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Published: 2023-08-09 16:09:48 ET

10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)r


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023


☐	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.

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 August 9, 2023 was 58,734,702.

PENNANTPARK FLOATING RATE CAPITAL LTD.

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

TABLE OF CONTENTS


PART I. CONSOLIDATED FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Consolidated Statements of Assets and Liabilities as of June 30, 2023 (unaudited) and September 30, 2022		4

Consolidated Statements of Operations for the three and nine months ended June 30, 2023 and 2022 (unaudited)		5

Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2023 and 2022 (unaudited)		6

Consolidated Statements of Cash Flows for the nine months ended June 30, 2023 and 2022 (unaudited)		7

Consolidated Schedules of Investments as of June 30, 2023 (unaudited) and September 30, 2022		8

Notes to Consolidated Financial Statements (unaudited)		19

Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		40

Item 3. Quantitative and Qualitative Disclosures About Market Risk		54

Item 4. Controls and Procedures		54

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		55

Item 1A. Risk Factors		55

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		56

Item 3. Defaults Upon Senior Securities		56

Item 4. Mine Safety Disclosures		56

Item 5. Other Information		56

Item 6. Exhibits		57

SIGNATURES		58

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.

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)


	June 30, 2023			September 30, 2022
	(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost— $816,166 and $882,570, respectively)	$	814,608		$	893,249
Controlled, affiliated investments (amortized cost— $324,267 and $294,787, respectively)		290,657			271,005
Total investments (cost— $1,140,433 and $1,177,357, respectively)		1,105,265			1,164,254
Cash and cash equivalents (cost— $59,092 and $47,916, respectively)		59,092			47,880
Interest receivable		10,005			7,543
Receivable for investments sold		7,352			3,441
Distributions receivable		692			—
Prepaid expenses and other assets		817			748
Total assets		1,183,223			1,223,866
Liabilities
Distributions payable		5,499			4,308
Credit Facility payable, at fair value (cost— $64,400 and $169,654, respectively) (See Notes 5 and 10)		63,917			167,563
2023 Notes payable, at fair value (par—$76,219 and $97,006, respectively) (See Notes 5 and 10)		79,260			96,812
2026 Notes payable, net (par—$185,000) (See Notes 5 and 10)		182,860			182,276
2031 Asset-Backed Debt, net (par—$228,000) (See Notes 5 and 10)		226,601			226,128
Interest payable on debt		6,138			8,163
Base management fee payable (See Note 3)		2,840			3,027
Incentive fee payable (See Note 3)		4,625			3,164
Deferred tax liability		1,640			4,568
Accounts payable and accrued expenses		1,416			765
Total liabilities		574,796			696,774
Commitments and contingencies (See Note 11)
Net assets
Common stock, 55,537,299 and 45,345,638 shares issued and outstanding, respectively Par value $0.001 per share and 100,000,000 shares authorized		56			45
Paid-in capital in excess of par value		730,528			618,028
Accumulated deficit		(122,157	)		(90,981	)
Total net assets	$	608,427		$	527,092
Total liabilities and net assets	$	1,183,223		$	1,223,866
Net asset value per share	$	10.96		$	11.62

