Core Points - PennantPark Investment Corporation held its Q3 2025 earnings conference call on August 12, 2025, with key participants including the CEO and CFO [1][2][3] - The call was initiated by the CEO, Arthur Howard Penn, who welcomed participants and introduced the CFO for further disclosures [3][4] Company Information - The conference call was recorded and is considered the property of PennantPark Investment Corporation, with an audio replay available on the company's website [4] - The CFO, Richard Thomas Allorto, provided general information about the call and mentioned the customary safe harbor disclosure regarding forward-looking statements [4][5]

Financial Data and Key Metrics Changes - For the quarter ended June 30, core net investment income was $0.18 per share, compared to total distributions of $0.24 per share [5][17] - As of June 30, net asset value (NAV) was $7.36 per share, down 1.6% from $7.48 per share in the prior quarter [18] - The debt to equity ratio was 1.3 times as of June 30 [18] Business Line Data and Key Metrics Changes - The portfolio consisted of 158 companies across 37 different industries, with a weighted average yield on debt investments of 11.5% [19] - The portfolio's weighted average leverage ratio was 4.7 times, and the interest coverage ratio was 2.5 times [19] - The company invested $88 million in four new and 28 existing portfolio companies at a weighted average yield of 10% during the quarter [14] Market Data and Key Metrics Changes - In the core middle market, pricing for first lien term loans was between $4.75 to $5.25 for high-quality assets [7] - The weighted average debt to EBITDA for new investments was 3.8 times, with an interest coverage of 2.6 times [7][33] - The company continues to see attractive investments in the core middle market, characterized by lower leverage and higher spreads compared to the upper middle market [8][10] Company Strategy and Development Direction - The company plans to rotate out of equity positions and redeploy that capital into interest-paying debt investments to increase core net investment income [6] - The focus remains on providing strategic capital to middle market companies in five key sectors: business services, consumer, government services and defense, healthcare, and software and technology [10] - The company aims to deliver compelling risk-adjusted returns through stable income generation and long-term capital preservation [16] Management's Comments on Operating Environment and Future Outlook - Management is encouraged by a resurgence in deal activity, anticipating increased loan originations and potential exits from equity positions [5] - The company expects significant progress in equity rotation over the next twelve to eighteen months, depending on market conditions [22][29] - Management remains optimistic about the credit quality of the portfolio, with a strong track record of generating value from investments [12][13] Other Important Information - The company has a significant balance of spillover income of $55 million, or $0.84 per share, which can cover shortfalls in core net investment income [6] - The joint venture (JV) portfolio totaled $1.3 billion as of June 30, contributing significantly to core net investment income [14] - The JV has the capacity to increase its portfolio to $1.6 billion, which is expected to enhance earnings momentum in future quarters [15] Q&A Session Summary Question: What is the timeline for selling a portion of the equity portfolio and reinvesting that capital? - Management anticipates significant progress in rotating out of equity positions over the next twelve to eighteen months, aiming to reinvest capital into yields to generate healthy net investment income for shareholders [22][24] Question: What is the expectation for leverage once a meaningful portion of the equity portfolio is rotated into first lien loans? - Management indicated that a heavier first lien portfolio could judiciously handle a bit more leverage, suggesting that leverage targets may move higher [25][26] Question: At what point would the company evaluate the dividend concerning spillover income? - Management stated that once the portfolio normalizes, they would assess the sustainability of the dividend based on the remaining spillover income [29][30] Question: How is the competitive environment in the middle market affecting pricing and covenants? - Management noted that competition remains rational in the core middle market, with continued access to covenants and monthly financial statements, which helps in maintaining a strong underwriting process [49][51] Question: What is the outlook for the joint venture and its optimization? - Management believes that the JV can be fully optimized in the next six to nine months, with potential for further growth [44][45]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q COMMISSION FILE NUMBER: 814-00736 PENNANTPARK INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's financial position as of June 30, 2025, shows a portfolio of $1.1716 billion and net assets of $480.6 million, with a quarterly decrease in NAV per share | Metric | June 30, 2025 | | :--- | :--- | | **Assets and Liabilities:** | | | Investment Portfolio | $1.1716 billion | | Net Assets | $480.6 million | | Net Asset Value per Share | $7.36 | | Quarterly Change in NAV per Share | -1.6% | | Weighted Average Yield on Debt Investments | 11.5% | | **Operating Performance:** | | | Net Investment Income | $11.8 million | | Net Investment Income per Share | $0.18 | | Core Net Investment Income per Share | $0.18 | | Declared Dividends per Share | $0.24 | | **Portfolio Activity:** | | | Investment Purchases | $87.7 million | | Investment Sales and Repayments | $132.2 million | [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) This section details the company's investment strategy, portfolio composition, quality, and recent investment activities, including the PennantPark Senior Loan Fund [Management Commentary](index=2&type=section&id=Management%20Commentary) The company's management is encouraged by the recovery in recent transaction activity, anticipating increased new loan originations and potential equity exits, while strategically rotating equity into debt to boost core net investment income - The company's strategic focus is to rotate equity positions into debt investments to drive growth in **Core Net Investment Income (Core NII)**[6](index=6&type=chunk) - Management will continue to utilize substantial **spillover income** to cover any shortfalls between Core Net Investment Income and dividends[6](index=6&type=chunk) [Portfolio Composition and Quality](index=2&type=section&id=Portfolio%20Composition%20and%20Quality) As of June 30, 2025, the total investment portfolio decreased to $1.1716 billion, with a shift from first lien secured debt to preferred and common equity, and an increase in non-accrual companies Portfolio Composition | Portfolio Composition | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investment Portfolio | $1.1716 billion | $1.3281 billion | | First Lien Secured Debt | 41% | 50% | | Second Lien Secured Debt | 1% | 5% | | Subordinated Debt | 16% | 14% | | Preferred and Common Equity | 31% | 23% | | U.S. Government Securities | 11% | 8% | Portfolio Quality Metrics | Portfolio Quality Metrics | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Weighted Average Yield on Debt Investments | 11.5% | 12.3% | | Number of Non-Accrual Companies | 4 | 2 | | Non-Accrual Investments (Fair Value % of Total Portfolio) | 0.7% | 2.3% | | Total Portfolio Companies | 158 | 152 | [Investment Activity](index=2&type=section&id=Investment%20Activity) Investment activity for the three and nine months ended June 30, 2025, shows a decrease in investments made and an increase in sales and repayments compared to the prior year Investment Activity (Three Months Ended June 30) | Investment Activity (Three Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $87.7 million | $163.1 million | | Sales and Repayments | $132.2 million | $132.9 million | | Weighted Average Yield on New Investments | 10.0% | 12.0% | Investment Activity (Nine Months Ended June 30) | Investment Activity (Nine Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $560.2 million | $752.1 million | | Sales and Repayments | $749.0 million | $380.1 million | [PennantPark Senior Loan Fund (PSLF)](index=2&type=section&id=PennantPark%20Senior%20Loan%20Fund%20(PSLF)) The PSLF's total investment portfolio increased to $1.3391 billion as of June 30, 2025, despite a decrease in investments made and an increase in sales and repayments during the quarter PSLF Portfolio Overview | PSLF Portfolio Overview | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investment Portfolio | $1.3391 billion | $1.0312 billion | | Number of Companies | 115 | 102 | | Average Investment Size | $11.6 million | $10.1 million | | Weighted Average Yield on Debt Investments | 10.4% | 11.3% | PSLF Investment Activity (Three Months Ended June 30) | PSLF Investment Activity (Three Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $22.0 million | $56.0 million | | Sales and Repayments | $71.4 million | $54.9 million | [Results of Operations](index=3&type=section&id=Results%20of%20Operations) This section analyzes the company's investment income, expenses, net investment income, and realized and unrealized gains/losses, culminating in the net change in net assets from operations [Investment Income](index=3&type=section&id=Investment%20Income) Investment income for the three and nine months ended June 30, 2025, decreased year-over-year, primarily due to a smaller investment portfolio and a lower weighted average yield on debt investments Investment Income (Millions of Dollars) | Investment Income (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | 2025 Fiscal Year | $29.6 | $94.4 | | 2024 Fiscal Year | $37.0 | $107.3 | - The year-over-year decrease in investment income is primarily due to a smaller total investment portfolio and a lower weighted average yield on debt investments[15](index=15&type=chunk) [Expenses](index=3&type=section&id=Expenses) Total expenses for the three and nine months ended June 30, 2025, decreased year-over-year, mainly driven by reduced debt-related interest and fees, and lower incentive fees Total Expenses (Millions of Dollars) | Total Expenses (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | 2025 Fiscal Year | $17.8 | $58.2 | | 2024 Fiscal Year | $21.3 | $61.7 | - The year-over-year decrease in expenses is primarily due to reduced debt-related interest and fees and lower incentive fees[16](index=16&type=chunk) [Net Investment Income](index=3&type=section&id=Net%20Investment%20Income) Net investment income for the three months ended June 30, 2025, was $11.8 million ($0.18 per share), a decrease from the prior year, mainly due to lower investment income partially offset by reduced expenses Net Investment Income | Net Investment Income | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Total | $11.8 million | $36.2 million | | Per Share | $0.18 | $0.55 | | **2024 Fiscal Year** | | | | Total | $15.7 million | $45.7 million | | Per Share | $0.24 | $0.70 | [Realized and Unrealized Gains/Losses](index=3&type=section&id=Realized%20and%20Unrealized%20Gains%2FLosses) For the three months ended June 30, 2025, the company reported net realized losses of $0.5 million and net unrealized losses of $0.2 million, with cumulative net unrealized appreciation of $40.4 million in the portfolio Gains/Losses Summary (Millions of Dollars) | Gains/Losses Summary (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Net Realized Gains (Losses) | $(0.5) million | $(30.8) million | | Net Change in Unrealized Appreciation (Depreciation) | $(0.2) million | $29.3 million | | **2024 Fiscal Year** | | | | Net Realized Gains (Losses) | $(6.9) million | $(36.1) million | | Net Change in Unrealized Appreciation (Depreciation) | $(5.1) million | $23.2 million | - As of June 30, 2025, the investment portfolio had cumulative net unrealized appreciation of **$40.4 million**, compared to **$11.2 million** as of September 30, 2024[20](index=20&type=chunk) [Net Change in Net Assets](index=4&type=section&id=Net%20Change%20in%20Net%20Assets) The net increase in net assets from operations for the three months ended June 30, 2025, was $8.2 million ($0.12 per share), an increase from the prior year, with a similar trend for the nine-month period Net Increase (Decrease) in Net Assets Resulting from Operations | Net Increase (Decrease) in Net Assets Resulting from Operations | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Total | $8.2 million | $33.7 million | | Per Share | $0.12 | $0.52 | | **2024 Fiscal Year** | | | | Total | $3.7 million | $30.5 million | | Per Share | $0.06 | $0.47 | [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily derived from operating cash flow, investment sales, and debt financing, with a notable shift in cash flow dynamics compared to the prior year - The company's liquidity and capital resources primarily stem from cash flow from operations, proceeds from investment sales and repayments, securities offerings, and debt financing[23](index=23&type=chunk) Key Liquidity Metrics | Key Liquidity Metrics | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Truist Credit Facility Outstanding Borrowings | $316.5 million | $461.5 million | | Truist Credit Facility Available Capacity | $183.5 million | $13.5 million | | Cash and Cash Equivalents | $70.5 million | $49.9 million | - For the nine months ended June 30, 2025, operating activities provided **$212.6 million** in cash, while financing activities used **$192.0 million**, primarily for credit repayments and dividend payments, a reversal from the prior year's cash flow dynamics[26](index=26&type=chunk)[27](index=27&type=chunk) [Distributions and Recent Developments](index=5&type=section&id=Distributions%20and%20Recent%20Developments) This section outlines the company's declared dividends for the quarter and future months, alongside a recent successful refinancing of its CLO VII subsidiary [Distributions](index=5&type=section&id=Distributions) For the three months ended June 30, 2025, the company declared dividends of $0.24 per share, an increase from the prior year, and announced future monthly dividends of $0.08 per share Declared Dividends | Declared Dividends | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Per Share | $0.24 | $0.72 | | Total | $15.7 million | $47.0 million | | **2024 Fiscal Year** | | | | Per Share | $0.22 | $0.64 | | Total | $14.4 million | $41.8 million | Future Dividend Declarations | Future Dividend Declarations | | | | :--- | :--- | :--- | | Record Date | Payment Date | Dividend Per Share | | August 15, 2025 | September 2, 2025 | $0.08 | | September 15, 2025 | September 30, 2025 | $0.08 | [Recent Developments](index=5&type=section&id=Recent%20Developments) In July 2025, PSLF's subsidiary, PennantPark CLO VII, LLC, successfully refinanced $300 million of its debt, reducing its weighted average cost of capital from SOFR+3.31% to SOFR+2.63% - In July 2025, PSLF's subsidiary CLO VII successfully refinanced, reducing its weighted average cost of capital from **SOFR+3.31%** to **SOFR+2.63%**[29](index=29&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of assets and liabilities and consolidated statements of operations, highlighting key financial positions and performance metrics [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets were $1.2529 billion, total liabilities were $772.3 million, and net assets were $480.6 million, with a decrease in NAV per share from $7.56 to $7.36 Key Balance Sheet Items (Millions of Dollars) | Key Balance Sheet Items (Millions of Dollars) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investments (Fair Value) | $1,171.6 | $1,328.1 | | Cash and Cash Equivalents | $70.5 | $49.9 | | **Total Assets** | **$1,252.9** | **$1,389.1** | | **Total Liabilities** | **$772.3** | **$895.2** | | **Total Net Assets** | **$480.6** | **$493.9** | | **Net Asset Value Per Share** | **$7.36** | **$7.56** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total investment income was $29.6 million, net investment income was $11.8 million, and the net increase in net assets from operations was $8.2 million Key Operating Statement Items (Millions of Dollars) | Key Operating Statement Items (Millions of Dollars) | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | | :--- | :--- | :--- | | Total Investment Income | $29.6 | $37.0 | | Net Expenses | $17.8 | $21.3 | | **Net Investment Income** | **$11.8** | **$15.7** | | Net Realized and Unrealized Gains (Losses) on Investments and Debt | $(3.6) | $(12.0) | | **Net Increase (Decrease) in Net Assets Resulting from Operations** | **$8.2** | **$3.7** |

