PennantPark Investment Corporation Announces Financial Results for a Fourth Quarter and Fiscal Year Ended Sep 30, 2020

NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) — PennantPark Investment Corporation (NASDAQ: PNNT) announced now financial formula for a fourth entertain and mercantile year finished Sep 30, 2020.

HIGHLIGHTS
Quarter finished Sep 30, 2020
($ in millions, solely per share amounts)

____________

(1)

Includes investments in PennantPark Senior Loan Fund, LLC, or PSLF, an unconsolidated corner venture, totaling $99.3 million, during satisfactory value.

(2)

This is a non-GAAP financial measure. The Company believes that this series provides useful information to investors and government since it reflects a Company’s financial opening incompatible a impact of a $17.0 million unrealized detriment on a multi-currency, comparison cumulative revolving credit trickery with Truist Bank, as amended, or a Truist Credit Facility, and, together with a credit trickery with BNP Paribas, as amended, a Credit Facilities. The display of this additional information is not meant to be deliberate in siege or as a surrogate for financial formula prepared in suitability with GAAP.

(3)

This is a non-GAAP financial measure. The Company believes that this series provides useful information to investors and government since it reflects a Company’s financial opening net of $25.8 million of money and equivalents. The display of this additional information is not meant to be deliberate in siege or as a surrogate for financial formula prepared in suitability with GAAP.

(4)

This is a non-GAAP financial measure. The Company believes that this series provides useful information to investors and government since it reflects a Company’s financial opening including a impact of a $17.0 million unrealized detriment on a Truist Credit Facility, Small Business Act, or SBA, Debentures and net of $25.8 million of money and equivalents. The display of this additional information is not meant to be deliberate in siege or as a surrogate for financial formula prepared in suitability with GAAP.

(5)

Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and government since it reflects a Company’s financial opening incompatible $2.2 million of waste compared to a PSLF transaction. The display of this additional information is not meant to be deliberate in siege or as a surrogate for financial formula prepared in suitability with GAAP.

CONFERENCE CALL AT 10:00 A.M. EST ON NOVEMBER 20, 2020

PennantPark Investment Corporation (“we,” “our,” “us” or a “Company”) will horde a discussion call during 10:00 a.m. (Eastern Standard Time) on Friday, Nov 20, 2020 to plead a financial results. All meddlesome parties are acquire to participate. You can entrance a discussion call by dialing toll-free (866) 548-4713 approximately 5-10 mins before to a call. International callers should dial (323) 794-2093. All callers should anxiety discussion ID #2765446 or PennantPark Investment Corporation. An archived replay of a call will be accessible by Dec 4, 2020 by job toll-free (888) 203-1112. International callers greatfully dial (719) 457-0820. For all phone replays, greatfully anxiety discussion ID #2765446.

INCENTIVE FEE WAIVER EXTENSION

We have concluded, in conference with a board, to extend a inducement cost waiver for an additional entertain by Dec 31, 2020.

PORTFOLIO AND INVESTMENT ACTIVITY

“We are gratified with a plain opening of a portfolio by a severe mercantile conditions of a final few quarters,” pronounced Arthur Penn, Chairman and CEO. “We are quite gratified with a upsizing of a PSLF JV with Pantheon as good as estimable equity positions in several high expansion companies that are solidifying and bolstering NAV.”

As of Sep 30, 2020, a portfolio totaled $1,081.8 million and consisted of $439.0 million of initial garnishment cumulative debt, $220.8 million of second garnishment cumulative debt, $113.6 million of subordinated debt (including $63.0 million in PSLF) and $308.3 million of elite and common equity (including $36.3 million in PSLF). Our debt portfolio consisted of 93% variable-rate investments. As of Sep 30, 2020, we had dual portfolio companies on non-accrual, representing 4.9% and 3.4% of a altogether portfolio on a cost and satisfactory value basis, respectively. Overall, a portfolio had net unrealized debasement of $83.8 million as of Sep 30, 2020. Our altogether portfolio consisted of 80 companies with an normal investment distance of $13.5 million, had a weighted normal produce on seductiveness temperament debt investments of 8.9% and was invested 41% in initial garnishment cumulative debt, 20% in second garnishment cumulative debt, 10% in subordinated debt (including 6% in PSLF) and 29% in elite and common equity (including 3% in PSLF). As of Sep 30, 2020, all of a investments hold by PSLF were initial garnishment cumulative debt. For some-more information on how a COVID-19 pestilence has influenced a business and formula of operations, see a Annual Report on Form 10-K for a mercantile year finished Sep 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

As of Sep 30, 2019, a portfolio totaled $1,219.4 million and consisted of $695.3 million of initial garnishment cumulative debt, $269.3 million of second garnishment cumulative debt, $61.2 million of subordinated debt and $193.7 million of elite and common equity. Our debt portfolio consisted of 87% variable-rate investments and 13% fixed-rate investments. As of Sep 30, 2019, we had no portfolio companies on non-accrual. Overall, a portfolio had net unrealized debasement of $37.6 million as of Sep 30, 2019. Our altogether portfolio consisted of 67 companies with an normal investment distance of $18.2 million, had a weighted normal produce on seductiveness temperament debt investments of 9.8% and was invested 57% in initial garnishment cumulative debt, 22% in second garnishment cumulative debt, 5% in subordinated debt and 16% in elite and common equity.

