PennantPark closes $299M securitization, its 13th on the CLO platform

What's the deal? PennantPark Credit Secondary FundDealroom has a profile for this one. Try Dealroom → has closed a $298.6 million debt securitization, the firm announced on October 9. Scotia Capital (USA) Inc.Dealroom has a profile for this one. Try Dealroom → acted as sole lead arranger and placement agent.

The details: The deal carries a one-year reinvestment period and a ten-year final maturity, with the debt maturing in July 2036. The structure spans AAA-rated Class A notes and loans priced at three-month SOFR plus 1.40% through subordinated notes.

Why it matters: This is PennantParkDealroom has a profile for this one. Try Dealroom →'s thirteenth securitization and lands in the top 10% of US fintech debt rounds by size, based on more than 2,200 comparable deals. The firm currently manages roughly $4 billion in middle-market securitization assets.

What's the endgame? The financing supports PennantPark's investment vehicles, including the recently closed PennantPark Credit Secondary Fund. The Fund, through its subsidiaries, will retain 100% of the subordinated notes and 50% of the Class C notes.

"This transaction reinforces PennantPark's ability to access attractive, long-term financing to support our investment vehicles," said chief executive officer Arthur Penn.

The signal: Miami-based PennantPark, which manages about $11 billion in investable capital, is steadily building out its collateralised loan obligation platform. Each new securitization extends its reach in middle-market credit, where it has lent to private equity firms and their portfolio companies since 2007.

Read more: Business Insider

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