PennantPark Floating Rate Capital : Investor Presentation – March 31, 2024

03/31/2024

M I A M I • N E W Y O R K • C H I C A G O • H O U S T O N • L O S A N G E L E S • A M S T E R D A M

Important Notice

This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of PennantPark Floating Rate Capital Ltd. ("PFLTˮ), including those listed in the "Risk Factorsˮ section of our filings with the Securities and Exchange Commission ("SECˮ). Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and PFLT assumes no obligation to update or revise any such forward-looking statements.

Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third party sources and has not been independently verified and, accordingly, PFLT makes no representation or warranty in respect of this information.

The following 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.

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Established Credit Platform

$7.2 billion total Investable Capital Under Management1

-	NYSE: "PFLT"	-	NYSE: "PNNT"
- IPO Date: April 2011	- IPO Date: April 2007
-	87% Secured Debt	-	63% Secured Debt
-	$1.5 billion, total investments	-	$1.2 billion, total investments2

Established Investment Platform

• PennantPark Investment Advisers founded 17 years ago before the Global
  Financial Crisis ("GFC")
• Independent middle market credit platform providing strategic capital to growing companies in the core middle market
• Cohesive, experienced team
• Culture of building long-term trust
• Funded $20.3 billion in 674 companies

First Lien Senior	First Lien Senior
Secured Debt	Secured Debt
58%
87%

Subordinated Debt

14%

Preferred and Common

Equity

23%

Second Lien Senior
Secured Debt and		Preferred and Common	Second Lien Senior
	Secured Debt
Subordinated Debt
	Equity 13%
	5%
<1%

1. As of March 31, 2024
2. This amount is inclusive of $59.7 million of U.S. government issued treasury bills held in the portfolio which is not reflected in the chart below

PFLT

• Primary focus: first lien senior secured debt
• Steady and stable dividend stream since inception in 2011
• Goal of capital preservation with a lower risk portfolio
• Approximately 100% of debt portfolio is first lien senior secured loans

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Investment Strategy Overview

Why PennantPark?

Core Middle		Senior secured loans made to U.S.
	companies with earnings of
Market Focus
	$10 to $50 million
Stable and		Target profitable companies with
	leading market positions, strong
Growing
	management teams, and steady cash
Borrowers
	flows

Stable and		12 senior investment professionals average
	26+ years of industry experience and 12+ years
Experienced		together at PennantPark
Leadership Team
Emphasis on		Conservative underwriting targeting loans

Core Middle Market Potential Advantage:

• Less competition as other lenders have moved up market
• More time to conduct thorough diligence
• Consistent yield premium over upper middle market and broadly-syndicated loans1
• Lower average leverage multiples
• Stronger covenant packages with tighter cushions
• Monthly financial reporting
• Improved control of downside outcomes with greater recovery rates

Capital		with low leverage multiples, substantial
Preservation		sponsor equity, and protective covenants
Upside		Selectively negotiate equity
	co-investments to benefit from role as a
Participation
	strategic lending partner
Extensive		Long-term relationships with hundreds of
	middle market private equity sponsors;
Sourcing		closed deals with over 230 sponsors
Network

Lower Leverage2,3

5.9x
	4.2x	4.2x
UMM /	Core Middle	PennantPark
BSL	Market

Higher Spreads2,3

		S + 6.30%
	S + 5.39%
S + 3.88%
UMM /	Core Middle	PennantPark
BSL	Market

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. Estimates regarding future investments are subject to change based upon market conditions and other factors.

1. Please refer to slide entitled "Core Middle Market Potential Advantage" for additional detail.
2. Source: LSEG. Data as of December 2023. Core Middle Market defined as issuers with revenues of $500M and below, and total loan package of less than or equal to $500M. Upper Middle Market ("UMM") and Broadly Syndicated Loans ("BSL") are defined as syndicated or direct/clubbed deals that have either revenues or total loan package of $500M or greater. Please refer to slide entitled "The Core Middle Market Offers a Yield Premium with Lower Risk" for additional detail.
3. Represents the arithmetic average of leverage multiples and spreads for PennantPark's newly direct originated loans in 2023.

