PennantPark Investment Corporation (NYSE: PNNT) reported its Q2 2025 financial results. The company's investment portfolio totaled $1,213.6 million as of March 31, 2025, with a portfolio composition of 41% first lien secured debt, 10% U.S. Government Securities, 2% second lien secured debt, 18% subordinated debt, and 29% preferred and common equity. Net investment income was $11.4 million ($0.18 per share), down from $14.3 million ($0.22 per share) in Q2 2024. The company declared distributions of $0.24 per share. Portfolio metrics showed a weighted average yield on debt investments of 12.0%, with three portfolio companies on non-accrual representing 1.6% and 0.4% of the portfolio on cost and fair value basis, respectively. The portfolio demonstrated net unrealized appreciation of $40.7 million and consisted of 158 companies with an average investment size of $6.9 million.
PennantPark Investment Corporation (NYSE: PNNT) ha comunicato i risultati finanziari del secondo trimestre 2025. Al 31 marzo 2025, il portafoglio investimenti della società ammontava a 1.213,6 milioni di dollari, con una composizione del portafoglio del 41% in debito garantito di primo grado, 10% in titoli del governo USA, 2% in debito garantito di secondo grado, 18% in debito subordinato e 29% in azioni privilegiate e ordinarie. Il reddito netto da investimenti è stato di 11,4 milioni di dollari (0,18 dollari per azione), in calo rispetto ai 14,3 milioni di dollari (0,22 dollari per azione) nel secondo trimestre 2024. La società ha dichiarato distribuzioni di 0,24 dollari per azione. Le metriche del portafoglio hanno evidenziato un rendimento medio ponderato sugli investimenti in debito del 12,0%, con tre società del portafoglio in stato di non accrescimento, rappresentanti rispettivamente l'1,6% e lo 0,4% del portafoglio su base di costo e valore equo. Il portafoglio ha mostrato un apprezzamento netto non realizzato di 40,7 milioni di dollari ed era composto da 158 società con una dimensione media dell'investimento di 6,9 milioni di dollari.
PennantPark Investment Corporation (NYSE: PNNT) informó sus resultados financieros del segundo trimestre de 2025. Al 31 de marzo de 2025, la cartera de inversiones de la compañía totalizaba 1,213.6 millones de dólares, con una composición del portafolio del 41% en deuda garantizada de primer grado, 10% en valores del gobierno de EE.UU., 2% en deuda garantizada de segundo grado, 18% en deuda subordinada y 29% en acciones preferentes y comunes. Los ingresos netos por inversiones fueron de 11.4 millones de dólares (0.18 dólares por acción), una disminución respecto a los 14.3 millones de dólares (0.22 dólares por acción) del segundo trimestre de 2024. La compañía declaró distribuciones de 0.24 dólares por acción. Las métricas del portafolio mostraron un rendimiento promedio ponderado en inversiones de deuda del 12.0%, con tres compañías en cartera en estado de no acumulación, representando el 1.6% y 0.4% del portafolio en base a costo y valor justo, respectivamente. El portafolio mostró una apreciación neta no realizada de 40.7 millones de dólares y estaba compuesto por 158 compañías con un tamaño promedio de inversión de 6.9 millones de dólares.
PennantPark Investment Corporation(NYSE: PNNT)는 2025년 2분기 재무 결과를 발표했습니다. 2025년 3월 31일 기준으로 회사의 투자 포트폴리오 총액은 12억 1,360만 달러이며, 포트폴리오 구성은 41% 1순위 담보 부채, 10% 미국 정부 증권, 2% 2순위 담보 부채, 18% 후순위 부채, 29% 우선주 및 보통주로 이루어져 있습니다. 순투자수익은 1,140만 달러(주당 0.18달러)로, 2024년 2분기의 1,430만 달러(주당 0.22달러)에서 감소했습니다. 회사는 주당 0.24달러의 배당금을 선언했습니다. 포트폴리오 지표는 부채 투자에 대한 가중 평균 수익률이 12.0%임을 보여주었으며, 3개 포트폴리오 회사가 비수익 상태에 있어 비용 기준과 공정 가치 기준으로 각각 포트폴리오의 1.6%와 0.4%를 차지했습니다. 포트폴리오는 4,070만 달러의 순미실현 평가이익을 기록했으며, 158개 회사로 구성되어 평균 투자 규모는 690만 달러였습니다.
