UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

COMMISSION FILE NUMBER: 814-00736

PENNANTPARK INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

MARYLAND	20-8250744
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1691 Michigan Avenue<br><br>Miami Beach, Florida.	33319
(Address of principal executive offices)	(Zip Code)

(786) 297-9500

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	PNNT	The New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  No .

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes  No .

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No .

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		Accelerated filer	
Non-accelerated filer		Smaller reporting company	
Emerging growth company	

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. 

If securities are registered pursuant to Section (b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. 

Indicate by check mark whether any of these error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No .

The aggregate market value of common stock held by non-affiliates of the Registrant on March 31, 2025 based on the closing price on that date of $7.03 on The New York Stock Exchange was approximately $443.6 million. For the purposes of calculating the aggregate market value of common stock held by non-affiliates, all directors and executive officers of the Registrant have been treated as affiliates. There were 65,296,094 shares of the Registrant’s common stock outstanding as of November 24, 2025. Documents Incorporated by Reference: Portions of the Registrant’s Proxy Statement relating to the Registrant’s 2026 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference into Part III of this Report.

PENNANTPARK INVESTMENT CORPORATION

FORM 10-K

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

PART I
Item 1.	Business		4
Item 1A.	Risk Factors		20
Item 1B.	Unresolved Staff Comments		37
Item 1C.	Cybersecurity	37
Item 2.	Properties		39
Item 3.	Legal Proceedings		39
Item 4.	Mine Safety Disclosures		39
PART II
Item 5.	Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		40
Item 6.	Selected Financial Data		44
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		45
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		60
Item 8.	Consolidated Financial Statements and Supplementary Data		62
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		113
Item 9A.	Controls and Procedures		113
Item 9B.	Other Information		114
Item 9C.	Disclosure Regarding Foreign Jurisdiction that Prevent Inspections		114
PART III
Item 10.	Directors, Executive Officers and Corporate Governance		115
Item 11.	Executive Compensation		115
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		115
Item 13.	Certain Relationships and Related Transactions, and Director Independence		115
Item 14.	Principal Accountant Fees and Services		115
PART IV
Item 15.	Exhibits and Financial Statement Schedules		116
	Signatures		119

our allocation of net proceeds from offering in ways which you may not agree and our inability to invest proceeds from offerings in new investment opportunities, which could negatively affect our financial performance;
tax liabilities resulting from reinvestments in our common stock or from receiving our stock as a distribution;
the measures we have taken to deter takeover attempts, which may adversely impact the price of our common stock;
changes to political, economic or industry conditions or conditions affecting the financial and capital markets that could cause volatility or prolonged disruption of the capital markets and impact the value of our assets;
our cash balances at financial institutions that exceeds federally insured limits and the impact of adverse developments affecting the financial services industry;
the impact of economic sanction laws in the United States and other jurisdictions which may prohibit us and our affiliates from transacting with certain countries, individuals and companies;
potential litigation, whether initiated by shareholders or other parties; and
the impact of global climate change on the operations of our portfolio companies.
We have identified material weaknesses in our internal controls over financial reporting, and we may identify additional material weaknesses in the future or otherwise fail to maintain effective internal controls over financial reporting, which may result in future financial statements containing errors that will be undetected and could impact the operations of our business including our ability to obtain financing, the cost of any financing we obtain or require additional expenditures of resources to comply with applicable requirements.

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition and/or operating results. For a more detailed discussion of the risks that you should consider prior to investing in our securities, see Item “1A. Risk Factors” below.

Item 1. Business

General Business of PennantPark Investment Corporation

PennantPark Investment Corporation is a BDC whose objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments primarily made to U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments.

We believe U.S. middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies. We seek to create a diversified portfolio that includes first lien secured debt, second lien secured debt, subordinated debt and equity investments by investing approximately $10 million to $50 million of capital, on average, in the securities of middle-market companies. We expect this investment size to vary proportionately with the size of our capital base. We use the term “middle-market” to refer to companies with annual revenues between $50 million and $1 billion. The companies in which we invest are typically highly leveraged, and, in most cases, are not rated by national rating agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies. Securities rated below investment grade are often referred to as “leveraged loans,” “high yield” securities or “junk bonds” and are often higher risk compared to debt instruments that are rated above investment grade and have speculative characteristics. Our debt investments may generally range in maturity from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions.

Our investment activity depends on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make. 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.

Organization and Structure of PennantPark Investment Corporation

PennantPark Investment Corporation, a Maryland corporation organized in January 2007, is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. In addition, for federal income tax purposes we have elected to be treated, and intend to qualify annually, as a RIC under the Code.

Funding I, a wholly-owned subsidiary and a special purpose entity of the Company prior to July 31, 2020, was organized in Delaware as a limited liability company in February 2019. We formed Funding I in order to establish the BNP Credit Facility. The Investment Adviser serves as the servicer to Funding I and has irrevocably directed that the management fee owed to it with respect to such services be paid to us so long as the Investment Adviser remains the servicer. This arrangement did not increase our consolidated management fee. The BNP Credit Facility allowed Funding I to borrow up to $250 million at LIBOR (or an alternative risk-free floating interest rate index) plus 260 basis points during the reinvestment period. The BNP Credit Facility was secured by all of the assets held by Funding I. Funding I is no longer a subsidiary of PennantPark Investment as a result of the joint venture described below.

On July 31, 2020, we and certain entities and managed accounts of the private credit investment manager of Pantheon Ventures (UK) LLP (“Pantheon”) entered into a limited liability company agreement to co-manage PSLF, a newly-formed unconsolidated joint venture. In connection with this transaction, we contributed in-kind our formerly wholly-owned subsidiary, Funding I. As a result of this transaction, Funding I became a wholly-owned subsidiary of PSLF and has been deconsolidated from our financial statements. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company.

Our Investment Adviser and Administrator

We utilize the investing experience and contacts of PennantPark Investment Advisers in developing what we believe is an attractive and diversified portfolio. The senior investment professionals of the Investment Adviser have worked together for many years and average over 25 years of experience in the senior lending, mezzanine lending, leveraged finance, distressed debt and private equity businesses. In addition, our senior investment professionals have been involved in originating, structuring, negotiating, managing and monitoring investments in middle-market companies across changing economic and market cycles. We believe this experience and history have resulted in a reputation as a respected partner to financial sponsors, management teams, investment bankers, attorneys and accountants, which provides us with access to substantial investment opportunities across the capital markets. Our Investment Adviser has a rigorous investment approach, which is based upon intensive financial analysis with a focus on capital preservation, diversification and active management. Since our Investment Adviser’s inception in 2007, it has invested through its managed funds $27.2 billion in 738 companies with more than 250 different financial sponsors through its managed funds, which includes investments by the Company totaling $9.6 billion in 402 companies.

Our Administrator has experienced professionals with substantial backgrounds in finance and administration of registered investment companies. In addition to furnishing us with clerical, bookkeeping and record keeping services, the Administrator also oversees our financial records as well as the preparation of our reports to stockholders and reports filed with the Securities and Exchange Commission, or the SEC, and the SBA. The Administrator assists in the determination and publication of our net asset value, or NAV, oversees the preparation and filing of our tax returns, and monitors the payment of our expenses as well as the performance of administrative and professional services rendered to us by others. Furthermore, our Administrator offers, on our behalf, significant managerial assistance to those portfolio companies to which we are required to offer such assistance. See “Risk Factors—Risks Relating to our Business and Structure—There are significant potential conflicts of interest which could impact our investment returns” for more information.

Market Opportunity

We believe that the limited amount of capital available to middle-market companies, coupled with the desire of these companies for flexible sources of capital, creates an attractive investment environment for us.

We believe middle-market companies have faced difficulty raising debt in private markets. From time to time, banks, finance companies, hedge funds and collateralized loan obligation, or CLO, funds have withdrawn, and may again withdraw, capital from the middle-market, resulting in opportunities for alternative funding sources.
We believe middle-market companies have faced difficulty in raising debt through the capital markets. Many middle-market companies look to raise funds by issuing high-yield bonds and broadly syndicated loans. We believe this approach to financing becomes difficult at times when institutional investors seek to invest in larger, more liquid offerings. We believe this has made it harder for middle-market companies to raise funds by issuing high-yield securities from time to time.
We believe that credit market dislocation for middle-market companies improves the risk-reward on our investments. From time to time, market participants have reduced lending to middle-market and non-investment grade borrowers. As a result, we believe there is less competition in our market, more conservative capital structures, higher yields and stronger covenants.
We believe there is a large pool of uninvested private equity capital likely to seek to combine their capital with sources of debt capital to complete private investments. We expect that private equity firms will continue to be active investors in middle-market companies. These private equity funds generally seek to leverage their investments by combining their capital with loans provided by other sources, and we believe that we are well-positioned to partner with such equity investors.
We believe there is substantial supply of opportunities resulting from maturing loans that seek refinancing. We believe that demand for debt financing from middle-market companies will remain strong because these companies will continue to require credit to refinance existing debt, to support growth initiatives and to finance acquisitions. We believe the combination of strong demand by middle-market companies and, from time to time, the reduced supply of credit described above should increase lending opportunities for us. We believe this supply of opportunities coupled with a lack of demand offers attractive risk-reward to investors.

Competitive Advantages

We believe that we have the following competitive advantages over other capital providers to middle-market companies:

a)Experienced Management Team

The senior investment professionals of our Investment Adviser have worked together for many years and average over 25 years of experience in senior lending, mezzanine lending, leveraged finance, distressed debt and private equity businesses. These senior investment professionals have been involved in originating, structuring, negotiating, managing and monitoring investments in middle-market companies across changing economic and market cycles. We believe this extensive experience and history have resulted in a strong reputation across the capital markets.

Lending to middle-market companies requires in-depth diligence, credit expertise, restructuring experience and active portfolio management. For example, lending to middle-market companies in the United States is generally more labor intensive than lending to larger companies due to the smaller size of each investment and the fragmented nature of the information available with respect to such companies. We are able to provide value-added customized financial solutions to middle-market companies as a result of specialized due diligence, underwriting capabilities and more extensive ongoing monitoring required as lenders.

b)Disciplined Investment Approach with Strong Value Orientation

We employ a disciplined approach in selecting investments that meet the long-standing, consistent value-oriented investment selection criteria employed by our Investment Adviser. Our value-oriented investment philosophy focuses on preserving capital and ensuring that our investments have an appropriate return profile in relation to risk. When market conditions make it difficult for us to invest according to our criteria, we are highly selective in deploying our capital. We believe this approach continues to enable us to build an attractive investment portfolio that meets our return and value criteria over the long-term.

We believe it is critical to conduct extensive due diligence on investment targets. In evaluating new investments we, through our Investment Adviser, conduct a rigorous due diligence process that draws from our Investment Adviser’s experience, industry expertise and network of contacts. Among other things, our due diligence is designed to ensure that each prospective portfolio company will be able to meet its debt service obligations. See “Investment Selection Criteria” for more information.

In addition to engaging in extensive due diligence, our Investment Adviser seeks to reduce risk by focusing on businesses with:

strong competitive positions;
positive cash flow that is steady and stable;
experienced management teams with strong track records;
potential for growth and viable exit strategies; and
capital structures offering appropriate risk-adjusted terms and covenants.

c)Ability to Source and Evaluate Transactions through our Investment Adviser’s Proactive, Research Capability and Established Network

The management team of our Investment Adviser has long-term relationships with financial sponsors, management consultants and management teams that we believe enable us to evaluate investment opportunities effectively in numerous industries, as well as provide us access to substantial information concerning those industries. We identify potential investments both through active origination and through dialogue with numerous financial sponsors, management teams, members of the financial community and corporate partners with whom the professionals of our Investment Adviser have long-term relationships.

d)Flexible Transaction Structuring

We are flexible in structuring investments and tailor investments to meet the needs of a portfolio company while also generating attractive risk-adjusted returns. We can invest in all parts of a capital structure and our Investment Adviser has extensive experience in a wide variety of securities for leveraged companies throughout economic and market cycles.

Our Investment Adviser seeks to minimize the risk of capital loss without foregoing potential for capital appreciation. In making investment decisions, we seek to invest in companies that we believe can generate consistent positive risk-adjusted returns.

We believe that the in-depth experience of our Investment Adviser will enable us to invest throughout various stages of the economic and market cycles and to provide us with ongoing market insights in addition to a significant investment opportunity.

Competition

Our primary competitors provide financing to middle-market companies and include other BDCs, commercial and investment banks, commercial finance companies, CLO funds, private direct lending funds, and, to the extent they provide an alternative form of financing, private equity funds. Additionally, alternative investment vehicles, such as hedge funds, frequently invest in middle-market companies. As a result, competition for investment opportunities in middle-market companies can be intense. However, we believe that from time to time there has been a reduction in the amount of debt capital available to middle-market companies, which we believe has resulted in a less competitive environment for making new investments.

Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some competitors have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC. See “Risk Factors—Risks Relating to our Business and Structure—We operate in a highly competitive market for investment opportunities” for more information.

Leverage

As of September 30, 2025, we had the multi-currency Truist Credit Facility for up to $500 million (increased from $475 million in February 2025), which may be further increased up to $750.0 million in borrowings with certain lenders and Truist Bank (formerly SunTrust Bank), acting as administrative agent, Regions Bank, acting as additional multicurrency lenders, and JPMorgan Chase Bank, N.A., acting as syndication agent for the lenders. As of September 30, 2025 and 2024, we had $426.5 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 6.5% and 7.2%, respectively, exclusive of the fee on undrawn commitment, as of September 30, 2025 and 2024. The Truist Credit Facility is a revolving facility with a stated maturity date of July 29, 2027 and pricing set at 235 basis points over SOFR (or an alternative risk-floating interest rate index). As of September 30, 2025 and 2024, we had $73.5 million and $13.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions. The Truist Credit Facility is secured by substantially all of our assets. As of September 30, 2025, we were in compliance with the terms of the Truist Credit Facility.

In April 2021, we issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.50% per year, commencing November 1, 2021. The effective interest rate is 4.62%. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

In October 2021, we issued $165.0 million in aggregate principal amount of our 2026 Notes-2 at a public offering price per note of 99.4%. Interest on the 2026 Notes-2 is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.00% per year, commencing May 1, 2022. The effective interest rate is 4.12%. The 2026 Notes-2 mature on November 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes-2 are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes-2 are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes-2 on any securities exchange or automated dealer quotation system.

On February 5, 2019, our stockholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the SBCAA) as approved by our board of directors on November 13, 2018. As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for more information.

Investment Policy Overview

We seek to create a diversified portfolio that includes first lien secured debt, second lien secured debt, subordinated debt and, to a lesser extent, equity by targeting an investment size of $10 million to $50 million in securities, on average, of middle-market companies. We expect this investment size to vary proportionately with the size of our capital base. The companies in which we invest are typically highly leveraged, and, in most cases, are not rated by national rating agencies. If such unrated companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies. Securities rated below investment grade are often referred to as “leveraged loans,” “high yield” securities or “junk bonds” and are often higher risk compared to debt instruments that are rated above investment grade and have speculative characteristics. In addition, we expect our debt investments to range in maturity from three to ten years.

Over time, we expect that our portfolio will continue to consist primarily of first lien secured debt, second lien secured debt, subordinated debt and, to a lesser extent, equity investments in qualifying assets such as private, or thinly traded or small market-capitalization, U.S. middle-market public companies. In addition, we may invest up to 30% of our portfolio in non-qualifying assets. These non-qualifying assets may include investments in public companies whose securities are not thinly traded or have a market capitalization of greater than $250 million, securities of middle-market companies located outside of the United States and investment companies as defined in the 1940 Act. We may acquire investments in the secondary markets. See “Regulation—Qualifying Assets” and “Investment Selection Criteria” for more information.

Our board of directors has the authority to modify or waive certain of our operating policies and strategies without prior notice and without stockholder approval (except as required by the 1940 Act). However, absent stockholder approval, under the 1940 Act we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and value of our common stock. Nevertheless, the effects of changes to our operating policies and strategies may adversely affect our business, our ability to make distributions and the value of our common stock.

First Lien Secured Debt

Structurally, first lien secured debt ranks senior in priority of payment to second lien secured debt, subordinated debt and equity, and benefits from a senior security interest in the assets of the borrower. As such, other creditors rank junior to our investments in these securities in the event of insolvency. Due to its lower risk profile and often more restrictive covenants as compared to second lien secured debt and subordinated debt, first lien secured debt generally earns a lower return than second lien secured debt and subordinated debt. In some cases first lien secured debt lenders receive opportunities to invest directly in the equity securities of borrowers and from time to time may also receive warrants to purchase equity securities. We evaluate these investment opportunities on a case-by-case basis.

Second Lien Secured Debt

Second lien secured debt usually ranks junior in priority of payment to first lien secured debt. Second lien secured debt holds a second priority with regard to right of payment in the event of insolvency. Second lien secured debt ranks senior to subordinated debt and common and preferred equity in borrowers’ capital structures. Due to its higher risk profile and often less restrictive covenants as compared to first lien secured debt, second lien secured debt generally earns a higher return than first lien secured debt. In many cases, second lien secured debt investors receive opportunities to invest directly in the equity securities of borrowers and from time to time may also receive warrants to purchase equity securities. We evaluate these investment opportunities on a case-by-case basis.

Subordinated Debt

Structurally, subordinated debt usually ranks junior in priority of payment to first lien secured debt and second lien secured debt, and is often unsecured. As such, other creditors may rank senior to us in the event of insolvency. Subordinated debt ranks senior to common and preferred equity in borrowers’ capital structures. Due to its higher risk profile and often less restrictive covenants as compared to first lien secured debt and second lien secured debt, subordinated debt generally earns a higher return than first lien secured debt and second lien secured debt. In many cases, subordinated debt investors receive opportunities to invest directly in the equity securities of borrowers, and from time to time, may also receive warrants to purchase equity securities. We evaluate these investment opportunities on a case-by-case basis.

Investment Selection Criteria

We are committed to a value-oriented philosophy used by the senior investment professionals of our Investment Adviser who manage our portfolio and seek to minimize the risk of capital loss without foregoing potential for capital appreciation.

We have identified several criteria, discussed below, that we believe are important in identifying and investing in prospective portfolio companies. These criteria provide general guidelines for our investment decisions. However, we caution that not all of these criteria will be met by each prospective portfolio company in which we choose to invest. Generally, we seek to use our experience and access to market information to identify investment opportunities and to structure investments efficiently and effectively.

a)Leading and defensible competitive market positions

The Investment Adviser invests in portfolio companies that it believes have developed strong positions within their markets. The Investment Adviser also seeks to invest in portfolio companies that it believes possess competitive advantages, for example, in scale, scope, customer loyalty, product pricing or product quality as compared to their competitors to protect their market position.

b)Investing in stable borrowers with positive cash flow

Our investment philosophy places a premium on fundamental analysis and has a distinct value-orientation. The Investment Adviser invests in portfolio companies it believes to be stable and well-established, with strong cash flows and profitability. The Investment Adviser believes these attributes indicate portfolio companies that may be well-positioned to maintain consistent cash flow to service and repay their liabilities and maintain growth in their businesses or their relative market share. The Investment Adviser currently does not expect to invest significantly in start-up companies, companies in turnaround situations or companies with speculative business plans, although we are permitted to do so.

c)Management teams

The Investment Adviser focuses on investments in which the portfolio company has an experienced management team with an established track record of success. The Investment Adviser typically requires that portfolio companies have in place proper incentives to align management’s goals with our goals, including having equity interests.

d)Financial sponsorship

The Investment Adviser may seek to cause us to participate in transactions sponsored by what it believes to be trusted financial sponsors. The Investment Adviser believes that a financial sponsor’s willingness to invest significant equity capital in a portfolio company is an implicit endorsement of the quality of that portfolio company. Further, financial sponsors of portfolio companies with significant investments at risk may have the ability, and a strong incentive, to contribute additional capital in difficult economic times should financial or operational issues arise so as to maintain their ownership position.

e)Investments in different borrowers, industries and geographies

The Investment Adviser seeks to invest our assets broadly among portfolio companies, across industries and geographical regions. The Investment Adviser believes that this approach may reduce the risk that a downturn in any one portfolio company, industry or geographical region will have a disproportionate impact on the value of our portfolio, although we are permitted to be non-diversified under the 1940 Act.

f)Viable exit strategy

The Investment Adviser seeks to invest in portfolio companies that it believes will provide a steady stream of cash flow to repay our loans while also reinvesting in their respective businesses. The Investment Adviser expects that such internally generated cash flow, leading to the payment of interest on, and the repayment of the principal of, our investments in portfolio companies to be a key means by which we will exit from our investments over time. In addition, the Investment Adviser also seeks to invest in portfolio companies whose business models and expected future cash flows offer attractive exit possibilities. These companies include candidates for strategic acquisition by other industry participants and companies that may repay our investments through an initial public offering of common stock, refinancing or other capital markets transaction.

Due Diligence

We believe it is critical to conduct extensive due diligence in evaluating new investment targets. Our Investment Adviser conducts a rigorous due diligence process that is applied to prospective portfolio companies and draws from our Investment Adviser’s experience, industry expertise and network of contacts. In conducting due diligence, our Investment Adviser uses information provided by companies, financial sponsors and publicly available information as well as information from relationships with former and current management teams, consultants, competitors and investment bankers.

Our due diligence may include:

review of historical and prospective financial information;
research relating to the portfolio company’s management, industry, markets, products and services and competitors;
interviews with management, employees, customers and vendors of the potential portfolio company;
on-site visits;
review of loan documents; and
background checks.

Additional due diligence with respect to any investment may be conducted on our behalf by attorneys and accountants prior to the closing of the investment, as well as other outside advisers, as appropriate.

Upon the completion of due diligence on a portfolio company, the team leading the investment presents the investment opportunity to our Investment Adviser’s investment committee. This committee determines whether to pursue the potential investment. All new investments are required to be reviewed by the investment committee of our Investment Adviser. The members of the investment committee receive no compensation from us. Rather, they are employees of and receive compensation from our Investment Adviser.

Investment Structure

Once we determine that a prospective portfolio company is suitable for investment, we work with the management of that portfolio company and its other capital providers, including senior, junior and equity capital providers, to structure an investment. We negotiate with these parties to agree on how our investment is structured relative to the other capital in the portfolio company’s capital structure.

We expect our first lien secured debt to have terms of three to ten years. We generally obtain security interests in the assets of our portfolio companies that will serve as collateral in support of the repayment of these loans. This collateral may take the form of first priority liens on the assets of a portfolio company.

Typically, our second lien secured debt and subordinated debt investments have maturities of three to ten years. Second lien secured debt and subordinated debt may take the form of a second priority lien on the assets of a portfolio company and have interest-only payments in the early years with cash or payment-in-kind, or PIK, payments with amortization of principal deferred to the later years. In some cases, we may invest in debt securities that, by their terms, convert into equity or additional debt securities or defer payments of interest for the first few years after our investment. Also, in some cases, our second lien secured debt and subordinated debt may be collateralized by a subordinated lien on some or all of the assets of the borrower.

We seek to tailor the terms of the investment to the facts and circumstances of the transaction and the prospective portfolio company, negotiating a structure that protects our rights and manages our risk while creating incentives for the portfolio company to achieve its business plan and improve its profitability. For example, in addition to seeking a senior position in the capital structure of our portfolio companies, we seek to limit the downside potential of our investments by:

requiring a total return on our investments (including both interest in the form of a floor and potential equity appreciation) that compensates us for credit risk;
incorporating “put” rights and call protection into the investment structure; and
negotiating covenants in connection with our investments that afford our portfolio companies as much flexibility in managing their businesses as possible, consistent with our focus of preserving capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or participation rights.

Our investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. Any warrants we may receive with our debt securities generally require only a nominal cost to exercise, so as a portfolio company appreciates in value, we may achieve additional investment return from these equity investments. We may structure the warrants to provide provisions protecting our rights as a minority-interest holder, as well as puts, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In many cases, we may also obtain registration rights in connection with these equity investments, which may include demand and “piggyback” registration rights.

We expect to hold most of our investments to maturity or repayment, but we may exit certain investments earlier when a liquidity event, such as the sale or refinancing of a portfolio company, takes place. We also may turn over investments to better position the portfolio in light of market conditions.

Ongoing Relationships with Portfolio Companies

Monitoring

The Investment Adviser monitors our portfolio companies on an ongoing basis. The Investment Adviser also monitors the financial trends of each portfolio company to determine if it is meeting its respective business plans and to assess the appropriate course of action for each portfolio company.

The Investment Adviser has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

assessment of success in adhering to a portfolio company’s business plan and compliance with covenants;
periodic or regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;
comparisons to other portfolio companies in the industry, if any;
attendance at and participation in board meetings or presentations by portfolio companies; and
review of periodic financial statements and financial projections for portfolio companies.

The Investment Adviser monitors credit risk of each portfolio company regularly with a goal toward identifying early, and when able and appropriate, exiting investments with potential credit problems. This monitoring process may include reviewing: (1) a portfolio company’s financial resources and operating history; (2) comparing a portfolio company’s current operating results with the Investment Adviser’s initial thesis for the investment and its expectations for the performance of the investment; (3) a portfolio company’s sensitivity to economic conditions; (4) the performance of a portfolio company’s management; (5) a portfolio company’s debt maturities and capital requirements; (6) a portfolio company’s interest and asset coverage; and (7) the relative value of an investment based on a portfolio company’s anticipated cash flow.

Managerial Assistance

We offer significant managerial assistance to our portfolio companies. As a BDC, we are required to make available such significant managerial assistance within the meaning of Section 2(a)(47) of the 1940 Act. See “Regulation” for more information.

Staffing

We do not currently have any employees. Our Investment Adviser and Administrator have hired and expect to continue to hire professionals with skills applicable to our business plan, including experience in middle-market investing, senior lending, mezzanine lending, leveraged finance, distressed debt and private equity businesses.

Our Corporate Information

Our administrative and principal executive offices are located at 1691 Michigan Avenue, Miami Beach, Florida . Our common stock is quoted on The New York Stock Exchange under the symbol “PNNT”. Our phone number is (786) 297-9500, and our Internet website address is www.pennantpark.com. Information contained on our website is not incorporated by reference into this Report and you should not consider information contained on our website to be part of this Report. We file periodic reports, proxy statements and other information with the SEC and make such reports available on our website free of charge as soon as reasonably practicable. In addition, the SEC maintains an Internet website at www.sec.gov that contains material that we file with the SEC on the Electronic Data Gathering, Analysis and Retrieval, or EDGAR, Database.

Our Portfolio

Our principal investment focus is to provide first lien secured debt, second lien secured debt and subordinated debt to U.S. middle-market companies in a variety of industries. We generally seek to target companies that generate positive cash flows from the broad variety of industries in which our Investment Adviser has direct expertise. The following is an illustrative list of the industries in which the Investment Adviser has invested:

• Aerospace and Defense	• Energy and Utilities
• Auto Sector	• Environmental Services
• Beverage, Food and Tobacco	• Financial Services
• Broadcasting and Entertainment	• Grocery
• Buildings and Real Estate	• Healthcare, Education and Childcare
• Building Materials	• High Tech Industries
• Business Services	• Home & Office Furnishings, Housewares & Durable Consumer Products
• Cable Television	• Hotels, Motels, Inns and Gaming
• Capital Equipment	• Insurance
• Cargo Transportation	• Leisure, Amusement, Motion Picture, Entertainment
• Chemicals, Plastics and Rubber	• Logistics
• Communications	• Manufacturing/Basic Industries
• Consumer Products	• Media
• Consumer Services	• Mining, Steel, Iron and Non-Precious Metals
• Containers Packaging & Glass	• Oil and Gas
• Distribution	• Other Media
• Diversified/Conglomerate Manufacturing	• Personal, Food and Miscellaneous Services
• Diversified/Conglomerate Services	• Printing and Publishing
• Diversified Natural Resources, Precious Metals and Minerals	• Retail
• Education	• Telecommunications
• Electronics	• Wholesale

Listed below are our top ten portfolio companies and industries represented as a percentage of our consolidated portfolio assets as of September 30:

Portfolio Company	2025 (1)			Portfolio Company	2024 (1)
AKW Holdings Limited		9	%	JF Acquisition		9	%
JF Acquisition		7	%	AKW Holdings Limited		6	%
Flock Financial, LLC		5	%	Flock Financial, LLC		5	%
Cartessa Aesthetics, LLC		3	%	Cartessa Aesthetics, LLC		3	%
North American Rail Solutions, LLC		3	%	Halo Buyer, Inc.		3	%
Exigo Intermediate II, LLC		3	%	Cascade Environmental LLC		3	%
United Land Services Holdings LLC		2	%	Sigma Defense Systems, LLC		3	%
Shiftkey, LLC		2	%	Pragmatic Institute, LLC		2	%
Route 66 Development		2	%	Express Wash Acquisition Company, LLC		2	%
Halo Buyer, Inc.		2	%	Exigo Intermediate II, LLC		2	%
Industry	2025 (1)			Industry	2024 (1)
---	---	---	---	---	---	---	---
Business Services		19	%	Business Services		18	%
Healthcare, Education and Childcare		18		Distribution		16
Distribution		14		Healthcare, Education and Childcare		12
Financial Services		7		Consumer Products		9
Consumer Products		5		Financial Services		7
Aerospace and Defense		5		Aerospace and Defense		5
Manufacturing/Basic Industry		5		Environmental Services		4
Environmental Services		3		Auto Sector		4
Auto Sector		3		Telecommunications		3
Gaming		2		Media		3

Excludes investments in PSLF, U.S. Government Securities, and cash and cash equivalents.

Our executive officers and directors, as well as the senior investment professionals of the Investment Adviser and Administrator, may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do. Currently, the executive officers and directors, as well as certain of the current senior investment professionals of the Investment Adviser and Administrator, serve as officers and directors of PennantPark Floating Rate Capital Ltd., a publicly traded BDC, and other managed funds, as applicable. Accordingly, they may have obligations to investors in those entities, the fulfillment of which obligations might not be in the best interest of us or our stockholders. In addition, we note that any affiliated investment vehicle currently existing, or formed in the future, and managed by the Investment Adviser and/or its affiliates may, notwithstanding different stated investment objectives, have overlapping investment objectives with our own and, accordingly, may invest in asset classes similar to those targeted by us. As a result, the Investment Adviser may face conflicts in allocating investment opportunities among us and such other entities. The Investment Adviser will allocate investment opportunities in a fair and equitable manner consistent with our allocation policy, and we have received exemptive relief with respect to certain co-investment transactions. Where co-investment is unavailable or inappropriate, the Investment Adviser will choose which investment fund should receive the allocation. See “Risk Factors—Risks Relating to our Business and Structure—There are significant potential conflicts of interest which could impact our investment returns” for more information.

Investment Management Agreement

We have entered into an agreement with the Investment Adviser, or the Investment Management Agreement, under which the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of, and provides investment advisory services to, us. Mr. Penn, our Chairman and Chief Executive Officer, is the managing member and a senior investment professional of, and has a financial and controlling interest in, PennantPark Investment Advisers. PennantPark Investment, through the Investment Adviser, has provided similar services to SBIC II under its respective investment management agreement. Such investment management agreement does not affect the management or incentive fees that we pay to the Investment Adviser on a consolidated basis. Under the terms of our Investment Management Agreement, the Investment Adviser:

determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;
identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies);
closes and monitors the investments we make; and
provides us with such other investment advisory, research and related services, as we may need from time to time.

PennantPark Investment Advisers’ services under our Investment Management Agreement are not exclusive, and it is free to furnish similar services, without the prior approval of our stockholders or our board of directors, to other entities so long as its services to us are not impaired. Our board of directors monitors for any potential conflicts that may arise upon such a development. For providing these services, the Investment Adviser receives a fee from us, consisting of two components—a base management fee and an incentive fee or, collectively, Management Fees.

Management Fees

Effective January 1, 2018, the base management fee is calculated at an annual rate of 1.50% of our “average adjusted gross assets,” which equals our gross assets (exclusive of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. In addition, on November 13, 2018, in connection with our board of directors’ approval of the application of the modified asset coverage requirement under the 1940 Act to the Company, our board of directors also approved an amendment to the Investment Advisory Agreement reducing the Investment Adviser’s annual base management fee from 1.50% to 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter-end. This amendment became effective on February 5, 2019 with the amendment and restatement of the Investment Management Agreement on April 12, 2019. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For periods prior to January 1, 2018, the base management fee was calculated at an annual rate of 2.00% of our “average adjusted gross assets”. For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser earned base management fees of $16.2 million, $16.7 million and $16.5 million, respectively, from us.

The following is a hypothetical example of the calculation of average adjusted gross assets:

Gross assets as of December 31, 20XX = $160 million

U.S. Treasury bills and temporary draws on credit facilities as of December 31, 20XX = $10 million

Adjusted gross assets as of December 31, 20XX = $150 million

Gross assets as of March 31, 20XX = $200 million

U.S. Treasury bills and temporary draws on credit facilities as of March 31, 20XX = $20 million

Adjusted gross assets as of March 31, 20XX = $180 million

Average value of adjusted gross assets as of March 31, 20XX and December 31, 20XX, which are the two immediately preceding calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter equals ($150 million + $180 million) / 2 = $165 million.

The incentive fee has two parts, as follows:

One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below), and any interest expense or amendment fees under any credit facilities and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, or OID, debt instruments with PIK interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7.00% annualized). Effective January 1, 2018, we pay the Investment Adviser an incentive fee with respect to our Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75%, (2) 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.1212% in any calendar quarter (8.4848% annualized), and (3) 17.5% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1212% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable. For periods prior to January 1, 2018, we paid the Investment Adviser an incentive fee with respect to our Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income did not exceed the hurdle rate of 1.75%, (2) 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeded the hurdle rate but was less than 2.1875% in any calendar quarter (8.75% annualized), and (3) 20% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeded 2.1875% in any calendar quarter. For the years ended September 30, 2025, 2024 and 2023, the Investment Adviser earned $9.8 million, $12.7 million, and $13.9 million, respectively, in incentive fees on net investment income from us.

The following is a graphical representation of the calculation of quarterly incentive fee based on Pre-Incentive Fee Net Investment Income:

Pre-Incentive Fee Net Investment Income

(expressed as a percentage of the value of net assets)

Percentage of Pre-Incentive Fee Net Investment Income

allocated to income-related portion of incentive fee

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and, effective January 1, 2018, equals 17.5% of our realized capital gains (20.0% for periods prior to January 1, 2018), if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For the years ended September 30, 2025, 2024 and 2023, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under the Investment Management Agreement (as described above).

Under U.S. generally accepted accounting principles, or GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 17.5% of such amount (20.0% for periods prior to January 1, 2018), less the aggregate amount of actual capital gains related to incentive fees paid in all prior years. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the years ended September 30, 2025, 2024 and 2023, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under GAAP.

Examples of Quarterly Incentive Fee Calculation

Example 1: Income Related Portion of Incentive Fee (*):

Alternative 1:

Assumptions

Investment income (including interest, dividends, fees, etc.) = 1.25%

Hurdle (1) = 1.75%

Base management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.20%

Pre-Incentive Fee Net Investment Income

(investment income—(base management fee + other expenses)) = 0.675%

Pre-Incentive Fee Net Investment Income does not exceed the hurdle; therefore, there is no incentive fee.

Alternative 2:

Assumptions

Investment income (including interest, dividends, fees, etc.) = 2.70%

Hurdle (1) = 1.75%

Base management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.20%

Pre-Incentive Fee Net Investment Income

(investment income—(base management fee + other expenses)) = 2.125%

Incentive fee	= 17.5% x Pre-Incentive Fee Net Investment Income, subject to “catch-up”
	= 2.125% - 1.75%
	= 0.375%
	= 100% x 0.375%
	= 0.375%

Alternative 3:

Assumptions

Investment income (including interest, dividends, fees, etc.) = 3.00%

Hurdle (1) = 1.75%

Base management fee (2) = 0.375%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.20%

Pre-Incentive Fee Net Investment Income

(investment income—(base management fee + other expenses)) = 2.425%

Incentive fee	= 17.5% x Pre-Incentive Fee Net Investment Income, subject to “catch-up” (3)
Incentive fee	= 100% x “catch-up” + (17.5% x (Pre-Incentive Fee Net Investment Income - 2.1212%))
Catch-up	= 2.1212% - 1.75%
	= 0.3712%
	= (100% x 0.3712%) + (17.5% x (2.425% - 2.1212%))
	= 0.3712% + (17.5% x 0.3038%)
	= 0.3712% + 0.053165%
	= 0.424365%

* The hypothetical amount of Pre-Incentive Fee Net Investment Income shown is based on a percentage of total net assets.

Represents 7.0% annualized hurdle.
Represents 1.5% annualized base management fee.
The “catch-up” provision is intended to provide the Investment Adviser with an incentive fee of 17.5% on all of our Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when our net investment income exceeds 2.1212% in any calendar quarter.

Example 2: Capital Gains Portion of Incentive Fee:

Assumptions

Year 1 = no net realized capital gains or losses

Year 2 = 6% realized capital gains and 1% realized capital losses and unrealized capital depreciation, capital gain incentive fee = 17.5% x (realized capital gains for year computed net of all realized capital losses and unrealized capital depreciation at year end)

Year 1 incentive fee	= 17.5% x (0)
	= 0
	= no incentive fee
Year 2 incentive fee	= 17.5% x (6% - 1%)
	= 17.5% x 5%
	= 0.875%

Organization of the Investment Adviser

PennantPark Investment Advisers is a registered investment adviser under the Investment Advisers Act of 1940, as amended, or the Advisers Act. The principal executive office of PennantPark Investment Advisers is located at 1691 Michigan Ave, Miami Beach, Florida 33139.

Duration and Termination of Investment Management Agreement

The Investment Management Agreement was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser in May 2025. Unless terminated earlier as described below, the Investment Management Agreement will continue in effect for a period of one year through May 2026. It will remain in effect if approved annually by our board of directors, or by the affirmative vote of the holders of a majority of our outstanding voting securities, including, in either case, approval by a majority of our directors who are not interested persons of us or the Investment Adviser. In determining to reapprove the Investment Management Agreement, our board of directors requested information from the Investment Adviser that enabled it to evaluate a number of factors relevant to its determination. These factors included the nature, quality and extent of services performed by the Investment Adviser, the Investment Adviser’s ability to manage conflicts of interest effectively, our short and long-term performance, our costs, including as compared to comparable externally and internally managed publicly traded BDCs that engage in similar investing activities, the Investment Adviser’s profitability, any economies of scale, and any other benefits of the relationship for the Investment Adviser.

Based on the information reviewed and the considerations detailed above, our board of directors, including all of our directors who are not interested persons of us or the Investment Adviser, concluded that the investment advisory fee rates and terms are fair and reasonable in relation to the services provided and reapproved the Investment Management Agreement as being in the best interests of our stockholders.

The Investment Management Agreement will automatically terminate in the event of its assignment. The Investment Management Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other. See “Risk Factors—Risks Relating to our Business and Structure—We are dependent upon our Investment Adviser’s key personnel for our future success, and if our Investment Adviser is unable to hire and retain qualified personnel or if our Investment Adviser loses any member of its management team, our ability to achieve our investment objectives could be significantly harmed” for more information.

Administration Agreement

We have entered into an agreement, or the Administration Agreement, with the Administrator, under which the Administrator furnishes us with office facilities, equipment and clerical, bookkeeping and record keeping services. Under our Administration Agreement, the Administrator performs, or oversees the performance of, our required administrative services, which include, among other activities, being responsible for the financial records we are required to maintain and preparing reports to our stockholders and reports filed with the SEC. In addition, the Administrator assists us in determining and publishing our NAV, oversees the preparation and filing of our tax returns and generally oversees the payment of our expenses and the performance of administrative and professional services rendered to us by others. PennantPark Investment, through the Administrator, had provided similar services to SBIC II under its administration agreement with us. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the cost of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. The Administrator also offers on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. To the extent that our Administrator outsources any of its functions, we will pay the fees associated with such functions on a direct basis without profit to the Administrator. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the years ended September 30, 2025, 2024, and 2023, we recorded $1.4 million, $1.2 million and $1.3 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator for services described above.

Duration and Termination of Administration Agreement

The Administration Agreement was reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in May 2025. Unless terminated earlier as described below, our Administration Agreement will continue in effect for a period of one year through May 2026. It will remain in effect if approved annually by our board of directors, or by the affirmative vote of the holders of a majority of our outstanding voting securities, including, in either case, approval by a majority of our directors who are not interested persons of us. The Administration Agreement may not be assigned by either party without the consent of the other party. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other.

Indemnification

Our Investment Management Agreement and Administration Agreement provide that, absent willful misfeasance, bad faith or gross negligence in the performance of their duties or by reason of the reckless disregard of their duties and obligations, PennantPark Investment Advisers and PennantPark Investment Administration and their officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with them are entitled to indemnification from us for any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) arising from the rendering of PennantPark Investment Advisers’ and PennantPark Investment Administration’s services under our Investment Management Agreement or Administration Agreement or otherwise as Investment Adviser or Administrator for us.

License Agreement

We have entered into a license agreement, or the License Agreement, with PennantPark Investment Advisers pursuant to which PennantPark Investment Advisers has granted us a royalty-free, non-exclusive license to use the name “PennantPark.” Under this agreement, we have a right to use the PennantPark name, for so long as PennantPark Investment Advisers or one of its affiliates remains our Investment Adviser. Other than with respect to this limited license, we have no legal right to the “PennantPark” name.

PennantPark Senior Loan Fund, LLC

We provide capital to PSLF in the form of subordinated notes and equity interests. As of September 30, 2025, we and Pantheon owned 55.8% and 44.2% respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2024, we and Pantheon owned 60.5% and 39.5% , respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2025 and 2024, our investment in PSLF consisted of subordinated notes of $140.3 million and $115.9 million and had $8.2 million and $32.6 million unfunded commitments, respectively, and equity interests of $82.4 million and $67.4 million and had $5.0 million and $19.9 million unfunded commitments, respectively.

