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PennantPark Floating Rate Capital Is Set to Raise About $70.4 Million in Public Offering of Shares

PennantPark Floating Rate Capital ( PFLT ) said on Tuesday it stands to receive proceeds of about $70.4 million from a sale of five million shares to use it to repay debt, invest in new or existing portfolio companies and to capitalize a subsidiary.

The net proceeds are exclusive of offering expenses and equal $14.08 per share. The offering is expected to close on Feb. 17. The company has granted the underwriters an option to purchase up to an additional 750,000 shares.

The company's investment adviser, PennantPark Investment Advisers, has agreed to pay the underwriters a supplemental payment of $0.46 per share, which reflects the difference between the actual public offering price of $13.62 and the net proceeds of $14.08 per share to be received by the company. The adviser has also agreed to bear the sales load payable to the underwriters.

The shares fell 2.7% to the lowest since November.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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