Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to us and our consolidated subsidiaries regarding future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Report involve risks and uncertainties, including statements as to:
our future operating results;
our business prospects and the prospects of our prospective portfolio companies;
changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of our assets;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
the impact of a protracted decline in the liquidity of credit markets on our business;
the impact of investments that we expect to make;
the impact of fluctuations in interest rates and foreign exchange rates on our business and our portfolio companies;
our contractual arrangements and relationships with third parties;
the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
the ability of our prospective portfolio companies to achieve their objectives;
our expected financings and investments and ability to fund capital commitments to PSSL;
the adequacy of our cash resources and working capital;
the timing of cash flows, if any, from the operations of our prospective portfolio companies;
the impact of price and volume fluctuations in the stock market;
increasing levels of inflation, and its impact on us and our portfolio companies;
the ability of our Investment Adviser to locate suitable investments for us and to monitor and administer our investments;
the impact of future legislation and regulation on our business and our portfolio companies;
the impact of the ongoing invasion of Ukraine by Russia other world economic and political issues; and
the inability to develop and maintain effective internal control over financial reporting.
We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. You should not place undue influence on the forward-looking statements as our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors in “Risk Factors” and elsewhere in this Report.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved.
We have based the forward-looking statements included in this Report on information available to us on the date of this Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including reports on Form 10-Q/K and current reports on Form 8-K.
You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.
The following analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related notes thereto contained elsewhere in this Report.
Overview
PennantPark Floating Rate Capital Ltd. is a BDC whose objectives are to generate both current income and capital appreciation while seeking to preserve capital by investing primarily in floating rate loans and other investments made to U.S. middle-market companies.
We believe that floating rate loans to U.S. middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies. We use the term “middle-market” to refer to companies with annual revenues between $50 million and $1 billion. Our investments are typically rated below investment grade. Securities rated below investment grade are often referred to as “leveraged loans”, “high yield” securities or “junk bonds” and are often higher risk
compared to debt instruments that are rated above investment grade and have speculative characteristics. However, when compared to junk bonds and other non-investment grade debt, senior secured floating rate loans typically have more robust capital-preserving qualities, such as historically lower default rates than junk bonds, represent the senior source of capital in a borrower’s capital structure and often have certain of the borrower’s assets pledged as collateral. Our debt investments may generally range in maturity from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions.
Under normal market conditions, we generally expect that at least 80% of the value of our managed assets will be invested in floating rate loans and other investments bearing a variable-rate of interest. We generally expect that first lien secured debt will represent at least 65% of our overall portfolio. We also generally expect to invest up to 35% of our overall portfolio opportunistically in other types of investments, including second lien secured debt and subordinated debt and, to a lesser extent, equity investments. We seek to create a diversified portfolio by generally targeting an investment size between $5 million and $30 million, on average, although we expect that this investment size will vary proportionately with the size of our capital base.
Our investment activity depends on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives.
Organization and Structure of PennantPark Floating Rate Capital Ltd.
PennantPark Floating Rate Capital Ltd., a Maryland corporation organized in October 2010, is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. In addition, for federal income tax purposes we elected to be treated, and intend to qualify annually, as a RIC under the Code.
Our investment activities are managed by the Investment Adviser. Under our Investment Management Agreement, we have agreed to pay our Investment Adviser an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. We have also entered into an Administration Agreement with the Administrator. Under our Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. Our board of directors, a majority of whom are independent of us, provides overall supervision of our activities, and the Investment Adviser supervises our day-to-day activities.
At-the-Market Offering
On August 20, 2021, we entered into equity distribution agreements (the "2021 Equity Distribution Agreements") with each of JMP Securities LLC and Raymond James & Associates, Inc., as the sales agents, in connection with the sale of shares of our common stock, with an aggregate offering price of up to $75 million under an at-the-market offering. The 2021 Equity Distribution Agreements provided that we may offer and sell shares of our common stock from time to time through a sales agent in amounts and at times to be determined by us. On May 5, 2022, we amended the 2021 Equity Distribution Agreements to update references from NASDAQ to NYSE and reflect that the Sales Agents were represented by Kirkland & Ellis LLP. On March 27, 2023 we terminated the 2021 Equity Distribution Agreements and entered into new equity distribution agreements with Citizens JMP Securities LLC, Raymond James & Associates, Inc. and Truist Securities, Inc. ( the "2023 Equity Distribution Agreements"), as sales agents (each as "Sales Agent," and collectively, the "Sales Agents") in connection with the sale of shares of our common stock, with an aggregate offering price of up to $100 million under an at-the-market program (the "2023 ATM Program"). On August 11, 2023, we amended the 2023 Equity Distribution Agreements with each of the Sales Agents to increase the aggregate offering price to up to $250 million. On July 17, 2024 we terminated the 2023 Equity Distribution Agreement and entered into new equity distribution agreements with the Sales Agents (collectively, the " 2024 Equity Distribution Agreements") in connection with the sale of our shares of common stock with an aggregate offering price of up to $500 million under an ATM Program (the "2024 ATM Program"). The 2024 Equity Distribution Agreements provide that we may offer and sell shares of our common stock from time to time through a Sales Agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including, market conditions and the trading price of our common stock. The Investment Adviser may, from time to time, in its sole discretion, pay some or all of the commissions payable under the 2024 Equity Distribution Agreements or make additional supplemental payments to ensure that the sales price per share of our common stock in connection with all of the offerings made hereunder will not be less than our current NAV per share. Any such payments made by the Investment Adviser will not be subject to reimbursement by us.
Revenues
We generate revenue in the form of interest income on the debt securities we hold and capital gains and dividends, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of first lien secured debt, second lien secured debt or subordinated debt, typically have a term of three to ten years and bear interest at a floating or fixed rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, our investments provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally becomes due at the maturity date. In addition, we may generate revenue in the form of amendment, commitment, origination, structuring or diligence fees, fees for providing significant managerial assistance and possibly consulting fees. Loan origination fees, OID and market discount or premium are capitalized and accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which may or may not be non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees and agency fees, and are recorded as other investment income when earned. settlements are accounted for in accordance with the contingency provisions of ASC Subtopic 450-30, Contingencies, or ASC 450-30.
Expenses
Our primary operating expenses include the payment of a management fee and the payment of an incentive fee to our Investment Adviser, if any, our allocable portion of overhead under our Administration Agreement and other operating costs as detailed below. Our management fee compensates our Investment Adviser for its work in identifying, evaluating, negotiating, consummating and monitoring our investments. Additionally, we pay interest expense on the outstanding debt and unused commitment fees on undrawn amounts under our various debt facilities. We bear all other direct or indirect costs and expenses of our operations and transactions, including:
the cost of calculating our NAV, including the cost of any third-party valuation services;
the cost of effecting sales and repurchases of shares of our common stock and other securities;
fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence and reviews of prospective investments or complementary businesses;
expenses incurred by the Investment Adviser in performing due diligence and reviews of investments, including expenses incurred by the Investment Adviser payable to third parties (including agents and consultants) in monitoring financial and legal affairs for the Company and in monitoring the Company’s investments;
transfer agent and custodial fees;
fees and expenses associated with marketing efforts;
federal and state registration fees and any exchange listing fees;
federal, state, local and foreign taxes;
independent directors’ fees and expenses;
brokerage commissions;
fidelity bond, directors and officers, errors and omissions liability insurance and other insurance premiums;
direct costs such as printing, mailing, long distance telephone and staff;
fees and expenses associated with independent audits and outside legal costs;
costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and
all other expenses incurred by either the Administrator or us in connection with administering our business, including payments under our Administration Agreement that will be based upon our allocable portion of overhead, and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.
Generally, during periods of asset growth, we expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities would be additive to the expenses described above.
PORTFOLIO AND INVESTMENT ACTIVITY
As of September 30, 2025, our portfolio totaled $2,773.3 million and consisted of $2,513.6 million of first lien secured debt (including $237.7 million in PSSL), $19.0 million of second lien secured debt and subordinated debt and $240.7 million of preferred and common equity (including $44.3 million in PSSL). Our debt portfolio consisted of approximately 99% variable-rate investments. As of September 30, 2025, we had three portfolio companies on non-accrual, representing 0.4% and 0.2% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $46.1 million. Our overall portfolio consisted of 164 companies with an average investment size of $16.9 million, had a weighted average yield on debt investments of 10.2%, and was invested 90% in first lien secured debt (including 9% in PSSL), 1% in second lien secured debt and subordinated debt and 9% in preferred and common equity (including 2% in PSSL). As of September 30, 2025, over 98% of the investments held by PSSL were first lien secured debt.
As of September 30, 2024, our portfolio totaled $1,983.5 million and consisted of $1,746.7 million of first lien secured debt (including $237.7 million in PSSL), $2.7 million of second lien secured debt and $234.1 million of preferred and common equity (including $56.5 million in PSSL). Our debt portfolio consisted of approximately 100% variable-rate investments. As of September 30, 2024, we had two portfolio companies on non-accrual, representing 0.4% and 0.2% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $11.4 million. Our overall portfolio consisted of 158 companies with an average investment size of $12.6 million, had a weighted average yield on debt investments of 11.5%, and was invested 88% in first lien secured debt (including 12% in PSSL), less than 1% in second lien secured debt and subordinated debt and 12% in preferred and common equity (including 3% in PSSL). As of September 30, 2024, over 99% of the investments held by PSSL were first lien secured debt.
For the year ended September 30, 2025, we invested $1,741.3 million in 29 new and 205 existing portfolio companies with a weighted average yield on debt investments of 10.3%. Sales and repayments of investments for the same period totaled $925.7 million.
For the year ended September 30, 2024, we invested $1,407.5 million in 43 new and 91 existing portfolio companies with a weighted average yield on debt investments of 11.4%. Sales and repayments of investments for the same period totaled $514.1 million.
PennantPark Senior Secured Loan Fund I LLC
As of September 30, 2025, PSSL’s portfolio totaled $1,084.6 million, consisted of 117 companies with an average investment size of $9.3 million and had a weighted average yield on debt investments of 10.1%. As of September 30, 2024, PSSL’s portfolio totaled $913.3 million, consisted of 109 companies with an average investment size of $8.4 million and had a weighted average yield on debt investments of 11.4%.
For the year ended September 30, 2025, PSSL invested $425.9 million (of which $379.7 million was purchased from the Company) in 28 new and 26 existing portfolio companies with a weighted average yield on debt investments of 10.2%. PSSL’s sales and repayments of investments for the same period totaled $228.2 million.
For the year ended September 30, 2024, PSSL invested $286.2 million (of which $253.6 million was purchased from the Company) in 24 new and 36 existing portfolio companies with a weighted average yield on debt investments of 11.7%. PSSL’s sales and repayments of investments for the same period totaled $160.1 million.
PennantPark Senior Secured Loan Fund II LLC
On August 8, 2025, the Company, and a fund managed by HL entered into an amended and restated limited liability company agreement (the "HL LLC Agreement") to co-manage a newly-formed joint venture, PennantPark Senior Secured Loan Fund II LLC. PSSL II is expected to invest primarily in middle market loans and other corporate debt securities.
The Company and HL have committed to invest up to $200.0 million in the aggregate in PSSL II, with the Company committing to invest up to $150.0 million and HL committing to invest up to $50.0 million. Investments by each of the Company and HL will be made in the form of membership interests and secured notes. All portfolio
and other material decisions regarding PSSL II must be submitted to its board of managers, which is comprised of an equal number of representatives from each of the Company and HL. Further, all portfolio and other material decisions require the affirmative vote of at least one board member designated by the Company and one board member from HL.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Actual results could differ from these estimates due to changes in the economic and regulatory environment, financial markets and any other parameters used in determining such estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to ASC serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued. In addition to the discussion below, we describe our critical accounting policies in the notes to our Consolidated Financial Statements.
Investment Valuations
We expect that there may not be readily available market values for many of our investments which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that the board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material.
Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:
Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of our Investment Adviser;
Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
The audit committee of our board of directors reviews the valuations of our Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and
Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.
Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.
Fair value, as defined under ASC 820, is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.
ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.
Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets, or that are quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term, if applicable, of the financial instrument.
Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, our 2036 Asset-Backed Debt, 2036-R Asset-Backed Debt, 2037 Asset-Backed Debt and the Credit Facility are classified as Level 3. Our 2026 Notes are classified as Level 2 as they are financial instruments with readily observable market inputs. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.
On December 3, 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The new rule clarifies how fund boards of directors can satisfy their valuation obligations and requires, among other things, the board of directors to periodically assess material valuation risks and take steps to manage those risks. The rule also permit boards of directors, subject to board oversight and certain other conditions, to designate the fund’s investment adviser to perform fair value determinations. The new rule went into effect on March 8, 2021 and had a compliance date of September 8, 2022. We came into compliance with Rule 2a-5 under the 1940 Act before the compliance date. While our board of directors has not elected to designate the Investment Adviser as the valuation designee at this time, we have adopted certain revisions to our valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 under the 1940 Act.
In addition to using the above inputs to value cash equivalents, investments, our 2026 Notes, our 2036-R Asset-Backed Debt, our 2036 Asset-Backed Debt, our 2037 Asset-Backed Debt and the Credit Facility, we employ the valuation policy approved by our board of directors that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value.
Generally, the carrying value of our consolidated financial liabilities approximates fair value. We have adopted the principles ASC Subtopic 825-10, Financial Instruments, or ASC 825-10, which provides companies with an option to report selected financial assets and liabilities at fair value, and made an irrevocable election to apply ASC 825-10 to the Credit Facility and the 2023 Notes. We elected to use the fair value option for the Credit Facility and the 2023 Notes to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we incurred expenses of $3.3 million and $6.5 million relating to amendment costs on the Credit Facility and debt issuance costs on the 2023 Notes during the years ended September 30, 2025 and 2024, respectively. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets and Liabilities and changes in fair value of the Credit Facility and the 2023 Notes are reported in our Consolidated Statements of Operations. We elected not to apply ASC 825-10 to any other financial assets or liabilities, including the 2026 Notes, 2036-R Asset-Backed Debt, 2036 Asset-Backed Debt and the 2037 Asset-Backed Debt.
For the years September 30, 2025 and 2024, the Credit Facility or our Prior Credit Facility, as applicable, the 2023 Notes had a net change in unrealized appreciation (depreciation) of approximately zero and zero, respectively. As of September 30, 2025 and 2024, the net unrealized depreciation on the Credit Facility and the 2023 Notes totaled approximately zero and zero, respectively. We use a nationally recognized independent valuation service to measure the fair value of the Credit Facility and 2023 Notes in a manner consistent with the valuation process that our board of directors uses to value our investments.
Revenue Recognition
We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.
Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation
We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in the fair values of our portfolio investments, the Credit Facility, the 2023 Notes during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.
Foreign Currency Translation
Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.
Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair value of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.
Payment-in-kind, or PIK, Interest
We have investments in our portfolio which contain a PIK interest provision. PIK interest is added to the principal balance of the investment and is recorded as income. In order for us to maintain our ability to be subject to tax as a RIC, substantially all of this income must be paid out to stockholders in the form of dividends for U.S. federal income tax purposes, even though we may not have collected any cash with respect to interest on PIK securities.
Federal Income Taxes
We have elected to be treated, and intend to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements. We also must annually distribute dividends for federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, determined without regard to any deduction for dividends paid.
Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year of an amount at least equal to the s um of (1) 98% of our net ordinary income (subject to certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain net income (i.e., the excess, if any, of our capital gains over capital losses), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of the calendar year plus (3) any net ordinary income or capital gain net income for the preceding years that was not distributed during such years on which we did not incur any corporate income tax, or the Excise Tax Avoidance
Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, subject to maintaining our ability to be taxed as a RIC, in order to provide us with additional liquidity.
Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gain recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.
For the years ended September 30, 2025, 2024 and 2023, the Company recorded a provision for taxes on net investment income of $0.9 million, $1.1 million, and $1.0 million, respectively, pertaining to federal excise tax.
The Taxable Subsidiary is subject to U.S. federal, state and local corporate income taxes. The income tax expense and related tax liabilities of the Taxable Subsidiary are reflected in the Company’s consolidated financial statements.
For the years ended September 30, 2025, 2024 and 2023, the Company recognized a provision for taxes of $(0.2) million, $0.1 million and $2.8 million, respectively, on unrealized appreciation (depreciation) on investments by the Taxable Subsidiary. The provision for taxes on unrealized appreciation on investments is the result of netting (i) the expected tax liability on gains from sales of investments and (ii) the expected tax benefit from the use of losses in the current year. As of September 30, 2025 and 2024, $1.9 million and $1.7 million, respectively, was accrued as a deferred tax liability on the Consolidated Statements of Assets and Liabilities relating to unrealized gain on investments held by the Taxable Subsidiary. As of September 30, 2025 and 2024, of $0.1 million and $0.1 million, respectively, the Company recognized a provision for taxes on realized gain on investments held by the Taxable Subsidiary.
During the year ended September 30, 2025, 2024 and 2023 the Company paid zero, zero, and zero million, respectively, in federal taxes on realized gains on the sale of investments held by the Taxable Subsidiary. The state and local tax liability of zero as of September 30, 2025 is included under accrued other expenses in the consolidated statement of assets and liabilities.
The Taxable Subsidiary, which is subject to tax as a corporation, allows us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.
RESULTS OF OPERATIONS
Set forth below are the results of operations for the years ended September 30, 2025 and 2024. For information regarding results of operations for the year ended September 30, 2023, see the Company's Form 10-K for the fiscal year ended September 30, 2024, as filed with the SEC on November 26, 2024.
Investment Income
Investment income for the year ended September 30, 2025 was $261.4 million and was attributable to $238.7 million from first lien secured debt and $22.7 million from other investments. The increase in investment income compared to the same periods in the prior year was primarily due to an increase in the size of the debt portfolio.
Investment income for the year ended September 30, 2024 was $186.4 million and was attributable to $164.3 million from first lien secured debt and $22.1 million from other investments.
Expenses
Expenses for the year ended September 30, 2025 totaled $154.3 million base management fee totaled $23.3 million, incentive fee totaled $26.0 million, debt related interest and expenses totaled $96.5 million, general and administrative expenses totaled $7.5 million and provision for taxes totaled $0.9 million. The increase in expenses compared to the prior year was primarily due to an increase in debt related interest and expenses and incentive and management fees.
Expenses for the year ended September 30, 2024 totaled $108.6 million. Base management fee totaled $14.9 million, incentive fee totaled $18.1 million, debt related interest and expenses totaled $67.9 million, general and administrative expenses totaled $6.7 million and provision for taxes totaled $1.1 million.
Net Investment Income
Net investment income totaled $107.2 million, or $1.16 per share, and $77.7 million, or $1.18 per share, for the years ended September 30, 2025 and 2024, respectively. The increase in net investment income compared to the prior year was primarily due to an increase in the size of our debt portfolio.
Net Realized Gains or Losses
Sales and repayments of investments for the years ended September 30, 2025 and 2024 totaled $925.7 million and $514.1 million, respectively. Net realized gain (losses) on investments totaled ($5.9) million and $0.2 million for the same periods, respectively. The change in realized gains (losses) was primarily due to changes in market conditions of our investments and the values at which they were realized, caused by the fluctuations in the market and in the economy, as discussed above under “Forward-Looking Statements”.
Unrealized Appreciation or Depreciation on Investments, the Credit Facility and the 2023 Notes
For the years ended September 30, 2025 and 2024, we reported net change in unrealized appreciation (depreciation) on investments of $(34.6) million and $14.3 million, respectively. As of September 30, 2025 and 2024, our net unrealized appreciation (depreciation) on investments totaled $(46.1) million and $(11.4) million, respectively. The net change in unrealized appreciation/depreciation on our investments for the year ended September 30, 2025 compared to the prior year was primarily due to changes in the capital market conditions of our investments and the values at which they were realized, caused by the fluctuations in the market and in the economy, as discussed above under the “Forward-Looking Statements" section above.
For the year ended September 30, 2025 and 2024, the Credit Facility or Prior Credit Facility, as applicable, and the 2023 Notes had a net change in unrealized Debt (appreciation) depreciation of less than $0.1 million and less than $(0.1) million, respectively. As of September 30, 2025 and 2024, our net unrealized (appreciation) depreciation on the Credit Facility and the 2023 Notes totaled zero and zero, respectively. The net change in unrealized depreciation for the year ended September 30, 2025 compared to the prior year was primarily due to changes in the capital markets, with the economic instability negatively affecting the value, as further discussed above under “Forward-Looking Statements”.
Net Change in Net Assets Resulting from Operations
Net change in net assets resulting from operations totaled $66.4 million, or $0.72 per share, and $91.8 million, or $1.40 per share, for the years ended September 30, 2025 and 2024, respectively. The decrease in net assets from operations for the year ended September 30, 2025 compared to the prior year was primarily due to greater depreciation of the portfolio primarily driven by changes in market conditions of our investments, as discussed above under “Forward-Looking Statements” as well as higher investment income.
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives. As of September 30, 2025, in accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that we are in compliance with a 150% asset coverage ratio requirement after such borrowing. For information regarding liquidity and capital resources for the year ended September 30, 2023, see the Company's Form 10-K for the fiscal year ended September 30, 2024, as filed with the SEC on November 26, 2024.
On April 5, 2018, our board of directors approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the SBCAA). As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), effective as of April 5, 2019, subject to compliance with certain disclosure requirements. As of September 30, 2025 and 2024, our asset coverage ratio, as computed in accordance with the 1940 Act, was 160% and 174%, respectively.
The annualized weighted average cost of debt for the years ended September 30, 2025 and 2024, inclusive of the fee on the undrawn commitment on the Credit Facility or Prior Credit Facility, as applicable, amendment costs and debt issuance costs, was 6.8% and 8.5%, respectively. As of September 30, 2025 and 2024, we had $34.1 million and $192.1 million of unused borrowing capacity under the Credit Facility, subject to leverage and borrowing base restrictions.
The Company's multi-currency Credit Facility with the Lenders has commitments of $718.0 million as of September 30, 2025, subject to satisfaction of certain conditions and regulatory restrictions that the 1940 Act imposes on us as a BDC, has an interest rate spread above SOFR (or an alternative risk-free floating interest rate index) of 200 basis points, a maturity date of August 2030 and a revolving period that ends in August 2028. As of September 30, 2025 and 2024, Funding I had $683.9 million and $443.9 million of outstanding borrowings under the Credit Facility or the Prior Credit Facility, as applicable, respectively. The Credit Facility had a weighted average interest rate of 6.3% and 7.5%, exclusive of the fee on undrawn commitments, as of September 30, 2025 and 2024, respectively.
The Credit Facility contains covenants, including, but not limited to, restrictions of loan size, currency types and amounts, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance of a minimum equity investment in Funding I and income ratio as well as restrictions on certain payments and issuance of debt. The Credit Facility compliance reporting is prepared on a basis of accounting other than GAAP. As of September 30, 2025, we were in compliance with the covenants relating to the Credit Facility.
We own 100% of the equity interest in Funding I and treat the indebtedness of Funding I as our leverage. Our Investment Adviser serves as collateral manager to Funding I under the Credit Facility.
Our interest in Funding I (other than the management fee) is subordinate in priority of payment to every other obligation of Funding I and is subject to certain payment restrictions set forth in the Credit Facility. We may receive cash distributions on our equity interests in Funding I only after it has made (1) all required cash interest and, if applicable, principal payments to the Lenders, (2) required administrative expenses and (3) claims of other unsecured creditors of Funding I. We cannot assure you that there will be sufficient funds available to make any distributions to us or that such distributions will meet our expectations from Funding I. The Investment Adviser has irrevocably directed that the management fee owed with respect to such services is to be paid to the Company so long as the Investment Adviser remains the collateral manager.
In November 2017, we issued $ 138.6 million aggregate principal amount of our 2023 Notes that matured on December 15, 2023 . The 2023 Notes were issued pursuant to a deed of trust between the Company and Mishmeret Trust Company, Ltd., as trustee, in November 2017. In connection with this offering, we have dual listed our common stock on the TASE. On February 7, 2024, the Company filed a notice with the Israel Securities Authority and the TASE voluntarily requesting to delist the Company's common stock from trading on the TASE. The last day of trading on the TASE was May 6, 2024 and the delisting of the Company's common stock from the TASE took effect on May 8, 2024.
The 2023 Notes paid interest at a rate of 4.3% per year. Interest on the 2023 Notes was payable semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2018. The principal on the 2023 Notes was payable in four annual installments as follows: 15% of the original principal amount on December 15, 2020, 15% of the original principal amount on December 15, 2021, 15% of the original principal amount on December 15, 2022 and 55% of the original principal amount on December 15, 2023. On December 15, 2023, the remaining outstanding 2023 Notes were repaid in full.
In March 2021 and in October 2021, we issued $ 100.0 million and $ 85.0 million, respectively, in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4% and 101.5%, respectively. Interest on the 2026 Notes is paid semi-annually on April 1 and October 1 of each year, at a rate of 4.25% per year, commencing October 1, 2021 The effective interest rate is 4.15%. The 2026 Notes mature on April 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are our general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.
In September 2019, the Securitization Issuers completed the Debt Securitization. The 2031 Asset-Backed Debt was secured by the middle market loans, participation interests in middle market loans and other assets of the Securitization Issuer. The Debt Securitization was executed through (A) a private placement of: (i) $78.5 million Class A-1 Senior Secured Floating Rate Notes maturing 2031, which bore interest at the three-month SOFR plus 1.8%, (ii) $15.0 million Class A-2 Senior Secured Fixed Rate Notes due 2031, which bore interest at 3.7%, (iii) $14.0 million Class B-1 Senior Secured Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 2.9%, (iv) $16.0 million Class B-2 Senior Secured Fixed Rate Notes due 2031, which bore interest at 4.3%, (v) $19.0 million Class C‑1 Secured Deferrable Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 4.0%, (vi) $8.0 million Class C-2 Secured Deferrable Fixed Rate Notes due 2031, which bore interest at 5.4%, and (vii) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 4.8% and (B) the borrowing of $77.5 million Class A‑1 Senior Secured Floating Rate Loans due 2031, which bore interest at the three-month SOFR plus 1.8%, under a credit agreement by and among the Securitization Issuers, as borrowers, various financial institutions, as lenders, and U.S. Bank National Association, as collateral agent and as loan agent. The 2031 Asset-Backed Debt was scheduled to mature on October 15, 2031. As of September 30, 2025 and 2024, the Company had zero, respectively, of 2031 Asset-Backed Debt outstanding with a weighted average interest rate of zero respectively.
On the closing date of the Debt Securitization, in consideration of our transfer to the Securitization Issuer of the initial closing date loan portfolio, which included loans distributed to us by our wholly-owned subsidiary, the Securitization Issuer transferred to us 100% of the Preferred Shares of the Securitization Issuer, 100% of the Class D Secured Deferrable Floating Rate Notes issued by the Securitization Issuer, and a portion of the net cash proceeds received from the sale of the 2031 Asset-Backed Debt. The Preferred Shares of the Securitization Issuer do not bear interest and had a stated value of $55.4 million at the closing of the Debt Securitization.
The 2031 Asset-Backed Debt constituted secured obligations of the Securitization Issuers, and the indenture governing the 2031 Asset-Backed Debt included customary covenants and events of default.
In July 2024, the 2031 Asset-Backed Debt was refinanced through a $351.0 million debt securitization in the form of a collateralized loan obligation, or the "2036-R Asset-Backed Debt". The Company retained $85.0 million of the debt securitization. The 2036-R Asset-Backed Debt was executed through: (A) the issuance by the 2036-R Securitization Issuers of the following classes of notes pursuant that certain indenture, dated September 19, 2019, by and among the 2036-R Securitization Issuers and U.S. Bank Trust Company, National Association, as amended by the second supplemental indenture, dated June 25, 2024): (i) $203 million of A-1-R Notes, which bear interest at the three-month SOFR plus 1.75%, (ii) $10.5 million of A-2-R Notes, which bear interest at three-month SOFR plus 1.90%, (iii) $12 million of Class B-R Notes, which bear interest at three-month SOFR plus 2.05%, (iv) $28 million of C-R Notes, which bear interest at three-month SOFR plus 2.75% and (v) $21 million of D-R Notes, which bear interest at three-month SOFR plus 4.30%, (B) the issuance by the issuer of $64 million of subordinated notes pursuant to the Indenture and (C) the borrowing by one of the 2036-R Securitization Issuers of $12.5 million of Class B-R Loans, which bear interest at three-month SOFR plus 2.05%, pursuant to a credit agreement, by and among the 2036-R Securitization Issuers, the various financial institutions and other persons party thereto, as lenders and U.S. Bank Trust Company, National Association, as loan agent and as trustee. The 2036-R Asset-Backed Debt matures in July 2036. As of September 30, 2025 and September 30, 2024, the Company had $266.0 million of 2036-R Asset-Backed Debt outstanding with a weighted average interest rate of 6.2% and 7.2%, respectively. As of September 30, 2025 and September 30, 2024, the unamortized fees on the 2036-R Asset-Backed Debt were $0.6 million and $0.8 million, respectively.
In February 2024, the 2036 Asset-Backed Debt was issued by the 2036 Securitization Issuer. The 2036 Asset-Backed Debt is secured by the middle market loans, participation interests in middle market loans and other assets of the 2036 Securitization Issuer. The Debt Securitization was executed through (A) a private placement of: (i) $139.5 million of AAA(sf) Class A-1 Notes, which bear interest at the three-month secured overnight financing rate published by the Federal Reserve Bank of New York (“SOFR”) plus 2.30%, (ii) $14 million of AAA(sf) Class A-2 Notes, which bear interest at three-month SOFR plus 2.70%, (iii) $24.5 million of AA(sf) Class B Notes, which bear interest at three-month SOFR plus 2.90%, (iv) $28 million of A(sf) Class C Notes, which bear interest at three-month SOFR plus 3.90%, (v) $21 million of BBB-(sf) Class D Notes, which bear interest at three-month SOFR plus 5.90%, (together, the “Secured Notes”), and (vi) $63.6 million of subordinated notes (“Subordinated Notes”) and (B) the borrowing of $60.0 million AAA(sf) Class A-1 Senior Secured Floating Rate Loans (the “Class A-1 Loans” and together with the Secured Notes and Subordinated Notes, the “Debt”), which bear interest at three-month SOFR plus 2.30%, under a credit agreement (the “Credit Agreement”), dated as of the Closing Date, by and among the Issuer, as borrower, various financial institutions, as lenders, and Wilmington Trust, National Association, as collateral agent and as loan agent. The annualized interest on the 2036 Asset-Backed Debt will be paid, to the extent of funds available. The Debt is scheduled to mature on April 18, 2036.
The 2036 Asset-Backed Debt is included in the Consolidated Statement of Assets and Liabilities as debt of the Company and the Subordinated Notes of the 2036-Securitization Issuer were eliminated in consolidation. As of September 30, 2025 and September 30, 2024, the Company had $287.0 million of 2036 Asset-Backed Debt outstanding with a weighted average interest rate of 7.1% and 8.1%, respectively. As of September 30, 2025 and September 30, 2024, the unamortized fees on the 2036 Asset-Backed Debt were $2.4 million and $2.9 million, respectively.
In February 2025, the Company completed the 2037 Debt Securitization. The 2037 Notes were issued by the 2037 Securitization Issuer and are backed by a portfolio of collateral obligations consisting of middle market loans and participation interests in middle market loans as well as by other assets of the 2037Securitization Issuer. The transaction was executed through (A) a private placement of $220.5 million of 2037 Class A-1 Notes, (ii) $19.0 million of 2037 Class A-2 Notes, (iii) $28.5 million of 2037 Class B Notes, (iv) $38.0 million of 2037 Class C Notes, (v) $28.5 million 2037 Class D Notes, and (vi) $85.1 million of 2037 Subordinated Notes and (B) the borrowing by the 2037 Securitization Issuer of $10.0 million of 2037 Class A-1L-ALoans and $45.0 million of 2037 Class A-1L-B Loans, which bear interest at three-month SOFR plus 1.49%. The 2037 Asset-Backed Debt is scheduled to mature on April 20, 2037. The 2037 Asset-Backed Debt is included in the Consolidated Statement of Assets and Liabilities as debt of the Company and the 2037 Class D Notes and the 2037 Subordinated Notes of the 2037 Securitization Issuer were eliminated in consolidation. The Company will continue to retain the 2037 Class D Notes and the 2037 Subordinated Notes. A portion of the proceeds received by the 2037 Securitization Issuer from the loans securing the 2037 Asset-Backed Loans and the 2037 Secured Notes may be used to purchase additional middle market loans under the direction of the Investment Adviser through April 20, 2029. As of September 30, 2025, the Company had $361.0 million of 2037 Asset-Backed Debt outstanding with a weighted average interest rate of 5.9%. As of September 30, 2025, the unamortized fees on the 2037 Asset-Backed Debt were $2.7 million.