On August 28, 2024, PSLF and Pantheon entered into an amendment (the “Amendment”) to PSLF’s limited liability company agreement (the “LLC Agreement”). The Amendment amended the term of PSLF, which would have otherwise expired on January 31, 2025, to be indefinite, subject to the other terms of dissolution, wind down and termination in the LLC Agreement. The Amendment also modified the LLC Agreement to permit any member of PSLF (each, a “Member”) to request to redeem its interests in PSLF (in minimum tranches of 25% of the interests then-owned by such Member) at any time. Under the Amendment, PSLF is required to use commercially reasonable efforts to redeem any such Member’s interests within 18 months and, in any event, within three years from the date of such redemption request, subject to customary limitations with respect to the liquidity of PSLF and the requirement that the Company’s proportionate share or ownership of PSLF not exceed 87.5%. It is contemplated that any such redemption would be funded by either principal proceeds from repayments of investments in underlying portfolio companies of PSLF or the proceeds of any new Member’s investment into PSLF.

REGULATION

Business Development Company, Regulated Investment Company Regulations and Small Business Investment Company Regulations

We are a BDC under the 1940 Act, which has qualified and intends to continue to qualify to maintain an election to be treated as a RIC under Subchapter M of the Code. The 1940 Act contains prohibitions and restrictions relating to transactions between a BDC and its affiliates (including any investment advisers or sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act. In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by holders of a majority of our outstanding voting securities.

We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” as that term is defined in the Securities Act of 1933, as amended, or the Securities Act. We may purchase or otherwise receive warrants to purchase the common stock of our portfolio companies in connection with acquisition financing or other investments. Similarly, in connection with an acquisition, we may acquire rights to require the issuers of securities we own or their affiliates to repurchase them under certain circumstances. We do not intend to acquire securities issued by any registered investment company that exceed the limits imposed by the 1940 Act. Under these limits, we generally cannot acquire more than 3% of the voting stock of any registered investment company, invest more than 5% of the value of our total assets in the securities of one registered investment company or invest more than 10% of the value of our total assets in the securities of more than one registered investment company. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might subject our stockholders to additional expenses. We may enter into hedging transactions to manage the risks associated with interest rate and currency fluctuations. None of these policies are fundamental and they may be changed without stockholder approval.

Qualifying Assets

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. The principal categories of qualifying assets relevant to our business are the following:

Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined under the 1940 Act to include any issuer which:
is organized under the laws of, and has its principal place of business in, the United States;
is not an investment company (other than a small business investment company wholly-owned by the BDC) or a company that would be an investment company but is excluded from the definition of an investment company by Section 3(c) of the 1940 Act; and
satisfies any of the following:
does not have any class of securities listed on a national securities exchange;
has any class of securities listed on a national securities exchange subject to a maximum market capitalization of $250.0 million; or
is controlled by a BDC, either alone or as part of a group acting together, and such BDC in fact exercises a controlling influence over the management or policies of such eligible portfolio company and, as a result of such control, has an affiliated person who is a director of such eligible portfolio company.
Securities of any eligible portfolio company which we control.
Securities purchased in a private transaction from a U.S. operating company or from an affiliated person of the issuer, or in transactions incidental thereto, if such issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.
Securities of an eligible portfolio company purchased from any person in a private transaction if there is no readily available market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.
Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities.
Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.

In addition, a BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above.

Managerial Assistance to Portfolio Companies

As a BDC, we are required to make available significant managerial assistance to our portfolio companies that constitute a qualifying asset within the meaning of Section 2(a)(47) of the 1940 Act. However, if a BDC purchases securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such significant managerial assistance. Making available significant managerial assistance means any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company. Our Administrator may provide such assistance on our behalf to portfolio companies that request such assistance. Officers of our Investment Adviser and Administrator may provide assistance to controlled affiliates.

Temporary Investments

Pending investments in other types of qualifying assets, as described above, may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. We may invest in U.S. Treasury bills or in repurchase agreements, provided that such agreements are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, if more than 25% of our total assets constitute repurchase agreements from a single counterparty, we would not meet the Diversification Tests, as defined below under “Regulation—Election to be Treated as a RIC,” in order to qualify as a RIC for federal income tax purposes. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. Our Investment Adviser will monitor the creditworthiness of the counterparties with which we may enter into repurchase agreement transactions.

Our investment in PSLF, our unconsolidated joint venture with Pantheon, is not a qualifying asset under Section 55(a) of the 1940 Act. From time to time prior to making additional investments into PSLF, PTSF II or any future joint venture, we may increase our holdings of U.S. treasury securities, cash or cash equivalents (through borrowing or otherwise) so that such investments do not result in less than 70% of our assets being invested in qualifying assets.

Senior Securities

We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act and referred to as the asset coverage ratio, is compliant with the 1940 Act, immediately after each such issuance. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage requirement at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to our asset coverage ratio. We received exemptive relief from the SEC allowing us to modify the asset coverage requirement to exclude the SBA debentures from the calculation. For a discussion of the risks associated with leverage, see “Risk Factors—Risks Relating to our Business and Structure—Regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital” for more information.

Joint Code of Ethics and Code of Conduct

We and PennantPark Investment Advisers have adopted a joint code of ethics pursuant to Rule 17j-1 under the 1940 Act and a code of conduct that establish procedures for personal investments and restricts certain personal securities transactions. Personnel subject to each code may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the codes’ requirements. Our joint code of ethics and code of conduct are available, free of charge, on our website at www.pennantpark.com. In addition, the joint code of ethics is attached as an exhibit to this Report and is available on the EDGAR Database on the SEC’s Internet site at www.sec.gov.

Proxy Voting Policies and Procedures

We have delegated our proxy voting responsibility to our Investment Adviser. The Proxy Voting Policies and Procedures of our Investment Adviser are set forth below. The guidelines are reviewed periodically by our Investment Adviser and our non-interested directors, and, accordingly, are subject to change. For purposes of these Proxy Voting Policies and Procedures described below, “we,” “our” and “us” refer to our Investment Adviser.

Introduction

As an investment adviser registered under the Advisers Act, our Investment Adviser have a fiduciary duty to act solely in the best interests of their clients. As part of this duty, our Investment Adviser recognize that they must vote client securities in a timely manner free of conflicts of interest and in the best interests of their clients.

These policies and procedures for voting proxies for our investment advisory clients are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

Proxy Policies

Our Investment Adviser vote proxies relating to our portfolio securities in what they perceive to be the best interests of our stockholders. Our Investment Adviser review on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by its clients. Although our Investment Adviser will generally vote against proposals that may have a negative impact on its clients’ portfolio securities, our Investment Adviser may vote for such a proposal if there exists compelling long-term reasons to do so.

Our Investment Adviser proxy voting decisions are made by the senior investment professionals who are responsible for monitoring each of its clients’ investments. To ensure that the vote is not the product of a conflict of interest, our Investment Adviser requires that: (1) anyone involved in the decision making process disclose to its Chief Compliance Officer any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (2) employees involved in the decision making process or vote administration are prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties.

Proxy Voting Records

You may obtain information about how we voted proxies, free of charge, by calling us at (786) 297-9500 or by making a written request for proxy voting information to: Richard Allorto, Chief Financial Officer and Treasurer, 1691 Michigan Avenue, Miami Beach, Florida 33139.

Privacy Protection Principles

We are committed to maintaining the privacy of our stockholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we do not receive any non-public personal information relating to our stockholders, although certain non-public personal information of our stockholders may become available to us. We do not disclose any non-public personal information about our stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent or third party administrator).

We restrict access to non-public personal information about our stockholders to employees of our Investment Adviser and its affiliates with a legitimate business need for the information. We maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of our stockholders.

Our privacy protection policies are available, free of charge, on our website at www.pennantpark.com. In addition, the privacy policy is available on the EDGAR Database on the SEC’s Internet website at www.sec.gov, filed as an exhibit to our annual report on this Form 10-K.

Other

We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our board of directors, including a majority of our directors who are not interested persons of us, and, in some cases, prior approval by the SEC.

We will be periodically examined by the SEC and have been examined by the SBA for compliance with the 1940 Act and 1958 Act, respectively.

We are required by law to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.

We and PennantPark Investment Advisers have each adopted and implemented written policies and procedures reasonably designed to prevent violation of the federal securities laws. We review these policies and procedures annually for their adequacy and the effectiveness of their implementation, and we designate a Chief Compliance Officer to be responsible for administering the policies and procedures.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act, imposes several regulatory requirements on publicly held companies and their insiders. Many of these requirements affect us.

For example:

pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, our Chief Executive Officer and Chief Financial Officer must certify the accuracy of the financial statements contained in our periodic reports;
pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;
pursuant to Rule 13a-15 of the Exchange Act, our management must prepare an annual report regarding its assessment of our internal controls over financial reporting; and
pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated there-under. We continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and continue to take actions necessary to ensure that we are in compliance with that act.

Election to be Treated as a RIC

We have elected to be treated, and intend to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements (as described below). We also must annually distribute dividends for U.S. federal income tax purposes to our stockholders of an amount generally at least equal to 90% of the sum of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, and determined without regard to any deduction for dividends paid out of the assets legally available for distribution, or the Annual Distribution Requirement.

In order to qualify as a RIC for federal income tax purposes, we must:

maintain an election to be treated as a BDC under the 1940 Act at all times during each taxable year;
derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities loans, gains from the sale of stock or other securities, net income from certain qualified publicly traded partnerships or other income derived with respect to our business of investing in such stock or securities, or the 90% Income Test; and
diversify our holdings, or the Diversification Tests, so that at the end of each quarter of the taxable year:
at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer neither represents more than 5% of the value of our assets nor more than 10% of the outstanding voting securities of the issuer; and
no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer or of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades or businesses or in certain qualified publicly traded partnerships.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute in respect of each calendar year dividends to our stockholders of an amount at least equal to the sum of (1) 98% of our net ordinary income (subject to certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain net income (i.e., the excess, if any, of our capital gains over capital losses), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of the calendar year plus (3) any net ordinary income or capital gain net income for the preceding years that was not distributed during such years on which we did not incur any corporate income tax, or the Excise Tax Avoidance Requirement. Although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we may retain and incur tax on such net capital gains or investment company taxable income, subject to maintaining our ability to be treated as a RIC for federal income tax purposes, in order to provide us with additional liquidity.

While we intend to make sufficient distributions each taxable year to avoid incurring any material U.S. federal excise tax on our earnings, we may not be able to, or may choose not to, distribute amounts sufficient to avoid the imposition of the tax entirely. In that event, we generally will be liable for the excise tax only on the amount by which we do not meet the Excise Tax Avoidance Requirement. Under certain circumstances, however, we may, in our sole discretion, determine that it is in our best interests to retain a portion of our income or capital gains rather than distribute such amount as dividends and accordingly cause us to bear the excise tax burden associated therewith.

We may invest in partnerships which may result in our being subject to additional state, local or foreign income, franchise or other tax liabilities. In addition, some of the income and fees that we may recognize will not satisfy the 90% Income Test. In order to mitigate the risk that such income and fees would disqualify us as a RIC as a result of a failure to satisfy the 90% Income Test, we may be required to recognize such income and fees indirectly through the Taxable Subsidiary, which is classified as a corporation for U.S. federal income tax purposes. The Taxable Subsidiary generally will be subject to corporate income taxes on its earnings, which ultimately will reduce our return on such income and fees.

Taxation as a RIC

If we qualify as a RIC, and satisfy the Annual Distribution Requirement, then we will not be subject to federal income tax on the portion of our investment company taxable income and net capital gains, determined without regard to any deduction for dividends paid, we distribute (or are deemed to distribute) as dividends for U.S. federal income tax purposes to stockholders. Additionally, upon satisfying these requirements, we will be subject to U.S. federal income tax at the regular corporate rates on any investment company taxable income or net capital gains, determined without regard to any deduction for dividends paid, that is not distributed (or not deemed to have been distributed) as dividends for U.S. federal income tax purposes to our stockholders.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold a debt instrument that is treated under applicable tax rules as having OID (such as debt instruments with PIK interest or, in certain cases, increasing interest rates or issued with warrants), we must include in income each taxable year a portion of the OID that accrues over the life of the debt instrument, regardless of whether cash representing such income is received by us in the same taxable year. Because any OID accrued will be included in our investment company taxable income in the taxable year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount.

We invest in below investment grade instruments. Investments in these types of instruments may present special tax issues for us. U.S. federal income tax rules are not entirely clear about issues such as when we may cease to accrue interest, OID or market discount, when and to what extent deductions may be taken for bad debts or worthless debt instruments, how payments received on obligations in default should be allocated between principal and income and whether exchanges of debt instruments in a bankruptcy or workout context are taxable. We will address these and other issues to the extent necessary in order to continue to maintain our qualification to be subject to tax as a RIC.

Gain or loss realized by us from equity securities and warrants acquired by us, as well as any loss attributable to the lapse of such warrants, generally will be treated as capital gain or loss. Such gain or loss generally will be long-term or short-term, depending on how long we held a particular warrant.

We are authorized to borrow funds and to sell assets in order to satisfy our Annual Distribution Requirement or the Excise Tax Avoidance Requirement. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt instruments and other senior securities are outstanding unless certain asset coverage requirements are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous.

We may distribute our common stock as a dividend from our taxable income and a stockholder could receive a portion of such distributions declared and distributed by us in shares of our common stock with the remaining amount in cash. A stockholder will be considered to have recognized dividend income generally equal to the fair market value of the stock paid by us plus cash received with respect to such dividend. The total dividend declared and distributed by us would be taxable income to a stockholder even though only a small portion of the dividend was paid in cash to pay any taxes due on the total dividend. We have not yet elected to distribute stock as a dividend but reserve the right to do so.

Failure to Qualify as a RIC

If we fail to satisfy the Annual Distribution Requirement or fail to qualify as a RIC in any taxable year, unless certain cure provisions of the Code apply, we will be subject to tax in that taxable year on all of our taxable income at regular corporate rates, regardless of whether we make any dividend distributions to our stockholders. In that case, all of our income will be subject to corporate-level federal income tax, reducing the amount available to be distributed to our stockholders. In contrast, assuming we qualify as a RIC, our corporate-level federal income tax should be substantially reduced or eliminated. See “Election to be Treated as a RIC” above for more information.

If we are unable to maintain our status as a RIC, we also would not be able to deduct distributions to stockholders, nor would distributions be required to be made. Distributions would generally be taxable as dividends to our stockholders to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, U.S. non-corporate stockholders generally would be eligible to treat such dividends as “qualified dividend income,” which generally would be subject to reduced rates of U.S. federal income tax, and dividends paid by us to certain U.S. corporate stockholders would be eligible for the dividends received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis in our common stock, and any remaining distributions would be treated as a capital gain. Moreover, if we fail to qualify as a RIC in any taxable year, to qualify again to be treated as a RIC for federal income tax purposes in a subsequent taxable year, we would be required to distribute our earnings and profits attributable to any of our non-RIC taxable years as dividends to our stockholders. In addition, if we fail to qualify as a RIC for a period greater than two consecutive taxable years, to qualify as a RIC in a subsequent taxable year we may be subject to regular corporate tax on any net built-in gains with respect to certain of our assets (that is, the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if we had sold the property at fair market value at the end of the taxable year) that we elect to recognize on requalification or when recognized over the next five taxable years.

SBA Regulations

SBIC II was licensed to operate under the SBA as a SBIC under Section 301(c) of the 1958 Act and received its license in 2013. We have repaid all outstanding debentures in connection with SBIC II and surrendered its SBA license.

SBICs are designed to stimulate the flow of capital to businesses that meet specified eligibility requirements discussed below. Under SBA regulations, SBIC II was subject to regulatory requirements including, among other things, making investments in SBA eligible “small businesses” (as defined by the SBA), investing at least 25% of regulatory capital in eligible “smaller business enterprises”, placing certain limitations on the financing terms of investments by SBICs in portfolio companies, prohibiting investing in certain industries, and meeting certain required capitalization thresholds among other regulations. Furthermore, SBIC II was subject to regulation and oversight by the SBA, including, among other things, periodic the performance of financial audits by an independent auditor and periodic examinations, including of SBIC II’s of their financial statements that are prepared on a basis of accounting other than GAAP pursuant to SBA accounting standards and financial reporting requirements for SBICs. For example, SBIC II did not use fair value accounting on its assets or liabilities under SBA valuation guidelines. If SBIC II failed to comply with applicable SBA regulations, the SBA could, depending on the severity of the violation, limit or prohibit use of SBA-guaranteed debentures, declare outstanding debentures immediately due and payable, and/or limit SBIC II from making new investments. In addition, the SBA can revoke or suspend a SBIC license for willful or repeated violation of, or willful or repeated failure to observe, any provision of the 1958 Act or any rule or regulation promulgated thereunder. These actions by the SBA would, in turn, negatively affect us.

Eligible Small and Smaller Businesses

Under present current SBA regulations, eligible “small business” generally include businesses that (together with their affiliates) have tangible net worth not exceeding $19.5 million and have average annual net income after U.S. federal income taxes not exceeding $6.5 million (average net income to be computed without benefit of any carryover loss) for the two most recent fiscal years. In addition, SBIC II was required to invest at least 25% of its investment capitals in “smaller” concerns enterprises”. A “smaller concern enterprise” generally includes a business (together with its affiliates) that has tangible net worth not exceeding $6.0 million and has average annual net income after U.S. federal income taxes not exceeding $2.0 million (average net income to be computed without benefit of any carryover loss) for the two most recent fiscal years. SBA regulations also provide alternative industry size standard criteria to determine eligibility for designation as an eligible small business or a smaller enterprise, which criteria depend on the primary industry in which the business is engaged and is based on the number of employees or gross revenue of the business and its affiliates or as an alternative to the aforementioned requirement, meet the size requirements based on either the number of employees or gross revenue, which is based on the industry in which the smaller concern operates. However, once an SBIC has invested in a company, it may continue to make follow-on investments in the company, regardless of the size of the business at the time of the follow-on investment, up and until the time a business offers its securities in a public market through the company’s initial public offering, if any.

Financing Limitations, Terms and Changes in Control

The SBA generally prohibits an SBIC from financing small businesses in certain industries, such as relending, gambling, oil and gas exploration and other passive businesses. Additional SBA prohibitions include investing outside the United States, investing more than 30% of regulatory capital in any one company and its affiliates and lending money to any officer, director or employee or to invest in any affiliate thereof. The SBA placed certain limits on the financing terms of investments by SBIC II in portfolio companies such as limiting the interest rate on debt securities and loans provided to portfolio companies. The SBA also limits fees, prepayment terms and other economic arrangements that are typically charged in lending arrangements.

The SBA also prohibited, without prior written approval, a “change in control” of SBIC II or transfers that would result in any person or group owning 10% or more of a class of capital stock (or its equivalent in the case of a partnership) of a licensed SBIC. A “change of control” is any event which would result in the transfer of power, direct or indirect, to direct management and policies of an SBIC, whether through ownership, contractual arrangements or otherwise.

Idle Funds Limitation

The SBA limits an SBIC to investing idle funds in the following types of securities:

direct obligations of, or obligations guaranteed as to principal and interest by, the U.S. Government, which mature within 15 months from the date of the investment;
repurchase agreements with federally insured institutions with a maturity of seven days or less (and the securities underlying the repurchase obligations must be direct obligations of or guaranteed by the federal government);
mutual funds, securities or other instruments that exclusively consist of, or represent pooled assets of, investments described in the first and second bulleted paragraphs above;
certificates of deposit with a maturity of one year or less, issued by a federally insured institution; or
a deposit account in a federally insured institution that is subject to withdrawal restriction of one year or less.
a checking account in a federally insured institution; or
• a reasonable petty cash fund.

SBA Leverage or Debentures

SBA-guaranteed debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed at the time of issuance at a market-driven spread over 10-year U.S. Treasury Notes. Leverage through SBA-guaranteed debentures is subject to required capitalization thresholds. SBA current regulations limit the amount that an SBIC may borrow to a maximum of $175.0 million, which is up to twice its regulatory capital, and a maximum of $350.0 million as part of a group of SBICs under common control. The SBA, as a creditor, had a superior claim to SBIC II’s assets over our stockholders in the event we liquidated SBIC II or the SBA exercises its remedies under the SBA-guaranteed debentures issued by SBIC II upon an event of default. We have repaid all outstanding debentures in connection with SBIC II and have surrendered the SBA license.

Item 1A. Risk Factors

Before you invest in our securities, you should be aware of various risks, including those described below. You should carefully consider these risk factors, together with all of the other information included in this Report, before you decide whether to make an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may have a material adverse effect on our business, financial condition and/or operating results. If any of the following events occur, our business, financial condition and results of operations could be materially adversely affected. In such case, our NAV, the trading price of our common stock, our 2026 Notes, our 2026 Notes-2 or any securities we may issue, may decline, and you may lose all or part of your investment.

RISKS RELATING TO OUR BUSINESS AND STRUCTURE

We are subject to various covenants under our Truist Credit Facility which, if not complied with, could result in reduced availability and/or mandatory prepayments under our Truist Credit Facility.

In addition to the asset coverage ratio requirements, our Truist Credit Facility contains various covenants which, if not complied with, could accelerate repayment under the Truist Credit Facility. This could have a material adverse effect on our business, financial condition and results of operations. Our borrowings under our Truist Credit Facility are collateralized by the assets in our investment portfolio. The agreements governing the Truist Credit Facility require us to comply with certain financial and operational covenants. These covenants include:

A requirement to retain our status as a RIC;
A requirement to maintain a minimum amount of stockholders’ equity; and
A requirement that our outstanding borrowings under the Truist Credit Facility not exceed a certain percentage of the value of our portfolio.

Our continued compliance with these covenants depends on many factors, some of which are beyond our control. A material decrease in our NAV in connection with additional borrowings could result in an inability to comply with our obligation to restrict the level of indebtedness that we are able to incur in relation to the value of our assets or to maintain a minimum level of stockholders’ equity. This could have a material adverse effect on our operations, as it would reduce availability under the Truist Credit Facility and could trigger mandatory prepayment obligations under the terms of the Truist Credit Facility.

We operate in a highly competitive market for investment opportunities.

A number of entities compete with us to make the types of investments that we make in middle-market companies. We compete with public and private funds, including other BDCs, commercial and investment banks, commercial financing companies, CLO funds and, to the extent they provide an alternative form of financing, private equity funds. Additionally, alternative investment vehicles, such as hedge funds, also invest in middle-market companies. As a result, competition for investment opportunities at middle-market companies can be intense. Many of our potential competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some competitors have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objectives.

Participants in our industry compete on several factors, including price, flexibility in transaction structuring, customer service, reputation, market knowledge and speed in decision-making. We do not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors may make loans with interest rates that are lower than the rates we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may experience decreased net interest income and increased risk of credit loss.

Our borrowers may default on their payments, which may have a materially negative effect on our financial performance.

Our primary business exposes us to credit risk, and the quality of our portfolio has a significant impact on our earnings. Credit risk is a component of our fair valuation of our portfolio companies. Negative credit events will lead to a decrease in the fair value of our portfolio companies.

In addition, market conditions have affected consumer confidence levels, which may harm the business of our portfolio companies and result in adverse changes in payment patterns. Increased delinquencies and default rates would negatively impact our results of operations. Deterioration in the credit quality of our portfolio could have a material adverse effect on our business, financial condition and results of operations. If interest rates rise, some of our portfolio companies may not be able to pay the escalating interest on our loans and may default.

We make long-term loans and debt investments, which may involve a high degree of repayment risk. Our investments with a deferred interest feature, such as OID income and PIK interest, could represent a higher credit risk than investments that must pay interest in full in cash on a regular basis. We invest in companies that may have limited financial resources, typically are highly leveraged and may be unable to obtain financing from traditional sources. Accordingly, a general economic downturn or severe tightening in the credit markets could materially impact the ability of our borrowers to repay their loans, which could significantly damage our business. Numerous other factors may affect a borrower’s ability to repay its loan, including the failure to meet its business plan or a downturn in its industry. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans or foreclosure on the secured assets. This could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the loans or debt securities that we hold. In addition, our portfolio companies may have, or may be permitted to incur, other debt that ranks senior to or equally with our securities. This means that payments on such senior-ranking securities may have to be made before we receive any payments on our subordinated loans or debt securities. Deterioration in a borrower’s financial condition and prospects may be accompanied by deterioration in any related collateral and may adversely affect our financial condition and results of operations.

Any unrealized losses we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution.

As a BDC, we are required to carry our investments at fair value, which is derived from a market value or, if no market value is ascertainable or if market value does not reflect the fair value of such investment in the bona fide determination of our board of directors, then we would carry our investments at fair value, as determined in good faith by or under the direction of our board of directors. Decreases in the market values or fair values of our investments are recorded as unrealized depreciation or loss. Unrealized losses of any given portfolio company could be an indication of such company’s inability in the future to meet its repayment obligations to us.

If the fair value of our portfolio companies reflects unrealized losses that are subsequently realized, we could experience reductions of our income available for distribution in future periods that could materially harm our results of operations and cause a material decline in the value of our publicly traded common stock.

We are dependent upon our Investment Adviser’s key personnel for our future success, and if our Investment Adviser is unable to hire and retain qualified personnel or if our Investment Adviser loses any member of its management team, our ability to achieve our investment objectives could be significantly harmed.

We depend on the diligence, skill and network of business contacts of the senior investment professionals of our Investment Adviser for our future success. We also depend, to a significant extent, on PennantPark Investment Advisers’ access to the investment information and deal flow generated by these senior investment professionals and any others that may be hired by PennantPark Investment Advisers. Subject to the overall supervision of our board of directors, the managers of our Investment Adviser evaluate, negotiate, structure, close and monitor our investments. Our future success depends on the continued service of management personnel of our Investment Adviser. The departure of managers of PennantPark Investment Advisers could have a material adverse effect on our ability to achieve our investment objectives. In addition, we can offer no assurance that PennantPark Investment Advisers will remain our Investment Adviser. The Investment Adviser has the right, under the Investment Management Agreement, to resign at any time upon 60 days’ written notice, whether we have found a replacement or not.

If our Investment Management Agreement is terminated, our costs under new agreements that we enter into may increase. In addition, we will likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under our Investment Management Agreement. Any new investment management agreement would also be subject to approval by our stockholders.

We are exposed to risks associated with changes in interest rates that may affect our cost of capital and net investment income.

Since we borrow money to make investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds will increase and the interest rate on investments with an interest rate floor will not increase until interest rates exceed the applicable floor, which will reduce our net investment income. We may use interest rate risk management techniques, such as total return swaps and interest rate swaps, in an effort to limit our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities may limit our ability to participate in the benefits of lower interest rates with respect to the hedged portfolio. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. Also, we have limited experience in entering into hedging transactions and we will initially have to purchase or develop such expertise, which may diminish the actual benefits of any hedging strategy we employ. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures about Market Risk” for more information.

A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments once the interest rate exceeds the applicable floor. Accordingly, an increase in interest rates would make it easier for us to meet or exceed the incentive fee hurdle and may result in a substantial increase of the amount of incentive fees payable to our Investment Adviser with respect to Pre-Incentive Fee Net Investment Income.

General interest rate fluctuations may have a substantial negative impact on our investments, the value of our common stock and our rate of return on invested capital. A reduction in interest rates may result in both lower interest rates on new investments and higher repayments on current investments with higher interest rates, which may have an adverse impact on our net investment income. An increase in interest rates could decrease the value of any investments we hold which earn fixed interest rates or are subject to interest rate floors and also could increase our interest expense on our Truist Credit Facility, thereby decreasing our net investment income. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

If general interest rates rise, there is a risk that the portfolio companies in which we hold floating rate securities will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on us to provide fixed rate loans to our portfolio companies, which could adversely affect our net investment income, as any increases in our cost of borrowed funds would not be accompanied by increased interest income from such fixed-rate investments.

Our financial condition and results of operation depend on our ability to manage future growth effectively.

Our ability to achieve our investment objectives depends on our ability to grow, which depends, in turn, on our Investment Adviser’s ability to identify, invest in and monitor companies that meet our investment selection criteria. Accomplishing this result on a cost-effective basis is largely a function of our Investment Adviser’s structuring of the investment process, its ability to provide competent, attentive and efficient services to us and our access to financing on acceptable terms. The management team of PennantPark Investment Advisers has substantial responsibilities under our Investment Management Agreement. In order for us to grow, our Investment Adviser will need to hire, train, supervise and manage new employees. However, we can offer no assurance that any current or future employees will contribute effectively to the work of, or remain associated with, the Investment Adviser. We caution you that the principals of our Investment Adviser or Administrator may also be called upon to provide and currently do provide significant managerial assistance to portfolio companies and other investment vehicles, including other BDCs, which are managed by the Investment Adviser. Such demands on their time may distract them or slow our rate of investment. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations.

We are highly dependent on information systems and systems failures could have a material adverse effect on our business, financial condition and results of operations.

Our business depends on the communications and information systems, including financial and accounting systems, of the Investment Adviser, the Administrator and our external service providers. Any failure or interruption of such systems could cause delays or other problems in our activities. This, in turn, could have a material adverse effect on our business, financial condition and results of operations.

If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us conducted in connection with Section 404 of the Sarbanes-Oxley Act of 2002, or the subsequent testing by our independent registered public accounting firm (when undertaken, as noted below), may reveal deficiencies in our internal controls over financial reporting that are deemed to be significant deficiencies, material weaknesses or that may require prospective or retroactive changes to our consolidated financial statements or identify other areas for further attention or improvement. We have identified a material weaknesses in our internal controls over financial reporting and may identify other material weaknesses or significant deficiencies in the future. Inferior internal controls could also cause investors and lenders to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

We have identified material weaknesses in our internal control over financial reporting. If we fail to remediate these material weaknesses, our ability to report our

financial condition and result of operations accurately and on a timely basis could be adversely affect.

We have identified material weaknesses in our internal controls over financial reporting, and management has determined that, as of September 30, 2025, we do not maintain effective internal control over financial reporting. These material weaknesses and our remediation efforts are described in Management’s Report on Internal Control Over Financial Reporting, which appears on page 63 of this Form 10-K. We cannot assure you that we will adequately remediate the material weaknesses or that additional material weaknesses in our internal controls will not be identified in the future. Any failure to maintain or implement required new or improved controls, or any difficulties we encounter in their implementation, could result in additional material weaknesses, or could result in material misstatements in our financial statements. These misstatements could result in restatements of our financial statements, cause us to fail to meet our reporting obligations or cause investors to lose confidence in our reported financial information.

We are in the process of remediating the identified material weaknesses in our internal controls, but we are unable at this time to estimate when the remediation effort will be completed. If we fail to remediate these material weaknesses, there will continue to be an increased risk that our future financial statements could contain errors that will be undetected. Further and continued determinations that there are material weaknesses in the effectiveness of our internal controls could impact the operations of our business including our ability to obtain financing, the cost of any financing we obtain or require additional expenditures of resources to comply with applicable requirements

We may not replicate the historical performance of other investment companies and funds with which our senior and other investment professionals have been or are affiliated.

The 1940 Act imposes numerous constraints on the investment activities of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of U.S. private companies or thinly traded public companies (i.e., public companies with a market capitalization of less than $250 million), cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. These constraints may hinder the Investment Adviser’s ability to take advantage of attractive investment opportunities and to achieve our investment objectives. In addition, the investment philosophy and techniques used by the Investment Adviser may differ from those used by other investment companies and funds advised by the Investment Adviser. Accordingly, we can offer no assurance that we will replicate the historical performance of other investment companies and funds with which our senior and other investment professionals have been affiliated, and we caution that our investment returns could be substantially lower than the returns achieved by such other companies.

Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.

If we do not remain a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially more regulatory restrictions under the 1940 Act and correspondingly decrease our operating flexibility, which could have a material adverse effect on our business, financial condition and results of operations.

Loss of RIC tax status would substantially reduce our net assets and income available for debt service and distributions.

We have operated and continue to operate so as to maintain our election to be treated as a RIC under Subchapter M of the Code. If we meet the 90% Income Test, the Diversification Tests, and the Annual Distribution Requirement, we generally will not be subject to corporate-level income taxation on income we timely distribute, or are deemed to distribute, as dividends for U.S. federal income tax purposes to our stockholders. We would cease to qualify for such tax treatment if we were unable to comply with these requirements. In addition, we may have difficulty meeting our Annual Distribution Requirement to our stockholders because, in certain cases, we may recognize income before or without receiving cash representing such income. If we fail to qualify as a RIC, we will have to pay corporate-level taxes on all of our income whether or not we distribute it, which would substantially reduce the amount of income available for debt service as well as reduce and/or affect the character and amount of our distributions to our stockholders. Even if we qualify as a RIC, we generally will be subject to a 4% nondeductible excise tax if we do not distribute to our stockholders in respect of each calendar year an amount at least equal to the Excise Tax Avoidance Requirement.

We may have difficulty paying our Annual Distribution Requirement if we recognize income before or without receiving cash representing such income.

For federal income tax purposes, we include in income certain amounts that we have not yet received in cash, such as OID and PIK interest, which represents interest added to the loan balance and due at the end of the loan term. OID, which could be significant relative to our overall investment assets, and increases in loan balances as a result of PIK interest will be included in income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash, such as amounts attributable to foreign currency transactions. Our investments with a deferred interest feature, such as PIK interest, may represent a higher credit risk than loans for which interest must be paid in full in cash on a regular basis. For example, even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is scheduled to occur upon maturity of the obligation.

The part of the incentive fee payable by us that relates to our net investment income is computed and paid on income that may include interest that has been accrued but not yet received in cash. If a portfolio company defaults on a loan that is structured to provide PIK or OID interest, it is possible that accrued interest previously used in the calculation of the incentive fee will become uncollectible.

If we are unable to satisfy the Annual Distribution Requirement, we may have to sell some of our investments at times or prices we would not consider advantageous, or raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements, which could have a material adverse effect on our business, financial condition and results of operations. If we are not able to obtain cash from other sources, we may lose our ability to be subject to tax as a RIC and thus be subject to corporate-level income tax.

Legislation enacted in 2018 allows us to incur additional leverage.

A BDC has historically been able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in Section 61(a)(2) of the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Consolidated Appropriations Act of 2018 (which includes the SBCAA) was enacted which amended the 1940 Act to decrease this percentage from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity) for a BDC that has received either stockholder approval or approval of a “required majority” (as defined in Section 57(o) of the 1940 Act) of its board of directors of the application of such lower asset coverage ratio to the BDC. On February 5, 2019, our stockholders approved such reduction, as approved by our board of directors on November 13, 2018. As such, we are able to incur additional indebtedness so long as we comply with the applicable disclosure requirements, which may increase the risk of investing in us. Under the 200% minimum asset coverage ratio, we were permitted to borrow up to one dollar for investment purposes for every one dollar of investor equity and, under the 150% minimum asset coverage ratio, we are permitted to borrow up to two dollars for investment purposes for every one dollar of investor equity. In other words, Section 61(a)(2) of the 1940 Act permits BDCs to potentially increase their debt-to-equity ratio from a maximum of 1-to-1 to a maximum of 2-to-1. In addition, since our base management fee is determined and payable based upon our average adjusted gross assets, which includes any borrowings for investment purposes, our base management fee expense may increase if we incur additional leverage. Effective February 5, 2019, base management fees were reduced from 1.50% to 1.00% on gross assets that exceed 200% of our total net assets as of the immediately preceding quarter-end.

Because we intend to distribute substantially all of our income to our stockholders to maintain our ability to be subject to tax as a RIC, we may need to raise additional capital to finance our growth. If funds are not available to us, we may need to curtail new investments, and our common stock value could decline.

In connection with satisfying the requirements to be subject to tax as a RIC, we intend to distribute to our stockholders substantially all of our investment company taxable income and net capital gains each taxable year. However, we may retain all or a portion of our net capital gains and incur applicable income taxes with respect thereto and elect to treat such retained net capital gains as deemed dividend distributions to our stockholders.

As noted above, on November 13, 2018 and February 5, 2019, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act), and our stockholders, respectively, approved a reduction of our asset coverage ratio from 200% to 150%. The asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). If we incur additional indebtedness under this provision, the risk of investing in us will increase. If the value of our assets declines, we may be unable to satisfy this asset coverage test. If that happens, we may be required to sell a portion of our investments or sell additional common stock and, depending on the nature of our leverage, to repay a portion of our indebtedness at a time when such sales and repayments may be disadvantageous. In addition, the issuance of additional securities could dilute the percentage ownership of our current stockholders in us.

Regulations governing our operation as a BDC will affect our ability to, and the way in which we raise additional capital.

Our business requires a substantial amount of capital. We may acquire additional capital from the issuance of additional senior securities or other indebtedness, the issuance of additional shares of our common stock, the issuance of warrants or subscription rights to purchase certain of our securities, or from securitization transactions or through SBA debentures. However, we may not be able to raise additional capital in the future on favorable terms or at all. We may issue debt securities or preferred securities, which we refer to collectively as “senior securities,” and we may borrow money from banks, through the SBA debenture program or other financial institutions, up to the maximum amount permitted by the 1940 Act. Under the 1940 Act, the asset coverage ratio requirements permit us to issue senior securities or incur indebtedness subject to certain limitations, exclusive of the SBA debentures pursuant to our SEC exemptive relief. Our ability to pay distributions or issue additional senior securities would be restricted if our asset coverage ratio was not met. If the value of our assets declines, we may be unable to satisfy the asset coverage ratio. If that happens, we may be required to liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous, which could materially harm our business, financial condition and results of operations.

Senior Securities. As a result of issuing senior securities, we are exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred securities, they would rank “senior” to common stock in our capital structure. Preferred stockholders would have separate voting rights and may have rights, preferences or privileges more favorable than those of holders of our common stock. Furthermore, the issuance of preferred securities could have the adverse effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders or otherwise be in your best interest. Our senior securities may include conversion features that cause them to bear risks more closely associated with an investment in our common stock.
Additional Common Stock. Our board of directors may decide to issue common stock to finance our operations rather than issuing debt or other senior securities. As a BDC, we are generally not able to issue our common stock at a price below NAV per share without first obtaining certain approvals from our stockholders and our board of directors. Also, subject to the requirements of the 1940 Act, we may issue rights to acquire our common stock at a price below the current NAV per share of the common stock if our board of directors determines that such sale is in our best interests and the best interests of our common stockholders. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates the market value of such securities. However, when required to be undertaken, the procedures used by the board of directors to determine the NAV per share of our common stock within 48 hours of each offering of our common stock may differ materially from and will necessarily be more abbreviated than the procedures used by the board of directors to determine the NAV per share of our common stock at the end of each quarter because there is a an extensive process each quarter to determine the NAV per share of our common stock which cannot be completed in 48 hours. The quarterly process includes preliminary valuation conclusions, engagement of independent valuation firms and review by those firms of preliminary valuation conclusions. By contrast, the procedures in connection with an offering may yield a NAV that is less precise than the NAV determined at the end of each quarter. We will not offer transferable subscription rights to our stockholders at a price equivalent to less than the then current NAV per share of common stock, excluding underwriting commissions, unless we first file a post-effective amendment that is declared effective by the SEC with respect to such issuance and the common stock to be purchased in connection with such rights represents no more than one-third of our outstanding common stock at the time such rights are issued. In addition, for us to file a post-effective amendment to a registration statement on Form N-2, we must then be qualified to register our securities under the requirements of Form S-3. We may actually issue shares above or below a future NAV. If we raise additional funds by issuing more common stock or warrants or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our common stockholders at that time would decrease, and our common stockholders would experience voting dilution.
Securitization. In addition to issuing securities to raise capital as described above, we anticipate that in the future, as market conditions and the rules and regulations of the SEC permit, we may securitize our loans to generate cash for funding new investments. To securitize loans, we may create a wholly-owned subsidiary, contribute a pool of loans to the subsidiary and have the subsidiary issue primarily investment grade debt securities to purchasers who we would expect to be willing to accept a substantially lower interest rate than the loans earn. Even though we expect the pool of loans that we contribute to any such securitization vehicle to be rated below investment grade, because the securitization vehicle’s portfolio of loans would secure all of the debt issued by such vehicle, a portion of such debt may be rated investment grade, subject in each case to market conditions that may require such portion of the debt to be over collateralized and various other restrictions. If applicable accounting pronouncements or SEC staff guidance require us to consolidate the securitization vehicle’s financial statements with our financial statements, any debt issued by it would be generally treated as if it were issued by us for purposes of the asset coverage ratio applicable to us. In such case, we would expect to retain all or a portion of the equity and/or subordinated notes in the securitization vehicle. Our retained equity would be exposed to any losses on the portfolio of loans before any of the debt securities would be exposed to such losses. Accordingly, if the pool of loans experienced a low level of losses due to defaults, we would earn an incremental amount of income on our retained equity but we would be exposed, up to the amount of equity we retained, to that proportion of any losses we would have experienced if we had continued to hold the loans in our portfolio. We may hold subordinated debentures in any such securitization vehicle and, if so, we would not consider such securities to be senior securities. An inability to successfully securitize our loan portfolio could limit our ability to grow our business and fully execute our business strategy and adversely affect our earnings, if any. Moreover, the successful securitization of a portion of our loan portfolio might expose us to losses as the residual loans in which we do not sell interests will tend to be those that are riskier and less liquid.
SBA Debentures. In addition to issuing securities and using securitizations to raise capital as described above, we have historically issued and may in the future issue, as permitted under SBA regulations and through our wholly-owned subsidiary, SBIC II, and any future SBIC subsidiary, SBA debentures to generate cash for funding new investments. To issue SBA debentures, we may request commitments for debt capital from the SBA. SBIC II is, and any future SBIC subsidiary has historically been exposed to any losses on its portfolio of loans;, however, such debentures are non-recourse to us.

We currently use borrowed funds to make investments and are exposed to the typical risks associated with leverage.

Because we borrow funds to make investments, we are exposed to increased risk of loss due to our use of debt to make investments. A decrease in the value of our investments will have a greater negative impact on the NAV attributable to our common stock than it would if we did not use debt. Our ability to pay distributions may be restricted when our asset coverage ratio is not met, exclusive of the SBA debentures pursuant to SEC exemptive relief, and any cash that we use to service our indebtedness is not available for distribution to our common stockholders.

Our current debt is governed by the terms of our Credit Facility, 2026 Notes, and 2026 Notes-2 and future debt may be governed by an indenture or other instrument containing covenants restricting our operating flexibility. We, and indirectly our stockholders, bear the cost of issuing and servicing debt. Any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may also carry leverage related risks. Leverage magnifies the potential risks for loss and the risks of investing in us, both as detailed below.