Core Insights - PennantPark Investment Corporation reported its financial results for the third quarter ended June 30, 2025, highlighting a decrease in net asset value per share and net investment income compared to the previous year [1][16][21]. Financial Highlights - The investment portfolio totaled $1,171.6 million, with net assets of $480.6 million and a net asset value per share of $7.36, reflecting a quarterly change of -1.6% [2]. - Net investment income for the quarter was $11.8 million, or $0.18 per share, down from $15.7 million, or $0.24 per share, in the same quarter of 2024 [16][27]. - Total investment income for the quarter was $29.6 million, a decrease from $37.0 million in the prior year [14][36]. - Total expenses for the quarter were $17.8 million, down from $21.3 million in the same quarter of 2024 [15][36]. Portfolio Activity - The company made purchases of investments totaling $87.7 million and sales and repayments of investments totaling $132.2 million during the quarter [7]. - As of June 30, 2025, the portfolio consisted of 158 companies with an average investment size of $6.6 million, and a weighted average yield on debt investments of 11.5% [5][19]. Debt and Liquidity - The company had outstanding borrowings of $316.4 million under the Truist Credit Facility, with a weighted average interest rate of 6.7% [23]. - Cash and cash equivalents amounted to $70.5 million as of June 30, 2025, available for investing and general corporate purposes [24]. Distributions - Distributions declared during the quarter were $0.24 per share, totaling $15.7 million, compared to $0.22 per share, totaling $14.4 million in the same quarter of 2024 [27][28]. Recent Developments - In July 2025, the company refinanced its $300 million debt securitization, resulting in a decrease in the weighted average cost of capital from SOFR+3.31% to SOFR+2.63% [29].