PennantPark Investment Corporation (NYSE : PNNT) a publié ses résultats financiers du deuxième trimestre 2025. Au 31 mars 2025, le portefeuille d'investissement de la société s'élevait à 1 213,6 millions de dollars, avec une composition du portefeuille de 41 % de dettes garanties de premier rang, 10 % de titres du gouvernement américain, 2 % de dettes garanties de second rang, 18 % de dettes subordonnées et 29 % d'actions privilégiées et ordinaires. Le revenu net d'investissement était de 11,4 millions de dollars (0,18 dollar par action), en baisse par rapport à 14,3 millions de dollars (0,22 dollar par action) au deuxième trimestre 2024. La société a déclaré des distributions de 0,24 dollar par action. Les indicateurs du portefeuille ont montré un rendement moyen pondéré des investissements en dette de 12,0 %, avec trois sociétés du portefeuille en non-acquisition représentant respectivement 1,6 % et 0,4 % du portefeuille sur la base du coût et de la juste valeur. Le portefeuille a affiché une appréciation nette non réalisée de 40,7 millions de dollars et comprenait 158 sociétés avec une taille moyenne d'investissement de 6,9 millions de dollars.
Die PennantPark Investment Corporation (NYSE: PNNT) berichtete über ihre Finanzergebnisse für das zweite Quartal 2025. Zum 31. März 2025 belief sich das Investitionsportfolio des Unternehmens auf 1.213,6 Millionen US-Dollar mit einer Portfoliostruktur von 41 % vorrangig besicherten Schulden, 10 % US-Staatsanleihen, 2 % nachrangig besicherten Schulden, 18 % nachrangigen Schulden sowie 29 % Vorzugs- und Stammaktien. Das Nettoanlageergebnis betrug 11,4 Millionen US-Dollar (0,18 US-Dollar pro Aktie), was einen Rückgang gegenüber 14,3 Millionen US-Dollar (0,22 US-Dollar pro Aktie) im zweiten Quartal 2024 darstellt. Das Unternehmen erklärte Ausschüttungen von 0,24 US-Dollar pro Aktie. Die Portfoliokennzahlen zeigten eine gewichtete durchschnittliche Rendite auf Schuldeninvestitionen von 12,0 %, wobei drei Portfolio-Unternehmen in Zahlungsverzug waren und 1,6 % beziehungsweise 0,4 % des Portfolios auf Kosten- bzw. Fair-Value-Basis ausmachten. Das Portfolio wies eine nicht realisierte Nettoaufwertung von 40,7 Millionen US-Dollar auf und bestand aus 158 Unternehmen mit einer durchschnittlichen Investitionsgröße von 6,9 Millionen US-Dollar.
Positive
Portfolio shows strong diversification with 158 companies
91% of interest bearing debt portfolio in variable-rate investments, beneficial in high-rate environment
Low non-accrual rate of 1.6% on cost basis indicates good portfolio quality
Net unrealized appreciation of $40.7 million shows portfolio value growth
Substantial spillover income supporting dividend payments
Negative
Net investment income decreased to $0.18 per share from $0.22 per share year-over-year
GAAP net asset value per share declined 1.2% quarter-over-quarter
Total investment income decreased to $30.7M from $36.0M in Q2 2024
Portfolio size decreased compared to September 2024 ($1,213.6M vs $1,328.1M)
Insights
PNNT reports Q2 earnings showing declining NAV and NII with defensive portfolio positioning despite challenging market conditions.
PennantPark's Q2 2025 results reveal several concerning trends. Net Asset Value (NAV) per share declined 1.2% quarter-over-quarter to $7.48, while Net Investment Income (NII) fell to $11.4 million ($0.18 per share) compared to $14.3 million ($0.22 per share) in the same quarter last year—a 18.2% year-over-year decrease. This decline occurred despite maintaining a healthy weighted average yield of 12.0% on debt investments.
The company's investment portfolio contracted to $1.21 billion, down from $1.33 billion in September 2024, primarily due to repayments ($263.1 million) exceeding new investments ($176.8 million). Portfolio composition shifted notably, with first lien secured debt dropping from 50% to 41% of the portfolio, while preferred and common equity exposure increased from 23% to 29%—a riskier allocation.
Credit quality showed mixed signals. While overall net unrealized appreciation increased substantially from $11.2 million to $40.7 million, the number of non-accrual investments rose from two to three companies. However, non-accruals improved on a value basis, representing just 0.4% of the portfolio by fair value, down from 2.3% six months earlier.
The distribution of $0.24 per share exceeds the $0.18 NII, suggesting potential return of capital rather than purely earned income. Management's comment about "substantial spillover income" supporting dividends indicates they're using previously undistributed income to maintain the payout despite declining current earnings.