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Investment income:
From non-controlled, non-affiliated investments:
Interest	$	21,988		$	16,701		$	65,440		$	49,753
Dividend		4,390			577			5,602			1,731
Other income		734			285			1,460			3,795
From non-controlled, affiliated investments:
Interest		—			—			—			112
Other income		—			—			—			—
From controlled, affiliated investments:
Interest		8,151			4,228			22,701			10,633
Dividend		2,450			3,938			8,400			10,675
Total investment income		37,713			25,729			103,603			76,699
Expenses:
Base management fee (See Note 3)		2,840			3,062			8,643			8,904
Performance-based incentive fee (See Note 3)		4,625			2,576			12,245			8,461
Interest and expenses on debt (See Note 10)		9,985			7,369			29,595			20,713
Administrative services expenses (See Note 3)		477			144			764			431
General and administrative expenses		1,134			655			2,545			1,964
Expenses before provision for taxes		19,061			13,806			53,792			40,473
Provision for taxes on net investment income		150			100			834			300
Total expenses		19,211			13,906			54,626			40,773
Net investment income		18,502			11,823			48,977			35,926
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on:
Non-controlled, non-affiliated investments		(6,065	)		701			(13,520	)		10,694
Non-controlled and controlled, affiliated investments		—			—			—			(22,315	)
Provision for taxes on realized gain on investments		—			—			(300	)		—
Net realized gain (loss) on investments		(6,065	)		701			(13,820	)		(11,621	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		3,051			(11,204	)		(12,204	)		(12,243	)
Controlled and non-controlled, affiliated investments		(4,143	)		(6,431	)		(9,825	)		8,597
Provision for taxes on unrealized appreciation (depreciation) on investments		—			—			2,929			(5,340	)
Debt (appreciation) depreciation (See Note 5 and 10)		(5,752	)		26			(4,842	)		1,273
Net change in unrealized appreciation (depreciation) on investments and debt		(6,844	)		(17,609	)		(23,942	)		(7,713	)
Net realized and unrealized gain (loss) from investments and debt		(12,909	)		(16,908	)		(37,762	)		(19,334	)
Net increase (decrease) in net assets resulting from operations	$	5,593		$	(5,085	)	$	11,215		$	16,592
Net increase (decrease) in net assets resulting from operations per common share (See Note 7)	$	0.11		$	(0.12	)	$	0.23		$	0.42
Net investment income per common share	$	0.36		$	0.29		$	1.02		$	0.90

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(in thousands, except share issue data)

(Unaudited)


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Net increase (decrease) in net assets from operations:
Net investment income	$	18,502		$	11,823		$	48,977		$	35,926
Net realized gain (loss) on investments		(6,065	)		701			(13,520	)		(11,621	)
Net change in unrealized appreciation (depreciation) on investments		(1,092	)		(17,635	)		(22,029	)		(3,646	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments		—			—			2,929			(5,340	)
Net provision for taxes on realized gain on investments		—			—			(300	)		—
Net change in unrealized depreciation on debt		(5,752	)		26			(4,842	)		1,273
Net increase (decrease) in net assets resulting from operations		5,593			(5,085	)		11,215			16,592
Distributions to stockholders:
Distribution of net investment income		(15,445	)		(11,780	)		(42,390	)		(34,141	)
Total distributions to stockholders		(15,445	)		(11,780	)		(42,390	)		(34,141	)
Capital transactions
Public offering (See Note 1)		64,060			1,820			113,215			32,336
Offering costs		(450	)		(28	)		(705	)		(485	)
Net increase in net assets resulting from capital transactions		63,610			1,792			112,510			31,851
Net increase (decrease) in net assets		53,758			(15,073	)		81,335			14,301
Net assets:
Beginning of period		554,669			519,986			527,092			490,611
End of period	$	608,427		$	504,913		$	608,427		$	504,913
Capital share activity:
Shares issued from public offering		5,805,484			136,072			10,191,661			2,464,910

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)


	Nine months ended June 30,
	2023			2022
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	11,215		$	16,593
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Net change in unrealized appreciation (depreciation) on investments		22,029			3,645
Net change in unrealized (appreciation) depreciation on debt		4,842			(1,273	)
Net realized (gain) loss on investments		13,520			11,621
Net accretion of discount and amortization of premium		(3,741	)		(2,920	)
Purchases of investments		(231,001	)		(553,106	)
Payment-in-kind interest		(471	)		(1,203	)
Proceeds from dispositions of investments		258,075			397,184
Accretion (amortization) of deferred financing costs		1,056			385
(Increase) Decrease in:
Interest receivable		(2,462	)		(1,913	)
Distribution receivable		(692	)		—
Receivable for investments sold		(3,911	)		27,357
Prepaid expenses and other assets		(69	)		(10,127	)
Increase or (Decrease) in:
Payable for investments purchased		—			(3,746	)
Interest payable on debt		(2,025	)		(955	)
Base management fee payable		(187	)		355
Incentive fee payable		1,461			1,952
Deferred tax liability		(2,928	)		5,340
Account payable and accrued expenses		651			(768	)
Net cash provided by (used in) operating activities		65,362			(111,579	)
Cash flows from financing activities:
Proceeds from public offering		113,214			32,336
Offering costs		(705	)		(485	)
Distributions paid to stockholders		(41,200	)		(33,904	)
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)		65,000			147,254
Repayments under Credit Facility (See Notes 5 and 10)		(169,709	)		(107,000	)
Net cash provided by (used in) financing activities		(54,187	)		101,747
Net increase (decrease) in cash and cash equivalents		11,175			(9,832	)
Effect of exchange rate changes on cash		37			622
Cash and cash equivalents, beginning of period		47,880			49,826
Cash and cash equivalents, end of period	$	59,092		$	40,616
Supplemental disclosures:
Interest paid	$	30,564		$	20,610
Taxes paid	$	530		$	2,557
Non-cash exchanges and conversions	$	3,393		$	50,352