MIAMI, July 23, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the “Company”) (NYSE: PNNT) today announced that PennantPark Senior Loan Fund, LLC (“PSLF”) through PSLF’s wholly-owned and consolidated subsidiary, PennantPark CLO VII, LLC (“CLO VII”) has closed the partial refinancing of its $300 million debt securitization. The partial refinancing of this securitization (the “Debt”) impacted the following tranches: ClassPar Amount($ in millions)CouponExpected Rating(S&P)Issuance PriceB-R Loans$ ...

MIAMI, July 14, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the "Company") (NYSE: PNNT) declares its monthly distribution for August 2025 of $0.08 per share, payable on September 2, 2025 to stockholders of record as of August 15, 2025 and declares its monthly distribution for September 2025 of $0.08 per share, payable on September 30, 2025 to stockholders of record as of September 15, 2025. The distributions are expected to be paid from taxable net investment income. The final specific tax ...

PennantPark Investment Corporation Overview - PennantPark is an independent private credit platform with a core middle market focus[2] - The platform has deployed over $26 billion in capital since inception[2] - As of March 31, 2025, PennantPark has $10 billion of AUM[2] - The company has a team of 80 members across 6 offices[2] Investment Strategy and Portfolio - PennantPark targets profitable, growing, and cash-flowing companies with $10 million to $50 million of EBITDA[8] - The company actively covers 770+ middle market PE sponsors in the U S[10] - PennantPark has closed deals with 240+ PE sponsors, with the majority being repeat transactions[10] - The company's first lien loans have a cumulative default rate of 3 34% based on capital invested[17] PNNT Performance and Financials - PNNT's market value of investment is $1 2 billion as of March 31, 2025[29, 34] - PNNT reported $11 7 million of Net Investment Income (NII) during the fiscal second quarter[35] - The company's PSLF joint venture has grown to $1 4 billion of assets[35]

MIAMI, July 03, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the "Company") (NYSE: PNNT) announced that it will report results for the third fiscal quarter ended June 30, 2025 on Monday, August 11, 2025 after the close of the financial markets. The Company will also host a conference call at 12:00 p.m. (Eastern Time) on Tuesday, August 12, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 39 ...

Group 1 - Business Development Companies (BDCs) generate revenue by borrowing at low interest rates and lending to higher-risk companies at elevated yields, creating a profit spread [1] - The role of Roberts Berzins includes enhancing the liquidity of pan-Baltic capital markets and developing financing guidelines for state-owned enterprises and affordable housing [1] Group 2 - No relevant content available for this section [2][3]