PennantPark Floating Rate Capital Ltd. (PFLT) generates its revenue primarily through net investment income earned from interest payments on debt investments held in its portfolio. As a business development company, it specializes in originating and financing floating-rate senior secured loans—predominantly first-lien debt—provided to U.S. middle-market companies. The spread between the interest income collected from its corporate borrowers and its own cost of capital drives its profitability and dividend distributions.