Our Investment Adviser serves as collateral manager to the 2036-Securitization Issuer pursuant to the Collateral Management Agreement. For so long as our Investment Adviser serves as collateral manager, it will elect to irrevocably waive any collateral management fee to which it may be entitled under the Collateral Management Agreement.
On August 20, 2021, we entered into equity distribution agreements (the 2021 Equity Distribution Agreements") with each of JMP Securities LLC and Raymond James & Associates, Inc., as the sales agents, in connection with the sale of shares of our common stock, with an aggregate offering price of up to $75 million under an at-the-market offering. On May 5, 2022, we amended the 2021 Equity Distribution Agreements to update references from NASDAQ to NYSE and reflect that the agents are now represented by Kirkland & Ellis LLP. On March 27, 2023 we terminated the 2021 Equity Distribution Agreements and entered into new equity distribution agreements with each of Citizens JMP Securities LLC, Raymond James & Associates, Inc. and Truist Securities, Inc. (as amended and restated, the "2022 Equity Distribution Agreements"), as sales agents (each as "Sales Agent," and collectively, the "Sales Agents") in connection with the sale of shares of our common stock, with an aggregate offering price of up to $100 million under an at-the-market program (the "2022 ATM Program"). On August 11, 2023, we amended and restated the 2022 Equity Distribution Agreements with each of the Sales Agents to increase the aggregate offering price to up to $250 million. On July 17, 2024 we terminated the 2022 Equity Distribution Agreements and entered into new equity distribution agreements with the Sales Agents (collectively, the "2024 Equity Distribution Agreements") in connection with the sale of our shares of common stock with an aggregate offering price of up to $500 million under an at-the-market program (the "2024 ATM Program".) The 2024 Equity Distribution Agreements provide that we may offer and sell shares of our common stock from time to time through a Sales Agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including, market conditions and the trading price of our common stock. Our Investment Adviser may, from time to time, in its sole discretion, pay some or all of the commissions payable under the 2024 Equity Distribution Agreements or make additional supplemental payments to ensure that the sales price per share of our common stock in connection with all of the offerings made hereunder will not be less than our current NAV per share. Any such payments made by the Investment Adviser will not be subject to reimbursement by us.
During the years ended September 30, 2025, and 2024 we issued 21,638,000 shares and 18,845,194 shares of our Common Stock, respectively, under the 2024 ATM Program and 2022 ATM Program (together the "ATM Programs") at an average price of $11.34 and $11.35 per share, respectively, raising $244.8 million and $213.3 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV. We incurred $0.3 million and $0.8 million, respectively, of deferred offering costs incurred related to establishing the ATM Programs. As of September 30, 2025, and 2024, we had $192.2 million and $437.3 million available under the ATM Programs.
Since inception of the ATM Programs through September 30, 2025, we issued 49,486,081 shares of our Common Stock under the ATM Programs at a weighted-average price of $11.27, raising $557.6 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV. We incurred $1.5 million of legal and other offering costs associated with establishing the ATM Programs.
We may raise equity or debt capital through both registered offerings off our shelf registration statement and private offerings of securities, securitizing a portion of our investments among other considerations or mergers and acquisitions. Furthermore, the Credit Facility availability depends on various covenants and restrictions as discussed in the preceding paragraphs. The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate purposes.
We have entered into certain contracts under which we have material future commitments. Under our Investment Management Agreement, which was most recently reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in May 2025, PennantPark Investment Advisers serves as our investment adviser. Payments under our Investment Management Agreement in each reporting period are equal to (1) a management fee equal to a percentage of the value of our average adjusted gross assets and (2) an incentive fee based on our performance.
Under our Administration Agreement, which was most recently reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in May 2025, the Administrator furnishes us with office facilities and administrative services necessary to conduct our day-to-day operations. The Administration Agreement was amended on July 1, 2022. If requested to provide significant managerial assistance to our portfolio companies, we or the Administrator will be paid an additional amount based on the services provided. Payment under our Administration Agreement is based upon our allocable portion of the Administrator’s overhead in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.
If any of our contractual obligations discussed above are terminated, our costs under new agreements that we enter into may increase. In addition, we will likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under our Investment Management Agreement and our Administration Agreement. Any new investment management agreement would also be subject to approval by our stockholders.
As of September 30, 2025 and 2024, we had cash equivalents of $122.7 million and $112.1 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.
For the year ended September 30, 2025, our operating activities used cash of $720.6 million and our financing activities provided cash of $731.2 million. Our operating activities used cash primarily for our investment activities and our financing activities provided cash primarily from proceeds from ATM program, borrowing under our Credit Facility and issuances of asset-backed debt.
For the year ended September 30, 2024, our operating activities used cash of $801.4 million and our financing activities provided cash of $812.9 million. Our operating activities used cash primarily for our investment activities and our financing activities provided cash primarily from proceeds from ATM program, borrowing under our Credit Facility and issuances of asset-backed debt.
Senior Securities
Information about our senior securities is shown in the following table as of September 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017, and 2016. The report of RSM US LLP, an independent registered public accounting firm, on the Senior Securities table as of September 30, 2025, is attached as an exhibit to this Report.
Class and Year
Total Amount
Outstanding (1)
Asset Coverage
Per Unit (2)
Average
Market Value
Per Unit (3)
Credit Facility
Fiscal 2025
Fiscal 2024
Fiscal 2023
Fiscal 2022
Fiscal 2021
Fiscal 2020
Fiscal 2019
Fiscal 2018
Fiscal 2017
Fiscal 2016
2023 Notes
Fiscal 2025
Fiscal 2024
Fiscal 2023
Fiscal 2022
Fiscal 2021
Fiscal 2020
Fiscal 2019
Fiscal 2018
2026 Notes
Fiscal 2025
Fiscal 2024
Fiscal 2023
Fiscal 2022
Fiscal 2021
2031 Asset-Backed Debt
Fiscal 2025
Fiscal 2024
Fiscal 2023
Fiscal 2022
Fiscal 2021
Fiscal 2020
Fiscal 2019
2036 Asset-Backed Debt
Fiscal 2025
Fiscal 2024
2036-R Asset-Backed Debt
Fiscal 2025
Fiscal 2024
2037 Asset-Backed Debt
Fiscal 2025
Total cost of each class of senior securities outstanding at the end of the period presented in thousands (000s).
The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness at par. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
Not applicable, as senior securities are not registered for public trading in the United States of America.
PennantPark Senior Secured Loan Fund I LLC
In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. As of September 30, 2025 and September 30, 2024, PSSL had total assets of $1,153.7 million and $988.1 million, respectively, and its investment portfolio consisted of investments in 117 and 109 portfolio companies, respectively. As of September 30, 2025, at fair value, the largest investment in a single portfolio company in PSSL was $20.9 million and the five largest investments totaled $99.3 million. As of September 30, 2024, at fair value, the largest investment in a single portfolio company in PSSL was $21.3 million and the five largest investments totaled $97.3 million. PSSL invests in portfolio companies in the same industries in which we may directly invest.
We and Kemper provide capital to PSSL in the form of first lien secured debt and equity interests. As of September 30, 2025 and September 30, 2024, we and Kemper owned 87.5% and 12.5%, respectively, of each of the outstanding first lien secured debt and equity interests. As of the same dates, our investment in PSSL consisted of first lien secured debt of $237.7 million (zero remaining unfunded) and $237.7 million (zero remaining unfunded), respectively, and equity interests of $123.7 million ($65.6 million remaining unfunded) and $101.9 million (zero remaining unfunded), respectively.
We and Kemper each appointed two members to PSSL’s four-person board of directors and investment committee. All material decisions with respect to PSSL, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors or investment committee. Quorum is defined as (i) the presence of two members of the board of directors or investment committee, provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors or investment committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors or investment committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each member.
In December 2024, PSSL entered into a $325.0 million (increased from $260.0 million) senior secured revolving credit facility which bears interest at SOFR plus 225 basis points (including a spread adjustment) with Ally Bank through its wholly-owned subsidiary, PennantPark Senior Secured Loan Facility LLC II, or PSSL Subsidiary II, subject to leverage and borrowing base restrictions.
In January 2021, PSSL completed a $300.7 million debt securitization in the form of a collateralized loan obligation, or the “2032 Asset-Backed Debt”. The 2032 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2032 Asset-Backed Debt is scheduled to mature in January 2032. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO II, Ltd. of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO II, Ltd. transferred to PSSL 100% of the Preferred Shares of PennantPark CLO II, Ltd. and 100% of the Class E Notes issued by PennantPark CLO II, Ltd.
In May 2024, PSSL completed the refinancing of the 2032 Asset-Backed Debt through a $300.7 million debt securitization in the form of a collateralized loan obligation, or the "2036 PSSL Asset-Backed Debt". The 2036 PSSL Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned subsidiary of PSSL, consisting primarily of middle market loans and participation interest in middle market loans. The 2036 PSSL Asset-Backed Debt is scheduled to mature in April 2036. PSSL retained the preferred shares and Class E-R Notes through a consolidated subsidiary.
In April 2023, PSSL completed a $297.8 million debt securitization in the form of a collateralized loan obligation, or the “2035 Asset-Backed Debt”. The 2035 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO VI, LLC, a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2035 Asset-Backed Debt is scheduled to mature in April 2035. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO VI, LLC of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO VI, LLC transferred to PSSL 100% of the Preferred Shares of CLO VI, LLC
In May 2025, PSSL through its wholly-owned and consolidated subsidiary, PennantPark CLO VI, LLC closed the refinancing of the 2035 Asset-Backed Debt through a four year reinvestment period, twelve-year final maturity $315.8 million debt securitization or the "2037-R Asset-Backed Debt." The debt in this securitization is structured in the following manner: (i) $228.0 million of Class A-R Loans, which bears interest at three-month SOFR plus 1.85%, (ii) $18.0 million of Class B-R Loans, which bears interest at three-month SOFR plus 4.50%, (iii) $18.0 million of Class C-R Loans and (iv) $51.8 million of subordinated notes. PSSL will continue to retain all of the subordinated notes and Class C-R Loans through a consolidated subsidiary. The maturity of the replacement debt and existing subordinated notes is now extended to April 2037.
In April 2025, PSSL through its wholly-owned and consolidated subsidiary, PennantPark CLO 12, LLC closed a four year reinvestment period, twelve-year final maturity $301 million debt securitization in the form of a collateralized loan obligation or the "2037 Asset-Backed Debt." The debt in this securitization is structured in the following manner: (i) $30.0 million of Class A-1 Loans, which bear interest at three-month SOFR plus 1.45%, (ii) $141.0 million of Class A-1 Notes, which bear interest at three-month SOFR plus 1.45%, (iii) $12.0 million of Class A-2 Notes, which bear interest at a three-month SOFR plus 1.60%, (iv) $21.0 million of Class B notes, which bears interest at three-month SOFR plus 1.85%, (v) $24.0 million of Class C notes, which bears interest at three-month SOFR plus 2.30%, (vi)$18.0 million Class D notes, which bears interest at three-month SOFR plus 3.30%, (vii) $55.0 million of subordinated notes. PSSL will continue to retain all of the subordinated notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2029 and the debt is scheduled to mature in April 2037. The proceeds from the debt repaid a portion of PSSL's secured revolving credit facility.
Below is a summary of PSSL’s portfolio at fair value ($ in thousands):
September 30, 2025
September 30, 2024
Total investments
Weighted average cost yield on income producing investments
Number of portfolio companies in PSSL
Largest portfolio company investment
Total of five largest portfolio company investments
Below is a listing of PSSL’s individual investments as of September 30, 2025 (par and $ in thousands):
Issuer Name
Acquisition
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
First Lien Secured Debt - 2,106.3% of Net Assets
ACP Avenu Buyer, LLC
Business Services
SOFR+500
ACP Falcon Buyer, Inc.
Business Services
SOFR+550
Ad.net Acquisition, LLC
Media
SOFR+626
Aechelon Technology, Inc.
Aerospace and Defense
SOFR+575
AFC-Dell Holding Corp.
Distributors
SOFR+550
Aphix Buyer, Inc.
Business Services
SOFR+475
Alpine Acquisition Corp II (4)
Containers and Packaging
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media: Advertising, Printing & Publishing
SOFR+575
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media: Advertising, Printing & Publishing
SOFR+575
Arcfield Acquisition Corp.
Aerospace and Defense
SOFR+500
Archer Lewis, LLC
Commercial Services & Supplies
SOFR+575
Argano, LLC
Business Services
SOFR+575
Azureon, LLC (F/K/A Tpcn Midco, LLC)
Diversified Consumer Services
SOFR+575
Beacon Behavioral Support Services, LLC
Healthcare and Pharmaceuticals
SOFR+550
Best Practice Associates, LLC
Aerospace and Defense
SOFR+675
Beta Plus Technologies, Inc.
Business Services
SOFR+575
Big Top Holdings, LLC
Business Services
SOFR+525
BioDerm, Inc.
Healthcare and Pharmaceuticals
SOFR+650
Blackhawk Industrial Distribution, Inc.
Distributors
SOFR+540
BLC Holding Company, Inc.
Business Services
SOFR+450
Boss Industries, LLC
Independent Power and Renewable Electricity Producers
SOFR+500
Burgess Point Purchaser Corporation
Automotive
SOFR+535
By Light Professional IT Services, LLC
High Tech Industries
SOFR+550
C5MI Acquisition, LLC
IT Services
SOFR+600
Capital Construction, LLC
Consumer Services
SOFR+590
Carisk Buyer, Inc.
Healthcare Technology
SOFR+500
Carnegie Dartlet, LLC
Media: Advertising, Printing & Publishing
SOFR+550
Cartessa Aesthetics, LLC
Distributors
SOFR+600
Case Works, LLC
Professional Services
SOFR+525
CF512, Inc.
Media
SOFR+619
Commercial Fire Protection Holdings, LLC
Commercial Services & Supplies
SOFR+450
Confluent Health, LLC
Healthcare and Pharmaceuticals
SOFR+750
CJX Borrower, LLC
Media
SOFR+576
Crane 1 Services, Inc.
Commercial Services & Supplies
SOFR+586
DRI Holding Inc.
Media
SOFR+535
DRS Holdings III, Inc.
Consumer Goods: Durable
SOFR+525
Duggal Acquisition, LLC
Marketing Services
SOFR+475
Dynata, LLC - First Out Term Loan (5)
Diversified Consumer Services
SOFR+526
Dynata, LLC - Last Out Term Loan
Diversified Consumer Services
SOFR+576
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
SOFR+475
Emergency Care Partners, LLC
Healthcare Providers and Services
SOFR+500
Exigo Intermediate II, LLC
Software
SOFR+635
ETE Intermediate II, LLC
Diversified Consumer Services
SOFR+500
EvAL Home Care Solutions Intermediate, LLC
Healthcare and Pharmaceuticals
SOFR+575
GGG MIDCO, LLC
Diversified Consumer Services
SOFR+500
Global Holdings InterCo, LLC
Diversified Financial Services
SOFR+560
Graffiti Buyer, Inc.
Trading Companies & Distributors
SOFR+560
Halo Buyer, Inc.
Consumer Products
SOFR+600
Hancock Roofing And Construction, LLC
Insurance
SOFR+550
Harris & Co, LLC
Professional Services
SOFR+500
HEC Purchaser Corp.
Healthcare and Pharmaceuticals
SOFR+500
Hills Distribution, Inc.
Business Services
SOFR+600
HW Holdco, LLC
Media
SOFR+590
Imagine Acquisitionco, Inc.
Software
SOFR+510
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
SOFR+600
Inovex Information Systems Incorporated
Software
SOFR+525
Inventus Power, Inc.
Consumer Goods: Durable
SOFR+761
Kinetic Purchaser, LLC
Personal Products
SOFR+615
Lash OpCo, LLC
Personal Products
SOFR+785
LAV Gear Holdings, Inc. - Takeback TL (5)
Capital Equipment
SOFR+594
LAV Gear Holdings, Inc. - Priority TL (5)
Capital Equipment
SOFR+594
Lightspeed Buyer, Inc.
Healthcare Providers and Services
SOFR+475
LJ Avalon Holdings, LLC
Environmental Industries
SOFR+450
Loving Tan Intermediate II, Inc.
Personal Products
SOFR+500
Lucky Bucks, LLC - First-Out Term Loan (5)
Hotel, Gaming and Leisure
SOFR+765
Lucky Bucks, LLC - Last-Out Term Loan
Hotel, Gaming and Leisure
SOFR+765
MAG DS Corp.
Aerospace and Defense
SOFR+560
Marketplace Events Acquisition, LLC
Media
SOFR+525
MBS Holdings, Inc.
Internet Software and Services
SOFR+510
MDI Buyer, Inc.
Chemicals, Plastics and Rubber
SOFR+475
Meadowlark Acquirer, LLC
Professional Services
SOFR+565
Medina Health, LLC
Healthcare and Pharmaceuticals
SOFR+625
Megawatt Acquisitionco, Inc.
Electronic Equipment, Instruments, and Components
SOFR+525
MOREgroup Holdings, Inc.
Business Services
SOFR+525
Municipal Emergency Services, Inc.
Distributors
SOFR+515
NBH Group, LLC
Healthcare, Education & Childcare
SOFR+585
NORA Acquisition, LLC
Healthcare Providers and Services
SOFR+635
Omnia Exterior Solutions, LLC
Diversified Consumer Services
SOFR+525
Below is a listing of PSSL’s individual investments as of September 30, 2025 (continued):
Issuer Name
Acquisition
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
One Stop Mailing, LLC
Air Freight and Logistics
SOFR+636
ORL Acquisition, Inc. (5)
Consumer Finance
SOFR+940
OSP Embedded Purchaser, LLC
Aerospace and Defense
SOFR+575
Output Services Group, Inc. - First-Out Term Loan
Business Services
SOFR+843
Output Services Group, Inc. - Last-Out Term Loan
Business Services
SOFR+668
PCS MIDCO, Inc.
Diversified Consumer Services
SOFR+575
Pacific Purchaser, LLC
Business Services
SOFR+625
PAR Excellence Holdings, Inc.
Healthcare Technology
SOFR+500
Paving Lessor Corp. First Lien -Term Loan
Business Services
SOFR+525
Penta Group Holdings, Inc.
Professional Services
SOFR+450
Pink Lily Holdco, LLC (5),(7)
Textiles, Apparel and Luxury Goods
Pragmatic Institute, LLC
Education
SOFR+550
Project Granite Buyer, Inc.
Professional Services
SOFR+575
Rancho Health MSO, Inc.
Healthcare Providers and Services
SOFR+500
Recteq, LLC
Leisure Products
SOFR+640
Ro Health, LLC
Healthcare Providers and Services
SOFR+450
RRA Corporate, LLC
Diversified Consumer Services
SOFR+525
RTIC Subsidiary Holdings, LLC
Leisure Products
SOFR+575
Rural Sourcing Holdings, Inc.
High Tech Industries
SOFR+575
Sabel Systems Technology Solutions, LLC
Government Services
SOFR+575
Safe Haven Defense US, LLC
Construction and Building
SOFR+550
Sales Benchmark Index, LLC
Professional Services
SOFR+620
Sath Industries, LLC
Event Services
SOFR+550
Schlesinger Global, Inc. (6)
Business Services
SOFR+860
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
SOFR+615
Sigma Defense Systems, LLC
Aerospace and Defense
SOFR+615
Smile Brands, Inc.
Healthcare and Pharmaceuticals
SOFR+610
Spendmend Holdings, LLC
Healthcare Technology
SOFR+515
STG Distribution, LLC - First Out New Money Term Loans (5)
Air Freight and Logistics
SOFR+835
STG Distribution, LLC - Second Out Term Loans (5),(7)
Air Freight and Logistics
SV-Aero Holdings, LLC
Aerospace and Defense
SOFR+500
Systems Planning And Analysis, Inc.
Aerospace and Defense
SOFR+475
TMII Enterprises, LLC
Commercial Services & Supplies
SOFR+450
TCG 3.0 Jogger Acquisitionco, Inc.
Media
SOFR+650
Team Services Group, LLC
Healthcare and Pharmaceuticals
SOFR+525
The Bluebird Group, LLC
Professional Services
SOFR+590
The Vertex Companies, LLC
Construction and Engineering
SOFR+475
TPC US Parent, LLC
Consumer Goods: Non-Durable
SOFR+590
Transgo, LLC
Automotive
SOFR+575
Tyto Athene, LLC
IT Services
SOFR+490
Urology Management Holdings, Inc.
Healthcare and Pharmaceuticals
SOFR+550
Walker Edison Furniture Company, LLC - Unfunded Term Loan (3),(5)
Wholesale
Walker Edison Furniture Company, LLC - New Money DIP (5)
Wholesale
Watchtower Buyer, LLC
Diversified Consumer Services
SOFR+600
Wash & Wax Systems LLC (5)
Automobiles
SOFR+550
Total First Lien Secured Debt
Subordinated Debt - 14.8% of Net Assets
Integrative Nutrition, LLC
Diversified Consumer Services
Integrative Nutrition, LLC
Diversified Consumer Services
Wash & Wax Systems LLC
Automobiles
Total Subordinate Debt
Equity Securities - 20.3% of Net Assets
48Forty Intermediate Holdings, Inc. - Common Equity
Containers and Packaging
New Insight Holdings, Inc. - Common Equity
Diversified Consumer Services
Lucky Bucks, LLC - Common Equity
Hotel, Gaming and Leisure
Output Services Group, Inc. - Common Equity
Business Services
Pragmatic Holdco, Inc. - Common Equity
Education
Wash & Wax Group, LP - Common Equity
Automobiles
White Tiger Newco, LLC - Common Equity (5)
Automobiles
Total Equity Securities
Total Investments - 2,141.5% of Net Assets (3)(6)
Cash and Cash Equivalents - 121.5% of Net Assets
BlackRock Federal FD Institutional 81 (Money Market Fund)
Blackrock Liquidity Fed Fund Inst (Money Market Fund)
JP Morgan USD Liquidity Inst (Money Market Fund)
JP Morgan US Government Fund (Money Market Fund)
Goldman Sachs Financial Square Government Fund (Money Market Fund)
Non-Money Market Cash
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents —2,263.0% of Net Assets
Liabilities in Excess of Other Assets — (2,163.0)% of Net Assets
Members' Equity—100.0%
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR". The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSSL’s accounting policy.
Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-accrual security.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2037-R Asset-Backed Debt and held through PennantPark CLO VI, LLC, or, 3) securing the 2036 Asset-Backed Debt and held through PennantPark CLO II, Ltd. or, 4) securing the 2037 Asset-Backed Debt held through PennantPark CLO 12, LLC.
As of September 30, 2025, all investments are in U.S companies. Total cost, fair value, and percentage of Net Assets for the U.S Companies were $1,103.7 million, $1,084.6 million and 2,141.5%.
Partial PIK non-accrual security
All of our investments are not registered under the 1933 Act and have restrictions on resale.
Below is a listing of PSSL’s individual investments as of September 30, 2024 (Par and $ in thousands):
Issuer Name
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
First Lien Secured Debt - 1,404.5% of Net Assets
A1 Garage Merger Sub, LLC
Commercial Services & Supplies
SOFR+610
ACP Avenu Buyer, LLC
Business Services
SOFR+525
ACP Falcon Buyer, Inc.
Business Services
SOFR+550
Ad.net Acquisition, LLC
Media
SOFR+626
Aeronix, Inc
Aerospace and Defense
SOFR+525
Alpine Acquisition Corp II
Containers and Packaging
SOFR+610
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media: Advertising, Printing & Publishing
SOFR+590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media: Advertising, Printing & Publishing
SOFR+590
Applied Technical Services, LLC
Commercial Services & Supplies
SOFR+590
Arcfield Acquisition Corp.
Aerospace and Defense
SOFR+625
Beacon Behavioral Services, LLC
Healthcare and Pharmaceuticals
SOFR+525
Beta Plus Technologies, Inc.
Business Services
SOFR+575
Big Top Holdings, LLC
Business Services
SOFR+625
BioDerm, Inc.
Healthcare and Pharmaceuticals
SOFR+650
Blackhawk Industrial Distribution, Inc.
Distributors
SOFR+640
BlueHalo Financing Holdings, LLC
Aerospace and Defense
SOFR+600
Broder Bros., Co.
Consumer Products
SOFR+611
Burgess Point Purchaser Corporation
Automotive
SOFR+535
By Light Professional IT Services, LLC
High Tech Industries
SOFR+698
Carnegie Dartlet, LLC
Media: Advertising, Printing & Publishing
SOFR+550
Cartessa Aesthetics, LLC
Distributors
SOFR+575
CF512, Inc.
Media
SOFR+619
Confluent Health, LLC
Healthcare and Pharmaceuticals
SOFR+400
Connatix Buyer, Inc.
Media
SOFR+561
Crane 1 Services, Inc.
Commercial Services & Supplies
SOFR+586
Dr. Squatch, LLC
Personal Products
SOFR+535
DRI Holding Inc.
Media
SOFR+535
DRS Holdings III, Inc.
Consumer Goods: Durable
SOFR+635
Dynata, LLC - First Out Term Loan (6)
Diversified Consumer Services
SOFR+526
Dynata, LLC - Last Out Term Loan
Diversified Consumer Services
SOFR+576
ECL Entertainment, LLC
Hotel, Gaming and Leisure
SOFR+400
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
SOFR+575
Exigo Intermediate II, LLC
Software
SOFR+635
ETE Intermediate II, LLC
Diversified Consumer Services
SOFR+650
Eval Home Solutions Intermediate, LLC
Healthcare and Pharmaceuticals
SOFR+575
Fairbanks More Defense
Aerospace and Defense
SOFR+450
Global Holdings InterCo LLC
Diversified Financial Services
SOFR+615
Graffiti Buyer, Inc.
Trading Companies & Distributors
SOFR+560
Hancock Roofing and Construction L.L.C.
Insurance
SOFR+560
HEC Purchaser Corp
Healthcare and Pharmaceuticals
SOFR+550
Hills Distribution, Inc
Business Services
SOFR+600
HW Holdco, LLC
Media
SOFR+590
Imagine Acquisitionco, LLC
Software
SOFR+510
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
SOFR+685
Integrative Nutrition, LLC
Diversified Consumer Services
SOFR+715
(PIK 2.25%)
Inventus Power, Inc.
Consumer Goods: Durable
SOFR+761
ITI Holdings, Inc.
IT Services
SOFR+565
Kinetic Purchaser, LLC
Personal Products
SOFR+615
Lash OpCo, LLC
Personal Products
SOFR+785
(PIK 5.10%)
LAV Gear Holdings, Inc. (6)
Capital Equipment
SOFR+643
LAV Gear Holdings, Inc. - Term Loan Incremental
Capital Equipment
SOFR+640
Lightspeed Buyer Inc.
Healthcare Providers and Services
SOFR+535
LJ Avalon Holdings, LLC
Environmental Industries
SOFR+525
Loving Tan Intermediate II, Inc.
Consumer Products
SOFR+650
Lucky Bucks, LLC - First-Out Term Loan (6)
Hotel, Gaming and Leisure
SOFR+765
Lucky Bucks, LLC - Last-Out Term Loan
Hotel, Gaming and Leisure
SOFR+765
MAG DS Corp
Aerospace and Defense
SOFR+550
Magenta Buyer, LLC - First-Out Term Loan
Software
SOFR+701
Magenta Buyer, LLC - Second-Out Term Loan
Software
SOFR+801
Magenta Buyer, LLC - Third-Out Term Loan
Software
SOFR+726
Marketplace Events, LLC - Super Priority First Lien Term Loan (6)
Media: Diversified and Production
SOFR+540
Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan (3)(6)
Media: Diversified and Production
Marketplace Events, LLC (6)
Media: Diversified and Production
SOFR+525
MBS Holdings, Inc.
Internet Software and Services
SOFR+585
MBS Holdings, Inc. (New Issue) - Incremental
Internet Software and Services
SOFR+660
MBS Holdings, Inc. (New Issue) - Second Incremental
Internet Software and Services
SOFR+635
MDI Buyer, Inc.
Chemicals, Plastics and Rubber
SOFR+575
MDI Buyer, Inc. - Incremental
Chemicals, Plastics and Rubber
SOFR+600
Meadowlark Acquirer, LLC
Professional Services
SOFR+590
Below is a listing of PSSL’s individual investments as of September 30, 2024 (continued):
Issuer Name
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number of Shares
Cost
Fair Value (2)
Medina Health, LLC
Healthcare and Pharmaceuticals
SOFR+625
Megawatt Acquisitionco, Inc
Electronic Equipment, Instruments, and Components
SOFR+525
Mission Critical Electronics, Inc.
Capital Equipment
SOFR+590
MOREGroup Holdings, Inc
Business Services
SOFR+575
Municipal Emergency Services, Inc.
Distributors
SOFR+515
NBH Group LLC
Healthcare, Education & Childcare
SOFR+585
NORA Acquisition, LLC
Healthcare Providers and Services
SOFR+635
One Stop Mailing, LLC
Air Freight and Logistics
SOFR+636
ORL Acquisitions, Inc.
Consumer Finance
SOFR+940
(PIK 7.50%)
Output Services Group, Inc - First-Out Term Loan
Business Services
SOFR+843
Output Services Group, Inc - Last-Out Term Loan
Business Services
SOFR+668
Owl Acquisition, LLC
Professional Services
SOFR+535
Ox Two, LLC
Construction and Building
SOFR+651
Pacific Purchaser, LLC
Business Services
SOFR+625
PCS Midco, Inc
Diversified Consumer Services
SOFR+575
PH Beauty Holdings III, Inc.
Wholesale
SOFR+543
PL Acquisitionco, LLC
Textiles, Apparel and Luxury Goods
SOFR+725
(PIK 4.00%)
Pragmatic Institute, LLC (5)
Education
SOFR+750
(PIK 12.35%)
Quantic Electronics, LLC
Aerospace and Defense
SOFR+635
Rancho Health MSO, Inc.
Healthcare Providers and Services
SOFR+560
Reception Purchaser, LLC
Air Freight and Logistics
SOFR+615
Recteq, LLC
Leisure Products
SOFR+715
RTIC Subsidiary Holdings, LLC
Consumer Goods: Durable
SOFR+575
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)
High Tech Industries
SOFR+575
Safe Haven Defense US, LLC
Construction and Building
SOFR+525
Sales Benchmark Index LLC
Professional Services
SOFR+620
Sargent & Greenleaf Inc.
Wholesale
SOFR+760
(PIK 1.00%)
Schlesinger Global, Inc.
Business Services
SOFR+835
(PIK 0.50%)
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
SOFR+615
Sigma Defense Systems, LLC
Aerospace and Defense
SOFR+690
Simplicity Financial Marketing Group Holdings, Inc
Diversified Financial Services
SOFR+640
Skopima Consilio Parent, LLC
Business Services
SOFR+461
Smartronix, LLC
Aerospace and Defense
SOFR+610
Smile Brands Inc.
Healthcare and Pharmaceuticals
SOFR+550
(PIK 1.50%)
Solutionreach, Inc.
Healthcare and Pharmaceuticals
SOFR+715
Spendmend Holdings LLC
Healthcare Technology
SOFR+565
Summit Behavioral Healthcare, LLC
Healthcare and Pharmaceuticals
SOFR+425
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)
Aerospace and Defense
SOFR+500
TCG 3.0 Jogger Acquisitionco
Media
SOFR+650
Team Services Group, LLC
Healthcare and Pharmaceuticals
SOFR+500
Teneo Holdings, LLC
Business Services
SOFR+475
The Bluebird Group LLC
Professional Services
SOFR+665
The Vertex Companies, LLC
Construction and Engineering
SOFR+610
TPC Canada Parent, Inc. and TPC US Parent, LLC
Consumer Goods: Non-Durable
SOFR+565
Transgo, LLC
Automotive
SOFR+575
TWS Acquisition Corporation
Diversified Consumer Services
SOFR+640
Tyto Athene, LLC
IT Services
SOFR+490
Urology Management Holdings, Inc.
