Frequently Asked Questions

Q: Are dividends taxable to stockholders?
A: Dividends are generally taxable to U.S. stockholders as ordinary income or capital gains. We will send to each of our U.S. registered stockholders, as promptly as possible after the end of each calendar year, a Form 1099-DIV, which details the amounts includible in such U.S. stockholder's taxable income for such year as ordinary income and as long-term capital gains.

 
Q: Can I purchase shares directly from PennantPark Floating Rate Capital Ltd.?
A: No. Investors must go through a broker or to our transfer agent American Stock Transfer (also our dividend reinvestment plan administrator) to purchase shares. Please visit American Stock Transfer's website at www.amstock.com or call 1-800-937-5449 for more information.

 
Q: Does PennantPark Floating Rate Capital Ltd. have a Dividend Reinvestment Plan (DRIP)?
A: Yes. We maintain an "opt out" dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend or other distribution, then stockholders' cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically "opt out" of the dividend reinvestment plan so as to receive cash distributions.

 
Q: Does PennantPark Floating Rate Capital Ltd. pay dividends?
A: Yes. PennantPark Floating Rate Capital Ltd. intends to distribute quarterly dividends to stockholders of record. Information about our historical dividends can be found by visiting the Dividends page on our website.

 
Q: How can I obtain additional information from PennantPark Floating Rate Capital Ltd
A: Additional information can be requested by visiting the Contact Us page on our website.

 
Q: How can I opt out of the Dividend Reinvestment Plan?
A: A registered stockholder may elect to receive an entire dividend in cash by notifying American Stock Transfer and Trust Company, the plan administrator and our transfer agent and registrar, in writing so that such notice is received by the plan administrator no later than the record date for dividends to stockholders. Registered stockholders can notify the plan administrator via its website at www.amstock.com, by filling out the transaction request form located at the bottom of their statement and sending it to the plan administrator at P.O. Box 922, Wall Street Station, NY, NY 10269-0560 or by calling the plan administrator’s Interactive Voice Response System at 1-877-322-4951.

 
Q: How can I receive e-mail alerts from PennantPark Floating Rate Capital Ltd.?
A: For more information on how to sign up for e-mail alerts regarding events, documents and press releases please visit the E-mail Notification page on our website.

 
Q: How do I know if I am a registered stockholder?
A: A registered stockholder is one that is shown on the records of the Company. If you purchased shares through a broker, the shares might not be registered in your name but instead may be registered in the name of the broker (held in "street name "). Individual stockholders whose shares are held in street name should contact their broker for more information on any dividend reinvestment plan changes.

 
Q: What is PennantPark Floating Rate Capital Ltd.’s cusip number?
A: PennantPark Floating Rate Capital Ltd. cusip number is 70806A106.

 
Q: What is PennantPark Floating Rate Capital Ltd.'s investment objectives?
A: Our investment objective is to seek high current income. We will seek to achieve our investment objective by investing primarily in Floating Rate Loans made to private middle-market companies whose debt is rated below investment grade. We may also invest in thinly traded or small market-cap public middle-market U.S. companies. Floating Rate Loans are typically rated below investment grade. Securities rated below investment grade are often referred to as “leveraged loans” or “high yield” securities or “junk bonds” and are often higher risk compared to debt instruments that are rated above investment grade and have speculative characteristics. However, when compared to junk bonds and other forms of non-investment grade debt, Floating Rate Loans typically have more robust capital-preserving qualities such as less credit risk and have historically had lower default rates than junk bonds. Floating Rate Loans are typically the most senior source of capital in a borrower’s capital structure and often have certain of the borrower’s assets pledged as collateral. Floating Rate Loans feature rates that reset regularly, maintaining a fixed spread over the London InterBank Offered Rate (“LIBOR”) or the prime rates of large money-center banks. Floating Rate Loans typically have terms of three to ten years. Floating Rate Loans are typically made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions. Under normal market conditions, we expect that at least 80% of the value of our Managed Assets, which means our net assets plus any borrowings for investment purposes, will be invested in Floating Rate Loans. We expect that senior secured loans will represent approximately 65% of our overall portfolio. We expect to invest up to 35% of our overall portfolio opportunistically in other types of investments, including second-lien, high yield, mezzanine and distressed debt securities and private equity investments.

We expect to invest in Floating Rate Loans made primarily to leveraged private middle-market companies. We may also invest in thinly traded or small market-cap public middle-market U.S. companies. Our investments will initially generally range between $2 million and $20 million on average, although we expect that this investment size will vary proportionately with the size of our capital base. In addition, we may invest a portion of our portfolio in other types of investments, which we refer to as opportunistic investments, which are not our primary focus but are intended to enhance our overall returns. These investments may include, but are not limited to, direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States.

 
Q: Where can I find information about PennantPark Floating Rate Capital Ltd.'s net asset value(NAV)?
A: Information about our NAV information can be found in our public filings with the Securities and Exchange Commission through their website www.sec.gov or by visiting the SEC Filings page on our website.

 
Q: Where is PennantPark Floating Rate Capital Ltd.'s common stock listed?
A: Our common stock is listed and traded on the NASDAQ under ticker symbol PFLT. Information about our stock price and other related data can be found by visiting the Stock Information page on our website.

 
Q: Who is PennantPark Investment Administration, LLC?
A: PennantPark Investment Administration, LLC provides us with administrative services. For providing these services, facilities and personnel, we reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of the compensation and related expenses for its chief compliance officer, chief financial officer and their respective staffs. The Administrator also provides on our behalf managerial assistance to portfolio companies to which we are required to provide such assistance.

 
Q: Who is PennantPark Investment Advisers, LLC?
A: We have entered into an Investment Management Agreement with the PennantPark Investment Advisers, LLC under which the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of and provides investment advisory services to, PennantPark Floating Rate Capital Ltd.. For providing these services, the Investment Adviser receives a fee from us, consisting of two components—a base management fee and an incentive fee.

 
Q: Who is PennantPark Floating Rate Capital Ltd.?
A: Incorporated in October 2010, PennantPark Floating Rate Capital Ltd. is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. In addition, for tax purposes we have elected to be treated as a regulated investment company, or RIC.