PennantPark Investment Corporation Announces Completion of Amended Credit Facility
September 09 2019 - 4:06PM
PennantPark Investment Corporation (“we,” “our,” “us” or
"PennantPark") (NASDAQ: PNNT) announced today that it has completed
all the necessary amendments to its multi-currency, senior secured
revolving credit facility with certain lenders and SunTrust Bank
acting as administrative agent (the “Credit Facility”). The
facility extends the term of the revolving period from May 25, 2021
to September 4, 2023 and the final maturity date from May 25, 2022
to September 4, 2024, for $420 million out of the total $475
million commitments. The facility also amends the covenants in the
Credit Facility, in combination with PennantPark’s other existing
debt sources, enabling us to utilize the flexibility and
incremental leverage provided by the Small Business Credit
Availability Act (“SBCAA”) in the future.
The Credit Facility for the $420 million of
commitments – which includes the increased commitment size of $30
million – has a five year term with a four year reinvestment period
during which pricing remains at LIBOR plus 2.25%. The key terms are
such that, in combination with PennantPark’s existing debt sources,
we will be able to operate within the asset coverage covenant that
the SBCAA reduced from 200% to 150%.
“We are pleased with the extension of our Credit
Facility, and believe that maintaining our cost and amending
covenants will give PennantPark the flexibility to obtain the
benefits provided by the SBCAA. We also believe this will result in
enhanced profitability while maintaining our conservative and
prudent debt profile,” said Art Penn, Chairman and Chief Executive
Officer, “Additionally, we are appreciative of the support from our
existing lending partners and pleased to have added two new lending
partners to the facility. Their support highlights the confidence
they have in our excellent long term track record.”
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.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a
leading middle market credit platform, which has approximately $3.2
billion of assets under management. Since its inception in 2007,
PennantPark Investment Advisers, LLC has provided investors access
to middle market credit by offering private equity firms and their
portfolio companies as well as other middle-market borrowers a
comprehensive range of creative and flexible financing solutions.
PennantPark Investment Advisers, LLC is headquartered in New York
and has offices in Chicago, Houston and Los Angeles.
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
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 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.
PennantPark Investment Corporation may use words
such as “anticipates,” “believes,” “expects,” “intends,” “seeks,”
“plans,” “estimates” 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 its historical experience and
present expectations.
CONTACT:Aviv EfratPennantPark Investment
Corporation(212) 905-1000www.pennantpark.com
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