For a 3 months finished Sep 30, 2020, we invested $27.1 million in 3 new and 7 existent portfolio companies with a weighted normal produce on debt investments of 7.0%. Sales and repayments of investments for a same duration totaled $48.6 million. This compares to a 3 months finished Sep 30, 2019, in that we invested $38.8 million in 3 new and 11 existent portfolio companies with a weighted normal produce on debt investments of 8.4%. Sales and repayments of investments for a same duration totaled $100.9 million.

For a year finished Sep 30, 2020, we invested $319.3 million in 25 new and 58 existent portfolio companies with a weighted normal produce on debt investments of 8.4%. Sales and repayments of investments for a same duration totaled $162.7 million.

For a year finished Sep 30, 2019, we invested $533.6 million in 24 new and 49 existent portfolio companies with a weighted normal produce on debt investments of 9.4%. Sales and repayments of investments for a same duration totaled $426.5 million.

PennantPark Senior Loan Fund, LLC

As of Sep 30, 2020, PSLF’s portfolio totaled $353.4 million, consisted of 37 companies with an normal investment distance of $9.6 million and had a weighted normal produce on debt investments of 7.3%.

For a duration finished Jul 31, 2020 (inception) by Sep 30, 2020, PSLF invested $5.7 million in one new portfolio association with a weighted normal produce on debt investments of 7.5%. PSLF’s sales and repayments of investments for a same duration totaled $11.1 million.

RECENT DEVELOPMENTS

Effective Oct 31, 2020, certain entities and managed accounts of a private credit investment manager of Pantheon Ventures (UK) LLP, or Pantheon, a joint-venture partner, contributed an additional $27.5 million to PSLF, bringing their sum grant to $62.5 million. Pantheon’s additional investment came in during a afterwards stream net item value. At a same time, a Company has also invested an additional $1.8 million in PSLF. As a result, a Company now owns 60.5% of a corner venture. Additionally, in tie with this transaction, BNP Paribas has increasing a distance of PSLF’s credit trickery from $250.0 million to $275.0 million.

Subsequent to Sep 30, 2020, a portfolio company, Cano Health, LLC (ITC Rumba, LLC), entered into a business multiple agreement with Jaws Acquisition Corp (“JWS”), a special purpose merger vehicle, and other parties, theme to certain shutting conditions, with an approaching shutting late initial entertain or early second entertain 2021. Based on a shutting batch cost of JWS on Nov 13, 2020, a $18.8 million common batch satisfactory gratefulness as of Sep 30, 2020 would boost to an estimated $72.3 million, that includes a multiple of money and stock, presumption a transaction closes formed on a concluded terms. This would paint a net item value boost of $0.80 per share, as of Nov 13, 2020. Our shares are owned by a singular partnership tranquil by a financial unite and are theme to prevalent close adult restrictions. As a result, a satisfactory value on Dec 31, 2020, might expected embody an illiquidity bonus not in a open trade values indicated above. There can be no declaration that a pragmatic value of a equity seductiveness will be deputy of a value eventually satisfied on a equity investment.

RESULTS OF OPERATIONS

Set onward next are a formula of operations for a years finished Sep 30, 2020 and 2019.

Investment Income

Investment income for a 3 months finished Sep 30, 2020 and 2019 was $21.3 million and $27.9 million, respectively, and was essentially attributable to $12.3 million and $17.0 million from initial garnishment cumulative debt, $5.3 million and $8.7 million from second garnishment cumulative debt and $3.7 million and $2.2 million from subordinated debt and elite and common equity, respectively.

Investment income for a years finished Sep 30, 2020 and 2019 was $100.2 million and $112.1 million, respectively, and was attributable to $63.4 million and $62.6 million from initial garnishment cumulative debt, $25.9 million and $41.4 million from second garnishment cumulative debt and $10.9 million and $8.1 million from subordinated debt and elite and common equity, respectively. The boost in investment income over a before year was essentially due to an boost in a portfolio during cost.

Expenses

Net waste for a 3 months finished Sep 30, 2020 and 2019 totaled $14.0 million and $18.3 million, respectively. Base government cost totaled $4.4 million and $4.6 million, debt compared seductiveness and other financing costs totaled $8.2 million (including one-time costs of $2.2 million compared with a PSLF transaction) and $12.2 million (including one-time debt compared costs of $4.4 million), ubiquitous and executive waste totaled $1.2 million and $1.2 million and sustenance for taxes totaled $0.3 million and $0.3 million, respectively, for a same periods.