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

JUNE 30, 2023

(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—133.9% (3), (4)
First Lien Secured Debt—116.7%
A1 Garage Merger Sub, LLC	12/22/2028	Commercial Services & Supplies		11.79	%	3M L+660			1,524	$	1,502	$	1,508
A1 Garage Merger Sub, LLC - Unfunded Term Loan	12/22/2028	Commercial Services & Supplies		—			—		528		—		3
A1 Garage Merger Sub, LLC LLC (Revolver) (7), (9)	12/22/2028	Commercial Services & Supplies		—			—		748		—		(7	)
Ad.net Acquisition, LLC	05/07/2026	Media		11.50	%	3M L+600			4,900		4,855		4,863
Ad.net Acquisition, LLC (Revolver) (7)	05/07/2026	Media		11.50	%	3M L+600			871		871		865
Ad.net Acquisition, LLC (Revolver) (7), (9)	05/07/2026	Media		—			—		373		—		(3	)
Altamira Technologies, LLC	07/24/2025	IT Services		10.70	%	3M L+600			4,441		4,415		4,441
Altamira Technologies, LLC (Revolver) (7)	07/24/2025	IT Services		10.89	%	3M L+600			575		575		575
Altamira Technologies, LLC (Revolver) (7), (9)	07/24/2025	IT Services		—			—		1,581		—		—
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	06/10/2025	Media		11.64	%	3M L+625			13,995		13,882		13,715
Anteriad, LLC (f/k/a MeritDirect, LLC)	05/23/2024	Media		10.89	%	3M L+550			13,982		13,938		13,632
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan	05/23/2024	Media		11.89	%	3M L+650			2,240		2,205		2,206
Anteriad, LLC (f/k/a MeritDirect, LLC) (Revolver) (7), (9)	05/23/2024	Media		—			—		2,869		—		(72	)
Any Hour Services	07/21/2027	Energy Equipment and Services		10.90	%	3M L+525			6,411		6,342		6,235
Any Hour Services (Revolver) (7), (9)	07/21/2027	Energy Equipment and Services		—			—		1,147		—		(32	)
Apex Service Partners, LLC	07/31/2025	Diversified Consumer Services		10.52	%	1M L+525			6,160		6,129		6,129
Apex Service Partners, LLC Term Loan B	07/31/2025	Diversified Consumer Services		10.75	%	1M L+550			294		294		293
Apex Service Partners, LLC Term Loan C	07/31/2025	Diversified Consumer Services		10.50	%	1M L+525			12,826		12,782		12,761
Apex Service Partners, LLC (Revolver) (7), (9)	07/31/2025	Diversified Consumer Services		—			—		1,845		—		(9	)
API Holding III Corp.	05/11/2026	Electronic Equipment, Instruments, and Components		9.75	%	1M L+425			5,760		5,744		3,936
Applied Technical Services, LLC	12/29/2026	Commercial Services & Supplies		11.13	%	3M L+575			8,133		8,030		7,971
Applied Technical Services, LLC (Unfunded Term Loan)	04/21/2023	Commercial Services & Supplies		—			—		197		—		(2	)
Applied Technical Services, LLC (Revolver) (7)	12/29/2026	Commercial Services & Supplies		12.94	%	3M L+475			1,082		1,082		1,060
Applied Technical Services, LLC (Revolver) (7), (9)	12/29/2026	Commercial Services & Supplies		—			—		191		—		(4	)
Arcfield Acquisition Corp. (Revolver) (9)	03/07/2028	Aerospace and Defense		—			—		887		—		(9	)
Beta Plus Technologies, Inc.	07/01/2029	Internet Software and Services		10.99	%	1M L+575			4,963		4,871		4,541
BioDerm, Inc. (Revolver) (9)	01/31/2028	Healthcare Equipment and Supplies		—			—		1,071		—		(16	)
Blackhawk Industrial Distribution, Inc.	09/17/2026	Distributors		11.47	%	3M L+625			632		629		616
Blackhawk Industrial Distribution, Inc. (7),(9)	09/17/2026	Distributors		—			—		2,624		—		(52	)
Blackhawk Industrial Distribution, Inc. (9)	09/17/2026	Distributors		—			—		2,744		—		(69	)
Broder Bros., Co.	12/04/2025	Textiles, Apparel and Luxury Goods		11.16	%	3M L+600			3,346		3,346		3,346
By Light Professional IT Services, LLC	05/16/2024	High Tech Industries		12.30	%	3M L+688			25,955		25,851		25,501
