PennantPark Investment Corporation (NASDAQ: PNNT) announced today
financial results for the second fiscal quarter ended March 31,
2020, an adjustment to its quarterly distribution and an incentive
fee waiver.
|
HIGHLIGHTS |
Quarter ended
March 31, 2020 |
($ in millions,
except per share amounts) |
Assets and Liabilities: |
|
|
|
Investment portfolio |
$ |
1,354.0 |
|
Net assets |
$ |
516.7 |
|
GAAP Net asset value per share |
$ |
7.71 |
|
Adjusted net asset value per share (1) |
$ |
6.97 |
|
|
|
|
|
BNP Credit Facility |
$ |
228.6 |
|
Truist Credit Facility |
$ |
404.4 |
|
2024 Notes |
$ |
83.5 |
|
SBA Debentures |
$ |
130.3 |
|
GAAP Net Debt to Equity (2) |
|
1.59x |
|
Regulatory Debt to Equity |
|
1.65x |
|
Regulatory Net Debt to Equity (3) |
|
1.59x |
|
|
|
|
|
Yield on debt investments at quarter-end |
|
9.1% |
|
Operating Results: |
|
|
|
Net investment income |
$ |
10.3 |
|
Net investment income per share |
$ |
0.15 |
|
Distributions declared per share |
$ |
0.18 |
|
|
|
|
|
Portfolio Activity: |
|
|
|
Purchases of investments |
$ |
106.8 |
|
Sales and repayments of investments |
$ |
16.4 |
|
|
|
|
|
Number of new portfolio companies invested |
|
8 |
|
Number of existing portfolio companies invested |
|
24 |
|
Number of ending portfolio companies |
|
87 |
|
(1) |
|
This is a non-GAAP financial measure. The Company believes that
this number provides useful information to investors and management
because it reflects the Company’s financial performance excluding
the impact of the $49.4 million unrealized loss on the Credit
Facilities. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for
financial results prepared in accordance with GAAP. |
(2) |
|
This is a non-GAAP financial measure. The Company believes that
this number provides useful information to investors and management
because it reflects the Company’s financial performance net of
$25.1 million of cash and equivalents. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for financial results prepared in accordance
with GAAP. |
(3) |
|
This is a non-GAAP financial measure. The Company believes that
this number provides useful information to investors and management
because it reflects the Company’s financial performance excluding
the impact of the $49.4 million unrealized loss on the Credit
Facilities and net of $25.1 million of cash and equivalents. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for financial results
prepared in accordance with GAAP. |
|
|
|
CONFERENCE CALL AT 12:00 P.M. ET ON MAY
12, 2020
PennantPark Investment Corporation (“we,” “our,”
“us” or the “Company”) will host a conference call at 12:00 p.m.
(Eastern Time) on Tuesday, May 12, 2020 to discuss its financial
results. All interested parties are welcome to participate. You can
access the conference call by dialing toll-free (888) 394-8218
approximately 5-10 minutes prior to the call. International callers
should dial (646) 828-8193. All callers should reference conference
ID #9070267 PennantPark Investment Corporation. An archived replay
of the call will be available through May 26, 2020 by calling
toll-free (888) 203-1112. International callers please dial (719)
457-0820. For all phone replays, please reference conference ID
#9070267.
DISTRIBUTION ADJUSTMENT AND INCENTIVE FEE
WAIVER
“We are pleased that PennantPark continues to
operate smoothly and effectively and remains committed to working
diligently on behalf of our investors,” said Art Penn, Chairman and
CEO. “Given the uncertain economic environment due to the pandemic,
we have concluded, in consultation with our board, that it is
prudent to adjust our dividend to 12 cents per share starting with
the June 2020 quarter. In addition, we have concluded, in
consultation with our board, to extend a full incentive fee waiver
for the next two quarters through September 2020.”