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Providing Value-Added Capital to Middle Market Borrowers

We target profitable, growing, and cash-flowing companies with $10 - $50 million of EBITDA In many cases, PennantPark participates in a company's first round of institutional investment

Seek to act as a strategic partner to drive growth, and participate in upside through equity co-investments

Target Positive

Credit

Characteristics:

• Leading market positions and significant competitive advantages
• Established sponsors with track record of supporting portfolio companies
• Proven management team with appropriate incentives
• Low debt multiples and conservative loan-to- value ratios

Avoid Negative

Credit

Characteristics:

• Asset-intensiveoperations requiring capital expenditures
• Cyclical end markets or exposure to commodity price volatility
• Volatile or lumpy cash flows, or highly concentrated customer base
• 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			Software &			Consumer			Business
	Services			Technology					Services
•	Diverse government		•	Tailwinds from digital		•	Essential goods and services		•	Integral to customers'
	contract portfolio			transformation			with stable pricing			business processes
•	Mission critical services		•	Value-added functions with		• Strong brands with leading		•	Demonstrable value added
•	Alignment with government			high switching costs			market positions			for customers
	funding		• Recurring cash flows models		•	Differentiated value		•	Leading technologies with
•	Track record of winning new		•	Accretive acquisition			proposition			increasing adoption
	business and re-compete			opportunities		•	Avoidance of fad risk		•	Capitalize on increasing
	contracts									outsourcing trends

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

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Second Quarter 2024 Highlights

• NAV per share up 1.8%
• Monthly dividend remained consistent at $0.1025 per share

Highlights

• Net investment income (NII) of $0.31 per share

• Approximately 100% of the debt portfolio is first lien senior secured

Expansive Relationship

Strong

Credit Performance

of Portfolio

• 4.2x debt to EBITDA
• 2.1x interest coverage ratio
• Only 1 company out of 146 on non-accrual
• 0.4% of portfolio at cost, 0.3% at fair market value
• PIK income remained low at 1.7% of total investment income, one of the lowest among BDCs

Capital Base

	• Targeting $1 billion of assets from $870 million
Growing	•	One investment on non-accrual
PSSL1	• Enhances return on equity and NII at PFLT
	•	LTM return on invested capital of approximately 14%

Diversified Financing

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

1. PSSL refers to PennantPark Senior Secured Loan Fund LLC, a joint venture between PFLT and Kemper Corporation that invests in first lien middle market loans

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Why is PFLT Well Positioned?

Strong Capital Base

Attractive and Diversified

Financing

Experienced Team

Expansive Relationship

Network

• Permanent equity capital of $721 million
• Diversified funding sources
• Senior loan joint venture, PSSL, has $1 billion of investment capacity
• $436 million revolving credit facility due August 2026 at SOFR + 236 bps
• $185 million notes due April 2026 at 4.25%
• $226 million of securitized asset backed debt financing at a weighted average spread to SOFR of 2.11%, final maturity of October 2031
• $287 million of securitized asset backed debt financing at a weighed average spread to SOFR of 2.79%, final maturity of April 2036
• Decades of experience in middle market credit through multiple cycles
• Stable, consistent investment team
• Headquarters in Miami with offices in New York, Chicago, Houston, Los Angeles and Amsterdam
• Known as a provider of strategic capital to growing companies in the core middle market
• Focus on building long-term trust
• Brand recognition with 230+ private equity sponsors
• Independent capital provider with established institutionalized relationships

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Extensive Sourcing Network

Robust Origination Platform

Actively cover	Closed deals with	Existing lender to	Selective underwriting, only

770+	230+	180+	5.6%
middle market PE sponsors in the	PE sponsors; majority repeat	portfolio companies across 90+ PE
of deals closed from 2018 to 2023
U.S.	transactions1	sponsors

