PennantPark Floating Rate Capital : Investor Presentation – March 31, 2026

Published: 2026-05-08 13:41:10 ET PFLT

Published on 05/08/2026 at 01:41 pm EDT

‌Independent Private Credit Platform | Investing Since 2007‌

PennantPark Floating Rate Capital Ltd.

Investor Presentation - March 31, 2026

‌PennantPark at a Glance

A Pioneer in Private Credit

Founded in 2007 with a long-term track record through multiple cycles

Core Middle Market Focus

We target mid-sized companies we believe are overlooked by other lenders

Firmwide AUM of $10 Billion

Serving sophisticated investors with multiple investment offerings

$27 Billion Invested Over 19 Years

Over 800 credit and equity investments across the capital structure

Target Cash-Flowing

Companies

We target profitable companies with leading market positions

Emphasis on Capital

Preservation

Conservative investment approach with deep credit and structural underwriting

Experienced & Stable Leadership Team

Experienced leadership team that has worked together for decades

111 Professionals

Across 7 Offices

Physical presence in key markets to better serve investors and sponsors

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk.

1) Assets under management ("AUM") is defined as the sum of gross asset values, unfunded commitments, joint ventures and available leverage drawn and undrawn for active funds as of 12/31/2025. Invested capital represents the cumulative sum of capital invested across the PennantPark platform since inception through 12/31/2025. Figures are rounded to the nearest billion. Personnel as of April 2026 and includes both

‌PennantPark Provides Value-Added Capital to Middle Market Borrowers

Target Positive Credit Characteristics:

Avoid Negative Credit Characteristics:

Leading market positions and significant competitive advantages

Asset-intensive operations requiring capital expenditures

Established sponsors that support

their portfolio companies

Growth platforms that require high

levels of investment

Proven management team with appropriate incentives

Cyclical end markets or exposure to commodity price volatility

Variable cost structures designed to meet changing market demands

Volatile or lumpy cash flows, or highly concentrated customer base

Low debt multiples and

conservative loan-to-value ratios

Undifferentiated product or

services with low profit margins

‌Five Key Industries of Expertise

Healthcare

High quality providers and low-cost outcomes

Favorable reimbursement environment

Solid infrastructure and IT systems

Sustained organic growth and accretive M&A

Government Services

Diverse government contract portfolio

Mission critical services

Alignment with government funding

Track record of winning new business and re-compete contracts

Technology

Essential technologies serving institutional customer bases

Highly regulated end markets

Industry-specific vertical solutions

Conservative capital structures with durable cash flows

Consumer

Essential goods and services with stable pricing

Strong brands with leading market positions

Differentiated value proposition

Avoidance of fad risk

Business Services

Integral to customers' business processes

Demonstrable value added for customers

Leading technologies with increasing adoption

Aim to capitalize on increasing outsourcing trends

‌Extensive Sourcing Network

Robust Origination Platform

Selective underwriting; only

6.3%

of deals closed from 2020 to 2025

Existing lender to

180+

portfolio companies across 110+ PE sponsors

Closed deals with

250+

PE sponsors; majority repeat transactions1

Actively cover

700+

middle market PE sponsors in the U.S.

Origination Volume with Repeat PE Sponsors1

- PE sponsors typically give PennantPark early and last looks because of our reliability, experience, market leadership, and flexible capital solutions

70%

77%

87%

82%

83%

88%

94%

Top 5 Sponsors

Since Inception1

No. 1

No. 2

No. 3

No. 4

No. 5

2019 2020 2021 2022 2023 2024 2025

‌Core Middle Market Potential Advantage

the U.S. economy), and is the world's fifth largest economy on a standalone basis1

Lower leverage and higher yields

Strong covenant packages

Greater recovery rates

Core Middle Market

Upper Middle Market

EBITDA

$10 to $50 million

$50 million and greater

New Issue Pricing

First Lien: SOFR + 4.75% to 5.50% Second Lien: SOFR + 7.50% to 10.00%

First Lien: SOFR + 3.00% to 4.25% Second Lien: SOFR + 6.00% to 7.50%

Paid-In-Kind (PIK)

Less common

Common

Leverage

First Lien: 4.0x to 5.5x

Second Lien: 5.5x to 6.5x

First Lien: 5.0x to 7.5x

Second Lien: 6.0x to 9.0x

Covenants

Usually stronger; total net leverage, interest coverage, etc.