Net waste for a years finished Sep 30, 2020 and 2019 totaled $61.5 million and $67.5 million, respectively. Base government cost totaled $18.6 million and $18.2 million, inducement cost totaled $2.7 million (after an inducement cost waiver of $1.9 million) and $5.1 million, debt compared seductiveness and other financing waste totaled $34.4 million (including one-time costs of $2.2 million compared with a PSLF transaction) and $38.2 million (including one-time debt compared costs of $9.2 million), ubiquitous and executive waste totaled $4.7 million and $4.7 million and sustenance for taxes totaled $1.2 million and $1.2 million, respectively, for a same periods. The diminution in waste over a before year was essentially due to a diminution in debt compared waste as good as a inducement cost waiver.

Net Investment Income

Net investment income totaled $7.3 million, or $0.11 per share, and $9.6 million, or $0.14 per share, for a 3 months finished Sep 30, 2020 and 2019, respectively.

Net investment income totaled $38.7 million, or $0.58 per share, and $44.6 million, or $0.66 per share, for a years finished Sep 30, 2020 and 2019, respectively. The diminution in net investment income per share compared to a before year was essentially due to a diminution in LIBOR.

Net Realized Gains or Losses

Sales and repayments of investments for a 3 months finished Sep 30, 2020 and 2019 totaled $48.6 million and $100.9 million, respectively, and net satisfied waste totaled $10.1 million and $18.4 million, respectively, for a same periods.

Sales and repayments of investments for a years finished Sep 30, 2020 and 2019 totaled $162.7 million and $426.5 million, respectively, and net satisfied waste totaled $20.8 million and $108.5 million, respectively. The change in satisfied gains/losses was essentially due to changes in a marketplace conditions of a investments and a values during that they were realized, including a net satisfied detriment on Superior Digital Displays, LLC during a year finished Sep 30, 2019.

Unrealized Appreciation or Depreciation on Investments, Credit Facilities, and a 2019 Notes

For a 3 months finished Sep 30, 2020 and 2019, we reported a net change in unrealized appreciation on investments of $21.3 million and $21.2 million, respectively. For a years finished Sep 30, 2020 and 2019, we reported net change in unrealized (depreciation) appreciation on investments of ($46.2) million and $74.1 million, respectively. As of Sep 30, 2020 and 2019, a net unrealized debasement on investments totaled $83.8 million and $37.6 million, respectively. The net change in unrealized appreciation/depreciation on a investments for a year finished Sep 30, 2020 compared to a before year was essentially due to changes in a collateral marketplace conditions as good as a financial opening of certain portfolio companies essentially driven by a marketplace intrusion caused by a COVID-19 pestilence and a doubt surrounding a continued inauspicious mercantile impact. For some-more information on how a COVID-19 pestilence has influenced a business and formula of operations, see a Annual Report on Form 10-K for a mercantile year finished Sep 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

For a 3 months finished Sep 30, 2020 and 2019, a Credit Facilities had a net change in unrealized appreciation of $9.0 million and $4.2 million, respectively. For a years finished Sep 30, 2020 and 2019, a Credit Facilities and a 4.5% records due 2019, or a 2019 Notes, had a net change in unrealized debasement of $12.3 million and $5.7 million, respectively. As of Sep 30, 2020 and 2019, a net unrealized debasement on a Credit Facilities and, before to their redemption, a 2019 Notes totaled $19.6 million and $7.2 million, respectively. The net change in unrealized debasement for a year finished Sep 30, 2020 compared to a before year was essentially due to changes in a collateral markets.

Net Change in Net Assets Resulting from Operations

Net change in net resources ensuing from operations totaled $9.5 million, or $0.14 per share, and $8.2 million, or $0.13 per share, for a 3 months finished Sep 30, 2020 and 2019, respectively.

Net change in net resources ensuing from operations totaled ($16.0) million, or ($0.24) per share, and $15.9 million, or $0.24 per share, for a years finished Sep 30, 2020 and 2019, respectively. The diminution in net resources from operations for a year finished Sep 30, 2020 compared to a before year was essentially due to debasement of a portfolio essentially driven by a marketplace intrusion caused by a COVID-19 pestilence and a doubt surrounding a continued inauspicious mercantile impact. For some-more information on how a COVID-19 pestilence has influenced a business and formula of operations, see a Annual Report on Form 10-K for a mercantile year finished Sep 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and collateral resources are subsequent essentially from deduction of bonds offerings, debt collateral and money flows from operations, including investment sales and repayments, and income earned. Our primary use of supports from operations includes investments in portfolio companies and payments of fees and other handling waste we incur. We have used, and design to continue to use, a debt capital, deduction from a revolution of a portfolio and deduction from open and private offerings of bonds to financial a investment objectives. For some-more information on how a COVID-19 pestilence might impact a ability to approve with a covenants of a Credit Facilities, see a Company’s Annual Report on Form 10-K for a mercantile year finished Sep 30, 2020, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – COVID-19 Developments” and “Item 1A. Risk Factors” therein.