By Light Professional IT Services, LLC (Revolver) (7)(9)	05/16/2024	High Tech Industries		0.00	%		—		3,507		—		(61	)
Cadence Aerospace, LLC (7)	11/14/2023	Aerospace and Defense		13.91	%	3M L+850			976		975		976
			(PIK 9.50%)
Cartessa Aesthetics, LLC	06/14/2028	Distributors		11.24	%	1M L+600			13,109		12,901		13,044
Cartessa Aesthetics, LLC (Revolver) (7)	06/14/2028	Distributors		11.24	%	1M L+600			511		511		508
Cartessa Aesthetics, LLC (Revolver) (7)(9)	06/14/2028	Distributors		—					927		—		(5	)
CF512, Inc.	08/20/2026	Media		11.47	%	3M L+600			5,995		5,939		5,935
CF512, Inc. (Revolver) (7), (9)	08/20/2026	Media		—			—		955		—		(10	)
CHA Holdings, Inc.	04/10/2025	Environmental Industries		10.00	%	3M L+450			1,569		1,565		1,569
Challenger Performance Optimization, Inc. (Revolver) (7)	08/31/2023	Business Services		11.85	%	3M L+675			22		22		21
Challenger Performance Optimization, Inc. (Revolver) (7), (9)	08/31/2023	Business Services		—			—		690		—		(24	)
Compex Legal Services, Inc.	02/09/2026	Professional Services		10.78	%	3M L+525			7,976		7,954		7,976
Compex Legal Services, Inc. (Revolver) (7)	02/07/2025	Professional Services		10.79	%	3M L+525			984		984		984
Compex Legal Services, Inc. (Revolver) (7), (9)	02/07/2025	Professional Services		—			—		422		—		—
Connatix Buyer, Inc.	07/13/2027	Media		10.65	%	3M L+550			3,825		3,769		3,672
Connatix Buyer, Inc. (7), (9)	07/14/2023	Media		—			—		2,105		—		(63	)
Connatix Buyer, Inc. (7), (9)	07/13/2027	Media		—			—		1,234		—		(49	)
Crane 1 Services, Inc.	08/16/2027	Commercial Services & Supplies		10.75	%	3M L+575			884		872		876
Crane 1 Services, Inc. (Revolver) (7)	08/16/2027	Commercial Services & Supplies		10.75	%	3M L+575			179		179		178
Crane 1 Services, Inc. (Revolver) (7)	08/16/2027	Commercial Services & Supplies		—			—		157		—		(2	)
Dr. Squatch, LLC	08/31/2027	Personal Products		11.09	%	3M L+600			4,394		4,335		4,351
Dr. Squatch, LLC (Revolver) (7), (9)	08/31/2027	Personal Products		—			—		3,353		—		(34	)
DRS Holdings III, Inc.	11/03/2025	Chemicals, Plastics and Rubber		11.63	%	3M L+640			16,444		16,305		16,000
DRS Holdings III, Inc. (Revolver) (7), (9)	11/03/2025	Personal Products		—			—		1,426		—		(39	)
Duraco Specialty Tapes LLC	06/30/2024	Containers and Packaging		11.75	%	3M L+650			3,454		3,403		3,395
ECL Entertainment, LLC	05/01/2028	Hotels, Restaurants and Leisure		12.72	%	1M L+750			3,659		3,628		3,668
eCommission Financial Services, Inc. (10)	10/05/2023	Banking, Finance, Insurance & Real Estate		10.20	%	1M L+500			4,909		4,909		4,909
eCommission Financial Services, Inc. (Revolver) (7), (9), (10)	10/05/2023	Banking, Finance, Insurance & Real Estate		—			—		5,000		—		—
EDS Buyer, LLC - Unfunded Term Loan	01/10/2029	Electronic Equipment, Instruments, and Components		—			—		6,750		—		(84	)
EDS Buyer, LLC. (Revolver) (7), (9)	01/10/2029	Electronic Equipment, Instruments, and Components		—			—		2,025		—		(51	)
Efficient Collaborative Retail Marketing Company, LLC	06/15/2024	Media: Diversified and Production		14.50	%	3M L+900			7,147		7,144		5,288
ETE Intermediate II, LLC - Revolver	05/25/2029	Diversified Consumer Services		11.69	%	3M L+650			552		552		536
ETE Intermediate II, LLC (Revolver) (9)	05/25/2029	Diversified Consumer Services		—			—		1,104		—		(33	)
Exigo Intermediate II, LLC (9)	03/15/2024	Software		—			—		2,758		—		(34	)
Exigo Intermediate II, LLC (Revolver) (9)	03/15/2027	Software		—			—		689		—		(14	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

