Street Calls of the Week
MIAMI - PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), a business development company with a market capitalization of $1.01 billion, has acquired a portfolio of approximately $250 million in assets from TSO Puma SPV, LLC, an affiliate of Towerbrook Capital Partners, the company announced Tuesday.
The acquisition comes as part of the winding down of PennantPark-TSO Senior Loan Fund, LP, an unconsolidated limited partnership. The company acquired these assets at their most recent fair market value, with average spread and credit statistics generally in line with PFLT’s existing portfolio.
Art Penn, Chairman and CEO of PennantPark, stated that the acquisition would "help optimize our portfolio and will be accretive to net investment income by approximately two cents per share per quarter."
The acquired portfolio includes assets that the company’s investment adviser is already familiar with, according to the press release statement.
PennantPark Floating Rate Capital Ltd. operates as a business development company primarily investing in U.S. middle-market private companies through floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt.
The company is managed by PennantPark Investment Advisers, LLC, a middle market credit platform that manages approximately $10 billion of investable capital, including potential leverage.
In other recent news, PennantPark Floating Rate Capital reported its third-quarter 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.27, missing the forecasted $0.29. Additionally, revenue came in at $63.5 million, below the projected $66.04 million. JMP Securities has reiterated its Market Outperform rating for the company, maintaining a price target of $11.00 per share, despite reducing its fiscal year 2025 EPS estimate to $1.15 from $1.20 due to a projected shortfall in the third quarter. Meanwhile, Keefe, Bruyette & Woods lowered its price target for PennantPark Floating Rate Capital to $10.50 from $11.00, while maintaining a Market Perform rating. KBW noted a mixed quarter for the company, highlighting an earnings miss and slight portfolio depreciation, although it recognized a decline in non-accruals during the period. These developments reflect the recent challenges and adjustments faced by PennantPark Floating Rate Capital.
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