Healthcare and Pharmaceuticals
SOFR+550
Walker Edison Furniture Company LLC (4)(6)
Wholesale
Walker Edison Furniture Company LLC - Junior Revolving Credit Facility (4)(6)
Wholesale
Walker Edison Furniture Company LLC - DDTL - Unfunded (3)(4)(6)
Wholesale
Watchtower Buyer, LLC
Diversified Consumer Services
SOFR+600
Wildcat Buyerco, Inc.
Electronic Equipment, Instruments, and Components
SOFR+575
Zips Car Wash, LLC
Automobiles
SOFR+740
(PIK 1.50%)
Total First Lien Secured Debt
Equity Securities - 10.5% of Net Assets
New Insight Holdings, Inc.
Diversified Consumer Services
Lucky Bucks, LLC
Hotel, Gaming and Leisure
New MPE Holdings, LLC
Media: Diversified and Production
Output Services Group, Inc
Business Services
Walker Edison Furniture - Common Equity
Wholesale
Total Equity Securities
Total Investments - 1,415.0% of Net Assets (7)(8)
Cash and Cash Equivalents - 106.0% of Net Assets
BlackRock Federal FD Institutional 30 (Money Market Fund)
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents —1,521.0% of Net Assets
Liabilities in Excess of Other Assets — (1,421.0)% of Net Assets
Members' Equity—100.0%
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR". The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSSL’s accounting policy.
Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-accrual security
Partial PIK non-accrual security
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VI, LLC, or, 3) securing the 2036 Asset-Backed Debt and held through PennantPark CLO II, Ltd.
As of September 30, 2024, all investments are in U.S companies. Total cost, fair value, and percentage of Net Assets for the U.S Companies were $929.0 million, $913.3 million and 1,415.0%.
All of our investments are not registered under the 1933 Act and have restrictions on resale.
Below are the consolidated statements of assets and liabilities for PSSL ($ in thousands):
September 30, 2025
September 30, 2024
Assets
Investments at fair value (amortized cost—$1,103,716 and $928,983, respectively)
Cash and cash equivalents (cost—$61,560 and $68,429, respectively)
Interest receivable
Receivable for investments sold
Due from affiliate
Prepaid expenses and other assets
Total assets
Liabilities
Credit facility payable
2035 Asset-backed debt, net (par—$0 and $246,000, respectively) (unamortized deferred financing costs of $0 and $2,066, respectively)
2036 Asset-backed debt, net (par—$246,000) (unamortized deferred financing costs of $1,341 and $1,628, respectively)
2037 Asset-backed debt, net (par—$246,000 and $0, respectively) (unamortized deferred financing costs of $1,904 and $0, respectively)
2037-R Asset-backed debt, net (par—$246,000 and $0, respectively) (unamortized deferred financing costs of $2,518 and $0, respectively)
Notes payable to members
Interest payable on Credit facility and asset backed debt
Payable for investments purchased
Interest payable on notes to members
Accrued expenses
Due to affiliate
Total liabilities
Members' equity
Total liabilities and members' equity
As of both September 30, 2025 and 2024, PSSL had $0.4 million and $0.6 million unfunded commitments to fund investments, respectively.
Below are the consolidated statements of operations for PSSL ($ in thousands):
Year Ended
September 30,
Year Ended
September 30,
Investment income:
Interest
Other income
Total investment income
Expenses:
Interest and expenses on credit facility and asset-backed debt
Interest expense on notes to members
Administration services expenses
Other General and administrative expenses (1)
Expenses before debt issuance costs
Debt issuance costs
Total expenses
Net investment income
Realized and unrealized (loss) gain on investments and debt:
Net realized (loss) gain on investments
Realized loss on debt extinguishment
Net change in unrealized (depreciation) appreciation on investments
Net realized and unrealized gain (loss) on investments and debt
Net increase (decrease) in members' equity resulting from operations
No management or incentive fees are payable by PSSL. If any fees were to be charged, they would be separately disclosed in the Statement of Operations.
Recent Developments
Subsequent to September 30, 2025, PSSL II commenced operations and the Company sold $191 million of assets to PSSL II. Additionally, subsequent to September 30, 2025 the Company sold $118 million of assets to PSSL.
Distributions
In order to be treated as a RIC for federal income tax purposes and to not be subject to corporate-level tax on undistributed income or gains, we are required, under Subchapter M of the Code, to annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of investment company taxable income, determined without regard to any deduction for dividends paid.
Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year an amount at least equal to the Excise Tax Avoidance Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, subject to maintaining our ability to be taxed as a RIC, in order to provide us with additional liquidity.
During the years ended September 30, 2025 and 2024, we declared distributions of $1.23 per share and $1.23 per share, respectively, for total distributions of $113.9 million and $80.6 million, respectively. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the SEC.
We intend to continue to make monthly distributions to our stockholders. Our monthly distributions, if any, are determined by our board of directors quarterly.
On November 22, 2017, we terminated our dividend reinvestment plan. The termination of the plan applies to the reinvestment of cash distributions paid on or after December 22, 2017.
We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage ratio for borrowings applicable to us as a BDC under the 1940 Act and due to provisions in future credit facilities. If we do not distribute at least a certain percentage of our income annually, we could suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions at a particular level.
Recent Accounting Pronouncements
In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The FASB approved an (optional) two year extension to December 31, 2024, for transitioning away from LIBOR. The Company adopted ASU 2020-04, the effect of which was not material to the consolidated financial statements and the notes the
In June 2022, the FASB issued Accounting Standards Update No. 2022-03, or ASU, 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2022-03, which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company has adopted the new accounting standard, the effect of which was not material to the consolidated financial statements and the notes thereto.
In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities' segment disclosure by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosure of a reportable segment's profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning December 15, 2024, and should be applied on a retrospective basis to all periods presented, noting early adoption is permitted. The Company has adopted ASU 2023-07 effective September 30, 2025 and concluded that the application of this guidance did not have a material impact on its consolidated financial statements.
In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 - 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our financial statements.
Item 7A. Quantitative and Qualitat ive Disclosures About Market Risk
We are subject to financial market risks, including changes in interest rates. As of September 30, 2025, our debt portfolio consisted of approximately 99% variable-rate investments. The variable-rate loans are usually based on a SOFR (or an alternative risk-free floating interest rate index) rate and typically have durations of three months, after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In regards to variable-rate instruments with a floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In contrast, our cost of funds, to the extent it is not fixed, will fluctuate with changes in interest rates since it has no floor.
Assuming that the most recent Consolidated Statements of Assets and Liabilities was to remain constant, and no actions were taken to alter the existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:
Change in Interest Rates
Change in Interest Income,
Net of Interest Expense
(in thousands)
Change in Interest Income,
Net of Interest
Expense Per Share
Down 3%
Down 2%
Down 1%
Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in the credit market, credit quality, size and composition of the assets on the Consolidated Statements of Assets and Liabilities and other business developments that could affect net increase in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.
Because we borrow money to make investments, our net investment income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds, as well as our level of leverage. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income or net assets.
We may hedge against interest rate and foreign currency fluctuations by using standard hedging instruments such as futures, options and forward contracts or the Credit Facility subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates and foreign currencies, they may also limit our ability to participate in benefits of lower interest rates or higher exchange rates with respect to our portfolio of investments with fixed interest rates or investments denominated in foreign currencies. During the periods covered by this Report, we did not engage in interest rate hedging activities or foreign currency derivatives hedging activities.
Item 8. Consolidated Financial S tatements and Supplementary Data
Page
Management’s Report on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm (PCAOB ID - 49 )
Consolidated Statements of Assets and Liabilities as of September 30, 2025 and 2024
Consolidated Statements of Operations for the years ended September 30, 2025, 2024 and 2023
Consolidated Statements of Changes in Net Assets for the years ended September 30, 2025, 2024 and 2023
Consolidated Statements of Cash Flows for the years ended September 30, 2025, 2024 and 2023
Consolidated Schedules of Investments as of September 30, 2025 and 2024
Notes to the Consolidated Financial Statements
Management’s Report on Internal Control Over Financial Reporting
The management of PennantPark Floating Rate Capital Ltd. (except where the context suggests otherwise, the terms “we,” “us,” “our” and “PennantPark Floating” refer to PennantPark Floating Rate Capital Ltd. and its Subsidiaries) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f), and for performing an assessment of the effectiveness of internal control over financial reporting as of September 30, 2025. Our internal control system is a process designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.
PennantPark Floating’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions recorded necessary to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles. Our policies and procedures also provide reasonable assurance that receipts and expenditures are being made only in accordance with authorizations of management and the directors of PennantPark Floating, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim consolidated financial statements will not be prevented or detected on a timely basis.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of PennantPark Floating’s internal control over financial reporting as of September 30, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 Internal Control—Integrated Framework. Based on such assessment management has determined that, as of September 30, 2025, we do not maintain effective internal control over financial reporting due to the material weakness described below.
A material weakness was identified in the operations of control related to our quarterly equity valuation review with respect to the allocation of the portfolio company’s enterprise value to our holdings. Although this material weakness did not result in any material misstatement of our consolidated financial statements for the periods presented, there is a possibility they could lead to a material misstatement of account balances or disclosures. Accordingly, management has concluded that this control deficiency constitutes a material weakness.
Management believes that the financial statements included in this Annual Report on Form 10-K present fairly, in all material respects, our financial position, results of its operations, changes in net assets and cash flows for the periods presented. We believe that the audited consolidated financial statements included in this Annual Report on Form 10-K are accurate. We have begun the process of, and we are focused on, further enhancing effective internal control measures to improve our internal control over financial reporting and remediate this material weakness. Our internal control remediation efforts include the following:
Enhance existing review controls of equity investments related to the allocation of the portfolio company’s enterprise value to our holdings to ensure allocations are consistent with the relevant and respective source document; and
Enhancing policies and procedures to demonstrate commitment to improving our overall control environment.
We believe our planned actions to enhance our processes and controls will address the material weakness, but these actions are subject to ongoing management evaluation, and we will need a period of execution to demonstrate remediation. We are committed to the continuous improvement of our internal control over financial reporting and will continue to diligently review our internal control over financial reporting.
PennantPark Floating's independent registered public accounting firm has issued an audit report on the effectiveness of our internal control over financial reporting as of September 30, 2025. This report appears on page 63.
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of
PennantPark Floating Rate Capital Ltd. and Subsidiaries
Opinion on the Internal Control Over Financial Reporting
We have audited PennantPark Floating Rate Capital Ltd. and Subsidiaries (the Company) internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities, including the consolidated schedules of investments, as of September 30, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements) of the Company and our report dated November 24, 2025, expressed an unqualified opinion.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management’s assessment. A material weakness was identified in the operation of controls related to the Company’s quarterly review of equity investment valuations with respect to the allocation of value of the portfolio company to the Company’s holdings. This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2025 financial statements, and this report does not affect our report dated November 24, 2025 on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Controls Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ RSM US LLP
New York, New York
November 24, 2025
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of
PennantPark Floating Rate Capital Ltd. and Subsidiaries
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities of PennantPark Floating Rate Capital Ltd. and Subsidiaries (the Company), including the consolidated schedules of investments, as of September 30, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Our report dated November 24, 2025, expressed an opinion that the Company had not maintained effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2025 and 2024, by correspondence with the custodians, underlying fund advisors, and by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below is a matters arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Level 3 Fair Value Measurements
The fair value of the Company’s investments valued using Level 3 fair value measurements was approximately $2,729.0 million as of September 30, 2025. The fair value of the Company’s financial instruments classified as liabilities valued using Level 3 fair value measurements was approximately $683.8 million as of September 30, 2025. As discussed in Notes 2 and 5 to the consolidated financial statements, the Company’s investment portfolio generally consists of illiquid securities, including debt and equity investments, which were acquired directly from the issuer. Such investments include first lien secured debt, second lien secured debt, subordinated debt and equity investments. Additionally, the Company has elected to apply the fair value option to certain financial instruments classified as liabilities. The inputs into the determination of fair value require significant management judgment or estimation.
We identified Level 3 fair value measurements as a critical audit matter due to the subjective nature of the judgments necessary for management to select valuation techniques and the use of significant unobservable inputs to estimate the fair value. Auditing the reasonableness of management’s selection of valuation technique and the related unobservable inputs required a high degree of auditor judgment and increased audit effort, including the use of a valuation specialist.
The primary procedures we performed to address this critical audit matter included the following, among others:
With the assistance of our valuation specialists, we evaluated the appropriateness of the selected valuation techniques, and any changes to selected valuation techniques from prior periods, used for Level 3 fair value measurements. For a sample of investments, we evaluated both the reasonableness of the significant unobservable inputs and the reasonableness of any significant changes in significant unobservable inputs from prior periods, when applicable, by comparing the unobservable inputs to external sources, including, but not limited to:
Historical operating results of the investee.
Available market data for comparable companies.
Subsequent events and transactions, where available.
We tested both the source information used to determine the unobservable input and the mathematical accuracy of the calculation used to compute the unobservable input for a sample of investments.
/s/ RSM US LLP
We have served as the Company's auditor since 2013.
New York, New York
November 24, 2025
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS O F ASSETS AND LIABILITIES
(in thousands, except per share data)
September 30, 2025
September 30, 2024
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost— $ 2,458,018 and $ 1,622,669 , respectively)
Controlled, affiliated investments (amortized cost— $ 361,375 and $ 372,271 , respectively)
Total investments (amortized cost— $ 2,819,393 and $ 1,994,940 , respectively)
Cash and cash equivalents (cost— $ 122,684 and $ 112,046 , respectively)
Interest receivable
Receivable for investments sold
Distributions receivable
Due from affiliate
Prepaid expenses and other assets
Total assets
Liabilities
Credit Facility payable, at fair value (cost— $ 683,855 and $ 443,855 , respectively)
2026 Notes payable, net (par—$ 185,000 ) (unamortized deferred financing costs of $ 391 and $ 1,168, respectively)
2036 Asset-Backed Debt, net (par—$ 287,000 ) (unamortized deferred financing costs of $ 2,373 and $ 2,914 , respectively)
2036-R Asset-Backed Debt, net (par— $ 266,000 ) (unamortized deferred financing costs of $ 634 and $ 765 , respectively)
2037 Asset-Backed Debt, net (par— $ 361,000 and $ 0 ) (unamortized deferred financing costs of $ 2,669 and $ 0 , respectively)
Payable for investments purchased
Interest payable on debt
Distributions payable
Base management fee payable
Incentive fee payable
Accounts payable and accrued expenses
Deferred tax liability
Due to affiliate
Total liabilities
Commitments and contingencies (See Note 12)
Net assets
Common stock, 99,217,896 and 77,579,896 shares issued and outstanding, respectively
Par value $ 0.001 per share and 200,000,000 shares authorized
Paid-in capital in excess of par value
Accumulated deficit
Total net assets
Total liabilities and net assets
Net asset value per share
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEM ENTS OF OPERATIONS
(in thousands, except per share data)
Years Ended September 30,
Investment income:
From non-controlled, non-affiliated investments:
Interest
Dividend
Other income
From controlled, affiliated investments:
Interest
Dividend
Other income
Total investment income
Expenses:
Interest and expenses on debt
Performance-based incentive fee
Base management fee
General and administrative expenses
Administrative services expenses
Expenses before amendment costs, debt issuance costs and provision for taxes
Provision for taxes on net investment income
Credit Facility amendment costs and debt issuance
Total expenses
Net investment income
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments
Non-controlled and controlled, affiliated investments
Debt extinguishment
Provision for taxes on realized gain on investments
Net realized gain (loss) on investments and debt
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments
Controlled and non-controlled, affiliated investments
Provision for taxes on unrealized appreciation (depreciation) on investments
Debt (appreciation) depreciation
Net change in unrealized appreciation (depreciation) on investments and debt
Net realized and unrealized gain (loss) from investments and debt
Net increase in net assets resulting from operations
Net increase in net assets resulting from operations per common share
Net investment income per common share
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)
Years Ended September 30,
Net increase in net assets from operations:
Net investment income
Net realized gain (loss) on investments
Net realized loss on debt extinguishment
Net change in unrealized appreciation (depreciation) on investments
Net change in provision for taxes on realized and unrealized appreciation (depreciation) on investments
Net change in unrealized appreciation (depreciation) on debt
Net increase in net assets resulting from operations
Distributions to stockholders:
Distribution of net investment income
Total distributions to stockholders
Capital transactions
Public offering
Offering costs
Net increase in net assets resulting from capital transactions
Net increase (decrease) in net assets
Net assets:
Beginning of year
End of year
Capital share activity:
Shares issued from public offering
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEM ENTS OF CASH FLOWS
(in thousands)
Years Ended September 30,
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by (used in) operating activities:
Net change in unrealized (appreciation) depreciation on investments
Net change in unrealized appreciation (depreciation) on debt
Debt extinguishment realized loss
Net realized (gain) loss on investments
Net accretion of discount and amortization of premium
Purchases of investments
Payment-in-kind interest
Proceeds from dispositions of investments
Amortization of deferred financing costs
(Increase) decrease in:
Interest receivable
Receivable from investments sold
Distribution receivable
Prepaid expenses and other assets
Due from affiliate
Increase (decrease) in:
Payable for investments purchased
Interest payable on debt
Base management fee payable
Incentive fee payable
Deferred tax liability
Due to affiliates
Account payable and accrued expenses
Net cash provided by (used in) operating activities
Cash flows from financing activities:
Proceeds from public offering
Offering costs
Issuance of 2036 Asset-Backed Debt
Issuance of 2036-R Asset-Backed Debt
Issuance of 2037 Asset-Backed Debt
Capitalized borrowing costs
Distributions paid to stockholders
Repayment of 2023 notes payable
Repayment of 2031 Asset-Backed Debt
Borrowings under Credit Facility
Repayments under Credit Facility
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Effect of exchange rate changes on cash
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Supplemental disclosures:
Interest paid
Taxes paid
Non-cash exchanges and conversions
Non-cash purchases and disposition of investments
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Investments in Non-Controlled, Non-Affiliated Portfolio Companies - 231.9 % (3), (4)
First Lien Secured Debt - 211.8 % of Net Assets
ACP Avenu Buyer, LLC
IT Services
3M SOFR+ 500
ACP Avenu Buyer, LLC - Unfunded Term Loan (8)
IT Services
ACP Avenu Buyer, LLC - Unfunded Revolver (6), (8)
IT Services
ACP Falcon Buyer, Inc.
Professional Services
3M SOFR+ 550
ACP Falcon Buyer, LLC - Unfunded Revolver (6), (8)
Professional Services
Ad.net Acquisition, LLC
Media
3M SOFR+ 626
Ad.net Acquisition, LLC - Funded Revolver
Media
3M SOFR+ 626
Ad.net Acquisition, LLC - Unfunded Revolver (6), (8)
Media
Aechelon Technology, Inc.
Aerospace and Defense
1M SOFR+ 575
Aechelon Technology, Inc. - Funded Revolver
Aerospace and Defense
1M SOFR+ 650
Aechelon Technology, Inc. - Unfunded Revolver (8)
Aerospace and Defense
AFC-Dell Holding Corp.
Distributors
3M SOFR+ 550
AFC-Dell Holding Corp. - Unfunded Term Loan (8)
Distributors
Alpine Acquisition Corp II (10)
Containers and Packaging
Amsive Holdings Corporation
Media
3M SOFR+ 625
Aphix Buyer, Inc.
Business Services
3M SOFR+ 475
Aphix Buyer, Inc. - Unfunded Term Loan (8)
Business Services
Aphix Buyer, Inc. - Unfunded Revolver (8)
Business Services
APT OPCO, LLC
Healthcare Providers and Services
3M SOFR+ 500
APT OPCO, LLC - Unfunded Term Loan (8)
Healthcare Providers and Services
APT OPCO, LLC - Unfunded Revolver (8)
Healthcare Providers and Services
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media
3M SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media
3M SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Funded Revolver (6)
Media
3M SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Unfunded Revolver (8)
Media
Arcfield Acquisition Corp.
Aerospace and Defense
3M SOFR+ 500
Arcfield Acquisition Corp. - Unfunded Revolver (6), (8)
Aerospace and Defense
Archer Lewis, LLC
Healthcare Technology
3M SOFR+ 575
Archer Lewis, LLC - Unfunded Term Loan (8)
Healthcare Technology
Archer Lewis, LLC - Unfunded Revolver (8)
Healthcare Technology
Argano, LLC
Business Services
3M SOFR+ 575
Argano, LLC - Unfunded Term Loan (8)
Business Services
Argano, LLC – Unfunded Revolver (8)
Business Services
Azureon, LLC (F/K/A Tpcn Midco, LLC)
Diversified Consumer Services
3M SOFR+ 575
Azureon, LLC (F/K/A Tpcn Midco, LLC) - Funded Revolver
Diversified Consumer Services
3M SOFR+ 575
Azureon, LLC (F/K/A Tpcn Midco, LLC) - Unfunded Revolver (8)
Diversified Consumer Services
Beacon Behavioral Support Services, LLC
Healthcare Providers and Services
3M SOFR+ 550
Beacon Behavioral Support Services, LLC - Unfunded Term Loan (8)
Healthcare Providers and Services
Beacon Behavioral Support Services, LLC - Unfunded Term Loan - 3rd Amendment (8)
Healthcare Providers and Services
Beacon Behavioral Support Services, LLC - Unfunded Revolver (8)
Healthcare Providers and Services
Best Practice Associates, LLC
Aerospace and Defense
3M SOFR+ 675
Best Practice Associates, LLC - Unfunded Revolver (8)
Aerospace and Defense
Beta Plus Technologies, Inc.
Internet Software and Services
1M SOFR+ 575
Big Top Holdings, LLC
Construction & Engineering
3M SOFR+ 550
Big Top Holdings, LLC - Unfunded Revolver (8)
Construction & Engineering
Bioderm, Inc.
Healthcare Equipment and Supplies
1M SOFR+ 650
Bioderm, Inc. - Funded Revolver
Healthcare Equipment and Supplies
1M SOFR+ 650
Blackhawk Industrial Distribution, Inc.
Distributors
3M SOFR+ 540
Blackhawk Industrial Distribution, Inc. - Funded Revolver (6)
Distributors
3M SOFR+ 540
Blackhawk Industrial Distribution, Inc. - Unfunded Revolver (8)
Distributors
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
BLC Holding Company, Inc.
Business Services
3M SOFR+ 450
BLC Holding Company, Inc. - Unfunded Term Loan (8)
Business Services
BLC Holding Company, Inc. - Funded Revolver
Business Services
3M SOFR+ 450
BLC Holding Company, Inc. - Unfunded Revolver (8)
Business Services
Blue Cloud Pediatric Surgery Centers LLC
Healthcare Providers and Services
3M SOFR+ 525
Blue Cloud Pediatric Surgery Centers LLC - Unfunded Term Loan (8)
Healthcare Providers and Services
Boss Industries, LLC
Independent Power and Renewable Electricity Producers
3M SOFR+ 500
Boss Industries, LLC - Unfunded Revolver (8)
Independent Power and Renewable Electricity Producers
Burgess Point Purchaser Corporation
Auto Components
3M SOFR+ 535
By Light Professional IT Services, LLC
High Tech Industries
1M SOFR+ 550
By Light Professional IT Services, LLC - Unfunded Revolver (6), (8)
High Tech Industries
Capital Construction, LLC
Consumer Services
Capital Construction, LLC - Unfunded Term Loan (8)
Consumer Services
Carisk Buyer, Inc.
Healthcare Technology
3M SOFR+ 500
Carisk Buyer, Inc. - Unfunded Term Loan (8)
Healthcare Technology
Carisk Buyer, Inc. - Unfunded Revolver (6), (8)
Healthcare Technology
Carnegie Dartlet, LLC
Professional Services
3M SOFR+ 550
Carnegie Dartlet, LLC - Unfunded Term Loan (8)
Professional Services
Carnegie Dartlet, LLC - Unfunded Revolver (8)
Professional Services
Cartessa Aesthetics, LLC
Distributors
3M SOFR+ 600
Cartessa Aesthetics, LLC - Funded Revolver (6)
Distributors
3M SOFR+ 600
Cartessa Aesthetics, LLC - Unfunded Revolver (6), (8)
Distributors
Case Works, LLC
Professional Services
3M SOFR+ 525
Case Works, LLC - Funded Revolver
Professional Services
3M SOFR+ 525
Case Works, LLC - Unfunded Revolver (8)
Professional Services
Cf512, Inc.
Media
3M SOFR+ 619
Cf512, Inc. - Funded Revolver
Media
3M SOFR+ 602
Cf512, Inc. - Unfunded Revolver (6), (8)
Media
CJX Borrower, LLC
Media
3M SOFR+ 576
CJX Borrower, LLC - Unfunded Term Loan (8)
Media
CJX Borrower, LLC - Funded Revolver
Media
3M SOFR+ 576
CJX Borrower, LLC - Unfunded Revolver (8)
Media
Coolsys, Inc.
Commercial Services & Supplies
3M SOFR+ 501
Commercial Fire Protection Holdings, LLC
Commercial Services & Supplies
3M SOFR+ 450
Commercial Fire Protection Holdings, LLC - Unfunded Term Loan (8)
Commercial Services & Supplies
Commercial Fire Protection Holdings, LLC - Unfunded Revolver (8)
Commercial Services & Supplies
Compex Legal Services, Inc.
Professional Services
3M SOFR+ 555
Compex Legal Services, Inc. - Funded Revolver
Professional Services
3M SOFR+ 555
Compex Legal Services, Inc. - Unfunded Revolver (6), (8)
Professional Services
Confluent Health, LLC
Healthcare Providers and Services
1M SOFR+ 400
Cornerstone Advisors of Arizona, LLC
Consulting Services
3M SOFR+ 475
Cornerstone Advisors of Arizona, LLC - Unfunded Revolver (8)
Consulting Services
Crane 1 Services, Inc.
Commercial Services & Supplies
3M SOFR+ 575
Crane 1 Services, Inc. - Unfunded Revolver (6), (8)
Commercial Services & Supplies
C5MI Acquisition, LLC
IT Services
3M SOFR+ 600
C5MI Acquisition, LLC - Unfunded Revolver (8)
IT Services
DRI Holding Inc.
Media
1M SOFR+ 535
DRS Holdings III, Inc.
Chemicals, Plastics and Rubber
3M SOFR+ 525
DRS Holdings III, Inc. - Unfunded Revolver (6), (8)
Personal Products
Duggal Acquisition, LLC
Marketing Services
3M SOFR+ 475
Duggal Acquisition, LLC - Unfunded Term Loan (8)
Marketing Services
Duggal Acquisition, LLC - Unfunded Revolver (8)
Marketing Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Dynata, LLC - First Out Term Loan
Business Services
3M SOFR+ 526
Dynata, LLC - Last Out Term Loan
Business Services
3M SOFR+ 576
Emergency Care Partners, LLC
Healthcare Providers and Services
3M SOFR+ 500
Emergency Care Partners, LLC - Unfunded Term Loan (8)
Healthcare Providers and Services
Emergency Care Partners, LLC - Unfunded Revolver (8)
Healthcare Providers and Services
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
3M SOFR+ 475
EDS Buyer, LLC. - Unfunded Revolver (6), (8)
Electronic Equipment, Instruments, and Components
Efficient Collaborative Retail Marketing Company, LLC
Media: Diversified and Production
3M SOFR+ 675
(PIK 3.75 %)
ETE Intermediate II, LLC
Diversified Consumer Services
3M SOFR+ 500
ETE Intermediate II, LLC - Funded Revolver
Diversified Consumer Services
3M SOFR+ 500
ETE Intermediate II, LLC - Unfunded Revolver (8)
Diversified Consumer Services
Eval Home Care Solutions Intermediate, LLC
Healthcare, Education and Childcare
1M SOFR+ 575
Eval Home Care Solutions Intermediate, LLC - Unfunded Revolver (8)
Healthcare, Education and Childcare
Exigo Intermediate II, LLC
Software
1M SOFR+ 635
Exigo Intermediate II, LLC - Unfunded Revolver (8)
Software
Express Wash Acquisition Company, LLC
Automobiles
3M SOFR+ 625
Express Wash Acquisition Company, LLC - Unfunded Revolver (8)
Automobiles
First Medical MSO, LLC
Healthcare Providers and Services
First Medical MSO, LLC - Unfunded Term Loan (8)
Healthcare Providers and Services
First Medical MSO, LLC - Unfunded Revolver (6) (8)
Healthcare Providers and Services
Five Star Buyer, Inc.
Hotels, Restaurants and Leisure
3M SOFR+ 715
(PIK 1.00 %)
Five Star Buyer, Inc. - Unfunded Revolver (8)
Hotels, Restaurants and Leisure
Gauge ETE Blocker, LLC
Diversified Consumer Services
GGG Midco, LLC
Diversified Consumer Services
3M SOFR+ 500
GGG Midco, LLC - Unfunded Term Loan (8)
Diversified Consumer Services
GGG Midco, LLC – Unfunded Revolver (8)
Diversified Consumer Services
Global Holdings InterCo, LLC
Diversified Financial Services
1M SOFR+ 560
Graffiti Buyer, Inc.
Trading Companies & Distributors
3M SOFR+ 560
Graffiti Buyer, Inc. - Unfunded Term Loan (8)
Trading Companies & Distributors
Graffiti Buyer, Inc. - Funded Revolver
Trading Companies & Distributors
Graffiti Buyer, Inc. - Unfunded Revolver (6), (8)
Trading Companies & Distributors
Hancock Roofing and Construction, LLC
Insurance
3M SOFR+ 560
Hancock Roofing and Construction, LLC - Funded Revolver (6)
Insurance
3M SOFR+ 560
Halo Buyer, Inc.
Consumer products
1M SOFR+ 600
Halo Buyer, Inc. - Funded Revolver
Consumer products
1M SOFR+ 600
Halo Buyer, Inc. - Unfunded Revolver (8)
Consumer products
Harris & Co. LLC
Professional Services
3M SOFR+ 500
Harris & Co. LLC. - Unfunded Term Loan B (8)
Professional Services
Harris & Co. LLC - Unfunded Term Loan C (8)
Professional Services
Harris & Co. LLC - Funded Revolver
Professional Services
1M SOFR+ 500
Harris & Co. LLC - Unfunded Revolver (8)
Professional Services
HEC Purchaser Corp.
Healthcare, Education and Childcare
3M SOFR+ 500
Help/Systems Holdings, Inc.
Software
3M SOFR+ 410
Hills Distribution, Inc.
Distributors
1M SOFR+ 600
Hills Distribution, Inc. - Unfunded Term Loan (8)
Distributors
HW Holdco, LLC
Media
3M SOFR+ 590
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
HW Holdco, LLC - Unfunded Revolver (6), (8)
Media
IG Investments Holdings, LLC (6)
Professional Services
3M SOFR+ 500
IG Investments Holdings, LLC - Unfunded Revolver (6), (8)
Professional Services
Imagine Acquisitionco, Inc. - Unfunded Revolver (8)
Software
Impact Advisors, LLC
Business Services
3M SOFR+ 450
Impact Advisors, LLC - Unfunded Term Loan (8)
Business Services
Impact Advisors, LLC - Unfunded Revolver (8)
Business Services
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
3M SOFR+ 600
Infinity Home Services Holdco, Inc. (CAD)
Commercial Services & Supplies
3M SOFR+ 600
CAD 1,704
Infinity Home Services Holdco, Inc. - Unfunded Term Loan (8)
Commercial Services & Supplies
Infinity Home Services Holdco, Inc. - Funded Revolver
Commercial Services & Supplies
Infinity Home Services Holdco, Inc. - Unfunded Revolver (8)
Commercial Services & Supplies
Inovex Information Systems Incorporated
Software
3M SOFR+ 525
Inovex Information Systems Incorporated - Unfunded Term Loan (8)
Software
Inovex Information Systems Incorporated - Unfunded Revolver (8)
Software
Infolinks Media Buyco, LLC
Media
3M SOFR+ 550
Inventus Power, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 761
Inventus Power, Inc. - Funded Revolver
Electronic Equipment, Instruments, and Components
3M SOFR+ 761
Inventus Power, Inc. - Unfunded Revolver (8)
Electronic Equipment, Instruments, and Components
Keel Platform, LLC
Metals and Mining
3M SOFR+ 475
Keel Platform, LLC - Unfunded Term Loan (8)
Metals and Mining
Kinetic Purchaser, LLC
Personal Products
3M SOFR+ 615
Kinetic Purchaser, LLC - Funded Revolver
Personal Products
3M SOFR+ 615
Kinetic Purchaser, LLC - Unfunded Revolver (6), (8)
Personal Products
Lash OpCo, LLC
Personal Products
1M SOFR+ 785
(PIK 5.10 %)
Lash OpCo, LLC - Funded Revolver (6)
Personal Products
1M SOFR+ 785
(PIK 5.10 %)
Lash OpCo, LLC - Unfunded Revolver (6) (8)
Personal Products
LAV Gear Holdings, Inc.
