PennantPark Investment Corporation Announces Financial Results for the Quarter Ended December 31, 2024

Core Viewpoint - PennantPark Investment Corporation reported its financial results for the first quarter ended December 31, 2024, highlighting a stable net asset value and strong investment performance despite a slight decrease in net investment income compared to the previous year [1][2][6]. Financial Highlights - The investment portfolio totaled $1,298.1 million, with net assets of $494.3 million and a GAAP net asset value per share of $7.57, reflecting a quarterly increase of 0.1% [2][31]. - Net investment income for the quarter was $13.0 million, or $0.20 per share, down from $15.7 million, or $0.24 per share, in the same quarter of the previous year [16][32]. - Total investment income was $34.2 million, slightly lower than $34.3 million in the prior year, primarily due to changes in the portfolio and investment yields [14][32]. Portfolio Activity - The company made purchases of investments totaling $295.7 million and sales and repayments of investments amounting to $353.7 million during the quarter [8][11]. - The portfolio consisted of 158 companies with an average investment size of $7.4 million, and the weighted average yield on interest-bearing debt investments was 12.0% [6][10]. Investment Income and Expenses - Investment income was derived from various sources, including $25.2 million from first lien secured debt and $5.9 million from other investments [14][32]. - Total expenses for the quarter were $21.2 million, an increase from $18.7 million in the previous year, mainly due to higher debt-related interest and expenses [15][32]. Net Realized and Unrealized Gains - The company reported net realized losses of $(2.6) million for the quarter, compared to a gain of $1.8 million in the same period last year [17][32]. - There was a net change in unrealized appreciation of $2.4 million, leading to total net unrealized appreciation of $13.6 million as of December 31, 2024 [18][32]. Liquidity and Capital Resources - As of December 31, 2024, the company had $464.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 6.8% [23][24]. - Cash and cash equivalents available for investing and corporate purposes were $55.9 million [24][32]. Distributions - The company declared distributions of $0.24 per share for a total of $15.7 million during the quarter, an increase from $0.21 per share totaling $13.7 million in the previous year [27][32]. Recent Developments - The Truist Credit Facility was upsized to $500.0 million from $475 million in February 2025, enhancing the company's liquidity position [28].