PORTFOLIO AND INVESTMENT
ACTIVITY
As of March 31, 2020, our portfolio totaled
$1,354.0 million and consisted of $815.2 million of first lien
secured debt, $261.6 million of second lien secured debt, $64.4
million of subordinated debt and $212.8 million of preferred and
common equity. Our debt portfolio consisted of 94% variable-rate
investments. As of March 31, 2020, we had no portfolio
companies on non-accrual. Overall, the portfolio had net unrealized
depreciation of $135.0 million as of March 31, 2020. Our
overall portfolio consisted of 87 companies with an average
investment size of $15.6 million, had a weighted average yield on
interest bearing debt investments of 9.1% and was invested 60% in
first lien secured debt, 19% in second lien secured debt, 5% in
subordinated debt and 16% in preferred and common equity. For more
information on how the COVID-19 pandemic has affected our business
and results of operations, see the “Effects of COVID-19” section
below.
As of September 30, 2019, our portfolio totaled
$1,219.4 million and consisted of $695.3 million of first lien
secured debt, $269.3 million of second lien secured debt, $61.2
million of subordinated debt and $193.7 million of preferred and
common equity. Our debt portfolio consisted of 87% variable-rate
investments. As of September 30, 2019, we had no portfolio
companies on non-accrual. Overall, the portfolio had net unrealized
depreciation of $37.6 million as of September 30, 2019. Our overall
portfolio consisted of 67 companies with an average investment size
of $18.2 million, had a weighted average yield on interest bearing
debt investments of 9.8% and was invested 57% in first lien secured
debt, 22% in second lien secured debt, 5% in subordinated debt and
16% in preferred and common equity.
For the three months ended March 31, 2020,
we invested $106.8 million in eight new and 24 existing portfolio
companies with a weighted average yield on debt investments of
8.2%. Sales and repayments of investments for the three months
ended March 31, 2020 totaled $16.4 million. For the six months
ended March 31, 2020, we invested $280.5 million in 21 new and
39 existing portfolio companies with a weighted average yield on
debt investments of 8.6%. Sales and repayments of investments for
the six months ended March 31, 2020 totaled $47.5 million.
For the three months ended March 31, 2019,
we invested $183.9 million in nine new and 13 existing portfolio
companies with a weighted average yield on debt investments of
9.1%. Sales and repayments of investments for the three months
ended March 31, 2019 totaled $115.1 million. For the six
months ended March 31, 2019, we invested $378.4 million in 15
new and 26 existing portfolio companies with a weighted average
yield on debt investments of 9.3%. Sales and repayments of
investments for the six months ended March 31, 2019 totaled
$240.9 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations
for the three and six months ended March 31, 2020 and
2019.
Investment Income
Investment income for the three and six months
ended March 31, 2020 was $27.5 million and $53.5 million,
respectively, and was attributable to $17.5 million and $33.5
million from first lien secured debt, $7.7 million and $15.4
million from second lien secured debt and $2.3 million and $4.6
million from subordinated debt, respectively. This compares to
investment income for the three and six months ended March 31, 2019
of $28.7 million and $56.1 million, respectively, and was
attributable to $15.7 million and $29.0 million from first lien
secured debt, $11.2 million and $23.5 million from second lien
secured debt and $1.8 million and $3.6 million from subordinated
debt, preferred and common equity, respectively. The decrease in
investment income compared to the same periods in the prior year
was primarily due to decreases in LIBOR.