Capital Equipment
(PIK 3.44 %)
LAV Gear Holdings, Inc. - Incremental TL
Capital Equipment
(PIK 3.44 %)
LAV Gear Holdings, Inc. - Unfunded Revolver (6) (8)
Capital Equipment
Ledge Lounger, Inc.
Leisure Products
3M SOFR+ 765
(PIK 1.00 %)
Ledge Lounger, Inc. - Funded Revolver
Leisure Products
3M SOFR+ 765
(PIK 1.00 %)
Lightspeed Buyer, Inc.
Healthcare Technology
3M SOFR+ 475
Lightspeed Buyer, Inc. - Unfunded Revolver (6), (8)
Healthcare Technology
LJ Avalon Holdings, LLC
Construction & Engineering
3M SOFR+ 450
LJ Avalon Holdings, LLC - Unfunded Term Loan (8)
Construction & Engineering
LJ Avalon Holdings, LLC - Unfunded Revolver (6), (8)
Construction & Engineering
Loving Tan Intermediate II, Inc.
Personal Products
3M SOFR+ 500
Loving Tan Intermediate II, Inc. - Unfunded Term Loan (8)
Personal Products
Loving Tan Intermediate II, Inc. - Funded Revolver
Personal Products
3M SOFR+ 500
Loving Tan Intermediate II, Inc. - Unfunded Revolver (8)
Personal Products
Lucky Bucks, LLC - First-Out Term Loan
Hotels, Restaurants and Leisure
1M SOFR+ 765
Lucky Bucks, LLC - Last-Out Term Loan
Hotels, Restaurants and Leisure
1M SOFR+ 765
MAG DS Corp.
Aerospace and Defense
3M SOFR+ 560
Marketplace Events Acquisition, LLC
Media
3M SOFR+ 525
Marketplace Events Acquisition, LLC - Unfunded Term Loan (8)
Media
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Marketplace Events Acquisition, LLC - Funded Revolver
Media
Marketplace Events Acquisition, LLC - Unfunded Revolver (8)
Media
MBS Holdings, Inc.
Internet Software and Services
3M SOFR+ 510
MBS Holdings, Inc. - Unfunded Revolver (6), (8)
Internet Software and Services
MDI Buyer, Inc.
Commodity Chemicals
3M S OFR+ 475
MDI Buyer, Inc. - Unfunded Term Loan (8)
Commodity Chemicals
MDI Buyer, Inc. - Funded Revolver
Commodity Chemicals
3M SOFR+ 375
MDI Buyer, Inc. - Unfunded Revolver (6), (8)
Commodity Chemicals
Meadowlark Acquirer, LLC
Professional Services
3M SOFR+ 565
Meadowlark Acquirer, LLC - Funded Revolver
Professional Services
3M SOFR+ 565
Meadowlark Acquirer, LLC - Unfunded Revolver (8)
Professional Services
Medina Health, LLC
Healthcare Providers and Services
3M SOFR+ 625
Medina Health, LLC - Unfunded Revolver (8)
Healthcare Providers and Services
Megawatt Acquisitionco, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 550
Megawatt Acquisitionco, Inc. - Funded Revolver
Electronic Equipment, Instruments, and Components
3M SOFR+ 550
Megawatt Acquisitionco, Inc. - Unfunded Revolver (8)
Electronic Equipment, Instruments, and Components
MOREgroup Holdings, Inc.
Construction & Engineering
3M SOFR+ 525
MOREgroup Holdings, Inc. - Unfunded Term Loan (8)
Construction & Engineering
MOREgroup Holdings, Inc. - Unfunded Revolver (8)
Construction & Engineering
Municipal Emergency Services, Inc.
Distributors
3M SOFR+ 515
Municipal Emergency Services, Inc. - Unfunded Term Loan (8)
Distributors
Municipal Emergency Services, Inc. - Unfunded Revolver (6), (8)
Distributors
NBH Group, LLC
Healthcare Equipment and Supplies
1M SOFR+ 585
NBH Group, LLC - Unfunded Revolver (6), (8)
Healthcare Equipment and Supplies
NORA Acquisition, LLC
Healthcare Providers and Services
3M SOFR+ 635
NORA Acquisition, LLC - Funded Revolver
Healthcare Providers and Services
3M SOFR+ 635
NORA Acquisition, LLC - Unfunded Revolver (6), (8)
Healthcare Providers and Services
North American Rail Solutions, LLC
Manufacturing/Basic Industry
3M SOFR+ 475
North American Rail Solutions, LLC - Unfunded Term Loan (8)
Manufacturing/Basic Industry
North American Rail Solutions, LLC - Funded Revolver
Manufacturing/Basic Industry
3M SOFR+ 475
North American Rail Solutions, LLC - Unfunded Revolver (8)
Manufacturing/Basic Industry
Omnia Exterior Solutions, LLC
Diversified Consumer Services
3M SOFR+ 525
Omnia Exterior Solutions, LLC - Unfunded Term Loan (8)
Diversified Consumer Services
Omnia Exterior Solutions, LLC - Funded Revolver
Diversified Consumer Services
1M SOFR + 525
Omnia Exterior Solutions, LLC - Unfunded Revolver (6), (8)
Diversified Consumer Services
One Stop Mailing, LLC
Air Freight and Logistics
3M SOFR+ 636
ORL Acquisition, Inc. (6)
Consumer Finance
3M SOFR+ 940
(PIK 7.50 %)
ORL Acquisition, Inc. - Unfunded Revolver (6), (8)
Consumer Finance
OSP Embedded Purchaser, LLC
Aerospace and Defense
3M SOFR+ 575
OSP Embedded Purchaser, LLC - Unfunded Revolver (8)
Aerospace and Defense
Output Services Group, Inc. - First-out Term Loan
Business Services
3M SOFR+ 843
Output Services Group, Inc. - Last-out Term Loan
Business Services
3M SOFR+ 668
Pacific Purchaser, LLC
Professional Services
3M SOFR+ 625
Pacific Purchaser, LLC - Unfunded Revolver (8)
Professional Services
PAR Excellence Holdings, Inc.
Healthcare Technology
3M SOFR+ 500
PAR Excellence Holdings, Inc. - Unfunded Revolver (8)
Healthcare Technology
Paving Lessor Corp.
Business Services
Paving Lessor Corp. - Unfunded Term Loan (8)
Business Services
Paving Lessor Corp. - Unfunded Revolver (8)
Business Services
Peninsula Pacific Entertainment, LLC
Gaming
3M SOFR+ 475
Peninsula Pacific Entertainment, LLC - Unfunded Term Loan (8)
Gaming
Penta Group Holdings, Inc.
Professional Services
Penta Group Holdings, Inc. - Unfunded Term Loan (8)
Professional Services
Penta Group Holdings, Inc. - Funded Revolver
Professional Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Penta Group Holdings, Inc. - Unfunded Revolver (8)
Professional Services
PCS MIDCO, Inc.
Professional Services
3M SOFR+ 575
PCS MIDCO, Inc. - Unfunded Term Loan (8)
Professional Services
PCS MIDCO, Inc. - Unfunded Revolver (8)
Professional Services
PL Acquisitionco, LLC (12)
Textiles, Apparel and Luxury Goods
PL Acquisitionco, LLC - Funded Revolver (12)
Textiles, Apparel and Luxury Goods
PL Acquisitionco, LLC - Unfunded Revolver (8) (12)
Textiles, Apparel and Luxury Goods
PlayPower, Inc.
Leisure Products
1M SOFR+ 525
PlayPower, Inc. - Unfunded Revolver (8)
Leisure Products
Podean Buyer, LLC
Marketing Services
3M SOFR+ 600
Podean Buyer, LLC - Unfunded Revolver (8)
Marketing Services
Project Granite Buyer, Inc.
Professional Services
3M SOFR+ 575
Project Granite Buyer, Inc. - Unfunded Term Loan (8)
Professional Services
Project Granite Buyer, Inc. - Unfunded Revolver (8)
Professional Services
Pragmatic Institute, LLC
Professional Services
Rancho Health MSO, Inc.
Healthcare Equipment and Supplies
3M SOFR+ 500
Rancho Health MSO, Inc. - Unfunded Term Loan (8)
Healthcare Equipment and Supplies
Rancho Health MSO, Inc. - Funded Revolver (6)
Healthcare Equipment and Supplies
3M SOFR+ 500
Rancho Health MSO, Inc. - Unfunded Revolver (6), (8)
Healthcare Equipment and Supplies
Recteq, LLC
Leisure Products
3M SOFR+ 640
Recteq, LLC - Funded Revolver
Leisure Products
3M SOFR+ 625
Recteq, LLC - Unfunded Revolver (6), (8)
Leisure Products
Rosco Parent, LLC
Business Services
Rosco Parent, LLC - Unfunded Revolver (8)
Business Services
Riverpoint Medical, LLC
Healthcare Equipment and Supplies
3M SOFR+ 475
Riverpoint Medical, LLC - Unfunded Revolver (6), (8)
Healthcare Equipment and Supplies
Ro Health, LLC
Healthcare Providers and Services
3M SOFR+ 450
Ro Health, LLC - Funded Revolver
Healthcare Providers and Services
3M SOFR+ 500
Ro Health, LLC - Unfunded Revolver (8)
Healthcare Providers and Services
RRA Corporate, LLC
Diversified Consumer Services
3M SOFR+ 500
RRA Corporate, LLC - Unfunded Term Loan (8)
Diversified Consumer Services
RRA Corporate, LLC - Funded Revolver
Diversified Consumer Services
3M SOFR+ 525
RRA Corporate, LLC - Unfunded Revolver (8)
Diversified Consumer Services
RTIC Subsidiary Holdings, LLC
Leisure Products
3M SOFR+ 575
RTIC Subsidiary Holdings, LLC - Funded Revolver
Leisure Products
3M SOFR+ 575
RTIC Subsidiary Holdings, LLC - Unfunded Revolver (8)
Leisure Products
Rural Sourcing Holdings, Inc.
Professional Services
3M SOFR+ 575
Rural Sourcing Holdings, Inc. - Funded Revolver
Professional Services
3M SOFR+ 575
Rural Sourcing Holdings, Inc. - Unfunded Revolver (6), (8)
Professional Services
Sabel Systems Technology Solutions, LLC
Government Services
3M SOFR+ 575
Sabel Systems Technology Solutions, LLC - Funded Revolver
Government Services
3M SOFR+ 525
Sabel Systems Technology Solutions, LLC - Unfunded Revolver (8)
Government Services
Safe Haven Defense US, LLC
Building Products
3M SOFR+ 525
Safe Haven Defense US, LLC - Unfunded Revolver (8)
Building Products
Sales Benchmark Index, LLC
Professional Services
3M SOFR+ 600
Sales Benchmark Index, LLC - Funded Revolver
Professional Services
3M SOFR+ 520
Sales Benchmark Index, LLC - Unfunded Revolver (6), (8)
Professional Services
Sath Industries, LLC
Event Services
3M SOFR+ 550
Sath Industries, LLC - Unfunded Revolver (8)
Event Services
Schlesinger Global, Inc.
Professional Services
3M SOFR+ 860
(PIK 5.85 %)
Schlesinger Global, Inc. - Funded Revolver
Professional Services
3M SOFR+ 860
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
(PIK 5.85 %)
Schlesinger Global, Inc. - Unfunded Revolver (6), (8)
Professional Services
Seacoast Service Partners NA, LLC
Diversified Consumer Services
3M SOFR+ 500
Seacoast Service Partners NA, LLC - Unfunded Term Loan (8)
Diversified Consumer Services
Seacoast Service Partners NA, LLC - Funded Revolver
Diversified Consumer Services
3M SOFR+ 500
Seacoast Service Partners NA, LLC - Unfunded Revolver (8)
Diversified Consumer Services
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
3M SOFR+ 615
Sigma Defense Systems, LLC
IT Services
3M SOFR+ 615
Sigma Defense Systems, LLC - Funded Revolver
IT Services
3M SOFR+ 690
Sigma Defense Systems, LLC - Unfunded Revolver (6), (8)
IT Services
Smartronix, LLC
Aerospace and Defense
1M SOFR+ 450
Smile Brands, Inc.
Healthcare and Pharmaceuticals
1M SOFR+ 610
(PIK 1.50 %)
Smile Brands, Inc. - Funded Revolver
Healthcare and Pharmaceuticals
1M SOFR+ 610
Smile Brands, Inc. - Unfunded Revolver (6), (8)
Healthcare and Pharmaceuticals
Smile Brands, Inc. - Unfunded Revolver - LC (6) (8)
Healthcare and Pharmaceuticals
Spendmend Holdings, LLC
Healthcare Technology
3M SOFR+ 515
Spendmend Holdings, LLC - Unfunded Term Loan (8)
Healthcare Technology
Spendmend Holdings, LLC - Funded Revolver
Healthcare Technology
3M SOFR+ 515
Spendmend Holdings, LLC - Unfunded Revolver (8)
Healthcare Technology
STG Distribution, LLC - First Out New Money Term Loans
Air Freight and Logistics
1M SOFR+ 835
STG Distribution, LLC - Second Out Term Loans (12)
Air Freight and Logistics
SV-Aero Holdings, LLC
Aerospace and Defense
3M SOFR+ 500
SV-Aero Holdings, LLC - Unfunded Term Loan (8)
Aerospace and Defense
Symplr Software, Inc.
Software
3M SOFR+ 460
Systems Planning And Analysis, Inc.
Aerospace and Defense
3M SOFR+ 475
Systems Planning And Analysis, Inc. - Funded Revolver
Aerospace and Defense
3M SOFR+ 475
Systems Planning And Analysis, Inc. - Unfunded Term Loan (8)
Aerospace and Defense
Systems Planning And Analysis, Inc. - Unfunded Revolver (8)
Aerospace and Defense
TCG 3.0 Jogger Acquisitionco, Inc.
Media
3M SOFR+ 650
TCG 3.0 Jogger Acquisitionco, Inc. - Funded Revolver
Media
3M SOFR+ 550
TCG 3.0 Jogger Acquisitionco, Inc. - Unfunded Revolver (8)
Media
Team Services Group, LLC
Healthcare Providers and Services
3M SOFR+ 525
The Bluebird Group, LLC
Professional Services
3M SOFR+ 590
The Bluebird Group, LLC - Unfunded Revolver (6), (8)
Professional Services
The Vertex Companies, LLC (6)
Construction & Engineering
1M SOFR+ 495
The Vertex Companies, LLC - Funded Revolver
Construction & Engineering
1M SOFR+ 495
The Vertex Companies, LLC - Unfunded Revolver (6), (8)
Construction & Engineering
TMII Enterprises, LLC
Commercial Services & Supplies
3M SOFR+ 450
TMII Enterprises, LLC - Unfunded Revolver (6), (8)
Commercial Services & Supplies
TPC US Parent, LLC
Food Products
3M SOFR+ 590
TransGo, LLC
Auto Components
3M SOFR+ 575
TransGo, LLC - Unfunded Revolver (6), (8)
Auto Components
Tyto Athene, LLC
IT Services
3M SOFR+ 490
US Fertility Enterprises, LLC
Healthcare Providers and Services
1M SOFR+ 450
Urology Management Holdings, Inc.
Healthcare Providers and Services
1M SOFR+ 550
Urology Management Holdings, Inc. - Unfunded Term Loan (8)
Healthcare Providers and Services
Walker Edison Furniture Company, LLC - New Money DIP
Wholesale
Walker Edison Furniture Company, LLC - Unfunded Term Loan (8)
Wholesale
Watchtower Buyer, LLC
Electronic Equipment, Instruments, and Components
3M SOFR+ 600
Watchtower Buyer, LLC - Unfunded Revolver (8)
Electronic Equipment, Instruments, and Components
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Wash & Wax Systems, LLC
Consumer Services
3M SOFR+ 550
Wash & Wax Systems, LLC - Funded Revolver
Consumer Services
3M SOFR+ 550
Wash & Wax Systems, LLC - Unfunded Revolver (6) (8)
Consumer Services
Total First Lien Secured Debt
Second Lien Secured Debt - 0.1 % of Net Assets
Team Services Group, LLC - 2nd Lien
Healthcare Providers and Services
3M SOFR+ 926
Total Second Lien Secured Debt
Subordinate Debt - 1.7 % of Net Assets
Beacon Behavioral Holdings, LLC
Healthcare Providers and Services
Integrative Nutrition, LLC - Promissory Note #1
Consumer Services
Integrative Nutrition, LLC - Promissory Note #2
Consumer Services
ORL Holdco, Inc. - Convertible Notes
Consumer Finance
ORL Holdco, Inc. - Unfunded Convertible Notes (8)
Consumer Finance
OSP Embedded Purchaser, LP - Convertible Note
Aerospace and Defense
Schlesinger Global, LLC - Promissory Note
Professional Services
3M SOFR+ 860
StoicLane, Inc. - Convertible Notes
Healthcare Technology
StoicLane, Inc. - Unfunded Convertible Notes (8)
Healthcare Technology
Wash & Wax Systems, LLC - Subordinate Debt
Consumer Services
Total Subordinate Debt
Preferred Equity - 1.9 % of Net Assets (5)
Accounting Platform Holdings, Inc. - Preferred Equity - Series A
Professional Services
Ad.Net Holdings, Inc. - Preferred Equity
Media
AFC Acquisitions, Inc. Preferred Equity - Series F-2 (7)
Distributors
AFC Acquisitions, Inc. Preferred Equity - Series G-2 (7)
Distributors
AFC Acquisitions, Inc. Preferred Equity - Series H-2 (7)
Distributors
AFC Acquisitions, Inc. Preferred Equity - Series I-2 (7)
Distributors
AFC Acquisitions, Inc. Preferred Equity - Series J-2 (7)
Distributors
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) - Preferred Equity (6), (7)
Media
BioDerm Holdings, LP - Preferred Equity
Healthcare Equipment and Supplies
Cartessa Aesthetics, LLC - Preferred Equity (7)
Distributors
Connatix Parent, LLC
Media
Consello Pacific Aggregator, LLC - Preferred Equity (7)
Professional Services
C5MI Holdco, LLC - Preferred Equity (7)
IT Services
EvAL Home Health Solutions, LLC (7)
Healthcare, Education and Childcare
Five Star Parent Holdings, LLC - Preferred (Class P)
Hotels, Restaurants and Leisure
Gauge Schlesinger Coinvest, LLC - Preferred Equity
Professional Services
Hancock Claims Consultants Investors, LLC - Preferred Equity (7)
Insurance
HPA SPQ Aggregator, LP - Preferred Equity
Professional Services
Imagine Topco. LP - Preferred Equity
Software
Magnolia Topco, LP - Preferred Equity - Class A (7)
Automobiles
Magnolia Topco, LP - Preferred Equity - Class A-1 (7)
Automobiles
Magnolia Topco, LP - Preferred Equity - Class B (7)
Automobiles
Megawatt Acquisition Partners, LLC - Preferred Equity - Class A
Electronic Equipment, Instruments, and Components
NXOF Holdings, Inc. - Preferred Equity
IT Services
ORL Holdco, Inc. - Preferred Equity
Consumer Finance
Pink Lily Holdco, LLC - Preferred Equity - Class A-1 (7)
Textiles, Apparel and Luxury Goods
RTIC Parent Holdings, LLC - Preferred Equity - Class A (7)
Leisure Products
RTIC Parent Holdings, LLC - Preferred Equity - Class C (7)
Leisure Products
RTIC Parent Holdings, LLC - Preferred Equity - Class D (7)
Leisure Products
SP L2 Holdings, LLC - Preferred Equity
Leisure Products
SP L2 Holdings, LLC - Unfunded Preferred Equity (8)
Leisure Products
TPC Holding Company, LP - Preferred Equity
Food Products
TWD Parent Holdings, LLC - Preferred Equity
Construction & Engineering
UniTek Global Services, Inc. - Super Senior Preferred Equity
Telecommunications
UniTek Global Services, Inc. - Senior Preferred Equity
Telecommunications
UniTek Global Services, Inc. - Preferred Equity
Telecommunications
Total Preferred Equity
Common Equity/Warrants - 16.4 % of Net Assets (5)
A1 Garage Equity, LLC - Common Equity (7)
Commercial Services & Supplies
48Forty Intermediate Holdings, Inc. - Common Equity
Business Services
ACP Big Top Holdings, LP - Common Equity
Construction & Engineering
Ad.Net Holdings, Inc. - Common Equity
Media
Aechelon InvestCo, LP
Aerospace and Defense
Aechelon InvestCo, LP - Unfunded Common Equity (8)
Aerospace and Defense
Aftermarket Drivetrain Products Holdings, LLC - Common Equity
Auto Components
AG Investco - Common Equity (6), (7)
Software
AG Investco - Unfunded Common Equity (7), (8)
Software
Altamira Parent Holdings, LLC - Common Equity
IT Services
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) - Common Equity (7)
Media
Athletico Holdings, LLC - Common Equity (7)
Healthcare Providers and Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Aphix Topco, Inc. - Common Equity
Business Services
APT Holdings, LLC - Common Equity (7)
Healthcare Providers and Services
Azureon Holdings, LLC (7)
Diversified Consumer Services
BioDerm Holdings, LP - Common Equity
Healthcare Equipment and Supplies
Burgess Point Holdings, LP - Common Equity
Auto Components
By Light Investco LP - Common Equity (7)
High Tech Industries
Carisk Parent, LP - Common Equity
Healthcare Technology
Carnegie HoldCo, LLC (7)
Professional Services
Connatix Parent, LLC - Common Equity
Media
Crane 1 Acquisition Parent Holdings, LP - Common Equity
Commercial Services & Supplies
C5MI Holdco, LLC - Common Equity (7)
IT Services
Delta InvestCo, LP - Common Equity (7)
IT Services
Delta InvestCo, LP - Unfunded Common Equity (7), (8)
IT Services
Duggal Equity, LP - Common Equity
Marketing Services
EDS Topco, LP - Common Equity
Electronic Equipment, Instruments, and Components
Events TopCo, LP - Common Equity
Event Services
Exigo, LLC - Common Equity
Software
FedHC InvestCo, LP - Common Equity (7)
Aerospace and Defense
FedHC InvestCo, LP - Unfunded Common Equity (7), (8)
Aerospace and Defense
First Medical Holdings, LLC - Common Equity
Healthcare Providers and Services
Five Star Parent Holdings, LLC - Common Equity
Hotels, Restaurants and Leisure
Gauge ETE Blocker, LLC - Common Equity
Diversified Consumer Services
Gauge Lash Coinvest, LLC - Common Equity
Personal Products
Gauge Loving Tan, LP - Common Equity
Personal Products
Gauge Schlesinger Coinvest, LLC - Common Equity
Professional Services
GCP Boss Holdco, LLC
Independent Power and Renewable Electricity Producers
GCOM InvestCo, LP - Common Equity
IT Services
GGG Topco, LLC (7)
Diversified Consumer Services
GMP Hills, LP - Common Equity
Distributors
Hancock Claims Consultants Investors, LLC - Common Equity (7)
Insurance
HPA SPQ Aggregator, LP - Common Equity
Professional Services
HV Watterson Holdings, LLC - Common Equity
Professional Services
Icon Partners V C, LP - Common Equity
Internet Software and Services
Icon Partners V C, LP - Unfunded Common Equity (8)
Internet Software and Services
Imagine Topco. LP - Common Equity
Software
IHS Parent Holdings, LP - Common Equity
Commercial Services & Supplies
Ironclad Holdco, LLC - Common Equity
Commercial Services & Supplies
ITC Infusion Co-invest, LP - Common Equity (7)
Healthcare Equipment and Supplies
Kinetic Purchaser, LLC - Common Equity - Class A
Personal Products
Kinetic Purchaser, LLC - Common Equity - Class AA
Personal Products
KL Stockton Co-Invest, LP - Common Equity (7)
Energy Equipment and Services
Lightspeed Investment Holdco, LLC - Common Equity (6)
Healthcare Technology
LJ Avalon, LP - Common Equity
Construction & Engineering
Lucky Bucks Holdco, LLC - Common Equity
Hotels, Restaurants and Leisure
Marketplace Events Acquisition, LLC - Common Equity
Media: Diversified and Production
Magnolia Topco, LP - Common Equity - Class A (7)
Automobiles
Magnolia Topco, LP - Common Equity - Class B (7)
Automobiles
MDI Aggregator, LP - Common Equity
Commodity Chemicals
Meadowlark Title, LLC - Common Equity (7)
Professional Services
Megawatt Acquisition Partners, LLC - Common Equity - Class A
Electronic Equipment, Instruments, and Components
Municipal Emergency Services, Inc. - Common Equity
Distributors
NEPRT Parent Holdings, LLC - Common Equity (7)
Leisure Products
New Insight Holdings, Inc. (6)
Business Services
New Medina Health, LLC - Common Equity (7)
Healthcare Providers and Services
NFS - CFP Holdings LLC - Common Equity
Commercial Services & Supplies
NORA Parent Holdings, LLC - Common Equity (7)
Healthcare Providers and Services
North Haven Saints Equity Holdings, LP - Common Equity (7)
Healthcare Technology
NXOF Holdings, Inc. - Common Equity
IT Services
OceanSound Discovery Equity, LP - Common Equity (7)
Aerospace and Defense
OES Co-Invest, LP - Common Equity - Class A
Diversified Consumer Services
OHCP V BC COI, LP - Common Equity
Distributors
OHCP V BC COI, LP - Unfunded Common Equity (8)
Distributors
ORL Holdco, Inc. - Common Equity
Consumer Finance
OSP Embedded Aggregator, LP - Common Equity
Aerospace and Defense
Output Services Group, Inc. - Common Equity (6)
Business Services
OSP PAR Aggregator, LP - Common Equity
Healthcare Technology
Paving Parent, LLC - Common Equity
Business Services
Penta Group Holdings, Inc. - Common Equity
Professional Services
PCS Parent, LP
Professional Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
Issuer Name
Acquisition
Maturity
Industry
Current Coupon
Basis Point Spread Above Index (1)
Par / Shares
Cost
Fair Value (2)
Pink Lily Holdco, LLC - Common Equity (7)
Textiles, Apparel and Luxury Goods
Podean Intermediate II, LLC - Common Equity
Marketing Services
Pragmatic Holdco, Inc. - Common Equity
Professional Services
Project Granite Holdings, LLC
Professional Services
Quad (U.S.) Co-Invest, LP - Common Equity
Professional Services
QuantiTech InvestCo, LP - Common Equity (7)
Aerospace and Defense
QuantiTech InvestCo, LP - Unfunded Common Equity (7) (8)
Aerospace and Defense
QuantiTech InvestCo II, LP - Common Equity (7)
Aerospace and Defense
RFMG Parent, LP - Common Equity
Healthcare Equipment and Supplies
Ro Health Holdings, Inc. - Common Equity
Healthcare Providers and Services
Rosco Topco, LLC - Common Equity
Business Services
Safe Haven Defense Holdco, LLC - Common Equity (7)
Building Products
SBI Holdings Investments, LLC - Common Equity
Professional Services
Sabel InvestCo, LP. - Common Equity (7)
Government Services
Sabel InvestCo, LP. - Unfunded Common Equity (7) , (8)
Government Services
Seaway Topco, LP - Common Equity
Chemicals, Plastics and Rubber
Seacoast Service Partners, LLC - Common Equity
Diversified Consumer Services
SP L2 Holdings, LLC - Common Equity
Leisure Products
SSC Dominion Holdings, LLC - Common Equity - Class B (US Dominion, Inc.) (6)
Capital Equipment
StellPen Holdings, LLC (CF512, Inc.) - Common Equity
Media
SV-Aero Holdings, LLC - Common Equity (7)
Aerospace and Defense
TAC Lifeport Holdings, LLC - Common Equity (7)
Aerospace and Defense
TCG 3.0 Jogger Co-Invest, LP - Common Equity
Media
Tower Arch Infolinks Media, LP - Common Equity (7)
Media
Tower Arch Infolinks Media, LP - Unfunded Common Equity (7) (8)
Media
TPC Holding Company, LP - Common Equity
Food Products
TWD Parent Holdings, LLC - Common Equity
Construction & Engineering
Tinicum Space Coast Co-Invest, LLC (7)
Aerospace and Defense
UniTek Global Services, Inc. - Common Equity
Telecommunications
UniVista Insurance - Common Equity (7)
Insurance
Urology Partners Co., LP - Common Equity
Healthcare Providers and Services
Wash & Wax Group, LP - Common Equity (7)
Consumer Services
Watchtower Holdings, LLC - Common Equity (7)
Electronic Equipment, Instruments, and Components
WCP Ivyrehab Coinvestment, LP - Common Equity - Incremental (7)
Healthcare Providers and Services
WCP Ivyrehab Coinvestment, LP - Common Equity (7)
Healthcare Providers and Services
WCP Ivyrehab Coinvestment, LP - Unfunded Common Equity (7) (8)
Healthcare Providers and Services
White Tiger Newco, LLC - Common Equity (6)
Capital Equipment
Unitek Global Services, Inc. - Warrants
Telecommunications
Kentucky Racing Holdco, LLC - Warrants (7)
Hotels, Restaurants and Leisure
Total Common Equity/Warrants
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies
Investments in Controlled, Affiliated Portfolio Companies - 26.2 % of Net Assets (3), (4)
First Lien Secured Debt - 22.1 % of Net Assets
PennantPark Senior Secured Loan Fund I, LLC (6), (9)
Financial Services
3M SOFR+ 800
Total First Lien Secured Debt
Equity Interests - 4.1 % of Net Assets
PennantPark Senior Secured Loan Fund I LLC - Common Equity (6), (9)
Financial Services
Total Equity Interests
Total Investments in Controlled, Affiliated Portfolio Companies
Total Investments - 258.1 % of Net Assets (11), (13)
Cash and Cash Equivalents - 11.4 % of Net Assets
BlackRock Federal FD Institutional 81 (Money Market Fund)
Blackrock Liq Fedfund Gov CL Inst (Money Market Fund)
JPMorgan US Dollar Liquidity Inst (Money Market Fund)
JPMorgan U.S. Government (Money Market Fund)
Goldman Sachs Financial Square Government Fund (Money Market Fund)
Non-Money Market Cash
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents - 269.5 % of Net Assets
Liabilities in Excess of Other Assets - ( 169.5 )% of Net Assets
Net Assets - 100 %
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or “SOFR”, or Prime rate, or “P, or Sterling Overnight Index Average, or “SONIA.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 90-day or 180-day SOFR rates (1M S, 3M S, or 6M S, respectively) at the borrower’s option. SONIA loans are typically indexed daily for GBP loans with a quarterly frequency payment. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on our accounting policy (See Note 2). The value of all securities was determined using significant unobservable inputs (See Note 5).
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(c ontinued)
September 30, 2025
(in thousands, except share data)
The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities.
Non-income producing securities.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or 2) securing the 2036-R Asset-Backed Debt and held through PennantPark CLO I, Ltd.; or 3) 2036 Asset-Backed Debt and held through PennantPark CLO VIII, Ltd. or 4) 2037 Asset-Backed Debt and held through PennantPark CLO 11, LLC.
Investment is held through our Taxable Subsidiary.
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2025 , qualifying assets represent 90% of our total assets and non-qualifying assets represent 10% of our total assets.
Non-accrual security
As of September 30, 2025, all investments are in U.S companies. Total cost, fair value, and percentage of Net Assets for the U.S. Companies were $ 2,819.4 million, $ 2,773.3 million, and 258.1 %
Partial PIK non-accrual security
All of our investments are not registered under the 1933 Act and have restrictions on resale.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2024
(in thousands, except share data)
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 - 186.1 % (3), (4)
First Lien Secured Debt - 167.8 % of Net Assets
A1 Garage Merger Sub, LLC
Commercial Services & Supplies
3M SOFR+ 610
A1 Garage Merger Sub, LLC - Unfunded Term Loan (9)
Commercial Services & Supplies
A1 Garage Merger Sub, LLC (Revolver) (7), (9)
Commercial Services & Supplies
ACP Avenu Buyer, LLC
IT Services
3M SOFR+ 525
ACP Avenu Buyer, LLC - Unfunded Term Loan (9)
IT Services
ACP Avenu Buyer, LLC - Funded Revolver
IT Services
3M SOFR+ 525
ACP Avenu Buyer, LLC (Revolver) (7), (9)
IT Services
ACP Falcon Buyer, LLC (Revolver) (7), (9)
Professional Services
Ad.net Acquisition, LLC
Media
3M SOFR+ 626
Ad.net Acquisition, LLC - Funded Revolver
Media
3M SOFR+ 626
Ad.net Acquisition, LLC (Revolver) (7), (9)
Media
Aechelon Technology, Inc.