Additionally, we may in the future, through one or more of our subsidiaries, receive funds from the SBA through its debenture program. In connection with the filing of its initial SBA license application, PennantPark Investment received exemptive relief, in 2011, from the SEC to permit us to exclude the debt of our SBICs from our consolidated asset coverage ratio. Our ratio of total assets on a consolidated basis to outstanding indebtedness may be less than the applicable asset coverage ratio, which while providing increased investment flexibility, would also increase our exposure to risks associated with leverage.

If we incur additional debt, it could increase the risk of investing in our shares.

We have indebtedness outstanding pursuant to our Truist Credit Facility, 2026 Notes, and 2026 Notes-2 and expect in the future to borrow additional amounts under our Truist Credit Facility or otherwise, subject to market availability, and, may increase the size of our Truist Credit Facility. We cannot assure you that our leverage will remain at current levels. The amount of leverage that we employ will depend upon our assessment of the market and other factors at the time of any proposed borrowing. Lenders have fixed dollar claims on our assets that are superior to the claims of our common stockholders or preferred stockholders, if any, and we have granted a security interest in our assets, excluding those of SBIC II, in connection with borrowings under our Truist Credit Facility. In the case of a liquidation event, those lenders would receive proceeds before our stockholders. Any future debt issuance will increase our leverage and may be subordinate to our Truist Credit Facility and SBA debentures. In addition, borrowings or debt issuances and SBA debentures, also known as leverage, magnify the potential for loss or gain on amounts invested and, therefore, increase the risks associated with investing in our securities. Leverage is generally considered a speculative investment technique. If the value of our assets decreases, then the use of leverage would cause the NAV attributable to our common stock to decline more than it otherwise would have had we not utilized leverage. Similarly, any decrease in our revenue would cause our net income to decline more than it would have had we not borrowed funds and could negatively affect our ability to make distributions on our common or preferred stock. Our ability to service any debt that we incur depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures.

As of September 30, 2025 and 2024, our asset coverage ratio, as computed in accordance with the 1940 Act, was 163% and 164%, respectively.

As of September 30, 2025, we had outstanding borrowings of $426.5 million under our Truist Credit Facility, $150.0 million of 2026 Notes and $165.0 million of 2026 Notes-2. Our consolidated debt outstanding was $741.5 million and had a weighted average annual interest rate at the time of 6.1%, exclusive of the fee on undrawn commitment on our Truist Credit Facility. This example is for illustrative purposes only, and actual interest rates on our Truist Credit Facility or any future borrowings are likely to fluctuate. The costs associated with our borrowings, including any increase in the management fee or incentive fee payable to our Investment Adviser, are and will be borne by our common stockholders.

The following table is designed to illustrate the effect on the return to a holder of our common stock of the leverage created by our use of borrowing as of September 30, 2025 of 55% of total assets (including such borrowed funds), at the current interest rate at the time of 5.5% and assumes hypothetical annual returns on our portfolio of minus 10 to plus 10 percent. The table also assumes that we will maintain a constant level of leverage and weighted average interest rate. The amount of leverage and cost of borrowing that we use will vary from time to time. As can be seen, leverage generally increases the return to stockholders when the portfolio return is positive and decreases return when the portfolio return is negative. Actual returns may be greater or less than those appearing in the table.

Assumed return on portfolio (net of expenses) (1)	(10.0	)	%	(5.0	)	%	-		%	10.0	%	5.0	%
Corresponding return to common stockholders (2)	(37.9	)	%	(23.4	)	%	(8.9	)	%	20.2	%	5.7	%

The assumed portfolio return is required by regulation of the SEC and is not a prediction of, and does not represent, our projected or actual performance.
In order to compute the “corresponding return to common stockholders,” the “assumed return on portfolio” is multiplied by the total value of our assets at the beginning of the period to obtain an assumed return to us. From this amount, all interest expense expected to be accrued during the period is subtracted to determine the return available to stockholders. The return available to stockholders is then divided by the total value of our net assets as of the beginning of the period to determine the “corresponding return to common stockholders.”

We may in the future determine to fund a portion of our investments with preferred stock, which is another form of leverage and would magnify the potential for loss and the risks of investing in us.

Preferred stock, which is another form of leverage, has the same risks to our common stockholders as borrowings because the distributions on any preferred stock we issue must be cumulative. If we issue preferred securities they would rank “senior” to common stock in our capital structure. Payment of distributions on, and repayment of the liquidation preference of, such preferred stock would typically take preference over any distributions or other payments to our common stockholders. Also, preferred stockholders are not typically subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference. Furthermore, preferred stockholders would have separate voting rights and may have rights, preferences or privileges more favorable than those of our common stockholders. Also, the issuance of preferred securities could have the adverse effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders or otherwise be in the best interest of stockholders.

We may in the future determine to fund a portion of our investments with debt securities, which would magnify the potential for loss and the risks of investing in us.

As a result of the borrowings under our Truist Credit Facility, and issuance of our 2026 Notes and 2026 Notes-2, we are exposed to typical risks associated with leverage, including an increased risk of loss and an increase in expenses, which are ultimately borne by our common stockholders. Payment of interest on such debt securities must take preference over any other distributions or other payments to our common stockholders. If we issue additional debt securities in the future, it is likely that such securities will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. In addition, such securities may be rated by rating agencies, and in obtaining a rating for such securities, we may be required to abide by operating and investment guidelines that could further restrict our operating flexibility. Furthermore, any cash that we use to service our indebtedness would not be available for the payment of distributions to our common stockholders.

Our credit ratings may not reflect all risks of an investment in our debt securities.

Our credit ratings, if any, are an assessment of our ability to pay our obligations. Consequently, real or anticipated changes in our credit ratings will generally affect the market value of any publicly issued debt securities. Our credit ratings may not reflect the potential impact of risks related to market conditions or other factors discussed above on the market value of, or trading market for, any publicly issued debt securities. Rating agencies have reviewed, and may continue to review, our credit ratings and those of other business development companies in light of the SBCAA as well as any corresponding changes to asset coverage ratios and, in certain cases, downgrade such ratings. Such a downgrade in our credit ratings may adversely affect our securities.

A downgrade, suspension or withdrawal of the credit rating assigned by a rating agency to us, our 2026 Notes or our 2026 Notes-2, if any, or change in the debt markets could cause the liquidity or market value of our 2026 Notes or our 2026 Notes-2 to decline significantly.

Our credit ratings are an assessment by rating agencies of our ability to pay our debts when due. Consequently, real or anticipated changes in our credit ratings will generally affect the market value of our 2026 Notes or our 2026 Notes-2. Our credit ratings may not reflect the potential impact of risks relating to the structure or marketing of our 2026 Notes or our 2026 Notes-2. Credit ratings are not a recommendation to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. Neither we nor any underwriter undertakes any obligation to maintain our credit ratings or to advise holders of our 2026 Notes or our 2026 Notes-2 of any changes in our credit ratings. There can be no assurance that our credit ratings will remain for any given period of time or that such credit ratings will not be lowered or withdrawn entirely by any of the rating agencies if in their respective judgments future circumstances relating to the basis of the credit rating, such as adverse changes in our Company, so warrant. The conditions of the financial markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the future.

Market conditions may make it difficult to extend the maturity of or refinance our existing indebtedness and any failure to do so could have a material adverse effect on our business.

Our Truist Credit Facility matures in July 2027, our 2026 Notes mature in November 2026 and our 2026 Notes-2 mature in May 2026. We utilize proceeds from the Truist Credit Facility, our 2026 Notes, our 2026 Notes-2 to make investments in our portfolio companies. The duration of many of our investments exceeds or will exceed the duration of our indebtedness under our Truist Credit Facility, our 2026 Notes and our 2026 Notes-2. This means that we will have to extend the maturity of our Truist Credit Facility or refinance our indebtedness in order to avoid selling investments at maturity of any of our debt investments, at which time such sales may be at prices that are disadvantageous to us, which could materially damage our business. In addition, future market conditions may affect our ability to renew or refinance our Truist Credit Facility, our 2026 Notes and our 2026 Notes-2 on terms as favorable as those in our existing indebtedness. If we fail to extend or refinance the indebtedness by the time it becomes due and payable, holders of the debt and/or the administrative agent may elect to exercise various remedies, including the sale of all or a portion of the collateral securing such indebtedness, subject to certain restrictions, any of which could have a material adverse effect on our business, financial condition and results of operations. The illiquidity of our investments may make it difficult for us to sell such investments. If we are required to sell our investments on short-term notice, we may not receive the value that we have recorded for such investments, and this could materially affect our results of operations.

There are significant potential conflicts of interest which could impact our investment returns.

The professionals of the Investment Adviser and Administrator may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do or of investment funds managed by affiliates of us that currently exist or may be formed in the future. The Investment Adviser and Administrator may be engaged by such funds at any time and without the prior approval of our stockholders or our board of directors. Our board of directors monitors any potential conflict that may arise upon such a development. Accordingly, if this occurs, they may have obligations to investors in those entities, the fulfillment of which might not be in the best interests of us or our stockholders. Currently, the executive officers and directors, as well as the current senior investment professionals of the Investment Adviser, may serve as officers and directors of our controlled affiliates and affiliated funds. In addition, we note that any affiliated investment vehicles currently formed or formed in the future and managed by the Investment Adviser or its affiliates may have overlapping investment objectives with our own and, accordingly, may invest in asset classes similar to those targeted by us. As a result, the Investment Adviser may face conflicts in allocating investment opportunities between us and such other entities. Although the Investment Adviser will endeavor to allocate investment opportunities in a fair and equitable manner, it is possible that, in the future, we may not be given the opportunity to participate in investments made by investment funds managed by the Investment Adviser or an investment manager affiliated with the Investment Adviser. In any such case, when the Investment Adviser identifies an investment, it is forced to choose which investment fund should make the investment. We may co-invest on a concurrent basis with any other affiliates that the Investment Adviser currently has or forms in the future, subject to compliance with applicable regulations and regulatory guidance, our exemptive relief and our allocation procedures.

In the ordinary course of our investing activities, we pay investment advisory and incentive fees to the Investment Adviser, and reimburse the Investment Adviser for certain expenses it incurs. As a result, investors in our common stock invest on a “gross” basis and receive distributions on a “net” basis after expenses, resulting in a lower rate of return than an investor might achieve through direct investments. Accordingly, there may be times when the management team of the Investment Adviser has interests that differ from those of our stockholders, giving rise to a conflict. For example, the Investment Adviser may seek to invest in more speculative investments in order to increase its incentive fee, which practice could result in higher investment losses, particularly during economic downturns.

We have entered into the License Agreement with PennantPark Investment Advisers, pursuant to which the Investment Adviser has agreed to grant us a royalty-free non-exclusive license to use the name “PennantPark.” The License Agreement will expire (i) upon expiration or termination of the Investment Management Agreement, (ii) if the Investment Adviser ceases to serve as our investment adviser, (iii) by either party upon 60 days’ written notice or (iv) by the Investment Adviser at any time in the event we assign or attempt to assign or sublicense the License Agreement or any of our rights or duties thereunder without the prior written consent of the Investment Adviser. Other than with respect to this limited license, we have no legal right to the “PennantPark” name.

In addition, we pay PennantPark Investment Administration, an affiliate of the Investment Adviser, our allocable portion of overhead and other expenses incurred by PennantPark Investment Administration in performing its obligations under the Administration Agreement, including rent and our allocable portion of the cost of our Chief Financial Officer and Chief Compliance Officer and their respective staffs. These arrangements may create conflicts of interest that our board of directors must monitor.

We may experience fluctuations in our quarterly results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including the interest rate payable on the debt securities we acquire, the default rate on such securities, the level of our expenses, variations in, and the timing of the recognition of, realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. However, as a result of our irrevocable election to apply the fair value option to our Truist Credit Facility, future decreases of fair value of our debt is expected to have a corresponding increase to our NAV. Similarly, future increases in the fair value of our debt may have a corresponding decrease to our NAV. Any future indebtedness that we elect the fair value option for may have similar effects on our NAV as our Truist Credit Facility. This is expected to mitigate volatility in our earnings and NAV. As a result, results for any period should not be relied upon as being indicative of future performance.

Holders of any preferred stock that we may issue will have the right to elect members of the board of directors and have class voting rights on certain matters.

The 1940 Act requires that holders of shares of preferred stock must be entitled as a class to elect two directors at all times and to elect a majority of the directors if distributions on such preferred stock are in arrears by two years or more, until such arrearage is eliminated. In addition, certain matters under the 1940 Act require the separate vote of the holders of any issued and outstanding preferred stock, including conversion to open-end status and, accordingly, preferred stockholders could veto any such changes in addition to any ability of common and preferred stockholders, voting together as a single class, to veto such matters. Restrictions imposed on the declarations and payment of distributions to the holders of our common stock and preferred stock, both by the 1940 Act and by requirements imposed by rating agencies, might impair our ability to maintain our qualification as a RIC for U.S. federal income tax purposes, which could have a material adverse effect on our business, financial condition and results of operations.

If we issue preferred stock, debt securities or convertible debt securities, the NAV and market value of our common stock may become more volatile.

We cannot assure you that the issuance of preferred stock and/or debt securities would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock, debt securities and/or convertible debt would likely cause the NAV and market value of our common stock to become more volatile. If the dividend rate on the preferred stock, or the interest rate on the debt securities, were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of our common stock would be reduced or entirely eliminated. If the dividend rate on the preferred stock, or the interest rate on the debt securities, were to exceed the net rate of return on our portfolio, the use of leverage would result in a lower rate of return to the holders of common stock than if we had not issued the preferred stock or debt securities. Any decline in the NAV of our investment would be borne entirely by the holders of our common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in NAV to the holders of our common stock than if we were not leveraged through the issuance of preferred stock, debt securities or convertible debt. This decline in NAV would also tend to cause a greater decline in the market price for our common stock.

There is also a risk that, in the event of a sharp decline in the value of our net assets, we would be in danger of failing to maintain required asset coverage ratios or other covenants which may be required by the preferred stock, debt securities and/or convertible debt or risk a downgrade in the ratings of the preferred stock, debt securities and/or convertible debt or our current investment income might not be sufficient to meet the dividend requirements on the preferred stock or the interest payments on the debt securities. In order to counteract such an event, we might need to liquidate investments in order to fund redemption of some or all of the preferred stock, debt securities or convertible debt. In addition, we would pay (and the holders of our common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, debt securities, convertible debt or any combination of these securities. Holders of preferred stock, debt securities, convertible debt or any combination of these securities may have different interests than holders of common stock and may at times have disproportionate influence over our business.

The trading market or market value of any publicly issued debt or convertible debt securities may be volatile.

If we publicly issue debt or convertible debt securities, they initially will not have an established trading market. We cannot assure investors that a trading market for our publicly issued debt or convertible debt securities would develop or be maintained if developed. In addition to our creditworthiness, many factors may have a material adverse effect on the trading market for, and market value of, our publicly issued debt or convertible debt securities.

These factors include the following:

the time remaining to the maturity of these debt securities;
the outstanding principal amount of debt securities with terms identical or similar to these debt securities;
the supply of debt securities trading in the secondary market, if any;
the redemption, repayment or convertible features, if any, of these debt securities;
the level, direction and volatility of market interest rates; and
market rates of interest higher or lower than rates borne by the debt securities.

There also may be a limited number of buyers for our debt securities. This too may have a material adverse effect on the market value of the debt securities or the trading market for the debt securities. Our debt securities may include convertible features that cause them to more closely bear risks associated with an investment in our common stock.

Terms relating to debt redemption may have a material adverse effect on the return on any debt securities.

If we issue debt securities that are redeemable at our option, we may choose to redeem the debt securities at times when prevailing interest rates are lower than the interest rate paid on the debt securities. In addition, if the debt securities are subject to mandatory redemption, we may be required to redeem the debt securities at times when prevailing interest rates are lower than the interest rate paid on the debt securities. In this circumstance, a holder of our debt securities may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the debt securities being redeemed.

If we issue subscription rights or warrants for our common stock, your interest in us may be diluted as a result of such rights or warrants offering.

Stockholders who do not fully exercise rights or warrants issued to them in an offering of subscription rights or warrants to purchase our common stock should expect that they will, at the completion of an offering, own a smaller proportional interest in us than would otherwise be the case if they fully exercised their rights or warrants. We cannot state precisely the amount of any such dilution in share ownership because we do not know what proportion of the common stock would be purchased as a result of any such offering.

In addition, if the subscription price or warrant exercise price is less than our NAV per share of common stock at the time of an offering, then our stockholders would experience an immediate dilution of the aggregate NAV of their shares as a result of the offering. The amount of any such decrease in NAV is not predictable because it is not known at this time what the subscription price, warrant exercise price or NAV per share will be on the expiration date of such rights offering or what proportion of our common stock will be purchased as a result of any such offering.

Changes in laws or regulations governing our operations or those of our portfolio companies may adversely affect our business.

We and our portfolio companies are subject to laws and regulations at the U.S. federal, state and local levels and in some cases, foreign levels. These laws and regulations, as well as their interpretation, may change from time to time, and new laws, regulations and interpretations may come into effect. Accordingly, any change in law and regulations, changes in administration or control U.S. Congress, changes in interpretations, or newly enacted laws or regulations could have a material adverse effect on our business or the business of our portfolio companies. See "Business—Regulation" for more information.

Over the past several years, there also has been increasing regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some portion of the non-bank financial sector may be subject to new regulation. While it cannot be known at this time whether any regulation will be implemented or what form it will take, increased regulation of non-bank lending could be materially adverse to our business, financial conditions and result of operations. We may experience fluctuations in our quarterly results.

The United States may also potentially withdraw from or renegotiate various trade agreements and take other actions that would change current trade policies of the United States. We cannot predict which, if any, of these actions will be taken or, if taken, their effect on the financial stability of the United States. Such actions could have a material adverse effect on our business, financial condition and results of operations.

Our board of directors may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

Our board of directors has the authority to modify or waive certain of our operating policies and strategies without prior notice and without stockholder approval (except as required by the 1940 Act). However, absent stockholder approval, under the 1940 Act, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and value of our common stock. Nevertheless, the effects may adversely affect our business and impact our ability to make distributions.

Our business and operations could be negatively affected if we become subject to stockholder activism, which could cause us to incur significant expense, hinder the execution of our investment strategy or impact our stock price.

Stockholder activism, which could take many forms, including making public demands that we consider certain strategic alternatives, engaging in public campaigns to attempt to influence our corporate governance and/or our management, and commencing proxy contests to attempt to elect the activists’ representatives or others to our board of directors, or arise in a variety of situations, has impacted the BDC space. While we are currently not subject to any stockholder activism, due to the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of stockholder activism. Stockholder activism could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such stockholder activism could give rise to perceived uncertainties as to our future and adversely affect our relationships with service providers and our portfolio companies. Also, we may be required to incur significant legal and other expenses related to any activist stockholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any stockholder activism.

RISKS RELATING TO THE ILLIQUID NATURE OF OUR PORTFOLIO ASSETS

We invest in illiquid assets, and our valuation procedures with respect to such assets may result in recording values that are materially different than the values we ultimately receive upon disposition of such assets.

All of our investments are recorded using broker or dealer quotes, if available, or at fair value as determined in good faith by our board of directors. We expect that most, if not all, of our investments (other than cash and cash equivalents) and the fair value of the Truist Credit Facility will be classified as Level 3 under the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or ASC 820. This means that the portfolio valuations will be based on unobservable inputs and our own assumptions about how market participants would price the asset or liability. We expect that inputs into the determination of fair values of our portfolio investments and borrowings under our Truist Credit Facility will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by such a disclaimer materially reduces the reliability of such information. As a result, there will be uncertainty as to the value of our portfolio investments.

Determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. In determining fair value in good faith, we generally obtain financial and other information from portfolio companies, which may represent unaudited, projected or pro forma financial information. Unlike banks, we are not permitted to provide a general reserve for anticipated loan losses; we are instead required by the 1940 Act to specifically fair value each individual investment on a quarterly basis. We record unrealized appreciation if we believe that our investment has appreciated in value. Likewise, we record unrealized depreciation if we believe that our investment has depreciated in value. We adjust quarterly the valuation of our portfolio to reflect our board of directors’ determination of the fair value of each investment in our portfolio. Any changes in fair value are recorded on our Consolidated Statements of Operations as net change in unrealized appreciation or depreciation.

All of our investments are recorded at fair value as determined in good faith by our board of directors. Our board of directors uses the services of nationally recognized independent valuation firms to aid it in determining the fair value of our investments. The factors that may be considered in fair value pricing of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and cash flows, the markets in which the

portfolio company does business, comparison to publicly traded companies and other relevant factors. Because valuations may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the value received in an actual transaction. Additionally, valuations of private securities and private companies are inherently uncertain. Our NAV could be adversely affected if our determinations regarding the fair value of our investments were materially lower than the values that we ultimately realize upon the disposal of such investments.

The lack of liquidity in our investments may adversely affect our business.

We may acquire our investments directly from the issuer in privately negotiated transactions. Substantially all of these securities are subject to legal and other restrictions on resale or are otherwise less liquid than publicly traded securities. We typically exit our investments when the portfolio company has a liquidity event such as a sale, refinancing, or initial public offering of the company, but we are generally not required to do so.

The illiquidity of our investments may make it difficult or impossible for us to sell such investments if the need arises, particularly at times when the market for illiquid securities is substantially diminished. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments, which could have a material adverse effect on our business, financial condition and results of operations. In addition, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

Investments purchased by us that are liquid at the time of purchase may subsequently become illiquid due to events relating to the issuer of the investments, market events, economic conditions or investor perceptions. Domestic and foreign markets are complex and interrelated, so that events in one sector of the world markets or economy, or in one geographical region, can reverberate and have materially negative consequences for other market, economic or regional sectors in a manner that may not be foreseen and which may materially harm our business.

A general disruption in the credit markets could materially damage our business.

We are susceptible to the risk of significant loss if we are forced to discount the value of our investments in order to provide liquidity to meet our debt maturities. Our borrowings under our Truist Credit Facility are collateralized by the assets in our investment portfolio (excluding assets held by SBIC II). A general disruption in the credit markets could result in diminished demand for our securities. In addition, with respect to over-the-counter traded securities, the continued viability of any over-the-counter secondary market depends on the continued willingness of dealers and other participants to purchase the securities.

If the fair value of our assets declines substantially, we may fail to maintain the asset coverage ratio stipulated by the 1940 Act, which could, in turn, cause us to lose our status as a BDC and materially impair our business operations. Our liquidity could be impaired further by an inability to access the capital markets or to draw down our Truist Credit Facility. These situations may arise due to circumstances that we may be unable to control, such as a general disruption in the credit markets, a severe decline in the value of the U.S. dollar, an economic downturn or recession or an operational problem that affects our counterparties or us, and could materially damage our business.

We may invest in over-the-counter securities, which have and may continue to face liquidity constraints, to provide us with liquidity.

The market for over-the-counter traded securities has and may continue to experience limited liquidity and other weakness as the viability of any over-the-counter secondary market depends on the continued willingness of dealers and other participants to purchase the securities.

RISKS RELATING TO OUR INVESTMENTS

Our investments in prospective portfolio companies may be risky, and you could lose all or part of your investment.

We intend to invest primarily in first lien secured debt, second lien secured debt, subordinated debt and selected equity investments issued by U.S. and foreign middle-market companies.

First Lien Secured Debt: When we extend first lien secured debt, we will generally take a security interest in the available assets of these portfolio companies, including the equity interests of their subsidiaries, although this may not always be the case. We expect this security interest, if any, to help mitigate the risk that we will not be repaid. However, there is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital. Also, in some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a first lien secured debt investment is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies.
Second Lien Secured Debt: Our second lien secured debt usually ranks junior in priority of payment to first lien secured debt. Second lien secured debt holds a second priority with regard to right of payment in the event of insolvency. Second lien secured debt ranks senior to subordinated debt and common and preferred equity in borrowers’ capital structures. This may result in an above average amount of risk and volatility or a loss of principal. These investments may involve additional risks that could adversely affect our investment returns. To the extent interest payments associated with such debt are deferred, such debt may be subject to greater fluctuations in valuations, and such debt could subject us and our stockholders to non-cash income. Since we may not receive cash interest or principal prior to the maturity of some of our second lien secured debt investments, such investments may be of greater risk than cash paying loans.
Subordinated Debt: Our subordinated debt usually ranks junior in priority of payment to first lien secured debt and second lien secured debt, and are often unsecured. As such, other creditors may rank senior to us in the event of insolvency. Subordinated debt ranks senior to common and preferred equity in borrowers’ capital structures. This may result in an above average amount of risk and volatility or a loss of principal. These investments may involve additional risks that could adversely affect our investment returns. To the extent interest payments associated with such debt are deferred, such debt may be subject to greater fluctuations in valuations, and such debt could subject us and our stockholders to non-cash income. Since we may not receive cash interest or principal prior to the maturity of some of our subordinated debt investments, such investments may be of greater risk than cash paying loans.
Equity Investments: We have made and expect to continue to make select equity investments, all of which are subordinated to debt investments. In addition, when we invest in first lien secured debt, second lien secured debt or subordinated debt, we may acquire warrants to purchase equity investments from time to time. Our goal is ultimately to dispose of these equity investments and realize gains upon our disposition of such interests. However, the equity investments we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity investments, and any gains that we do realize on the disposition of any equity investments may not be sufficient to offset any other losses we experience. In addition, many of the equity securities in which we invest may not pay dividends on a regular basis, if at all. Furthermore, we may hold equity investments in partnerships
through a taxable subsidiary for federal income tax purposes. Upon sale or exit of such investment, we may pay taxes at regular corporate tax rates, which will reduce the amount of gains or dividends available for distributions to our stockholders.

In addition, investing in middle-market companies involves a number of significant risks, including:

companies may be highly leveraged, have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment;
they typically have shorter operating histories, more limited publicly available information, narrower product lines, more concentration of revenues from customers and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and changing market conditions, as well as general economic downturns;
they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us;
they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. In addition, our executive officers, directors and our Investment Adviser may be named as defendants in litigation arising from our investments in the portfolio companies; and
they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to refinance their outstanding indebtedness upon maturity.

Under the 1940 Act, we may invest up to 30% of our assets in investments that are not qualifying assets for BDCs. If we do not invest a sufficient portion of our assets in qualifying assets, we could be precluded from investing in assets that we deem to be attractive.

As a BDC, we may not acquire any asset other than qualifying assets, as defined under the 1940 Act, unless at the time the acquisition is made such qualifying assets represent at least 70% of the value of our total assets. Qualifying assets include investments in U.S. operating companies whose securities are not listed on a national securities exchange and companies listed on a national securities exchange subject to a maximum market capitalization of $250 million. Qualifying assets also include cash, cash equivalents, government securities and high quality debt securities maturing in one year or less from the time of investment.

We believe that most of our debt and equity investments do and will constitute qualifying assets. However, we may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we have not invested a sufficient portion of our assets in qualifying assets at the time of a proposed investment, we will be prohibited from making any additional investment that is not a qualifying asset and could be forced to forgo attractive investment opportunities. Similarly, these rules could prevent us from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inappropriate times in order to comply with the 1940 Act. If we need to dispose of such investments quickly, it would be difficult to dispose of such investments on favorable terms. For example, we may have difficulty in finding a buyer and, even if we do find a buyer, we may have to sell the investments at a substantial loss.

We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we generally are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer.

We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer, excluding limitations on investments in other investment companies and compliance with the RIC tax regulations. To the extent that we assume large positions in the securities of a small number of issuers, our NAV may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond the Diversification Requirements, we do not have fixed guidelines for portfolio diversification, and our investments could be concentrated in relatively few portfolio companies or industries. Although we are classified as a non-diversified investment company within the meaning of the 1940 Act, we maintain the flexibility to operate as a diversified investment company and have done so for an extended period of time. To the extent that we operate as a non-diversified investment company in the future, we may be subject to greater risk.

Economic recessions or downturns could impair our portfolio companies and harm our operating results.

Many of our portfolio companies are susceptible to economic or industry centric slowdowns or recessions and may be unable to repay debt from us during these periods. Therefore, our non-performing assets are likely to increase, and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions also may decrease the value of collateral securing some of our debt investments and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a material decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing investments and materially harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and potential termination of its debt and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company, and any restructuring could further cause adverse effects on our business. Depending on the facts and circumstances of our investments and the extent of our involvement in the management of a portfolio company, upon the bankruptcy of a portfolio company, a bankruptcy court may recharacterize our debt investments as equity investments and subordinate all or a portion of our claim to that of other creditors. This could occur regardless of how we may have structured our investment. In addition, we cannot assure you that a bankruptcy court would not take actions contrary to our interests.

If we fail to make follow-on investments in our portfolio companies, this could materially impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in order to:

increase or maintain in whole or in part our equity ownership percentage;
exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or
attempt to preserve or enhance the value of our investment.

We have the discretion to make any follow-on investments, subject to the availability of capital resources and regulatory considerations. We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. Any failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful transaction or business. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our concentration of risk, either because we prefer other opportunities, or because we are inhibited by compliance with BDC requirements or the desire to maintain our RIC tax status.

Because we generally do not hold controlling equity interests in our portfolio companies, we are not in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.

Because we generally do not hold controlling equity positions in our portfolio companies, we are subject to the risk that a portfolio company may make business decisions with which we disagree, and the stockholders and management of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity for the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company, and may therefore suffer a decrease in the market value of our investments.

An investment strategy focused primarily on privately held companies, including controlling equity interests, presents certain challenges, including the lack of available or comparable information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.

We have invested and intend to continue to invest primarily in privately held companies. Generally, little public information exists about these companies, and we rely on the ability of our Investment Adviser’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If they are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose value on our investments. Also, privately held companies frequently have less diverse product lines and smaller market presence than larger competitors. These factors could have a material adverse impact on our investment returns as compared to companies investing primarily in the securities of public companies.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies and our portfolio companies may be highly leveraged.

We invest primarily in first lien secured debt, second lien secured debt, subordinated debt and equity investments issued by our portfolio companies. The portfolio companies usually will have, or may be permitted to incur, other debt that ranks equally with, or senior to, our investments, and they may be highly leveraged. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to our debt investments. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying such senior creditors, the portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt securities in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Our incentive fee may induce the Investment Adviser to make speculative investments.

The incentive fee payable by us to PennantPark Investment Advisers may create an incentive for PennantPark Investment Advisers to make investments on our behalf that are risky or more speculative than would be the case in the absence of such compensation arrangement. The incentive fee payable to our Investment Adviser is calculated based on a percentage of our NAV. This may encourage our Investment Adviser to use leverage to increase the return on our investments. Under certain circumstances, the use of leverage may increase the likelihood of default, which would disfavor the holders of our common stock. In addition, our Investment Adviser will receive the incentive fee based, in part, upon net capital gains realized on our investments. Unlike that portion of the incentive fee based on income, there is no hurdle applicable to the portion of the incentive fee based on net capital gains. As a result, the Investment Adviser may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns.

The part of our incentive fee payable by us to PennantPark Investment Advisers that relates to net investment income is computed and paid on income that has been accrued but that has not been received in cash. PennantPark Investment Advisers is not obligated to reimburse us for any such incentive fees even if we subsequently incur losses or never receive in cash the deferred income that was previously accrued. As a result, there is a risk that we will pay incentive fees with respect to income that we never receive in cash.

Any investments in distressed debt may not produce income and may require us to bear large expenses in order to protect and recover our investment.

Distressed debt investments may not produce income and may require us to bear certain additional expenses in order to protect and recover our investment. Therefore, to the extent we invest in distressed debt, our ability to achieve current income for our stockholders may be diminished. We also will be subject to significant uncertainty as to when, in what manner and for what value the distressed debt in which we invest will eventually be satisfied (e.g., through liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed debt securities or a payment of some amount in satisfaction of the obligation). In addition, even if an exchange offer is made or plan of reorganization is adopted with respect to distressed debt we hold, there can be no assurance that the securities or other assets received by us in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made. Moreover, any securities received by us upon completion of an exchange offer or plan of reorganization may be restricted as to resale. If we participate in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of distressed debt, we may be restricted from disposing of such securities.

Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.

Our investment strategy contemplates potential investments in securities of companies located outside of the United States. Investments in securities of companies located outside of the United States would not be qualifying assets under Section 55(a) of the 1940 Act. Investing in companies located outside of the United States may

expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, political, economic and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.

Although most of our investments will be U.S. dollar-denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation, and economic and political developments. We may employ hedging techniques such as using our Truist Credit Facility’s multicurrency capability to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk or, that if we do, such strategies will be effective.

We may make investments that cause our stockholders to bear investment advisory fees and other expenses on such investments in addition to our management fees and expenses.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies and companies that would be investment companies but are excluded from the definition of an investment company provided in Section 3(c) of the 1940 Act. To the extent we so invest, we will bear our ratable share of any such investment company’s expenses, including management and performance fees. We will also remain obligated to pay investment advisory fees, consisting of a base management fee and an incentive fee, to PennantPark Investment Advisers with respect to investments in the securities and instruments of other investment companies under our Investment Management Agreement. With respect to any such investments, each of our stockholders will bear his or her share of the investment advisory fees of PennantPark Investment Advisers as well as indirectly bearing the investment advisory fees and other expenses of any investment companies in which we invest.

We may be obligated to pay our Investment Adviser incentive compensation even if we incur a loss.

Our Investment Adviser is entitled to incentive compensation for each fiscal quarter in an amount equal to a percentage of the excess of our investment income for that quarter (before deducting incentive compensation, net operating losses and certain other items) above a threshold return for that quarter. Our Pre-Incentive Fee Net Investment Income for incentive compensation purposes excludes realized and unrealized capital losses that we may incur in the fiscal quarter, even if such capital losses result in a net loss on our Consolidated Statements of Operations for that quarter. Thus, we may be required to pay the Investment Adviser incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio, NAV or we incur a net loss for that quarter. In addition, increases in interest rates may increase the amount of incentive fees we pay to the Investment Adviser even though our performance relative to the market has not increased.

We may invest in derivatives or other assets that expose us to certain risks, including market risk, liquidity risk, counterparty risk, operational and legal risk and other risks similar to those associated with the use of leverage.

The Company may invest in derivatives and other assets that are subject to many of the same types of risks related to the use of leverage. Derivative transactions, if any, will generally create leverage for the Company and involve significant risks. The primary risks related to derivative transactions include counterparty, correlation, liquidity, leverage, volatility, over-the-counter trading, operational and legal risks. In addition, a small investment in derivatives could have a large potential impact on our performance, effecting a form of investment leverage on our portfolio. In certain types of derivative transactions, the Company could lose the entire amount of its investment; in other types of derivative transactions the potential loss is theoretically unlimited.

Under SEC Rule 18f-4 under the 1940 Act ("Rule 18f-4"), related to use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies, the Company is permitted to enter into derivatives and other transactions that create future payment or delivery obligations, including short sales, notwithstanding the senior security provision of the 1940 Act if its complies with certain value-at-risk leverage limits and derivatives risk management program and board oversight and reporting requirements or comply with a "limited derivatives users" exception. Rule 18f-4 also permits the Company to enter into reverse repurchase agreements or similar financing transactions notwithstanding the senior security provision of the 1940 Act if the Company aggregates the amount of indebtedness associated with our reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the asset coverage ratios as discussed herein. In addition, the Company is permitted to invest in a security on a when-issued or forward-settling basis, or with a non-standard settlement cycle, and the transaction will be deemed not to involve a senior security under the 1940 Act, provided that (i) the Company intends to physically settle the transaction and (ii) the transaction will settle within 35 days of its trade date (the "Delayed-Settlement Securities Provision"). The Company may otherwise engage in such transaction as a "derivatives transaction" for purposes of compliance with the rule. Furthermore, the Company is permitted to enter into an unfunded commitment agreement, and such unfunded commitment agreement will not be subject to the asset coverage requirements under the 1940 Act, if the Company reasonably believes, at the time it enters into such agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all such agreements as they come due. The Company cannot predict the effects of these requirements

The Company has adopted updated policies and procedures in compliance with Rule 18f-4. The Company expects to qualify as a “limited derivatives user.” Future legislation or rules may modify how the Company treats derivatives and other financial arrangements for purposes of the Company’s compliance with the leverage limitations of the 1940 Act. Future legislation or rules, may modify how leverage is calculated under the 1940 Act and, therefore, may increase or decrease the amount of leverage currently available to the Company under the 1940 Act, which may be materially adverse to the Company and the Company’s Investors.

RISKS RELATING TO AN INVESTMENT IN OUR COMMON STOCK

We may obtain the approval of our stockholders to issue shares of our common stock at prices below the then current NAV per share of our common stock. If we receive such approval from stockholders in the future, we may issue shares of our common stock at a price below the then current NAV per share of common stock. Any such issuance could materially dilute your interest in our common stock and reduce our NAV per share.

We may seek to obtain from our stockholders and they may approve a proposal that authorizes us to issue shares of our common stock at prices below the then current NAV per share of our common stock in one or more offerings for a 12-month period. Such approval would allow us to access the capital markets in a way that we were previously unable to do as a result of restrictions that, absent stockholder approval, apply to BDCs under the 1940 Act.

Any sale or other issuance of shares of our common stock at a price below NAV per share will result in an immediate dilution to your interest in our common stock and a reduction of our NAV per share. This dilution would occur as a result of a proportionately greater decrease in a stockholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. Because the number of future shares of common stock that may be issued below our NAV per share and the price and timing of such issuances are not currently known, we cannot predict the actual dilutive effect of any such issuance. We also cannot determine the resulting reduction in our NAV per share of any such issuance at this time. We caution you that such effects may be material, and we undertake to describe all the material risks and dilutive effects of any offerings we make at a price below our then current NAV in the future in a prospectus supplement issued in connection with any such offering.

The determination of NAV in connection with an offering of shares of common stock will involve the determination by our board of directors or a committee thereof that we are not selling shares of our common stock at a price below the then current NAV of our common stock at the time at which the sale is made or otherwise in violation of the 1940 Act, unless we have previously received the consent of the majority of our common stockholders to do so and the board of directors decides such an offering is in the best interests of our common stockholders. Whenever we do not have current stockholder approval to issue shares of our common stock at a price per share

below our then current NAV per share, the offering price per share (after any distributing commission or discount) will equal or exceed our then current NAV per share, based on the value of our portfolio securities and other assets determined in good faith by our board of directors as of a time within 48 hours (excluding Sundays and holidays) of the sale.

There is a risk that our stockholders may not receive distributions or that our distributions may not grow over time.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. In addition, due to the asset coverage ratio requirements applicable to us as a BDC, we may be limited in our ability to make distributions. Further, if more stockholders opt to receive cash distributions rather than participate in our dividend reinvestment plan, we may be forced to liquidate some of our investments and raise cash in order to make distribution payments, which could materially harm our business. Finally, to the extent we make distributions to stockholders which include a return of capital, that portion of the distribution essentially constitutes a return of the stockholders’ investment. Although such return of capital may not be taxable, such distributions may increase an investor’s tax liability for capital gains upon the future sale of our common stock.

Investing in our shares may involve an above average degree of risk.

The investments we make in accordance with our investment objectives may result in a higher amount of risk and volatility than alternative investment options or loss of principal. Our investments in portfolio companies may be highly speculative and aggressive and, therefore, an investment in our shares may not be suitable for someone with lower risk tolerance.

Sales of substantial amounts of our securities may have an adverse effect on the market price of our securities.

Sales of substantial amounts of our securities, or the availability of such securities for sale, could adversely affect the prevailing market prices for our securities. If this occurs and continues it could impair our ability to raise additional capital through the sale of securities should we desire to do so.

We may allocate the net proceeds from any offering of our securities in ways with which you may not agree.

We have significant flexibility in investing the net proceeds of any offering of our securities and may use the net proceeds from an offering in ways with which you may not agree or for purposes other than those contemplated at the time of the offering.

Our shares may trade at discounts from NAV or at premiums that are unsustainable over the long term.

Shares of BDCs may trade at a market price that is less than the NAV that is attributable to those shares. Our shares have traded above and below our NAV. Our shares closed on The New York Stock Exchange at $6.71 and $6.99 on September 30, 2025 and 2024, respectively. Our NAV per share was $7.11 and $7.56, respectively, as of the same dates. The possibility that our shares of common stock will trade at a discount from NAV or at a premium that is unsustainable over the long term is separate and distinct from the risk that our NAV will decrease. It is not possible to predict whether our shares will trade at, above or below NAV in the future.

The market price of our common stock may fluctuate significantly.

The market price and liquidity of the market for shares of our common stock may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;
changes in regulatory policies or tax guidelines, particularly with respect to RICs, BDCs or SBICs;
any loss of our BDC or RIC status;
changes in earnings or variations in operating results;
changes in prevailing interest rates;
changes in the value of our portfolio of investments;
any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;
the inability of our Investment Adviser to employ additional experienced investment professionals or the departure of any of the Investment Adviser’s key personnel;
operating performance of companies comparable to us;
general national and international economic trends and other external factors;
general price and volume fluctuations in the stock markets, including as a result of short sales;
conversion features of subscription rights, warrants or convertible debt; and
loss of a major funding source.

Since our initial listing on The Nasdaq Global Select Market to our voluntarily withdrawal of the principal listing of common shares from the Nasdaq Stock Market LLC effective at market close on April 13, 2022 and subsequent listing and trading of the Company's common stock on the New York Stock Exchange, which commenced April 14, 2022, our shares of common stock have traded at a wide range of prices. We can offer no assurance that our shares of common stock will not display similar volatility in future periods.

We may be unable to invest the net proceeds raised from offerings on acceptable terms, which would harm our financial condition and operating results.

Until we identify new investment opportunities, we intend to either invest the net proceeds of future offerings in cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less or use the net proceeds from such offerings to reduce then-outstanding obligations under our Truist Credit

Facility or any future credit facility. We cannot assure you that we will be able to find enough appropriate investments that meet our investment selection criteria or that any investment we complete using the proceeds from an offering will produce a sufficient return.

You may have current tax liabilities on distributions you reinvest in our common stock.

