
Integrative Nutrition, LLC (Revolver) (7), (9)		09/29/2023		Consumer Services			—				—				5,000				—				—
Integrity Marketing Acquisition, LLC (7)		08/27/2025		Insurance			10.81	%		SOFR+550					15,785				15,667				15,548
ITI Holdings, Inc. (Revolver)		03/03/2028		IT Services			10.77	%		3M L+550					229				229				224
ITI Holdings, Inc. (Revolver) (9)		03/03/2028		IT Services			—				—				436				—				(9	)
K2 Pure Solutions NoCal, L.P. (Revolver) (7), (9)		12/20/2023		Chemicals, Plastics and Rubber			—				—				1,429				—				—
Kinetic Purchaser, LLC		11/10/2027		Personal Products			10.73	%		3M L+600					17,384				17,089				16,949
Kinetic Purchaser, LLC - (Revolver) (9)		11/10/2026		Personal Products			10.73	%		3M L+600					3,435				3,435				3,349
Lash OpCo, LLC		02/18/2027		Personal Products			11.17	%		1M L+700					10,484				10,308				10,274
Lash OpCo, LLC (Revolver) (7)		08/16/2026		Personal Products			11.57	%		1M L+700					784				784				768
Lash OpCo, LLC (Revolver) (7), (9)		08/16/2026		Personal Products			—								1,137				—				(23	)
LAV Gear Holdings, Inc.		10/31/2024		Capital Equipment			10.23	%		1M L+565					9,543				9,522				9,409
						(PIK 5.50%)
LAV Gear Holdings, Inc. (Revolver) (7)		10/31/2024		Capital Equipment			10.23	%		1M L+565					1,721				1,721				1,697
						(PIK 5.50%)
Ledge Lounger, Inc.		11/09/2026		Leisure Products			10.98	%		3M L+625					3,738				3,682				3,663
Ledge Lounger, Inc. (Revolver) (7)		11/09/2026		Leisure Products			10.98	%		3M L+625					263				263				258
Ledge Lounger, Inc. (Revolver) (9)		11/09/2026		Leisure Products			—				—				526				—				(11	)
Lightspeed Buyer Inc.		02/03/2026		Healthcare Technology			9.88	%		1M L+575					24,295				24,022				23,688
Lightspeed Buyer Inc. (Revolver) (7)		02/03/2026		Healthcare Technology			9.88	%		1M L+575					1,083				1,083				1,056
Lightspeed Buyer Inc. (Revolver) (7) (9)		02/03/2026		Healthcare Technology			—				—				1,416				—				(35	)
Lucky Bucks, LLC		07/20/2027		Hotels, Restaurants and Leisure			10.43	%		3M L+550					4,275				4,206				2,426
MAG DS Corp.		04/01/2027		Aerospace and Defense			10.23	%		1M L+550					3,704				3,573				3,370
Mars Acquisition Holdings Corp.		05/14/2026		Media			10.23	%		3M L+550					8,794				8,654				8,706
Mars Acquisition Holdings Corp. (Revolver)(7)(9)		05/14/2026		Media			—				—				2,435				—				(24	)
MBS Holdings, Inc. (Revolver)(7)(9)		04/16/2027		Internet Software and Services			—				—				1,157				—				(12	)
MDI Buyer, Inc. - Unfunded Term Loan		07/25/2028		Commodity Chemicals			10.36	%		3M L+600					2,057				2,034				2,012
MDI Buyer, inc. (Revolver) (7)		07/25/2028		Commodity Chemicals			10.26	%		3M L+600					237				237				232
MDI Buyer, inc. (Revolver) (9)		07/25/2028		Commodity Chemicals			—				—				536				—				(7	)
Meadowlark Acquirer, LLC		12/10/2027		Professional Services			9.73	%		3M L+550					1,315				1,302				1,302
Meadowlark Acquirer, LLC - Term Loan I (9)		12/10/2027		Professional Services			—				—				1,782				—				—
Meadowlark Acquirer, LLC - Term Loan II (9)		12/10/2027		Professional Services			—				—				9,483				—				—
Meadowlark Acquirer, LLC (Revolver) (9)		12/10/2027		Professional Services			—				—				1,693				—				(17	)
Mission Critical Electronics, Inc.		03/28/2024		Capital Equipment			8.09	%		SOFR +500					3,600				3,570				3,585
Mission Critical Electronics, Inc. (9)		03/28/2024		Capital Equipment			—				—				707				—				-
Mission Critical Electronics, Inc. (Revolver) (7)		03/28/2024		Capital Equipment			11.50	%		1M L+400					265				265				264
Mission Critical Electronics, Inc. (Revolver) (7), (9)		03/28/2024		Capital Equipment			—				—				1,060				—				(4	)
Municipal Emergency Services, Inc. (7)		09/28/2027		Distributors			8.91	%		3M L+500					675				668				648
Municipal Emergency Services, Inc. (7), (9)		09/28/2027		Distributors			—				—				271				—				(8	)
Municipal Emergency Services, Inc. - Unfunded Term Loan A		06/16/2023		Distributors			—				—				632				—				(16	)
Municipal Emergency Services, Inc. - Unfunded Term Loan B		12/16/2024		Distributors			—				—				1,264				—				(51	)
Municipal Emergency Services, Inc. (Revolver) (7)		09/28/2027		Distributors			10.29	%		3M L+500					568				568				545
Municipal Emergency Services, Inc. (Revolver) (7), (9)		09/28/2027		Distributors			—				—				379				—				(15	)
NBH Group LLC (Revolver) (7), (9)		08/19/2026		Healthcare Equipment and Supplies			—				—				1,677				—				—
One Stop Mailing, LLC		05/07/2027		Air Freight and Logistics			10.63	%		3M L+625					8,736				8,596				8,474
ORL Acquisition, Inc. (7)		09/03/2027		Consumer Finance			9.98	%		3M L+525					7,177				7,057				7,177
ORL Acquisition, Inc. (Revolver) (7), (9)		09/03/2027		Consumer Finance			—				—				861				—				—
Output Services Group, Inc.		06/27/2026		Business Services			11.30	%		1M L+675					4,880				4,439				3,660
Owl Acquisition, LLC		02/04/2028		Professional Services			8.41	%		3M L+575					3,980				3,868				3,881
Ox Two, LLC		05/18/2026		Construction and Building			10.84	%		1M L+700					25,707				25,396				24,936
Ox Two, LLC (Revolver) (7)		05/18/2026		Construction and Building			10.84	%		1M L+700					2,710				2,710				2,628
Ox Two, LLC (Revolver) (9)		05/18/2026		Construction and Building			—				—				677				—				(20	)
PL Acquisitionco, LLC		11/09/2027		Textiles, Apparel and Luxury Goods			10.88	%		3M L+650					6,095				6,003				5,942
PL Acquisitionco, LLC - (Revolver) (9)		11/09/2027		Textiles, Apparel and Luxury Goods			—				—				2,290				—				(57	)
PlayPower, Inc.		05/08/2026		Leisure Products			12.00	%		1M L+450					3,430				3,411				2,984