Aerospace and Defense
3M SOFR+ 750
Aechelon Technology, Inc. - Unfunded Revolver (9)
Aerospace and Defense
Aeronix, Inc.
Aerospace and Defense
3M SOFR+ 525
Aeronix, Inc. - (Revolver) (9)
Aerospace and Defense
AFC Dell Holding Corp.
Distributors
3M SOFR+ 550
AFC Dell Holding Corp. - Unfunded Term Loan (9)
Distributors
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)
Media
3M SOFR+ 650
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media
3M SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media
3M SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - (Revolver) (9)
Media
Applied Technical Services, LLC
Commercial Services & Supplies
3M SOFR+ 590
Applied Technical Services, LLC - Unfunded Term Loan (9)
Commercial Services & Supplies
Applied Technical Services, LLC (Revolver)
Commercial Services & Supplies
3M SOFR+ 475
Applied Technical Services, LLC (Revolver) (7),(9)
Commercial Services & Supplies
Arcfield Acquisition Corp. (Revolver)
Aerospace and Defense
1M SOFR+ 625
Arcfield Acquisition Corp. (Revolver) (7),(9)
Aerospace and Defense
Archer Lewis, LLC
Healthcare Technology
3M SOFR+ 575
Archer Lewis, LLC - Unfunded Term Loan A (9)
Healthcare Technology
Archer Lewis, LLC - Unfunded Term Loan B (9)
Healthcare Technology
Archer Lewis, LLC - Unfunded Revolver (9)
Healthcare Technology
ARGANO, LLC
Business Services
3M SOFR+ 575
ARGANO, LLC - Unfunded Term Loan (9)
Business Services
ARGANO, LLC – Unfunded Revolver (9)
Business Services
Beacon Behavioral Support Service, LLC
Healthcare Providers and Services
3M SOFR+ 525
(PIK 15.00 %)
Beacon Behavioral Support Service, LLC - Unfunded Term Loan (9)
Healthcare Providers and Services
Beacon Behavioral Support Service, LLC - Unfunded Revolver (9)
Healthcare Providers and Services
Beta Plus Technologies, Inc.
Internet Software and Services
3M SOFR+ 575
Big Top Holdings, LLC
Construction & Engineering
1M SOFR+ 625
Big Top Holdings, LLC - (Revolver) (9)
Construction & Engineering
BioDerm, Inc. (Revolver)
Healthcare Equipment and Supplies
1M SOFR+ 650
BioDerm, Inc. (Revolver) (7), (9)
Healthcare Equipment and Supplies
Blackhawk Industrial Distribution, Inc.
Distributors
3M SOFR+ 640
Blackhawk Industrial Distribution, Inc. - Unfunded Term Loan (9)
Distributors
Blackhawk Industrial Distribution, Inc. (Revolver) (7)
Distributors
3M SOFR+ 640
Blackhawk Industrial Distribution, Inc. (9)
Distributors
BlueHalo Financing Holdings, LLC
Aerospace and Defense
3M SOFR+ 600
Broder Bros., Co.
Textiles, Apparel and Luxury Goods
3M SOFR+ 611
Burgess Point Purchaser Corporation
Auto Components
3M SOFR+ 535
By Light Professional IT Services, LLC
High Tech Industries
3M SOFR+ 698
By Light Professional IT Services, LLC (Revolver) (7), (9)
High Tech Industries
Carisk Buyer, Inc.
Healthcare Technology
3M SOFR+ 575
Carisk Buyer, Inc. - Unfunded Term Loan (9)
Healthcare Technology
Carisk Buyer, Inc. (Revolver) (7), (9)
Healthcare Technology
Carnegie Dartlet, LLC
Professional Services
3M SOFR+ 550
Carnegie Dartlet, LLC - Unfunded Term Loan (9)
Professional Services
Carnegie Dartlet, LLC - (Revolver) (9)
Professional Services
Cartessa Aesthetics, LLC
Distributors
3M SOFR+ 575
Cartessa Aesthetics, LLC (Revolver) (7)
Distributors
1M SOFR+ 575
Cartessa Aesthetics, LLC (Revolver) (7), (9)
Distributors
CF512, Inc.
Media
3M SOFR+ 619
CF512, Inc.(Revolver) (7), (9)
Media
Compex Legal Services, Inc.
Professional Services
3M SOFR+ 555
Compex Legal Services, Inc. (Revolver)
Professional Services
3M SOFR+ 555
Compex Legal Services, Inc. (Revolver) (7), (9)
Professional Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
Confluent Health, LLC
Healthcare Providers and Services
3M SOFR+ 500
Connatix Buyer, Inc. (7)
Media
3M SOFR+ 561
Connatix Buyer, Inc. - Funded Revolver
Media
3M SOFR+ 576
Connatix Buyer, Inc. (9)
Media
Crane 1 Services, Inc.
Commercial Services & Supplies
3M SOFR+ 586
Crane 1 Services, Inc. (Revolver) (7), (9)
Commercial Services & Supplies
C5MI Holdco, LLC
IT Services
3M SOFR+ 600
C5MI Holdco, LLC - Funded Revolver
IT Services
3M SOFR+ 600
C5MI Holdco, LLC - Unfunded Revolver (9)
IT Services
DRI Holding Inc.
Media
3M SOFR+ 535
Dr. Squatch, LLC
Personal Products
3M SOFR+ 535
Dr. Squatch, LLC (Revolver) (7), (9)
Personal Products
DRS Holdings III, Inc.
Chemicals, Plastics and Rubber
3M SOFR+ 635
DRS Holdings III, Inc. (Revolver) (7), (9)
Personal Products
Duggal Acquisition, LLC
Marketing Services
3M SOFR+ 500
Duggal Acquisition, LLC - Unfunded Term Loan (9)
Marketing Services
Duggal Acquisition, LLC - Unfunded Revolver (9)
Marketing Services
Dynata, LLC - First-Out Term Loan
Business Services
3M SOFR+ 526
Dynata, LLC - Last-Out Term Loan
Business Services
3M SOFR+ 576
ECL Entertainment, LLC
Hotels, Restaurants and Leisure
1M SOFR+ 400
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
3M SOFR+ 575
EDS Buyer, LLC. (Revolver) (7), (9)
Electronic Equipment, Instruments, and Components
Efficient Collaborative Retail Marketing Company, LLC
Media: Diversified and Production
3M SOFR+ 776
(PIK 1.50 %)
Eisner Advisory Group, LLC
Professional Services
3M SOFR+ 400
ETE Intermediate II, LLC - Funded Revolver
Diversified Consumer Services
3M SOFR+ 650
ETE Intermediate II, LLC - Unfunded Revolver (9)
Diversified Consumer Services
Eval Home Health Solutions Intermediate, LLC
Healthcare, Education and Childcare
3M SOFR+ 575
Eval Home Health Solutions Intermediate, LLC - UnFunded Revolver (9)
Healthcare, Education and Childcare
Exigo Intermediate II, LLC (Revolver) (9)
Software
Fairbanks Morse Defense
Aerospace and Defense
3M SOFR+ 450
Five Star Buyer, Inc.
Hotels, Restaurants and Leisure
3M SOFR+ 715
Five Star Buyer, Inc. (Revolver) (9)
Hotels, Restaurants and Leisure
Gauge ETE Blocker, LLC - Promissory Note
Diversified Consumer Services
GGG MIDCO, LLC
Diversified Consumer Services
3M SOFR+ 500
GGG MIDCO, LLC - Unfunded Term Loan (9)
Diversified Consumer Services
GGG MIDCO, LLC – Unfunded Revolver (9)
Diversified Consumer Services
Global Holdings InterCo LLC
Diversified Financial Services
3M SOFR+ 615
Graffiti Buyer, Inc.
Trading Companies & Distributors
3M SOFR+ 560
Graffiti Buyer, Inc. - Unfunded Term Loan (9)
Trading Companies & Distributors
Graffiti Buyer, Inc. (Revolver)
Trading Companies & Distributors
3M SOFR+ 560
Graffiti Buyer, Inc. (Revolver) (7), (9)
Trading Companies & Distributors
Hancock Roofing and Construction L.L.C.
Insurance
3M SOFR+ 560
Hancock Roofing and Construction L.L.C. (Revolver) (7)
Insurance
3M SOFR+ 560
Hancock Roofing and Construction L.L.C. (Revolver) (7), (9)
Insurance
Harris & Co. LLC
Professional Services
3M SOFR+ 500
Harris & Co. LLC. - Unfunded Term Loan A (9)
Professional Services
Harris & Co. LLC. - Unfunded Term Loan B (9)
Professional Services
Harris & Co. LLC - Unfunded Revolver (9)
Professional Services
HEC Purchaser Corp.
Healthcare, Education and Childcare
3M SOFR+ 550
Hills Distribution Inc.
Distributors
3M SOFR+ 600
Hills Distribution Inc. - Unfunded Term Loan (9)
Distributors
HW Holdco, LLC
Media
1M SOFR+ 590
HW Holdco, LLC (Revolver) (9)
Media
IG Investments Holdings, LLC
Professional Services
3M SOFR+ 610
IG Investments Holdings, LLC (Revolver) (7), (9)
Professional Services
Imagine Acquisitionco, LLC (Revolver) (9)
Software
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
3M SOFR+ 685
Infinity Home Services Holdco, Inc. (CAD)
Commercial Services & Supplies
3M SOFR+ 600
Infinity Home Services Holdco, Inc. - 1st Amendment Unfunded Term Loan (9)
Commercial Services & Supplies
Infinity Home Services Holdco, Inc. (Revolver)
Commercial Services & Supplies
3M SOFR+ 575
Infinity Home Services Holdco, Inc. - Unfunded Term Loan (9)
Commercial Services & Supplies
Infolinks Media Buyco, LLC
Media
3M SOFR+ 550
Integrative Nutrition, LLC
Consumer Services
3M SOFR+ 715
(PIK 6.00 %)
ITI Holdings, Inc. (Revolver)
IT Services
3M SOFR+ 450
ITI Holdings, Inc. (Revolver) (7), (9)
IT Services
Inventus Power, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 761
Inventus Power, Inc. - Unfunded Revolver (9)
Electronic Equipment, Instruments, and Components
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
Keel Platform, LLC
Metals and Mining
3M SOFR+ 525
Keel Platform, LLC - Unfunded Term Loan (9)
Metals and Mining
Kinetic Purchaser, LLC
Personal Products
3M SOFR+ 615
Kinetic Purchaser, LLC (Revolver) (7)
Personal Products
Lash OpCo, LLC
Personal Products
3M SOFR+ 785
(PIK 5.10 %)
Lash OpCo, LLC (Revolver) (7)
Personal Products
1M SOFR+ 785
(PIK 5.10 %)
Lash OpCo, LLC (Revolver) (7), (9)
Personal Products
(PIK 5.10 %)
LAV Gear Holdings, Inc.
Capital Equipment
1M SOFR+ 640
LAV Gear Holdings, Inc. (Revolver) (7)
Capital Equipment
1M SOFR+ 640
Ledge Lounger, Inc.
Leisure Products
3M SOFR+ 765
Ledge Lounger, Inc. (Revolver)
Leisure Products
3M SOFR+ 765
(PIK 1.0 %)
Ledge Lounger, Inc. (Revolver) (7), (9)
Leisure Products
Lightspeed Buyer Inc.
Healthcare Technology
1M SOFR+ 535
Lightspeed Buyer Inc. (Revolver) (7), (9)
Healthcare Technology
LJ Avalon Holdings, LLC
Construction & Engineering
3M SOFR+ 525
LJ Avalon Holdings, LLC - Unfunded Term Loan (9)
Construction & Engineering
LJ Avalon Holdings, LLC (Revolver) (7), (9)
Construction & Engineering
Loving Tan Intermediate II, Inc.
Personal Products
3M SOFR+ 650
Loving Tan Intermediate II, Inc. - Unfunded Term Loan (9)
Personal Products
Loving Tan Intermediate II, Inc. (Revolver)
Personal Products
3M SOFR+ 700
Loving Tan Intermediate II, Inc. - Unfunded Revolver (9)
Personal Products
LSF9 Atlantis Holdings, LLC
Specialty Retail
3M SOFR+ 525
Lucky Bucks, LLC - First-out Term Loan
Hotels, Restaurants and Leisure
3M SOFR+ 765
Lucky Bucks, LLC - Last-out Term Loan
Hotels, Restaurants and Leisure
3M SOFR+ 765
MAG DS Corp.
Aerospace and Defense
1M SOFR+ 550
MBS Holdings, Inc. - Funded Revolver
Internet Software and Services
3M SOFR+ 585
MBS Holdings, Inc. (Revolver) (7), (9)
Internet Software and Services
MDI Buyer, Inc.
Commodity Chemicals
3M SOFR+ 575
MDI Buyer, Inc. (Revolver)
Commodity Chemicals
3M SOFR+ 600
MDI Buyer, Inc. (Revolver) (7), (9)
Commodity Chemicals
Meadowlark Acquirer, LLC
Professional Services
3M SOFR+ 590
Meadowlark Acquirer, LLC (Revolver) (9)
Professional Services
Medina Health, LLC
Healthcare Providers and Services
3M SOFR+ 625
Medina Health, LLC (Revolver) (9)
Healthcare Providers and Services
Megawatt Acquisitionco, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 525
Megawatt Acquisitionco, Inc. - Funded Revolver
Electronic Equipment, Instruments, and Components
3M SOFR+ 525
Megawatt Acquisitionco, Inc. - (Revolver) (9)
Electronic Equipment, Instruments, and Components
Michael Baker International, LLC
Professional Services
3M SOFR+ 475
Mission Critical Electronics, Inc.
Capital Equipment
3M SOFR+ 590
Mission Critical Electronics, Inc. (Revolver) (7), (9)
Capital Equipment
MOREGroup Holdings, Inc.
Construction & Engineering
3M SOFR+ 575
MOREGroup Holdings, Inc. - Unfunded Term Loan (9)
Construction & Engineering
MOREGroup Holdings, Inc. - (Revolver) (9)
Construction & Engineering
Municipal Emergency Services, Inc.
Distributors
3M SOFR+ 515
Municipal Emergency Services, Inc. - Term Loan B
Distributors
3M SOFR+ 515
Municipal Emergency Services, Inc. - Unfunded Term Loan (9)
Distributors
Municipal Emergency Services, Inc. - Unfunded Term Loan B (9)
Distributors
Municipal Emergency Services, Inc. (Revolver) (7), (9)
Distributors
NBH Group LLC (Revolver) (7), (9)
Healthcare Equipment and Supplies
NFS - CFP Holdings LLC
Commercial Services & Supplies
3M SOFR+ 475
NFS - CFP Holdings LLC - Unfunded Term Loan (9)
Commercial Services & Supplies
NFS - CFP Holdings LLC - Unfunded Revolver (9)
Commercial Services & Supplies
NORA Acquisition, LLC
Healthcare Providers and Services
3M SOFR+ 635
NORA Acquisition, LLC (Revolver) (7), (9)
Healthcare Providers and Services
Omnia Exterior Solutions, LLC
Diversified Consumer Services
3M SOFR+ 550
Omnia Exterior Solutions, LLC - Unfunded Term Loan (9)
Diversified Consumer Services
Omnia Exterior Solutions, LLC - Unfunded Term Loan (9)
Diversified Consumer Services
Omnia Exterior Solutions, LLC (Revolver) (7), (9)
Diversified Consumer Services
One Stop Mailing, LLC
Air Freight and Logistics
3M SOFR+ 636
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
ORL Acquisition, Inc.
Consumer Finance
3M SOFR+ 940
(PIK 7.50 %)
ORL Acquisition, Inc. (Revolver) (7), (9)
Consumer Finance
OSP Embedded Purchaser, LLC
Aerospace and Defense
3M SOFR+ 610
OSP Embedded Purchaser, LLC (Revolver) (9)
Aerospace and Defense
Outcomes Group Holdings, Inc
Healthcare Providers and Services
3M SOFR+ 425
Output Services Group, Inc. - First-out Term Loan
Business Services
3M SOFR+ 843
Output Services Group, Inc. - Last-out Term Loan
Business Services
3M SOFR+ 668
Owl Acquisition, LLC
Professional Services
3M SOFR+ 535
Ox Two, LLC
Construction and Building
3M SOFR+ 651
Ox Two, LLC (Revolver)
Construction and Building
Pacific Purchaser, LLC
Professional Services
3M SOFR+ 625
Pacific Purchaser, LLC - Unfunded Term Loan (9)
Professional Services
Pacific Purchaser, LLC - (Revolver) (9)
Professional Services
PAR Excellence Holdings, Inc.
Healthcare Technology
3M SOFR+ 475
PAR Excellence Holdings, Inc. - Unfunded Revolver (9)
Healthcare Technology
PCS Midco, Inc.
Professional Services
3M SOFR+ 575
PCS Midco, Inc. - Unfunded Term Loan (9)
Professional Services
PCS Midco, Inc. - Revolver
Professional Services
3M SOFR+ 575
PCS Midco, Inc. - (Revolver) (9)
Professional Services
PH Beauty Holdings III, Inc.
Consumer Products
3M SOFR+ 543
PL Acquisitionco, LLC
Textiles, Apparel and Luxury Goods
3M SOFR+ 725
(PIK 3.50 %)
PL Acquisitionco, LLC - (Revolver) (9)
Textiles, Apparel and Luxury Goods
PlayPower, Inc.
Leisure Products
1M SOFR+ 525
PlayPower, Inc. - Unfunded Revolver (9)
Leisure Products
Pragmatic Institute, LLC (Revolver), (5)
Professional Services
3M SOFR+ 750
(PIK 12.09 %)
Quantic Electronics, LLC
Electronic Equipment, Instruments, and Components
3M SOFR+ 635
Quantic Electronics, LLC - Funded revolver
Electronic Equipment, Instruments, and Components
3M SOFR+ 635
Quantic Electronics, LLC (Revolver) (7), (9)
Electronic Equipment, Instruments, and Components
Rancho Health MSO, Inc. - Unfunded Term Loan (9)
Healthcare Equipment and Supplies
Rancho Health MSO, Inc. (Revolver) (7)
Healthcare Equipment and Supplies
3M SOFR+ 560
Rancho Health MSO, Inc. (Revolver) (7), (9)
Healthcare Equipment and Supplies
Recteq, LLC
Leisure Products
3M SOFR+ 715
Recteq, LLC (Revolver) (7), (9)
Leisure Products
Riverpoint Medical, LLC
Healthcare Equipment and Supplies
3M SOFR+ 525
Riverpoint Medical, LLC (Revolver) (7)
Healthcare Equipment and Supplies
3M SOFR+ 535
Riverpoint Medical, LLC (Revolver) (7), (9)
Healthcare Equipment and Supplies
RRA Corporate, LLC
Diversified Consumer Services
3M SOFR+ 500
RRA Corporate, LLC - Unfunded Term Loan 1 (9)
Diversified Consumer Services
RRA Corporate, LLC - Unfunded Term Loan 2 (9)
Diversified Consumer Services
RRA Corporate, LLC - Funded Revolver
Diversified Consumer Services
3M SOFR+ 500
RRA Corporate, LLC - Unfunded Revolver (9)
Diversified Consumer Services
RTIC Subsidiary Holdings, LLC
Leisure Products
3M SOFR+ 575
RTIC Subsidiary Holdings, LLC - Unfunded Revolver (9)
Leisure Products
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)
Professional Services
3M SOFR+ 575
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.) - Unfunded Term Loan (9)
Professional Services
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.) (Revolver) (7), (9)
Professional Services
Safe Haven Defense US LLC
Building Products
3M SOFR+ 525
Safe Haven Defense US LLC - Unfunded Revolver (9)
Building Products
Sales Benchmark Index LLC
Professional Services
3M SOFR+ 620
Sales Benchmark Index LLC (Revolver) (7), (9)
Professional Services
Sargent & Greenleaf Inc.
Electronic Equipment, Instruments, and Components
1M SOFR+ 760
(PIK 1.00 %)
Sargent & Greenleaf Inc. (Revolver)
Electronic Equipment, Instruments, and Components
1M SOFR+ 660
(PIK 1.00 %)
Sargent & Greenleaf Inc. (Revolver) (9)
Electronic Equipment, Instruments, and Components
Schlesinger Global, Inc.
Professional Services
3M SOFR+ 835
(PIK 5.60 %)
Schlesinger Global, Inc. (Revolver)
Professional Services
3M SOFR+ 835
(PIK 5.60 %)
Schlesinger Global, Inc. (Revolver) (7), (9)
Professional Services
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
3M SOFR+ 615
Sigma Defense Systems, LLC
IT Services
3M SOFR+ 690
Sigma Defense Systems, LLC (Revolver) (7), (9)
IT Services
Simplicity Financial Marketing Group Holdings Inc.
Diversified Financial Services
3M SOFR+ 640
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Term Loan (9)
Diversified Financial Services
Simplicity Financial Marketing Group Holdings Inc. - (Revolver) (9)
Diversified Financial Services
Skopima Consilio Parent, LLC
Business Services
1M SOFR+ 461
Smartronix, LLC
Aerospace and Defense
1M SOFR+ 610
Smartronix, LLC - (Revolver) (9)
Aerospace and Defense
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
Smile Brands Inc.
Healthcare and Pharmaceuticals
1M SOFR+ 550
(PIK 1.50 %)
Smile Brands Inc. (Revolver)
Healthcare and Pharmaceuticals
1M SOFR+ 550
(PIK 1.50 %)
Smile Brands Inc. (Revolver) (7), (9)
Healthcare and Pharmaceuticals
Smile Brands Inc. LC (Revolver) (7), (9)
Healthcare and Pharmaceuticals
Solutionreach, Inc.
Healthcare Technology
3M SOFR+ 715
Solutionreach, Inc. (Revolver) (7), (9)
Healthcare Technology
Spendmend Holdings LLC
Healthcare Technology
3M SOFR+ 565
Spendmend Holdings LLC - Unfunded Term Loan (9)
Healthcare Technology
Spendmend Holdings LLC (Revolver)
Healthcare Technology
3M SOFR+ 565
Spendmend Holdings LLC (Revolver) (9)
Healthcare Technology
Summit Behavioral Healthcare, LLC
Healthcare Providers and Services
1M SOFR+ 425
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)
Aerospace and Defense
3M SOFR+ 500
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC) (Revolver) (9)
Aerospace and Defense
System Planning and Analysis, Inc. - Funded Revolver
Aerospace and Defense
3M SOFR+ 515
System Planning and Analysis, Inc. - (Revolver) (9)
Aerospace and Defense
S101 Holdings, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 615
S101 Holdings, Inc. - Unfunded Term Loan 2 (9)
Electronic Equipment, Instruments, and Components
TCG 3.0 Jogger Acquisitionco, Inc.
Media
3M SOFR+ 650
TCG 3.0 Jogger Acquisitionco, Inc. - (Revolver) (9)
Media
Team Services Group, LLC
Healthcare Providers and Services
3M SOFR + 526
Teneo Holdings, LLC - Initial Term Loans
Diversified Financial Services
3M SOFR+ 475
The Bluebird Group LLC
Professional Services
3M SOFR+ 665
The Bluebird Group LLC (Revolver) (7), (9)
Professional Services
The Vertex Companies, LLC (7)
Construction & Engineering
1M SOFR+ 610
The Vertex Companies, LLC (Revolver)
Construction & Engineering
1M SOFR+ 610
The Vertex Companies, LLC (Revolver) (7), (9)
Construction & Engineering
TPC US Parent, LLC
Food Products
3M SOFR+ 565
TPCN Midco, LLC
Diversified Consumer Services
3M SOFR+ 575
TPCN Midco, LLC - Unfunded Term Loan (9)
Diversified Consumer Services
TPCN Midco, LLC - Unfunded Revolver (9)
Diversified Consumer Services
TransGo, LLC
Auto Components
3M SOFR+ 575
TransGo, LLC (Revolver) (7), (9)
Auto Components
TWS Acquisition Corporation
Diversified Consumer Services
1M SOFR+ 640
TWS Acquisition Corporation (Revolver) (7), (9)
Diversified Consumer Services
Tyto Athene, LLC
IT Services
1M SOFR+ 490
Urology Management Holdings, Inc.
Healthcare Providers and Services
3M SOFR+ 550
Urology Management Holdings, Inc. - Unfunded Term Loan (9)
Healthcare Providers and Services
Walker Edison Furniture, LLC - Term Loan (11)
Wholesale
Walker Edison Furniture Company, LLC - Unfunded Term Loan (11)
Wholesale
Walker Edison Furniture Company, LLC - Funded Junior Revolver (11)
Wholesale
Watchtower Intermediate, LLC
Electronic Equipment, Instruments, and Components
3M SOFR+ 600
Watchtower Intermediate, LLC - Unfunded Term Loan (9)
Electronic Equipment, Instruments, and Components
Watchtower Intermediate, LLC (Revolver) (9)
Electronic Equipment, Instruments, and Components
Wildcat Buyerco, Inc.
Electronic Equipment, Instruments, and Components
3M SOFR+ 575
Wildcat Buyerco, Inc. - Unfunded Term Loan (9)
Electronic Equipment, Instruments, and Components
Wildcat Buyerco, Inc. (Revolver) (7), (9)
Electronic Equipment, Instruments, and Components
Wrench Group, LLC
Commercial Services & Supplies
3M SOFR+ 426
Zips Car Wash, LLC
Automobiles
3M SOFR+ 740
Total First Lien Secured Debt
Subordinate Debt - 0.3 % of Net Assets
Beacon Behavioral Holdings LLC
Healthcare Providers and Services
(PIK 15.00 %)
ORL Holdco, Inc. - Convertible Notes
Consumer Finance
ORL Holdco, Inc. - Unfunded Convertible Notes (9)
Consumer Finance
Schlesinger Global, LLC - Promissory Note
Professional Services
3M SOFR+ 700
StoicLane, Inc. - Convertible Notes
Healthcare Technology
StoicLane, Inc. - Unfunded Convertible Notes (9)
Healthcare Technology
Total Subordinate Debt
Preferred Equity - 2.1 % of Net Assets (6)
Accounting Platform Blocker, Inc -. Preferred Equity
Professional Services
Ad.net Holdings, Inc.
Media
AFC Acquisitions, Inc. (Preferred) (8)
Distributors
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (7), (8)
Media
Cartessa Aesthetics, LLC (Preferred) (8)
Distributors
C5MI Holdco, LLC. - Preferred Equity (8)
IT Services
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
EvAL Home Health Solutions, LLC - Preferred Equity (8)
Healthcare, Education and Childcare
Gauge Schlesinger Coinvest LLC (Preferred Equity)
Professional Services
Hancock Claims Consultants Investors, LLC (Preferred Equity) (8)
Insurance
Imagine Topco, LP
Software
Magnolia Topco LP - Class A Preferred Equity (8)
Automobiles
Magnolia Topco LP - Class B Preferred Equity (8)
Automobiles
Megawatt Acquisition Partners, LLC - Preferred A Equity
Electronic Equipment, Instruments, and Components
NXOF Holdings, Inc. (Tyto Athene, LLC) (7)
IT Services
ORL Holdco, Inc. (7)
Consumer Finance
PL Acquisitionco, LLC (Preferred Equity)
Textiles, Apparel and Luxury Goods
RTIC Parent Holdings, LLC - Class A Preferred Equity (8)
Leisure Products
RTIC Parent Holdings, LLC - Class C Preferred Equity (8)
Leisure Products
RTIC Parent Holdings, LLC - Class D Preferred Equity (8)
Leisure Products
TPC Holding Company, LP (7)
Food Products
TWD Parent Holdings, LLC (The Vertex Companies, LLC) (7)
Construction & Engineering
UniTek Global Services, Inc. - Super Senior Preferred Equity (7)
Telecommunications
UniTek Global Services, Inc. - Senior Preferred Equity (7)
Telecommunications
UniTek Global Services, Inc. (7)
Telecommunications
Total Preferred Equity
Common Equity/Warrants - 15.9 % of Net Assets (6)
A1 Garage Equity, LLC (8)
Commercial Services & Supplies
ACP Big Top Holdings, L.P. - Common Equity
Construction & Engineering
Ad.net Holdings, Inc. (7)
Media
Aechelon InvestCo, LP - Common Equity
Aerospace and Defense
Aechelon InvestCo, LP - Unfunded (9)
Aerospace and Defense
Aftermarket Drivetrain Products Holdings, LLC
Auto Components
AG Investco LP (7), (8)
Software
AG Investco LP (7), (8), (9)
Software
Altamira Intermediate Company II, Inc. (7)
IT Services
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (7), (8)
Media
Athletico Holdings, LLC (8)
Healthcare Providers and Services
BioDerm Holdings, LP
Healthcare Equipment and Supplies
Burgess Point Holdings, LP
Auto Components
By Light Investco LP (7), (8)
High Tech Industries
Carisk Parent, L.P.
Healthcare Technology
Carnegie HoldCo, LLC - Common Equity (8)
Professional Services
Connatix Parent, LLC (7)
Media
Consello Pacific Aggregator, LLC (8)
Professional Services
Crane 1 Acquisition Parent Holdings, L.P. (7)
Commercial Services & Supplies
C5MI Holdco, LLC. - Common Equity (8)
IT Services
Delta InvestCo LP (Sigma Defense Systems, LLC) (7), (8)
IT Services
Delta InvestCo LP (Sigma Defense Systems, LLC) (7), (8), (9)
IT Services
DUGGAL EQUITY, LP – Common Equity
Marketing Services
eCommission Holding Corporation (7), (10)
Banking, Finance, Insurance & Real Estate
EDS Topco, LP
Electronic Equipment, Instruments, and Components
Exigo, LLC
Software
FedHC InvestCo LP (7), (8)
Aerospace and Defense
FedHC InvestCo LP (7), (8), (9)
Aerospace and Defense
Five Star Parent Holdings, LLC
Hotels, Restaurants and Leisure
Gauge ETE Blocker, LLC
Diversified Consumer Services
Gauge Lash Coinvest LLC (7)
Personal Products
Gauge Loving Tan, LP
Personal Products
Gauge Schlesinger Coinvest LLC (7)
Professional Services
GCOM InvestCo LP
IT Services
GGG Topco, LLC – Common Equity (8)
Diversified Consumer Services
GMP Hills, L.P.
Distributors
Hancock Claims Consultants Investors, LLC (7), (8)
Insurance
HPA SPQ Aggregator LP
Professional Services
HV Watterson Holdings, LLC
Professional Services
Icon Partners V C, L.P.
Internet Software and Services
Icon Partners V C, L.P. (7), (9)
Internet Software and Services
IIN Group Holdings, LLC (8)
Consumer Services
Imagine Topco, LP (Common)
Software
IHS Parent Holdngs, L.P.
Commercial Services & Supplies
Ironclad Holdco, LLC (Applied Technical Services, LLC) (7)
Commercial Services & Supplies
ITC Infusion Co-invest, LP (8)
Healthcare Equipment and Supplies
Kinetic Purchaser, LLC
Personal Products
KL Stockton Co-Invest LP (Any Hour Services) (7), (8)
Energy Equipment and Services
LEP Pequod Holdings, LP
Financial Services
Lightspeed Investment Holdco LLC (7)
Healthcare Technology
LJ Avalon, LP
Construction & Engineering
Lucky Bucks, LLC
Hotels, Restaurants and Leisure
Magnolia Topco LP - Class A Common Equity (8)
Automobiles
Magnolia Topco LP - Class B Common Equity (8)
Automobiles
MDI Aggregator, LP
Commodity Chemicals
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
Meadowlark Title, LLC (8)
Professional Services
Megawatt Acquisition Partners, LLC - Common A Equity
Electronic Equipment, Instruments, and Components
Municipal Emergency Services, Inc. (7)
Distributors
NEPRT Parent Holdings, LLC (Recteq, LLC) (7), (8)
Leisure Products
New Insight Holdings, Inc. - Common Equity
Business Services
New Medina Health, LLC (8)
Healthcare Providers and Services
NFS - CFP Holdings LLC
Commercial Services & Supplies
NORA Parent Holdings, LLC (8)
Healthcare Providers and Services
North Haven Saints Equity Holdings, LP (8)
Healthcare Technology
NXOF Holdings, Inc. (Tyto Athene, LLC) (7)
IT Services
OceanSound Discovery Equity, LP (Holdco Sands Intermediate, LLC) (7), (8)
Aerospace and Defense
OES Co-Invest, LP - Class A Common Equity
Diversified Consumer Services
OHCP V BC COI, L.P.