Under the dividend reinvestment plan, if you own shares of our common stock registered in your own name, you will have all cash distributions automatically reinvested in additional shares of our common stock unless you opt out of the dividend reinvestment plan by delivering a written notice to the plan administrator prior to the record date of the next dividend or distribution. If you have not “opted out” of the dividend reinvestment plan, you will be deemed to have received, and for federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, you may have to use funds from other sources to pay your income tax liabilities on the value of the common stock received. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Distributions” for more information.

There is a risk that our common stockholders may receive our stock as distributions in which case they may be required to pay taxes in excess of the cash they receive.

We may distribute our common stock as a dividend of our taxable income and a stockholder could receive a portion of the dividends declared and distributed by us in shares of our common stock with the remaining amount in cash. Revenue Procedures issued by the IRS allow a publicly offered regulated investment company (including a BDC) to distribute its own stock as a dividend for the purpose of fulfilling its distribution requirements, if certain conditions are satisfied. As long as a portion of such dividend is paid in cash (which portion may be as low as 20% of such dividend) and certain requirements are met, the entire distribution will be treated as a dividend for U.S. federal income tax purposes. As a result, a stockholder will be considered to have recognized dividend income generally equal to the fair market value of the stock paid by us plus cash received with respect to such dividend. The total dividend declared would be taxable income to a stockholder even though he or she may only receive a relatively small portion of the dividend in cash to pay any taxes due on the dividend. We have not elected to distribute stock as a dividend but reserve the right to do so.

Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.

The Maryland General Corporation Law, our charter and our bylaws contain provisions that may discourage, delay or make more difficult a change in control of us or the removal of our directors. We are subject to the Maryland Business Combination Act, or the Business Combination Act, the application of which is subject to any applicable requirements of the 1940 Act. Our board of directors has adopted a resolution exempting from the Business Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our board, including approval by a majority of our disinterested directors. If the resolution exempting business combinations is repealed or our board does not approve a business combination, the Business Combination Act may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer.

In addition, our bylaws exempt from the Maryland Control Share Acquisition Act acquisitions of our common stock by any person. If we amend our bylaws to repeal the exemption from such act, it may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such an offer. Our bylaws require us to consult with the SEC staff before we repeal such exemption. Also, our charter provides for classifying our board of directors in three classes serving staggered three-year terms, and provisions of our charter authorize our board of directors to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, and to amend our charter, without stockholder approval, to increase or decrease the number of shares of stock that we have authority to issue.

These anti-takeover provisions may inhibit a change of control in circumstances that could give our stockholders the opportunity to realize a premium over the market price for our common stock.

RISKS RELATING TO AN INVESTMENT IN OUR DEBT SECURITIES

The 2026 Notes and the 2026 Notes-2 are unsecured and therefore are effectively subordinated to any secured indebtedness we have currently incurred or may incur in the future.

The 2026 Notes and the 2026-2 Notes are not secured by any of our assets or any of the assets of our subsidiaries. As a result, the 2026 Notes and the 2026-2 Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have currently incurred and may incur in the future (or any indebtedness that is initially unsecured to which we subsequently grant security) to the extent of the value of the assets securing such indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness and the secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the 2026 Notes and the 2026-2 Notes. As of September 30, 2025, we had $426.5 million in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility is secured by substantially all of our assets. The indebtedness under the Truist Credit Facility is therefore effectively senior in right of payment to our 2026 Notes and our 2026-2 Notes to the extent of the value of such assets.

The 2026 Notes and the 2026-2 Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.

The 2026 Notes and the 2026-2 Notes are obligations exclusively of PennantPark Investment Corporation and not of any of our subsidiaries. None of our subsidiaries is or acts as a guarantor of the 2026 Notes or the 2026-2 Notes and the 2026 Notes and the 2026-2 Notes are not required to be guaranteed by any subsidiaries we may acquire or create in the future. The assets of any such subsidiaries are not directly available to satisfy the claims of our creditors, including holders of our 2026 Notes and our 2026-2 Notes.

Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of creditors (including holders of preferred stock, if any, of our subsidiaries) will have priority over our equity interests in such subsidiaries (and therefore the claims of our creditors, including holders of the 2026 Notes and the 2026 Notes-2) with respect to the assets of such subsidiaries. Even if we are recognized as a creditor of one or more of our subsidiaries, our claims would still be effectively subordinated to any security interests in the assets of any such subsidiary and to any indebtedness or other liabilities of any such subsidiary senior to our claims. Consequently, the 2026 Notes and the 2026 Notes-2 are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our subsidiaries and any subsidiaries that we may in the future acquire or establish as financing vehicles or otherwise. All of such indebtedness is structurally senior to the 2026 Notes and the 2026 Notes-2. In addition, our subsidiaries may incur substantial additional indebtedness in the future, all of which would be structurally senior to the 2026 Notes and the 2026 Notes-2.

The indenture under which each of the 2026 Notes and the 2026-2 Notes were issued contains limited protection for their respective holders.

The indenture under which each of the 2026 Notes and the 2026 Notes-2 were issued offers limited protection to holders. The terms of the indenture and each of the 2026 Notes and the 2026 Notes-2 do not restrict our or any of our subsidiaries’ ability to engage in, or otherwise be a party to, a variety of corporate transactions,

circumstances or events that could have an adverse impact on each holder’s investment in the 2026 Notes and the 2026 Notes-2. In particular, the terms of the indenture and each of the 2026 Notes and the 2026 Notes-2 will not place any restrictions on our or our subsidiaries’ ability to:

issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to each of the 2026 Notes and the 2026 Notes-2, (2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to each of the 2026 Notes and the 2026 Notes-2 to the extent of the values of the assets securing such debt, (3) indebtedness of ours that is guaranteed by one or more of our subsidiaries and which therefore would rank structurally senior to each of the 2026 Notes and the 2026 Notes-2 and (4) securities, indebtedness or other obligations issued or incurred by our subsidiaries that would be senior in right of payment to our equity interests in our subsidiaries and therefore would rank structurally senior in right of payment to each of the 2026 Notes and the 2026 Notes-2 with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a)(1) and (2) of the 1940 Act or any successor provisions, as such obligations may be amended or superseded, giving effect to any exemptive relief granted to us by the SEC;
pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the 2026 Notes and the 2026 Notes-2;
sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);
enter into transactions with affiliates;
create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions;
make investments; or
create restrictions on the payment of dividends or other amounts to us from our subsidiaries.

In addition, the indenture will not require us to offer to purchase the Notes in connection with a change of control or any other event.

Furthermore, the terms of the indenture and each of the 2026 Notes and the 2026 Notes-2 do not protect their respective holders in the event that we experience changes (including significant adverse changes) in our financial condition, results of operations or credit ratings, as they do not require that we or our subsidiaries adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow or liquidity, except as required under the 1940 Act.

Our ability to recapitalize, incur additional debt and take a number of other actions that are not limited by the terms of the 2026 Notes and the 2026 Notes-2 may have important consequences for their holders, including making it more difficult for us to satisfy our obligations with respect to the 2026 Notes and the 2026 Notes-2 or negatively affecting their trading value.

Certain of our current debt instruments include more protections for their respective holders than the indenture and each of the 2026 Notes and the 2026 Notes-2. In addition, other debt we issue or incur in the future could contain more protections for its holders than the indenture and each of the 2026 Notes, including additional covenants and events of default. The issuance or incurrence of any such debt with incremental protections could affect the market for and trading levels and prices of the 2026 Notes and the 2026 Notes-2, if any.

The optional redemption provision may materially adversely affect your return on the 2026 Notes and the 2026 Notes-2.

The 2026 Notes and the 2026 Notes-2 may be redeemable in whole or in part upon certain conditions at any time, or from time to time, at our option on or after February 1, 2026 or August 1, 2026, respectively. We may choose to redeem the 2026 Notes or the 2026 Notes-2 at times when prevailing interest rates are lower than the interest rate paid on the Notes. In this circumstance, you may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the 2026 Notes or the 2026 Notes-2 being redeemed.

There is no active trading market for the Notes. If an active trading market does not develop for the Notes, you may not be able to sell them.

The Notes are a new issue of debt securities for which currently there is no trading market. We do not intend to list the Notes on any securities exchange or for quotation of the Notes on any automated dealer quotation system. If the Notes are traded after their initial issuance, they may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, general economic conditions, our financial condition, performance and prospects and other factors. The underwriters have advised us that they intend to make a market in the Notes, but they are not obligated to do so. The underwriters may discontinue any market-making in the Notes at any time at their sole discretion. Accordingly, we cannot assure you that a liquid trading market will develop for the Notes, that you will be able to sell your Notes at a particular time or that the price you receive when you sell will be favorable. To the extent an active trading market does not develop, the liquidity and trading price for the Notes may be harmed. Accordingly, you may be required to bear the financial risk of an investment in the Notes for an indefinite period of time.

If we default on our obligations to pay our other indebtedness, we may not be able to make payments on the 2026 Notes or the 2026 Notes-2.

Any default under the agreements governing our indebtedness, including a default under our Truist Credit Facility or under other indebtedness to which we may be a party that is not waived by the required lenders or holders, and the remedies sought by the holders of such indebtedness could make us unable to pay principal, premium, if any, and interest on the 2026 Notes or the 2026 Notes-2 and substantially decrease the market value of such notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on our indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the instruments governing our indebtedness, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders under our Truist Credit Facility or other debt we may incur in the future could elect to terminate their commitments, cease making further loans and institute foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. If our operating performance declines, we may in the future need to seek to obtain waivers from the required lenders under the agreements relating to our Truist Credit Facility or other debt that we may incur in the future to avoid being in default. If we breach our covenants under our Truist Credit Facility or other debt and seek a waiver, we may not be able to obtain a waiver from the required lenders or holders. If this occurs, we would be in default and our lenders or debt holders could exercise their rights as described above, and we could be forced into bankruptcy or liquidation. If we are unable to repay debt, lenders having secured obligations, including the lenders under our Truist Credit Facility, could proceed against the collateral securing the debt. Because our Truist Credit Facility have, and any future debt will likely have, customary cross-default provisions, if the indebtedness thereunder or under any future credit facility is accelerated, we may be unable to repay or finance the amounts due.

FATCA withholding may apply to payments to certain foreign entities.

Payments made under the 2026 Notes or the 2026 Notes-2 to a foreign financial institution or non-financial foreign entity (including such an institution or entity acting as an intermediary) may be subject to a U.S. withholding tax of 30% under the Foreign Account Tax Compliance Act (commonly known as “FATCA”) provisions of the Code. This U.S. withholding tax may apply to certain payments of interest on the 2026 Notes or the 2026 Notes-2 as well as scheduled payments of principal, early redemption, or sale of the 2026 Notes or the 2026 Notes-2, unless the foreign financial institution or non-financial foreign entity complies with certain information reporting, withholding, identification, certification and related requirements imposed by FATCA. Depending upon the status of a holder and the status of an intermediary through which any notes are held, the holder could be subject to this 30% U.S. withholding tax in respect of any interest paid on the notes as well as any proceeds from the sale or other disposition of the notes. Proposed Treasury Regulations, if finalized in their present form, would eliminate the application of this 30% U.S. withholding tax in respect of payments of certain gross proceeds. Pursuant to these proposed Treasury Regulations, we and any other applicable withholding agent may (but are not required to) rely on this proposed change to FATCA withholding until final regulations are issued or until such proposed Treasury Regulations are rescinded. Holders of the 2026 Notes and the 2026 Notes-2 should consult their own tax advisors regarding FATCA and how it may affect their investment in the notes.

GENERAL RISK FACTORS

We and our portfolio companies may maintain cash balances at financial institutions and exceed federally insured limits and may otherwise be materially affected by adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties.

Our cash is held in accounts at U.S. banking institutions that we believe are of high quality. Cash held by us and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. If such banking institutions were to fail, we or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limitations. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our and our portfolio companies’ business, financial condition, results of operations, or prospects.

Although we assess our portfolio companies’ banking relationships as we believe necessary or appropriate, our and our portfolio companies’ access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our respective current and projected future business operations could be significantly impaired by factors that affect us or our portfolio companies, the financial institutions with which we or our portfolio companies have arrangements directly, or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we or our portfolio companies have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally.

In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us or our portfolio companies to acquire financing on acceptable terms or at all.

Inflation may adversely affect the business, results of operations and financial condition of our portfolio companies.

Certain of our portfolio companies are in industries that may be impacted by inflation. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations.

Global capital markets could enter a period of severe disruption and instability due to future recessions, disease pandemics and other serious health events, political instability, geopolitical turmoil and foreign hostilities. These market conditions have historically had and could again have a materially adverse effect on debt and equity capital markets in the United States, which could have a materially negative impact on our business, financial condition and results of operations.

The U.S. and global capital markets have, from time to time, experienced periods of disruption characterized by the freezing of available credit, a lack of liquidity in the debt capital markets, significant losses in the principal value of investments, the re-pricing of credit risk in the broadly syndicated credit market, the failure of major financial institutions and general volatility in the financial markets. During these periods of disruption, general economic conditions deteriorated with material and adverse consequences for the broader financial and credit markets, and the availability of debt and equity capital for the market as a whole, and financial services firms in particular, was reduced significantly. These conditions may reoccur for a prolonged period of time or materially worsen in the future. In addition, uncertainty between the United States and other countries with respect to trade policies, treaties and tariffs, among other factors, have caused disruptions in the global markets, including markets in which we participate, and we cannot assure you that these market conditions will not continue or worsen in the future. We may in the future have difficulty accessing debt and equity capital markets, and a severe disruption in the global financial markets, deterioration in credit and financing conditions or uncertainty regarding U.S. government spending and deficit levels or other global economic and political conditions, including future recessions, political instability, geopolitical turmoil and foreign hostilities, and disease, pandemics and other serious health events, could have a material adverse effect on our business, financial condition and results of operations.

Volatility or a prolonged disruption in the credit markets could materially damage our business.

We are required to record our assets at fair value, as determined in good faith by our board of directors, in accordance with our valuation policy. As a result, volatility in the capital markets may have a material adverse effect on our valuations and our NAV, even if we hold investments to maturity. Volatility or dislocation in the capital markets may depress our stock price below our NAV per share and create a challenging environment in which to raise equity and debt capital. As a BDC, we are generally not able to issue additional shares of our common stock at a price less than our NAV without first obtaining approval for such issuance from our stockholders and our independent directors. Additionally, our ability to incur indebtedness is limited by the asset coverage ratio requirements for a BDC, as defined under the 1940 Act, exclusive of the SBA debentures pursuant to our SEC exemptive relief. Declining portfolio values negatively impact our ability to borrow additional funds under our Truist Credit Facility because our NAV is reduced for purposes of the asset coverage ratio. If the fair value of our assets declines substantially, we may fail to maintain the asset coverage ratio stipulated by the 1940 Act, which could, in turn, cause us to lose our status as a BDC and materially impair our business operations. A lengthy disruption in the credit markets could also materially decrease demand for our investments and could materially damage our business, financial condition and results of operations.

The significant disruptions in the capital markets experienced in the past has had, and may in the future have, a negative effect on the valuations of our investments and on the potential for liquidity events involving our investments. The debt capital that may be available to us in the future may be at a higher cost and have less favorable terms and conditions than those currently in effect. If our financing costs increase and we have no increase in interest income, then our net investment income will decrease. A prolonged inability to raise capital may require us to reduce the volume of investments we originate and could have a material adverse impact on our business, financial condition and results of operations. This may also increase the probability that other structural risks negatively impact us. These situations may arise due to circumstances that we may be unable to control, such as a lengthy disruption in the credit markets, a severe decline in the value of the U.S. dollar, a sharp economic downturn or recession or an operational problem that affects third parties or us, and could materially damage our business, financial condition and results of operations.

Any public health emergency, any outbreak of existing or new diseases, and the resulting financial and economic market uncertainty could have a significant adverse impact on us.

The extent of the impact of any public health emergency, on our and our portfolio companies’ operational and financial performance will depend on many factors, including the duration and scope of such public health emergency, the actions taken by governmental authorities to contain its financial and economic impact, the extent of any related travel advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, investor liquidity and levels of economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. In addition, our and our portfolio companies’ operations may be significantly impacted, or halted, as a result of government quarantine measures, restrictions on travel and other factors related to a public health emergency, including its potential adverse impact on the health of any of our or our portfolio companies’ personnel. This could create widespread business continuity issues for us and our portfolio companies. These factors may also cause the valuation of our investments to differ materially from the values that we may ultimately realize. Any public health emergency any outbreak of existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on us and the fair value of our investments and our portfolio companies.

Economic sanction laws in the United States and other jurisdictions may prohibit us and our affiliates from transacting with certain countries, individuals and companies.

Economic sanction laws in the United States and other jurisdictions may prohibit us or our affiliates from transacting with certain countries, individuals and companies. In the United States, the U.S. Department of the Treasury’s Office of Foreign Assets Control administers and enforces laws, executive orders and regulations establishing U.S. economic and trade sanctions, which prohibit, among other things, transactions with, and the provision of services to, certain non-U.S. countries, territories, entities and individuals. These types of sanctions may significantly restrict or completely prohibit investment activities in certain jurisdictions, and if we, our portfolio companies or other issuers in which we invest were to violate any such laws or regulations, we may face significant legal and monetary penalties.

The Foreign Corrupt Practices Act, or FCPA, and other anti-corruption laws and regulations, as well as anti-boycott regulations, may also apply to and restrict our activities, our portfolio companies and other issuers of our investments. If an issuer or we were to violate any such laws or regulations, such issuer or we may face significant legal and monetary penalties. The U.S. government has indicated that it is particularly focused on FCPA enforcement, which may increase the risk that an issuer or us becomes the subject of such actual or threatened enforcement. In addition, certain commentators have suggested that private investment firms and the funds that they manage may face increased scrutiny and/or liability with respect to the activities of their underlying portfolio companies. As such, a violation of the FCPA or other applicable regulations by us or an issuer of our portfolio investments could have a material adverse effect on us. We are committed to complying with the FCPA and other anti-corruption laws and regulations, as well as anti-boycott regulations, to which it is subject. As a result, we may be adversely affected because of our unwillingness to enter into transactions that violate any such laws or regulations.

Failure or alleged failure to comply with applicable data protection and privacy laws and regulations could subject us to ongoing costs and, in some cases, fines and reputational harm.

We and the Adviser and its affiliates are subject to numerous laws and regulations in various jurisdictions relating to privacy and the storage, sharing, use, processing, disclosure and protection of information that we and our affiliates hold. The SEC has adopted changes to Regulation S-P, which requires, among other things, that registered investment advisers notify affected individuals of a breach involving their personal information when there has been an incident that rises to the level of being a reportable breach. In general, these laws and regulations introduce many new obligations on us, the Adviser and its affiliates and service providers and create new rights for parties who have given any of us their personal information, such as investors and others. The scope of data protection and privacy laws and regulations is rapidly evolving, and such laws and regulations are subject to differing interpretations. Any inability or perceived inability to adequately address privacy concerns, or comply with applicable laws and regulations, even if unfounded, could result in regulatory and third-party liability, increased costs, disruption to our operations, and reputational damage. Obligations to which we, the Adviser or its affiliates are subject impose compliance costs and risks of penalties, which could increase significantly as such laws and regulations evolve globally. Moreover, as data protection and privacy laws and regulations continue to develop, it could be more difficult and/or more costly for us, the Adviser or its affiliates to collect, store, use, transmit and process personal information.

While we, the Adviser and its affiliates take reasonable efforts to comply with data protection and privacy laws and regulations, it is possible that we and the Adviser will not be able to accurately anticipate the ways in which regulators and courts will apply or interpret these laws, and there can be no assurance that we or the Adviser or its affiliates will not be subject to regulatory or individual legal action, including fines, in the event of a security incident, alleged non-compliance with applicable data protection and privacy laws or regulations, or other claim that an individual’s privacy rights have been violated. Many regulators have indicated an intention to take more aggressive enforcement actions regarding data privacy matters, and private litigation resulting from such matters is increasing and resulting in large judgments and settlements.

We may be the target of litigation.

We may be the target of securities litigation in the future, particularly if the trading price of our common stock, our 2026 Notes or our 2026-2 Notes fluctuates significantly. We could also generally be subject to litigation, including derivative actions by our stockholders. Any litigation could result in substantial costs and divert management’s attention and resources from our business and cause a material adverse effect on our business, financial condition and results of operations.

The effect of global climate change may impact the operations of our portfolio companies.

There may be evidence of global climate change. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition through, for example, decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions.

Legislative or regulatory tax changes could adversely affect investors.

At any time, the federal income tax laws governing RICs or the administrative interpretations of those laws or regulations may be amended. The Trump Administration has enacted significant changes to the existing U.S. tax rules that include, among others, a minimum tax on book income and profits of certain multinational corporations, and there are a number of proposals in the U.S. Congress that would similarly modify the existing U.S. tax rules. The likelihood of any new legislation being enacted is uncertain. Any new laws, regulations or interpretations may take effect retroactively and could adversely affect the taxation of us or our shareholders. Therefore, changes in tax laws, regulations or administrative interpretations or any amendments thereto could diminish the value of an investment in our shares or the value or the resale potential of our investments.

Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies.

There have been significant changes to U.S. trade policies, treaties and tariffs, and in the future there may be additional significant changes. Existing or new tariffs imposed on foreign goods imported by the U.S. or on U.S. goods imported by foreign countries could subject us or our portfolio companies to additional risks. Among other effects, tariffs may increase the cost of production for certain of our portfolio companies or reduce demand for their products, which could adversely affect their results of operations. We cannot predict whether, or to what extent, any tariff or other trade protections may affect our portfolio companies or our business, financial condition or results of operations.

We are subject to risks associated with cybersecurity and cyber incidents.

Our internal computer systems and infrastructure and those of our Investment Adviser, strategic collaborators, vendors, contractors, consultants or regulators with whom we share confidential, protected or sensitive data or information, or upon which our business relies, are vulnerable to damage from computer viruses, unauthorized access, misuse, natural disasters, terrorism, cybersecurity threats, war and telecommunication and electrical failures, as well as security compromises or breaches, which may compromise our systems, infrastructure, data or that of those with whom we share such data or information or upon which our business relies, or lead to data compromise, misuse, misappropriation or leakage. We may experience, and from time to time have experienced, cyber attacks on our information technology systems and infrastructure by threat actors of all types (including nation states, criminal enterprises, individual actors or advanced persistent threat groups, among others). In addition to extracting sensitive information, such attacks could include the deployment of harmful malware, ransomware, digital extortion, business email compromises and denial-of-service attacks, social engineering (including phishing attacks) and other means to affect server reliability and threaten the confidentiality, integrity and availability of information, systems or infrastructure.

As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those provided by our Investment Adviser and other third-parties. We, along with our Investment Adviser, have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber-attacks, but these measures, as well as our increased awareness of the nature and extent of the risk of a cyber attack, may be ineffective and do not guarantee that a cyber attack will not occur or that our financial results, operations or confidential information will not be negatively impacted by such an attack. Further, our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages or claims related to our privacy and data security obligations. Further, although we maintain cyber liability insurance, this insurance may not provide adequate coverage against potential liabilities related to any experienced cybersecurity attack or breach.

Furthermore, cybersecurity continues to be a priority for regulators around the world, and some jurisdictions have enacted laws requiring companies to notify individuals and/or regulators of data security breaches involving certain types of personal information. If we fail to comply with the relevant laws and regulations, we could suffer financial losses, a disruption of our businesses, liability to investors, regulatory intervention or reputational damage.

We are subject to risks related to artificial intelligence.

Artificial intelligence, including machine learning and similar tools and technologies that collect, aggregate, analyze or generate data or other materials (collectively, “AI”), and its current and potential future applications including in the private investment and financial industries, as well as the legal and regulatory frameworks within which AI operates, continue to rapidly evolve. While we and our Investment Adviser do not use AI at this time to make investment recommendations, the use of AI could exacerbate or create new and unpredictable risks to our business, including by potentially significantly disrupting the markets in which we operate or subjecting us and our Investment Adviser to increased competition and regulation, which could materially and adversely affect business, financial condition or results of operations of our Investment Adviser and us. In addition, the use of AI by bad actors could heighten the sophistication and effectiveness of cyber and security attacks experienced by the Investment Adviser and us.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Cybersecurity

The Company has effective processes in place to assess, identify, and manage material risks from cybersecurity threats. The Company’s business is dependent on the communications and information systems of the Investment Adviser. The Company also relies on the communications and systems of other third-party service providers.

Cybersecurity Program Overview

The Adviser has instituted a cybersecurity program designed to identify, assess, and manage cyber risks applicable to the Company. The Adviser's cyber risk management program involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks, including networks on which the Company relies. The Adviser actively monitors the current threat landscape in an effort to identify material risks arising from new and evolving cybersecurity threats, including material risks faced by the Company.

The Company relies on the Adviser to engage external experts, including cybersecurity assessors, consultants, and auditors to evaluate cybersecurity measures and risk management processes, including those applicable to the Company.

The Company relies on the Adviser’s risk management program and processes, which include cyber risk assessments.

The Company depends on and engages various third parties, including suppliers, vendors, and service providers, to operate its business. The Company relies on the expertise of risk management, legal, information technology, and compliance personnel of the Adviser when identifying and overseeing risks from cybersecurity threats associated with our use of such entities.

Board Oversight of Cybersecurity Risks

The Board provides strategic oversight on cybersecurity matters, including risks associated with cybersecurity threats. The Board receives periodic updates from the Company’s Chief Compliance Officer ("CCO") regarding the overall state of the Adviser’s cybersecurity program, information on the current threat landscape, and risks from cybersecurity threats and cybersecurity incidents impacting the Company.

Management's Role in Cybersecurity Risk Management

The Company’s management, including the Company’s Chief Financial Officer (“CFO”) and CCO, is responsible for assessing and managing material risks from cybersecurity threats. The CFO and CCO of the Company oversee the Company’s oversight function generally and rely on Information Technology staff of, and consultants to, the Adviser to manage the assessment and management of material risks from cybersecurity threats. The CFO has been responsible for his oversight function as CFO to the Company for three years and has worked in the financial services industry for more than 30 years, during which time the CFO has gained expertise in assessing and managing risk applicable to the Company. The CCO has been responsible for oversight functions for the Company for three years. The current CCO has been serving as CCO since April 2025 and has worked in the financial services industry for more than 35 years, during which time the CCO has gained expertise in assessing and managing risks applicable to the Company. Management of the Company, including the CCO, is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents impacting the Company, including through the receipt of notifications from service providers and reliance on communications with risk management, legal, information technology, and/or compliance personnel of the Adviser.

Assessment of Cybersecurity Risk

The potential impact of risks from cybersecurity threats on the Company are assessed on an ongoing basis, and how such risks could materially affect the Company’s business strategy, operational results, and financial condition are regularly evaluated. During the reporting period, the Company has not identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that the Company believes have materially affected, or are reasonably likely to materially affect, the Company, including its business strategy, operational results, and financial condition.

Item 2. Properties

As of September 30, 2025, we did not own any real estate or other physical properties materially important to our operation. We believe that the office facilities of the Investment Adviser and Administrator are suitable and adequate for our business as it is contemplated to be conducted.

Item 3. Legal Proceedings

None of us, our Investment Adviser or our Administrator, is currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us, or against our Investment Adviser or Administrator. From time to time, we, our Investment Adviser or Administrator may be a party to certain legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

Item 4. Mine Safety Disclosures

Not applicable.

DISTRIBUTIONS

We intend to continue making distributions to our stockholders. The timing and amount of our distributions, if any, is determined by our board of directors. Any distributions to our stockholders are declared out of assets legally available for distribution. We monitor available net taxable investment income to determine if a tax return of capital 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, a portion of those distributions may be deemed to be a tax return of capital to our common stockholders.

In January 2026, a Form 1099-DIV will be sent to stockholders subject to information reporting that will state the amount and composition of distributions and provide information with respect to appropriate tax treatment of our distributions.

The tax characteristics of distributions declared, in accordance with Section 19(a) of the 1940 Act, during the years ended September 30, 2025 and 2024 from ordinary income (including short-term gains), if any, totaled $62.7 million and $57.4 million, or $0.96 and $0.88 per share, respectively, based on the weighted average shares outstanding for the respective years. Additionally, for both years ended September 30, 2025 and 2024, we did not pay any distribution from long-term capital gains.

We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend or other distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage ratio for borrowings when applicable to us as a BDC under the 1940 Act and due to provisions in future credit facilities. If we do not distribute a certain minimum percentage of our income annually, we will suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

Stock Performance Graph

This graph compares the return on our common stock with that of the Standard & Poor’s 500 Stock Index (the "S&P Index") and the Russell 2000 Financial Services Index, for the last five fiscal years. The graph assumes that, on September 30, 2020, a person invested $100 in each of our common stock, the S&P 500 Index, and the Russell 2000 Financial Services Index. The graph measures total stockholder return, which takes into account both changes in stock price and distributions. It assumes that distributions paid are invested in like securities.

The graph and other information furnished under this Part II Item 5 of this Report shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act. The stock price performance included in the above graph is not necessarily indicative of future stock price performance.

Fees and Expenses

The following table is being provided to update, as of September 30, 2025, certain information in our registration statement on Form N-2 (File No. 333-263564), most recently declared effective by the SEC on April 28, 2022. The following table will assist you in understanding the various costs and expenses that an investor in shares of our common stock will bear directly or indirectly. However, we caution you that some of the percentages indicated in the table below are estimates and may vary from actual results. The following table should not be considered a representation of our future expenses. Actual expenses may be greater or less than shown. Except where the context suggests otherwise, whenever reference is made to fees or expenses paid by “you” or “us” or that “we” will pay, stockholders will indirectly bear such fees or expenses as investors in us.

Stockholder transaction expenses
Sales load (as a percentage of offering price)	—	%	(1)
Offering expenses (as a percentage of offering price)	—		(2)
Dividend reinvestment plan expenses	—		(3)
Total stockholder expenses (as a percentage of offering price)	—
Estimated annual expenses (as a percentage of average net assets attributable to common shares)(4)
Management fees	3.33		(5)
Incentive fees	2.01		(6)
Interest on borrowed funds	8.56		(7)
Acquired fund fees and expenses	12.83		(8)
Other expenses	1.80		(9)
Total estimated annual expenses	28.53	%	(10)

In the event that the securities to which any applicable prospectus relates are sold to or through underwriters or agents, a corresponding prospectus supplement will disclose the applicable sales load.
In the event that we conduct an offering of our securities, a corresponding prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the offering expenses borne by us as a percentage of the offering price.
The expenses of the dividend reinvestment plan are included in “Other expenses.”
Net assets attributable to common shares equals average net assets as of September 30, 2025.
The contractual management fee is calculated at an annual rate of 1.50% of our average adjusted gross assets up to 200% of the Company’s total net assets as of the immediately preceding quarter-end and 1.00% for amounts that exceed such amount on September 30, 2025. See “Business—Investment Management Agreement” and “Business—Management Fees” for more information.
The portion of incentive fees paid with respect to net investment income and capital gains, if any, is based on actual amounts incurred during the fiscal year ended September 30, 2025. Such incentive fees are based on performance, vary from period to period and are not paid unless our performance exceeds specified thresholds. Incentive fees in respect of net investment income do not include incentive fees in respect of net capital gains. The portion of our incentive fee paid in respect of net capital gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 17.5% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For purposes of this chart and our Consolidated Financial Statements, our incentive fees on capital gains are calculated in accordance with GAAP. As we cannot predict our future net investment income or capital gains, the incentive fee paid in future periods, if any, may be substantially different than the fee earned during the fiscal year ended September 30, 2025. For more detailed information about the incentive fee, please see “Business—Investment Management Agreement” and “Business—Management Fees” for more information.
As of September 30, 2025, we had $73.5 million of unused borrowing capacity, subject to maintenance of the applicable total assets to debt ratio, under the 1940 Act. As of such date, we had $426.5 million in borrowings outstanding under our $500.0 million Truist Credit Facility, $150.0 million in aggregate principal of 2026 Notes and $165.0 million in aggregate principal of 2026-2 Notes. We may use proceeds of any offering of securities under any applicable registration statement to repay outstanding obligations under our Truist Credit Facility. After completing any such offering, we may continue to borrow under our Truist Credit Facility to finance our investment objectives. Annual interest expense on borrowed funds represents actual interest expense incurred for the fiscal year ended September 30, 2025 and amendment costs and make-whole premiums, if any, and we caution you that our actual interest expense will depend on prevailing interest rates and our rate of borrowing, which may be substantially higher than the estimate provided in this table.
Our stockholders indirectly bear their share of expenses of our investment in PSLF which was 55.8% as of September 30, 2025. No management fee is charged by PennantPark Investment Advisers in connection with PSLF. PSLF pays the Administrator an annual fee of 0.25% of average gross assets under management. For this chart, PSLF fees and operating expenses are based on our share of the actual fees and operating expenses of PSLF for the fiscal year ended September 30, 2025. Expenses for PSLF may fluctuate over time and may be substantially higher or lower in the future.

Our stockholders indirectly bear 23.1% of the expenses of our investment in PTSF II. A management fee equal to 0.50% per annum of the gross assets of PTSF II and its subsidiaries is charged by

PennantPark Investment Advisers in connection with PTSF II, and the entity is subject to an incentive fee of 20% of residual income proceeds after the internal rate of return on the equity has reached at least 12%. For this chart, PTSF II fees and operating expenses are based on our share of the actual fees and operating expenses of PTSF II for the fiscal year ended September 30, 2025. Expenses for PTSF II may fluctuate over time and may be substantially higher or lower in the future.

“Other expenses” includes our general and administrative expenses, professional fees, directors’ fees, insurance costs, taxes, expenses of our dividend reinvestment plan and the expenses of the Investment Adviser reimbursable under our Investment Management Agreement and of the Administrator reimbursable under our Administration Agreement.
“Total estimated annual expenses” as a percentage of average net assets attributable to common shares, to the extent we borrow money to make investments, are higher than the total estimated annual expenses percentage would be for a company that is not leveraged. We may borrow money to leverage our net assets and increase our total assets. The SEC requires that the “total estimated annual expenses” percentage be calculated as a percentage of net assets (defined as total assets less indebtedness) rather than total assets, which include assets that have been funded with borrowed money. If the “Total estimated annual expenses” percentage were calculated instead as a percentage of total assets, our “Total estimated annual expenses” would be 11.2% of average total assets.

Example

The following example illustrates the projected dollar amount of total cumulative expenses that you would pay on a $1,000 hypothetical investment in common shares, assuming (1) a 3.00% sales load (underwriting discounts and commissions) and offering expenses totaling 0.5%, (2) total net annual expenses of 26.5% of average net assets attributable to common shares as set forth in the table above (other than performance-based incentive fees) and (3) a 5% annual return.

You would pay the following expenses on a $1,000 common stock investment	1 Years		3 Years		5 Years		10 Years
Assuming a 5% annual return (assumes no return from net realized capital gains or net
unrealized capital appreciation)	$	263	$	583	$	780	$	1,002
Assuming a 5% annual return (assumes return only from realized capital gains and thus
subject to the capital gains incentive fee)	$	271	$	595	$	789	$	1,000

This example and the expenses in the table above should not be considered a representation of our future expenses. Actual expenses may be greater or less than those assumed. The table above is provided to assist you in understanding the various costs and expenses that an investor in our common stock will bear directly or indirectly. While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. If we were to earn an annual return equal to or less than 5% from net investment income, the incentive fee under our Investment Management Agreement would not be earned or payable. If returns on our investments, including realized capital gains, result in an incentive fee, our expenses, and returns to investors, would be higher. The example assumes that all distributions are reinvested at NAV. Reinvestment of distributions under our dividend reinvestment plan may occur at a price per share that differs from NAV. See “Distributions” for more information.

Item 6. Selected Financial Data

Not applicable

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to us and our consolidated subsidiaries regarding future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Report involve risks and uncertainties, including statements as to:

our future operating results;
our business prospects and the prospects of our prospective portfolio companies;
changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of our assets;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
the impact of a protracted decline in the liquidity of credit markets on our business;
the impact of investments that we expect to make;
the impact of fluctuations in interest rates and foreign exchange rates on our business and our portfolio companies;
our contractual arrangements and relationships with third parties;
the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
the ability of our prospective portfolio companies to achieve their objectives;
our expected financings and investments;
the adequacy of our cash resources and working capital;
the timing of cash flows, if any, from the operations of our prospective portfolio companies;
the impact of price and volume fluctuations in the stock market;
increasing levels of inflation, and its impact on us and our portfolio companies;
the ability of our Investment Adviser to locate suitable investments for us and to monitor and administer our investments;
the impact of future legislation and regulation on our business and our portfolio companies;
the impact of the ongoing world economic and political issues; and
the inability to develop and maintain effective internal control over financial reporting.

We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. You should not place undue influence on the forward-looking statements as our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors in “Risk Factors” and elsewhere in this Report.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward- looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved.

We have based the forward-looking statements included in this Report on information available to us on the date of this Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including reports on Form 10-Q/K and current reports on Form 8-K.

You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of 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 we file under the Exchange Act.

The following analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related notes thereto contained elsewhere in this Report.

Overview

We believe middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies. We seek to create a diversified portfolio that includes first lien secured debt, second lien secured debt, subordinated debt and equity investments by investing approximately $10 million to $50 million of capital, on average, in the securities of middle-market companies. We expect this investment size to vary proportionately with the size of our capital base. We use the term “middle-market” to refer to companies with annual revenues between $50 million and $1 billion. The companies in which we invest are typically highly leveraged, and, in most cases, are not rated by national rating agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies. Securities rated below investment grade are often referred to as “leveraged loans” or “high yield” securities or “junk bonds” and are often higher risk compared to debt instruments that are rated above investment grade and have speculative

characteristics. Our debt investments may generally range in maturity from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions.

Organization and Structure of PennantPark Investment Corporation

We execute our investment strategy directly and through our wholly owned subsidiaries, our unconsolidated joint venture and unconsolidated limited partnership. The term “subsidiary” means entities that primarily engage in investment activities in securities or other assets and are wholly owned by us. The Company does not intend to create or acquire primary control of any entity which primarily engages in investment activities of securities or other assets other than entities wholly owned by the Company. We comply with the provisions of Section 18 of the 1940 Act governing capital structure and leverage on an aggregate basis with our subsidiaries. Our subsidiaries comply with the provisions of Section 17 of the 1940 Act related to affiliated transactions and custody. To the extent that the Company forms a subsidiary advised by an investment adviser other than the Investment Adviser, the investment adviser to such subsidiaries will comply with the provisions of the 1940 Act relating to investment advisory contracts, including but not limited to, Section 15, as if it were an investment adviser to the Company under Section 2(a)(20) of the 1940 Act. Our investment activities are managed by the Investment Adviser. Under our Investment Management Agreement, we have agreed to pay our Investment Adviser an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. PennantPark Investment, through the Investment Adviser, had provided similar services to SBIC II under its investment management agreement. SBIC II’s investment management agreement has no effect the management and incentive fees on a consolidated basis. We have also entered into an Administration Agreement with the Administrator. Under our Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. Our board of directors, a majority of whom are independent of us, provides overall supervision of our activities, and the Investment Adviser supervises our day-to-day activities.

At-the-Market Offering

On June 4, 2024, we entered into equity distribution agreements with Truist Securities, Inc. and Keefe, Bruyette & Woods, Inc. (together, the "Equity Distribution Agreements"), as sales agents (each a "Sales Agent" and together, the "Sales Agents") in connection with the sale of shares of our common stock, with an aggregate offering price of up to $100 million under an at-the-market offering ("ATM Program"). We may offer and sell shares of our common stock from time to time through a sales agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including, market conditions and the trading price of our common stock. The Investment Adviser may, from time to time, in its sole discretion, pay some or all of the commissions payable under the equity distribution agreements or make additional supplemental payments to ensure that the sales price per share of our common stock in connection with all of the offerings made hereunder will not be less than our current NAV per share. Any such payments made by the Investment Adviser will not be subject to reimbursement by us. On April 28, 2025, our registration statement pursuant to which shares were issued under the ATM Program expired.

Revenues

We generate revenue in the form of interest income on the debt securities we hold and capital gains and dividends, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of first lien secured debt, second lien secured debt or subordinated debt, typically have a term of three to ten years and bear interest at a fixed or a floating rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, our investments provide for deferred interest payments and PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally becomes due at the maturity date. In addition, we may generate revenue in the form of amendment, commitment, origination, structuring or diligence fees, fees for providing significant managerial assistance and possibly consulting fees. Loan origination fees, OID and market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Expenses

Our primary operating expenses include interest expense on the outstanding debt and unused commitment fees on undrawn amounts, under our various debt facilities, the payment of a management fee and the payment of an incentive fee to our Investment Adviser, if any, our allocable portion of overhead under our Administration Agreement and other operating costs as detailed below. Our management fee compensates our Investment Adviser for its work in identifying, evaluating, negotiating, consummating and monitoring our investments. We bear all other direct or indirect costs and expenses of our operations and transactions, including:

the cost of calculating our net asset value, including the cost of any third-party valuation services;
the cost of effecting sales and repurchases of shares of our common stock and other securities;
fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence and reviews of prospective investments or complementary businesses;
expenses incurred by the Investment Adviser in performing due diligence and reviews of investments; including expenses incurred by the Investment Adviser payable to third parties (including agents and consultants) in monitoring financial and legal affairs for the Company and in monitoring the Company's investments;
transfer agent and custodial fees;
fees and expenses associated with marketing efforts;
federal and state registration fees and any exchange listing fees;
federal, state, local and foreign taxes;
independent directors’ fees and expenses;
brokerage commissions;
fidelity bond, directors and officers, errors and omissions liability insurance and other insurance premiums;
direct costs such as printing, mailing, long distance telephone and staff;
fees and expenses associated with independent audits and outside legal costs;
costs associated with our reporting and compliance obligations under the 1940 Act, the 1958 Act and applicable federal and state securities laws; and
all other expenses incurred by either the Administrator or us in connection with administering our business, including payments under our Administration Agreement that will be based upon our allocable portion of overhead, and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.

Generally, during periods of asset growth, we expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities would be additive to the expenses described above.