JUNE 30, 2023

(in thousands, except share data)

(Unaudited)


Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (1)		Par / Shares		Cost		Fair Value (2)
Five Star Buyer, Inc.	02/23/2028	Hotels, Restaurants and Leisure		12.09	%	3M L+710			4,615	$	4,530	$	4,523
Five Star Buyer, Inc. - DDTL B Unfunded	02/23/2028	Hotels, Restaurants and Leisure		—			—		837		-		(17	)
Five Star Buyer, Inc. (Revolver) (9)	02/23/2028	Hotels, Restaurants and Leisure		—			—		741		-		(15	)
Gantech Acquisition Corp.	05/14/2026	IT Services		11.50	%	1M L+625			21,644		21,359		20,887
Gantech Acquisition Corp. (Revolver) (7)	05/14/2026	IT Services		11.50	%	1M L+625			3,733		3,733		3,603
Global Holdings InterCo LLC	03/16/2026	Diversified Financial Services		11.76	%	3M L+650			3,288		3,258		3,115
Graffiti Buyer, Inc.	08/10/2027	Trading Companies & Distributors		10.99	%	3M L+550			499		494		494
Graffiti Buyer, Inc. (7), (9)	08/10/2023	Trading Companies & Distributors		—			—		570		—		—
Graffiti Buyer, Inc. (Revolver) (7)	08/10/2027	Trading Companies & Distributors		11.30	%	3M L+575			334		334		331
Graffiti Buyer, Inc. (Revolver) (7), (9)	08/10/2027	Trading Companies & Distributors		—			—		531		—		(5	)
Hancock Roofing and Construction L.L.C.	12/31/2026	Insurance		10.74	%	3M L+550			4,172		4,108		4,089
Hancock Roofing and Construction L.L.C. (Revolver) (7)	12/31/2026	Insurance		10.70	%	3M L+550			335		335		328
Hancock Roofing and Construction L.L.C. (Revolver) (7), (9)	12/31/2026	Insurance		—			—		415		—		(8	)
Holdco Sands Intermediate, LLC	11/23/2028	Aerospace and Defense		11.21	%	3M L+600			4,925		4,844		4,876
Holdco Sands Intermediate, LLC (Revolver) (9)	11/23/2027	Aerospace and Defense		—			—		1,791		—		(18	)
HPA SPQ Merger Sub, Inc.	06/15/2029	Professional Services		11.52	%	3M L+625			3,758		3,683		3,683
HPA SPQ Merger Sub, Inc. - Unfunded Term Loan	06/15/2029	Professional Services		—			—		1,146		—		—
HPA SPQ Merger Sub, Inc (Revolver) (7), (9)	06/15/2029	Professional Services		—			—		860		—		—
HW Holdco, LLC	12/10/2024	Media		10.99	%	1M L+585			9,000		8,967		8,865
HW Holdco, LLC (Revolver) (7), (9)	12/10/2024	Media		—			—		1,452		—		(22	)
IDC Infusion Services, Inc.	12/30/2026	Healthcare Equipment and Supplies		12.13	%	3M L+700			5,680		5,579		5,680
IDC Infusion Services, Inc. (Revolver) (9)	12/30/2026	Healthcare Equipment and Supplies		—			—		4,167		—		—
IG Investments Holdings, LLC (7)	09/22/2028	Professional Services		11.17	%	3M L+600			4,439		4,364		4,373
IG Investments Holdings, LLC (Revolver) (7), (9)	09/22/2027	Professional Services		—			—		477		—		(7	)
Imagine Acquisitionco, LLC (9)	11/15/2027	Software		—			—		1,657		—		(25	)