PNNT's leverage ratio stands at 1.29x debt-to-equity, providing some flexibility within BDC regulatory limits. Meanwhile, the PennantPark Senior Loan Fund (PSLF) continues to grow rapidly, with its portfolio expanding to $1.39 billion from $1.03 billion in September 2024, serving as an important income source for PNNT and helping diversify risk.
MIAMI, May 12, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE: PNNT) announced today its financial results for the second quarter ended March 31, 2025.
HIGHLIGHTS Quarter ended March 31, 2025 (unaudited) ($ in millions, except per share amounts)
Assets and Liabilities:
Investment portfolio (1)
$
1,213.6
Net assets
$
488.1
GAAP net asset value per share
$
7.48
Quarterly change in GAAP net asset value per share
(1.2
)%
Adjusted net asset value per share (2)
$
7.48
Quarterly change in adjusted net asset value per share (2)
(1.2
)%
Credit Facility
$
311.4
2026 Notes
$
149.0
2026-2 Notes
$
163.5
Regulatory debt to equity
1.29x
Weighted average yield on debt investments
12.0
%
Operating Results:
Net investment income
$
11.4
Net investment income per share
$
0.18
Core net investment income per share (3)
$
0.18
Distributions declared per share
$
0.24
Portfolio Activity:
Purchases of investments *
$
176.8
Sales and repayments of investments *
$
263.1
PSLF Portfolio data:
PSLF investment portfolio
$
1,392.9
Purchases of investments
$
169.9
Sales and repayments of investments
$
48.3
* excludes U.S. Government Securities
Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling $217.7 million, at fair value.
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 unrealized gain on the Company's multi-currency, senior secured revolving credit facility with Truist Bank, as amended, the “Credit Facility." 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.
Core net investment income ("Core NII") is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. 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. For the quarter ended March 31, 2025, Core NII excluded: i) $0.3 million of credit facility amendment cost, and ii) $0.1 million of incentive fee expense offset.
CONFERENCE CALL AT 12:00 P.M. EST ON MAY 13, 2025
PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.m. (Eastern Time) on Tuesday, May 13, 2025 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 #1509093 or PennantPark Investment Corporation. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased that our secured loan portfolio, with among the lowest portfolio company leverage and most meaningful covenants in the industry, is positioned defensively and continues to perform well,” said Art Penn, Chairman and CEO. “Additionally, our dividend stream is supported by substantial spillover income as we look to rotate equity investments over time.”
As of March 31, 2025, our portfolio totaled $1,213.6 million and consisted of $503.0 million or 41% of first lien secured debt, $124.6 million or 10% of U.S. Government Securities, $17.9 million or 2% of second lien secured debt, $216.8 million or 18% of subordinated debt (including $140.3 million or 12% in PSLF) and $351.3 million or 29% of preferred and common equity (including $77.4 million or 6% in PSLF). Our interest bearing debt portfolio consisted of 91% variable-rate investments and 9% fixed-rate investments. As of March 31, 2025, we had three portfolio companies on non-accrual, representing 1.6% and 0.4% percent of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $40.7 million as of March 31, 2025. Our overall portfolio consisted of 158 companies with an average investment size of $6.9 million (excluding U.S. Government Securities), had a weighted average yield on interest bearing debt investments of 12.0%.
As of September 30, 2024, our portfolio totaled $1,328.1 million and consisted of $667.9 million or 50% of first lien secured debt, $99.6 million or 8% of U.S. Government Securities, $67.2 million or 5% of second lien secured debt, $181.7 million or 14% of subordinated debt (including $115.9 million or 9% in PSLF) and $311.7 million or 23% of preferred and common equity (including $67.9 million or 5% in PSLF). Our interest bearing debt portfolio consisted of 94% variable-rate investments and 6% fixed-rate investments. As of September 30, 2024, we had two portfolio companies on non-accrual, representing 4.1% and 2.3% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $11.2 million as of September 30, 2024. Our overall portfolio consisted of 152 companies with an average investment size of $8.1 million (excluding U.S. Government Securities), had a weighted average yield on interest bearing debt investments of 12.3%.