PORTFOLIO AND INVESTMENT ACTIVITY

As of September 30, 2025, our portfolio totaled $1,287.3 million and consisted of $582.4 million or 45% of first lien secured debt, $124.8 million or 10% of U.S. Government Securities, $18.2 million or 1% of second lien secured debt, $201.2 million or 16% of subordinated debt (including $140.3 million or 11% in PSLF) and $360.7 million or 28% of preferred and common equity (including $67.5 million or 5% in PSLF). Our interest bearing debt portfolio consisted of 91% variable-rate investments and 9% fixed-rate investments. As of September 30, 2025, we had four portfolio companies on non-accrual, representing 1.3% and 0.1% percent of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $50.4 million as of September 30, 2025. Our overall portfolio consisted of 166 companies with an average investment size of $7.0 million (excluding U.S. Government Securities), had a weighted average yield on interest bearing debt investments of 11.0%.

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 US 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 year ended September 30, 2025, we invested $746.6 million of investments in 28 new and 161 existing portfolio companies with a weighted average yield on debt investments of 10.2% (excluding U.S. Government Securities). Sales and repayments of investments for the same period totaled $810.4 million (excluding U.S. Government Securities).

For the year ended September 30, 2024, we invested $774.6 million of investments in 41 new and 81 existing portfolio companies with a weighted average yield on debt investments of 11.7% (excluding U.S. Government Securities). Sales and repayments of investments for the same period totaled $555.4 million (excluding U.S. Government Securities).

PennantPark Senior Loan Fund, LLC

As of September 30, 2025, PSLF’s portfolio totaled $1,265.9 million, consisted of 109 companies with an average investment size of $11.6 million and had a weighted average yield interest bearing debt investments of 10.1%. As of September 30, 2025, approximately 99% of the investments held by PSLF were first lien secured debt. For the year ended September 30, 2025, PSLF invested $546.1 million (of which $462.8 million was purchased from the Company) in 26 new and 57 existing portfolio companies with a weighted average yield on debt investments of 10.4%. PSLF’s sales and repayments of investments for the same period totaled $293.8 million.

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 on debt investments of 11.3%. As of September 30, 2024, approximately 100% of the investments held by PSLF were first lien secured debt. For the year ended September 30, 2024, PSLF invested $396.1 million (of which $308.8 million was purchased from the Company) in 20 new and 24 existing portfolio companies with a weighted average yield on debt investments of 11.8%. PSLF’s sales and repayments of investments for the same period totaled $172.9 million.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Actual results could differ from these estimates due to changes in the economic and regulatory environment, financial markets and any other parameters used in determining such estimates and assumptions, including the credit worthiness of our portfolio companies. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to ASC serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued. In addition to the discussion below, we describe our critical accounting policies in the notes to our Consolidated Financial Statements.

Investment Valuations

We expect that there may not be readily available market values for many of the investments which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material.

Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;
Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
The audit committee of our board of directors reviews the valuations of the Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and
Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If our board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

Fair value, as defined under ASC 820, is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets, or that are quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term, if applicable, of the financial instrument.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, and our Truist Credit Facility are classified as Level 3. Our 2026 Notes and 2026 Notes-2 are classified as Level 2, as they are financial instruments with readily observable market inputs. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

On December 3, 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The new rule clarifies how fund boards of directors can satisfy their valuation obligations and requires, among other things, the board of directors to periodically assess material valuation risks and take steps to manage those risks. The rule also permit boards of directors, subject to board oversight and certain other conditions, to designate the fund’s investment adviser to perform fair value determinations. The new rule went into effect on March 8, 2021 and had a compliance date of September 8, 2022. We came into compliance with Rule 2a-5 under the 1940 Act before the compliance date. While our board of directors has not elected to designate the Investment Adviser as the valuation designee at this time, we have adopted certain revisions to our valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 under the 1940 Act.

In addition to using the above inputs to value cash equivalents, investments, our 2026 Notes, 2026-2 Notes and our Truist Credit Facility valuations, we employ the valuation policy approved by our board of directors that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value.

Generally, the carrying value of our consolidated financial liabilities approximates fair value. We have adopted the principles under ASC Subtopic 825-10, Financial Instruments, or ASC 825-10, which provides companies with an option to report selected financial assets and liabilities at fair value, and made an irrevocable election to apply ASC 825-10 to our Truist Credit Facility. We elected to use the fair value option for the Truist Credit Facility to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we incurred expenses of $0.3 million, zero, and zero relating to amendment costs on the Truist Credit Facility during the years ended September 30, 2025, 2024 and 2023, respectively. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets, and Liabilities and changes in fair value of the Truist Credit Facility are reported in our Consolidated Statements of Operations. We elect not to apply ASC 825-10 to any other financial assets or liabilities, 2026 Notes, and 2026 Notes-2.

For the years ended September 30, 2025, 2024, and 2023 the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of $(0.1) million, $(4.4) million and $(3.8) million, respectively. As of September 30, 2025 and 2024, the net unrealized appreciation (depreciation) on our Truist Credit Facility totaled $(1.0) million and $(1.1) million. We use a nationally recognized independent valuation service to measure the fair value of our Truist Credit Facility in a manner consistent with the valuation process that the board of directors uses to value our investments.

Revenue Recognition

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in fair values of our portfolio investments, and our Truist Credit Facility, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

Foreign Currency Translation

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

Payment-in-Kind, or, PIK Interest

We have investments in our portfolio which contain a PIK interest provision. PIK interest is added to the principal balance of the investment and is recorded as income. In order for us to maintain our ability to be subject to tax as a RIC, substantially all of this income must be paid out to stockholders in the form of dividends for U.S. federal income tax purposes, even though we may not have collected any cash with respect to interest on PIK securities.

Federal Income Taxes

We have elected to be treated, and intend to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements. We also must annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, determined without regard to any deduction for dividends paid.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible U.S. federal excise tax imposed on RICs, we must distribute dividends for federal income tax purposes to our stockholders in respect of each calendar year an amount at least equal to the sum of (1) 98% of our net ordinary income (subject to certain deferrals and elections) for the calendar year, (2) 98.2% of the excess, if any, of our capital gains over our capital losses, or capital gain net income (adjusted for certain ordinary losses) for the one-year period ending on October 31 of the calendar year plus (3) the sum of any net ordinary income plus capital gain net income for preceding years that was realized but not distributed during such years and on which we did not incur any U.S. federal income tax, or the Excise Tax Avoidance Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, contingent on maintaining our ability to be subject to tax as a RIC, in order to provide us with additional liquidity.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gain recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

For the years ended September 30, 2025, 2024 and 2023, we recorded a provision for taxes on net investment income of $2.6 million, $2.6 million and $4.3 million, respectively, pertaining to federal excise tax.

On November 22, 2021, we formed PNNT Investment Holdings II, LLC, a Delaware limited liability company (“Holdings II”), as a wholly owned subsidiary. On December 31, 2022, we contributed 100% of our interests in PNNT Investment Holdings, LLC (“Holdings”) to Holdings II . Effective as of January 1, 2024, Holdings II made an election to be treated as a corporation for U.S. federal income tax purposes. On January 3, 2024, we purchased an equity interest in Holdings from Holdings II and Holdings became a partnership for U.S. federal income tax purposes. The Company and Holdings II entered into a limited liability company agreement with respect to Holdings that provides for certain payments and the sharing of income, gain, loss and deductions attributable to Holdings’ investments.

For the years ended September 30, 2025, 2024 and 2023 the Company recognized a provision for taxes of less than $0.1 million, $0.2 million, and $(5.0) million respectively, on net realized gain on investments by the Taxable Subsidiary. For the years ended September 30, 2025, 2024, and 2023 the Company recognized a provision for taxes of zero, $(0.7) million and $1.6 million, respectively, on net unrealized gain (loss) on investments by the Taxable Subsidiary. The provision for taxes on net realized and unrealized gains on investments is the result of netting (i) the expected tax liability on the gains from the sales of investments which were realized and unrealized during the fiscal year and (ii) the expected tax benefit resulting from the use of loss carryforwards to offset such gains.

During the year ended September 30, 2025, 2024 and 2023 the Company paid $0.2, zero, and zero million respectively, in federal taxes on realized gains on the sale of investments held by the Taxable Subsidiary. The state and local tax liability of zero as of September 30, 2025 is included under accrued other expenses in the consolidated statement of assets and liabilities.

The Taxable Subsidiary, which is subject to tax as a corporation, allows us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

RESULTS OF OPERATIONS

Set forth below are the results of operations for the years ended September 30, 2025 and 2024. For information regarding results of operations for the year ended September 30, 2023, see the Company's Form 10-K for the fiscal year ended September 30, 2024, as filed with the SEC on November 25, 2024.

Investment Income

Investment income for the year ended September 30, 2025 was $122.4 million and was attributable to $89.9 million from first lien secured debt, $3.8 million from second lien secured debt and $4.4 million from subordinated debt and $24.3 from other investments. The decrease in investment income compared to prior year was primarily due to a decrease in our total portfolio including a decrease in our weighted average yield on debt investment and a decrease in dividend income.

Investment income for the year ended September 30, 2024 was $143.8 million and was attributable to $104.8 million from first lien secured debt, $9.8 million from second lien secured debt and $3.0 million from subordinated debt and $26.2 million from other investments.

Expenses

Net expenses for the year ended September 30, 2025 totaled $76.3 million. Base management fee for the same period totaled $16.2 million, incentive fee totaled $9.8 million, debt related interest and other financing expenses totaled $41.6 million and general and administrative expenses totaled $6.1 million and provision for taxes and totaled $2.6 million. The decrease in expenses over the prior year was primarily due to decrease in interest and expenses on debt and a decrease in incentive fees.

Net expenses for the year ended September 30, 2024 totaled $83.7 million. Base management fee for the same period totaled $16.7 million, incentive fee totaled $12.7 million, debt related interest and other financing expenses totaled $45.2 million and general and administrative expenses totaled $6.6 million and provision for taxes totaled $2.6 million.

Net Investment Income

For the years ended September 30, 2025 and 2024 net investment income totaled $46.1 million, or $0.71 per share, and $60.1 million, or $0.92 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 years ended September 30, 2025 and 2024 net realized gain (loss) totaled $(52.4) million and $(33.6) million, respectively. The change in realized gains/losses was primarily due to changes in market conditions of our investments and the values at which they were realized and the fluctuations in the market and in the economy, as discussed above under “Forward-Looking Statements".

Unrealized Appreciation or Depreciation on Investments and Debt

For the years ended September 30, 2025 and 2024, we reported net change unrealized appreciation (depreciation) on investments of $39.2 million and $26.8 million, respectively. As of September 30, 2025 and 2024, our net unrealized appreciation (depreciation) on investments totaled $50.4 million and $11.2 million, respectively. The net change in unrealized appreciation on our investments was primarily due to changes in the capital market conditions of our investments and the values at which they were realized and the fluctuation in the market and in the economy, as discussed above under the “Forward-Looking Statements”.

For the years ended September 30, 2025 and 2024, we reported a net unrealized appreciation (depreciation) in our Truist Credit Facility of $(0.1) million and $(4.4) million, respectively. As of September 30, 2025 and 2024, our net unrealized appreciation (depreciation) on our Truist Credit Facility totaled $(1.0) million and $(1.1) million, respectively. The net change in unrealized appreciation (depreciation) compared to the same periods in their prior periods was primarily due to changes in the capital markets, as further discussed above under “Forward-Looking Statements”.

Net Change in Net Assets Resulting From Operations

Net change in net assets resulting from operations totaled $32.7 million, or $0.50 per share, and $48.9 million, or $0.75 per share, for the years ended September 30, 2025 and 2024, respectively. The decrease in net assets from operations for the year ended September 30, 2025 compared to the prior year was primarily due to lower net investment income was primarily driven by a decrease in investment income from a decrease in our total portfolio and decrease in our weighted average yield on debt, as discussed above under “Forward-Looking Statements”.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. 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. As of September 30, 2025, in accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that we are in compliance with a 150% asset coverage ratio requirement after such borrowing, excluding SBA debentures pursuant to exemptive relief from the SEC received in June 2011. This “Liquidity and Capital Resources” section should be read in conjunction with the “Forward-Looking Statements” section above.

As of September 30, 2025 and 2024, our asset coverage ratio, as computed in accordance with the 1940 Act, was 163% and 164%, respectively.

The annualized weighted average cost of debt for the years ended September 30, 2025 and 2024, inclusive of the fee on the undrawn commitment and amendment costs on the Truist Credit Facility, was 6.1% and 6.5%, respectively.

As of September 30, 2025, we had the multi-currency Truist Credit Facility for up to $500.0 million (increased from $475 million in February 2025), which may be further increased up to $750.0 million in borrowings with certain lenders and Truist Bank (formerly SunTrust Bank), acting as administrative agent, Regions Bank, acting as an additional multicurrency lender, and JPMorgan Chase Bank, N.A., acting as syndication agent for the lenders. As of September 30, 2025 and 2024, we had $426.5 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 6.5% and 7.2%, respectively, exclusive of the fee on undrawn commitments, as of September 30, 2025 and 2024. The Truist Credit Facility is a revolving facility with a stated maturity date of July 29, 2027 and pricing set at 235 basis points over SOFR. As of September 30, 2025 and 2024, we had $73.5 million and $13.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions. The Truist Credit Facility is secured by substantially all of our assets. As of September 30, 2025, we were in compliance with the terms of the Truist Credit Facility.

As of September 30, 2025, we issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.50% per year, commencing November 1, 2021. The effective interest rate is 4.62%. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles,or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

As of September 30, 2025, we issued $165.0 million in aggregate principal amount of our 2026 Notes-2 at a public offering price per note of 99.4%. Interest on the 2026 Notes-2 is paid semiannually on May 1 and November 1 of each year, at a rate of 4.00% per year, commencing May 1, 2022. The effective interest rate is 4.12%. The 2026 Notes-2 mature on November 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes-2 are general,unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes-2 are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes-2 on any securities exchange or automated dealer quotation system.

We may raise additional equity or debt capital through both registered offerings and private offerings of securities, by securitizing a portion of our investments, among other sources. In particular, in connection with the maturities of the 2026 Notes and the 2026-2 Notes, which will mature on May 1, 2026 and November 1, 2026, respectively, we intend to seek alternate sources of financing, including the issuance of additional unsecured notes. Any future additional debt capital we incur, to the extent it is available, may be issued at a higher cost and on less favorable terms and conditions than the Truist Credit Facility, 2026 Notes, and 2026 Notes-2. Furthermore, the Truist Credit Facility availability depends on various covenants and restrictions. The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate or strategic purposes such as stock repurchase program.

We have entered into certain contracts under which we have material future commitments. Under our Investment Management Agreement, which was reapproved by our board of directors (including a majority of our directors who are not interested persons of us or the Investment Adviser) in May 2025 PennantPark Investment Advisers serves as our investment adviser. Payments under our Investment Management Agreement in each reporting period are equal to (1) a management fee equal to a percentage of the value of our average adjusted gross assets and (2) an incentive fee based on our performance.

Under our Administration Agreement, which was most recently reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in May 2025, the administrative services necessary to conduct our day-to-day operations. If requested to provide significant managerial assistance to our portfolio companies, we or the Administrator will be paid an additional amount based on the services provided. Payment under our Administration Agreement is based upon our allocable portion of the Administrator’s overhead in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.

If any of our contractual obligations discussed above are terminated, our costs under new agreements that we enter into may increase. In addition, we will likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under our Investment Management Agreement and our Administration Agreement. Any new investment management agreement would also be subject to approval by our stockholders.

As of September 30, 2025 and 2024, we had cash and cash equivalents of $51.8 million and $49.9 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to allow us to effectively operate our business.

For the year ended September 30, 2025, our operating activities provided cash of $104.8 million and our financing activities used cash of $102.9 million. Our operating activities provided cash primarily for our investment activities and our financing activities used cash primarily from net repayments under our Truist Credit Facility and distributions to stockholders.

For the year ended September 30, 2025 our operating activities used cash of $172.4 million and our financing activities provided cash of $183.4 million. Our operating activities used cash primarily from our investment activities and our financing activities provided cash primarily from borrowings under our Truist Credit Facility.

For more information regarding our borrowing arrangements, see “Business—Leverage” above.

Senior Securities

Information about our senior securities is shown in the following table as of September 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017, and 2016. The report of RSM US LLP, an independent registered public accounting firm, on the Senior Securities table as of September 30, 2025, is attached as an exhibit to this Report.

Class and Year	Total Amount <br>Outstanding (1)		Asset Coverage <br>Per Unit (2), (3)		Average <br>Market Value <br>Per Unit
Truist Credit Facility
Fiscal 2025	$	426,456	$	1,627	N/A
Fiscal 2024		461,456		1,637	N/A
Fiscal 2023		212,420		1,952	N/A
Fiscal 2022		385,920		1,855	N/A
Fiscal 2021		316,545		2,208	N/A
Fiscal 2020		388,252		2,078	N/A
Fiscal 2019		301,636		2,066	N/A
Fiscal 2018		80,520		2,919	N/A
Fiscal 2017		79,393		2,998	N/A
Fiscal 2016		50,340		2,794	N/A
BNP Credit Facility
Fiscal 2019		171,000		2,066	N/A
2019 Notes
Fiscal 2018		250,000		2,919	N/A
Fiscal 2017		250,000		2,998	N/A
Fiscal 2016		250,000		2,794	N/A
2024 Notes
Fiscal 2021		86,250		2,208	$	25.14	(4)
Fiscal 2020		86,250		2,078	23.47		(4)
Fiscal 2019		75,000		2,066	24.87		(4)
2025 Notes
Fiscal 2016		71,250		2,794	24.68		(5)
2026 Notes
Fiscal 2025		150,000		1,627	N/A
Fiscal 2024		150,000		1,637	N/A
Fiscal 2023		150,000		1,952	N/A
Fiscal 2022		150,000		1,855	N/A
Fiscal 2021		150,000		2,208	N/A
2026-2 Notes
Fiscal 2025		165,000		1,627	N/A
Fiscal 2024		165,000		1,637	N/A
Fiscal 2023		165,000		1,952	N/A
Fiscal 2022		165,000		1,855	N/A

Total cost of each class of senior securities outstanding at the end of the period presented in thousands (000s).
The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness at par. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
These amounts exclude SBA debentures from our total amount outstanding and asset coverage per unit computation pursuant to an exemptive relief letter provided by the SEC in June 2011.
The average market value per unit is derived based on the daily closing price of the 2024 Notes trading on The Nasdaq Global Select Market under the symbol “PNNTG.” The 2024 Notes were issued in increments of $25 per unit and commenced trading on September 30, 2019.
The average market value per unit is derived based on the monthly average closing price of the 2025 Notes, which were traded on the New York Stock Exchange, or NYSE, under the symbol “PNTA” since issuance. The 2025 Notes were issued in increments of $25 per unit. On June 29, 2017, the 2025 Notes were redeemed in full.

PennantPark Senior Loan Fund, LLC

In July 2020, we and Pantheon formed PSLF, an unconsolidated joint venture. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company. As of September 30, 2025 and 2024 PSLF had total assets of $1,315.4 million and $1,073.4 million, respectively. PSLF’s portfolio consisted of debt investments in 109 and 102 portfolio companies as of September 30, 2025 and 2024, respectively. As of September 30, 2025, we and Pantheon had remaining commitments to fund first lien secured debt of $8.2 million and $11.7 million, respectively, and equity interests of $5.0 million and $7.1 million, respectively, in PSLF. As of September 30, 2024, we and Pantheon had remaining commitments to fund first lien secured debt of $32.6 million and $46.5 million, respectively, and equity interest of $19.9 million and $28.5 million respectively. As of September 30, 2025, at fair value, the largest investment in a single portfolio company in PSLF was $24.8 million and the five largest investments totaled $121.4 million. As of September 30, 2024 at fair value, the largest investment in a single portfolio company in PSLF was $25.1 million and the five largest investments totaled $109.9 million. PSLF invests in portfolio companies in the same industries in which we may directly invest.

We provide capital to PSLF in the form of subordinated notes and equity interests. As of September 30, 2025, we and Pantheon owned 55.8% and 44.2%, respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2024, we and Pantheon owned 60.5% and 39.5%, respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2025 and 2024, our investment in PSLF consisted of subordinated notes of $140.3 million and $115.9 million, respectively, and equity interests of $82.4 million and $67.4 million, respectively. In October 2024, the Company made a capital contribution of approximately $26.3 million of assets at their most recent fair market value as of the date of the transaction.

We and Pantheon each appointed two members to PSLF’s four-person Member Designees’ Committee, or the Member Designees’ Committee. All material decisions with respect to PSLF, including those involving its investment portfolio, require unanimous approval of quorum of the Member Designees’ Committee. Quorum is defined as (i) the presence of two members of the Member Designees’ Committee; provided that at least one individual is present that was elected, designated or appointed by each of us and Pantheon; (ii) the presence of three members of the Member Designees’ Committee, provided that the individual that was elected, designated or appointed by each of us or Pantheon, as the case may be, with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the Member Designees’ Committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each of us and Pantheon.

Additionally, PSLF, through its wholly-owned subsidiary, or PSLF Subsidiary, has entered into a $400 million (increased from $325.0 million in August 2024) senior secured revolving credit facility, with BNP Paribas, which bears interest at SOFR (or an alternative risk-free interest rate index) plus 225 basis points during the investment period and is subject to leverage and borrowing base restrictions.

In March 2022, PSLF completed a $304.0 million debt securitization in the form of a collateralized loan obligation, or the “2034 Asset-Backed Debt”. The 2034 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO IV, LLC., a wholly-owned and consolidated subsidiary of PSLF, consisting primarily of middle market loans and participation interests in middle market loans. The 2034 Asset-Backed Debt is scheduled to mature in April 2034. On the closing date of the transaction, in consideration of PSLF’s transfer to PennantPark CLO IV, LLC. of the initial closing date loan portfolio, which included loans distributed to PSLF by certain of its wholly owned subsidiaries and us, PennantPark CLO IV, LLC transferred to a wholly owned subsidiary of PSLF 100% of the Subordinated Notes issued by PennantPark CLO IV, LLC. As of September 30, 2025 and 2024, there was $246.0 million of external 2034 Asset-Backed Debt.

On July 26, 2023, CLO VII completed a $300 million debt securitization in the form of a collateralized loan obligation (the "2035 Debt Securitization" or "2035 Asset-Backed Debt"). The 2035 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2035 Debt Securitization was executed through a private placement of: (i) $151.0 million Class A-1a Notes maturing 2035, which bear interest at the three-month SOFR plus 2.7%, (ii) $20.0 million Class A-1b Loans 2035, which bear interest at 6.5%, (iii) $12.0 million Class A-2 Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 3.2%, (iv) $21.0 million Class B Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.1%, (v) $24.0 million Class C Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.7%, (vi) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 7.0%. As of September 30, 2025 and 2024, there was $246.0 million of external 2035 Asset-Backed Debt. On July 21, 2025, CLO VII closed a partial refinancing of the 2035 Debt Securitization where the $21.0 million Class B (B-R) Senior Secured Floating Rate Notes interest rate was decreased to SOFR plus 2.0%, the $24.0 million Class C (C-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 2.3% and the $18.0 million Class D (D-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 3.4%.

On December 23, 2024, PennantPark CLO X, LLC ("CLO X”) completed a $400.5 million debt securitization in the form of a collateralized loan obligation (the "2037 Debt Securitization" or"2037 Asset-Backed Debt"). The 2037 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2037 Debt Securitization was executed through a private placement of: (i) $158.0 million Class A-1 Notes maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (ii) $30.0 million Class A-1A Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iii) $40.0 million Class A-1W Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iv) $16.0 million Class A-2W Loans due 2037, which bear interest at the three-month SOFR plus 1.75%, (v) $28.0 million Class B Notes due 2037, which bear interest at the three-month SOFR plus 1.85%, (vi) $32.0 million Class C Notes due 2037, which bear interest at the three-month SOFR plus 2.40%., (vii) $24.0 million Class D Notes due 2037, which bear interest at the three-month SOFR plus 3.85%. As of September 30, 2025, there was $328.0 million of external 2037 Asset-Backed Debt and $1.9 million of un-amortized financing cost.

Below is a summary of PSLF’s portfolio at fair value ($ in thousands):

($ in thousands)	September 30, 2025			September 30, 2024
Total investments	$	1,265,901		$	1,031,225
Weighted average cost yield on income producing investments		10.1	%		11.3	%
Number of portfolio companies in PSLF		109			102
Largest portfolio company investment at fair value	$	24,802		$	25,073
Total of five largest portfolio company investments at fair value	$	121,360		$	109,927

Below is a listing of PSLF’s individual investments as of September 30, 2025 ($ in thousands):

Issuer Name	Acquisition	Maturity	Industry	Current<br> Coupon	Basis Point<br>Spread Above<br>Index (1)	Par		Cost		Fair Value (2)
First Lien Secured Debt - 1,035.8% of Net Assets
ACP Avenu Buyer, LLC	04/23/24	10/02/29	Business Services	9.04%	SOFR+475		7,590	$	7,474	$	7,514
Acp Falcon Buyer, Inc.	10/06/23	08/01/29	Business Services	9.79%	SOFR+550		15,196		14,963		15,348
AFC-Dell Holding Corp.	02/23/24	04/09/27	Distribution	9.83%	SOFR+550		16,181		16,072		16,100
Ad.Net Acquisition, LLC	03/02/22	05/07/26	Media	10.26%	SOFR+626		4,788		4,788		4,788
Aechelon Technology, Inc.	12/23/24	08/16/29	Aerospace and Defense	9.91%	SOFR+575		4,800		4,718		4,800
Alpine Acquisition Corp II (4), (7)	10/12/22	11/30/26	Containers, Packaging and Glass				15,185		15,056		7,896
Amsive Holdings Corporation	03/02/22	12/10/26	Media	10.35%	SOFR+635		13,805		13,745		13,667
Anteriad, LLC (f/k/a MeritDirect, LLC)	03/02/22	06/30/26	Media	9.90%	SOFR+590		13,837		13,803		13,837
Arcfield Acquisition Corp.	07/26/22	10/28/31	Aerospace and Defense	9.31%	SOFR+500		14,888		14,867		14,813
Archer Lewis, LLC	12/20/24	08/28/29	Healthcare, Education and Childcare	9.75%	SOFR+575		15,581		15,426		15,581
Argano, LLC	12/16/24	09/13/29	Business Services	9.89%	SOFR+575		14,850		14,730		14,628
BLC Holding Company, INC.	02/24/25	11/20/30	Environmental Services	8.50%	SOFR+450		12,013		11,942		12,013
Beacon Behavioral Support Services, LLC	09/16/24	06/21/29	Healthcare, Education and Childcare	9.50%	SOFR+550		24,607		24,305		24,607
Best Practice Associates, LLC	01/21/25	11/08/29	Aerospace and Defense	10.91%	SOFR+675		19,850		19,606		19,701
Beta Plus Technologies, Inc.	08/11/22	07/02/29	Business Services	9.75%	SOFR+575		14,550		14,375		14,405
Big Top Holdings, LLC	06/26/24	02/28/30	Manufacturing / Basic Industries	9.25%	SOFR+525		6,626		6,531		6,626
Bioderm, Inc.	06/26/24	01/31/28	Healthcare, Education and Childcare	10.77%	SOFR+650		8,798		8,726		8,688
Blackhawk Industrial Distribution, Inc.	07/24/23	09/17/26	Distribution	9.40%	SOFR+540		25,244		25,052		24,802
Boss Industries, LLC	07/21/25	12/27/30	Conglomerate Manufacturing	9.00%	SOFR+500		5,955		5,916		5,955
Burgess Point Purchaser Corporation	10/03/22	07/25/29	Auto Sector	9.51%	SOFR+535		6,186		5,926		5,348
C5MI Acquisition, LLC	10/09/24	07/31/29	Business Services	10.00%	SOFR+600		7,425		7,334		7,425
CF512, Inc.	12/29/21	08/20/26	Media	10.36%	SOFR+619		9,042		8,983		8,952
Carisk Buyer, Inc.	02/09/24	12/01/29	Healthcare, Education and Childcare	9.00%	SOFR+500		11,370		11,276		11,370
Carnegie Dartlet, LLC	06/26/24	02/07/30	Education	9.66%	SOFR+550		22,655		22,360		22,428
Cartessa Aesthetics, LLC	09/09/22	06/14/28	Distribution	10.00%	SOFR+600		21,880		21,708		21,880
Case Works, LLC	11/26/24	10/01/29	Business Services	9.25%	SOFR+525		10,436		10,366		9,966
Commercial Fire Protection Holdings, LLC	12/16/24	09/23/30	Business Services	8.50%	SOFR+450		20,831		20,730		20,831
Compex Legal Services, Inc.	12/23/24	02/09/26	Business Services	9.55%	SOFR+555		931		931		931
Confluent Health, LLC	12/23/24	11/30/28	Healthcare, Education and Childcare	11.66%	SOFR+750		1,950		1,950		1,940
CJX Borrower, LLC	08/12/22	07/13/27	Media	10.08%	SOFR+576		8,624		8,614		8,624
Crane 1 Services, Inc.	07/24/23	08/16/27	Personal, Food and Miscellaneous Services	10.03%	SOFR+586		5,271		5,243		5,232
DRI Holding Inc.	08/04/22	12/21/28	Media	9.51%	SOFR+535		5,770		5,442		5,655
DRS Holdings III, Inc.	03/02/22	11/03/25	Consumer Products	9.41%	SOFR+525		4,478		4,478		4,523
Duggal Acquisition, LLC	12/23/24	09/30/30	Marketing Services	8.75%	SOFR+475		4,950		4,910		4,950
Dynata, LLC - First Out Term Loan	07/15/24	07/17/28	Business Services	9.46%	SOFR+526		1,572		1,486		1,565
Dynata, LLC - Last Out Term Loan	07/15/24	10/16/28	Business Services	9.96%	SOFR+576		9,670		9,670		7,873
EDS Buyer, LLC	07/24/23	01/10/29	Aerospace and Defense	8.75%	SOFR+475		23,169		22,915		23,227
ETE Intermediate II, LLC	07/24/23	05/29/29	Personal, Food and Miscellaneous Services	9.16%	SOFR+500		12,124		11,963		12,124
Emergency Care Partners, LLC	12/23/24	10/18/27	Healthcare, Education and Childcare	9.00%	SOFR+500		6,930		6,895		6,930
EvAL Home Care Solutions Intermediate, LLC	07/23/24	05/10/30	Healthcare, Education and Childcare	9.91%	SOFR+575		7,040		6,955		7,040
Exigo Intermediate II, LLC	07/24/23	03/15/27	Business Services	10.51%	SOFR+635		9,551		9,491		9,551
Five Star Buyer, Inc.	07/24/23	02/23/28	Hotels, Motels, Inns and Gaming	13.35%	SOFR+915		4,140		4,096		4,057
GGG Midco, LLC	12/16/24	09/27/30	Home and Office Furnishings, Housewares and Durable Consumer Products	9.00%	SOFR+500		12,485		12,377		12,485
Global Holdings InterCo, LLC	03/02/22	03/16/26	Banking, Finance, Insurance & Real Estate	9.74%	SOFR+560		6,593		6,589		6,593
Graffiti Buyer, Inc.	03/02/22	08/10/27	Distribution	9.80%	SOFR+560		3,959		3,928		3,880
HEC Purchaser Corp.	09/16/24	06/17/29	Healthcare, Education and Childcare	8.87%	SOFR+500		7,798		7,723		7,798
HV Watterson Holdings, LLC (4)	09/09/22	12/17/26	Business Services	8.00%			15,570		15,496		8,548
HW Holdco, LLC	03/02/22	05/10/26	Media	9.90%	SOFR+590		23,593		23,537		23,593
Hancock Roofing And Construction, LLC	03/02/22	12/31/26	Insurance	9.60%	SOFR+550		6,029		6,029		5,968
Harris & Co, LLC	12/20/24	08/09/30	Financial Services	9.16%	SOFR+500		19,182		18,995		19,015
Hills Distribution, Inc.	02/13/24	11/08/29	Distribution	10.32%	SOFR+600		14,148		13,992		14,148
IG Investments Holdings, LLC	03/02/22	09/22/28	Business Services	9.31%	SOFR+500		4,350		4,305		4,328
Imagine Acquisitionco, Inc.	07/24/23	11/15/27	Business Services	9.29%	SOFR+510		5,452		5,402		5,452
Infinity Home Services Holdco, Inc.	02/07/23	12/28/28	Personal, Food and Miscellaneous Services	10.16%	SOFR+600		13,749		13,622		13,749
Infolinks Media Buyco, LLC	07/24/23	11/01/26	Media	9.50%	SOFR+550		13,046		13,007		12,981
Inovex Information Systems Incorporated	03/04/25	12/17/30	Business Services	9.25%	SOFR+525		5,955		5,918		5,955
Inventus Power, Inc.	10/10/23	01/15/26	Consumer Products	11.78%	SOFR+761		12,968		12,934		12,968
Kinetic Purchaser, LLC	07/24/23	11/10/27	Consumer Products	10.15%	SOFR+615		13,701		13,590		11,646
LAV Gear Holdings, Inc. - Takeback TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594		2,295		2,295		2,295
LAV Gear Holdings, Inc. - Priority TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594		729		720		898
Lash OpCo, LLC	03/02/22	02/18/27	Consumer Products	12.16%	SOFR+785		21,525		21,466		20,987
Issuer Name	Acquisition	Maturity		Industry	Current<br> Coupon		Basis Point<br>Spread Above<br>Index (1)		Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Lightspeed Buyer, Inc.	03/02/22	02/03/27		Healthcare, Education and Childcare	8.75%		SOFR+475			20,115		20,017		20,115
LJ Avalon Holdings, LLC	07/24/23	02/01/30		Environmental Services	8.77%		SOFR+450			7,636		7,550		7,636
MAG DS Corp.	03/02/22	04/01/27		Aerospace and Defense	9.60%		SOFR+560			8,175		7,939		8,142
MDI Buyer, Inc.	12/20/24	07/25/28		Chemicals, Plastics and Rubber	8.95%		SOFR+475			19,728		19,568		19,728
Marketplace Events Acquisition, LLC	03/04/25	12/19/30		Media	9.12%		SOFR+525			19,900		19,727		19,900
MBS Holdings, Inc.	03/02/22	04/16/27		Telecommunications	9.30%		SOFR+510			8,244		8,197		8,244
Meadowlark Acquirer, LLC	04/01/22	12/10/27		Business Services	9.65%		SOFR+565			2,893		2,865		2,893
Medina Health, LLC	01/18/24	10/20/28		Healthcare, Education and Childcare	10.25%		SOFR+625			19,423		19,311		19,520
Megawatt Acquisitionco, Inc.	07/17/24	03/01/30		Business Services	9.25%		SOFR+525			7,880		7,788		7,502
MOREgroup Holdings, Inc.	08/29/24	01/16/30		Business Services	9.25%		SOFR+525			19,700		19,472		19,700
Municipal Emergency Services, Inc.	03/02/22	10/01/27		Distribution	9.15%		SOFR+515			9,575		9,512		9,575
NBH Group, LLC	03/02/22	08/19/26		Healthcare, Education and Childcare	10.12%		SOFR+585			7,180		7,159		7,180
NORA Acquisition, LLC	11/21/23	08/31/29		Healthcare, Education and Childcare	10.35%		SOFR+635			20,090		19,860		19,939
OSP Embedded Purchaser, LLC	01/17/25	12/17/29		Aerospace and Defense	9.76%		SOFR+575			18,926		18,793		18,661
Omnia Exterior Solutions, LLC	07/25/24	12/29/29		Diversified Conglomerate Service	9.26%		SOFR+525			17,982		17,766		17,622
One Stop Mailing, LLC	06/07/23	05/07/27		Transportation	10.53%		SOFR+636			8,274		8,199		8,274
PCS Midco, Inc.	08/29/24	03/01/30		Financial Services	9.75%		SOFR+575			5,753		5,688		5,753
Pink Lily Holdco, LLC (5)	04/01/22	11/09/27		Retail	4.27%					8,761		8,699		3,504
Pacific Purchaser, LLC	03/21/24	10/02/28		Business Services	10.42%		SOFR+625			12,773		12,602		12,721
PAR Excellence Holdings, Inc.	11/26/24	09/03/30		Healthcare, Education and Childcare	9.17%		SOFR+500			9,925		9,842		9,751
Project Granite Buyer, Inc.	07/21/25	12/31/30		Business Services	9.75%		SOFR+575			5,955		5,903		6,015
RRA Corporate, LLC	12/23/24	08/15/29		Business Services	9.25%		SOFR+525			3,960		3,930		3,936
RTIC Subsidiary Holdings, LLC	07/23/24	05/03/29		Consumer Products	9.75%		SOFR+575			24,700		24,365		24,453
Radius Aerospace, Inc.	11/06/19	03/29/27		Aerospace and Defense	10.45%		SOFR+615			11,780		11,714		11,515
Rancho Health MSO, Inc.	03/02/22	06/20/29		Healthcare, Education and Childcare	9.29%		SOFR+500			22,704		22,631		22,704
Recteq, LLC	06/26/24	01/29/26		Consumer Products	10.40%		SOFR+640			9,550		9,537		9,526
Riverpoint Medical, LLC	03/02/22	06/21/27		Healthcare, Education and Childcare	8.75%		SOFR+475			3,891		3,861		3,891
Ro Health, LLC	04/03/25	01/17/31		Healthcare Providers & Services	8.50%		SOFR+450			9,308		9,249		9,308
Rural Sourcing Holdings, Inc.	07/24/23	06/16/29		Professional Services	9.92%		SOFR+575			5,435		5,367		4,891
Sabel Systems Technology Solutions, LLC	01/07/25	10/31/30		Business Services	9.91%		SOFR+575			11,910		11,813		11,910
Sales Benchmark Index, LLC	03/02/22	07/07/26		Business Services	10.20%		SOFR+620			6,617		6,597		6,617
Seacoast Service Partners NA, LLC	07/21/25	12/20/29		Diversified Conglomerate Service	9.00%		SOFR+500			4,963		4,926		4,759
Seaway Buyer, LLC	09/14/22	06/13/29		Chemicals, Plastics and Rubber	10.15%		SOFR+615			14,550		14,394		13,568
Sigma Defense Systems, LLC	12/01/23	12/20/27		Telecommunications	10.31%		SOFR+615			23,904		23,741		23,904
SpendMend Holdings, LLC	07/24/23	03/01/28		Business Services	9.15%		SOFR+515			9,412		9,261		9,412
STG Distribution, LLC - First Out New Money Term Loans	10/03/24	10/03/29		Transportation	12.57%		SOFR+835			1,986		1,895		1,768
STG Distribution, LLC - Second Out Term Loans (5)	10/03/24	10/03/29		Transportation	5.32%					4,566		2,594		365
SV-Aero Holdings, LLC	10/31/24	11/01/30		Aerospace and Defense	9.00%		SOFR+500			14,719		14,656		14,719
Systems Planning And Analysis, Inc.	03/02/22	08/16/27		Aerospace and Defense	8.92%		SOFR+475			16,919		16,816		16,784
TCG 3.0 Jogger Acquisitionco, Inc.	02/27/24	01/23/29		Media	10.52%		SOFR+650			9,850		9,732		9,801
TMII Enterprises, LLC	07/24/23	12/22/28		Personal, Food and Miscellaneous Services	8.66%		SOFR+450			19,878		19,692		19,878
TPC US Parent, LLC	03/02/22	11/24/25		Food	10.19%		SOFR+590			11,275		11,269		11,185
Team Services Group, LLC	07/24/23	12/20/27		Healthcare, Education and Childcare	9.56%		SOFR+525			9,588		9,434		9,548
The Bluebird Group, LLC	03/02/22	07/28/26		Business Services	9.90%		SOFR+590			16,348		16,306		16,348
The Vertex Companies, LLC	03/02/22	08/31/28		Business Services	8.93%		SOFR+475			14,480		14,393		14,408
Transgo, LLC	06/07/24	12/29/28		Auto Sector	9.91%		SOFR+575			16,363		16,215		16,486
Tyto Athene, LLC	03/02/22	04/01/28		Aerospace and Defense	9.19%		SOFR+490			11,342		11,271		11,058
Urology Management Holdings, Inc.	07/24/23	06/15/27		Healthcare, Education and Childcare	9.66%		SOFR+550			12,380		12,333		12,380
US Fertility Enterprises, LLC	09/03/25	10/11/31		Healthcare, Education and Childcare	8.67%		SOFR+450			4,975		4,931		4,975
Watchtower Buyer, LLC	09/19/24	12/01/29		Consumer Products	10.00%		SOFR+600			23,114		22,912		22,885
Wash & Wax Systems, LLC	04/30/25	04/30/28		Business Services	9.81%		SOFR+550			6,577		6,686		6,708
Total First Lien Secured Debt												1,276,720		1,253,543
Subordinated Debt - 3.7% of Net Assets
Wash & Wax Systems, LLC - Subordinate Debt	04/30/25	07/30/28		Business Services	12.00%					4,422		4,422		4,422
Total Subordinated Debt										4,422		4,422		4,422
Equity Securities - 6.6% of Net Assets
New Insight Holdings, Inc. - Common Equity	07/15/24		—	Business Services		—		—		134,330		2,351		2,014
48Forty Intermediate Holdings, Inc. - Common Equity	11/05/24		—	Containers, Packaging and Glass		—		—		1,988		—		—
Wash & Wax Group, LP - Common Equity	04/30/25		—	Business Services		—		—		2,803		5,002		5,165
White Tiger Newco, LLC - Common Equity	07/31/25		—	Business Services		—		—		10,805		824		757
Total Equity Securities												8,177		7,936
Total Investments - 1,046.0% of Net Assets(3)(6)												1,289,319		1,265,901
Issuer Name	Acquisition	Maturity	Industry	Current<br> Coupon	Basis Point<br>Spread Above<br>Index (1)	Par	Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---
Cash and Cash Equivalents - 33.9%
JPMorgan U.S. Government (Money Market Fund)				4.09%				7,972		7,972
Goldman Sachs Financial Square Government Fund (Money Market Fund)				4.18%				6,946		6,946
BlackRock Federal FD Institutional 81 (Money Market Fund)				4.19%				1,920		1,920
Non-Money Market Cash								24,147		24,147
Total Cash and Cash Equivalents								40,985		40,985
Total Investments and Cash Equivalents - 1,079.8% of Net Assets							$	1,330,304	$	1,306,886
Liabilities in Excess of Other Assets — (979.8)% of Net Assets										(1,185,860	)
Members' Equity—100.0%									$	121,026

