PennantPark Investment Corporation Announces Transaction With Pantheon
August 04 2020 - 9:00AM
PennantPark Investment Corporation (“PNNT”) (NASDAQ: PNNT) today
announced it has formed a joint venture with the private credit
investment business of Pantheon (“Pantheon”) to create PennantPark
Senior Loan Fund I, LLC (“PSLF”). The strategic transaction seeks
to position PennantPark to leverage its established middle-market
lending capabilities and capitalize on compelling senior-loan
opportunities amid historic market volatility.
Pantheon has invested $35 million in capital to
acquire a 28% stake from PNNT in a Special Purpose Vehicle that
currently holds $356 million of senior loans at fair value.
Additionally, Pantheon has the opportunity to contribute an
additional $30 million of capital in PSLF over time.
By combining its strong middle market financing
platform with Pantheon’s growing private credit business,
PennantPark will create buying power to drive new loan originations
and increase the scale of its middle market financing
platform. After giving effect to the formation of PSLF,
PNNT’s leverage will decrease by approximately $245 million,
bolstering PNNT’s balance sheet.
“Partnering with Pantheon, one of the world’s
leading global alternative private market investors, will greatly
enhance our value as a capital solutions provider and help us
deliver long-term value to shareholders,” said PNNT Chief Executive
Officer Arthur Penn. “PSLF will extend PennantPark’s broad reach in
middle market financing during a time when we are seeing attractive
risk adjusted returns. United by our similar investment
philosophies, we believe PNNT and Pantheon are well positioned to
capitalize on the many attractive investment opportunities before
us today.”
Rakesh Jain, Partner and Global Head of Private Credit at
Pantheon, said, “This transaction is illustrative of our growing
private credit business across secondaries, co-investments and
primaries. We seek to partner with established organizations, such
as PennantPark, to help drive value for both parties. We chose to
invest with PennantPark because of its portfolio of assets,
investment strategy and successful execution to date.”
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 $3.7
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.
ABOUT PANTHEON
Pantheon (“Pantheon”) is a leading global
private equity, infrastructure, real assets and private credit
investor that currently invests on behalf of over 625 investors,
including public and private pension plans, insurance companies,
endowments and foundations. Founded in 1982, Pantheon has developed
an established reputation in primary, co-investment and secondary
private asset solutions across all stages and geographies. Our
investment solutions include customized separate account programs,
regional primary fund programs, secondaries, co-investment,
infrastructure and real assets programs. Pantheon has four decades’
experience of investing in private markets. Pantheon currently
manages approximately $50.7 billion(1) and has
been investing in private credit opportunities since 1997.
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
(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
___________________________________
(1) As of March 31, 2020. This figure includes
assets subject to discretionary or non-discretionary management,
advice or those limited to a reporting function. Data is
unaudited.
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