Covenant lite or one covenant set at wide levels

Equity Contribution

45% or more

35% or more

Due Diligence Process

In-depth and comprehensive; typically 6 - 8 weeks

More limited information; typically 2 weeks or less

Reporting

Usually monthly

Usually quarterly

Lender Group Size

1 to 4 lenders

5 or more lenders

Equity Co-Investments

Common

Less common

‌The Core Middle Market Offers a Yield Premium with Lower Risk

Core Middle Market vs. Upper Middle Market/BSL1

L+501

L+515

L+529

L+540

L+497

L+507

L+511

L+514

L+521

L+539

L+469

L+463

L+455

L+478

L+477

L+436

L+446

L+479

L+444

L+434

L+405

L+409

L+422

L+392

L+365

L+383

L+394

L+380

L+394

L+370

L+388

L+338

L+329

L+336

6.9x

7.0x

7.1x

L+303

6.6x

6.7x

6.2x

6.0x

6.1x

6.4x

6.5x

6.2x

6.1x

6.2x

6.1x

5.5x

5.7x

6.0x

5.9x

5.6x

5.9x

5.4x

5.7x

5.9x

5.3x 5.3x

4.8x

5.1x

4.5x

4.3x

4.6x

4.2x

4.5x

4.3x

3.8x

N/A

Credit Spread

L+586

Leverage

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. The use of hypothetical performance in making investment decisions involves certain risks and limitations; please refer to the Important Notices at the end of this presentation. Source: LSEG. As of 12/31/2025.

‌PennantPark's Publicly-Traded Business Development Companies

IPO Date:

April 2011

April 2007

Ticker:

PFLT (NYSE)

PNNT (NYSE)

Market Value of Investments1:

$2.6 billion

$1.2 billion

Investment

Strategy:

Primarily first lien,

senior secured loans

Opportunistic credit investing

across the capital structure

Security Selection2:

Sub. Debt

1% Equity Co-

First Lien Investments

Debt 9%

12% JV Debt

75% 3% JV Equity

Second Lien Debt

First Lien 2% Sub. Debt Debt 7%

48%

24%

Equity Co-Investments

5% 14%

JV Equity JV Debt

Differentiated Strategy

Focus on the core middle market

Loans feature lower leverage and higher yields

We believe competitors sacrifice pricing and protections to seek larger deals

Among the lowest PIK income in the industry

Durable Balance Sheet

$768M revolving credit facility due Aug. 2030 (SOFR + 2.00%)

$185M long-term notes due Apr. 2026 (4.25% fixed rate)

$200M long-term notes due

Mar. 2029 (6.75% fixed rate)

$287M long-term notes due Apr. 2036 (SOFR + 1.67%)1

$287M long-term notes due Jul. 2036 (SOFR + 2.07%)1

$390M long-term notes due Apr. 2037 (SOFR + 1.74%)1

Stable Capital Base

BDC is designed to enable longterm investment horizon

Investor-friendly structure

Publicly-traded stock on New

York Stock Exchange

$1 billion of permanent equity capital

Accretive Joint Ventures

Joint ventures with up to $1.9 billion of investment capacity

Enhances return on equity and

net investment income

‌PFLT is Well Positioned in the Core Middle Market

Experienced Investment Team

19-year track record spanning economic and market cycles

Stable leadership team together

for decades

‌Attractive Portfolio of Middle Market Investments

162

$2.6B

5.37%

$32M

direct investments

market value of portfolio

wtd. avg. credit spread

median LTM EBITDA

97.8%

44%

4.6x

2.0x

% paid in cash

median LTV ratio1

median leverage1

median interest coverage1

Portfolio Composition by Security Type:

12%

75%

10%

11%

8% 2%

82%

80%

78%

JV Debt

JV Equity Equity Sub. Debt

First Lien

Portfolio Concentration2:

Remaining Portfolio 75%

Avg. Size as % of Total Portfolio

Top 5 Direct Investments 15%

Top 10 Direct Investments 25%

Jun-25 Sep-25 Dec-25 Mar-26

‌PFLT Quarterly Performance Commentary: March 31, 2026

Robust NII

Attractive New Investments

Scaled Joint Venture

New Joint

Venture

Strong Credit Performance

Government Services Tailwinds

$25.7 million of Core Net Investment Income ("NII") during the quarter

$0.27 of core NII per share during the quarter1

Supported by the growth of two joint ventures

Invested $295 million across 6 new and 53 existing portfolio companies during the quarter