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR" or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSLF’s accounting policy.
As of September 30, 2025, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,289.3 million, $1,265.9 million and 1,046.0%
Non-accrual security
Partial non-accrual PIK Security.
All of our investments are not registered under the 1933 Act and have restrictions on resale.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC, or,3) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VII, LLC, or 4) securing the 2037 Asset-Backed Debt and held through PennantPark CLO X, LLC

Below is a listing of PSLF’s individual investments as of September 30, 2024 ($ in thousands):

Issuer Name	Maturity	Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index (1)	Par		Cost		Fair Value (2)
First Lien Secured Debt - 916.4%of Net Assets
A1 Garage Merger Sub, LLC	12/22/28	Personal, Food and Miscellaneous Services		10.95	%	SOFR+610		14,738	$	14,504	$	14,738
ACP Avenu Buyer, LLC	10/02/29	Business Services		10.57	%	SOFR+525		7,667		7,526		7,418
ACP Falcon Buyer, Inc.	08/01/29	Business Services		10.83	%	SOFR+550		15,351		15,067		15,412
Ad.net Acquisition, LLC	05/07/26	Media		11.28	%	SOFR+626		4,838		4,838		4,838
Aeronix, Inc. - Term Loan	12/18/28	Aerospace and Defense		9.85	%	SOFR+525		14,888		14,700		14,888
AFC - Dell Holding Corp.	04/09/27	Distribution		10.49	%	SOFR+550		7,131		7,059		7,059
Alpine Acquisition Corp II	11/30/26	Containers, Packaging and Glass		11.30	%	SOFR+610		14,687		14,459		14,100
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	06/10/25	Media		10.75	%	SOFR+650		13,813		13,769		13,675
Anteriad Holdings Inc (fka MeritDirect)	06/30/26	Media		10.50	%	SOFR+590		14,714		14,638		14,714
Applied Technical Services, LLC	12/29/26	Environmental Services		10.50	%	SOFR+590		14,522		14,389		14,304
Arcfield Acquisition Corp.	08/03/29	Aerospace and Defense		11.56	%	SOFR+625		21,574		21,270		21,466
Beacon Behavioral Support Services, LLC	06/21/29	Healthcare, Education and Childcare		9.92	%	SOFR+525		14,963		14,750		14,738
Beta Plus Technologies, Inc.	07/01/29	Business Services		10.35	%	SOFR+575		14,700		14,486		14,259
Big Top Holdings, LLC	02/28/30	Manufacturing / Basic Industries		11.18	%	SOFR+625		6,965		6,852		6,965
Bioderm, Inc.	01/31/28	Healthcare, Education and Childcare		11.84	%	SOFR+650		8,887		8,795		8,776
Blackhawk Industrial Distribution, Inc.	09/17/26	Distribution		10.92	%	SOFR+640		20,504		20,245		20,152
BlueHalo Global Holdings, LLC	10/31/25	Aerospace and Defense		10.70	%	SOFR+600		13,292		13,218		13,026
Broder Bros., Co.	12/04/25	Personal and Non-Durable Consumer Products		10.97	%	SOFR+611		9,374		9,374		9,374
Burgess Point Purchaser Corporation	07/25/29	Auto Sector		10.20	%	SOFR+535		4,874		4,625		4,585
Carisk Buyer, Inc.	11/30/29	Healthcare, Education and Childcare		10.35	%	SOFR+575		5,473		5,400		5,390
Carnegie Dartlet, LLC	02/07/30	Education		10.35	%	SOFR+550		9,950		9,810		9,801
Cartessa Aesthetics, LLC	06/14/28	Distribution		10.35	%	SOFR+575		17,106		16,879		17,106
CF512, Inc.	08/20/26	Media		11.21	%	SOFR+619		2,891		2,876		2,848
Connatix Buyer, Inc.	07/13/27	Media		10.53	%	SOFR+561		8,716		8,702		8,716
Crane 1 Services, Inc.	08/16/27	Personal, Food and Miscellaneous Services		10.71	%	SOFR+586		2,549		2,529		2,530
Dr. Squatch, LLC	08/31/27	Personal and Non-Durable Consumer Products		9.95	%	SOFR+535		22,993		22,842		22,993
DRI Holding Inc.	12/21/28	Media		10.20	%	SOFR+535		5,830		5,423		5,626
DRS Holdings III, Inc.	11/03/25	Consumer Products		11.20	%	SOFR+635		13,777		13,760		13,667
Dynata, LLC - First Out Term Loan	07/15/28	Business Services		10.38	%	SOFR+526		1,588		1,476		1,586
Dynata, LLC - Last Out Term Loan	10/15/28	Business Services		10.88	%	SOFR+576		9,768		9,768		8,993
EDS Buyer, LLC	01/10/29	Aerospace and Defense		10.35	%	SOFR+575		11,144		11,013		10,977
ETE Intermediate II, LLC	05/29/29	Personal, Food and Miscellaneous Services		11.56	%	SOFR+650		12,249		12,049		12,249
Eval Home Health Solutions Intermediate, LLC	05/10/30	Healthcare, Education and Childcare		10.85	%	SOFR+575		7,396		7,293		7,322
Exigo Intermediate II, LLC	03/15/27	Business Services		11.20	%	SOFR+635		9,651		9,556		9,603
Fairbanks Morse Defense	06/17/28	Aerospace and Defense		9.74	%	SOFR+450		3,491		3,417		3,495
Five Star Buyer, Inc.	02/23/28	Hotels, Motels, Inns and Gaming		12.21	%	SOFR+710		4,241		4,175		4,241
Global Holdings InterCo LLC	03/16/26	Banking, Finance, Insurance & Real Estate		11.43	%	SOFR+615		6,952		6,940		6,605
Graffiti Buyer, Inc.	08/10/27	Distribution		10.45	%	SOFR+560		3,118		3,081		3,087
Hancock Roofing and Construction L.L.C.	12/31/26	Insurance		10.20	%	SOFR+560		6,146		6,146		6,023
HEC Purchaser Corp.	06/17/29	Healthcare, Education and Childcare		9.75	%	SOFR+550		7,980		7,887		7,924
Hills Distribution, Inc	11/08/29	Distribution		11.11	%	SOFR+600		14,292		14,106		14,149
HV Watterson Holdings, LLC	12/17/26	Business Services	12.00% (PIK 4.0%)					15,144		15,019		13,887
HW Holdco, LLC	05/10/26	Media		11.04	%	SOFR+590		18,355		18,296		18,355
IG Investments Holdings, LLC	09/22/28	Business Services		11.35	%	SOFR+610		4,383		4,322		4,339
Imagine Acquisitionco, LLC	11/15/27	Business Services		10.20	%	SOFR+510		5,509		5,440		5,481
Infinity Home Services Holdco, Inc.	12/28/28	Personal, Food and Miscellaneous Services		11.49	%	SOFR+685		13,890		13,730		14,029
Infolinks Media Buyco, LLC	11/01/26	Media		10.10	%	SOFR+550		12,286		12,214		12,194
Inventus Power, Inc.	06/30/25	Consumer Products		12.46	%	SOFR+761		13,101		12,980		12,905
Kinetic Purchaser, LLC	11/10/27	Consumer Products		10.75	%	SOFR+615		13,701		13,520		13,701
LAV Gear Holdings, Inc.	10/31/25	Leisure, Amusement, Motion Pictures, Entertainment		11.66	%	SOFR+640		4,613		4,601		4,530
Lash OpCo, LLC	02/18/27	Consumer Products	12.94% (PIK 5.10%)			SOFR+785		20,447		20,338		20,243
Lightspeed Buyer Inc.	02/03/26	Healthcare, Education and Childcare		10.20	%	SOFR+535		14,267		14,170		14,267
LJ Avalon Holdings, LLC	01/31/30	Environmental Services		10.48	%	SOFR+525		6,255		6,151		6,255
MAG DS Corp.	04/01/27	Aerospace and Defense		10.20	%	SOFR+550		8,266		7,890		7,770
Magenta Buyer, LLC -First out	07/31/28	Software		12.13	%	SOFR+701		450		450		425
Magenta Buyer, LLC -Second out	07/31/28	Software		12.38	%	SOFR+801		569		569		390
Magenta Buyer, LLC -Third out	07/31/28	Software		11.63	%	SOFR+726		2,109		2,109		617
MBS Holdings, Inc.	04/16/27	Telecommunications		10.67	%	SOFR+585		8,330		8,256		8,338
Meadowlark Acquirer, LLC	12/10/27	Business Services		10.50	%	SOFR+590		2,923		2,884		2,850
Medina Health, LLC	10/20/28	Healthcare, Education and Childcare		10.85	%	SOFR+625		14,912		14,765		14,912
Megawatt Acquisitionco, Inc.	03/01/30	Business Services		9.85	%	SOFR+525		7,960		7,851		7,514
MOREgroup Holdings, LLC	01/16/30	Business Services		10.35	%	SOFR+575		12,450		12,303		12,263
Municipal Emergency Services, Inc.	10/01/27	Distribution		9.77	%	SOFR+515		5,912		5,822		5,912
NBH Group LLC	08/19/26	Healthcare, Education and Childcare		11.19	%	SOFR+585		7,353		7,311		7,133
NORA Acquisition, LLC	08/31/29	Healthcare, Education and Childcare		10.95	%	SOFR+635		14,850		14,597		14,850
Omnia Exterior Solutions, LLC	12/29/29	Diversified Conglomerate Service		10.01	%	SOFR+550		9,768		9,650		9,622
One Stop Mailing, LLC	5/7/2027	Transportation		11.21	%	SOFR+636		8,380		8,256		8,380
Owl Acquisition, LLC	2/4/2028	Education		10.20	%	SOFR+535		3,893		3,811		3,825
Ox Two, LLC	5/18/2026	Distribution		11.12	%	SOFR+651		9,340		9,307		9,340
Pacific Purchaser, LLC	10/2/2028	Business Services		11.51	%	SOFR+600		12,903		12,682		12,877
PCS Midco, Inc.	3/1/2030	Financial Services		10.81	%	SOFR+575		5,812		5,735		5,812
Issuer Name	Maturity		Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index (1)		Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
PL Acquisitionco, LLC	11/9/2027		Retail	11.99% (PIK 3.5%)			SOFR+725			8,193		8,100		6,554
Quantic Electronics, LLC	11/19/2026		Aerospace and Defense		10.95	%	SOFR+635			3,280		3,245		3,263
RTIC Subsidiary Holdings, LLC	5/3/2029		Consumer Products		10.35	%	SOFR+575			19,950		19,673		19,551
Radius Aerospace, Inc.	3/31/2025		Aerospace and Defense		10.75	%	SOFR+575			12,565		12,543		12,313
Rancho Health MSO, Inc.	12/18/2025		Healthcare, Education and Childcare		10.85	%	SOFR+560			5,530		5,530		5,530
Reception Purchaser, LLC	4/28/2028		Transportation		25.00	%	SOFR+615			4,937		4,888		3,703
Recteq, LLC	1/29/2026		Consumer Products		11.75	%	SOFR+715			9,650		9,592		9,554
Riverpoint Medical, LLC	6/21/2025		Healthcare, Education and Childcare		9.85	%	SOFR+525			3,932		3,919		3,936
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	6/16/2029		Professional Services		10.74	%	SOFR+575			4,336		4,268		4,282
S101 Holdings Inc.	12/29/2026		Electronics		11.48	%	SOFR+615			6,467		6,387		6,402
Sales Benchmark Index LLC	1/3/2025		Business Services		10.80	%	SOFR+620			6,676		6,668		6,676
Sargent & Greenleaf Inc.	12/20/2024		Electronics	12.45% (PIK 1.00%)			SOFR+760			4,634		4,634		4,634
Seaway Buyer, LLC	6/13/2029		Chemicals, Plastics and Rubber		10.75	%	SOFR+615			14,700		14,510		14,186
Sigma Defense Systems, LLC	12/18/2027		Telecommunications		11.50	%	SOFR+690			14,621		14,465		14,475
Simplicity Financial Marketing Group Holdings, Inc	12/2/2026		Banking, Finance, Insurance & Real Estate		11.38	%	SOFR+640			11,359		11,207		11,472
Skopima Consilio Parent, LLC	5/17/2028		Business Services		9.46	%	SOFR+461			1,290		1,269		1,289
Smartronix, LLC	11/23/2028		Aerospace and Defense		10.35	%	SOFR+610			25,078		24,798		25,073
Solutionreach, Inc.	7/17/2025		Communications		12.40	%	SOFR+715			9,239		9,216		9,239
SpendMend Holdings, LLC	3/1/2028		Business Services		10.26	%	SOFR+565			9,510		9,302		9,510
Summit Behavioral Healthcare, LLC	11/24/2028		Healthcare, Education and Childcare		9.31	%	SOFR+425			3,554		3,398		3,305
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	8/16/2027		Aerospace and Defense		10.26	%	SOFR+500			15,803		15,600		15,772
TCG 3.0 Jogger Acquisitionco, Inc.	1/23/2029		Media		11.10	%	SOFR+650			9,950		9,800		9,851
TPC US Parent, LLC	11/24/2025		Food		10.98	%	SOFR+565			11,392		11,330		11,392
TWS Acquisition Corporation	6/6/2025		Education		11.33	%	SOFR+640			1,568		1,567		1,568
Team Services Group, LLC	11/24/2028		Healthcare, Education and Childcare		9.95	%	SOFR+510			9,661		9,462		9,537
Teneo Holdings LLC	3/13/2031		Business Services		9.60	%	SOFR+475			2,985		2,955		2,994
The Bluebird Group LLC	7/27/2026		Business Services		11.25	%	SOFR+665			14,445		14,404		14,445
The Vertex Companies, LLC	8/31/2027		Business Services		10.99	%	SOFR+610			7,611		7,536		7,611
Transgo, LLC	12/29/2028		Auto Sector		10.60	%	SOFR+575			14,479		14,282		14,479
Tyto Athene, LLC	4/3/2028		Aerospace and Defense		10.23	%	SOFR+490			11,393		11,306		11,165
Urology Management Holdings, Inc.	6/15/2026		Healthcare, Education and Childcare		11.46	%	SOFR+550			10,928		10,836		10,819
Watchtower Buyer, LLC	12/1/2029		Consumer Products		10.60	%	SOFR+600			13,942		13,769		13,803
Wildcat Buyerco, Inc.	2/27/2027		Electronics		10.60	%	SOFR+575			19,256		19,126		19,256
Zips Car Wash, LLC	12/31/2024		Business Services	12.46% (PIK 1.5%)			SOFR+740			19,687		19,648		18,801
Total First Lien Secured Debt												1,033,954		1,028,874
Equity Security - 2.1% of Net Assets
Dynata, LLC - Common Equity		—	Business Services		—			—		134		2,351		2,351
Total Investments - 918.5% of Net Assets (3)(4)												1,036,305		1,031,225
Cash and Cash Equivalents - 32.6% o f Net Assets
BlackRock Federal FD Institutional 30 (Money Market Fund)												36,595		36,595
Total Cash and Cash Equivalents												36,595		36,595
Total Investments and Cash Equivalents - 951.1% of Net Assets											$	1,072,900	$	1,067,820
Liabilities in Excess of Other Assets — (851.1)% of Net Assets														(955,549	)
Members' Equity—100.0%													$	112,271

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR" or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSLF’s accounting policy.
As of September 30, 2024, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,036.3 million, $1,031.2 million and 918.5%
All of our investments are not registered under the 1933 Act and have restrictions on resale.
The securities are, 1) pledged as collateral under the BNP Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC; or, 3) securing the 2035 Asset-Backed Debt held through PennantPark CLO VII, LLC

Below are the consolidated statements of assets and liabilities for PSLF ($ in thousands):

		September 30, 2024
Assets
Investments at fair value (amortized cost—1,289,319 and 1,036,305, respectively)	1,265,901	$	1,031,225
Cash and cash equivalents (cost—40,985 and 36,595, respectively)	40,985		36,595
Interest receivable	5,271		5,089
Receivable for investments sold	1,055		—
Prepaid expenses and other assets	2,148		372
Due from affiliate	87		71
Total assets	1,315,447		1,073,352
Liabilities
2037 Asset-backed debt, net (par—328,000 and 0, respectively and unamortized deferred financing cost of 1,887 and 0, respectively)	326,113		—
2034 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 940 and 1,328, respectively)	245,060		244,672
2035 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 1,434 and 1,882, respectively)	244,566		244,118
Credit facility payable	99,600		247,600
Subordinated notes payable to members	250,808		191,546
Payable for investments purchased	—		7,314
Interest payable on credit facility and asset backed debt	13,730		12,525
Distribution payable to members	8,000		8,000
Interest payable on subordinated notes to members	5,305		4,372
Accounts payable and accrued expenses	1,189		934
Due to affiliate	50		—
Total liabilities	1,194,421		961,081
Members' equity	121,026		112,271
Total liabilities and members' equity	1,315,447	$	1,073,352

All values are in US Dollars.

* For the years ended of September 30, 2025 and 2024, PSLF had zero million of unfunded commitments to fund investments.

Below are the consolidated statements of operations for PSLF ($ in thousands):

	Year Ended September 30,
	2025			2024
Investment income:
Interest	$	138,501		$	114,231
Other income		1,875			1,023
Total investment income		140,376			115,254
Expenses:
Interest expense on credit facility and asset-backed debt		67,975			54,405
Interest expense on subordinated notes to members		30,436			24,861
Administration services expense		3,457			2,423
General and administrative expenses		1,494			1,360
Expenses before debt issuance costs		103,362			83,049
Debt issuance costs		250			—
Total expenses		103,612			83,049
Net investment income		36,764			32,205
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments		(9,215	)		(2,838	)
Net realized gain (loss) on debt extinguishment		(187	)		—
Net change in unrealized appreciation (depreciation) on investments		(18,344	)		1,462
Net realized and unrealized gain (loss) on investments		(27,746	)		(1,376	)
Net increase (decrease) in members' equity resulting from operations	$	9,018		$	30,829

* No management or incentive fees are payable by PSLF.

Distributions

In order to be treated as a RIC for federal income tax purposes and to not be subject to corporate-level tax on undistributed income or gains, we are required, under Subchapter M of the Code, to annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of our investment company taxable income, determined without regard to any deduction for dividends paid.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year an amount at least equal to the Excise Tax Avoidance Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, contingent on our ability to be subject to tax as a RIC, in order to provide us with additional liquidity.

During the years ended September 30, 2025 and 2024, we declared distributions of $0.96 per share and $0.88 per share, respectively, for total distributions of $62.7 million and $57.4 million. We monitor available net 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.

We intend to make monthly distributions to our stockholders. Our monthly distributions, if any, are determined by our board of directors.

We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage ratio for borrowings applicable to us as a BDC under the 1940 Act and/or due to provisions in future credit facilities. If we do not distribute at least a certain percentage of our income annually, we could suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions at a particular level.

Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The FASB approved an (optional) two year extension to December 31, 2024, for transitioning away from LIBOR. The Company has adopted the ASU 2020-04, the effect of which was not material to the consolidated financial statements.

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, or ASU, 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2022-03, which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company has adopted of this new accounting standard, the effect was not material to the consolidated financial statements.

In November 2023, the Financial Accounting Standards Board (FASB) issues ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities' segment disclosure by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosure of a reportable segment's profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for our fiscal years beginning December 15, 2024, and should be applied on a retrospective basis to all periods presented, noting early adoption is permitted. The Company has adopted ASU 2023.07 effective September 30, 2025 and concluded that the application of this guidance did not have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 - 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our consolidated financial statements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. As of September 30, 2025, our debt portfolio consisted of 91% variable-rate investments and 9% fixed-rate investments. The variable-rate loans are usually based on a SOFR (or an alternative risk-free floating interest rate index) rate and typically have durations of three months after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In regards to variable-rate instruments with a floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In contrast, our cost of funds, to the extent it is not fixed, will fluctuate with changes in interest rates since it has no floor.

Assuming that the most recent Consolidated Statements of Assets and Liabilities was to remain constant, and no actions were taken to alter the interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

Change in Interest Rates	Change in Interest Income, <br>Net of Interest Expense<br> (in thousands)			Change in Interest Income, <br>Net of Interest <br>Expense Per Share
Down 3%	$	(9,368	)	$	(0.14	)
Down 2%		(6,246	)		(0.10	)
Down 1%		(3,123	)		(0.05	)
Up 1%		3,123			0.05
Up 2%		6,246			0.10
Up 3%		9,368			0.14

Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in the credit market, credit quality, size and composition of the assets on the Consolidated Statements of Assets and Liabilities and other business developments that could affect net increase in net assets resulting from operations, or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

Because we borrow money to make investments, our net investment income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds as well as our level of leverage. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income or net assets.

We may hedge against interest rate and foreign currency fluctuations by using standard hedging instruments such as futures, options and forward contracts or our Truist Credit Facility subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates and foreign currencies, they may also limit our ability to participate in benefits of lower interest rates or higher exchange rates with respect to our portfolio of investments with fixed interest rates or investments denominated in foreign currencies. During the periods covered by this Report, we did not engage in interest rate hedging activities or foreign currency derivatives hedging activities.

Item 8. Consolidated Financial Statements and Supplementary Data

	Page
Management’s Report on Internal Control over Financial Reporting	63
Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting	64
Report of Independent Registered Public Accounting Firm (PCAOB ID - 49)	65
Consolidated Statements of Assets and Liabilities as of September 30, 2025 and 2024	66
Consolidated Statements of Operations for the years ended September 30, 2025, 2024 and 2023	67
Consolidated Statements of Changes in Net Assets for the years ended September 30, 2025, 2024 and 2023	68
Consolidated Statements of Cash Flows for the years ended September 30, 2025, 2024 and 2023	69
Consolidated Schedules of Investments as of September 30, 2025 and 2024	70
Notes to the Consolidated Financial Statements	90

Management’s Report on Internal Control Over Financial Reporting

The management of PennantPark Investment Corporation (except where the context suggests otherwise, the terms “we,” “us,” “our” and “PennantPark Investment” refer to PennantPark Investment Corporation and its Subsidiaries) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f), and for performing an assessment of the effectiveness of internal control over financial reporting as of September 30, 2025. Our internal control system is a process designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

PennantPark Investment’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions recorded necessary to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles. Our policies and procedures also provide reasonable assurance that receipts and expenditures are being made only in accordance with authorizations of management and the directors of PennantPark Investment, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of PennantPark Investment’s internal control over financial reporting as of September 30, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 Internal Control—Integrated Framework. Based on such assessment management has determined that, as of September 30, 2025, we do not maintain effective internal control over financial reporting due to the material weakness described below.

A material weakness was identified in the operations of control related to the Company's quarterly review of equity investment valuations with respect to the allocation of value of the portfolio company to the Company’s holdings. Although this material weakness did not result in any material misstatement of our consolidated financial statements for the periods presented, there is a possibility they could lead to a material misstatement of account balances or disclosures. Accordingly, management has concluded that this control deficiency constitutes a material weakness.

Management believes that the financial statements included in this Annual Report on Form 10-K present fairly, in all material respects, the Company’s financial position, results of its operations, changes in net assets and cash flows for the periods presented. We believe that the audited consolidated financial statements included in this Annual Report on Form 10-K are accurate. We have begun the process of, and we are focused on, further enhancing effective internal control measures to improve our internal control over financial reporting and remediate this material weakness. Our internal control remediation efforts include the following:

Enhance existing review controls of equity investments related to the allocation of the portfolio company’s enterprise value to the Company’s holdings to ensure allocations are consistent with the relevant and respective source document; and
Enhancing policies and procedures to demonstrate commitment to improving our overall control environment.

We believe our planned actions to enhance our processes and controls will address the material weakness, but these actions are subject to ongoing management evaluation, and we will need a period of execution to demonstrate remediation. We are committed to the continuous improvement of our internal control over financial reporting and will continue to diligently review our internal control over financial reporting.

PennantPark Investment's independent registered public accounting firm has issued an audit report on the effectiveness of our internal control over financial

reporting as of September 30, 2025. This report appears on page 64.

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of

PennantPark Investment Corporation and Subsidiaries

Opinion on the Internal Control Over Financial Reporting

We have audited PennantPark Investment Corporation and Subsidiaries (the Company) internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of assets and liabilities, including the consolidated schedules of investments, as of September 30, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements) of the Company and our report dated November 24, 2025, expressed an unqualified opinion.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management’s assessment. A material weakness was identified in the operation of controls related to the Company’s quarterly review of equity investment valuations with respect to the allocation of value of the portfolio company to the Company’s holdings. This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2025 financial statements, and this report does not affect our report dated November 24, 2025 on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Controls Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ RSM US LLP

New York, New York

November 24, 2025

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of

PennantPark Investment Corporation and Subsidiaries

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities of PennantPark Investment Corporation and Subsidiaries (the Company), including the consolidated schedules of investments, as of September 30, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations, changes in net assets, and cash flows for each of the three years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Our report dated November 24, 2025, expressed an opinion that the Company had not maintained effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2025 and 2024, by correspondence with the custodian, underlying fund advisors, and by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below is a matters arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Level 3 Fair Value Measurements

The fair value of the Company’s investments valued using Level 3 fair value measurements was approximately $1,088.0 million as of September 30, 2025. The fair value of the Company’s financial instruments classified as liabilities valued using Level 3 fair value measurements was approximately $425.5 million as of September 30, 2025. As discussed in Notes 2 and 5 to the consolidated financial statements, the Company’s investment portfolio generally consists of illiquid securities, including debt and equity investments, which were acquired directly from the issuer. Such investments include first lien secured debt, second lien secured debt, subordinated debt and equity investments. Additionally, the Company has elected to apply the fair value option to certain financial instruments classified as liabilities. The inputs into the determination of fair value require significant management judgment or estimation.

We identified Level 3 fair value measurements as a critical audit matter due to the subjective nature of the judgments necessary for management to select valuation techniques and the use of significant unobservable inputs to estimate the fair value. Auditing the reasonableness of management’s selection of valuation technique and the related unobservable inputs required a high degree of auditor judgment and increased audit effort, including the use of a valuation specialist.

The primary procedures we performed to address this critical audit matter included the following, among others:

With the assistance of our valuation specialists, we evaluated the appropriateness of the selected valuation techniques, and any changes to selected valuation techniques from prior periods, used for Level 3 fair value measurements. For a sample of investments, we evaluated both the reasonableness of the significant unobservable inputs and the reasonableness of any significant changes in significant unobservable inputs from prior periods, when applicable, by comparing the unobservable inputs to external sources, including, but not limited to:
Historical operating results of the investee.
Available market data for comparable companies.
Subsequent events and transactions, where available.

We tested both the source information used to determine the unobservable input and the mathematical accuracy of the calculation used to compute the unobservable input for a sample of investments.

/s/

RSM US LLP

We have served as the Company's auditor since 2013.

New York, New York

November 24, 2025

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(In thousands, except share data)

			September 30, 2024
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—853,416 and 916,168, respectively)	857,415		$	910,323
Non-controlled, affiliated investments (amortized cost—36,561 and 56,734, respectively)	4,891			33,423
Controlled, affiliated investments (amortized cost—346,911 and 343,970, respectively)	424,967			384,304
Total investments (amortized cost—1,236,888 and 1,316,872, respectively)	1,287,273			1,328,050
Cash and cash equivalents (cost—51,739 and 49,833, respectively)	51,783			49,861
Interest receivable	5,261			5,261
Distribution receivable	4,694			5,417
Due from affiliates	168			228
Prepaid expenses and other assets	375			269
Total assets	1,349,554			1,389,086
Liabilities
Truist Credit Facility payable, at fair value (cost—426,456 and 461,456, respectively)	425,477			460,361
2026 Notes payable (par— 150,000, unamortized deferred financing cost of 527 and 1,429, respectively)	149,473			148,571
2026 Notes-2 payable (par— 165,000, unamortized deferred financing cost of 1,067 and 1,920, respectively)	163,933			163,080
Payable for investment purchased	130,007			100,096
Interest payable on debt	6,281			6,406
Distributions payable	—			5,224
Accounts payable and accrued expenses	4,342			4,053
Base management fee payable	4,005			4,297
Incentive fee payable	2,086			3,057
Due to affiliate	—			33
Total liabilities	885,604			895,178
Commitments and contingencies (See Note 12)
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	740,506			743,968
Accumulated deficit	(276,621	)		(250,125	)
Total net assets	463,950		$	493,908
Total liabilities and net assets	1,349,554		$	1,389,086
Net asset value per share	7.11		$	7.56

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

	Years Ended September 30,
	2025			2024			2023
Investment income:
From non-controlled, non-affiliated investments:
Interest	$	60,351		$	80,527		$	93,420
Payment-in-kind		6,222			5,140			1,236
Dividend income		1,931			2,869			13,945
Other income		1,780			3,508			2,316
From non-controlled, affiliated investments:
Interest		—			—			73
Payment-in-kind		—			347			625
From controlled, affiliated investments:
Interest		30,049			25,738			15,425
Payment-in-kind		1,546			4,084			2,596
Dividend income		20,471			21,605			15,730
Other income		27			—			—
Total investment income		122,377			143,818			145,366
Expenses:
Base management fee		16,179			16,654			16,549
Incentive fee		9,768			12,741			13,901
Interest and expenses on debt		41,315			45,188			39,408
Administrative services expenses		1,850			1,689			1,843
General and administrative expenses		4,300			4,874			3,837
Expenses before provision for taxes and financing costs		73,412			81,146			75,538
Provision for taxes on net investment income		2,590			2,602			4,295
Credit facility amendment and debt issuance costs		324			—			—
Net expenses		76,326			83,748			79,833
Net investment income		46,051			60,070			65,533
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments		(30,514	)		1,166			(18,418	)
Non-controlled and controlled, affiliated investments		(21,946	)		(34,999	)		(133,098	)
Debt extinguishment		—			—			(289	)
Provision for taxes on realized gain on investments		26			186			(4,952	)
Net realized gain (loss) on investments and debt		(52,434	)		(33,647	)		(156,757	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		9,862			(20,895	)		(35,440	)
Non-controlled and controlled, affiliated investments		29,363			48,388			95,034
Provision for taxes on unrealized appreciation (depreciation) on investments		—			(680	)		1,576
Debt appreciation (depreciation)		(116	)		(4,385	)		(3,753	)
Net change in unrealized appreciation (depreciation) on investments and debt		39,109			22,428			57,417
Net realized and unrealized gain (loss) from investments and debt		(13,325	)		(11,219	)		(99,340	)
Net increase (decrease) in net assets resulting from operations	$	32,726		$	48,851		$	(33,807	)
Net increase (decrease) in net assets resulting from operations per common share	$	0.50		$	0.75		$	(0.52	)
Net investment income per common share	$	0.71		$	0.92		$	1.00

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(In thousands, except share and per share data)

	Years Ended September 30,
	2025			2024			2023
Net increase (decrease) in net assets resulting from operations:
Net investment income	$	46,051		$	60,070		$	65,533
Net realized gain (loss) on investments and debt		(52,460	)		(33,833	)		(151,805	)
Net change in unrealized appreciation (depreciation) on investments		39,225			27,493			59,594
Net change in provision for taxes on realized gain (loss) on investments		26			186			(4,952	)
Net change in provision for taxes on change in unrealized appreciation (depreciation) on investments		—			(680	)		1,576
Net change in unrealized appreciation (depreciation) on debt		(116	)		(4,385	)		(3,753	)
Net increase (decrease) in net assets resulting from operations		32,726			48,851			(33,807	)
Distributions to stockholders:
Distribution of net investment income		(62,684	)		(57,432	)		(49,571	)
Total distributions to stockholders		(62,684	)		(57,432	)		(49,571	)
Capital transactions:
Public offering		—			552			—
Offering costs		—			(250	)		—
Net increase in net assets resulting from capital transactions		—			302			—
Net increase (decrease) in net assets		(29,958	)		(8,279	)		(83,378	)
Net assets:
Beginning of year		493,908			502,187			585,565
End of year	$	463,950		$	493,908		$	502,187
Capital share activity:
Shares of common stock issued from public offering		—			71,594			—
Shares of common stock repurchased		—			—			—

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STEATEMENTS OF CASH FLOWS

(In thousands, except share and per share data)

	Years Ended September 30,
	2025			2024			2023
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	32,726		$	48,851		$	(33,807	)
Adjustments to reconcile net increase (decrease) in net assets resulting from <br> operations to net cash provided by (used in) operating activities:
Net change in net unrealized (appreciation) depreciation on investments		(39,225	)		(27,493	)		(59,594	)
Net change in unrealized appreciation (depreciation) on debt		116			4,385			3,753
Net realized (gain) loss on investments		52,460			33,833			151,516
Debt extinguishment realized loss		—			—			289
Net accretion of discount and amortization of premium		(3,400	)		(3,361	)		(6,792	)
Purchases of investments		(1,219,273	)		(1,043,619	)		(375,176	)
Payment-in-kind income		(7,768	)		(9,571	)		(4,458	)
Proceeds from dispositions of investments		1,257,928			824,555			418,627
Amortization of deferred financing costs		1,755			1,755			1,780
(Increase) or Decrease in:
Interest receivable		—			1,559			(3,227	)
Receivables from investments sold		—			—			29,494
Distribution receivable		723			(338	)		(2,659	)
Due from affiliate		60			(228	)		—
Prepaid expenses and other assets		(105	)		3,592			(306	)
Increase or (Decrease) in:
Due to affiliates		(33	)		(4,066	)		1,990
Payable for investments purchased		29,911			147			99,949
Interest payable on debt		(125	)		175			(33	)
Base management fee payable, net		(292	)		382			(934	)
Deferred tax liability		—			—			(896	)
Incentive fee payable		(971	)		(253	)		3,310
Accounts payable and accrued expenses		289			(2,701	)		115
Net cash provided by (used in) operating activities		104,776			(172,396	)		222,941
Cash flows from financing activities:
Proceeds from public offering		—			552		—
Offering costs		—			(250	)	—
Distributions paid to stockholders		(67,908	)		(65,904	)		(45,658	)
Repayments of SBA debentures		—			—			(20,000	)
Borrowings under Truist Credit Facility		207,000			524,036			152,500
Repayments under Truist Credit Facility		(242,000	)		(275,000	)		(326,000	)
Net cash provided by (used in) financing activities		(102,908	)		183,434			(239,158	)
Net increase (decrease) in cash and cash equivalents		1,868			11,038			(16,217	)
Effect of exchange rate changes on cash		54			48			217
Cash and cash equivalents, beginning of year		49,861			38,775			54,775
Cash and cash equivalents, end of year	$	51,783		$	49,861		$	38,775
Supplemental disclosures:
Interest paid	$	39,685		$	43,258		$	37,661
Taxes paid	$	2,850		$	6,308		$	5,707
Non-cash exchanges and conversions	$	24,684		$	36,253		$	18,467
Non-cash purchases and disposition of investments	$	26,250		$	—		$	—

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Investments in Non-Controlled, Non-Affiliated Portfolio Companies - 184.8% (1), (2)
First Lien Secured Debt - 111.6% of Net Assets
ACP Avenu Buyer, LLC	10/02/2023	10/02/2029	Business Services	9.29	%	3M SOFR+500		15,920	$	15,827	$	15,760
ACP Avenu Buyer, LLC - Unfunded Term Loan (7)	10/02/2023	04/21/2027	Business Services	—			—	3,479		-		(17	)
ACP Avenu Buyer, LLC - Unfunded Revolver (7)	10/02/2023	10/02/2029	Business Services	—			—	2,436		-		(24	)
ACP Falcon Buyer, Inc. - Unfunded Revolver (7)	07/26/2023	08/01/2029	Business Services	—			—	2,533		-		-
Ad.net Acquisition, LLC - Funded Revolver	05/04/2021	05/07/2026	Media	10.26	%	3M SOFR+626		292		292		292
Ad.net Acquisition, LLC - Unfunded Revolver (7)	05/04/2021	05/07/2026	Media	—			—	152		-		-
Adweek Purchaser, LLC	05/31/2024	05/30/2027	Printing and Publishing	11.00	%	3M SOFR+700		2,100		2,074		2,100
Adweek Purchaser, LLC - Unfunded Term Loan (7)	05/31/2024	11/30/2025	Printing and Publishing	—			—	300		-		5
Aechelon Technology, Inc.	08/16/2024	08/16/2029	Aerospace and Defense	9.91	%	3M SOFR+575		11,640		11,537		11,640
Aechelon Technology, Inc. - Funded Revolver	08/16/2024	08/16/2029	Aerospace and Defense	10.66	%	3M SOFR+650		961		961		961
Aechelon Technology, Inc. - Unfunded Revolver (7)	08/16/2024	08/16/2029	Aerospace and Defense	—			—	1,763		-		-
AFC Dell Holding Corp.	12/12/2023	04/09/2027	Distribution	9.70	%	3M SOFR+550		67		67		67
AFC Dell Holding Corp. - Unfunded Term Loan (7)	12/12/2023	04/09/2027	Distribution	—			—	4,428		-		(22	)
Atlas Purchaser, Inc. - Third Out (10)	03/28/2024	05/06/2028	Telecommunications	—			—	8,840		7,707		265
Atlas Purchaser, Inc. - Fourth Out (10)	03/28/2024	05/06/2028	Telecommunications	—			—	4,760		794		95
Anteriad, LLC (f/k/a MeritDirect, LLC) - Funded Revolver	05/21/2019	06/30/2026	Media	9.90	%	3M SOFR+590		230		230		230
Anteriad, LLC (f/k/a MeritDirect, LLC) - Unfunded Revolver (7)	05/21/2019	06/30/2026	Media	—			—	1,382		-		-
Aphix Buyer, Inc	07/17/2025	07/17/2031	Business Services	8.91	%	3M SOFR+475		6,144		6,106		6,114
Aphix Buyer, Inc - Unfunded Term Loan (7)	07/17/2025	07/16/2027	Business Services	—			—	9,172		-		11
Aphix Buyer, Inc - Unfunded Revolver (7)	07/17/2025	07/17/2031	Business Services	—			—	2,389		-		(12	)
APT OPCO, LLC	09/29/2025	09/30/2031	Healthcare, Education and Childcare	9.00	%	3M SOFR+500		7,875		7,826		7,826
APT OPCO, LLC - Unfunded Term Loan (7)	09/29/2025	09/30/2027	Healthcare, Education and Childcare	—			—	1,228		-		-
APT OPCO, LLC - Unfunded Revolver (7)	09/29/2025	09/30/2031	Healthcare, Education and Childcare	—			—	1,228		-		-
Arcfield Acquisition Corp. - Unfunded Revolver (7)	10/28/2024	10/28/2031	Aerospace and Defense	—			—	1,688		-		(8	)
Archer Lewis, LLC	08/28/2024	08/28/2029	Healthcare, Education and Childcare	9.77	%	3M SOFR+575		1,488		1,474		1,488
Archer Lewis, LLC - Unfunded Term Loan (7)	08/28/2024	08/28/2026	Healthcare, Education and Childcare	—			—	5,329		-		53
Archer Lewis, LLC - Unfunded Revolver (7)	08/28/2024	08/28/2029	Healthcare, Education and Childcare	—			—	1,304		-		-
Argano, LLC.	09/13/2024	09/13/2029	Business Services	9.90	%	3M SOFR+575		10,448		10,349		10,291
Argano, LLC - Unfunded Term Loan (7)	09/13/2024	10/02/2026	Business Services	—			—	2,483		-		(12	)
Argano, LLC - Unfunded Revolver (7)	09/13/2024	09/13/2029	Business Services	—			—	794		-		(12	)
Azureon, LLC	06/26/2024	06/26/2029	Diversified Conglomerate Service	9.75	%	3M SOFR+575		9,811		9,708		9,526
Azureon, LLC - Funded Revolver	06/26/2024	06/26/2029	Diversified Conglomerate Service	9.75	%	3M SOFR+575		464		464		450
Azureon, LLC - Unfunded Revolver (7)	06/26/2024	06/26/2029	Diversified Conglomerate Service	—			—	696		-		(20	)
Beacon Behavioral Support Service, LLC - Unfunded Term Loan (7)	06/21/2024	12/22/2025	Healthcare, Education and Childcare	—			—	3,838		-		38
Beacon Behavioral Support Service, LLC - Unfunded Term Loan - 3rd Amendment (7)	06/21/2024	06/21/2027	Healthcare, Education and Childcare	—			—	12,627		-		126
Beacon Behavioral Support Service, LLC - Unfunded Revolver (7)	06/21/2024	06/21/2029	Healthcare, Education and Childcare	—			—	1,042		-		-
Berwick Industrial Park	04/26/2022	05/02/2026	Buildings and Real Estate	13.00	%		—	4,000		4,016		3,988
Best Practice Associates, LLC - Unfunded Revolver (7)	11/07/2024	11/08/2029	Aerospace and Defense	—			—	1,929		-		(14	)
Beta Plus Technologies, Inc.	06/28/2022	07/02/2029	Business Services	9.75	%	3M SOFR+575		10,644		10,509		10,537
Big Top Holdings, LLC - Unfunded Revolver (7)	02/29/2024	02/28/2030	Manufacturing/Basic Industry	—			—	1,155		-		-
BioDerm, Inc. - Funded Revolver	01/30/2023	01/31/2028	Healthcare, Education and Childcare	10.77	%	3M SOFR+650		1,071		1,071		1,058
Blackhawk Industrial Distribution, Inc.	06/27/2022	09/17/2026	Distribution	9.40	%	3M SOFR+540		1,267		1,263		1,245
Blackhawk Industrial Distribution, Inc. - Funded Revolver	06/27/2022	09/17/2026	Distribution	9.40	%	3M SOFR+540		2,186		2,186		2,147
Blackhawk Industrial Distribution, Inc. - Unfunded Revolver (7)	06/27/2022	09/17/2026	Distribution	—			—	2,671		-		(47	)
BLC Holding Company, Inc.	11/20/2024	11/20/2030	Business Services	8.50	%	3M SOFR+450		2,248		2,232		2,248
BLC Holding Company, Inc. - Unfunded Term Loan (7)	11/20/2024	11/20/2026	Business Services	—			—	7,514		-		56
BLC Holding Company, Inc. - Funded Revolver	11/20/2024	11/20/2030	Business Services	8.50	%	3M SOFR+450		331		331		331
BLC Holding Company, Inc. - Unfunded Revolver (7)	11/20/2024	11/20/2030	Business Services	—			—	2,675		-		-
Blue Cloud Pediatric Surgery Centers, LLC	08/12/2025	01/21/2031	Healthcare Providers & Services	9.48	%	3M SOFR+525		2,494		2,469		2,469
Blue Cloud Pediatric Surgery Centers, LLC - Unfunded Term Loan (7)	08/12/2025	07/30/2027	Healthcare Providers & Services	—			—	2,759		-		-
Boss Industries, LLC - Unfunded Revolver (7)	12/27/2024	12/27/2030	Conglomerate Manufacturing	—			—	1,306		-		-