For the three months ended March 31, 2025, we invested $176.8 million in three new and 52 existing portfolio companies with a weighted average yield on debt investments of 10.7% (excluding U.S. Government Securities). For the three months ended March 31, 2025, sales and repayments of investments totaled $263.1 million (including $154.4 million was sold to PSLF) which excludes U.S. Government Securities. For the six months ended March 31, 2025, we invested $472.5 million in 15 new and 96 existing portfolio companies with a weighted average yield on debt investments of 10.6% (excluding U.S. Government Securities). For the six months ended March 31, 2025, sales and repayments of investments totaled $616.8 million (including $441.0 million was sold to PSLF) which excludes U.S. Government Securities.
For the three months ended March 31, 2024, we invested $188.5 million in six new and 43 existing portfolio companies with a weighted average yield on debt investments of 11.7% (excluding U.S. Government Securities). For the three months ended March 31, 2024, sales and repayments of investments totaled $176.2 million (including $103.1 million was sold to PSLF) which excludes U.S. Government Securities. For the six months ended March 31, 2024, we invested $419.6 million in 18 new and 60 existing portfolio companies with a weighted average yield on debt investments of 11.8% (excluding U.S. Government Securities). For the six months ended March 31, 2024, sales and repayments of investments totaled $247.2 million (including $154.0 million was sold to PSLF) which excludes U.S. Government Securities.
PennantPark Senior Loan Fund, LLC
As of March 31, 2025, PSLF’s portfolio totaled $1,392.9 million, consisted of 119 companies with an average investment size of $11.7 million and had a weighted average yield interest bearing debt investments of 10.4%.
As of September 30, 2024, PSLF’s portfolio totaled $1,031.2 million, consisted of 102 companies with an average investment size of $10.1 million and had a weighted average yield interest bearing debt investments of 11.3%.
For the three months ended March 31, 2025, PSLF invested $169.9 million (including $154.4 million were purchased from the Company) in eight new and 14 existing portfolio companies at weighted average yield interest bearing debt investments of 10.1%. PSLF’s sales and repayments of investments for the same period totaled $48.3 million. For the six months ended March 31, 2025, PSLF invested $523.7 million (including $441.0 million were purchased from the Company) in 23 new and 57 existing portfolio companies at weighted average yield interest bearing debt investments of 10.4%. PSLF’s sales and repayments of investments for the same period totaled $157.4 million.
For the three months ended March 31, 2024, PSLF invested $113.2 million (including $103.1 million were purchased from the Company) in 11 new and five existing portfolio companies at weighted average yield on interest bearing debt investments of 11.8%. PSLF’s sales and repayments of investments for the same period totaled $49.7 million. For the six months ended March 31, 2024, PSLF invested $194.2 million (including $154.0 million were purchased from the Company) in 16 new and 11 existing portfolio companies at weighted average yield on interest bearing debt investments of 12.2%. PSLF’s sales and repayments of investments for the same period totaled $78.9 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and six months ended March 31, 2025 and 2024.
Investment Income
For the three and six months ended March 31, 2025, investment income was $30.7 million and $64.9 million, respectively, which was attributable to $22.1 million and $47.3 million from first lien secured debt, $1.0 million and $3.0 million from second lien secured debt, $1.1 million and $2.2 million from subordinated debt and $6.5 million and $12.4 million from other investments, respectively. For the three and six months ended March 31, 2024, investment income was $36.0 million and $70.3 million, respectively, which was attributable to $27.8 million and $52.9 million from first lien secured debt, $2.8 million and $5.4 million from second lien secured debt, $0.1 million and $1.4 million from subordinated debt and $5.3 million and $10.6 million from preferred and common equity, respectively. The decrease in investment income for three and six months ended March 31, 2025, was primarily due to a decrease in our total portfolio size and a decrease in our weighted average yield on debt investments.
Expenses
For the three and six months ended March 31, 2025, expenses totaled $19.2 million and $40.4 million, respectively, and were comprised of $10.6 million and $22.4 million of debt related interest and expenses, $4.0 million and $8.3 million of base management fees, $2.4 million and $5.2 million of incentive fees, $1.6 million and $3.3 million of general and administrative expenses and $0.6 million and $1.3 million of provision for excise taxes, respectively. For the three and six months ended March 31, 2024, expenses totaled $21.7 million and $40.4 million, respectively, and were comprised of; $11.9 million and $21.4 million of debt-related interest and expenses, $4.1 million and $8.1 million of base management fees, $3.0 million and $6.3 million of incentive fees, $1.9 million and $3.3 million of general and administrative expenses and $0.8 million and $1.2 million of provision for excise taxes, respectively. The decrease in expenses for the three months ended March 31, 2025, was primarily due to decreases in interest and expenses on debt and incentive fees. Total expenses were flat for the six months ended March 31, 2025.