Expenses
Expenses for the three and six months ended
March 31, 2020 totaled $17.2 million and $33.0 million,
respectively. Base management fee for the same periods totaled $4.9
million and $9.6 million, incentive fee totaled $1.9 million and
$2.7 million, debt related interest and expenses totaled $9.0
million and $17.8 million, general and administrative expenses
totaled $1.2 million and $2.3 million and provision for taxes
totaled $0.3 million and $0.6 million, respectively. This compares
to net expenses for the three and six months ended March 31, 2019,
which totaled $17.9 million and $32.7 million, respectively. Base
management fee for the same periods totaled $4.5 million and $8.9
million, incentive fee totaled less than $0.1 million and $2.7
million, debt related interest and expenses totaled $11.9 million
(including $2.2 million of make-whole premium on the repayment of
the 2019 Notes and $2.7 million in debt issuance costs on the BNP
Credit Facility) and $18.2 million (including $2.2 million of
make-whole premium on the repayment of the 2019 Notes and $2.7
million in debt issuance costs on the BNP Credit Facility), general
and administrative expenses totaled $1.2 million and $2.3
million and provision for taxes totaled $0.3 million and $0.6
million, respectively. The decrease in expenses for the three
months ended March 31, 2020 compared to the same period in the
prior year was primarily due to financing costs incurred in the
prior year in connection with the redemption of the 2019 Notes,
partially offset by the higher leverage costs. The increase in
expenses for the six months ended March 31, 2020 compared to the
same period in the prior year was primarily due to higher leverage
costs as well as higher base management and incentive fees.
Net Investment Income
Net investment income totaled $10.3 million and
$20.5 million, or $0.15 and $0.31 per share, for the three and six
months ended March 31, 2020, respectively. Net investment income
totaled $10.8 million and $23.3 million, or $0.16 and $0.34 per
share, for the three and six months ended March 31, 2019,
respectively. The decrease in net investment income compared to the
same periods in the prior year was primarily due to lower
investment income as well as higher leverage costs.
Net Realized Gains or
Losses
Sales and repayments of investments for the
three and six months ended March 31, 2020 totaled $16.4 million and
$47.5 million, respectively, and net realized gains (losses)
totaled $1.4 million and $(10.6) million, respectively. Sales and
repayments of investments for the three and six months ended March
31, 2019 totaled $115.9 million and $240.9 million, respectively,
and net realized gains totaled $1.0 million and $9.5 million,
respectively. The change in realized gains/losses was primarily due
to changes in the market conditions of our investments and the
values at which they were realized.
Unrealized Appreciation or Depreciation on Investments,
the Credit Facilities and the 2019 Notes
For the three and six months ended March 31,
2020, we reported net change in unrealized depreciation on
investments of $121.0 million and $97.3 million, respectively. For
the three and six months ended March 31, 2019, we reported net
change in unrealized depreciation on investments of $20.1 million
and $40.5 million, respectively. As of March 31, 2020 and September
30, 2019, our net unrealized depreciation on investments totaled
$135.0 million and $37.6 million, respectively. The net change in
unrealized depreciation on our investments compared to the same
periods in the prior year was primarily due to changes in the
capital market conditions, as well as the financial performance of
certain portfolio companies primarily driven by the market
disruption caused by the COVID-19 pandemic and the uncertainty
surrounding its continued adverse economic impact. For more
information on how the COVID-19 pandemic has affected our business
and results of operations, see the “Effects of COVID-19” section
below.
For the three and six months ended
March 31, 2020 our Credit Facilities had a net change in
unrealized depreciation of $48.9 million and $46.4 million,
respectively. For the three and six months ended March 31,
2019, our Credit Facilities and the 2019 Notes had a net change in
unrealized depreciation of $3.7 million and $9.7 million,
respectively. As of March 31, 2020 and September 30, 2019, the
net unrealized depreciation on the Credit Facilities totaled $53.6
million and $7.2 million, respectively. The net change in
unrealized depreciation compared to the same periods in the prior
year was primarily due to changes in the capital markets.
Net Change in Net Assets Resulting from
Operations
Net change in net assets resulting from
operations totaled $(60.3) million and $(41.1) million, or $(0.90)
and $(0.61) per share, for the three and six months ended
March 31, 2020, respectively. Net change in net assets
resulting from operations totaled $(4.7) million and $2.0 million,
or $(0.08) and $0.26 per share, for the three and six months ended
March 31, 2019, respectively. The decrease in the net change
in net assets from operations compared to the same periods in the
prior year was primarily due to depreciation of the portfolio
primarily driven by the market disruption caused by the COVID-19
pandemic and the uncertainty surrounding its continued adverse
economic impact. For more information on how the COVID-19 pandemic
has affected our business and results of operations, see the
“Effects of COVID-19” section below.
