PennantPark Investment Corporation to Reduce Interest Expense with Extension of Credit Facility and Redemption of 6.25% Senio...
May 25 2017 - 4:15PM
PennantPark Investment Corporation (NASDAQ:PNNT) (“PNNT” or the
“Company”), a leading provider of capital to middle market
companies, today announced that it has amended its multi-currency,
senior secured revolving credit facility (the “Credit Facility”)
to, among other things, (i) extend the term of the revolving
period to May 25, 2021 and the final maturity date to May 25, 2022,
(ii) adjust the size of the Credit Facility to $445 million and
(iii) increase the size of the accordion provision to permit
increases to the Credit Facility up to $750,000,000 if certain
conditions are satisfied. The LIBOR pricing of the Credit Facility
remains the same at LIBOR plus 225 basis points; however, the
applicable margin may be reduced by 25 basis points if certain
conditions are satisfied. SunTrust Robinson Humphrey, Inc. and
JPMorgan Chase Bank, N.A. acted as joint lead arrangers and joint
book runners and JPMorgan Chase Bank, N.A. acted as syndication
agent of the Credit Facility. SunTrust Bank acted as administrative
agent for each of the lenders.
“We are pleased with the extension of our Credit
Facility while maintaining our cost, and are delighted to have
received continuing support from virtually all of our existing
lenders. Our Credit Facility amendment affords us the flexibility
to redeem our 6.25% Notes, thereby creating considerable savings in
interest expense while maintaining a comfortable level of
liquidity,” commented Arthur H. Penn, the Company’s Chairman and
Chief Executive Officer.
The Company also announced today that it will
redeem its 6.25% Senior Notes due February 1, 2025 (NYSE:PNTA) with
an aggregate principal amount outstanding of $71,250,000 (the
“Notes”). The Company will redeem 100%, or $71,250,000, of the
issued and outstanding Notes on June 29, 2017 (the “Redemption
Date”), following which they will be delisted from the New York
Stock Exchange. The redemption price will be par $25 for each Note
plus accrued and unpaid interest through, but excluding, the
Redemption Date. The redemption of the Notes is expected to result
in interest savings through the original maturity date of the
Notes.
The Notes should be presented and surrendered by
mail or by hand at the office of the paying agent, American Stock
Transfer & Trust Company, LLC, 6201 15th Avenue, Brooklyn, NY
11219, Corporate Trust Office, Attention: General Counsel.
Questions related to the notice of redemption and related materials
should be directed to American Stock Transfer & Trust Company,
LLC via telephone at (800) 937-5449.
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business
development company which primarily invests in U.S. middle-market
companies in the form of senior secured debt, mezzanine debt and,
to a lesser extent, equity investments. PennantPark Investment
Corporation is managed by PennantPark Investment Advisers, LLC.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. You should understand that under Section
27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section
21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or
the Exchange Act, the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995 do not apply to
forward-looking statements made in periodic reports we file under
the Exchange Act. All statements other than statements of
historical facts included in this press release are forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described from time
to time in filings with the SEC. The Company undertakes no duty to
update any forward-looking statement made herein. You should not
place undue influence on such forward-looking statements as such
statements speak only as of the date on which they are made.
We may use words such as “expects,” “maintain,”
and similar expressions to identify forward-looking statements.
Such statements are based on currently available operating,
financial and competitive information and are subject to various
risks and uncertainties that could cause actual results to differ
materially from our historical experience and our present
expectations.
CONTACT:
Aviv Efrat
PennantPark Investment Corporation
Reception: (212) 905-1000
www.pennantpark.com
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