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
By Light Professional IT Services, LLC	07/15/2025	07/15/2031	Business Services	9.66	%	3M SOFR+550		2,500	$	2,481	$	2,481
By Light Professional IT Services, LLC - Unfunded Revolver (7)	07/15/2025	07/15/2031	Business Services	—			—	988		-		(7	)
Capital Construction, LLC	06/30/2025	10/22/2026	Consumer Services	10.20	%	3M SOFR+590		5,608		5,573		5,552
Capital Construction, LLC - Unfunded Term Loan A (7)	06/30/2025	12/30/2025	Consumer Services	—			—	6,613		-		(17	)
Carisk Buyer, Inc. - Unfunded Term Loan (7)	11/27/2023	12/03/2029	Healthcare, Education and Childcare	—			—	4,813		-		48
Carisk Buyer, Inc. - Unfunded Term Loan 2 (7)	11/27/2023	12/03/2029	Healthcare, Education and Childcare	—			—	1,528		-		11
Carisk Buyer, Inc. - Unfunded Revolver (7)	11/27/2023	12/03/2029	Healthcare, Education and Childcare	—			—	1,750		-		-
Carnegie Dartlet, LLC	02/07/2024	02/07/2030	Education	9.66	%	3M SOFR+550		2,326		2,304		2,302
Carnegie Dartlet, LLC - Unfunded Term Loan (7)	02/07/2024	02/09/2026	Education	—			—	7,680		-		-
Carnegie Dartlet, LLC - Unfunded Revolver (7)	02/07/2024	02/07/2030	Education	—			—	3,339		-		(33	)
Cartessa Aesthetics, LLC	06/01/2022	06/14/2028	Distribution	10.30	%	3M SOFR+600		23,494		23,242		23,494
Cartessa Aesthetics, LLC - Funded Revolver	06/01/2022	06/14/2028	Distribution	10.30	%	3M SOFR+600		1,265		1,265		1,265
Cartessa Aesthetics, LLC - Unfunded Revolver (7)	06/01/2022	06/14/2028	Distribution	—			—	2,297		-		-
Case Works, LLC	10/01/2024	10/01/2029	Business Services	9.09	%	3M SOFR+525		852		845		814
Case Works, LLC - Funded Revolver	10/01/2024	10/01/2029	Business Services	9.25	%	3M SOFR+525		1,793		1,793		1,712
Case Works, LLC - Unfunded Revolver (7)	10/01/2024	10/01/2029	Business Services	—			—	94		-		(4	)
CF512, Inc. - Funded Revolver	08/17/2021	08/20/2026	Media	10.18	%	3M SOFR+602		82		82		81
CF512, Inc. - Unfunded Revolver (7)	08/17/2021	08/20/2026	Media	—			—	827		-		(8	)
CJX Borrower, LLC	07/08/2021	07/13/2027	Media	10.08	%	3M SOFR+576		322		309		322
CJX Borrower, LLC - Unfunded Term Loan (7)	07/08/2021	07/13/2027	Media	—			—	149		-		27
CJX Borrower, LLC - Funded Revolver	07/08/2021	07/13/2027	Media	10.07	%	3M SOFR+576		893		893		893
CJX Borrower, LLC - Unfunded Revolver (7)	07/08/2021	07/13/2027	Media	—			—	982		-		-
Compex Legal Services, Inc. - Funded Revolver	07/24/2023	02/07/2026	Business Services	9.78	%	3M SOFR+555		459		459		459
Compex Legal Services, Inc. - Unfunded Revolver (7)	07/24/2023	02/07/2026	Business Services	—			—	197		-		-
Cornerstone Advisors of Arizona, LLC	05/13/2025	05/13/2032	Consulting Services	8.75	%	3M SOFR+475		6,000		5,970		5,970
Cornerstone Advisors of Arizona, LLC - Unfunded Revolver (7)	05/13/2025	05/13/2032	Consulting Services	—			—	797		-		(4	)
Commercial Fire Protection Holdings, LLC - Unfunded Term Loan (7)	09/23/2024	09/23/2026	Business Services	—			—	6,630		-		50
Commercial Fire Protection Holdings, LLC - Unfunded Revolver (7)	09/23/2024	09/23/2030	Business Services	—			—	2,486		-		-
Crane 1 Services, Inc. - Unfunded Revolver (7)	06/10/2024	08/16/2027	Personal, Food and Miscellaneous Services	—			—	435		-		(3	)
C5MI Acquisition, LLC	07/31/2024	07/31/2029	Business Services	10.00	%	3M SOFR+600		2,463		2,432		2,463
C5MI Acquisition, LLC - Unfunded Revolver (7)	07/31/2024	07/31/2029	Business Services	—			—	4,133		-		-
DRS Holdings III, Inc.	11/01/2019	11/03/2025	Consumer Products	9.57	%	3M SOFR+525		2		2		2
DRS Holdings III, Inc. - Unfunded Revolver (7)	11/01/2019	11/03/2025	Consumer Products	—			—	608		-		-
Duggal Acquisition, LLC - Unfunded Term Loan (7)	09/30/2024	09/30/2026	Marketing Services	—			—	2,042		-		20
Duggal Acquisition, LLC - Unfunded Revolver (7)	09/30/2024	09/30/2030	Marketing Services	—			—	2,561		-		-
Dynata, LLC - Last-Out Term Loan	07/15/2024	10/16/2028	Business Services	9.96	%	3M SOFR+576		83		83		68
EDS Buyer, LLC - Unfunded Revolver (7)	12/19/2022	01/10/2029	Aerospace and Defense	—			—	1,915		-		5
Emergency Care Partners, LLC	10/18/2024	10/18/2027	Healthcare, Education and Childcare	9.69	%	3M SOFR+550		656		656		656
Emergency Care Partners, LLC - Unfunded Term Loan (7)	10/18/2024	10/19/2026	Healthcare, Education and Childcare	—			—	1,530		-		-
Emergency Care Partners, LLC - Unfunded Revolver (7)	10/18/2024	10/18/2027	Healthcare, Education and Childcare	—			—	641		-		-
ENC Parent Corporation	07/11/2024	08/20/2029	Business Services	8.51	%	3M SOFR+451		3,391		3,057		2,882
ETE Intermediate II, LLC	05/24/2023	05/29/2029	Personal, Food and Miscellaneous Services	9.16	%	3M SOFR+500		552		549		552
ETE Intermediate II, LLC - Funded Revolver	05/24/2023	05/25/2029	Personal, Food and Miscellaneous Services	9.17	%	3M SOFR+500		166		166		166
ETE Intermediate II, LLC - Unfunded Revolver (7)	05/24/2023	05/25/2029	Personal, Food and Miscellaneous Services	—			—	2,264		-		-
Eval Home Health Solutions Intermediate, LLC - Unfunded Revolver (7)	05/10/2024	05/10/2030	Healthcare, Education and Childcare	—			—	822		-		-
Exigo Intermediate II, LLC	03/10/2022	03/15/2027	Business Services	10.51	%	3M SOFR+635		23,878		23,740		23,878
Exigo Intermediate II, LLC - Unfunded Revolver (7)	03/10/2022	03/15/2027	Business Services	—			—	1,856		-		-
Express Wash Intermediate, LLC	07/14/2022	04/10/2031	Auto Sector	10.58	%	3M SOFR+625		9,975		9,926		9,736
Express Wash Intermediate, LLC - Unfunded Revolver (7)	07/14/2022	04/10/2031	Auto Sector	—			—	609		-		(15	)
First Medical MSO, LLC	06/13/2025	06/13/2031	Healthcare, Education and Childcare	9.75	%	3M SOFR+575		4,489		4,445		4,444
First Medical MSO, LLC - Unfunded Term Loan (7)	06/13/2025	06/13/2027	Healthcare, Education and Childcare	—			—	3,000		-		-
First Medical MSO, LLC - Unfunded Revolver (7)	06/13/2025	06/13/2031	Healthcare, Education and Childcare	—			—	600		-		(6	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Five Star Buyer, Inc.	02/21/2023	02/23/2028	Leisure, Amusement, Motion Pictures, Entertainment		11.46	%	3M SOFR+715		197	197	193
				(PIK 1.00%)
Five Star Buyer, Inc. - Unfunded Revolver (7)	02/21/2023	02/23/2028	Leisure, Amusement, Motion Pictures, Entertainment		—			—	370	-	(7	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Gauge ETE Blocker, LLC	05/24/2023	05/21/2029	Personal, Food and Miscellaneous Services	PIK 12.56%				—	285	$	285	$	285
GGG MIDCO, LLC	09/27/2024	09/27/2030	Home and Office Furnishings, Housewares and Durable Consumer Products		9.22	%	3M SOFR+500		8,112		8,035		8,112
GGG MIDCO, LLC - Unfunded Term Loan (7)	09/27/2024	09/27/2026	Home and Office Furnishings, Housewares and Durable Consumer Products		—			—	2,154		-		22
GGG MIDCO, LLC - Unfunded Revolver (7)	09/27/2024	09/27/2030	Home and Office Furnishings, Housewares and Durable Consumer Products		—			—	581		-		-
Graffiti Buyer, Inc.	10/25/2022	08/10/2027	Distribution		9.66	%	3M SOFR+560		245		244		240
Graffiti Buyer, Inc. - Unfunded Term Loan (7)	10/25/2022	08/10/2027	Distribution		—			—	831		-		(10	)
Graffiti Buyer, Inc. - Funded Revolver	10/25/2022	08/10/2027	Distribution		9.85	%	3M SOFR+560		32		32		31
Graffiti Buyer, Inc. - Unfunded Revolver (7)	10/25/2022	08/10/2027	Distribution		—			—	737		-		(15	)
Halo Buyer, Inc.	07/18/2018	08/07/2029	Consumer Products		10.16	%	3M SOFR+600		16,915		16,760		16,915
Halo Buyer, Inc. - Funded Revolver	07/18/2018	08/07/2029	Consumer Products		10.16	%	3M SOFR+600		517		517		517
Halo Buyer, Inc. - Unfunded Revolver (7)	07/18/2018	08/07/2029	Consumer Products		—			—	2,181		-		-
Hancock Roofing and Construction, LLC	05/05/2022	12/31/2026	Insurance		9.76	%	3M SOFR+560		750		750		743
Harris & Co, LLC	08/09/2024	08/09/2030	Financial Services		9.16	%	3M SOFR+500		9,097		9,019		9,018
Harris & Co, LLC - Unfunded Term Loan B (7)	08/09/2024	02/09/2026	Financial Services		—			—	5,574		-		-
Harris & Co, LLC - Unfunded Term Loan C (7)	08/09/2024	08/18/2027	Financial Services		—			—	10,226		-		-
Harris & Co, LLC - Funded Revolver	08/09/2024	08/09/2030	Financial Services		9.16	%	3M SOFR+500		526		526		521
Harris & Co, LLC - Unfunded Revolver (7)	08/09/2024	08/09/2030	Financial Services		—			—	2,479		-		(22	)
HEC Purchaser Corp.	06/17/2024	06/17/2029	Healthcare, Education and Childcare		9.22	%	3M SOFR+500		4,801		4,778		4,801
Hills Distribution, Inc.	11/02/2023	11/08/2029	Distribution		10.32	%	3M SOFR+600		7,786		7,721		7,786
Hills Distribution, Inc. - Unfunded Term Loan (7)	11/02/2023	11/07/2025	Distribution		—			—	1,280		-		13
HV Watterson Holdings, LLC (10)	06/13/2022	12/17/2026	Business Services		8.00	%		—	287		286		158
HV Watterson Holdings, LLC - Funded Revolver (10)	06/13/2022	12/17/2026	Business Services		8.00	%		—	1,250		1,250		686
HV Watterson Holdings, LLC - Unfunded Revolver (7), (10)	06/13/2022	12/17/2026	Business Services		—			—	—		-		-
HW Holdco, LLC - Unfunded Revolver (7)	10/11/2019	05/11/2026	Media		—			—	3,387		-		-
IG Investments Holdings, LLC	07/11/2022	09/22/2028	Business Services		9.31	%	3M SOFR+500		104		103		103
IG Investments Holdings, LLC - Unfunded Revolver (7)	07/11/2022	09/22/2028	Business Services		—			—	722		-		(4	)
Imagine Acquisitionco, Inc. - Unfunded Revolver (7)	11/04/2021	11/16/2027	Business Services		—			—	1,685		-		-
Impact Advisors, LLC	03/21/2025	03/19/2032	Business Services		8.50	%	3M SOFR+450		7,960		7,921		7,960
Impact Advisors, LLC - Unfunded Term Loan (7)	03/21/2025	03/21/2027	Business Services		—			—	4,686		-		23
Impact Advisors, LLC - Unfunded Revolver (7)	03/21/2025	03/19/2032	Business Services		—			—	937		-		-
Infinity Home Services Holdco, Inc.	12/21/2022	12/28/2028	Personal, Food and Miscellaneous Services		10.00	%	3M SOFR+600		8,974		8,885		8,974
Infinity Home Services Holdco, Inc. (CAD)	12/21/2022	12/28/2028	Personal, Food and Miscellaneous Services		10.00	%	3M SOFR+600		CAD 2,612		1,887		1,877
Infinity Home Services Holdco, Inc. - 3rd Amendment Unfunded Term Loan (7)	12/21/2022	10/30/2026	Personal, Food and Miscellaneous Services		—			—	9,091		-		-
Infinity Home Services Holdco, Inc. - Funded Revolver	12/21/2022	12/28/2028	Personal, Food and Miscellaneous Services		12.25	%	3M SOFR+500		161		161		161
Infinity Home Services Holdco, Inc. - Unfunded Revolver (7)	12/21/2022	12/28/2028	Personal, Food and Miscellaneous Services		—			—	1,130		-		-
Inovex Information Systems Incorporated - Unfunded Term Loan (7)	12/17/2024	12/17/2026	Business Services		—			—	1,900		-		-
Inovex Information Systems Incorporated - Unfunded Revolver (7)	12/17/2024	12/17/2030	Business Services		—			—	2,375		-		-
Inventus Power, Inc. - Funded Revolver	03/24/2021	01/15/2026	Electronics		11.76	%	3M SOFR+761		403		403		403
Inventus Power, Inc. - Unfunded Revolver (7)	03/24/2021	01/15/2026	Electronics		—			—	1,325		-		-
Kinetic Purchaser, LLC	07/08/2022	11/10/2027	Consumer Products		10.19	%	3M SOFR+615		3,099		3,044		2,634
Kinetic Purchaser, LLC - Funded Revolver	07/08/2022	11/10/2026	Consumer Products		10.15	%	3M SOFR+615		3,070		3,070		2,609
Kinetic Purchaser, LLC - Unfunded Revolver (7)	07/08/2022	11/10/2026	Consumer Products		—			—	1,784		-		(268	)
Lash OpCo, LLC	08/16/2021	02/18/2027	Consumer Products		12.14	%	3M SOFR+785		3,055		3,038		2,979
				(PIK 5.10%)
Lash OpCo, LLC - Funded Revolver	08/16/2021	08/16/2026	Consumer Products		12.14	%	3M SOFR+785		918		918		895
				(PIK 5.10%)
Lash OpCo, LLC - Unfunded Revolver (7)	08/16/2021	08/16/2026	Consumer Products		—			—	2,223		-		(56	)
LAV Gear Holdings, Inc. - Incremental Term Loan	02/26/2020	07/31/2029	Leisure, Amusement, Motion Pictures, Entertainment	PIK 10.10%			3M SOFR+594		1,218		1,226		1,263
LAV Gear Holdings, Inc. - FOTL	02/26/2020	07/31/2029	Leisure, Amusement, Motion Pictures, Entertainment	PIK 10.10%			3M SOFR+595		134		122		165
LAV Gear Holdings, Inc. - Unfunded Revolver (7)	02/26/2020	07/31/2029	Leisure, Amusement, Motion Pictures, Entertainment		—			—	149		-		-

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Ledge Lounger, Inc.	11/04/2021	11/09/2026	Consumer Products		11.65	%	3M SOFR+765		8,998	$	8,949	$	7,018
				(PIK 1.00%)
Ledge Lounger, Inc. - Funded Revolver	11/04/2021	11/09/2026	Consumer Products		11.65	%	3M SOFR+765		1,621		1,621		1,264
				(PIK 1.00%)
Lightspeed Buyer, Inc.	02/03/2020	02/03/2027	Healthcare, Education and Childcare		8.91	%	3M SOFR+475		2,011		2,011		2,011
Lightspeed Buyer, Inc. - Unfunded Revolver (7)	02/03/2020	02/03/2027	Healthcare, Education and Childcare		—			—	1,166		-		-
LJ Avalon Holdings, LLC	01/18/2023	02/01/2030	Environmental Services		8.78	%	3M SOFR+450		5,194		5,179		5,194
LJ Avalon Holdings, LLC - Unfunded Term Loan (7)	01/18/2023	02/08/2027	Environmental Services		—			—	2,624		-		13
LJ Avalon Holdings, LLC - Unfunded Revolver (7)	01/18/2023	02/01/2029	Environmental Services		—			—	1,498		-		-
Loving Tan Intermediate II, Inc.	05/25/2023	05/31/2028	Consumer Products		9.00	%	3M SOFR+500		7,054		6,982		7,054
Loving Tan Intermediate II, Inc. - Funded Revolver	05/25/2023	05/31/2028	Consumer Products		9.00	%	3M SOFR+500		664		664		664
Loving Tan Intermediate II, Inc. - Unfunded Revolver (7)	05/25/2023	05/31/2028	Consumer Products		—			—	332		-		-
Loving Tan Intermediate II, Inc. - Unfunded Term Loan (7)	05/25/2023	07/12/2026	Consumer Products		—			—	2,018		-		20
Marketplace Events Acquisition, LLC	12/19/2024	12/19/2030	Media		9.25	%	3M SOFR+525		1,237		1,225		1,237
Marketplace Events Acquisition, LLC - Unfunded Term Loan (7)	12/19/2024	06/19/2026	Media		—			—	3,113		-		31
Marketplace Events Acquisition, LLC - Funded Revolver	12/19/2024	12/19/2030	Media		9.25	%	3M SOFR+525		218		218		218
Marketplace Events Acquisition, LLC - Unfunded Revolver (7)	12/19/2024	12/19/2030	Media		—			—	1,959		-		-
MBS Holdings, Inc.	04/14/2021	04/16/2027	Telecommunications		9.30	%	3M SOFR+510		267		266		267
MBS Holdings, Inc. - Unfunded Revolver (7)	04/14/2021	04/16/2027	Telecommunications		—			—	694		-		-
MDI Buyer, Inc. - Funded Revolver	07/19/2022	07/25/2028	Chemicals, Plastics and Rubber		11.50	%	3M SOFR+375		1,808		1,808		1,808
MDI Buyer, Inc. - Unfunded Revolver (7)	07/19/2022	07/25/2028	Chemicals, Plastics and Rubber		—			—	419		-		-
Meadowlark Acquirer, LLC	12/09/2021	12/10/2027	Business Services		9.65	%	3M SOFR+565		1,903		1,892		1,903
Meadowlark Acquirer, LLC - Funded Revolver	12/09/2021	12/10/2027	Business Services		9.65	%	3M SOFR+565		337		337		337
Meadowlark Acquirer, LLC- Unfunded Revolver (7)	12/09/2021	12/10/2027	Business Services		—			—	1,348		-		-
Medina Health, LLC - Unfunded Revolver (7)	10/16/2023	10/20/2028	Healthcare, Education and Childcare		—			—	2,774		-		14
Megawatt Acquisitionco, Inc. - Funded Revolver	03/01/2024	03/01/2030	Electronics		9.67	%	3M SOFR+550		232		232		221
Megawatt Acquisitionco, Inc. - Unfunded Revolver (7)	03/01/2024	03/01/2030	Electronics		—			—	1,625		-		(78	)
Mineola 212, LLC	06/24/2024	12/24/2025	Buildings and Real Estate		14.00	%		—	3,500		3,515		3,507
MOREGroup Holdings, Inc. - Unfunded Term Loan (7)	01/09/2024	01/16/2026	Business Services		—			—	6,124		-		61
MOREGroup Holdings, Inc. - Unfunded Revolver (7)	01/09/2024	01/16/2030	Business Services		—			—	3,675		-		-
Municipal Emergency Services, Inc.	09/23/2021	10/01/2027	Distribution		9.17	%	3M SOFR+515		1,031		1,024		1,031
Municipal Emergency Services, Inc. - Unfunded Term Loan (7)	09/23/2021	01/15/2026	Distribution		—			—	568		-		3
Municipal Emergency Services, Inc. - Unfunded Revolver (7)	09/23/2021	10/01/2027	Distribution		—			—	1,880		-		-
NBH Group, LLC - Unfunded Revolver (7)	08/16/2021	08/19/2026	Healthcare, Education and Childcare		—			—	1,163		-		-
NORA Acquisition, LLC - Funded Revolver	08/22/2023	08/31/2029	Healthcare, Education and Childcare		10.35	%	3M SOFR+635		1,218		1,218		1,209
NORA Acquisition, LLC - Unfunded Revolver (7)	08/22/2023	08/31/2029	Healthcare, Education and Childcare		—			—	1,489		-		(11	)
North American Rail Solutions, LLC	08/29/2025	08/29/2031	Manufacturing/Basic Industry		8.75	%	3M SOFR+475		29,416		29,269		29,269
North American Rail Solutions, LLC - Unfunded Term Loan (7)	08/29/2025	08/29/2027	Manufacturing/Basic Industry		—			—	2,263		-		-
North American Rail Solutions, LLC - Funded Revolver	08/29/2025	08/29/2031	Manufacturing/Basic Industry		8.75	%	3M SOFR+475		784		784		784
North American Rail Solutions, LLC - Unfunded Revolver (7)	08/29/2025	08/29/2031	Manufacturing/Basic Industry		—			—	2,383		-		-
NP Riverhead Industrial, LLC	05/24/2024	12/10/2025	Buildings and Real Estate		15.50	%		—	5,000		5,015		5,000
Omnia Exterior Solutions, LLC	12/29/2023	12/31/2029	Diversified Conglomerate Service		9.25	%	3M SOFR+525		1,787		1,771		1,751
Omnia Exterior Solutions, LLC - Unfunded Term Loan (7)	12/29/2023	09/30/2026	Diversified Conglomerate Service		—			—	3,807		-		(43	)
Omnia Exterior Solutions, LLC - Funded Revolver	12/29/2023	12/31/2029	Diversified Conglomerate Service		9.25	%	3M SOFR+525		1,260		1,260		1,235
Omnia Exterior Solutions, LLC - Unfunded Revolver (7)	12/29/2023	12/31/2029	Diversified Conglomerate Service		—			—	840		-		(17	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
ORL Acquisition, Inc.	09/01/2021	09/03/2027	Business Services		13.70	%	3M SOFR+940		4,426	$	4,395	$	3,917
				(PIK 7.50%)
ORL Acquisition, Inc. - Unfunded Revolver (7)	09/01/2021	09/03/2027	Business Services		—			—	149		-		(17	)
OSP Embedded Purchaser, LLC	12/11/2023	12/17/2029	Aerospace and Defense		9.81	%	3M SOFR+575		6,386		6,298		6,297
OSP Embedded Purchaser, LLC - Unfunded Revolver (7)	12/11/2023	12/17/2029	Aerospace and Defense		—			—	1,477		-		(21	)
Pacific Purchaser, LLC - Unfunded Revolver (7)	10/02/2023	10/02/2028	Business Services		—			—	1,373		-		(5	)
PAR Excellence Holdings, Inc.	09/03/2024	09/03/2030	Healthcare, Education and Childcare		9.32	%	3M SOFR+500		11,940		11,827		11,731
PAR Excellence Holdings, Inc. - Unfunded Revolver (7)	09/03/2024	09/03/2030	Healthcare, Education and Childcare		—			—	2,681		-		(47	)
Paving Lessor Corp.	07/01/2025	07/01/2031	Business Services		9.25	%	3M SOFR+525		6,974		6,922		6,921
Paving Lessor Corp. - Unfunded Term Loan (7)	07/01/2025	07/01/2027	Business Services		—			—	3,291		-		-
Paving Lessor Corp. - Unfunded Revolver (7)	07/01/2025	07/01/2031	Business Services		—			—	2,194		-		(16	)
PCS MIDCO, Inc.	03/01/2024	03/01/2030	Financial Services		9.75	%	3M SOFR+575		2,322		2,303		2,322
PCS MIDCO, Inc. - Unfunded Term Loan (7)	03/01/2024	03/02/2026	Financial Services		—			—	2,078		-		21
PCS MIDCO, Inc. - Unfunded Revolver (7)	03/01/2024	03/01/2030	Financial Services		—			—	1,762		-		-
Peninsula Pacific Entertainment	08/15/2025	08/22/2032	Gaming		9.02	%	3M SOFR+475		5,251		5,198		5,238
Peninsula Pacific Entertainment - Unfunded Term Loan (7)	08/15/2025	08/25/2027	Gaming		—			—	1,231		-		3
Penta Group Holdings, Inc.	07/31/2025	07/31/2031	Business Services		8.50	%	3M SOFR+450		3,556		3,538		3,538
Penta Group Holdings, Inc. - Unfunded Term Loan (7)	07/31/2025	07/31/2027	Business Services		—			—	2,591		-		-
Penta Group Holdings, Inc. - Funded Revolver	07/31/2025	07/31/2031	Business Services		8.50	%	3M SOFR+450		210		210		209
Penta Group Holdings, Inc. - Unfunded Revolver (7)	07/31/2025	07/31/2031	Business Services		—			—	437		-		(2	)
PlayPower, Inc.	08/28/2024	08/28/2030	Manufacturing/Basic Industry		9.25	%	3M SOFR+525		11,880		11,804		11,880
PlayPower, Inc. - Unfunded Revolver (7)	08/28/2024	08/28/2030	Manufacturing/Basic Industry		—			—	2,570		-		-
Podean Buyer, Inc.	08/04/2025	08/04/2031	Marketing Services		10.00	%	3M SOFR+600		4,030		3,990		3,990
Podean Buyer, Inc. - Unfunded Revolver (7)	08/04/2025	08/04/2031	Marketing Services		—			—	796		-		(8	)
PL Acquisitionco, LLC - Funded Revolver (13)	11/05/2021	11/09/2027	Retail		4.27	%		—	863		863		345
PL Acquisitionco, LLC - Unfunded Revolver (7), (13)	11/05/2021	11/09/2027	Retail		—			—	755		-		(453	)
Project Granite Buyer, Inc. - Unfunded Term Loan (7)	12/31/2024	12/31/2026	Business Services		—			—	554		-		11
Project Granite Buyer, Inc. - Unfunded Revolver (7)	12/31/2024	12/31/2030	Business Services		—			—	923		-		9
Radius Aerospace, Inc. - Funded Revolver	11/14/2022	03/29/2027	Aerospace and Defense		10.29	%	3M SOFR+600		410		410		400
Radius Aerospace, Inc. - Unfunded Revolver (7)	11/14/2022	03/29/2027	Aerospace and Defense		—			—	1,819		-		(41	)
Rancho Health MSO, Inc. - Unfunded Term Loan (7)	09/27/2021	06/30/2026	Healthcare, Education and Childcare		—			—	1,954		-		8
Rancho Health MSO, Inc. - Funded Revolver	09/27/2021	06/20/2029	Healthcare, Education and Childcare		9.29	%	3M SOFR+500		1,962		1,962		1,962
Rancho Health MSO, Inc. - Unfunded Revolver (7)	09/27/2021	06/20/2029	Healthcare, Education and Childcare		—			—	713		-		-
Recteq, LLC - Funded Revolver	01/27/2021	01/29/2026	Consumer Products		10.46	%	3M SOFR+625		313		313		312
Recteq, LLC - Unfunded Revolver (7)	01/27/2021	01/29/2026	Consumer Products		—			—	814		-		(2	)
Riverpoint Medical, LLC - Unfunded Revolver (7)	06/19/2019	06/21/2027	Healthcare, Education and Childcare		—			—	364		-		-
Ro Health, LLC - Funded Revolver	01/16/2025	01/17/2031	Healthcare Providers & Services		8.50	%	3M SOFR+450		1,258		1,258		1,258
Ro Health, LLC - Unfunded Revolver (7)	01/16/2025	01/17/2031	Healthcare Providers & Services		—			—	2,935		-		-
Rosco Parent, LLC	09/09/2025	09/12/2031	Business Services		8.81	%	3M SOFR+475		10,167		10,090		10,090
Rosco Parent, LLC - Unfunded Revolver (7)	09/09/2025	09/12/2031	Business Services		—			—	1,332		-		-
Route 66 Development	01/28/2025	01/24/2031	Gaming		13.16	%	3M SOFR+900		18,000		17,655		17,910
RRA Corporate, LLC	08/15/2024	08/15/2029	Business Services		9.00	%	3M SOFR+500		2,996		2,967		2,978
RRA Corporate, LLC - Unfunded Term Loan (7)	08/15/2024	08/17/2026	Business Services		—			—	7,178		-		29
RRA Corporate, LLC - Funded Revolver	08/15/2024	08/15/2029	Business Services		9.25	%	3M SOFR+525		1,448		1,448		1,440
RRA Corporate, LLC - Unfunded Revolver (7)	08/15/2024	08/15/2029	Business Services		—			—	1,700		-		(10	)
RTIC Subsidiary Holdings, LLC - Funded Revolver	05/03/2024	05/03/2029	Consumer Products		9.75	%	3M SOFR+575		1,898		1,898		1,879
RTIC Subsidiary Holdings, LLC - Unfunded Revolver (7)	05/03/2024	05/03/2029	Consumer Products		—			—	3,524		-		(35	)
Rural Sourcing Holdings, Inc. - Funded Revolver	06/08/2023	06/15/2029	Business Services		10.08	%	3M SOFR+575		487		487		438
Rural Sourcing Holdings, Inc. - Unfunded Revolver (7)	06/08/2023	06/15/2029	Business Services		—			—	373		-		(37	)
Sabel Systems Technology Solutions, LLC - Funded Revolver	10/31/2024	10/31/2030	Government Services		12.75	%	3M SOFR+525		66		66		66
Sabel Systems Technology Solutions, LLC - Unfunded Revolver (7)	10/31/2024	10/31/2030	Government Services		—			—	1,261		-		-
Safe Haven Defense US, LLC	05/23/2024	05/23/2029	Building Materials		9.50	%	3M SOFR+525		3,919		3,871		3,899
Safe Haven Defense US, LLC - Unfunded Revolver (7)	05/23/2024	05/23/2029	Building Materials		—			—	1,114		-		(6	)
Sales Benchmark Index, LLC - Funded Revolver	05/29/2020	07/07/2026	Business Services		9.20	%	3M SOFR+520		244		244		244
Sales Benchmark Index, LLC - Unfunded Revolver (7)	05/29/2020	07/07/2026	Business Services		—			—	366		-		-
Sath Industries, LLC	12/17/2024	12/17/2029	Event Services		9.54	%	3M SOFR+550		11,389		11,287		11,389
Sath Industries, LLC - Unfunded Revolver (7)	12/17/2024	12/17/2029	Event Services		—			—	1,300		-		-
Schlesinger Global, Inc.	07/02/2019	11/12/2025	Business Services		12.92	%	3M SOFR+860		2,613		2,605		2,482
				(PIK 5.85%)
Schlesinger Global, Inc. - Funded Revolver	07/02/2019	11/12/2025	Business Services		12.92	%	3M SOFR+860		34		34		32
				(PIK 5.85%)
Schlesinger Global, Inc. - Unfunded Revolver (7)	07/02/2019	11/12/2025	Business Services		—			—	5		-		-

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Seacoast Service Partners NA, LLC	12/20/2024	12/20/2029	Diversified Conglomerate Service		9.01	%	3M SOFR+500		1,801	$	1,786	$	1,727
Seacoast Service Partners NA, LLC - Unfunded Term Loan (7)	12/20/2024	12/21/2026	Diversified Conglomerate Service		—			—	3,608		-		(116	)
Seacoast Service Partners NA, LLC - Funded Revolver	12/20/2024	12/20/2029	Diversified Conglomerate Service		9.00	%	3M SOFR+500		569		569		546
Seacoast Service Partners NA, LLC - Unfunded Revolver (7)	12/20/2024	12/20/2029	Diversified Conglomerate Service		—			—	786		-		(32	)
Seaway Buyer, LLC	06/08/2022	06/13/2029	Chemicals, Plastics and Rubber		10.17	%	3M SOFR+615		4,656		4,611		4,342
Seaway Buyer, LLC - Funded Revolver	06/08/2022	06/13/2028	Chemicals, Plastics and Rubber		10.19	%	3M SOFR+615		2,605		2,605		2,429
Seaway Buyer, LLC - Unfunded Revolver (7)	06/08/2022	06/13/2028	Chemicals, Plastics and Rubber		—			—	521		-		(35	)
Shiftkey, LLC	06/17/2022	06/21/2027	Business Services		10.01	%	3M SOFR+601		16,593		16,515		15,913
Sigma Defense Systems, LLC	11/30/2021	12/20/2027	Telecommunications		10.31	%	3M SOFR+615		10,450		10,209		10,450
Sigma Defense Systems, LLC - Funded Revolver	11/30/2021	12/20/2027	Telecommunications		10.90	%	3M SOFR+690		850		850		850
Sigma Defense Systems, LLC - Unfunded Revolver (7)	11/30/2021	12/20/2027	Telecommunications		—			—	2,835		-		-
Spendmend Holdings, LLC	02/25/2022	03/01/2028	Business Services		9.15	%	3M SOFR+515		1,192		1,186		1,192
Spendmend Holdings, LLC - Unfunded Term Loan (7)	02/25/2022	11/25/2026	Business Services		—			—	1,434		-		7
Spendmend Holdings, LLC - Funded Revolver	02/25/2022	03/01/2028	Business Services		9.15	%	3M SOFR+515		234		234		234
Spendmend Holdings, LLC - Unfunded Revolver (7)	02/25/2022	03/01/2028	Business Services		—			—	1,168		-		-
STG Distribution, LLC - First Out New Money Term Loans	10/03/2024	10/03/2029	Transportation		12.57	%	3M SOFR+835		4,330		4,131		3,854
				(PIK 7.25%)
STG Distribution, LLC - Second Out Term Loans (13)	10/03/2024	10/03/2029	Transportation		5.32	%		—	10,012		5,656		801
SV-Aero Holdings, LLC - Unfunded Term Loan (7)	10/31/2024	11/02/2026	Aerospace and Defense		—			—	3,562		-		18
System Planning and Analysis, Inc.	10/12/2021	08/16/2027	Aerospace and Defense		9.05	%	3M SOFR+475		9,468		9,415		9,392
System Planning and Analysis, Inc. - Unfunded Term Loan (7)	10/12/2021	06/12/2027	Aerospace and Defense		—			—	589		-		(2	)
System Planning and Analysis, Inc. - Funded Revolver	10/12/2021	08/16/2027	Aerospace and Defense		9.06	%	3M SOFR+475		437		437		433
System Planning and Analysis, Inc. - Unfunded Revolver (7)	10/12/2021	08/16/2027	Aerospace and Defense		—			—	4,279		-		(34	)
TCG 3.0 Jogger Acquisitionco, Inc.	01/23/2024	01/23/2029	Media		10.52	%	3M SOFR+650		8,865		8,753		8,821
TCG 3.0 Jogger Acquisitionco, Inc. - Funded Revolver	01/23/2024	01/23/2029	Media		12.75	%	3M SOFR+550		310		310		309
TCG 3.0 Jogger Acquisitionco, Inc. - Unfunded Revolver (7)	01/23/2024	01/23/2029	Media		—			—	1,414		-		(7	)
The Bluebird Group, LLC - Unfunded Revolver (7)	07/22/2021	07/28/2026	Business Services		—			—	734		-		-
The Vertex Companies, LLC	08/25/2021	08/31/2028	Business Services		8.88	%	3M SOFR+485		6,638		6,587		6,608
The Vertex Companies, LLC - Funded Revolver	08/25/2021	08/31/2028	Business Services		9.01	%	3M SOFR+485		1,455		1,455		1,448
The Vertex Companies, LLC - Unfunded Revolver (7)	08/25/2021	08/31/2028	Business Services		—			—	2,513		-		(13	)
TMII Enterprises, LLC - Unfunded Revolver (7)	12/19/2022	12/22/2028	Personal, Food and Miscellaneous Services		—			—	2,532		-		-
TransGo, LLC - Unfunded Revolver (7)	12/29/2023	12/29/2028	Machinery		—			—	2,775		-		21
Urology Management Holdings, Inc. - Unfunded Term Loan (7)	09/03/2024	09/03/2026	Healthcare, Education and Childcare		—			—	1,000		-		5
US Fertility Enterprises, LLC	10/07/2024	10/11/2031	Healthcare, Education and Childcare		8.81	%	3M SOFR+450		263		263		263
Walker Edison Furniture Company, LLC - New Money DIP	03/01/2023	03/01/2029	Home and Office Furnishings		10.00	%		—	297		297		303
Walker Edison Furniture Company, LLC - Unfunded Term Loan (7)	03/01/2023	03/01/2029	Home and Office Furnishings		—			—	786		-		27
Wash & Wax Systems, LLC	10/20/2021	04/30/2028	Auto Sector	PIK 9.78%			3M SOFR+550		1,206		1,227		1,231
Wash & Wax Systems, LLC - Funded Revolver	10/20/2021	04/30/2028	Auto Sector	PIK 9.78%			3M SOFR+550		13		13		13
Wash & Wax Systems, LLC - Unfunded Revolver (7)	10/20/2021	04/30/2028	Auto Sector		—			—	617		-		-
Watchtower Buyer, LLC. - Unfunded Revolver (7)	11/29/2023	12/03/2029	Electronics		—			—	6,300		-		(63	)
Total First Lien Secured Debt											537,235		517,648
Second Lien Secured Debt - 3.9% of Net Assets
Burgess Point Purchaser Corporation	07/26/2022	07/28/2030	Auto Sector		13.41	%	3M SOFR+910		8,000		7,741		8,000
ENC Parent Corporation	08/06/2021	08/19/2029	Business Services		11.76	%	3M SOFR+776		7,500		7,453		6,750
TEAM Services Group, LLC	04/26/2024	12/18/2028	Healthcare, Education and Childcare		13.57	%	3M SOFR+926		3,429		3,425		3,411
Total Second Lien Secured Debt											18,619		18,161

