PennantPark Floating Rate Capital Ltd.

PennantPark Floating Rate Capital Ltd. is a Business Development Company (BDC) that aims to generate current income and capital appreciation while preserving capital. The company primarily invests in floating rate loans and other investments made to U.S. middle-market companies, which are defined as companies with annual revenues between $50 million and $1 billion. These investments are typically rated below investment grade, also known as "leveraged loans," "high yield" securities, or "junk bonds," which carry speculative characteristics and are generally higher risk compared to investment-grade debt. However, the senior secured floating rate loans in which the company invests typically have historically lower default rates than junk bonds, represent the senior source of capital in a borrower's capital structure, and often have assets pledged as collateral. The company's debt investments generally have maturities ranging 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 across various industries and geographical regions. Under normal market conditions, at least 80% of the value of its managed assets (net assets plus borrowings for investment purposes) are expected to be invested in floating rate loans and other variable-rate interest investments. First lien secured debt is generally expected to represent at least 65% of the overall portfolio. The company also expects to opportunistically invest up to 35% of its overall portfolio in other investment types, including second lien secured debt, subordinated debt, and, to a lesser extent, equity investments.