Distributors
OHCP V BC COI, L.P. (9)
Distributors
ORL Holdco, Inc
Consumer Finance
OSP Embedded Aggregator, LP
Aerospace and Defense
Output Services Group, Inc.
Business Services
PAR Excellence Holdings, Inc. - Common Equity
Healthcare Technology
PCS Parent, LP - Common Equity
Professional Services
PennantPark-TSO Senior Loan Fund, LP (7) (10)
Financial Services
Pink Lily Holdco, LLC (8)
Textiles, Apparel and Luxury Goods
Pragmatic Institute, LLC
Professional Services
Quad (U.S.) Co-Invest, L.P.
Professional Services
QuantiTech InvestCo LP (7), (8)
Aerospace and Defense
QuantiTech InvestCo LP (7), (8), (9)
Aerospace and Defense
QuantiTech InvestCo II LP (7), (8)
Aerospace and Defense
RFMG Parent, LP (Rancho Health MSO, Inc.) (7)
Healthcare Equipment and Supplies
Safe Haven Defense MidCo, LLC - Common Equity (8)
Building Products
SBI Holdings Investments LLC (Sales Benchmark Index LLC) (7)
Professional Services
Seaway Topco, LP
Chemicals, Plastics and Rubber
SP L2 Holdings, LLC (Ledge Lounger, Inc.)
Leisure Products
SSC Dominion Holdings, LLC - Class B (US Dominion, Inc.) (7)
Capital Equipment
StellPen Holdings, LLC (CF512, Inc.) (7)
Media
SV Aero Holdings, LLC (8)
Aerospace and Defense
TAC LifePort Holdings, LLC (7), (8)
Aerospace and Defense
TCG 3.0 Jogger Co-Invest, LP
Media
Tower Arch Infolinks Media, LP (Infolinks Media Buyco, LLC) (8)
Media
Tower Arch Infolinks Media, LP (Infolinks Media Buyco, LLC) (8), (9)
Media
TPC Holding Company, LP (7)
Food Products
TPCN Holdings, LLC - Common Equity (8)
Diversified Consumer Services
TWD Parent Holdings, LLC (The Vertex Companies, LLC) (7)
Construction & Engineering
UniTek Global Services, Inc.(C)
Telecommunications
UniVista Insurance (7), (8)
Insurance
Urology Partners Co., L.P.
Healthcare Providers and Services
Walker Edison Holdco LLC
Healthcare Providers and Services
Watchtower Holdings, LLC (8)
Electronic Equipment, Instruments, and Components
WCP IvyRehab Coinvestment, LP (8)
Healthcare Providers and Services
WCP IvyRehab QP CF Feeder, LP (8)
Healthcare Providers and Services
WCP Ivyrehab QP CF Feeder, LP. - Unfunded (8) , (9)
Healthcare Providers and Services
Wildcat Parent, LP (Wildcat Buyerco, Inc.) (7)
Electronic Equipment, Instruments, and Components
UniTek Global Services, Inc.(W)
Telecommunications
Kentucky Racing Holdco, LLC (Warrants) (8)
Hotels, Restaurants and Leisure
Total Common Equity/Warrants
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies
Investments in Controlled, Affiliated Portfolio Companies - 40.0 % of Net Assets (3), (4)
First Lien Secured Debt - 31.3 % of Net Assets
Marketplace Events, LLC - Super Priority First Lien Term Loan (7)
Media: Diversified and Production
3M SOFR+ 540
Marketplace Events, LLC - Super Priority First Lien (7)
Media: Diversified and Production
Marketplace Events, LLC
Media: Diversified and Production
3M SOFR+ 540
PennantPark Senior Secured Loan Fund I LLC (7), (10)
Financial Services
3M SOFR+ 800
Total First Lien Secured Debt
Equity Interests - 8.7 % of Net Assets
New MPE Holdings, LLC - Common Equity (8)
Media: Diversified and Production
PennantPark Senior Secured Loan Fund I LLC (7), (10)
Financial Services
Total Equity Interests
Total Investments in Controlled, Affiliated Portfolio Companies
Total Investments - 226.1 % of Net Assets (12), (13)
Cash and Cash Equivalents - 12.8 % of Net Assets
BlackRock Federal FD Institutional 81 (Money Market)
Non-Money Market Cash
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2024
(in thousands, except share data)
Issuer Name
Maturity
Industry
Current Coupon
Basis Point
Spread
Above
Index (1)
Par / Shares
Cost
Fair Value (2)
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents - 238.9 % of Net Assets
Liabilities in Excess of Other Assets - ( 138.9 )% of Net Assets
Net Assets - 100 %
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or “SOFR”, or Prime rate, or “P, or
Sterling Overnight Index Average, or “SONIA.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 90-day or 180-day SOFR rates (1M S, 3M S, or 6M S, respectively) at the borrower’s option. SONIA loans are typically indexed daily for GBP loans with a quarterly frequency payment. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on our accounting policy (See Note 2). The value of all securities was determined using significant unobservable inputs. (See Note 5)
The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities.
Partial non-accrual PIK securities
Non-income producing securities.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or 2) securing the 2036-R Asset-Backed Debt and held through PennantPark CLO I, Ltd.; or 3) 2036 Asset-Backed Debt and held through PennantPark CLO VIII, Ltd
Investment is held through our Taxable Subsidiary.
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2024 , qualifying assets represent 86% of our total assets and non-qualifying assets represent 14% of our total assets.
Non-accrual security
All investments are in US Companies unless noted otherwise. Total cost, fair value, and percentage of Net Assets for the U.S. Companies were $ 1,994.9 million, $ 1,983.5 million, and 226.1 %
All of our investments are not registered under the 1933Act and have restrictions on resale.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2025
1. ORGANIZATION
PennantPark Floating Rate Capital Ltd. was organized as a Maryland corporation in October 2010. We are a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. On April 14, 2022, listing and trading of the Company's common stock commenced on the New York Stock Exchange after the Company voluntarily withdrew the principal listing of its common stock from the Nasdaq Stock Market LLC effective at market close on April 13, 2022.
Our investment objectives are to generate both current income and capital appreciation while seeking to preserve capital. We seek to achieve our investment objective by investing primarily in floating rate loans and other investments made to U.S. middle-market private companies whose debt is rated below investment grade. Floating rate loans pay interest at variable rates, which are determined periodically, on the basis of a floating base lending rate such as SOFR, with or without a floor, plus a fixed spread. Under normal market conditions, we generally expect that at least 80 % of the value of our managed assets will be invested in floating rate loans and other investments bearing a variable rate of interest, which may include, from time to time, variable rate derivative instruments. We generally expect that first lien secured debt will represent at least 65 % of our overall portfolio. We generally expect to invest up to 35 % of our overall portfolio opportunistically in other types of investments, including second lien secured debt, subordinated debt, and, to a lesser extent, equity investments.
We execute our investment strategy directly and through our wholly owned subsidiaries, our unconsolidated joint venture and unconsolidated limited partnership. The term "subsidiary" means entities that primarily engage in investment activities in securities or other assets are wholly owned by us. The Company does not intend to create or acquire primary control of an entity which primarily engages in investment activities of securities or other assets other than entities wholly owned by the Company. We comply with the provisions of Section 17 of the 1940 Act related to affiliated transactions and custody. To the extent that the Company forms a subsidiary advised by an investment adviser other than the Investment Adviser, the investment adviser to such subsidiaries will comply with the provisions of the 1940 Act relating to investment advisory contracts, including but not limited to, Section 15, as if it were an investment adviser to the Company under Section 2(a)(20) of the 1940 Act.
We have entered into an investment management agreement, or the Investment Management Agreement with the Investment Adviser, an external adviser that manages our day-to-day operations. We have also entered into an administration agreement, or the Administration Agreement with the Administrator, which provides the administrative services necessary for us to operate.
Funding I, our wholly-owned subsidiary and a special purpose entity, was organized in Delaware as a limited liability company in May 2011. We formed Funding I in order to establish the Credit Facility. The Investment Adviser serves as the collateral manager to Funding I and has irrevocably directed that the management fee owed with respect to such services is to be paid to us so long as the Investment Adviser remains the collateral manager. This arrangement does not increase our consolidated management fee. The Credit Facility allows Funding I to borrow up to $ 718 million at SOFR (or an alternative risk-free floating interest rate index) plus 200 basis points during the revolving period. The Credit Facility is secured by all of the assets held by Funding I. See Note 11.
We have formed and expect to continue to form certain taxable subsidiaries, including the Taxable Subsidiary, which are subject to tax as corporations. These taxable subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.
In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. See Note 4.
In November 2017, we issued $ 138.6 million of our 2023 Notes. The principal on the 2023 Notes were payable in four annual installments as follows: 15 % of the original principal amount on December 15, 2020, 15 % of the original principal amount on December 15, 2021, 15 % of the original principal amount on December 15, 2022 and 55 % on December 15, 2023. On December 15, 2023, the remaining outstanding 2023 Notes were repaid in full. The 2023 Notes were general, unsecured obligations and ranked equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2023 Notes were listed on the TASE and, in connection with this offering, we dual listed our common stock on the TASE.
On February 7, 2024 the Company filed a notice with the Israel Securities Authority and the TASE voluntarily requesting to de-list the Company's common stock from trading on the TASE. The last day of trading on the TASE was May 6, 2024 and the de-listing of the Company's common stock from the TASE took effect on May 8, 2024.
In September 2019, the Securitization Issuers completed the Debt Securitization. The 2031 Asset-Backed Debt is secured by a diversified portfolio of the Securitization Issuer consisting primarily of middle market loans and participation interests in middle market loans. The 2031 Asset-Backed Debt is scheduled to mature on October 15, 2031. On the closing date of the Debt Securitization, in consideration of our transfer to the Securitization Issuer of the initial closing date loan portfolio, which included loans distributed to us by certain of our wholly-owned subsidiaries, the Securitization Issuer transferred to us 100 % of the Preferred Shares of the Securitization Issuer, 100 % of the Class D Secured Deferrable Floating Rate Notes issued by the Securitization Issuer, and a portion of the net cash proceeds received from the sale of the 2031 Asset-Backed Debt. See Note 11.
In July 2024, the 2031 Asset-Backed Debt was refinanced through a $ 351.0 million debt securitization in the form of a collateralized loan obligation, or the "2036-R Asset-Backed Debt". The Company retained $ 85.0 million of the debt securitization. The 2036-R Asset-Backed Debt is secured by a diversified portfolio of primarily middle market loans and participation interest in middle market loans. The 2036-R Asset Backed Debt is schedule to mature in July 2036.
On February 22, 2024, the 2036 Securitization Issuer completed the 2036 Securitization. The 2036 Asset-Backed Debt is secured by a diversified portfolio of the 2036-Securitization Issuer consisting primarily of middle market loans and participation interests in middle market loans. The 2036 Asset-Backed Debt is scheduled to mature in April 2036. On the closing date of the 2036 Securitization, in consideration of our transfer to the 2036 Securitization Issuer of the initial closing date loan portfolio, which included loans distributed to us by certain of our wholly-owned subsidiaries. See Note 11.
In February 2025, the 2037 Securitization Issuer completed a $ 474.6 million term debt securitization (the "2037 Debt Securitization"). The Company retained $ 85.1 million of subordinated notes and $ 28.5 million of BBB-(sf) Class D Notes of the debt securitization issued by the 2037 Securitization Issuer. The 2037 Asset-Backed Debt is secured by a diversified portfolio of the 2037-Securitization Issuer consisting primarily of middle market loans and participation interests in middle market loans. The 2037 Asset-Backed Debt is scheduled to mature on April 20, 2037. See Note 11.
In March 2021 and October 2021, we issued $ 100.0 million and $ 85.0 million, respectively, in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4 % and 101.5 % respectively. Interest on the 2026 Notes is paid semi-annually on April 1 and October 1 of each year, at a rate of 4.25 % per year, commencing October 1, 2021. The effective interest rate is 4.15 %. The 2026 Notes mature on April 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.
In April 2021, we formed PennantPark-TSO Senior Loan Fund LP, ("PTSF") , an unconsolidated limited partnership, organized as a Delaware limited liability partnership. We sold $ 81.4 million in investments to a wholly-owned subsidiary of PTSF in exchange for cash in the amount of $ 69.5 million and an $ 11.9 million equity interest in PTSF representing 23.08 % of the total outstanding Class A Units of PTSF. We recognized $ 0.4 million of realized gain upon the formation of PTSF. As of September 30, 2021, our capital commitment of $ 15.3 million was fully funded and we held 23.08 % of the total outstanding Class A Units of PTSF and a 4.99 % voting interest in the general partner which manages PTSF.
In August 2025, in connection with the winding down of PTSF, an unconsolidated limited partnership, the Company acquired a portfolio of approximately $ 250 million of assets, including from TSO Puma SPV, LLC, an affiliate of Towerbrook Capital Partners. This portfolio includes assets with which the Company's Investment Adviser is familiar. The average spread and credit statistics are generally in-line with PFLT's existing portfolio. The Company acquired these assets at their most recent fair market value. As of August 27, 2025, PFLT was the only remaining partner in PTSF, and as a result the entity became a wholly-owned consolidated subsidiary as of that date.
On February 4, 2022, we formed PFLT Investment Holdings II, LLC, a Delaware limited liability company ("Holdings II"), as a wholly owned subsidiary. On December 31, 2022, we contributed 100% of our interests in PFLT Investment Holdings, LLC ("Holdings") to Holdings II. Effective as of January 1, 2024, Holdings II made an election to be treated as a corporation for U.S. federal income tax purposes. On January 3, 2024, we purchased an equity interest in Holdings from Holdings II and Holdings became a partnership for U.S. federal income tax purposes. The company and Holdings II entered into a limited liability company agreement with respect to Holdings that provides for certain payments and the sharing of income, gain, loss, and deductions attributable to Holdings' investments.
On August 8, 2025, we and a fund managed by Hamilton Lane ("HL") formed PennantPark Senior Secured Loan Fund II LLC ("PSSL II") an unconsolidated joint venture. PSSL II is expected to invest primarily in middle market loans and other corporate debt securities consistent with our strategy. PSSL II was formed as a Delaware limited liability company. See Note 4.
In July 2024, the Company established a $ 500.0 million ATM Program and terminated the existing $ 250.0 million ATM Program, each an at the market offering program, or "ATM Program", and together "ATM Programs".
During the years ended September 30, 2025, and 2024 we issued 21,638,000 shares and 18,845,194 shares of our Common Stock, respectively, under ATM Programs at a weighted-average price of $ 11.34 and $ 11.35 per share, respectively, raising $ 244.8 million and $ 213.3 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV. We incurred $ 0.3 million and $ 0.8 million, respectively, of legal and other offering costs associated with establishing the ATM Programs. As of September 30, 2025, and 2024 , we had $ 192.2 million and $ 437.3 million available under the respective ATM Programs.
Since inception of the ATM Programs through September 30, 2025 , we issued 49,486,081 shares of our Common Stock under the ATM Programs at a weighted-average price of $ 11.27 , raising $ 557.6 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV. We incurred $ 1.5 million of legal and other offering costs associated with establishing the ATM Programs.
We are operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act of 1936, as amended, or the Commodity Exchange Act, and, therefore, is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies and any other parameters used in determining these estimates and assumptions could cause actual results to differ from these estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Codification, as amended, or ASC, serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued.
Our Consolidated Financial Statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, we have provided a Consolidated Statement of Changes in Net Assets in lieu of a Consolidated Statement of Changes in Stockholders’ Equity.
Our significant accounting policies consistently applied are as follows:
(a) Investment Valuations
We expect that there may not be readily available market values for many of the investments, which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that the board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:
Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;
Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management's preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
The audit committee of our board of directors reviews the valuations of our Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and
Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.
Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.
(b) Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses
Security transactions are recorded on a trade-date basis. We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in the fair values of our portfolio investments, the Credit Facility, and the 2023 Notes during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.
We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, or OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned. Litigation settlements are accounted for in accordance with the contingency provisions of ASC Subtopic 450-30, Contingencies, or ASC 450-30.
Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. As of September 30, 2025 , we had three portfolio companies on non-accrual, representing 0.4 % and 0.2 % of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2024 , we had two portfolio companies on non-accrual, representing 0.4 % and 0.2 % percent of our overall portfolio on a cost and fair value basis, respectively.
(c) Income Taxes
We have complied with the requirements of Subchapter M of the Code and have qualified to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S federal income tax purposes, we typically do not incur any material federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of a federal tax, or we may incur taxes through our taxable subsidiaries, including the Taxable Subsidiary. For the years ended September 30, 2025, 2024 ,and 2023 , we recorded a provision for taxes on net investment income of $ 0.9 million, $ 1.1 million and $ 1.0 million, respectively, pertaining to federal excise tax.
We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, the Company’s major tax jurisdiction is federal.
The Taxable Subsidiary is subject to U.S. federal, state and local corporate income taxes. The income tax expense and related tax liabilities of the Taxable Subsidiary are reflected in the Company’s consolidated financial statements.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
For the year ended September 30, 2025 , the Company recognized a provision for taxes of $( 0.2 ) million on unrealized appreciation (depreciation) on investments by the Taxable Subsidiary. For the year ended September 30, 2024 , the Company recognized a provision for taxes of $ 0.1 million on unrealized appreciation (depreciation) on investments by the Taxable Subsidiary. The provision for taxes on unrealized appreciation on investments is the result of netting (i) the expected tax liability on gains from sales of investments and (ii) the expected tax benefit from the use of losses in the current year. As of September 30, 2025 and 2024 , $ 1.9 million and $ 1.7 million, respectively, was accrued as a deferred tax liability on the Consolidated Statements of Assets and Liabilities relating to unrealized gain on investments held by the Taxable Subsidiary. As of September 30, 2025 and 2024 , the Company recognized a provision for taxes on realized gain on investments held by the Taxable Subsidiary of $ 0.1 million and $ 0.1 million, respectively.
During the year ended September 30, 2025, 2024 and 2023 the Company paid zero , zero , and zero , respectively, in federal taxes on realized gains on the sale of investments held by the Taxable Subsidiary. The state and local tax liability of zero as of September 30, 2025 is included under accrued other expenses in the consolidated statement of assets and liabilities.
The Taxable Subsidiary, which is subject to tax as a corporation, allows us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.
The Taxable Subsidiary, which is subject to tax as a corporation, allows us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements of assets and liabilities to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.
(d) Distributions and Capital Transactions
Distributions to holders of our common stock are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by the board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, may be distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains, but may also include certain tax-qualified dividends and/or a return of capital.
Capital transactions through offerings of our common stock, are recorded when issued and offering costs are charged as a reduction of capital upon issuance of our common stock.
On July 17, 2024, we entered into the 2024 Equity Distribution Agreements with Citizens JMP Securities, LLC, Raymond James & Associates, Inc. and Truist Securities, Inc. as the sales agents (collectively the "Sales Agents" and each a "Sales Agent") in connection with the sale of our shares of common stock, with an aggregate offering price of up to $ 500 million under an at-the-market offering program the 2024 ATM Program. The 2024 Equity Distribution Agreements provide that we may offer and sell shares of our common stock from time to time through the Sales Agents in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including, market conditions and the trading price of our common stock. The Investment Adviser may, from time to time, in its sole discretion, pay some or all of the commissions payable under the 2024 Equity Distribution Agreements or make additional supplemental payments to ensure that the sales price per share of our common stock in connection with all of the 2024 ATM Program offerings, net of any commissions of the Sale Agents, will not be less than our then current NAV per share. Any such payments made by the Investment Adviser will not be subject to reimbursement by us. In connection with the entry into the 2024 Equity Distribution Agreements, the Company terminated the equity distribution agreements with each of Citizens JMP Securities LLC, Raymond James & Associates, Inc. and Truist Securities, Inc. in connection with the prior ATM Program.
During the years ended September 30, 2025, and 2024 we issued 21,638,000 shares and 18,845,194 shares of our Common Stock, respectively, under ATM Programs at a weighted-average price of $ 11.34 and $ 11.35 per share, respectively, raising $ 244.8 million and $ 213.3 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV. We incurred $ 0.3 million and $ 0.8 million, respectively, of legal and other offering costs associated with establishing the ATM Programs. As of September 30, 2025, and 2024 , we had $ 192.2 million and $ 437.3 million available under the respective ATM Programs.
(e) Foreign Currency Translation
Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.
Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair value of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.
Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.
(f) Consolidation
As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, PennantPark Floating Rate Capital Ltd. will generally not consolidate its investment in a company other than an investment company wholly-owned subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we have consolidated the results of our taxable subsidiaries, including the Taxable Subsidiary, Funding I, 2036 Securitization Issuer, 2036-R Securitization Issuers, 2037 Securitization Issuer, PTSF and PTSF's GP (effective August 27, 2025; see Note 1) in our Consolidated Financial Statements. We do not consolidate our non-controlling interest in PSSL, PTSF (prior to August 27, 2025) or PTSF's GP (prior to August 27, 2025). See further description of our investment in PSSL in Note 4.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
(g) Asset Transfers and Servicing
Asset transfers that do not meet ASC Topic 860, Transfers and Servicing, requirements for sale accounting treatment are reflected in the Consolidated Statements of Assets and Liabilities and the Consolidated Schedules of Investments as investments. The creditors of Funding I have received a security interest in all its assets and such assets are not intended to be available to the creditors of PennantPark Floating Rate Capital Ltd. or any of its affiliates.
(h) Segment Reporting
In accordance with ASC Topic 280 – Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets. See Note 14 for additional information on the Company’s segment accounting policies.
(i) Recent Accounting Pronouncements
In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. FASB approved an (optional) two year extension to December 31, 2024, for transitioning away from LIBOR. The Company adopted ASU 2020-04, the effect of which was not material to the consolidated financial statements and the notes thereto. re
In June 2022, the FASB issued Accounting Standards Update No. 2022-03, or ASU, 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2022-03, which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company has adopted the new accounting standard, the effect of which was not material to the consolidated financial statements and the notes thereto.
In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities' segment disclosure by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosure of a reportable segment's profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning December 15, 2024, and should be applied on a retrospective basis to all periods presented, noting early adoption is permitted. The Company has adopted ASU 2023-07 effective September 30, 2025 and concluded that the application of this guidance did not have a material impact on its consolidated financial statements. See Note 14 for more information on the effects of the adoption of ASU 2023-07.
In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 - 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our financial statements.
3. AGREEMENTS AND RELATED PARTY TRANSACTIONS
(a) Investment Management Agreement
The Investment Management Agreement with the Investment Adviser was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in May 2025. Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of and provides investment advisory services to us. The Investment Adviser serves as the collateral manager to Funding I and has irrevocably directed that any management fee owed with respect to such services is to be paid to the Company so long as the Investment Adviser remains the collateral manager. This arrangement does not increase our consolidated management fee. For providing these services, the Investment Adviser receives a fee from us consisting of two components—a base management fee and an incentive fee.
Base Management Fee
The base management fee is calculated at an annual rate of 1.00 % of our “average adjusted gross assets,” which equals our gross assets (net of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For the years ended September 30, 2025, 2024, and 2023, the Company recorded a base management fee expense of $ 23.3 million, $ 14.9 million, and $ 11.4 million, respectively.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Incentive Fee
The incentive fee has two parts, as follows:
One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75 % per quarter ( 7.00 % annualized). We pay the Investment Adviser an incentive fee with respect to our Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75 %, (2) 50 % of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.9167 % in any calendar quarter ( 11.67 % annualized) (we refer to this portion of our Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.9167 %) as the “catch-up,” which is meant to provide our Investment Adviser with 20 % of our Pre-Incentive Fee Net Investment Income, as if a hurdle did not apply, if this net investment income exceeds 2.9167 % in any calendar quarter), and (3) 20 % of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.9167 % in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable. For the years ended September 30, 2025, 2024, and 2023, the Company recorded incentive fees on net investment income of earned $ 26.0 million, $ 18.1 million, and $ 16.9 million, respectively.
The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 20 % of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For the years ended September 30, 2025, 2024, and 2023 , the Company did no t record an incentive fee on capital gains as calculated under the Investment Management Agreement (as described above).
Under GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 20 % of such amount, less the aggregate amount of actual capital gains related to incentive fees paid in all prior years. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. The incentive fee accrued for but, not payable, under GAAP on our unrealized and realized capital for the years ended September 30, 2025, 2024, and 2023 was zero , respectively.
(b) Administration Agreement
The Administration Agreement with the Administrator was reapproved by our board of directors, including a majority of the directors who are not interested persons of us, in May 2025. Under the Administration Agreement, the Administrator provides administrative services and office facilities to us. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. The Administrator also offers, on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the years ended September 30, 2025, 2024, and 2023, we recorded administrative expenses of $ 2.1 million, $ 1.5 million, and $ 0.6 million, respectively, which are included in administrative services expenses on the consolidated statements of operations. For the years ended September 30, 2025 and 2024 we had a balance of $ 0.3 million and $ 0.6 related to administration services included in Accounts payable and accrued expenses on the consolidated statements of assets and liabilities.
Under the Administration Agreement the Administrator may be reimbursed by the Company for the costs and expenses to be borne by the Company set forth above to include the costs and expenses allocable with respect to the provision of in-house legal, tax, or other professional advice and/or services to the Company,including performing due diligence on its prospective portfolio companies as deemed appropriate by the Administrator, where such in-house personnel perform services that would be paid by the Company if outside service providers provided the same services, subject to the Board's oversight.
(c) Other Related Party Transactions
The Company, the Investment Adviser and certain other affiliates have been granted an order for exemptive relief by the SEC for the Company to co-invest with other funds managed by the Investment Adviser. If we co-invest with other affiliated funds, our Investment Adviser would not receive compensation except to the extent permitted by the exemptive order and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.
During the years ended September 30, 2025, 2024, and 2023 , the Company made no purchases from and sold no investments to an affiliated fund managed by our Investment Adviser in accordance with, and pursuant to procedures adopted under, Rule 17a-7 of the 1940 Act. Net realized losses on those sales for the same periods amounted to zero , zero , and zero , respectively.
For the years ended September 30, 2025, 2024, and 2023 , we sold $ 379.7 million, $ 253.6 million, and $ 158.2 million of investments, respectively, in investments to PSSL at fair value and recognized $( 0.2 ) million, less than $ 0.1 million, and $( 0.2 ) million of net realized gains (loss) for the same periods, respectively.
For the year ended September 30, 2025 the Company acquired a portfolio of approximately $ 250 million of assets, including from TSO Puma SPV, LLC, an affiliate of Towerbrook Capital Partners in connection with the winding down of PTSF, an unconsolidated limited partnership. The Company acquired these assets at their most recent fair market value. As of August 27, 2025, PFLT was the only remaining partner in PTSF, and as a result the entity became a wholly-owned consolidated subsidiary as of that date. For the year ended 2025 and 2024, we sold no investments to PTSF.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
As of September 30, 2025 and 2024 , the Company had payable to PSSL and the Investment Adviser of $ 0.7 million and zero , respectively, presented as a Due to Affiliates on the consolidated statement of assets and liabilities. These amounts are related to cash owed to PSSL and the Investment Adviser from the Company in connection with trades between the funds and wind down of PTSF.
As of September 30, 2025 and 2024, the Company had a receivable from the Administrator of $ 0.3 million and $ 0.3 million, respectively, presented as Due from affiliate on the consolidated statements of assets and liabilities. This amount relates to agency fees collected on behalf of the Company.
4. INVESTMENTS
Purchases of investments, including PIK interest, for the years ended September 30, 2025, 2024, and 2023 totaled $ 1,746.6 million, $ 1,411.2 million, and $ 325.8 million, respectively. Sales and repayments of investments for the same years totaled $ 925.7 m illion, $ 514.1 million, and $ 399.1 million, respectively.
Investments and cash and cash equivalents consisted of the following (in thousands):
September 30, 2025
September 30, 2024
Investment Classification
Cost
Fair Value
Cost
Fair Value
First lien
First lien in PSSL
Second Lien
Subordinated Debt
Equity
Equity interests in PSSL
Total investments
Cash and cash equivalents
Total investments and cash and cash equivalents
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries:
Industry Classification
September 30, 2025 (1)
September 30, 2024 (1)
Cost
Fair Value
Fair Value Percentage
Net asset value Percentage
Cost
Fair Value
Fair Value Percentage
Net asset value Percentage
Professional Services
Aerospace and Defense
Healthcare Providers and Services
Business Services
Media
IT Services
Diversified Consumer Services
Construction & Engineering
Healthcare Technology
Personal Products
Leisure Products
Distributors
Commercial Services & Supplies
All Other
High Tech Industries
Manufacturing/Basic Industry
Electronic Equipment, Instruments, and Components
Internet Software and Services
Healthcare, Education and Childcare
Automobiles
Auto Components
Healthcare Equipment and Supplies
Government Services
Consumer Services
Independent Power and Renewable Electricity Producers
Building Products
Marketing Services
Software
Capital Equipment
Gaming
Metals and Mining
Air Freight and Logistics
Consulting Services
Food Products
Event Services
Media: Diversified and Production
Consumer products
Total
Excludes investments in PSSL .
PennantPark Senior Secured Loan Fund I LLC
In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. As of September 30, 2025 and September 30, 2024, PSSL had total assets of $ 1,153.7 million and $ 988.1 million, respectively, and its investment portfolio consisted of investments in 117 and 109 portfolio companies, respectively. As of September 30, 2025, at fair value, the largest investment in a single portfolio company in PSSL was $ 20.9 million and the five largest investments totaled $ 99.3 million. As of September 30, 2024, at fair value, the largest investment in a single portfolio company in PSSL was $ 21.3 million and the five largest investments totaled $ 97.3 million. PSSL invests in portfolio companies in the same industries in which we may directly invest.
We and Kemper provide capital to PSSL in the form of first lien secured debt and equity interests. As of September 30, 2025 and September 30, 2024, we and Kemper owned 87.5 % and 12.5 %, respectively, of each of the outstanding first lien secured debt and equity interests. As of the same dates, our investment in PSSL consisted of first lien secured debt of $ 237.7 million ( zero remaining unfunded) and $ 237.7 million ( zero remaining unfunded), respectively, and equity interests of $ 123.7 million ($ 65.6 million remaining unfunded) and $ 101.9 million ( zero remaining unfunded), respectively.
We and Kemper each appointed two members to PSSL’s four -person board of directors and investment committee. All material decisions with respect to PSSL, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors or investment committee. Quorum is defined as (i) the
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
presence of two members of the board of directors or investment committee, provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors or investment committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors or investment committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each member.
In December 2024, PSSL entered into a $ 325.0 million (increased from $ 260.0 million) senior secured revolving credit facility which bears interest at SOFR plus 225 basis points (including a spread adjustment) with Ally Bank through its wholly-owned subsidiary, PennantPark Senior Secured Loan Facility LLC II, or PSSL Subsidiary II, subject to leverage and borrowing base restrictions.
In January 2021, PSSL completed a $ 300.7 million debt securitization in the form of a collateralized loan obligation, or the “2032 Asset-Backed Debt”. The 2032 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2032 Asset-Backed Debt is scheduled to mature in January 2032. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO II, Ltd. of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO II, Ltd. transferred to PSSL 100% of the Preferred Shares of PennantPark CLO II, Ltd. and 100% of the Class E Notes issued by PennantPark CLO II, Ltd.
In May 2024, PSSL completed the refinancing of the 2032 Asset-Backed Debt through a $ 300.7 million debt securitization in the form of a collateralized loan obligation, or the "2036 PSSL Asset-Backed Debt". The 2036 PSSL Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned subsidiary of PSSL, consisting primarily of middle market loans and participation interest in middle market loans. The 2036 PSSL Asset-Backed Debt is scheduled to mature in April 2036. PSSL retained the preferred shares and Class E-R Notes through a consolidated subsidiary.