Continued focus on the core middle market where credit spreads and terms are more attractive2

Weighted average yield of 9.3% on investments made during the quarter

PennantPark Senior Secured Loan Fund I ("PSSL I") portfolio has grown to

$1.2 billion of assets including 120 debt investments

Weighted average yield of 9.2% on investments made during the quarter

LTM NII yield on invested capital of 12.4%

PennantPark Senior Secured Loan Fund II ("PSSL II") began investing capital

during the quarter, with current total assets of approximately $357 million

Additional credit facility commitment brings total amount to $250 million

Objective is to scale PSSL II to over $1 billion in assets

Flat NAV quarter-over-quarter despite challenging environment

44% median loan-to-value ratio

4.6x median net leverage multiple

2.0x median interest coverage ratio

Only 3 loans on non-accrual (0.8% at cost and 0.5% at market value)

PIK income only 2.2% of total interest income

Software sector exposure of only 4.3%

20% of portfolio allocated to Government Services investments

Long-term government contracts with tailwinds related to global geopolitical tensions

Aechelon Technology (PFLT investment) to be acquired by Shield AI, with anticipated total equity proceeds of $47 million

"PennantPark's portfolio enters this period from a position of strength characterized by conservative loan leverage, low PIK income, low software exposure, and strong financial performance across our borrowers. In a private credit market where we believe chaos is creating opportunity, this positioning allows us to take advantage of the volatility and headwinds facing many of our peers, and to continue growing our portfolio and joint ventures with high-quality loans at attractive spreads and conservative terms."

- Art Penn, Chairman & CEO

‌PFLT Selected Financial Highlights

($mm, except per share data)

June 2025

September 2025

December 2025

March 2026

Assets

Direct Investments (fair value)

$2,113

$2,491

$2,239

$2,189

Joint Venture Investment (fair value)

$291

$282

$367

$391

Cash and Other Assets

$118

$141

$110

$168

Total Assets

$2,522

$2,914

$2,716

$2,748

Net Asset Value and Liabilities

$1,709

Liabilities

$1,434

$1,839

$1,676

Net Asset Value

$1,088

$1,075

$1,040

$1,039

Total Net Assets and Liabilities

$2,522

$2,914

$2,716

$2,748

Debt-to-Equity Ratio

1.28x

1.66x

1.57x

1.61x

Investment Activity1

$295

PFLT Investment Purchases

$208

$633

$301

PFLT Investment Sales and Repayments

($146)

($256)

($441)

($328)

PFLT Net Investment Activity

$62

$377

($140)

($33)

PSSL JV Market Value of Investments

$1,056

$1,085

$1,195

$1,209

PSSL II JV Market Value of Investments

$193

$340

Combined JV Market Value of Investments

$1,388

$1,549

Per Share Data:

Net Asset Value

$10.96

$10.83

$10.49

$10.47

Core Net Investment Income2

$0.27

$0.28

$0.27

Non-Recurring Income and Expenses

($0.02)

($0.01)

Total Net Investment Income (NII)

$0.25

$0.28

$0.27

$0.26

Annualized Return on Equity3

9.85%

10.34%

10.30%

10.32%

‌PFLT Recent Dividend History

Quarter Ended

NAV

Per Share

Core NII Per Share1

Base Dividend2

Supplemental Dividend2

Total Declared Dividend2

Annualized Return on Equity3

Annualized Dividend Yield

on NAV

6/30/2024

$11.34

$0.31

10.9%

10.8%

9/30/2024

$11.31

$0.32

$0.31

11.3%

10.9%

12/31/2024

$11.34

$0.33

$0.31

11.6%

10.8%

3/31/2025

$11.07

$0.28

$0.31

10.1%

11.1%

6/30/2025

$10.96

$0.27

$0.31

9.9%

11.2%

9/30/2025

$10.83

$0.28

$0.31

10.3%

11.4%

12/31/2025

$10.49

$0.27

$0.31

10.3%

11.7%

3/31/2026

$10.47

$0.27

$0.31

10.3%

11.8%

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. Dividend history provided for informational purposes only. Please refer to official regulatory filings for details.

Core net investment income ("Core NII") is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

Rounded to the nearest cent.

Calculated using quarterly Core NII per share multiplied by four and divided by ending period NAV per share.

‌Key Takeaways

Note: As of 3/31/2026. Past performance is not necessarily indicative of future results. Invested capital is at risk. Financial highlights provided for informational purposes only. Please refer to official regulatory filings for details.