Imagine Acquisitionco, LLC (Revolver) (9)	11/15/2027	Software		—			—		1,193		—		(30	)
Inception Fertility Ventures, LLC	12/31/2024	Healthcare Providers and Services		12.50	%	3M L+715			14,866		14,685		14,717
Infinity Home Services Holdco, Inc.	12/28/2028	Commercial Services & Supplies		11.98	%	3M L+685			1,751		1,751		1,751
Infinity Home Services Holdco, Inc. - Unfunded Term Loan	12/28/2023	Commercial Services & Supplies		—			—		1,477		—		—
Infinity Home Services Holdco, Inc. (Revolver)	12/28/2028	Commercial Services & Supplies		14.00	%	3M L+575			65		65		65
Infinity Home Services Holdco, Inc. (Revolver) (9)	12/28/2028	Commercial Services & Supplies		—			—		1,227		—		—
Infolinks Media Buyco, LLC	11/01/2026	Media		10.70	%	3M L+550			3,186		3,145		3,186
Infolinks Media Buyco, LLC (9)	11/01/2023	Media		—			—		387		—		4
Integrative Nutrition, LLC	09/29/2023	Consumer Services		12.39	%	3M L+700			15,485		15,476		14,711
Integrity Marketing Acquisition, LLC (7)	08/27/2025	Insurance		11.41	%	SOFR+550			15,705		15,608		15,548
ITI Holdings, Inc. (Revolver)	03/03/2028	IT Services		11.92	%	3M L+560			553		553		539
ITI Holdings, Inc. (Revolver) (9)	03/03/2028	IT Services		—			—		112		—		(3	)
Inventus Power, Inc.	06/30/2025	Electronic Equipment, Instruments, and Components		12.72	%	3M L+761			13,267		13,002		13,002
Inventus Power, Inc. (Revolver) (7), (9)	06/30/2025	Electronic Equipment, Instruments, and Components		—			—		1,729		—		—
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		11.39	%	3M L+600			17,297		17,029		17,037
Kinetic Purchaser, LLC - (Revolver)	11/10/2026	Personal Products		11.39	%	3M L+600			3,091		3,091		3,045
Kinetic Purchaser, LLC - (Revolver) (9)	11/10/2026	Personal Products		—			—		343		—		(5	)
Lash OpCo, LLC	02/18/2027	Personal Products		12.13	%	1M L+700			10,431		10,279		10,274
Lash OpCo, LLC (Revolver) (7)	08/16/2026	Personal Products		12.17	%	1M L+700			1,272		1,272		1,253
Lash OpCo, LLC (Revolver) (7), (9)	08/16/2026	Personal Products		—					648		—		(10	)
LAV Gear Holdings, Inc.	10/31/2024	Capital Equipment		11.68	%	1M L+625			7,563		7,554		7,464
			(PIK 5.50%)
LAV Gear Holdings, Inc. (Revolver) (7)	10/31/2024	Capital Equipment		10.70	%	1M L+565			1,721		1,721		1,698
			(PIK 5.50%)
Ledge Lounger, Inc.	11/09/2026	Leisure Products		11.64	%	3M L+625			3,719		3,678		3,644
Ledge Lounger, Inc. (Revolver) (9)	11/09/2026	Leisure Products		—			—		789		—		(16	)
Lightspeed Buyer Inc.	02/03/2026	Healthcare Technology		10.45	%	1M L+575			22,601		22,316		22,262
Lightspeed Buyer Inc. (Revolver) (7) (9)	02/03/2026	Healthcare Technology		—			—		2,499		—		(37	)
LJ Avalon Holdings, LLC - Unfunded Term Loan	07/31/2024	Construction & Engineering		—			—		2,824		—		(14	)
