Dec 31, 2024

PennantPark Floating Rate Q1 2025 Earnings Report

Expected Revenue:$59.5M
+69.9% YoY
Expected EPS:$0.31
0.0% YoY

Key Takeaways

PennantPark Floating Rate Capital Ltd. reported a solid performance for the first quarter ended December 31, 2024, with net investment income totaling $30.0 million, or $0.37 per share, compared to $19.4 million, or $0.33 per share, for the same period in 2023. The company's portfolio totaled $2,193.9 million, with a weighted average yield on debt investments of 10.6%.

Portfolio totaled $2,193.9 million as of December 31, 2024.

Net investment income totaled $30.0 million, or $0.37 per share.

Invested $606.9 million in 11 new and 58 existing portfolio companies.

Weighted average yield on debt investments was 10.6%.

Total Revenue
$93.6M
Previous year: $38M
+146.5%
Weighted Average Yield on Debt
10.6%
Previous year: 12.5%
-15.2%
Cash and Equivalents
$102M
Previous year: $75.8M
+35.0%
Free Cash Flow
-$27.1M
Previous year: $16.9M
-260.3%
Total Assets
$2.19B
Previous year: $1.27B
+72.6%

PennantPark Floating Rate

PennantPark Floating Rate

Forward Guidance

In February 2025, the Company priced a new securitization financing that is expected to close by early March.

Positive Outlook

  • New financing is a $361 million term debt securitization transaction with a weighted average spread of 1.59%.
  • The weighted average spread of 1.59% is a decrease of 30 basis points from an existing securitization financing that we refinanced in July 2024.
  • Securitization financing continues to be a good match for our lower risk first lien assets.
  • Securitizations are attractive financing structures as they have a 12 year stated maturity and generally have 4 to 5 year reinvestment periods.
  • Securitizations are non mark to market financings regardless of broader market volatility.