Net Investment Income
For the three and six months ended March 31, 2025, net investment income totaled $11.4 million and $24.4 million, or $0.18 per share and $0.37 per share, respectively. For the three and six months ended March 31, 2024, net investment income totaled $14.3 million and $29.9 million, or $0.22 per share and $0.46 per share, respectively. The decrease in net investment income was primarily due to a decrease in investment income and partially offset by a decrease in expenses.
Net Realized Gains or Losses
For the three and six months ended March 31, 2025, net realized gains (losses) totaled $(27.7) million and $(30.3) million, respectively. For the three and six months ended March 31, 2024, net realized gains (losses) totaled $(31.0) million and $(29.2) 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 and Debt
For the three and six months ended March 31, 2025, we reported net change in unrealized appreciation (depreciation) on investments of $27.1 million and $29.5 million, respectively. For the three and six months ended March 31, 2024, we reported net change in unrealized appreciation (depreciation) on investments of $33.2 million and $28.3 million, respectively. As of March 31, 2025 and September 30, 2024, our net unrealized appreciation (depreciation) on investments totaled $40.7 million and $11.2 million, respectively. The net change in unrealized depreciation on our investments was primarily due to changes in the capital market conditions of our investments and the values at which they were realized.
For the three and six months ended March 31, 2025, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of $(1.4) million and $1.9 million, respectively. For the three and six months ended March 31, 2024, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of $0.5 million and $(1.6) million, respectively. As of March 31, 2025 and September 30, 2024, the net unrealized appreciation (depreciation) on the Truist Credit Facility totaled $3.0 million and $1.1 million, respectively. The net change in unrealized depreciation compared to the same periods in the prior period was primarily due to changes in the capital markets.
Net Change in Net Assets Resulting from Operations
For the three and six months ended March 31, 2025, net increase (decrease) in net assets resulting from operations totaled $9.5 million and $25.5 million or $0.14 per share and $0.39 per share, respectively. For the three and six months ended March 31, 2024, net increase (decrease) in net assets resulting from operations totaled $16.1 million and $26.7 million or $0.25 per share and $0.41 per share, respectively. The change in net assets from operations for the six months ended March 31, 2025 was primarily due to a change in the net realized and unrealized depreciation in the portfolio primarily driven by changes in market conditions and decrease in net investment income.
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of interest expense, 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 and operations.
As of March 31, 2025 and September 30, 2024, we had $314.5 million and $461.5 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of 6.7% and 7.2%, respectively, exclusive of the fee on undrawn commitment. As of March 31, 2025 and September 30, 2024, we had $185.5 million and $13.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions.
As of March 31, 2025 and September 30, 2024, we had cash and cash equivalents of $32.6 million and $49.9 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to allows us to effectively operate our business.
For the six months ended March 31, 2025, our operating activities provided cash of $161.1 million and our financing activities used cash of $178.3 million. Our operating activities provided cash primarily due to our investment activities and our financing activities used cash primarily for repayments of our credit facility and distributions paid to stockholders.
For the six months ended March 31, 2024, our operating activities used cash of $150.9 million and our financing activities provided cash of $147.5 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily from borrowings under the Truist Credit Facility.
DISTRIBUTIONS
During the three and six months ended March 31, 2025, we declared distributions of $0.24 and $0.48 per share, for total distributions of $15.7 million and $31.3 million, respectively. During the three and six months ended March 31, 2024, we declared distributions of $0.21 and $0.42 per share, for total distributions of $13.7 million and $27.4 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 SEC.