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

9

---

 

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

DECEMBER 31, 2022

(in thousands, except share data)

(Unaudited)

Issuer Name		Maturity		Industry		Current  Coupon				Basis Point  Spread  Above  Index (1)				Par /  Shares				Cost				Fair Value (2)
PRA Events, Inc.		08/07/2025		Business Services			15.23	%		1M L+1,050					3,323			$	2,903			$	3,323
						(PIK 10.50%)
Pragmatic Institute, LLC - Unfunded Term Loan		07/06/2028		Professional Services			—				—				2,290				—				—
Pragmatic Institute, LLC (Revolver)		07/06/2028		Professional Services			10.33	%		3M L+575					305				305				302
Pragmatic Institute, LLC (Revolver) (9)		07/06/2028		Professional Services			—				—				1,221				—				(12	)
Quantic Electronics, LLC		11/19/2026		Electronic Equipment, Instruments, and Components			10.32	%		1M L+600					6,705				6,619				6,571
Quantic Electronics, LLC - Unfunded Term Loan		11/19/2026		Electronic Equipment, Instruments, and Components			—				—				783				-				(8	)
Quantic Electronics, LLC (Revolver) (7)		11/19/2026		Electronic Equipment, Instruments, and Components			10.84	%		1M L+600					536				536				525
Quantic Electronics, LLC (Revolver) (7), (9)		11/19/2026		Electronic Equipment, Instruments, and Components			—				—				134				—				(3	)
Questex, LLC		09/09/2024		Media: Diversified and Production			8.98	%		3M L+500					7,181				7,135				7,038
Questex, LLC (Revolver) (7), (9)		09/09/2024		Media: Diversified and Production			—				—				1,197				—				(24	)
Rancho Health MSO, Inc. (7)		12/18/2025		Healthcare Equipment and Supplies			9.42	%		3M L+550					1,037				1,037				1,037
Rancho Health MSO, Inc. (Revolver) (7), (9)		12/18/2025		Healthcare Equipment and Supplies			—				—				525				—				—
Recteq, LLC		01/29/2026		Leisure Products			10.98	%		3M L+600					1,474				1,454				1,422
Recteq, LLC (Revolver) (7), (9)		01/29/2026		Leisure Products			—				—				1,296				—				(45	)
Research Now Group, Inc. and Dynata, LLC		12/20/2024		Business Services