2024-07-18 07:13:02 ET
Summary
- PennantPark Floating Rate Capital operates as a business development company focusing on strategic debt investments in middle market companies.
- PFLT's consistent performance is supported by a diverse portfolio of 146 companies with EBITDA between $10M and $50M. The diverse and well-managed risk approach helps the BDC thrive.
- Anticipation of interest rate cuts may impact net investment income in the short term but could lead to faster growth opportunities for PFLT's portfolio in the long run.
- Cash & equivalents currently sit at the highest levels ever over the last decade. In addition, the credit facility has been increased. I believe that PFLT will take advantage of growth opportunities with this increased liquidity.
- PFLT currently offers a dividend yield of 10.4%. Distributions are issued on a monthly basis.
Overview
When I originally co vered PennantPark Floating Rate Capital ( PFLT ), back in April, a lot of my prior analysis was centered around the fact that I liked PFLT a lot more compared to its brother fund PennantPark Investment Corp ( PNNT ). I wanted to circle back and dedicate an article that is more focused on PFLT individually, as I believe this business development company may see increased valuations over the next months as I anticipate interest rate cuts to happen. PFLT operates as a business development company that focuses on making strategical debt investments within middle market companies. Their primary tool to achieve growth is through lending....
Read the full article on Seeking Alpha
For further details see:
PennantPark Floating Rate Capital: Abundance Of Cash That Will Fuel Growth Opportunities