LIQUIDITY AND CAPITAL
RESOURCES
Our liquidity and capital resources are derived
primarily from proceeds of securities offerings, debt capital and
cash flows from operations, including investment sales and
repayments, and income earned. Our primary use of funds from
operations includes investments in portfolio companies and payments
of fees and other operating expenses we incur. We have used, and
expect to continue to use, our debt capital, proceeds from the
rotation of our portfolio and proceeds from public and private
offerings of securities to finance our investment objectives. For
more information on how the COVID-19 pandemic may impact our
ability to comply with the covenants of the Credit Facilities, see
the “Effects of COVID-19” section below.
The annualized weighted average cost of debt for
the six months ended March 31, 2020 and 2019, inclusive of the fee
on the undrawn commitment under the Credit Facilities, debt
issuance costs on the BNP Credit Facility, prepayment penalties on
the 2019 Notes and amortized upfront fees on the 2024 Notes and SBA
debentures, was 5.1% and 7.0%, respectively (excluding debt
issuance costs and prepayment penalties, amounts were 5.1% and
5.9%, respectively).
As of March 31, 2020 and September 30, 2019,
PennantPark Investment Funding I, LLC, or Funding I, had $245.0
million and $171.0 million in outstanding borrowings under the BNP
Credit Facility, respectively. The BNP Credit Facility had a
weighted average interest rate of 3.6% and 4.6%, respectively,
exclusive of the fee on undrawn commitments, as of March 31, 2020
and September 30, 2019. As of March 31, 2020 and September 30,
2019, Funding I had $5.0 million and $79.0 million of unused
borrowing capacity under the BNP Credit Facility, respectively,
subject to leverage and borrowing base restrictions.
As of March 31, 2020 and September 30, 2019, we
had $441.6 million and $301.6 million, respectively, in outstanding
borrowings under the Truist Credit Facility. The Truist Credit
Facility had a weighted average interest rate of 3.2% and 4.2%,
respectively, exclusive of the fee on undrawn commitments, as of
March 31, 2020 and September 30, 2019. As of March 31, 2020 and
September 30, 2019, we had $33.4 million and $173.4 million of
unused borrowing capacity under the Truist Credit Facility,
respectively, subject to leverage and borrowing base
restrictions.
As of March 31, 2020 and September 30,
2019, we had cash and cash equivalents of $25.1 million and $59.5
million, respectively, available for investing and general
corporate purposes. We believe our liquidity and capital resources
are sufficient to take advantage of market opportunities.
Our operating activities used cash of $218.6
million for the six months ended March 31, 2020, and our
financing activities provided cash of $184.3 million for the same
period. Our operating activities used cash primarily for our
investment activities and our financing activities provided cash
primarily from net borrowings under the Credit Facilities.
Our operating activities used cash of $121.3
million for the six months ended March 31, 2019 and our
financing activities provided cash of $132.0 million for the same
period. Our operating activities provided cash from sales and
repayments on our investments and our financing activities used
cash primarily to pay distributions to stockholders and for net
repayments under the Truist Credit Facility.
DISTRIBUTIONS
During the three and six months ended
March 31, 2020, we declared distributions of $0.18 and $0.36
per share, for total distributions of $12.1 million and $24.1
million, respectively. For the same periods in the prior year, we
declared distributions of $0.18 and $0.36 per share, for total
distributions of $12.1 million and $24.3 million, respectively. We
monitor available net investment income to determine if a return of
capital for tax purposes may occur for the fiscal year. To the
extent our taxable earnings fall below the total amount of our
distributions for any given fiscal year, stockholders will be
notified of the portion of those distributions deemed to be a tax
return of capital. Tax characteristics of all distributions will be
reported to stockholders subject to information reporting on Form
1099-DIV after the end of each calendar year and in our periodic
reports filed with the Securities and Exchange Commission, or the
SEC.