LJ Avalon Holdings, LLC (Revolver) (9)	01/31/2030	Construction & Engineering		—			—		1,130		—		(23	)
Loving Tan Intermediate II, Inc.	05/31/2028	Personal Products		12.26	%	3M L+700			19,311		18,928		18,925
Loving Tan Intermediate II, Inc. (Revolver)(7)(9)	05/31/2028	Personal Products		—			—		3,384		—		(68	)
Lucky Bucks, LLC (6)	07/20/2027	Hotels, Restaurants and Leisure		0.00	%		—		4,489		4,210		1,194
Lucky Bucks, LLC - DIP	10/20/2023	Hotels, Restaurants and Leisure		15.15	%	3M L+1000			115		102		101
MAG DS Corp.	04/01/2027	Aerospace and Defense		10.84	%	1M L+550			3,684		3,566		3,453
Mars Acquisition Holdings Corp.	05/14/2026	Media		10.89	%	3M L+550			8,750		8,628		8,662
Mars Acquisition Holdings Corp. (Revolver)(7)(9)	05/14/2026	Media		—			—		2,435		—		(24	)
MBS Holdings, Inc. (Revolver)	04/16/2027	Internet Software and Services		10.93	%	3M L+575			185		185		183
MBS Holdings, Inc. (Revolver)(7)(9)	04/16/2027	Internet Software and Services		—			—		972		—		(10	)
MDI Buyer, Inc.	07/25/2028	Commodity Chemicals		10.84	%	3M L+600			2,046		2,007		2,002
MDI Buyer, inc. (Revolver) (7)	07/25/2028	Commodity Chemicals		11.00	%	3M L+600			361		361		353
MDI Buyer, inc. (Revolver) (9)	07/25/2028	Commodity Chemicals		—			—		412		—		(5	)
Meadowlark Acquirer, LLC	12/10/2027	Professional Services		10.89	%	3M L+550			1,983		1,965		1,944
Meadowlark Acquirer, LLC - Term Loan I (9)	12/10/2027	Professional Services		—			—		1,103		—		(11	)
Meadowlark Acquirer, LLC - Term Loan II (9)	12/10/2027	Professional Services		—			—		9,483		—		(95	)
Meadowlark Acquirer, LLC (Revolver) (9)	12/10/2027	Professional Services		—			—		1,693		—		(34	)
Mission Critical Electronics, Inc.	03/28/2024	Capital Equipment		10.29	%	SOFR +500			3,589		3,571		3,560
Mission Critical Electronics, Inc. (9)	03/28/2024	Capital Equipment		—			—		707		—		(3	)
Mission Critical Electronics, Inc. (Revolver) (7), (9)	03/28/2024	Capital Equipment		—			—		1,325		—		(11	)
Municipal Emergency Services, Inc.	10/01/2027	Distributors		10.86	%	3M L+550			1,184		1,145		1,142
Municipal Emergency Services, Inc. - Unfunded Term Loan A	06/16/2023	Distributors		—			—		387		—		(14	)
Municipal Emergency Services, Inc. - Unfunded Term Loan B	12/16/2024	Distributors		—			—		1,264		—		(44	)
Municipal Emergency Services, Inc. (Revolver) (7)	10/01/2027	Distributors		10.89	%	3M L+615			568		568		548
Municipal Emergency Services, Inc. (Revolver) (7), (9)	10/01/2027	Distributors		—			—		379		—		(13	)
Neptune Flood Incorporated - Revolver Unfunded	05/09/2029	Insurance		—					541		—		(8	)
NBH Group LLC (Revolver) (7), (9)	08/19/2026	Healthcare Equipment and Supplies		—			—		1,677		—		(17	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

