PennantPark Investment Corporation Enters Into Additional $250 Million Five Year Credit Facility
February 26 2019 - 4:06PM
PennantPark Investment Corporation (the "Company") (NASDAQ: PNNT)
announced that it has established an additional $250 million
secured revolving credit facility (the "Credit Facility") through
PennantPark Investment Funding I, LLC ("Funding I"), as borrower
and a wholly owned subsidiary of the Company, with BNP Paribas,
acting as administrative agent, and The Bank of New York Mellon
Trust Company, National Association as collateral agent. This
Credit Facility along with our other existing debt sources will
enable us to use the flexibility and incremental leverage provided
by the Small Business Credit Availability Act (“SBCAA”) in the
future.
The Credit Facility has a five year term with a
three year reinvestment period during which pricing is at LIBOR
plus 2.6%. The key terms are such that we will be able to operate
within the asset coverage covenant that the SBCAA reduced from 200%
to 150%.
“We are pleased to have expanded our borrowing relationships
through closing on an additional credit facility that will enable
us to have the flexibility to obtain the benefits provided by the
SBCAA. We believe this will result in enhanced profitability while
maintaining our conservative and prudent debt profile,” said Art
Penn, Chairman and Chief Executive Officer. He added: “This
long-term Credit Facility along with our other sources of debt
financing nicely complements our permanent equity capital
base.”
The Credit Facility is secured by all of the assets held by
Funding I and includes customary covenants, including minimum asset
coverage and minimum equity requirements.
The description above is only a summary of the material
provisions of the Credit Facility and is qualified in its entirety
by reference to the Credit Facility.
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development
company which principally invests in U.S. middle-market private
companies in the form of first lien secured debt, second lien
secured debt, subordinated debt and 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 and Section 21E(b)(2)(B) of 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 PennantPark Investment Corporation files 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 Securities and Exchange Commission.
PennantPark Investment Corporation 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.
CONTACT:Aviv EfratPennantPark Investment Corporation(212)
905-1000www.pennantpark.com
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