EFFECTS OF COVID-19
The spread of COVID-19 has had a significant
impact on the U.S. economy and has resulted in governmental orders
imposing travel restrictions and prolonged closures of many
corporate offices, retail stores, manufacturing facilities,
factories and other common places of public congregation around the
world. These restrictions and “stay-at-home” orders have
essentially resulted in the shutdown of all non-essential
businesses, as defined by each governmental authority imposing the
respective orders. Any future impact to our business and results of
operations will depend to a large extent on future developments and
new information that may emerge regarding the duration and severity
of COVID-19 and the actions taken by authorities and other entities
to reduce the spread of the virus, all of which are beyond our
control. The COVID-19 pandemic has had, and continues to have, an
adverse impact on our operating results and the operating results
of our portfolio companies.
We had a significant reduction of our net asset
value as of March 31, 2020 as compared to our net asset value in
the prior quarter. This reduction resulted from an increase in the
overall net unrealized depreciation of the Company’s portfolio,
including unrealized depreciations in the Company's investments and
the Credit Facilities as of March 31, 2020, which was primarily due
to the immediate adverse economic impact of the COVID-19 pandemic,
the continuing uncertainty surrounding its long-term effects as
well as the re-pricing of credit risk in the broadly syndicated
credit market. As of March 31, 2020, we are in compliance with
asset coverage requirements under the Investment Company Act of
1940, as amended. In addition, we are not in default of any asset
coverage requirements under the Credit Facilities as of March 31,
2020. However, any continued increase in unrealized depreciation of
our investment portfolio or further significant reductions in our
net asset value, as a result of the effects of the COVID-19
pandemic or otherwise, increases the risk of breaching the relevant
covenants. As such, we may run into liquidity issues in the future
if we are unable to draw on the unused borrowing capacity under our
Credit Facilities due the breach of financial covenants.
We will continue to monitor the rapidly evolving
situation surrounding the COVID-19 pandemic and guidance from U.S.
and international authorities, including federal, state and local
public health authorities, and may take further actions based on
their recommendations. There may be developments outside our
control requiring us to adjust our plans accordingly. While we are
closely monitoring this situation, we cannot predict the impact of
COVID-19 on our future financial condition, results of operations
or cash flows with any level of certainty. However, we expect that
the COVID-19 pandemic will have a material adverse impact on our
future net investment income, the fair value of our portfolio
investments, and the results of operations and financial condition
of our portfolio companies. For information concerning the COVID-19
pandemic and its potential impact on our business and our operating
results, see our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020, including “Item 2. Management's Discussion
and Analysis of Financial Condition and Results of Operations –
COVID-19 Developments” and “Part II - Other Information – Item 1A.
Risk Factors” therein.
AVAILABLE INFORMATION
The Company makes available on its website its
report on Form 10-Q filed with the SEC and stockholders may find
the report on our website at www.pennantpark.com.