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly 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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share data)
March 31, 2025
September 30, 2024
(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$716,505 and $916,168, respectively)
$
723,808
$
910,323
Non-controlled, affiliated investments (amortized cost—$58,068 and $56,734, respectively)
11,050
33,423
Controlled, affiliated investments (amortized cost—$398,359 and $343,970, respectively)
478,752
384,304
Total investments (amortized cost—$1,172,932 and $1,316,872, respectively)
1,213,610
1,328,050
Cash and cash equivalents (cost—$32,568 and $49,833, respectively)
32,587
49,861
Interest receivable
5,322
5,261
Distribution receivable
6,040
5,417
Due from affiliates
35
228
Prepaid expenses and other assets
185
269
Total assets
1,257,779
1,389,086
Liabilities
Truist Credit Facility payable, at fair value (cost—$314,456 and $461,456, respectively)
311,412
460,361
2026 Notes payable, net (par— $150,000)
149,022
148,571
2026 Notes-2 payable, net (par— $165,000)
163,506
163,080
Payable for investment purchased
124,609
100,096
Interest payable on debt
6,349
6,406
Distributions payable
5,224
5,224
Base management fee payable
4,017
4,297
Accounts payable and accrued expenses
3,108
4,053
Incentive fee payable
2,425
3,057
Due to affiliate
1
33
Total liabilities
769,673
895,178
Commitments and contingencies
Net assets
Common stock, 65,296,094 and 65,296,094 shares issued and outstanding, respectively
Par value $0.001 per share and 200,000,000 shares authorized
65
65
Paid-in capital in excess of par value
743,968
743,968
Accumulated deficit
(255,927
)
(250,125
)
Total net assets
$
488,106
$
493,908
Total liabilities and net assets
$
1,257,779
$
1,389,086
Net asset value per share
$
7.48
$
7.56
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended March 31,
Six Months Ended March 31,
2025
2024
2025
2024
Investment income:
From non-controlled, non-affiliated investments:
Interest
$
14,987
$
22,904
$
33,753
$
43,972
Payment-in-kind
1,564
187
2,985
189
Dividend income
499
623
1,006
1,315
Other income
120
778
702
2,203
From non-controlled, affiliated investments:
Payment-in-kind
—
—
—
347
From controlled, affiliated investments:
Interest
7,887
5,941
15,142
11,422
Payment-in-kind
—
857
823
1,489
Dividend income
5,579
4,689
10,430
9,378
Other income
27
—
27
—
Total investment income
30,663
35,979
64,868
70,315
Expenses:
Interest and expenses on debt
10,318
11,868
22,058
21,424
Base management fee
4,017
4,137
8,285
8,141
Incentive fee
2,425
3,018
5,180
6,339
General and administrative expenses
1,150
1,379
2,400
2,593
Administrative services expenses
450
550
950
739
Expenses before amendment costs, debt issuance costs and provision for taxes
18,360
20,952
38,873
39,236
Provision for taxes on net investment income
550
775
1,250
1,168
Credit facility amendment and debt issuance costs
324
—
324
—
Net expenses
19,234
21,727
40,447
40,404
Net investment income
11,429
14,252
24,421
29,911
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments
(27,714
)
(1,434
)
(30,274
)
1,146
Non-controlled and controlled, affiliated investments
—
(29,419
)
—
(30,169
)
Provision for taxes on realized gain on investments
(49
)
(177
)
(49
)
(177
)
Net realized gain (loss) on investments and debt
(27,763
)
(31,030
)
(30,323
)
(29,200
)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments
17,918
(1,528
)
13,141
(13,798
)
Non-controlled and controlled, affiliated investments
9,214
34,751
16,352
42,075
Provision for taxes on unrealized appreciation (depreciation) on investments
37
(830
)
—
(680
)
Debt appreciation (depreciation)
(1,379
)
470
1,949
(1,570
)
Net change in unrealized appreciation (depreciation) on investments and debt
25,790
32,863
31,442
26,027
Net realized and unrealized gain (loss) from investments and debt
(1,973
)
1,833
1,119
(3,173
)
Net increase (decrease) in net assets resulting from operations
$
9,456
$
16,085
$
25,540
$
26,738
Net increase (decrease) in net assets resulting from operations per common share
$
0.14
$
0.25
$
0.39
$
0.41
Net investment income per common share
$
0.18
$
0.22
$
0.37
$
0.46
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation, or the Company, is a business development company that 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, managing approximately $10 billion of investable capital, including available leverage. 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 Miami and has offices in New York, Chicago, Houston, Los Angeles, and Amsterdam.
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 SEC. 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.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
What was PennantPark Investment Corporation's (PNNT) net investment income for Q2 2025?
PNNT reported net investment income of $11.4 million ($0.18 per share) for Q2 2025.
How much did PNNT distribute in dividends for Q2 2025?
PNNT declared distributions of $0.24 per share for Q2 2025.
What is the composition of PNNT's investment portfolio as of March 2025?
The portfolio consisted of 41% first lien secured debt, 10% U.S. Government Securities, 2% second lien secured debt, 18% subordinated debt, and 29% preferred and common equity.
What was PNNT's portfolio yield and size in Q2 2025?
The portfolio had a weighted average yield of 12.0% on debt investments and totaled $1,213.6 million across 158 companies.
How many companies were on non-accrual status in PNNT's portfolio?
As of March 31, 2025, PNNT had three portfolio companies on non-accrual, representing 1.6% and 0.4% of the portfolio on cost and fair value basis, respectively.
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