JUNE 30, 2023

(in thousands, except share data)

(Unaudited)


Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (1)		Par / Shares		Cost		Fair Value (2)
One Stop Mailing, LLC	05/07/2027	Air Freight and Logistics		11.44	%	3M L+625			8,538	$	8,413	$	8,538
ORL Acquisition, Inc. (7)	09/03/2027	Consumer Finance		10.84	%	3M L+525			4,913		4,837		4,667
ORL Acquisition, Inc. (Revolver) (7), (9)	09/03/2027	Consumer Finance		—			—		861		—		(43	)
Output Services Group, Inc. (6)	06/27/2026	Business Services		0.00	%		—		4,904		4,469		1,226
Owl Acquisition, LLC	02/04/2028	Professional Services		10.80	%	3M L+575			3,893		3,793		3,815
Ox Two, LLC	05/18/2026	Construction and Building		12.75	%	1M L+725			22,736		22,495		22,282
Ox Two, LLC (Revolver) (7)	05/18/2026	Construction and Building		12.76	%	1M L+725			1,581		1,581		1,549
Ox Two, LLC (Revolver) (9)	05/18/2026	Construction and Building		—			—		1,806		—		(36	)
Pequod Merger Sub, Inc. - Unfunded Term Loan	12/02/2026	Diversified Financial Services		—			—		2,847		—		(57	)
Pequod Merger Sub, Inc (Revolver) (9)	12/02/2026	Diversified Financial Services		—			—		757		—		(15	)
PL Acquisitionco, LLC	11/09/2027	Textiles, Apparel and Luxury Goods		12.20	%	3M L+650			5,562		5,485		5,062
PL Acquisitionco, LLC - (Revolver) (9)	11/09/2027	Textiles, Apparel and Luxury Goods		—			—		2,290		—		(206	)
PlayPower, Inc.	05/08/2026	Leisure Products		10.57	%	1M L+550			3,411		3,394		3,189
Pragmatic Institute, LLC - Unfunded Term Loan	07/06/2028	Professional Services		—			—		2,290		—		(11	)
Pragmatic Institute, LLC (Revolver)	07/06/2028	Professional Services		11.01	%	3M L+575			305		305		301
Pragmatic Institute, LLC (Revolver) (9)	07/06/2028	Professional Services		—			—		1,221		—		(18	)
Quantic Electronics, LLC	11/19/2026	Electronic Equipment, Instruments, and Components		11.22	%	1M L+600			6,664		6,589		6,564
Quantic Electronics, LLC - Unfunded Term Loan	11/19/2026	Electronic Equipment, Instruments, and Components		—			—		783		—		(4	)
Quantic Electronics, LLC (Revolver) (7)	11/19/2026	Electronic Equipment, Instruments, and Components		11.30	%	1M L+600			670		670		660
Questex, LLC	09/09/2024	Media: Diversified and Production		10.51	%	3M L+500			7,069		7,036		7,033
Questex, LLC (Revolver) (7), (9)	09/09/2024	Media: Diversified and Production		—			—		1,197		—		(6	)
Rancho Health MSO, Inc. (Revolver) (7), (9)	12/18/2025	Healthcare Equipment and Supplies		—			—		525		—		—
Recteq, LLC	01/29/2026	Leisure Products		12.39	%	3M L+700			1,466		1,450		1,408
Recteq, LLC (Revolver) (7), (9)	01/29/2026	Leisure Products		—			—		1,296		—		(52	)
Research Now Group, Inc. and Dynata, LLC	12/20/2024	Business Services		10.80	%	3M L+550			17,007		16,902		11,995
Riverpoint Medical, LLC	06/20/2025	Healthcare Equipment and Supplies		10.11	%	3M L+575			7,960		7,918		7,816
Riverpoint Medical, LLC (Revolver) (7)	06/20/2025	Healthcare Equipment and Supplies		10.19	%	3M L+500			91		91		89
Riverpoint Medical, LLC (Revolver) (7), (9)	06/20/2025	Healthcare Equipment and Supplies		—			—		818		—		(15	)
Riverside Assessments, LLC	03/10/2025	Professional Services		11.14	%	3M L+625			15,238		15,095		15,010
Sales Benchmark Index LLC	01/03/2025	Professional Services		11.44	%	3M L+600			2,596		2,578		2,583
Sales Benchmark Index LLC (Revolver) (7), (9)	01/03/2025	Professional Services		—			—		1,293		—		(6	)
Sargent & Greenleaf Inc.	12/20/2024	Electronic Equipment, Instruments, and Components		12.77	%	1M L+750			3,467		3,451		3,416
Sargent & Greenleaf Inc. (Revolver)	12/20/2024	Electronic Equipment, Instruments, and Components		12.77	%	1M L+750			437		437		431
Sargent & Greenleaf Inc. (Revolver) (9)	12/20/2024	Electronic Equipment, Instruments, and Components		—