* Sold 6.7 mln shares, vs 10 mln expected, for $15 each
* Begins trading on Nasdaq under symbol "PFLT"
* Morgan Stanley, SunTrust, UBS led underwriters
* Closed-end fund to invest in floating rate loans
* Shares fall 10.7 pct below IPO price to $13.40 (Adds closing share price)
NEW YORK, April 8 (Reuters) - PennantPark Floating Rate Capital Ltd (PFLT.O) shares fell in their debut on the Nasdaq on Friday after the company sold fewer shares than expected in the initial public offering.
The shares finished their first day of trading at $13.40, or 10.7 percent below the IPO.
The closed-end investment company sold 6.7 million shares for $15 each, raising about $100.5 million. It had planned to sell 10 million shares at that price.
PennantPark plans to invest in floating rate loans made to private companies whose debt is rated below investment grade. It might also invest in thinly-traded or small, public middle-market U.S. companies that show annual revenues between $50 million and $1 billion.
The fund is managed by PennentPark Investment Advisors, which also manages PennantPark Investment Corp (PNNT.O), a business development company. The new fund's investment strategy may overlap that of the Investment Corp, according to a filing with U.S. regulators.
The fund expected to devote at least 65 percent if its overall portfolio to senior secured loans and up to 35 percent in other types of investments, including second-lien, high yield, mezzanine and distressed debt securities and equity investments.
The underwriters were led by Morgan Stanley, SunTrust Robinson Humphrey and UBS Investment Bank. (Reporting by Clare Baldwin and Alina Selyukh; Editing by Andre Grenon)