Pennantpark Floating Rate Capital Ltd. · NYSE:PFLT
Pennantpark Floating Rate Capital — Investor Presentation (March 2018)
14 slides from Pennantpark Floating Rate Capital's investor presentation, Mar 31, 2018
Slide 1: March 31, 2018
March 31, 2018 www.pennantpark.com 1
Slide 2: Forward-looking Statements and Risk Factors
Forward-looking Statements and Risk Factors This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies and results of our operations. However, by their nature, these forward-looking statements involve nume
Slide 3: Established Credit Platform
Established Credit Platform Established Investment Platform $2.3 billion total AUM ▶ PennantPark Investment Advisers founded over 11 years ago before the financial crisis ▶ Deep expertise in middle market direct lending NASDAQ: “PNNT” NASDAQ: “PFLT” ▶ Longer investment horizon with IPO Date: April 2
Slide 4: Established Credit Platform
Established Credit Platform Disciplined Investor - Value oriented with goal of capital preservation - Focused approach to ensure good risk/reward - Patient and prudently leveraged to capture returns during dislocations Relationship & Solution Driven Middle Market Focus - Team approach - Companies wi
Slide 5: Why is PFLT Well Positioned?
Why is PFLT Well Positioned? • Decades of experience in middle market sponsor-driven direct lending Experienced • Investment committee has worked together for over 20 years Team • Stable, consistent investment team • Headquarters in New York with offices in Los Angeles, Chicago, Houston and London •
Slide 6: Investment Process & Philosophy
Investment Process & Philosophy PennantPark Investment’s Decisions Result From a Consistent, Credible Process Industry Investment Sourcing Due Diligence Structuring Monitoring Expertise Committee ▶ Expansive sourcing network and flexible transaction structuring tailor investment approach and pace to
Slide 7: PFLT has a Compelling Track Record
PFLT has a Compelling Track Record ▶ Portfolio growth has been measured and consistent with market opportunity ▶ Prudent management has avoided growth simply to grow AUM ▶ Loss experience: about 10 bps annual net realized and unrealized gain since inception • Only 5 non-accruals out of 320 companies
Slide 8: PFLT has a Compelling Track Record
PFLT has a Compelling Track Record ▶ Consistent, steady dividend stream since inception Quarterly Dividends and Cumulative Dividends Paid Cents per share ($mil) 0.30 160 140 0.25 120 100 0.20 80 0.15 60 40 0.10 20 0.05 0 Cumulative Dividends Paid Qtr Div per share 8
Slide 9: Senior Secured Loan Fund
Senior Secured Loan Fund ▶ Invests in primarily middle market, directly originated first lien loans ▶ $630 million of total capacity ▶ Total commitments of $210 million in First Lien Notes and Equity from PFLT and Kemper Corporation ▶ Up to $420 million of third party debt financing ▶ Expands abilit
Slide 10: Overall Portfolio as of 3/31/2018
Overall Portfolio as of 3/31/2018 Highly Diversified Industry Mix Portfolio Overview CONSTRUCTION AND RETAIL MEDIA: ADVERTISING, ▶ Total Portfolio: $834 million BUILDING 2% PRINTING AND PUBLISHING 2% 3% HIGH TECH INDUSTRIES 14% MEDIA: DIVERSIFIED AND ▶ 86 Different Companies PRODUCTION 3% CHEMICALS,
Slide 11: PSSL Portfolio as of 3/31/2018
PSSL Portfolio as of 3/31/2018 Highly Diversified Industry Mix Portfolio Overview Retail Media: Advertising, 3% Printing and Publishing 5% High Tech Industries 12% ▶ Total Portfolio: $221 million Wholesale 6% ▶ 30 Different Companies Capital Equipment Aerospace 12% and Defense 7% ▶ Average Investmen
Slide 12: Selected Financial Highlights
Selected Financial Highlights June September December March ($ in millions, except per share data) Q3 2017 Q4 2017 Q1 2018 Q2 2018 Investment Portfolio $699 $710 $739 $834 PFLT Investment in PSSL $26 $43 $62 $77 PSSL Investment Portfolio $71 $100 $147 $221 Debt (Cost) $294 $254 $329 $329 Net Assets
Slide 13: Strategy Targeted to Deliver Returns
Strategy Targeted to Deliver Returns Proprietary Sourcing Network Less Risky Middle-Market Companies Free Cash Flow and De-Leveraging Captured by Interest Payments on Primarily Secured Floating Rate Debt Stable Dividends with Capital Preservation 13
Slide 14: Selected Investments
Selected Investments First Lien Term Loan First Lien Term Loan First Lien Term Loan First Lien Term Loan First Lien Term Loan Equity Equity Twin Point Capital J.F. Lehman & Company J.F. Lehman & Company Sagewind Capital Insignia Capital First Lien Term Loan Revolver $1.0 million Revolver First Lien
PennantPark Floating Rate Capital — Investor Presentation (March 2018) on 6ix