‌Important Notices

The preceding slides contain summaries of certain financial and statistical information about PFLT. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of PFLT, or information about the market, as indicative of PFLT's future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of PFLT.

The information contained in this Presentation does not constitute and is not intended to constitute an offer of securities and accordingly should not be construed as such. Any products or services referenced in this Presentation may not be licensed in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the products and services referenced herein. This Presentation and the information contained herein has been made available in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This Presentation is directed at and intended for institutional investors.

Furthermore, this Presentation is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this Presentation, current and prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This Presentation has been made available only for each qualified recipient's use, and should not be given, forwarded or shown to any other person (other than the recipient's employees, agents, or consultants).

No person has been authorized in connection with this offering to give any information or to make any representations other than as contained in this Presentation and, if given or made, such information or representation must not be relied upon as having been authorized by PennantPark Investment Advisers, LLC ("PennantPark") or PennantPark's affiliates. Statements in this Presentation are made as of the date hereof unless stated otherwise herein, and neither the delivery of this Presentation at any time, nor any sale hereunder, shall under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date.

This presentation is qualified in its entirety by reference to the Offering Memorandum. In the event of any inconsistency between this presentation and the Offering Memorandum, the Offering Memorandum will control.

An investment in the interests of any PennantPark fund is suitable only for sophisticated investors and requires the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of an investment in such funds. Investors must be prepared to bear such risks for an extended period of time. There can be no assurance that any investments will be profitable, not lose money, or achieve the other intended purposes for which they are made. In particular, the risks of investing in such funds may include: 1) Lack of liquidity in that withdrawals are generally not permitted, and there is no secondary market for Interests and none is expected to develop; 2) Restrictions on transferring Interests; 3) The use of leverage; and 4) Less regulation and higher fees than mutual funds. This is not intended to be a complete description of the risks of investing in such funds. Investors should rely on their own examination of the potential risks and rewards. The Offering Memorandum will discuss these and other important risk factors and considerations that should be carefully evaluated before making an investment. Prospective investors should consult with their own legal, tax, and financial advisers as to the consequences of an investment.

In considering the prior performance information contained herein, recipients should bear in mind that past performance is not a guarantee, projection or prediction and it is not necessarily indicative of future results. Invested capital is at risk. There can be no assurance that any product or service referenced herein will achieve comparable results, or that they will be able to implement their investment strategies or achieve their investment objectives.

Certain statements contained in this Presentation, including without limitation, statements containing the words "believes," "anticipates," "intends," "expects," and words of similar import constitute "forward looking statements." Additionally, any forecasts and estimates provided herein are forward looking statements. Such statements and other forward looking statements are based on available information and the views of PennantPark as of the date hereof. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results and events may differ materially from those in any forward looking statements. Further, any opinions expressed are the current opinions of PennantPark only and may be subject to change, without notice. There is no undertaking to update any of the information in this document.

Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third party sources. PennantPark believes that such information is accurate and that the sources from which it has been obtained are reliable. PennantPark cannot guarantee the accuracy of such information, however, and has not independently verified the assumptions on which such information is based.

This presentation contains targets regarding future performance (the "Targets"). There can be no assurance that the Targets will be achieved. In considering the Targets, prospective investors should bear in mind that such targeted performance is not a guarantee, projection, or prediction and is not indicative of future results. The Manager believes that the Targets are reasonable based on a combination of factors, including the investment team's general experience, the availability of leverage and financing at expected costs, other terms, and assessment of prevailing market conditions and investment opportunities. However, there are numerous assumptions that factor into the Targets that may not be consistent with future market conditions and that may significantly affect actual investment results. Actual results and events may differ significantly from the assumptions and estimates on which Targets are based. Further information regarding the Targets and projections is available upon request.

The use of hypothetical performance in making investment decisions involves certain risks and limitations. Hypothetical results are not based on an actual portfolio available to investors. Hypothetical results may not reflect how the investment manager might have reacted when managing client investments to economic or market events. Hypothetical results may be sensitive to the selection criteria used to construct an extracted portfolio. Hypothetical results may include positions, position sizes, and sector weights that differ materially from actual client portfolios and do not reflect how the investment manager may have constructed an actual portfolio.

References to "$," "USD" or "dollars" throughout this Presentation are to United States dollars unless the context indicates otherwise.

Disclaimer

PennantPark Floating Rate Capital Ltd. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 17:40 UTC.