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MIAMI - PennantPark Floating Rate Capital Ltd. (NYSE: NYSE:PFLT), a business development company with a market capitalization of $981 million, has declared a monthly distribution of $0.1025 per share for March 2025. The payment is scheduled for April 1, 2025, to shareholders on record as of March 14, 2025. According to InvestingPro data, the company maintains an impressive 10.9% dividend yield and has consistently paid dividends for 15 consecutive years. The company announced that the distribution is anticipated to be derived from taxable net investment income.
The final tax characteristics of the distribution will be detailed to shareholders on Form 1099 after the year’s end and in the company’s periodic report to the Securities and Exchange Commission. PennantPark operates as a regulated investment company (RIC) and generates qualified interest income and short-term capital gains. This income may be exempt from U.S. withholding tax for non-U.S. stockholders who provide the necessary documentation.
PennantPark Floating Rate Capital primarily invests in floating rate senior secured loans to U.S. middle-market private companies, including first lien secured debt, second lien secured debt, and subordinated debt. Occasionally, the company may make equity investments. The company demonstrates strong financial health with a current ratio of 3.94 and has achieved significant revenue growth of 47.6% over the last twelve months. Managed by PennantPark Investment Advisers, LLC, the company is part of a larger credit platform that oversees $9.5 billion in investable capital, which includes potential leverage. InvestingPro analysis reveals 8 additional key insights about PFLT’s financial performance and market position, available to subscribers.
PennantPark Investment Advisers has been providing middle market credit solutions since 2007, offering financing options to private equity firms, their portfolio companies, and other middle-market borrowers. Headquartered in Miami, the firm also operates out of New York, Chicago, Houston, Los Angeles, and Amsterdam.
The press release contains forward-looking statements, which are not guarantees of future performance and involve risks and uncertainties. Trading at a P/E ratio of 8.16, the stock has demonstrated relatively stable performance, with four analysts recently revising their earnings expectations upward. The company cautions that actual results may differ from those projected in the forward-looking statements due to various factors, which are detailed in filings with the Securities and Exchange Commission. For comprehensive analysis and detailed insights, investors can access PFLT’s complete financial health assessment through InvestingPro’s exclusive Research Report, part of their coverage of over 1,400 US equities. PennantPark Floating Rate Capital does not undertake the duty to update any forward-looking statements.
Investors and stockholders are reminded that the information provided is based on current tax laws, which are subject to change. The company does not accept responsibility for any losses resulting from the application of this information and advises consulting with professionals for legal, tax, or accounting advice. This announcement is based on a press release statement from PennantPark Floating Rate Capital Ltd.
In other recent news, PennantPark Floating Rate Capital Ltd reported its fourth-quarter 2024 earnings, surpassing analyst expectations with a net investment income of $0.37 per share, compared to a forecast of $0.32. The company’s revenue also exceeded projections, reaching $67.01 million against an anticipated $59.35 million. The firm’s portfolio grew by 11% to $2.2 billion, driven by new investments totaling $600-$700 million across 69 portfolio companies. PennantPark’s strategic focus on middle market lending and successful exits, such as its investment in Marketplace Events, contributed to its strong results, with the exit generating a 2.6x multiple on invested capital.
Additionally, PennantPark plans to expand its joint venture, the PennantPark Senior Secured Loan Fund, to $1.5 billion over the next 9-12 months. This expansion aligns with the company’s focus on sectors like healthcare, government services, and technology. The company has also been active in the securitization market, recently pricing a $361 million term debt securitization transaction. This financing is expected to close by early March, reflecting a favorable market environment.
Furthermore, PennantPark’s credit quality remains strong, with non-accruals representing only 0.4% of the portfolio cost and 0.1% at market value. The company’s debt to equity ratio stands at 1.4x, and the portfolio’s weighted average leverage ratio is 4.3 times. Analysts from Raymond (NSE:RYMD) James have noted the company’s strategic focus and risk management practices during recent earnings calls.
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