If You Invested in PhenixFIN Corporation 5.25% Notes due 2028 (PFXNZ)

PhenixFIN Corporation 5.25% Notes due 2028 (NASDAQ: PFXNZ) are unsecured debt securities issued by PhenixFIN Corporation, a publicly traded business development company. According to multiple company disclosures, PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The company completed its initial public offering and commenced operations on January 20, 2011 and has elected to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

The PFXNZ notes represent a portion of the company’s capital structure and are described in the firm’s financial reports as 5.25% unsecured notes due 2028. In various quarterly and annual results releases, PhenixFIN reports the aggregate principal amount of these notes outstanding alongside its credit facility balances and cash and cash equivalents. For example, in several fiscal 2024 and 2025 updates, the company states that it had $59.2 million or $57.5 million in aggregate principal amount of its 5.25% unsecured notes due 2028, together with borrowings under its revolving credit facility and cash balances. These disclosures highlight the role of the notes as a funding source within the broader liability structure of the company.

Issuer profile

PhenixFIN Corporation, the issuer of the PFXNZ notes, focuses on investment activities that generate interest income, dividend income and fee income. Across its reported periods, total investment income is broken down into interest from investments (including non-controlled, non-affiliated, affiliated and controlled investments), dividend income, interest from cash and cash equivalents, and fee income. The company also reports realized and unrealized gains and losses on investments, net investment income, and net increase or decrease in net assets resulting from operations.

The company’s investment portfolio is reported at fair value and includes non-controlled, non-affiliated investments, affiliated investments and controlled investments. PhenixFIN’s net asset value (NAV) and NAV per common share are disclosed in its consolidated statements of assets and liabilities for each fiscal quarter and year. These NAV figures, together with the composition and fair value of the investment portfolio, provide context for understanding the issuer’s asset base that supports its obligations, including the 5.25% notes due 2028.

Capital structure and the role of PFXNZ

PhenixFIN’s capital structure, as presented in its financial statements and earnings releases, typically includes:

• Credit facility and notes payable, which encompass borrowings under the company’s credit facility and its 5.25% unsecured notes due 2028 (PFXNZ), net of debt issuance costs.
• Cash and cash equivalents, which are reported as part of total assets and are relevant for assessing liquidity.
• Net assets, including capital in excess of par value and total distributable earnings (loss), which together determine NAV and NAV per common share.

In multiple liquidity and capital resources sections of its results releases, PhenixFIN specifies the aggregate principal amount of its 5.25% unsecured notes due 2028 and the amount outstanding under its credit facility as of the reporting date. This repeated disclosure underlines the importance of PFXNZ within the company’s funding mix, alongside revolving credit borrowings.

Regulatory reporting and transparency

PhenixFIN Corporation regularly reports its financial condition and results of operations through quarterly and annual financial statements and related press releases. These materials include consolidated statements of assets and liabilities and consolidated statements of operations, which detail investment income, expenses, realized and unrealized gains and losses, and net investment income. The company also files current reports on Form 8-K for material events. For example, on August 6, 2025, PhenixFIN filed a Form 8-K noting the issuance of a press release announcing financial results for the quarter ended June 30, 2025, which included information about its capital resources and the 5.25% notes due 2028.

Because PhenixFIN has elected to be regulated as a business development company and as a regulated investment company for tax purposes, it provides detailed periodic disclosures regarding its investment portfolio, leverage, and net asset value. These disclosures give noteholders and prospective investors insight into the issuer’s financial position, performance and use of debt, including the PFXNZ notes.

Relationship between PFXNZ and common equity (PFX)

The PFXNZ notes are issued by the same entity whose common stock trades under the symbol PFX on NASDAQ. In its news releases, PhenixFIN often references both symbols together (NASDAQ: PFX, PFXNZ) when presenting financial results. The consolidated financial statements cover the entire company, so the metrics such as total assets, total liabilities, net assets, and NAV per common share relate to the issuer as a whole. While the notes and common stock represent different positions in the capital structure, they are both tied to the same underlying investment company and its portfolio.

Historical context

PhenixFIN’s disclosures show a history of reporting total investment income, net investment income, and changes in net assets over multiple fiscal years. The company highlights weighted average yields on its debt and other income-producing investments, NAV per share at various quarter-ends, and the fair value and composition of its investment portfolio. It also describes actions such as share repurchases, amendments and upsizing of its credit facility, and the acquisition and merger of The National Security Group, Inc., an Alabama-based insurance holding company, which was completed on October 1, 2024 and later referenced as a merger and reorganization.

All of these elements form part of the financial environment in which the 5.25% Notes due 2028 (PFXNZ) exist. Investors analyzing PFXNZ typically review the issuer’s periodic financial statements, capital resources disclosures, and NAV information to understand the company’s leverage, asset coverage and overall financial profile as reported by PhenixFIN.