|
PENNANTPARK INVESTMENT CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
March 31, 2020 |
|
|
September 30, 2019 |
|
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments (cost—$1,136,891,439 and
$922,304,099, respectively) |
|
$ |
1,127,578,177 |
|
|
$ |
936,632,099 |
|
Non-controlled, affiliated investments (cost—$77,628,920 and
$77,600,816, respectively) |
|
|
26,648,548 |
|
|
|
49,349,338 |
|
Controlled, affiliated investments (cost—$274,448,367 and
$257,117,800, respectively) |
|
|
199,820,217 |
|
|
|
233,451,359 |
|
Total of investments (cost—$1,488,968,726 and $1,257,022,715,
respectively) |
|
|
1,354,046,942 |
|
|
|
1,219,432,796 |
|
Cash and cash equivalents
(cost—$25,174,710 and $59,546,438, respectively) |
|
|
25,127,515 |
|
|
|
59,516,236 |
|
Interest receivable |
|
|
6,872,137 |
|
|
|
6,226,539 |
|
Prepaid expenses and other
assets |
|
|
1,071,214 |
|
|
|
662,442 |
|
Total assets |
|
|
1,387,117,808 |
|
|
|
1,285,838,013 |
|
Liabilities |
|
|
|
|
|
|
|
|
Distributions payable |
|
|
12,068,119 |
|
|
|
12,068,119 |
|
BNP Credit Facility payable, at
fair value (cost—$245,000,000 and $171,000,000, respectively) |
|
|
228,585,000 |
|
|
|
170,145,000 |
|
Truist Credit Facility payable,
at fair value (cost—$441,636,000 and $301,636,000,
respectively) |
|
|
404,430,430 |
|
|
|
295,245,214 |
|
2024 Notes payable, net
(par—$86,250,000 and $75,000,000, respectively) |
|
|
83,504,809 |
|
|
|
72,256,607 |
|
SBA debentures payable, net
(par—$133,500,000 and $150,000,000, respectively) |
|
|
130,285,249 |
|
|
|
146,111,055 |
|
Base management fee payable,
net |
|
|
4,880,699 |
|
|
|
4,641,480 |
|
Performance-based incentive
fee payable, net |
|
|
1,913,047 |
|
|
|
— |
|
Interest payable on debt |
|
|
4,612,690 |
|
|
|
2,895,695 |
|
Accrued other expenses |
|
|
158,528 |
|
|
|
569,175 |
|
Total liabilities |
|
|
870,438,571 |
|
|
|
703,932,345 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Net
assets |
|
|
|
|
|
|
|
|
Common stock, 67,045,105 and
67,045,105 shares issued and outstanding, respectively Par
value $0.001 per share and 100,000,000 shares authorized |
|
|
67,045 |
|
|
|
67,045 |
|
Paid-in capital in excess of
par value |
|
|
788,192,159 |
|
|
|
788,192,159 |
|
Accumulated distributable net
loss |
|
|
(271,579,967 |
) |
|
|
(206,353,536 |
) |
Total net assets |
|
$ |
516,679,237 |
|
|
$ |
581,905,668 |
|
Total liabilities and net assets |
|
$ |
1,387,117,808 |
|
|
$ |
1,285,838,013 |
|
Net asset value per
share |
|
$ |
7.71 |
|
|
$ |
8.68 |
|
|
|
|
|
|
|
|
|
|
|
PENNANTPARK INVESTMENT CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Six Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-controlled,
non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
22,748,529 |
|
|
$ |
22,938,612 |
|
|
$ |
43,133,443 |
|
|
$ |
46,447,193 |
|
Payment-in-kind |
|
|
1,978,894 |
|
|
|
2,626,193 |
|
|
|
3,863,400 |
|
|
|
3,872,209 |
|
Other income |
|
|
751,284 |
|
|
|
1,016,381 |
|
|
|
941,202 |
|
|
|
1,634,452 |
|
From non-controlled,
affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
— |
|
|
|
3,798 |
|
|
|
— |
|
|
|
108,903 |
|
Payment-in-kind |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
108,625 |
|
From controlled, affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
559,934 |
|
|
|
2,048,653 |
|
|
|
1,204,624 |
|
|
|
3,837,256 |
|
Payment-in-kind |
|
|
1,496,251 |
|
|
|
54,116 |
|
|
|
4,395,988 |
|
|
|
59,116 |
|
Total investment income |
|
|
27,534,892 |
|
|
|
28,687,753 |
|
|
|
53,538,657 |
|
|
|
56,067,754 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee |
|
|
4,880,699 |
|
|
|
4,510,830 |
|
|
|
9,623,129 |
|
|
|
8,930,092 |
