PennantPark Completes PennantPark CLO IX, LLC, Continuing the Growth of PennantPark’s CLO Platform
“This transaction reinforces PennantPark’s ability to access attractive, long-term financing well matched to the lower risk nature of the underlying assets we originate.
MIAMI, April 01, 2024 (GLOBE NEWSWIRE) -- PennantPark Investment Advisers, LLC announced the final close of a term debt securitization transaction with a two-year reinvestment period, ten-year final maturity in the form of a collateralized loan obligation (“CLO”) for PennantPark Senior Credit Fund Levered LP (the “Fund”).
The debt issued in the CLO (the “Debt”) is structured in the following manner:
| Class | Par Amount ($ in millions) |
% of Capital Structure | Coupon | Expected Rating (S&P) |
Issuance Price |
| A-1 Notes | 174,000,000 | 58.2% | 3 Mo SOFR + 1.98% | AAA | 100.0% |
| A-2 Notes | 9,000,000 | 3.0% | 3 Mo SOFR + 2.35% | AAA | 100.0% |
| B Loans | 15,000,000 | 5.0% | 3 Mo SOFR + 2.60% | AA | 100.0% |
| B Notes | 12,000,000 | 5.0% | 3 Mo SOFR + 2.60% | AA | 100.0% |
| C Notes | 21,000,000 | 7.0% | 3 Mo SOFR + 3.30% | A | 100.0% |
| Sub Notes | 67,885,000 | 22.8% | NR | NA | |
| Total | $298,885,000 | ||||
“I am extremely pleased with the pricing and structure of our ninth CLO, which highlights the track record and the strength of our investment platform,” said Arthur Penn, Chief Executive Officer. “This transaction reinforces PennantPark’s ability to access attractive, long-term financing well matched to the lower risk nature of the underlying assets we originate. With the closing of PennantPark CLO IX, PennantPark now manages approximately $2.8 billion in CLO assets, and we look forward to continued growth with the support of our current and new investors.”
The Fund will retain all the Subordinated Notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2026 and the Debt is scheduled to mature in April 2034. The term debt securitization is expected to be approximately 100% funded at close. The proceeds from the Debt will be used to repay a portion of the Fund’s $250 million secured credit facility. In addition, the Fund acts as retention holder in the transaction to retain exposure to the performance of the securitized assets. CIBC World Markets Corp. acted as lead placement agent on the CLO transaction.
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. The CLO is a form of secured financing incurred and consolidated by the Fund. 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.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing approximately $7.2 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC 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 Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, and Amsterdam.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Investment Advisers, LLC
(212) 905-1000
www.pennantpark.com
Source: PennantPark Investment Advisers, LLC