In April 2023, PSSL completed a $ 297.8 million debt securitization in the form of a collateralized loan obligation, or the “2035 Asset-Backed Debt”. The 2035 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO VI, LLC, a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2035 Asset-Backed Debt is scheduled to mature in April 2035. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO VI, LLC of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO VI, LLC transferred to PSSL 100% of the Preferred Shares of CLO VI, LLC
In May 2025, PSSL through its wholly-owned and consolidated subsidiary, PennantPark CLO VI, LLC closed the refinancing of the 2035 Asset-Backed Debt through a four year reinvestment period, twelve-year final maturity $ 315.8 million debt securitization or the "2037-R Asset-Backed Debt." The debt in this securitization is structured in the following manner: (i) $ 228.0 million of Class A-R Loans, which bears interest at three-month SOFR plus 1.85 %, (ii) $ 18.0 million of Class B-R Loans, which bears interest at three-month SOFR plus 4.50 %, (iii) $ 18.0 million of Class C-R Loans and (iv) $ 51.8 million of subordinated notes. PSSL will continue to retain all of the subordinated notes and Class C-R Loans through a consolidated subsidiary. The maturity of the replacement debt and existing subordinated notes is now extended to April 2037.
In April 2025, PSSL through its wholly-owned and consolidated subsidiary, PennantPark CLO 12, LLC closed a four year reinvestment period, twelve-year final maturity $ 301 million debt securitization in the form of a collateralized loan obligation or the "2037 Asset-Backed Debt." The debt in this securitization is structured in the following manner: (i) $ 30.0 million of Class A-1 Loans, which bear interest at three-month SOFR plus 1.45 %, (ii) $ 141.0 million of Class A-1 Notes,which bear interest at three-month SOFR plus 1.45 %, (iii) $ 12.0 million of Class A-2 Notes, which bear interest at a three-month SOFR plus 1.60 %, (iv) $ 21.0 million of Class B notes, which bears interest at three-month SOFR plus 1.85 %, (v) $ 24.0 million of Class C notes, which bears interest at three-month SOFR plus 2.30 %, (vi)$ 18.0 million Class D notes, which bears interest at three-month SOFR plus 3.30 %, (vii) $ 55.0 million of subordinated notes. PSSL will continue to retain all of the subordinated notes through a consolidated subsidiary. The reinvestment period for the term debt securitization ends in April 2029 and the debt is scheduled to mature in April 2037 . The proceeds from the debt repaid a portion of PSSL's secured revolving credit facility.
Below is a summary of PSSL’s portfolio at fair value ($ in thousands):
September 30, 2025
September 30, 2024
Total investments
Weighted average cost yield on income producing investments
Number of portfolio companies in PSSL
Largest portfolio company investment
Total of five largest portfolio company investments
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Below is a listing of PSSL’s individual investments as of September 30, 2025 (par and $ in thousands):
Issuer Name
Acquisition
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
First Lien Secured Debt - 2,106.3 % of Net Assets
ACP Avenu Buyer, LLC
Business Services
SOFR+ 500
ACP Falcon Buyer, Inc.
Business Services
SOFR+ 550
Ad.net Acquisition, LLC
Media
SOFR+ 626
Aechelon Technology, Inc.
Aerospace and Defense
SOFR+ 575
AFC-Dell Holding Corp.
Distributors
SOFR+ 550
Aphix Buyer, Inc.
Business Services
SOFR+ 475
Alpine Acquisition Corp II (4)
Containers and Packaging
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media: Advertising, Printing & Publishing
SOFR+ 575
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media: Advertising, Printing & Publishing
SOFR+ 575
Arcfield Acquisition Corp.
Aerospace and Defense
SOFR+ 500
Archer Lewis, LLC
Commercial Services & Supplies
SOFR+ 575
Argano, LLC
Business Services
SOFR+ 575
Azureon, LLC (F/K/A Tpcn Midco, LLC)
Diversified Consumer Services
SOFR+ 575
Beacon Behavioral Support Services, LLC
Healthcare and Pharmaceuticals
SOFR+ 550
Best Practice Associates, LLC
Aerospace and Defense
SOFR + 675
Beta Plus Technologies, Inc.
Business Services
SOFR+ 575
Big Top Holdings, LLC
Business Services
SOFR + 525
BioDerm, Inc.
Healthcare and Pharmaceuticals
SOFR+ 650
Blackhawk Industrial Distribution, Inc.
Distributors
SOFR+ 540
BLC Holding Company, Inc.
Business Services
SOFR+ 450
Boss Industries, LLC
Independent Power and Renewable Electricity Producers
SOFR+ 500
Burgess Point Purchaser Corporation
Automotive
SOFR+ 535
By Light Professional IT Services, LLC
High Tech Industries
SOFR+ 550
C5MI Acquisition, LLC
IT Services
SOFR+ 600
Capital Construction, LLC
Consumer Services
SOFR+ 590
Carisk Buyer, Inc.
Healthcare Technology
SOFR+ 500
Carnegie Dartlet, LLC
Media: Advertising, Printing & Publishing
SOFR+ 550
Cartessa Aesthetics, LLC
Distributors
SOFR+ 600
Case Works, LLC
Professional Services
SOFR+ 525
CF512, Inc.
Media
SOFR+ 619
Commercial Fire Protection Holdings, LLC
Commercial Services & Supplies
SOFR+ 450
Confluent Health, LLC
Healthcare and Pharmaceuticals
SOFR+ 750
CJX Borrower, LLC
Media
SOFR+ 576
Crane 1 Services, Inc.
Commercial Services & Supplies
SOFR+ 586
DRI Holding Inc.
Media
SOFR+ 535
DRS Holdings III, Inc.
Consumer Goods: Durable
SOFR+ 525
Duggal Acquisition, LLC
Marketing Services
SOFR+ 475
Dynata, LLC - First Out Term Loan (5)
Diversified Consumer Services
SOFR+ 526
Dynata, LLC - Last Out Term Loan
Diversified Consumer Services
SOFR+ 576
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
SOFR+ 475
Emergency Care Partners, LLC
Healthcare Providers and Services
SOFR+ 500
Exigo Intermediate II, LLC
Software
SOFR+ 635
ETE Intermediate II, LLC
Diversified Consumer Services
SOFR+ 500
EvAL Home Care Solutions Intermediate, LLC
Healthcare and Pharmaceuticals
SOFR+ 575
GGG MIDCO, LLC
Diversified Consumer Services
SOFR+ 500
Global Holdings InterCo, LLC
Diversified Financial Services
SOFR+ 560
Graffiti Buyer, Inc.
Trading Companies & Distributors
SOFR+ 560
Halo Buyer, Inc.
Consumer Products
SOFR+ 600
Hancock Roofing And Construction, LLC
Insurance
SOFR+ 550
Harris & Co, LLC
Professional Services
SOFR+ 500
HEC Purchaser Corp.
Healthcare and Pharmaceuticals
SOFR+ 500
Hills Distribution, Inc.
Business Services
SOFR+ 600
HW Holdco, LLC
Media
SOFR + 590
Imagine Acquisitionco, Inc.
Software
SOFR+ 510
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
SOFR+ 600
Inovex Information Systems Incorporated
Software
SOFR + 525
Inventus Power, Inc.
Consumer Goods: Durable
SOFR+ 761
Kinetic Purchaser, LLC
Personal Products
SOFR+ 615
Lash OpCo, LLC
Personal Products
SOFR+ 785
LAV Gear Holdings, Inc. - Takeback TL (5)
Capital Equipment
SOFR+ 594
LAV Gear Holdings, Inc. - Priority TL (5)
Capital Equipment
SOFR+ 594
Lightspeed Buyer, Inc.
Healthcare Providers and Services
SOFR+ 475
LJ Avalon Holdings, LLC
Environmental Industries
SOFR+ 450
Loving Tan Intermediate II, Inc.
Personal Products
SOFR + 500
Lucky Bucks, LLC - First-Out Term Loan (5)
Hotel, Gaming and Leisure
SOFR+ 765
Lucky Bucks, LLC - Last-Out Term Loan
Hotel, Gaming and Leisure
SOFR+ 765
MAG DS Corp.
Aerospace and Defense
SOFR+ 560
Marketplace Events Acquisition, LLC
Media
SOFR + 525
MBS Holdings, Inc.
Internet Software and Services
SOFR + 510
MDI Buyer, Inc.
Chemicals, Plastics and Rubber
SOFR+ 475
Meadowlark Acquirer, LLC
Professional Services
SOFR + 565
Medina Health, LLC
Healthcare and Pharmaceuticals
SOFR+ 625
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Issuer Name
Acquisition
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
Megawatt Acquisitionco, Inc.
Electronic Equipment, Instruments, and Components
SOFR+ 525
MOREgroup Holdings, Inc.
Business Services
SOFR+ 525
Municipal Emergency Services, Inc.
Distributors
SOFR+ 515
NBH Group, LLC
Healthcare, Education & Childcare
SOFR+ 585
NORA Acquisition, LLC
Healthcare Providers and Services
SOFR + 635
Omnia Exterior Solutions, LLC
Diversified Consumer Services
SOFR+ 525
One Stop Mailing, LLC
Air Freight and Logistics
SOFR + 636
ORL Acquisition, Inc. (5)
Consumer Finance
SOFR+ 940
OSP Embedded Purchaser, LLC
Aerospace and Defense
SOFR+ 575
Output Services Group, Inc. - First-Out Term Loan
Business Services
SOFR+ 843
Output Services Group, Inc. - Last-Out Term Loan
Business Services
SOFR+ 668
PCS MIDCO, Inc.
Diversified Consumer Services
SOFR+ 575
Pacific Purchaser, LLC
Business Services
SOFR+ 625
PAR Excellence Holdings, Inc.
Healthcare Technology
SOFR + 500
Paving Lessor Corp. First Lien -Term Loan
Business Services
SOFR + 525
Penta Group Holdings, Inc.
Professional Services
SOFR+ 450
Pink Lily Holdco, LLC (5),(7)
Textiles, Apparel and Luxury Goods
Pragmatic Institute, LLC
Education
SOFR+ 550
Project Granite Buyer, Inc.
Professional Services
SOFR+ 575
Rancho Health MSO, Inc.
Healthcare Providers and Services
SOFR+ 500
Recteq, LLC
Leisure Products
SOFR + 640
Ro Health, LLC
Healthcare Providers and Services
SOFR + 450
RRA Corporate, LLC
Diversified Consumer Services
SOFR+ 525
RTIC Subsidiary Holdings, LLC
Leisure Products
SOFR + 575
Rural Sourcing Holdings, Inc.
High Tech Industries
SOFR + 575
Sabel Systems Technology Solutions, LLC
Government Services
SOFR+ 575
Safe Haven Defense US, LLC
Construction and Building
SOFR + 550
Sales Benchmark Index, LLC
Professional Services
SOFR+ 620
Sath Industries, LLC
Event Services
SOFR+ 550
Schlesinger Global, Inc. (6)
Business Services
SOFR+ 860
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
SOFR+ 615
Sigma Defense Systems, LLC
Aerospace and Defense
SOFR+ 615
Smile Brands, Inc.
Healthcare and Pharmaceuticals
SOFR+ 610
Spendmend Holdings, LLC
Healthcare Technology
SOFR+ 515
STG Distribution, LLC - First Out New Money Term Loans (5)
Air Freight and Logistics
SOFR+ 835
STG Distribution, LLC - Second Out Term Loans (5),(7)
Air Freight and Logistics
SV-Aero Holdings, LLC
Aerospace and Defense
SOFR+ 500
Systems Planning And Analysis, Inc.
Aerospace and Defense
SOFR + 475
TMII Enterprises, LLC
Commercial Services & Supplies
SOFR+ 450
TCG 3.0 Jogger Acquisitionco, Inc.
Media
SOFR + 650
Team Services Group, LLC
Healthcare and Pharmaceuticals
SOFR+ 525
The Bluebird Group, LLC
Professional Services
SOFR+ 590
The Vertex Companies, LLC
Construction and Engineering
SOFR+ 475
TPC US Parent, LLC
Consumer Goods: Non-Durable
SOFR+ 590
Transgo, LLC
Automotive
SOFR+ 575
Tyto Athene, LLC
IT Services
SOFR+ 490
Urology Management Holdings, Inc.
Healthcare and Pharmaceuticals
SOFR+ 550
Walker Edison Furniture Company, LLC - Unfunded Term Loan (3),(5)
Wholesale
Walker Edison Furniture Company, LLC - New Money DIP (5)
Wholesale
Watchtower Buyer, LLC
Diversified Consumer Services
SOFR+ 600
Wash & Wax Systems LLC (5)
Automobiles
SOFR+ 550
Total First Lien Secured Debt
Subordinate Debt - 14.8 % of Net Assets
Integrative Nutrition, LLC
Diversified Consumer Services
Integrative Nutrition, LLC
Diversified Consumer Services
Wash & Wax Systems LLC
Automobiles
Total Subordinate Debt
Equity Securities - 20.3 % of Net Assets
48Forty Intermediate Holdings, Inc. - Common Equity
Containers and Packaging
New Insight Holdings, Inc. - Common Equity
Diversified Consumer Services
Lucky Bucks, LLC - Common Equity
Hotel, Gaming and Leisure
Output Services Group, Inc. - Common Equity
Business Services
Pragmatic Holdco, Inc. - Common Equity
Education
Wash & Wax Group, LP - Common Equity
Automobiles
White Tiger Newco, LLC - Common Equity (5)
Automobiles
Total Equity Securities
Total Investments - 2,141.5 % of Net Assets (6)(8)
Cash and Cash Equivalents - 121.5 % of Net Assets
BlackRock Federal FD Institutional 81 ( Money Market Fund)
Blackrock Liquidity Fed Fund Inst (Money Market Fund)
JP Morgan USD Liquidity Inst (Money Market Fund)
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Issuer Name
Acquisition
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
JP Morgan US Government Fund (Money Market Fund)
Goldman Sachs Financial Square Government Fund (Money Market Fund)
Non-Money Market Cash
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents — 2,263.0 % of Net Assets
Liabilities in Excess of Other Assets — ( 2,163.0 )% of Net Assets
Members' Equity— 100.0 %
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR". The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSSL’s accounting policy.
Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-accrual security.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VI, LLC, or, 3) securing the 2036 Asset-Backed Debt and held through PennantPark CLO II, Ltd. or, 4) securing the 2037 Asset-Backed Debt held through PennantPark CLO 12, LLC.
As of September 30, 2025, all investments are in U.S companies. Total cost, fair value, percentage of Net Assets for the U.S Companies were $ 1,103.7 million, $ 1,084.6 million and 2,141.5 %.
Partial PIK non-accrual security
All of our investments are not registered under the 1933 Act and have restrictions on resale.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Below is a listing of PSSL’s individual investments as of September 30, 2024 (Par and $ in thousands):
Issuer Name
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number
of Shares
Cost
Fair Value (2)
First Lien Secured Debt - 1,404.5 % of Net Assets
A1 Garage Merger Sub, LLC
Commercial Services & Supplies
SOFR+ 610
ACP Avenu Buyer, LLC
Business Services
SOFR+ 525
ACP Falcon Buyer, Inc.
Business Services
SOFR+ 550
Ad.net Acquisition, LLC
Media
SOFR+ 626
Aeronix, Inc
Aerospace and Defense
SOFR + 525
Alpine Acquisition Corp II
Containers and Packaging
SOFR+ 610
Anteriad, LLC (f/k/a MeritDirect, LLC)
Media: Advertising, Printing & Publishing
SOFR+ 590
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan
Media: Advertising, Printing & Publishing
SOFR+ 590
Applied Technical Services, LLC
Commercial Services & Supplies
SOFR+ 590
Arcfield Acquisition Corp.
Aerospace and Defense
SOFR+ 625
Beacon Behavioral Services, LLC
Healthcare and Pharmaceuticals
SOFR+ 525
Beta Plus Technologies, Inc.
Business Services
SOFR + 575
Big Top Holdings, LLC
Business Services
SOFR+ 625
BioDerm, Inc.
Healthcare and Pharmaceuticals
SOFR+ 650
Blackhawk Industrial Distribution, Inc.
Distributors
SOFR+ 640
BlueHalo Financing Holdings, LLC
Aerospace and Defense
SOFR+ 600
Broder Bros., Co.
Consumer Products
SOFR+ 611
Burgess Point Purchaser Corporation
Automotive
SOFR+ 535
By Light Professional IT Services, LLC
High Tech Industries
SOFR+ 698
Carnegie Dartlet, LLC
Media: Advertising, Printing & Publishing
SOFR+ 550
Cartessa Aesthetics, LLC
Distributors
SOFR+ 575
CF512, Inc.
Media
SOFR+ 619
Confluent Health, LLC
Healthcare and Pharmaceuticals
SOFR+ 400
Connatix Buyer, Inc.
Media
SOFR+ 561
Crane 1 Services, Inc.
Commercial Services & Supplies
SOFR+ 586
Dr. Squatch, LLC
Personal Products
SOFR+ 535
DRI Holding Inc.
Media
SOFR+ 535
DRS Holdings III, Inc.
Consumer Goods: Durable
SOFR+ 635
Dynata, LLC - First Out Term Loan (6)
Diversified Consumer Services
SOFR+ 526
Dynata, LLC - Last Out Term Loan
Diversified Consumer Services
SOFR+ 576
ECL Entertainment, LLC
Hotel, Gaming and Leisure
SOFR+ 400
EDS Buyer, LLC
Electronic Equipment, Instruments, and Components
SOFR+ 575
Exigo Intermediate II, LLC
Software
SOFR+ 635
ETE Intermediate II, LLC
Diversified Consumer Services
SOFR+ 650
Eval Home Solutions Intermediate, LLC
Healthcare and Pharmaceuticals
SOFR+ 575
Fairbanks More Defense
Aerospace and Defense
SOFR+ 450
Global Holdings InterCo LLC
Diversified Financial Services
SOFR+ 615
Graffiti Buyer, Inc.
Trading Companies & Distributors
SOFR+ 560
Hancock Roofing and Construction L.L.C.
Insurance
SOFR+ 560
HEC Purchaser Corp
Healthcare and Pharmaceuticals
SOFR+ 550
Hills Distribution, Inc
Business Services
SOFR+ 600
HW Holdco, LLC
Media
SOFR+ 590
Imagine Acquisitionco, LLC
Software
SOFR+ 510
Infinity Home Services Holdco, Inc.
Commercial Services & Supplies
SOFR+ 685
Integrative Nutrition, LLC
Diversified Consumer Services
SOFR+ 715
(PIK 2.25 %)
Inventus Power, Inc.
Consumer Goods: Durable
SOFR+ 761
ITI Holdings, Inc.
IT Services
SOFR+ 565
Kinetic Purchaser, LLC
Personal Products
SOFR+ 615
Lash OpCo, LLC
Personal Products
SOFR+ 785
(PIK 5.10 %)
LAV Gear Holdings, Inc. (6)
Capital Equipment
SOFR+ 643
LAV Gear Holdings, Inc. - Term Loan Incremental
Capital Equipment
SOFR+ 640
Lightspeed Buyer Inc.
Healthcare Providers and Services
SOFR+ 535
LJ Avalon Holdings, LLC
Environmental Industries
SOFR+ 525
Loving Tan Intermediate II, Inc.
Consumer Products
SOFR+ 650
Lucky Bucks, LLC - First-Out Term Loan (6)
Hotel, Gaming and Leisure
SOFR+ 765
Lucky Bucks, LLC - Last-Out Term Loan
Hotel, Gaming and Leisure
SOFR+ 765
MAG DS Corp
Aerospace and Defense
SOFR+ 550
Magenta Buyer, LLC - First-Out Term Loan
Software
SOFR+ 701
Magenta Buyer, LLC - Second-Out Term Loan
Software
SOFR+ 801
Magenta Buyer, LLC - Third-Out Term Loan
Software
SOFR+ 726
Marketplace Events, LLC - Super Priority First Lien Term Loan (6)
Media: Diversified and Production
SOFR+ 540
Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan (3)(6)
Media: Diversified and Production
Marketplace Events, LLC (6)
Media: Diversified and Production
SOFR+ 525
MBS Holdings, Inc.
Internet Software and Services
SOFR+ 585
MBS Holdings, Inc. (New Issue) - Incremental
Internet Software and Services
SOFR+ 660
MBS Holdings, Inc. (New Issue) - Second Incremental
Internet Software and Services
SOFR+ 635
MDI Buyer, Inc.
Chemicals, Plastics and Rubber
SOFR+ 575
MDI Buyer, Inc. - Incremental
Chemicals, Plastics and Rubber
SOFR+ 600
Meadowlark Acquirer, LLC
Professional Services
SOFR+ 590
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Below is a listing of PSSL’s individual investments as of September 30, 2024 (continued):
Issuer Name
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number of Shares
Cost
Fair Value (2)
Medina Health, LLC
Healthcare and Pharmaceuticals
SOFR+ 625
Megawatt Acquisitionco, Inc
Electronic Equipment, Instruments, and Components
SOFR+ 525
Mission Critical Electronics, Inc.
Capital Equipment
SOFR+ 590
MOREGroup Holdings, Inc
Business Services
SOFR+ 575
Municipal Emergency Services, Inc.
Distributors
SOFR+ 515
NBH Group LLC
Healthcare, Education & Childcare
SOFR+ 585
NORA Acquisition, LLC
Healthcare Providers and Services
SOFR+ 635
One Stop Mailing, LLC
Air Freight and Logistics
SOFR+ 636
ORL Acquisitions, Inc.
Consumer Finance
SOFR+ 940
(PIK 7.50 %)
Output Services Group, Inc - First-Out Term Loan
Business Services
SOFR+ 843
Output Services Group, Inc - Last-Out Term Loan
Business Services
SOFR+ 668
Owl Acquisition, LLC
Professional Services
SOFR+ 535
Ox Two, LLC
Construction and Building
SOFR+ 651
Pacific Purchaser, LLC
Business Services
SOFR+ 625
PCS Midco, Inc
Diversified Consumer Services
SOFR+ 575
PH Beauty Holdings III, Inc.
Wholesale
SOFR+ 543
PL Acquisitionco, LLC
Textiles, Apparel and Luxury Goods
SOFR+ 725
(PIK 4.00 %)
Pragmatic Institute, LLC (5)
Education
SOFR+ 750
(PIK 12.35 %)
Quantic Electronics, LLC
Aerospace and Defense
SOFR+ 635
Rancho Health MSO, Inc.
Healthcare Providers and Services
SOFR+ 560
Reception Purchaser, LLC
Air Freight and Logistics
SOFR+ 615
Recteq, LLC
Leisure Products
SOFR+ 715
RTIC Subsidiary Holdings, LLC
Consumer Goods: Durable
SOFR+ 575
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)
High Tech Industries
SOFR+ 575
Safe Haven Defense US, LLC
Construction and Building
SOFR+ 525
Sales Benchmark Index LLC
Professional Services
SOFR+ 620
Sargent & Greenleaf Inc.
Wholesale
SOFR+ 760
(PIK 1.00 %)
Schlesinger Global, Inc.
Business Services
SOFR+ 835
(PIK 0.50%)
Seaway Buyer, LLC
Chemicals, Plastics and Rubber
SOFR+ 615
Sigma Defense Systems, LLC
Aerospace and Defense
SOFR+ 690
Simplicity Financial Marketing Group Holdings, Inc
Diversified Financial Services
SOFR+ 640
Skopima Consilio Parent, LLC
Business Services
SOFR+ 461
Smartronix, LLC
Aerospace and Defense
SOFR+ 610
Smile Brands Inc.
Healthcare and Pharmaceuticals
SOFR+ 550
(PIK 1.50 %)
Solutionreach, Inc.
Healthcare and Pharmaceuticals
SOFR+ 715
Spendmend Holdings LLC
Healthcare Technology
SOFR+ 565
Summit Behavioral Healthcare, LLC
Healthcare and Pharmaceuticals
SOFR+ 425
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)
Aerospace and Defense
SOFR+ 500
TCG 3.0 Jogger Acquisitionco
Media
SOFR+ 650
Team Services Group, LLC
Healthcare and Pharmaceuticals
SOFR+ 500
Teneo Holdings, LLC
Business Services
SOFR+ 475
The Bluebird Group LLC
Professional Services
SOFR+ 665
The Vertex Companies, LLC
Construction and Engineering
SOFR+ 610
TPC Canada Parent, Inc. and TPC US Parent, LLC
Consumer Goods: Non-Durable
SOFR+ 565
Transgo, LLC
Automotive
SOFR+ 575
TWS Acquisition Corporation
Diversified Consumer Services
SOFR+ 640
Tyto Athene, LLC
IT Services
SOFR+ 490
Urology Management Holdings, Inc.
Healthcare and Pharmaceuticals
SOFR+ 550
Walker Edison Furniture Company LLC (4)(6)
Wholesale
Walker Edison Furniture Company LLC - Junior Revolving Credit Facility (4)(6)
Wholesale
Walker Edison Furniture Company LLC - DDTL - Unfunded (3)(4)(6)
Wholesale
Watchtower Buyer, LLC
Diversified Consumer Services
SOFR+ 600
Wildcat Buyerco, Inc.
Electronic Equipment, Instruments, and Components
SOFR+ 575
Zips Car Wash, LLC
Automobiles
SOFR+ 740
(PIK 1.50 %)
Total First Lien Secured Debt
Equity Securities - 10.5 % of Net Assets
New Insight Holdings, Inc.
Diversified Consumer Services
Lucky Bucks, LLC
Hotel, Gaming and Leisure
New MPE Holdings, LLC
Media: Diversified and Production
Output Services Group, Inc
Business Services
Walker Edison Furniture - Common Equity
Wholesale
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Issuer Name
Maturity
Industry
Current
Coupon
Basis Point
Spread Above
Index (1)
Par or Number of Shares
Cost
Fair Value (2)
Total Equity Securities
Total Investments - 1,415.0 % of Net Assets (7)(8)
Cash and Cash Equivalents - 106.0 % of Net Assets
BlackRock Federal FD Institutional 30 (Money Market Fund)
Total Cash and Cash Equivalents
Total Investments and Cash Equivalents — 1,521.0 % of Net Assets
Liabilities in Excess of Other Assets — ( 1,421.0 )% of Net Assets
Members' Equity— 100.0 %
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR", or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSSL’s accounting policy.
Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-accrual security
Partial PIK non-accrual security
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2036 Asset-Backed Debt and held through PennantPark CLO II, Ltd., or, 3) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VI, LLC.
As of September 30, 2024, all investments are in U.S companies. Total cost, fair value, and percentage of Net Assets for the U.S Companies were $ 929.0 million, $ 913.3 million and 1,415.0 %.
All of our investments are not registered under the 1933 Act and have restrictions on resale.
Below are the consolidated statements of assets and liabilities for PSSL (in thousands):
September 30, 2025
September 30, 2024
Assets
Investments at fair value (amortized cost—$ 1,103,716 and $ 928,983 , respectively)
Cash and cash equivalents (cost—$ 61,560 and $ 68,429 , respectively)
Interest receivable
Receivable for investments sold
Due from affiliate
Prepaid expenses and other assets
Total assets
Liabilities
Credit facility payable
2035 Asset-backed debt, net (par—$ 0 and $ 246,000 , respectively) (unamortized deferred financing costs of $ 0 and $ 2,066 , respectively)
2036 Asset-backed debt, net (par—$ 246,000 ) (unamortized deferred financing costs of $ 1,341 and $ 1,628 , respectively)
2037 Asset-backed debt, net (par—$ 246,000 and $ 0 , respectively) (unamortized deferred financing costs of $ 1,904 and $ 0 , respectively)
2037-R Asset-backed debt, net (par—$ 246,000 and $ 0 , respectively) (unamortized deferred financing costs of $ 2,518 and $ 0 , respectively)
Notes payable to members
Interest payable on Credit facility and asset backed debt
Payable for investments purchased
Interest payable on notes to members
Accrued expenses
Due to affiliate
Total liabilities
Members' equity
Total liabilities and members' equity
As of both September 30, 2025 and 2024 , PSSL had $ 0.4 million and $ 0.6 million unfunded commitments to fund investments, respectively.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Below are the consolidated statements of operations for PSSL (in thousands):
Year Ended
September 30,
Year Ended
September 30,
Investment income:
Interest
Other income
Total investment income
Expenses:
Interest and expenses on credit facility and asset-backed debt
Interest expense on notes to members
Administration services expenses
Other General and administrative expenses (1)
Expenses before debt issuance costs
Debt issuance costs
Total expenses
Net investment income
Realized and unrealized (loss) gain on investments and debt:
Net realized (loss) gain on investments
Realized loss on debt extinguishment
Net change in unrealized (depreciation) appreciation on investments
Net realized and unrealized gain (loss) on investments and debt
Net increase (decrease) in members' equity resulting from operations
No management or incentive fees are payable by PSSL. If any fees were to be charged, they would be separately disclosed in the Consolidated Statements of Operations.
PennantPark Senior Secured Loan Fund II LLC
In August 2025, we and Hamilton Lane ("HL") formed PSSL II, an unconsolidated joint venture. PSSL II will invest primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL II was formed as a Delaware limited liability company. PSSL II will invest in portfolio companies in the same industries in which we may directly invest. As of September 30, 2025, PSSL II had not commenced operations.
We and HL have committed to invest up to $ 200 million in the aggregate in the PSSL II, with the Company committing to invest up to $ 150 million and HL committing to invest up to $ 50 million. Investments by each of the Company and HL will be made in the form of membership interests and secured notes. The Company's commitment will consist of $ 105 million in secured notes and $ 45 million in membership interests. HL's commitment will consist of $ 35 million in secured notes and $ 15 million in membership interests. All material decisions regarding PSSL II must be submitted to its board of managers, which is comprised of an equal number of representatives from each of the Company and HL. Further, all portfolio and other material decisions require the affirmative vote of at least one board member designated by the Company and one board member from HL.
5. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value, as defined under ASC 820 is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.
ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.
Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets, or that are quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term, if applicable, of the financial instrument.
Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, our 2036 Asset-Backed Debt, 2036-R Asset-Backed Debt, 2023 Notes, 2037 Asset-Backed Debt and the Credit Facility are classified as Level 3. Our 2026 Notes are classified as Level 2 as they are financial instruments with readily observable market inputs. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.
The inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data is available, such information may be the result of consensus pricing information, disorderly transactions or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
asset includes observable orderly market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.
Our investments are generally structured as floating rate loans, mainly first lien secured debt, but also may include second lien secured debt, subordinated debt and equity investments. The transaction price, excluding transaction costs, is typically the best estimate of fair value at inception. Ongoing reviews by our Investment Adviser and independent valuation firms are based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information including comparable transactions, performance multiples and yields, among other factors. These non-public investments valued using unobservable inputs are included in Level 3 of the fair value hierarchy.
A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in our ability to observe valuation inputs may result in a reclassification for certain financial assets or liabilities.
In addition to using the above inputs to value cash equivalents, investments, our 2023 Notes, our 2026 Notes,our 2031 Asset-Backed Debt, our 2036 Asset-Backed Debt, our 2036-R Asset-Backed Debt, our 2037 Asset-Backed Debt and the Credit Facility, we employ the valuation policy approved by our board of directors that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value. See Note 2.
As outlined in the table below, some of our Level 3 investments using a market approach valuation technique are valued using the average of the bids from brokers or dealers. The bids include a disclaimer, may not have corroborating evidence, may be the result of a disorderly transaction and may be the result of consensus pricing. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of directors has a bona fide reason to believe any such bids do not reflect the fair value of an investment, it may independently value such investment by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available. In accordance with ASC 820, we do not categorize any investments for which fair value is measured using the net asset value per share as a practical expedient within the fair value hierarchy.
The remainder of our investment portfolio and our long-term Credit Facility are valued using a market comparable or an enterprise market value technique. With respect to investments for which there is no readily available market value, the factors that the board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the pricing indicated by the external event, excluding transaction costs, is used to corroborate the valuation. When using earnings multiples to value a portfolio company, the multiple used requires the use of judgment and estimates in determining how a market participant would price such an asset. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in an earnings before interest, taxes, depreciation and amortization, or EBITDA, multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA multiple will have the opposite effect.
Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):
Asset Category
Fair value at September 30, 2025
Valuation Technique
Unobservable Input
Range of Input
(Weighted Average) (1)
First lien
Market Comparable
Broker/Dealer bids or quotes
First lien
Market Comparable
Market yield
First lien
Enterprise Market Value
EBITDA multiple
First lien
Market Comparable
Revenue multiple
Second Lien
Market Comparable
Broker/Dealer bids or quotes
Subordinated debt
Market Comparable
Market yield
Subordinated debt
Enterprise Market Value
EBITDA multiple
Equity
Enterprise Market Value
EBITDA multiple
Total Level 3 investments
Long-Term Credit Facility
Market Comparable
Market Yield
Asset Category
Fair value at September 30, 2024
Valuation Technique
Unobservable Input
Range of Input
(Weighted Average) (1)
First lien
Market Comparable
Broker/Dealer bids
or quotes
First lien
Market Comparable
Market Yield
First lien
Enterprise Market Value
EBITDA multiple
Subordinated debt
Market Comparable
Market Yield
Subordinated debt
Enterprise Market Value
EBITDA multiple
Equity
Enterprise Market Value
EBITDA multiple
Total Level 3 investments
Long-Term Credit Facility
Market Comparable
Market Yield
The weighted averages disclosed in the table were weighted by their relative fair value .
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Our investments, cash and cash equivalents, Credit Facility, 2026 Notes, 2036-R Asset-Backed Debt, 2036 Asset-Backed Debt, and 2037 Asset-Backed Debt were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):
Fair Value at September 30, 2025
Description
Fair Value
Level 1
Level 2
Level 3
Measured at Net
Asset Value (1)
First lien
Second Lien and Subordinated debt
Equity
Total investments
Cash and cash equivalents
Total investments and cash and cash equivalents
Long Term Credit Facility payable
2026 Notes payable (2)
2036 Asset-Backed Debt (2)
2036-R Asset-Backed Debt (2)
2037 Asset-Backed Debt (2)
Total debt
In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSSL is measured using the net asset value per share (or its equivalent) as a practical expedient for fair value in accordance with the specialized accounting guidance for investment companies, and thus have not been classified in the fair value hierarchy.
We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes, the 2036 Asset-Backed Debt, the 2036-R Asset-Backed Debt, and the 2037 Asset-Backed Debt and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.
Fair Value at September 30, 2024
Description
Fair Value
Level 1
Level 2
Level 3
Measured at Net
Asset Value (1)
First lien
Second lien and Subordinated debt
Equity
Total investments
Cash and cash equivalents
Total investments and cash and cash equivalents
Long Term Credit Facility payable
2026 Notes payable (2)
2036 Asset-Backed Debt (2)
2036-R Asset-Backed Debt (2)
Total debt
In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSSL and PTSF is measured using the net asset value per share (or its equivalent) as a practical expedient for fair value in accordance with the specialized accounting guidance for investment companies, and thus has not been classified in the fair value hierarchy.
We elected not to apply the fair value option allowed by ASC 825-10 to the 2026 Notes, the 2036 Asset-Backed Debt and the 2036-R Asset Backed Debt thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value, which approximates the fair value.
The tables below show a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) ($ in thousands):
Year Ended September 30, 2025
Description
First Lien
Second lien,
subordinated
debt and equity
investments
Totals
Beginning Balance
Net realized losses
Net change in unrealized depreciation
Purchases, PIK interest, net discount accretion and non-cash exchanges
Sales, repayments and non-cash exchanges
Transfers in and/or out of Level 3
Ending Balance
Net change in unrealized depreciation reported within the net change in unrealized
depreciation on investments in our Consolidated Statements of Operations
attributable to our Level 3 assets still held at the reporting date.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Year Ended September 30, 2024
Description
First Lien
Second lien,
subordinated debt
and equity
investments
Totals
Beginning Balance
Net realized losses
Net change in unrealized depreciation
Purchases, PIK interest, net discount accretion and non-cash exchanges
Sales, repayments and non-cash exchanges
Transfers in and/or out of Level 3
Ending Balance
Net change in unrealized appreciation reported within the net change in unrealized
appreciation on investments in our Consolidated Statements of Operations
attributable to our Level 3 assets still held at the reporting date.
The table below shows a reconciliation of the beginning and ending balances for liabilities recognized at fair value and measured using significant unobservable inputs (Level 3) ($ in thousands):
Years Ended September 30,
Long-Term Credit Facility
Beginning balance (cost – $ 443,855 and $ 85,619 , respectively)
Net change in unrealized (depreciation) appreciation included in earnings
Borrowings
Repayments
Ending balance (cost – $ 683,855 and $ 443,855 respectively)
As of September 30, 2025, we had outstanding non-U.S. dollar borrowings on our Credit Facility. The following table shows our non-U.S dollar borrowings as of September 30, 2025 (CAD and $ in thousands):
Foreign Currency
Amount
Borrowed
Borrowing Cost
Current Value
Reset Date
Change in Fair
Value
Canadian Dollar
CAD 2,000
As of September 30, 2024 we had outstanding non-U.S. dollar borrowings on our Credit Facility. The following table shows our non-U.S. dollar borrowings as of September 30, 2024 (CAD and $ in thousands):
Foreign Currency
Amount
Borrowed
Borrowing Cost
Current Value
Reset Date
Change in Fair
Value
Canadian Dollar
CAD 2,000
Generally, the carrying value of our consolidated financial liabilities approximates fair value. We have adopted the principles under ASC Subtopic 825-10, Financial Instruments, or ASC 825-10 , which provides companies with an option to report selected financial assets and liabilities at fair value, and made an irrevocable election to apply ASC 825-10 to the Credit Facility and the 2023 Notes. We elected to use the fair value option for the Credit Facility and the 2023 Notes to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we incurred expenses of $ 3.3 million, $ 6.5 million, and zero relating to amendment costs on the Credit Facility and debt issuance costs on the 2023 Notes during the years ended September 30, 2025, 2024, and 2023, respectively. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets and Liabilities and changes in fair value of the Credit Facility and the 2023 Notes are reported in our Consolidated Statements of Operations. We elected not to apply ASC 825-10 to any other financial assets or liabilities, including our 2026 Notes, 2036-R Asset-Backed Debt, 2036 Asset-Backed Debt, and 2037 Asset-Backed Debt.
For the years ended September 30, 2025, 2024, and 2023 , the Credit Facility or our Prior Credit Facility, as applicable, the 2023 Notes had a net change in unrealized appreciation (depreciation) of approximately zero , zero , and $( 2.3 ) million, respectively. As of September 30, 2025 and 2024 , the net unrealized appreciation (depreciation) on the Credit Facility and the 2023 Notes totaled approximately zero and zero , respectively. We use a nationally recognized independent valuation service to measure the fair value of the Credit Facility and 2023 Notes in a manner consistent with the valuation process that the board of directors uses to value our investments.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
6. TRANSACTIONS WITH AFFILIATED COMPANIES
An affiliated portfolio company is a company in which we have ownership of 5 % or more of its voting securities. A portfolio company is generally presumed to be a non-controlled affiliate when we own at least 5 % but 25 % or less of its voting securities and a controlled affiliate generally when we own more than 25 % of its voting securities. Transactions related to our funded investments with both controlled and non-controlled affiliates for the year ended September 30, 2025 and 2024 were as follows ($ in thousands):
Name of Investment
Fair Value at September 30, 2024
Gross Additions
Sale of/ Distribution from Affiliates
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at September 30, 2025
Interest Income
Dividend/Other Income
Net Realized
Gains (Losses)
Controlled Affiliates
Marketplace Events, LLC**
PennantPark Senior Secured Loan Fund I LLC *
Total Controlled Affiliates
* We and Kemper are the members of PSSL, a joint venture formed as a Delaware limited liability company that is not consolidated by us for financial reporting purposes. The members of PSSL make investments in the PSSL in the form of first lien secured debt and equity interests, and all portfolio and other material decisions regarding PSSL must be submitted to PSSL’s board of directors or investment committee, both of which are comprised of two members appointed by each of us and Kemper. Because management of PSSL is shared equally between us and Kemper, we do not believe we control PSSL for purposes of the 1940 Act or otherwise.
** Marketplace was sold during Q1 2025 quarter.
Name of Investment
Fair Value at September 30, 2023
Gross Additions
Sale of/ Distribution from Affiliates
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at September 30, 2024
Interest Income
Dividend/Other Income
Net Realized
Gains (Losses)
Controlled Affiliates
Marketplace Events, LLC
PennantPark Senior Secured
Loan Fund I LLC *
Total Controlled Affiliates
* We and Kemper are the members of PSSL, a joint venture formed as a Delaware limited liability company that is not consolidated by us for financial reporting purposes. The members of PSSL make investments in the PSSL in the form of first lien secured debt and equity interests, and all portfolio and other material decisions regarding PSSL must be submitted to PSSL’s board of directors or investment committee, both of which are comprised of two members appointed by each of us and Kemper. Because management of PSSL is shared equally between us and Kemper, we do not believe we control PSSL for purposes of the 1940 Act or otherwise
7. CHANGE IN NET ASSETS FROM OPERATIONS PER COMMON SHARE
The following information sets forth the computation of basic and diluted per share net increase (decrease) in net assets resulting from operations:
Years Ended September 30,
Numerator for net increase in net assets resulting from operations
Denominator for basic and diluted weighted average shares
Basic and diluted net increase in net assets per share resulting from operations
8. TAXES AND DISTRIBUTIONS
Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal tax regulations, which may materially differ from amounts determined in accordance with GAAP. These book-to-tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are reclassified to undistributed net investment income, accumulated net realized gain or paid-in-capital, as appropriate. Distributions from net realized capital gains, if any, are normally declared and paid annually, but the Company may make distributions on a more frequent basis to comply with the distribution requirements for RICs under the Code.
As of September 30, 2025 and 2024, the cost of investments for federal income tax purposes approximates amortized cost reported in the Consolidated Schedule of Investments.
The following amounts were reclassified for tax purposes (in thousands):
Years Ended September 30,
Decrease in paid-in capital
Decrease in accumulated net realized loss
Increase in undistributed net investment income
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
The following reconciles net increase in net assets resulting from operations to taxable income:
Years Ended September 30,
Net increase in net assets resulting from operations
Net realized gain (loss) on investments
Net realized gain (loss) on debt
Net change in unrealized depreciation (appreciation) on investments and debt
Other book-to-tax differences
Other non-deductible expenses
Taxable income before dividends paid deduction
The components of undistributed taxable income on a tax basis and reconciliation to accumulated deficit on a book basis are as follows (in thousands):
As of September 30,
Undistributed ordinary income – tax basis
Short-term realized loss carried forward
Long-term realized loss carried forward
Distributions payable and other book to tax differences
Net unrealized appreciation (depreciation) of investments and debt
Total accumulated deficit – book basis
The tax characteristics of distributions declared are as follows (in thousands):
Years Ended September 30,
Ordinary income (including short-term gains, if any)
Long-term capital gain
Total distributions
Total distributions per share based on weighted average shares
9. CASH AND CASH EQUIVALENTS
Cash equivalents represent cash in money market funds pending investment in longer-term portfolio holdings. Our portfolio may consist of temporary investments in U.S. Treasury Bills (of varying maturities), repurchase agreements, money market funds or repurchase agreement-like treasury securities. These temporary investments with original maturities of 90 days or less are deemed cash equivalents and are included in the Consolidated Schedule of Investments. At the end of each fiscal quarter, we may take proactive steps to preserve investment flexibility for the next quarter by investing in cash equivalents, which is dependent upon the composition of our total assets at quarter-end. We may accomplish this in several ways, including purchasing U.S. Treasury Bills and closing out positions on a net cash basis after quarter-end, temporarily drawing down on the Credit Facility, or utilizing repurchase agreements or other balance sheet transactions as are deemed appropriate for this purpose. These amounts are excluded from average adjusted gross assets for purposes of computing the Investment Adviser’s management fee. U.S. Treasury Bills with maturities greater than 60 days from the time of purchase are valued consistent with our valuation policy. As of September 30, 2025 cash and cash equivalents consisted of money market funds and non-money market funds in the amounts of $ 40.7 million and $ 82.0 million, respectively. As of September 30, 2024, cash and cash equivalents consisted of money market funds and non-money market funds in the amounts of $ 22.2 million and $ 89.8 million, respectively.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
10. FINANCIAL HIGHLIGHTS
Below are the financial highlights for the years ended September 30 ($ in thousands, except share and per share data):
Per Share Data:
Net asset value, beginning of year
Net investment income (1)
Net change in realized and unrealized (loss) gain (1)
Net increase in net assets resulting from operations (1)
Distributions to stockholders (1), (2)
Distribution of net investment income
Distribution of realized gains
Total distributions to stockholders
Accretive (Dilutive) effect of common stock issuance
Net asset value, end of year
Per share market value, end of year
Total return (3)
Shares outstanding at end of year
Ratios / Supplemental Data:
Ratio of operating expenses to average net assets (4)
Ratio of debt related expenses to average net assets (5)
Ratio of total expenses to average net assets (5)
Ratio of net investment income to average net assets (5)
Net assets at end of year
Weighted average debt outstanding
Weighted average debt per share (1)
Asset coverage per unit (6)
Portfolio turnover ratio
*The expense and investment income ratios do not reflect the Company's proportionate share of income and expenses of PSSL and PTSF
Based on the weighted average shares outstanding for the respective periods.
The tax status of distributions is calculated in accordance with income tax regulations, which may differ from amounts determined under GAAP, and reported on Form 1099-DIV each calendar year.
Based on the change in market price per share during the periods and assumes distributions, if any, are reinvested.
Excludes debt related costs.
Includes interest and expenses on debt (annualized) as well as Credit Facility amendment and debt issuance costs, if any (not annualized).
The asset coverage ratio for a class of senior securities representing indebtedness is calculated on our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the senior securities representing indebtedness at par (changed from fair value). This asset coverage ratio is multiplied by $ 1,000 to determine the asset coverage per unit.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
11. DEBT
The annualized weighted average cost of debt for the years ended September 30, 2025, 2024, and 2023 , inclusive of the fee on the undrawn commitment on the Credit Facility or the Prior Credit Facility, as applicable, amendment costs and debt issuance costs, was 6.8 %, 8.5 % and 6.2 %, respectively. As of September 30, 2025 , in accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that we are in compliance with a 150 % asset coverage ratio requirement after such borrowing.
On April 5, 2018, our board of directors approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the Small Business Credit Availability Act, or SBCAA). As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200 % (i.e., $1 of debt outstanding for each $1 of equity) to 150 % (i.e., $2 of debt outstanding for each $1 of equity), effective as of April 5, 2019, subject to compliance with certain disclosure requirements. As of September 30, 2025 and 2024 , our asset coverage ratio, as computed in accordance with the 1940 Act, was 160 % and 174 %, respectively.
Credit Facility
Maximum borrowings under Funding I’s multi-currency Credit Facility with affiliates of Truist Bank (formerly SunTrust Bank), or the Lenders was $ 718.0 million (decreased from $ 736.0 million in April 2025) as of September 30, 2025 , subject to satisfaction of certain conditions and the regulatory restrictions that the 1940 Act imposes on us as a BDC, has an interest rate spread above SOFR (or an alternative risk-free floating interest rate index) of 200 basis points , a maturity date of August 2030 and a revolving period that ends in August 2028 . As of September 30, 2025 and 2024 , Funding I had $ 683.9 million and $ 443.9 million of outstanding borrowings under the Credit Facility, respectively. The Credit Facility had a weighted average interest rate of 6.3 % and 7.5 %, exclusive of the fee on undrawn commitments as of September 30, 2025 and 2024, respectively. As of September 30, 2025 and 2024 , we had $ 34.1 million and $ 192.1 million of unused borrowing capacity under the Credit Facility, respectively, subject to leverage and borrowing base restrictions.
In April 2025, the Credit Facility was amended. The terms of the amendment decreased the aggregate commitment amounts of the lenders party to the Credit Facility from $ 736.0 million to $ 718.0 million, decreased pricing under the Credit Facility to SOFR plus 200 basis points from SOFR plus 225 basis points, extended the reinvestment period one year to August 2028 from August 2027, extended the maturity date of the Credit Facility by one year to August 2030 from August 2029, and increased the maximum first lien advance rate to 72.5 % from 70.0 %.
The Credit Facility contains covenants, including, but not limited to, restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance of a minimum equity investment in Funding I and income ratio as well as restrictions on certain payments and issuance of debt. The Credit Facility compliance reporting is prepared on a basis of accounting other than GAAP. As of September 30, 2025, we were in compliance with the covenants relating to the Credit Facility.
We own 100 % of the equity interest in Funding I and treat the indebtedness of Funding I as our leverage. Our Investment Adviser serves as collateral manager to Funding I under the Credit Facility.
Our interest in Funding I (other than the management fee) is subordinate in priority of payment to every other obligation of Funding I and is subject to certain payment restrictions set forth in the Credit Facility. We may receive cash distributions on our equity interests in Funding I only after it has made all required payments of (1) cash interest and, if applicable, principal to the Lenders, (2) administrative expenses and (3) claims of other unsecured creditors of Funding I. The Investment Adviser has irrevocably directed that any management fee owed with respect to such services is to be paid to the Company so long as the Investment Adviser remains the collateral manager.
2023 Notes
In November 2017, we issued $ 138.6 million aggregate principal amount of our 2023 Notes that matured on December 15, 2023. The 2023 Notes were issued pursuant to a deed of trust between the Company and Mishmeret Trust Company, Ltd., as trustee in November 2017. In connection with this offering, we have dual listed our common stock on the TASE. On February 7, 2024, the Company filed a notice with the Israel Securities Authority and the TASE voluntarily requesting to delist the Company's common stock from trading on the TASE. The last day of trading on the TASE was May 6, 2024 and the delisting of the Company's common stock from the TASE took effect on May 8, 2024.
The 2023 Notes paid interest at a rate of 4.3 % per year. Interest on the 2023 Notes was payable semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2018 . The principal on the 2023 Notes was payable in four annual installments as follows: 15 % of the original principal amount on December 15, 2020, 15 % of the original principal amount on December 15, 2021, 15 % of the original principal amount on December 15, 2022 and 55 % of the original principal amount on December 15, 2023. On December 15, 2023, the remaining outstanding 2023 Notes were repaid in full.
The 2023 Notes were general, unsecured obligations, rank equal in right of payment with all of PennantPark Floating Rate Capital Ltd.’s existing and future senior unsecured indebtedness and are generally redeemable at our option. The deed of trust governing the 2023 Notes includes certain customary covenants, including minimum equity requirements, and events of default. Please refer to the deed of trust filed as Exhibit (d)(8) to our post-effective amendment filed on December 13, 2017 for more information. In connection with this offering, we dual listed our common stock on the TASE. On February 7, 2024, the Company filed a notice with the Israel Securities Authority and the TASE voluntarily requesting to de-list the Company's common stock form trading on the TASE. The last day of trading on the TASE was May 6, 2024 and the de-listing of the Company's stock from the TASE took effect on May 8, 2024.
The 2023 Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act or in transactions exempt from, or not subject to, such registration requirements.
2026 Notes
In March 2021 and in October 2021, we issued $ 100.0 million and $ 85.0 million, respectively, in aggregate principal amount of $ 185.0 million of our 2026 Notes at a public offering price per note of 99.4 % and 101.5 %, respectively. Interest on the 2026 Notes is paid semi-annually on April 1 and October 1 of each year, at a rate of 4.25 % per year, commencing October 1, 2021. The effective interest rate is 4.15%. The 2026 Notes mature on April 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are our general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
to the extent of the value of the assets securing such indebtedness and structurally subordinated to all of our existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.
2031 Asset-Backed Debt / 2036-R Asset-Backed Debt
In September 2019, the Company completed the $ 301.4 million term debt securitization. Term debt securitizations, also known as CLOs, are a form of secured financing incurred by the Company, which is consolidated by the Company and subject to the Company’s asset coverage requirements. The 2031 Asset-Backed Debt was issued by the Securitization Issuer. The 2031 Asset-Backed Debt was secured by the middle market loans, participation interests in middle market loans and other assets of the Securitization Issuer. The Debt Securitization was executed through (A) a private placement of: (i) $ 78.5 million Class A-1 Senior Secured Floating Rate Loans maturing 2031, which bore interest at the three-month SOFR plus 1.8 % , (ii) $ 15.0 million Class A-2 Senior Secured Fixed Rate Notes due 2031, which bore interest at 3.7 %, (iii) $ 14.0 million Class B-1 Senior Secured Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 2.9 % , (iv) $ 16.0 million Class B-2 Senior Secured Fixed Rate Notes due 2031, which bore interest at 4.3 %, (v) $ 19.0 million Class C‑1 Secured Deferrable Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 4.0 % , (vi) $ 8.0 million Class C-2 Secured Deferrable Fixed Rate Notes due 2031, which bore interest at 5.4 %, and (vii) $ 18.0 million Class D Secured Deferrable Floating Rate Loans due 2031, which bore interest at the three-month SOFR plus 4.8 % and (B) the borrowing of $ 77.5 million Class A‑1 Senior Secured Floating Rate Notes due 2031, which bore interest at the three-month SOFR plus 1.8 % , under a credit agreement by and among the Securitization Issuers, as borrowers, various financial institutions, as lenders, and U.S. Bank National Association, as collateral agent and as loan agent. The annualized interest on the 2031 Asset-Backed Debt will be paid, to the extent of funds available. The reinvestment period of the Debt Securitization ended on October 15, 2023 and the 2031 Asset-Backed Debt was scheduled to mature on October 15, 2031.
On the closing date of the Debt Securitization, in consideration of our transfer to the Securitization Issuer of the initial closing date loan portfolio, which included loans distributed to us by certain of our wholly-owned subsidiaries, the Securitization Issuer transferred to us 100 % of the Preferred Shares of the Securitization Issuer, 100 % of the Class D Secured Deferrable Floating Rate Notes issued by the Securitization Issuer, and a portion of the net cash proceeds received from the sale of the 2031 Asset-Backed Debt. The Preferred Shares of the Securitization Issuer do not bear interest and had a stated value of approximately $ 55.4 million at the closing of the Debt Securitization.
The 2031 Asset-Backed Debt is included in the Consolidated Statement of Assets and Liabilities as debt of the Company and the Class D Secured Deferrable Floating Rate Notes and the Preferred Shares of the Securitization Issuer were eliminated in consolidation. As of September 30, 2025 and 2024, the Company had zero, respectively, of 2031 Asset-Backed Debt outstanding with a weighted average interest rate of zero, respectively. As of September 30, 2025 and 2024, the unamortized fees on the 2031 Asset-Backed Debt were zero, respectively.
On July 25, 2024, the Company closed the refinancing of the 2031 Asset-Backed Debt and upsize of a four-year reinvestment period, twelve-year final maturity $ 351.0 million debt securitization in the form of a collateralized loan obligation (the “2036-R Asset-Backed Debt”). The 2036-R Asset-Backed Debt was executed through: (A) the issuance by the Issuers of the following classes of notes pursuant that certain indenture, dated September 19, 2019, by and among the Issuers and U.S. Bank Trust Company, National Association, as amended by the second supplemental indenture, dated June 25, 2024): (i) $ 203 million of A-1-R Notes, which bear interest at the three-month SOFR plus 1.75 % , (ii) $ 10.5 million of A-2-R Notes, which bear interest at three-month SOFR plus 1.90 % , (iii) $ 12 million of Class B-R Notes, which bear interest at three-month SOFR plus 2.05 % , (iv) $ 28 million of C-R Notes, which bear interest at three-month SOFR plus 2.75 % and (v) $ 21 million of D-R Notes, which bear interest at three-month SOFR plus 4.30 % , (B) the issuance by the Issuer of $ 64 million of subordinated notes pursuant to the Indenture and (C) the borrowing by the Issuer of $ 12.5 million of Class B-R Loans, which bear interest at three-month SOFR plus 2.05 % , pursuant to a credit agreement, dated the closing date, by and among the Issuers, the various financial institutions and other persons party thereto, as lenders and U.S. Bank Trust Company, National Association, as loan agent and as trustee. The Replacement Debt matures in July 2036. The Replacement Debt was 100 % funded at .
The obligations of the Issuers under the Replacement are non-recourse to the Company. The Company retained the Class D-R Notes and the Subordinated Notes through a consolidated subsidiary. As of September 30, 2025 and 2024 , the Company had $ 266.0 million, respectively, of 2036-R Asset-Backed Debt outstanding with a weighted average interest rate of 6.2 % and 7.2 %, respectively. As of September 30, 2025 and 2024 , the unamortized fees on the 2036-R Asset-Backed Debt were $ 0.6 million and $ 0.8 million, respectively.
Our Investment Adviser serves as collateral manager to the Securitization Issuer pursuant to the Collateral Management Agreement. For so long as our Investment Adviser serves as collateral manager, it will elect to irrevocably waive any collateral management fee to which it may be entitled under the Collateral Management Agreement.
2036 Asset-Backed Debt
In February 2024, the Company completed the $ 350.6 million term debt securitization. Term debt securitizations, also known as CLOs, are a form of secured financing incurred by the Company, which is consolidated by the Company and subject to the Company’s asset coverage requirements. The 2036 Asset-Backed Debt was issued by the 2036 Securitization Issuer. The 2036 Asset-Backed Debt is secured by the middle market loans, participation interests in middle market loans and other assets of the 2036 Securitization Issuer. The Debt Securitization was executed through (A) a private placement of: (i) $ 139.5 million of AAA(sf) Class A-1 Notes, which bear interest at the three-month SOFR plus 2.30 %, (ii) $ 14 million of AAA(sf) Class A-2 Notes, which bear interest at three-month SOFR plus 2.70 % , (iii) $ 24.5 million of AA(sf) Class B Notes, which bear interest at three-month SOFR plus 2.90 % , (iv) $ 28 million of A(sf) Class C Notes, which bear interest at three-month SOFR plus 3.90 % , (v) $ 21 million of BBB-(sf) Class D Notes, which bear interest at three-month SOFR plus 5.90 % , (together, the “Secured Notes”), and (vi) $ 63.6 million of subordinated notes (“Subordinated Notes”) and (B) the borrowing of $ 60.0 million AAA(sf) Class A-1 Senior Secured Floating Rate Loans (the “Class A-1 Loans” and together with the Secured Notes and Subordinated Notes, the “Debt”), which bear interest at three-month SOFR plus 2.30 % , under a credit agreement (the “Credit Agreement”), dated as of the Closing Date, by and among the Issuer, as borrower, various financial institutions, as lenders, and Wilmington Trust, National Association, as collateral agent and as loan agent. The annualized interest on the 2036 Asset-Backed Debt will be paid, to the extent of funds available. The Debt is scheduled to mature on April 18, 2036.
The 2036 Asset-Backed Debt is included in the Consolidated Statement of Assets and Liabilities as debt of the Company and the Subordinated Notes of the 2036-Securitization Issuer were eliminated in consolidation. As of September 30, 2025 and September 30, 2024, the Company had $ 287.0 million of 2036 Asset-Backed Debt outstanding with a weighted average interest rate of 7.1 % and 8.1 %. As of September 30, 2025 and September 30, 2024, the unamortized fees on the 2036 Asset-Backed Debt were $ 2.4 million and $ 2.9 million, respectively.
PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
SEPTEMBER 30, 2025
Our Investment Adviser serves as collateral manager to the 2036-Securitization Issuer pursuant to the Collateral Management Agreement. For so long as our Investment Adviser serves as collateral manager, it will elect to irrevocably waive any collateral management fee to which it may be entitled under the Collateral Management Agreement.
2037 Asset-Backed Debt
In February 2025, the Company completed the 2037 Debt Securitization. The 2037 Notes were issued by the 2037 Securitization Issuer and are backed by a portfolio of collateral obligations consisting of middle market loans and participation interests in middle market loans as well as by other assets of the 2037 Securitization Issuer. The transaction was executed through (A) a private placement of $ 220.5 million of AAA(sf) Class A-1 Notes, which bear interest at the three-month SOFR plus 1.49 % (the “2037 Class A-1 Notes”), (ii) $ 19.0 million of AAA(sf) Class A-2 Notes, which bear interest at three-month SOFR plus 1.60 % (the“2037 Class A-2 Notes”), (iii) $ 28.5 million of AA(sf) Class B Notes, which bear interest at three-month SOFR plus 1.75 % (the “2037 Class B Notes”), (iv) $ 38.0 million of A(sf) Class C Notes, which bear interest at three-month SOFR plus 2.20 % (the “2037 Class C Notes”), (v) $ 28.5 million of BBB-(sf) Class D Notes, which bear interest at three-month SOFR plus 3.60 % , (the “2037 Class D Notes” and, collectively with the 2037 Class A-2 Notes, the 2037 Class B Notes and the 2037 Class D Notes, the “2037 Secured Notes”), and (vi) $ 85.1 million of subordinated notes (the “2037 Subordinated Notes” and, together with the 2037 Secured Notes, the“2037 Notes”) and (B) the borrowing by the 2037 Securitization Issuer of $ 10.0 million under AAA(sf) Class A-1L-A floating rate loans (the “2037 Class A-1L-ALoans”) and $ 45.0 million under AAA(sf) Class A-1L-B floating rate loans (the “2037 Class A-1L-B Loans” and, together with the Class A-1L-A Loans, the “2037Asset-Backed Loans,” and collectively with the 2037 Secured Notes and 2037 Subordinated Notes, the “2037 Asset-Backed Debt”), which bear interest at three-month SOFR plus 1.49 % . The 2037 Asset-Backed Debt is scheduled to mature on April 20, 2037.
The 2037 Asset-Backed Debt is included in the Consolidated Statement of Assets and Liabilities as debt of the Company and the 2037 Class D Notes and the 2037 Subordinated Notes of the 2037 Securitization Issuer were eliminated in consolidation. The Company retained the 2037 Class D Notes and the 2037 Subordinated Notes. A portion of the proceeds received by the 2037 Securitization Issuer from the loans securing the 2037 Asset-Backed Loans and the 2037 Secured Notes may be used to purchase additional middle market loans under the direction of the Investment Adviser through April 20, 2029. As of September 30, 2025, the Company had $ 361.0 million of 2037 Asset-Backed Debt outstanding with a weighted average interest rate of 5.9 %. As of September 30, 2025, the unamortized fees on the 2037 Asset-Backed Debt were $ 2.7 million.
Our Investment Adviser serves as collateral manager to the 2037 Securitization Issuer pursuant to the Collateral Management Agreement. For so long as our Investment Adviser serves as collateral manager, it will elect to irrevocably waive any collateral management fee to which it may be entitled under the Collateral Management Agreement.
12. COMMITMENTS AND CONTINGENCIES
From time to time, we, the Investment Adviser or the Administrator may be a party to legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations. Unfunded debt and equity investments, if any, are disclosed in the Consolidated Schedules of Investments. As of September 30, 2025 and 2024 , we had $ 603.7 million and $ 632.2 million, respectively, in commitments to fund investments. Additionally, as described in Note 4, the Company had unfunded commitments of up to $ 65.6 million and zero to PSSL as of September 30, 2025 and 2024 , respectively, that may be contributed primarily for the purpose of funding new investments approved by the PSSL board of directors or investment committee. Additionally, as described in Note 4, the Company had unfunded commitments of up to $ 150 million and zero to PSSL II as of September 30, 2025 and 2024, respectively, that may be contributed primarily for the purpose of funding new investments approved by the PSSL II board of directors or investment committee.
13. UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES
We must determine which, if any, of our unconsolidated controlled portfolio companies is a "significant subsidiary" within the meaning of Regulation S-X. We have determined that, as of September 30, 2025, PennantPark Senior Secured Loan Fund I LLC triggered at least one of the significance tests. Because none of the significance tests under Rule 3-09 of Regulation S-X were triggered by PennantPark Senior Secured Loan Fund I LLC, separate audited financial statements of PennantPark Senior Secured Loan Fund I LLC are not required (and instead only summarized financial information is required pursuant to Rule 4-08(g) of Regulation S-X) but nonetheless, separate audited financial statements of PennantPark Senior Secured Loan Fund I LLC for the years ended September 30, 2025, 2024, and 2023 are also being filed voluntarily herewith as Exhibit 99.3 and Exhibit 99.4 to assist investors with better understanding the financial position of PennantPark Senior Secured Loan Fund I LLC.
14. SEGMENT REPORTING
The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation through debt and equity investments. CODM is comprised of the Company's Chief Executive Officer and Chief Financial Officer. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primary based on the Company's net increase (decrease) in net assets resulting from operations ("Net Income") and net investments income ("NII"). The CODM utilizes Net Income and NII as the key metrics in determining the amount of dividends to be distributed to the Company's stockholders. As the Company's operations comprise of single reporting segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities as "total assets" and significant segment expenses are listed on accompanying consolidated statements of operations.
15. SUBSEQUENT EVENTS
Subsequent to September 30, 2025, PSSL II commenced operations.