|
Performance-based incentive fee |
|
|
1,913,047 |
|
|
|
8,340 |
|
|
|
2,657,673 |
|
|
|
2,675,610 |
|
Interest and expenses on debt |
|
|
8,962,513 |
|
|
|
7,032,019 |
|
|
|
17,828,583 |
|
|
|
13,310,866 |
|
Administrative services expenses |
|
|
521,520 |
|
|
|
532,625 |
|
|
|
1,043,040 |
|
|
|
1,054,250 |
|
Other general and administrative expenses |
|
|
648,881 |
|
|
|
692,177 |
|
|
|
1,292,841 |
|
|
|
1,310,544 |
|
Expenses before financing costs and provision for
taxes |
|
|
16,926,660 |
|
|
|
12,775,991 |
|
|
|
32,445,266 |
|
|
|
27,281,362 |
|
Debt issuance costs |
|
|
— |
|
|
|
2,696,498 |
|
|
|
— |
|
|
|
2,696,498 |
|
Make-whole premium |
|
|
— |
|
|
|
2,162,526 |
|
|
|
— |
|
|
|
2,162,526 |
|
Provision for taxes |
|
|
300,000 |
|
|
|
300,000 |
|
|
|
600,000 |
|
|
|
600,000 |
|
Net expenses |
|
|
17,226,660 |
|
|
|
17,935,015 |
|
|
|
33,045,266 |
|
|
|
32,740,386 |
|
Net investment income |
|
|
10,308,232 |
|
|
|
10,752,738 |
|
|
|
20,493,391 |
|
|
|
23,327,368 |
|
Realized and
unrealized (loss) gain on investments and debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on
investments on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
1,424,778 |
|
|
|
972,448 |
|
|
|
(10,609,375 |
) |
|
|
4,710,367 |
|
Non-controlled and controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,792,067 |
|
Net realized gain (loss) on investments |
|
|
1,424,778 |
|
|
|
972,448 |
|
|
|
(10,609,375 |
) |
|
|
9,502,434 |
|
Net change in unrealized
(depreciation) appreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
(40,710,987 |
) |
|
|
(6,753,803 |
) |
|
|
(23,658,391 |
) |
|
|
(13,683,685 |
) |
Non-controlled and controlled, affiliated investments |
|
|
(80,260,831 |
) |
|
|
(13,379,363 |
) |
|
|
(73,690,603 |
) |
|
|
(26,842,060 |
) |
Debt depreciation |
|
|
48,946,105 |
|
|
|
3,661,483 |
|
|
|
46,374,785 |
|
|
|
9,727,635 |
|
Net change in unrealized (depreciation) appreciation on
investments and debt |
|
|
(72,025,713 |
) |
|
|
(16,471,683 |
) |
|
|
(50,974,209 |
) |
|
|
(30,798,110 |
) |
Net realized and
unrealized (loss) gain from investments and debt |
|
|
(70,600,935 |
) |
|
|
(15,499,235 |
) |
|
|
(61,583,584 |
) |
|
|
(21,295,676 |
) |
Net (decrease)
increase in net assets resulting from operations |
|
$ |
(60,292,703 |
) |
|
$ |
(4,746,497 |
) |
|
$ |
(41,090,193 |
) |
|
$ |
2,031,692 |
|
Net (decrease) increase in net
assets resulting from operations per common share |
|
$ |
(0.90 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.61 |
) |
|
$ |
0.03 |
|
Net investment income per
common share |
|
$ |
0.15 |
|
|
$ |
0.16 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOUT PENNANTPARK INVESTMENT
CORPORATION
PennantPark Investment Corporation is a business
development company which invests primarily in U.S. middle-market
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 today has $3.7 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 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 Securities and Exchange Commission as
well as changes in the economy and risks associated with possible
disruption in the Company’s operations or the economy generally due
to terrorism, natural disasters or pandemics such as COVID-19.
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.
We 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 our historical experience and our present expectations.
CONTACT:
Aviv EfratPennantPark Investment Corporation(212)
905-1000www.pennantpark.com
PennantPark Investment (NASDAQ:PNNT)
Historical Stock Chart
From Jun 2024 to Jul 2024
PennantPark Investment (NASDAQ:PNNT)
Historical Stock Chart
From Jul 2023 to Jul 2024