Origination Volume with Repeat PE Sponsors1

Since 2018, over 75% of PennantPark's deals have been with repeat PE sponsors

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

PennantPark maintains a diversified flow, the top repeat sponsor represents only 4% of investments since inception1

		88.4%					Top 5	Active Investments	1	Since
						Sponsors	Inception1
					86.5%
			82.5%	82.0%			No. 1	6%		4%
80.8%					No. 2	5%		3%
	76.5%						No. 3	5%		3%
						No. 4	4%		3%
							No. 5	3%		3%
2018	2019	2020	2021	2022	2023

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. Data as of 12/31/2023. PE stands for Private Equity.

1. Percentage of total origination volume. Origination volume refers to the dollar value of all financing commitments to middle market companies. Repeat sponsors are private equity firms that had previously completed a financing transaction with PennantPark. Based on invested capital for active investments and investments made since inception.

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Core Middle Market Potential Advantage

The U.S. middle market includes nearly 200,000 companies, generates $10 trillion of annual revenue (1/3 of the U.S. economy), and is the world's fifth largest economy on a standalone basis1

The core middle market presents attractive investment opportunities

• Lower leverage and higher yields
• Strong covenant packages
• Greater recovery rates

EBITDA

New Issue

Pricing

Leverage

Covenants

Equity Contribution

Due Diligence Process

Reporting

Lender Group Size

Equity Co- Investments

Core Middle Market

$10 to $50 million

First Lien: SOFR + 5.50% to 7.00%

Second Lien: SOFR + 8.00% to 10.00%

First Lien: 4.0x to 5.5x

Second Lien: 5.5x to 6.5x

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

45% or more

In-depth and comprehensive; typically 6 - 8 weeks

Usually monthly

1 to 4 lenders

Common

Upper Middle Market

$50 million and greater

First Lien: SOFR + 4.00% to 6.00%

Second Lien: SOFR + 6.50% to 8.00%

First Lien: 5.0x to 7.5x

Second Lien: 6.0x to 9.0x

Covenant lite or one covenant set at wide levels

35% or more

More limited information; typically 2 weeks or less

Usually quarterly

5 or more lenders

Less common

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. Statements herein concerning financial market trends or other financial market commentary are based on the current market conditions, which will fluctuate. In addition, such

statements constitute the Manager's current opinion, which is subject to change in the future without notice. Refer to the Important Notices at the end of this presentation for additional information.

1. National Center For the Middle Market, 4Q 2023 Middle Market Indicator Report.

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The Core Middle Market Offers a Yield Premium with Lower Risk

Core Middle Market vs. Upper Middle Market/BSL1

Credit Spread

Leverage

L+586

S+558

L+540

S+539

L+515

L+529

L+511

L+514

L+501

L+507

L+469

L+497

L+478

L+463

L+455

L+436

L+479

L+315

L+444

L+434

S+422

L+409

L+392

L+394

L+394

L+405

L+383

S+388

L+365

L+380

L+370

L+338

L+329

L+258

7.1x

6.9x

7.0x

7.1x

6.7x

6.6x

6.5x

6.4x

6.2x

6.2x

6.1x

6.2x

6.1x

5.9x

6.0x

6.0x

5.9x

5.7x

5.5x

5.5x

5.6x

5.4x

5.7x

5.3x

5.3x

5.1x

5.1x

4.8x

4.5x	4.3x	4.6x
4.2x
	3.8x

0.0x

N/A

2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
							Upper Middle Market/BSL		Core Middle Market

Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. Source: LSEG as of December 2023.

1. Core Middle Market is defined as Issuers with revenues of $500M and below, and total loan package of less or equal to $500M. Upper Middle Market and BSL are defined as syndicated or direct/clubbed deals that have either revenues or total loan package of $500M or greater. Broadly Syndicated Loans are denoted as "BSL". For 2020 LSEG does not hav e sufficient observations at this time to provide data for MM.

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