The annualized weighted normal cost of debt for a years finished Sep 30, 2020 and 2019, thorough of a cost on a undrawn joining and amendment costs on a Credit Facilities, amortized upfront fees on SBA debentures and debt retirement and distribution costs, was 4.0% and 6.0%, respectively. As of Sep 30, 2020 and 2019, we had $86.7 million and $173.4 million of new borrowing ability underneath a Truist Credit Facility, respectively, theme to precedence and borrowing bottom restrictions.

As of Sep 30, 2020 and 2019, we had $388.3 million and $301.6 million, respectively, in superb borrowings underneath a Truist Credit Facility. The Truist Credit Facility had a weighted normal seductiveness rate of 2.5% and 4.2%, respectively, disdainful of a cost on undrawn commitment, as of Sep 30, 2020 and 2019.

As of Sep 30, 2020 and 2019, we had money and money equivalents of $25.8 million and $59.5 million, respectively, accessible for investing and ubiquitous corporate purposes. We trust a liquidity and collateral resources are sufficient to take advantage of marketplace opportunities.

Our handling activities used money of $129.6 million for a year finished Sep 30, 2020, and a financing activities supposing money of $95.8 million for a same period. Our handling activities used money essentially for a investment activities and a financing activities supposing money essentially for net borrowings underneath a Credit Facilities.

Our handling activities supposing money of $81.1 million for a year finished Sep 30, 2019, and a financing activities supposing money of $121.1 million for a same period. Our handling activities supposing money from sales and repayments on a investments and a financing activities supposing money essentially for net borrowings underneath a Credit Facilities as good as a distribution of a 5.5% records due 2024, partially equivalent by money used by a batch repurchase program.

DISTRIBUTIONS

During a year finished Sep 30, 2020 and 2019, we announced distributions of $0.60 and $0.72 per share, for sum distributions of $40.2 million and $48.4 million, respectively. We guard accessible net investment income to establish if a lapse of collateral for taxation functions might start for a mercantile year. To a border a taxable gain tumble next a sum volume of a distributions for any given mercantile year, stockholders will be told of a apportionment of those distributions deemed to be a taxation lapse of capital. Tax characteristics of all distributions will be reported to stockholders theme to information stating on Form 1099-DIV after a finish of any calendar year and in a periodic reports filed with a Securities and Exchange Commission, or a SEC.

AVAILABLE INFORMATION

The Company creates accessible on a website a annual news on Form 10-K filed with a SEC and stockholders might find a news on a website during www.pennantpark.com.



PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES



PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

ABOUT PENNANTPARK INVESTMENT CORPORATION

PennantPark Investment Corporation is a business growth association that invests essentially in U.S. middle-market companies in a form of initial garnishment cumulative debt, second garnishment cumulative 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 heading center marketplace credit platform, that now has some-more than $3.5 billion of resources underneath management. Since a pregnancy in 2007, PennantPark Investment Advisers, LLC has supposing investors entrance to center marketplace credit by charity private equity firms and their portfolio companies as good as other middle-market borrowers a extensive operation of artistic and stretchable 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 recover might enclose “forward-looking statements” within a definition of a Private Securities Litigation Reform Act of 1995. You should know that underneath Section 27A(b)(2)(B) of a Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of a Securities Exchange Act of 1934, as amended, or a Exchange Act, a “safe harbor” supplies of a Private Securities Litigation Reform Act of 1995 do not request to forward-looking statements done in periodic reports we record underneath a Exchange Act. All statements other than statements of chronological contribution enclosed in this press recover are forward-looking statements and are not guarantees of destiny opening or results, and engage a series of risks and uncertainties. Actual formula might differ materially from those in a forward-looking statements as a outcome of a series of factors, including those described from time to time in filings with a SEC as good as changes in a economy and risks compared with probable intrusion in a Company’s operations or a economy generally due to terrorism, healthy disasters or pandemics such as COVID-19. The Company undertakes no avocation to refurbish any forward-looking matter done herein. You should not place undue change on such forward-looking statements as such statements pronounce usually as of a date on that they are made.

We might use difference such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and identical expressions to brand forward-looking statements. Such statements are formed on now accessible operating, financial and rival information and are theme to several risks and uncertainties that could means tangible formula to differ materially from a chronological knowledge and a benefaction expectations.

CONTACT:
Aviv Efrat
PennantPark Investment Corporation
(212) 905-1000
www.pennantpark.com

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