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Subordinate Debt/Corporate Notes - 8.2% of Net Assets
Beacon Behavioral Holdings, LLC	06/21/2024	06/21/2030	Healthcare, Education and Childcare	PIK 15.00%				—	5,948	$	5,885	$	5,948
Gauge Schlesinger Coinvest, LLC	07/02/2019	01/08/2026	Business Services		12.92	%	3M SOFR+860		1		1		3
Northwinds Topco, Inc.	08/16/2024	10/30/2029	Consumer Services	PIK 15.00%				—	11,902		11,814		11,842
Northwinds Topco, Inc. - Unfunded Term Loan (7)	08/16/2024	10/30/2029	Consumer Services		—			—	3,500		-		(18	)
ORL Holdco, Inc. - Convertible Notes	08/02/2024	03/08/2028	Business Services		18.00	%		—	6		6		-
ORL Holdco, Inc. - Unfunded Convertible Notes (7)	08/02/2024	03/08/2028	Business Services		—			—	6		-		(5	)
OSP Embedded Aggregator, LP - Convertible Note	11/06/2024	05/08/2030	Aerospace and Defense		12.00	%		—	24		237		276
StoicLane, Inc. - Convertible Notes	08/15/2024	08/16/2027	Healthcare, Education and Childcare		12.00	%		—	917		917		1,055
StoicLane, Inc. - Unfunded Convertible Notes (7)	08/15/2024	08/16/2027	Healthcare, Education and Childcare		—			—	306		-		46
United Land Services Intermediate Parent Holdings, LLC	07/12/2024	12/23/2026	Environmental Services	PIK 14.75%				—	18,112		17,872		17,931
United Land Services Intermediate Parent Holdings, LLC - Unfunded Term Loan (7)	07/12/2024	01/12/2026	Environmental Services		—			—	2,541		-		13
Wash & Wax Systems, LLC	10/20/2021	07/30/2028	Auto Sector	PIK 12.00%				—	811		812		811
Total Subordinate Debt											37,544		37,902
Preferred Equity/Partnership Interests - 4.3% of Net Assets (6)
Accounting Platform Blocker, Inc.	08/09/2024		Financial Services					—	356,200		356		356
Ad.net Holdings, Inc.	05/04/2021		Media					—	2,400		240		215
AFC Acquisitions, Inc. (F-2 Series) (9)	12/07/2023		Distribution					—	490		749		819
AFC Acquisitions, Inc. (G-2 Series) (9)	12/07/2023		Distribution					—	11		18		19
AFC Acquisitions, Inc. (H-2 Series) (9)	12/07/2023		Distribution					—	6		12		13
AFC Acquisitions, Inc. (I-2 Series) (9)	12/07/2023		Distribution					—	6		12		11
AFC Acquisitions, Inc. (J-2 Series) (9)	12/07/2023		Distribution					—	10		20		20
AH Holdings, LLC	03/23/2011		Healthcare, Education and Childcare		6.00	%		—	211		500		335
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9)	05/21/2019		Media					—	1,135		1,135		1,120
BioDerm Holdings, LP	01/30/2023		Healthcare, Education and Childcare					—	1,312		1,312		1,307
Cartessa Aesthetics, LLC (9)	06/01/2022		Distribution					—	3,562,500		3,563		8,088
Connatix Parent, LLC	07/08/2021		Media					—	7,967		8		8
Consello Pacific Aggregator, LLC (9)	10/02/2023		Business Services					—	782,891		743		603
C5MI Holdco, LLC (9)	07/31/2024		Business Services					—	104,000		104		108
Gauge Schlesinger Coinvest, LLC - Class A-2	05/24/2023		Business Services					—	1		1		-
EvAL Home Health Solutions, LLC (9)	05/10/2024		Healthcare, Education and Childcare					—	272,771		453		409
Five Star Parent Holdings, LLC - Class P	07/09/2025		Leisure, Amusement, Motion Pictures, Entertainment					—	384		38		164
Hancock Claims Consultants Investors, LLC - Class A (9)	04/30/2024		Insurance					—	116,588		76		134
HPA SPQ Aggregator, LP	06/08/2023		Business Services					—	52,353		52		52
Imagine Topco, LP Preferred	11/04/2021		Business Services		8.00	%		—	743,826		744		1,017
Magnolia Topco, LP - Class A (9)	07/25/2023		Auto Sector					—	1,545		1,545		1,424
Magnolia Topco, LP - Class A-1 (9)	07/25/2023		Auto Sector					—	530		530		1,060
Magnolia Topco, LP - Class B (9)	07/25/2023		Auto Sector					—	1,018		643		-
Megawatt Acquisition Partners, LLC - Class A	06/28/2024		Electronics					—	5,349		535		417
NXOF Holdings, Inc.	02/26/2019		Aerospace and Defense					—	422		422		441
ORL Holdco, Inc.	09/01/2021		Business Services					—	575		57		-
PL Acquisitionco, LLC - (9)	05/31/2023		Retail					—	73		73		-
RTIC Parent Holdings, LLC - Class A-1 (9)	05/03/2024		Consumer Products					—	5		5		-
RTIC Parent Holdings, LLC - Class C (9)	05/03/2024		Consumer Products					—	10,624		700		1,290
RTIC Parent Holdings, LLC - Class D (9)	05/03/2024		Consumer Products					—	11,276		113		152
SP L2 Holdings, LLC	11/04/2021		Consumer Products					—	331,229		81		-
SP L2 Holdings, LLC - Unfunded (7)	11/04/2021		Consumer Products					—	189,274		-		(46	)
TPC Holding Company, LP	12/04/2019		Food					—	219		219		236
TWD Parent Holdings, LLC	08/25/2021		Business Services					—	33		33		47
Total Preferred Equity/Partnership Interests											15,092		19,819
Common Equity/Partnership Interests/Warrants - 30.0% of Net Assets (6)
A1 Garage Equity, LLC (9)	12/19/2022		Personal, Food and Miscellaneous Services					—	2,193,038		2,193		3,893
ACP Big Top Holdings, LP	02/29/2024		Manufacturing/Basic Industry					—	773,800		744		1,134
Ad.net Holdings, Inc.	05/04/2021		Media					—	2,667		27		-
Aechelon InvestCo, LP	08/16/2024		Aerospace and Defense					—	10,684		1,068		4,064
Aechelon InvestCo, LP - Unfunded (7)	08/16/2024		Aerospace and Defense					—	11,940		-		-
Aftermarket Drivetrain Products Holdings, LLC	12/29/2023		Machinery					—	1,645		1,645		3,062
AG Investco, LP (9)	11/05/2018		Business Services					—	8,052		805		75
AG Investco, LP - Unfunded (7), (9)	11/05/2018		Business Services					—	1,948		-		(177	)
Altamira Intermediate Company II, Inc.	07/23/2019		Aerospace and Defense					—	125,000		125		116
AMCSI Crash Co-Invest, LP	07/28/2022		Auto Sector					—	24,898		2,490		3,794
AMCSI Crash Co-Invest, LP - Unfunded (7)	07/28/2022		Auto Sector					—	5,102		-		-
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9)	05/21/2019		Media					—	1,135		-		-
APT INTERMEDIATE, LLC (9)	09/29/2025		Healthcare, Education and Childcare					—	384,799		519		519
Athletico Holdings, LLC (9)	02/04/2022		Healthcare, Education and Childcare					—	9,357		10,000		6,897

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Industry			Cost
Atlas Investment Aggregator, LLC	05/03/2021	Telecommunications	—	1,700,000	$	1,613	-
Azureon, LLC (9)	06/26/2024	Diversified Conglomerate Service	—	508,238		508	432
BioDerm, Inc.	09/09/2024	Healthcare, Education and Childcare	—	1,312		-	-
Burgess Point Holdings, LP	07/21/2022	Auto Sector	—	764		777	825
Carnegie Holdco, LLC (9)	02/07/2024	Education	—	1,680,300		1,603	1,260
Carisk Parent, LP	11/27/2023	Healthcare, Education and Childcare	—	204,455		204	236
Connatix Parent, LLC	07/08/2021	Media	—	273,207		632	315
Cowboy Parent LLC	09/12/2018	Distribution	—	27,778		3,015	3,157
Crane 1 Acquisition Parent Holdings, LP	08/11/2021	Personal, Food and Miscellaneous Services	—	113		104	220
C5MI Holdco, LLC (9)	07/31/2024	Business Services	—	754,200		754	694
Delta InvestCo, LP (9)	12/16/2020	Telecommunications	—	913,649		866	1,768
Delta InvestCo, LP - Unfunded (7), (9)	12/16/2020	Telecommunications	—	227,395		-	-
Duggal Acquisition, LLC	09/30/2024	Marketing Services	—	314		314	287
EDS Topco, LP	12/19/2022	Aerospace and Defense	—	937,500		938	1,935
Events Buyer, LLC	12/17/2024	Event Services	—	536,267		536	684
Exigo, LLC	03/10/2022	Business Services	—	1,458,333		1,458	1,547
FedHC InvestCo, LP (9)	08/26/2021	Aerospace and Defense	—	15,255		545	2,023
FedHC InvestCo, LP - Unfunded (7), (9)	08/26/2021	Aerospace and Defense	—	2,563		-	-
FedHC InvestCo II, LP (9)	12/23/2021	Aerospace and Defense	—	21,817		2,303	3,002
First Medical Holdings, LLC	06/13/2025	Healthcare, Education and Childcare	—	45,000		450	464
Five Star Parent Holdings, LLC	02/21/2023	Leisure, Amusement, Motion Pictures, Entertainment	—	655,714		656	-
Gauge APHIX Blocker, LLC	07/16/2025	Business Services	—	489,789		490	519
Gauge ETE Blocker, LLC	05/24/2023	Personal, Food and Miscellaneous Services	—	374,444		374	288
Gauge Lash Coinvest, LLC	12/04/2019	Consumer Products	—	1,231,392		951	2,430
Gauge Loving Tan, LP	05/25/2023	Consumer Products	—	543,562		544	700
Gauge Schlesinger Coinvest, LLC	04/22/2020	Business Services	—	9		10	-
GCOM InvestCo, LP	05/11/2021	Business Services	—	2,434		1,003	649
GCP Boss Holdco, LLC	12/27/2024	Conglomerate Manufacturing	—	1,045,100		1,045	1,515
GGG MIDCO, LLC (9)	09/27/2024	Home and Office Furnishings, Housewares and Durable Consumer Products	—	1,222,700		1,223	1,589
GMP Hills, LP	11/02/2023	Distribution	—	3,747,470		3,747	4,647
Hancock Claims Consultants Investors, LLC (9)	12/23/2020	Insurance	—	450,000		450	194
HPA SPQ Aggregator, LP	06/08/2023	Business Services	—	750,399		750	46
HV Watterson Holdings, LLC	06/13/2022	Business Services	—	1,600,000		1,600	-
Icon Partners V C, LP	12/20/2021	Business Services	—	1,201,283		1,201	1,184
Icon Partners V C, LP - Unfunded (7)	12/20/2021	Business Services	—	298,717		-	(4	)
IHS Parent Holdings, LP	12/21/2022	Personal, Food and Miscellaneous Services	—	1,218,045		1,218	1,717
Imagine Topco, LP	11/04/2021	Business Services	—	743,826		-	69
Infogroup Parent Holdings, Inc.	05/31/2023	Other Media	—	181,495		2,040	2,735
Ironclad Holdco, LLC (Applied Technical Services, LLC)	12/23/2020	Environmental Services	—	4,993		525	1,139
ITC Infusion Co-invest, LP (9)	02/16/2022	Healthcare, Education and Childcare	—	162,445		1,673	4,419
Kinetic Purchaser, LLC - Class A	11/08/2021	Consumer Products	—	1,308,814		1,309	11
Kinetic Purchaser, LLC - Class AA	11/08/2021	Consumer Products	—	115,688		135	271
KL Stockton Co-Invest, LP (9)	07/16/2021	Personal, Food and Miscellaneous Services	—	382,353		385	639
Lightspeed Investment Holdco, LLC	01/21/2020	Healthcare, Education and Childcare	—	273,143		273	993
LJ Avalon, LP	01/18/2023	Environmental Services	—	851,087		851	1,362
Lorient Peregrine Investments, LP	11/18/2022	Business Services	—	335,590		4,530	2,339
Magnolia Topco, LP - Class A (9)	07/25/2023	Auto Sector	—	1,545,460		-	-
Magnolia Topco, LP - Class B (9)	07/25/2023	Auto Sector	—	1,017,840		-	-
Marketplace Events Acquisition, LLC	12/19/2024	Media	—	14,640		1,464	1,731
MDI Aggregator, LP	07/19/2022	Chemicals, Plastics and Rubber	—	31,904		3,232	3,035
Meadowlark Title, LLC (9)	12/09/2021	Business Services	—	815,385		802	383
Megawatt Acquisition Partners, LLC - Class A	06/28/2024	Electronics	—	594		59	-
Municipal Emergency Services, Inc.	09/28/2021	Distribution	—	3,920,145		3,984	8,154
NEPRT Parent Holdings, LLC (9)	01/27/2021	Consumer Products	—	1,299		1,250	205
New Insight Holdings, Inc.	07/15/2024	Business Services	—	1,157		20	17

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Industry			Cost		Fair Value (3)
New Medina Health, LLC (9)	10/16/2023	Healthcare, Education and Childcare	—	1,429,480	$	1,429	$	2,225
NFS - CFP Holdings, LLC	09/13/2024	Business Services	—	662,983		663		804
NORA Parent Holdings, LLC (9)	08/22/2023	Healthcare, Education and Childcare	—	1,257		1,248		612
North Haven Saints Equity Holdings, LP (9)	02/25/2022	Business Services	—	351,553		352		355
Northwinds Services Group, LLC	08/16/2024	Consumer Services	—	840,000		1,680		1,960
NXOF Holdings, Inc.	02/26/2019	Aerospace and Defense	—	8,188		108		-
OceanSound Discovery Equity, LP (9)	03/28/2024	Aerospace and Defense	—	119,966		1,200		1,496
OES Co-Invest, LP - Class A	05/31/2024	Diversified Conglomerate Service	—	840		851		714
OHCP V BC COI, LP	12/13/2021	Distribution	—	699,844		700		385
OHCP V BC COI, LP - Unfunded (7)	12/13/2021	Distribution	—	50,156		-		(23	)
ORL Holdco, Inc.	09/01/2021	Business Services	—	638		6		-
OSP Embedded Aggregator, LP	12/11/2023	Aerospace and Defense	—	871		871		1,011
OSP PAR Holdings, LP	09/03/2024	Healthcare, Education and Childcare	—	1,806		1,812		1,735
Paving Parent, LLC	07/01/2025	Business Services	—	1,166		1,166		1,092
PCS Parent, LP	03/01/2024	Financial Services	—	421,304		421		421
PennantPark-TSO Senior Loan Fund II, LP (11)	01/07/2022	Financial Services	—	8,115,794		8,116		7,008
Penta Group Holdings, Inc.	07/31/2025	Business Services	—	813,376		813		813
Pink Lily Holdco, LLC (9)	11/05/2021	Retail	—	1,044		1,044		-
Podean Intermediate II, LLC	08/04/2025	Marketing Services	—	287		287		287
Project Granite Holdings, LLC	12/31/2024	Business Services	—	369		369		386
Quad (U.S.) Co-Invest, LP	10/03/2022	Business Services	—	2,607,587		2,608		4,036
QuantiTech InvestCo, LP (9)	05/01/2020	Aerospace and Defense	—	700		-		96
QuantiTech InvestCo, LP - Unfunded (7), (9)	05/01/2020	Aerospace and Defense	—	955		-		-
QuantiTech InvestCo II, LP (9)	05/01/2020	Aerospace and Defense	—	40		12		7
RFMG Parent, LP	12/16/2020	Healthcare, Education and Childcare	—	1,050,000		1,050		1,292
Ro Health Holdings, Inc.	01/16/2025	Healthcare Providers & Services	—	289,700		290		436
Rosco Topco, LLC	09/09/2025	Business Services	—	701,149		701		701
Sabel InvestCo, LP (9)	10/31/2024	Government Services	—	32,771		830		1,098
Sabel InvestCo, LP - Unfunded (7), (9)	10/31/2024	Government Services	—	47,957		-		-
Safe Haven Defense MidCo, LLC (9)	05/23/2024	Building Materials	—	245		245		89
SBI Holdings Investments, LLC	12/23/2019	Business Services	—	36,585		366		410
Seacoast Service Partners, LLC	12/20/2024	Diversified Conglomerate Service	—	274		351		263
Seaway Topco, LP	06/08/2022	Chemicals, Plastics and Rubber	—	2,981		2,981		661
SP L2 Holdings, LLC	11/04/2021	Consumer Products	—	881,966		882		-
SSC Dominion Holdings, LLC	07/11/2018	Electronics	—	36		36		3,478
StellPen Holdings, LLC	08/17/2021	Media	—	153,846		154		114
TAC LifePort Holdings, LLC (9)	02/24/2021	Aerospace and Defense	—	254,206		239		600
TCG 3.0 Jogger Co-Invest, LP	01/22/2024	Media	—	6,475		1,252		841
Tinicum Space Coast Co-Invest, LLC (9)	10/29/2024	Aerospace and Defense	—	216		2,177		2,406
Tinicum Space Coast Holdings, LLC (9)	12/06/2023	Aerospace and Defense	—	25		210		614
Tower Arch Infolinks Media, LP (9)	10/27/2021	Media	—	548,251		253		644
Tower Arch Infolinks Media, LP - Unfunded (7), (9)	10/27/2021	Media	—	347,194		-		-
TPC Holding Company, LP	12/04/2019	Food	—	11,527		12		-
TWD Parent Holdings, LLC	08/25/2021	Business Services	—	670		3		17
United Land Services Holdings, LLC	07/12/2024	Environmental Services	—	184,049		600		695
UniVista Insurance (9)	06/14/2021	Business Services	—	400		-		113
Urology Partners Co, LP	01/20/2023	Healthcare, Education and Childcare	—	1,111,111		1,111		4,656
Wash & Wax Systems. LLC (9)	04/30/2025	Auto Sector	—	514		917		947
Watchtower Holdings, LLC (9)	11/29/2023	Electronics	—	12,419		1,242		1,107
WCP Ivyrehab Coinvestment, LP (9)	06/27/2022	Healthcare, Education and Childcare	—	208		208		268
WCP Ivyrehab QP CF Feeder, LP (9)	06/27/2022	Healthcare, Education and Childcare	—	3,754		3,853		4,839
WCP Ivyrehab QP CF Feeder, LP - Unfunded (7), (9)	06/27/2022	Healthcare, Education and Childcare	—	246		-		-
White Tiger Newco, LLC	07/31/2025	Leisure, Amusement, Motion Pictures, Entertainment	—	4,833		368		338
Kentucky Racing Holdco, LLC (Warrants) (9)	04/16/2019	Hotels, Motels, Inns and Gaming	—	161,252		-		1,848
Total Common Equity/Partnership Interests/Warrants						120,117		139,097

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2025

(In thousands, except share data)

Issuer Name	Acquisition	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (4)				Fair Value (3)
US Government Securities - 26.9% of Net Assets
U.S. Treasury Bill (5)	10/02/2025	10/31/2025	Short-Term U.S. Government Securities		3.98	%		—	125,000	124,809	$	124,788
Total US Government Securities										124,809		124,788
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies										853,416		857,415
Investments in Non-Controlled, Affiliated Portfolio Companies - 1.1% of Net Assets (1), (2)
Preferred Equity/Partnership Interests - 1.1% of Net Assets (6)
Cascade Environmental Holdings, LLC	02/19/2025		Environmental Services					—	918	918		1,657
Cascade Environmental Holdings, LLC - Series B	02/19/2025		Environmental Services					—	5,887,236	32,791		3,234
Total Preferred Equity/Partnership Interests										33,709		4,891
Common Equity/Partnership Interests/Warrants - 0.0% of Net Assets (6)
Cascade Environmental Holdings, LLC	02/19/2015		Environmental Services					—	7,444,347	2,852		—
Total Common Equity/Partnership Interests/Warrants										2,852		—
Total Investments in Non-Controlled, Affiliated Portfolio Companies										36,561		4,891
Investments in Controlled, Affiliated Portfolio Companies - 91.6% (1), (2)
First Lien Secured Debt - 14.0% of Net Assets
AKW Holdings Limited (8), (11)	03/07/2018	03/15/2027	Healthcare, Education and Childcare		11.19	%	3M SOFR+700		40,000	54,714		53,850
Pragmatic Institute, LLC	07/05/2022	03/28/2030	Business Services	PIK 9.50%			3M SOFR+550		15,000	15,000		10,875
Total First Lien Secured Debt										69,714		64,725
Subordinated Debt - 35.2% of Net Assets
Flock Financial, LLC (11)	04/19/2024	10/19/2027	Financial Services		12.50	%		—	23,031	23,031		23,031
PennantPark Senior Loan Fund, LLC (11)	07/31/2020	07/31/2027	Financial Services		12.29	%	3M SOFR+800		140,287	140,287		140,287
Total Subordinated Debt										163,318		163,318
Preferred Equity - 5.7% of Net Assets (6)
Flock Financial Class A (11)	04/19/2024		Financial Services					—	2,047,727	7,313		17,868
Flock Financial Class B (9), (11)	04/19/2024		Financial Services					—	5,409,091	19,318		8,415
Total Preferred Equity										26,631		26,283
Common Equity - 36.8% of Net Assets (6)
AKW Holdings Limited - Class A (8), (11)	03/07/2018		Healthcare, Education and Childcare					—	950	132		33,742
AKW Holdings Limited - Class B (8), (11)	03/07/2018		Healthcare, Education and Childcare					—	13	124		483
AKW Holdings Limited - Class C (8), (11)	03/07/2018		Healthcare, Education and Childcare					—	13	146		571
JF Intermediate, LLC	08/31/2022		Distribution					—	43,918	4,488		68,332
PennantPark Senior Loan Fund, LLC (11)	07/31/2020		Financial Services					—	82,176,579	82,358		67,513
Pragmatic Institute, LLC	03/28/2025		Business Services					—	480	-		-
Total Common Equity										87,248		170,641
Total Investments in Controlled, Affiliated Portfolio Companies										346,911		424,967
Total Investments - 277.5% of Net Assets (12), (14)										1,236,888		1,287,273
Cash and Cash Equivalents - 11.2% of Net Assets
BlackRock Federal FD Institutional 81 (Money Market Fund)					4.11	%				30,711		30,711
Non-Money Market Cash										21,028		21,072
Total Cash and Cash Equivalents										51,739		51,783
Total Investments and Cash Equivalents - 288.6%										1,288,627	$	1,339,056
Liabilities in Excess of Other Assets - (188.6)%												(875,106	)
Net Assets - 100%											$	463,950

All values are in British Pounds.

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities (See Note 6).
Valued based on our accounting policy (See Note 2).
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or “SOFR”, or Prime rate, or “P, or Sterling Overnight Index Average, or “SONIA.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 90-day or 180-day SOFR rates (1M S, 3M S, or 6M S, respectively) at the borrower’s option. SONIA loans are typically indexed daily for GBP loans with a quarterly frequency payment. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
The security was valued by using the pricing service which utilize broker-supplied prices.
Non-income producing securities.
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-U.S. company or principal place of business located in The Isle of Man. Total cost, fair value, and percentage of Net Assets for the Isle of Man was $55.1 million, $88.6 million, and 19.1%.
Investment is held through our Taxable Subsidiary (See Note 1).
Non-accrual security
The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2025, qualifying assets represent 74% of the Company’s total assets and non-qualifying assets represent 26% of the Company’s total assets.
All investments are in US Companies unless noted otherwise. Total cost, fair value, and percentage of Net Assets for the U.S. Companies were $1,181.8 million, $1,198.6 million, and 258.4%
Partial non-accrual PIK security.
All of our investments are not registered under the 1933 Act and have restrictions on resale.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Investments in Non-Controlled, Non-Affiliated Portfolio Companies - 184.3% (1), (2)
First Lien Secured Debt - 112.9% of Net Assets
A1 Garage Merger Sub, LLC	12/22/2028	Personal, Food and Miscellaneous Services	10.95%		3M SOFR+610		5,345	$	5,279	$	5,345
A1 Garage Merger Sub, LLC - Unfunded Term Loan (8)	12/21/2024	Personal, Food and Miscellaneous Services		—		—	1,534		—		23
A1 Garage Merger Sub, LLC - Revolver (8)	12/22/2028	Personal, Food and Miscellaneous Services		—		—	2,532		—		—
ACP Avenu Buyer, LLC	10/02/2029	Business Services	10.52%		3M SOFR+525		28		28		27
ACP Avenu Buyer, LLC - Unfunded Term Loan (8)	04/02/2025	Business Services		—		—	1,799		—		(34	)
ACP Avenu Buyer, LLC - Funded Revolver	10/02/2029	Business Services	10.45%		3M SOFR+525		271		271		262
ACP Avenu Buyer, LLC - Revolver (8)	10/02/2029	Business Services		—		—	947		—		(31	)
ACP Falcon Buyer, Inc. - Revolver (8)	08/01/2029	Business Services		—		—	2,533		—		—
Ad.net Acquisition, LLC - Funded Revolver	05/07/2026	Media	10.93%		3M SOFR+626		178		178		178
Ad.net Acquisition, LLC - Revolver (8)	05/07/2026	Media		—		—	267		—		—
Adweek Purchaser, LLC	05/30/2027	Printing and Publishing	11.60%		3M SOFR+700		2,000		1,963		2,000
Adweek Purchaser, LLC - Unfunded Term Loan (8)	11/30/2025	Printing and Publishing		—		—	400		—		6
Aechelon Technology, Inc.	08/16/2029	Aerospace and Defense	12.60%		3M SOFR+750		5,000		4,951		4,900
Aechelon Technology, Inc. - Unfunded Revolver (8)	08/16/2029	Aerospace and Defense		—		—	1,109		—		(22	)
Aeronix, Inc. - Revolver (8)	12/12/2028	Aerospace and Defense		—		—	2,489		—		—
AFC Dell Holding Corp.	04/09/2027	Distribution	10.48%		3M SOFR+550		9,781		9,762		9,683
AFC Dell Holding Corp. - Unfunded Term Loan (8)	04/09/2027	Distribution		—		—	4,428		—		(44	)
Atlas Purchaser, Inc. - Third Out	05/06/2028	Telecommunications	11.97%		3M SOFR+700		8,840		7,499		6,144
Atlas Purchaser, Inc. - Fourth Out	05/06/2028	Telecommunications	11.97%		3M SOFR+700		4,760		674		624
Anteriad, LLC (f/k/a MeritDirect, LLC) - Revolver (8)	06/30/2026	Media		—		—	1,612		—		—
Applied Technical Services, LLC	12/29/2026	Environmental Services	10.50%		3M SOFR+590		1,182		1,174		1,164
Applied Technical Services, LLC - Unfunded Term Loan (8)	07/17/2025	Environmental Services		—		—	2,637		—		(13	)
Applied Technical Services, LLC - Revolver	12/29/2026	Environmental Services	13.25%		3M SOFR+475		1,133		1,133		1,116
Applied Technical Services, LLC - Unfunded Revolver (8)	12/29/2026	Environmental Services		—		—	669		—		(10	)
Arcfield Acquisition Corp. - Revolver (8)	08/04/2028	Aerospace and Defense		—		—	3,521		—		(18	)
Archer Lewis, LLC	08/28/2029	Healthcare, Education and Childcare	10.83%		3M SOFR+575		8,700		8,614		8,526
Archer Lewis, LLC - Unfunded Term Loan A (8)	08/28/2025	Healthcare, Education and Childcare		—		—	5,324		—		(53	)
Archer Lewis, LLC - Unfunded Term Loan B (8)	08/28/2026	Healthcare, Education and Childcare		—		—	8,527		—		(85	)
Archer Lewis, LLC - Unfunded Revolver (8)	08/28/2029	Healthcare, Education and Childcare		—		—	1,304		—		(26	)
Argano, LLC.	09/13/2029	Business Services	10.85%		3M SOFR+575		15,000		14,851		14,850
Argano, LLC. - Unfunded Term Loan (8)	03/13/2025	Business Services		—		—	4,981		—		—
Argano, LLC. - Unfunded Revolver (8)	09/13/2029	Business Services		—		—	794		—		—
Beacon Behavioral Support Service, LLC	06/21/2029	Healthcare, Education and Childcare	9.85%		3M SOFR+525		2,396		2,372		2,360
Beacon Behavioral Support Service, LLC - Unfunded Term Loan (8)	12/21/2025	Healthcare, Education and Childcare		—		—	3,747		—		(19	)
Beacon Behavioral Support Service, LLC - Revolver (8)	06/21/2029	Healthcare, Education and Childcare		—		—	1,206		—		(18	)
Berwick Industrial Park	05/02/2025	Buildings and Real Estate	13.00%			—	4,000		4,042		3,988
Beta Plus Technologies, Inc.	07/01/2029	Business Services	10.35%		3M SOFR+575		4,900		4,832		4,753
Big Top Holdings, LLC - Unfunded Revolver (8)	02/07/2030	Manufacturing/Basic Industry		—		—	1,155		—		—
BioDerm, Inc. - Revolver	01/31/2028	Healthcare, Education and Childcare	11.84%		3M SOFR+650		589		589		582
BioDerm, Inc. - Revolver (8)	01/31/2028	Healthcare, Education and Childcare		—		—	482		—		(6	)
Blackhawk Industrial Distribution, Inc.	09/17/2026	Distribution	11.00%		3M SOFR+640		6,279		6,239		6,171
Blackhawk Industrial Distribution, Inc. - Unfunded Term Loan (8)	09/17/2026	Distribution		—		—	2,368		—		(18	)
Blackhawk Industrial Distribution, Inc. - Revolver	09/17/2026	Distribution	11.04%		3M SOFR+640		1,093		1,093		1,074
Blackhawk Industrial Distribution, Inc. - Unfunded Revolver (8)	09/17/2026	Distribution		—		—	3,764		—		(64	)
BlueHalo Financing Holdings, LLC	10/31/2025	Aerospace and Defense	10.44%		3M SOFR+600		14		14		14
Broder Bros., Co.	12/04/2025	Consumer Products	10.97%		3M SOFR+611		9,524		9,524		9,524
Carisk Buyer, Inc. - Unfunded Term Loan (8)	12/01/2029	Healthcare, Education and Childcare		—		—	4,813		—		(24	)
Carisk Buyer, Inc. - Revolver (8)	12/01/2029	Healthcare, Education and Childcare		—		—	1,750		—		(26	)
Carnegie Dartlet, LLC	02/07/2030	Education	10.35%		3M SOFR+550		12,935		12,745		12,741
Carnegie Dartlet, LLC - Unfunded Term Loan (8)	02/07/2026	Education		—		—	10,017		—		(50	)
Carnegie Dartlet, LLC - Unfunded Revolver (8)	02/07/2030	Education		—		—	3,339		—		(50	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Cartessa Aesthetics, LLC	06/14/2028	Distribution	10.35%		3M SOFR+575		28,737	$	28,334	$	28,736
Cartessa Aesthetics, LLC - Revolver	06/14/2028	Distribution	10.35%		3M SOFR+575		1,265		1,265		1,265
Cartessa Aesthetics, LLC - Unfunded Revolver (8)	06/14/2028	Distribution		—		—	2,297		—		—
CF512, Inc.	08/20/2026	Media	11.05%		3M SOFR+619		6,525		6,475		6,427
CF512, Inc. - Revolver (8)	08/20/2026	Media		—		—	909		—		(14	)
Compex Legal Services, Inc.	02/09/2026	Business Services	10.31%		3M SOFR+555		939		933		939
Compex Legal Services, Inc. - Revolver	02/07/2025	Business Services	10.80%		3M SOFR+555		328		328		328
Compex Legal Services, Inc. - Unfunded Revolver (8)	02/07/2025	Business Services		—		—	328		—		—
Confluent Health, LLC	11/30/2028	Healthcare, Education and Childcare	12.35%		3M SOFR+750		1,970		1,854		1,970
Connatix Buyer, Inc. - Funded Revolver	07/13/2027	Media	10.58%		3M SOFR+576		424		424		424
Connatix Buyer, Inc. - Revolver (8)	07/13/2027	Media		—		—	1,451		—		—
Crane 1 Services, Inc.	08/16/2027	Personal, Food and Miscellaneous Services	9.40%		3M SOFR+586		1,777		1,751		1,763
Crane 1 Services, Inc. - Revolver (8)	08/16/2027	Personal, Food and Miscellaneous Services		—		—	435		—		(3	)
C5MI Acquisition, LLC	07/31/2030	Business Services	10.60%		3M SOFR+600		15,000		14,778		14,700
C5MI Acquisition, LLC - Funded Revolver	07/31/2030	Business Services	10.60%		3M SOFR+600		276		276		270
C5MI Acquisition, LLC - Unfunded Revolver (8)	07/31/2030	Business Services		—		—	3,858		—		(77	)
Dr. Squatch, LLC	08/31/2027	Personal and Non-Durable Consumer Products	9.95%		3M SOFR+535		8,116		8,058		8,116
Dr. Squatch, LLC - Unfunded Revolver (8)	08/31/2027	Media		—		—	2,326		—		—
DRS Holdings III, Inc.	11/03/2025	Consumer Products	11.20%		3M SOFR+635		6		6		6
DRS Holdings III, Inc. - Revolver (8)	11/03/2025	Consumer Products		—		—	1,783		—		(14	)
Duggal Acquisition, LLC	09/30/2030	Marketing Services	9.60%		3M SOFR+500		7,000		6,930		6,930
Duggal Acquisition, LLC - Unfunded Term Loan (8)	09/30/2026	Marketing Services		—		—	2,042		—		—
Duggal Acquisition, LLC - Unfunded Revolver (8)	09/30/2030	Marketing Services		—		—	2,561		—		—
Dynata, LLC - Last-Out Term Loan	07/15/2028	Business Services	10.88%		3M SOFR+576		84		84		77
EDS Buyer, LLC	12/22/2028	Aerospace and Defense	10.35%		3M SOFR+575		12,261		12,106		12,077
EDS Buyer, LLC - Revolver (8)	12/22/2028	Aerospace and Defense		—		—	1,915		—		(29	)
ENC Parent Corporation	08/20/2029	Business Services	9.12%		3M SOFR+451		3,391		2,995		2,865
ETE Intermediate II, LLC - Funded Revolver	05/25/2029	Personal, Food and Miscellaneous Services	11.10%		3M SOFR+650		1,215		1,215		1,215
ETE Intermediate II, LLC - Revolver (8)	05/25/2029	Personal, Food and Miscellaneous Services		—		—	1,215		—		—
Eval Home Health Solutions Intermediate, LLC - Revolver (8)	05/10/2030	Healthcare, Education and Childcare		—		—	822		—		(8	)
Exigo Intermediate II, LLC	03/15/2027	Business Services	11.20%		3M SOFR+635		24,128		23,911		24,007
Exigo Intermediate II, LLC - Revolver (8)	03/15/2027	Business Services		—		—	1,856		—		(9	)
Five Star Buyer, Inc.	02/23/2028	Leisure, Amusement, Motion Pictures, Entertainment	12.21%		3M SOFR+715		196		196		196
Five Star Buyer, Inc. - Revolver (8)	02/23/2028	Leisure, Amusement, Motion Pictures, Entertainment		—		—	741		—		—
Gauge ETE Blocker, LLC - Promissory Note	05/19/2029	Personal, Food and Miscellaneous Services	12.56%			—	215		215		215
GGG MIDCO, LLC	09/27/2030	Home and Office Furnishings, Housewares and Durable Consumer Products	9.64%		3M SOFR+500		8,525		8,440		8,440
GGG MIDCO, LLC - Unfunded Term Loan (8)	03/27/2026	Home and Office Furnishings, Housewares and Durable Consumer Products		—		—	13,728		—		—
GGG MIDCO, LLC - Unfunded Revolver (8)	09/27/2030	Home and Office Furnishings, Housewares and Durable Consumer Products		—		—	581		—		—
Graffiti Buyer, Inc.	08/10/2027	Distribution	10.20%		3M SOFR+560		1,132		1,123		1,121
Graffiti Buyer, Inc. - Unfunded Term Loan (8)	08/10/2027	Distribution		—		—	831		—		(2	)
Graffiti Buyer, Inc. - Funded Revolver	08/10/2027	Distribution	10.62%		3M SOFR+560		384		384		380
Graffiti Buyer, Inc. - Revolver (8)	08/10/2027	Distribution		—		—	385		—		(4	)
Halo Buyer, Inc.	06/30/2025	Consumer Products	9.45%		3M SOFR+460		4,712		4,382		4,285
Hancock Roofing and Construction L.L.C.	12/31/2026	Insurance	10.45%		1M SOFR+560		680		680		666
Hancock Roofing and Construction L.L.C. - Revolver (8)	12/31/2026	Insurance		—		—	70		—		(1	)
Harris & Co. LLC	08/09/2030	Financial Services	9.85%		3M SOFR+500		5,593		5,545		5,495
Harris & Co. LLC - Unfunded Term Loan A (8)	02/09/2025	Financial Services		—		—	13,051		—		(114	)
Harris & Co. LLC - Unfunded Term Loan B (8)	02/09/2026	Financial Services		—		—	16,654		—		(146	)
Harris & Co. LLC - Unfunded Revolver (8)	08/09/2030	Financial Services		—		—	2,451		—		(43	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)
Hills Distribution, Inc. - Unfunded Term Loan (8)	11/07/2025	Distribution		—		—	9,144	—	—
HV Watterson Holdings, LLC	12/17/2026	Business Services	11.73%		1M SOFR+640		279	278	256
			(PIK 4.00%)
HV Watterson Holdings, LLC - Revolver	12/17/2026	Business Services	11.73%		1M SOFR+640		1,213	1,213	1,112
			(PIK 4.00%)
HV Watterson Holdings, LLC - Unfunded Revolver (8)	12/17/2026	Business Services		—		—	37	—	(3	)
HW Holdco, LLC	05/10/2026	Media	11.20%		3M SOFR+590		11,124	11,112	11,124
HW Holdco, LLC - Revolver (8)	05/10/2026	Media		—		—	3,387	—	—
IG Investment Holdings LLC	09/22/2028	Business Services	11.25%		3M SOFR+610		105	104	104
IG Investments Holdings, LLC - Revolver (8)	09/22/2027	Business Services		—		—	722	—	(7	)
Imagine Acquisitionco, LLC (8)	11/15/2027	Business Services		—		—	1,685	—	(8	)
Infinity Home Services Holdco, Inc.	12/28/2028	Personal, Food and Miscellaneous Services	11.39%		3M SOFR+685		2,458	2,429	2,458
Infinity Home Services Holdco, Inc. (CAD)	12/28/2028	Personal, Food and Miscellaneous Services	10.35%		3M SOFR+600		CAD 2,562	1,846	1,897
Infinity Home Services Holdco, Inc. - 1st Amendment Unfunded Term Loan (8)	11/17/2025	Personal, Food and Miscellaneous Services		—		—	6,573	—	82
Infinity Home Services Holdco, Inc. - Funded Revolver	12/28/2028	Personal, Food and Miscellaneous Services	13.75%		3M SOFR+575		194	194	194
Infinity Home Services Holdco, Inc. - Revolver (8)	12/28/2028	Personal, Food and Miscellaneous Services		—		—	1,098	—	—
Infolinks Media Buyco, LLC	11/01/2026	Media	10.10%		3M SOFR+550		1,281	1,270	1,272
Inventus Power, Inc. - Revolver (8)	06/30/2025	Electronics		—		—	1,729	—	(26	)
ITI Holdings, Inc.	03/03/2028	Business Services	10.58%		3M SOFR+565		8,748	8,647	8,748
ITI Holdings, Inc. - Revolver	03/03/2028	Business Services	12.50%		3M SOFR+450		1,121	1,121	1,121
ITI Holdings, Inc. - Unfunded Revolver (8)	03/03/2028	Business Services		—		—	370	—	—
Kinetic Purchaser, LLC	11/10/2027	Consumer Products	10.75%		3M SOFR+615		3,099	3,023	3,099
Kinetic Purchaser, LLC - Revolver (8)	11/10/2026	Consumer Products		—		—	4,854	—	—
Lash OpCo, LLC	02/18/2027	Consumer Products	12.94%		1M SOFR+785		2,902	2,871	2,873
			(PIK 5.10%)
Lash OpCo, LLC - Revolver	08/16/2026	Consumer Products	13.18%		1M SOFR+785		2,685	2,685	2,658
			(PIK 5.10%)
Lash OpCo, LLC - Unfunded Revolver (8)	08/16/2026	Consumer Products		—		—	317	—	(3	)
LAV Gear Holdings, Inc.	10/31/2025	Leisure, Amusement, Motion Pictures, Entertainment	11.50%		1M SOFR+643		2,032	2,032	1,996
Ledge Lounger, Inc.	11/09/2026	Consumer Products	12.24%		3M SOFR+765		8,999	8,911	8,549
			(PIK 1.00%)
Ledge Lounger, Inc. - Revolver	11/09/2026	Consumer Products	12.25%		3M SOFR+765		644	644	612
Ledge Lounger, Inc. - Unfunded Revolver (8)	11/09/2026	Consumer Products		—		—	966	—	(48	)
Lightspeed Buyer Inc. - Revolver (8)	02/03/2026	Healthcare, Education and Childcare		—		—	1,166	—	—
LJ Avalon Holdings, LLC	01/31/2030	Environmental Services	10.10%		1M SOFR+525		1,459	1,438	1,459
LJ Avalon Holdings, LLC - Unfunded Term Loan (8)	10/01/2024	Environmental Services		—		—	2,419	—	12
LJ Avalon Holdings, LLC - Revolver (8)	01/31/2030	Environmental Services		—		—	587	—	—
Loving Tan Intermediate II, Inc.	05/31/2028	Consumer Products	11.10%		3M SOFR+650		9,784	9,633	9,637
Loving Tan Intermediate II, Inc. - Revolver	05/31/2028	Consumer Products	11.60%		3M SOFR+700		332	332	327
Loving Tan Intermediate II, Inc. - Unfunded Revolver (8)	05/31/2028	Consumer Products		—		—	664	—	(10	)
Loving Tan Intermediate II, Inc. - Unfunded Term Loan (8)	07/12/2025	Consumer Products		—		—	4,376	—	(22	)
MBS Holdings, Inc. - Funded Revolver	04/16/2027	Telecommunications	10.95%		3M SOFR+585		83	83	83
MBS Holdings, Inc. - Revolver (8)	04/16/2027	Telecommunications		—		—	611	—	—
MDI Buyer, Inc.	07/25/2028	Chemicals, Plastics and Rubber	10.71%		3M SOFR+575		19,931	19,679	19,736
MDI Buyer, Inc. - Revolver	07/25/2028	Chemicals, Plastics and Rubber	11.19%		3M SOFR+575		1,529	1,529	1,514
MDI Buyer, Inc. - Unfunded Revolver (8)	07/25/2028	Chemicals, Plastics and Rubber		—		—	698	—	—
Meadowlark Acquirer, LLC	12/10/2027	Business Services	10.50%		3M SOFR+590		1,923	1,908	1,874
Meadowlark Acquirer, LLC- Unfunded Revolver (8)	12/10/2027	Business Services		—		—	1,685	—	(42	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Medina Health, LLC	10/20/2028	Healthcare, Education and Childcare	10.85%		3M SOFR+625		4,887	$	4,813	$	4,887
Medina Health, LLC - Revolver (8)	10/20/2028	Healthcare, Education and Childcare		—		—	2,774		—		—
Megawatt Acquisitionco, Inc. - Funded Revolver	03/01/2030	Electronics	10.11%		3M SOFR+525		204		204		193
Megawatt Acquisitionco, Inc. - Unfunded Revolver (8)	03/01/2030	Electronics		—		—	1,653		—		(93	)
Mineola 212, LLC	06/24/2025	Buildings and Real Estate	13.00%			—	3,500		3,489		3,479
MOREGroup Holdings, Inc.	01/16/2030	Business Services	10.35%		3M SOFR+575		7,450		7,348		7,338
MOREGroup Holdings, Inc. - Unfunded Term Loan (8)	01/16/2026	Business Services		—		—	6,124		—		(31	)
MOREGroup Holdings, Inc. - Unfunded Revolver (8)	01/16/2030	Business Services		—		—	3,675		—		(55	)
Municipal Emergency Services, Inc.	09/28/2027	Distribution	9.77%		3M SOFR+515		2,792		2,792		2,792
Municipal Emergency Services, Inc. - Unfunded Term Loan B (8)	12/16/2024	Distribution		—		—	966		—		—
Municipal Emergency Services, Inc. - Unfunded Term Loan 3rd Amendment (8)	09/28/2027	Distribution		—		—	500		—		5
Municipal Emergency Services, Inc. - Revolver (8)	09/28/2027	Distribution		—		—	1,880		—		—
NBH Group LLC - Revolver (8)	08/19/2026	Healthcare, Education and Childcare		—		—	1,163		—		(35	)
NFS - CFP Holdings LLC	09/13/2030	Business Services	9.56%		3M SOFR+475		18,000		17,866		17,865
NFS - CFP Holdings LLC - Unfunded Term Loan (8)	09/13/2026	Business Services		—		—	6,630		—		—
NFS - CFP Holdings LLC - Unfunded Revolver (8)	09/13/2030	Business Services		—		—	2,486		—		—
NORA Acquisition, LLC	08/31/2029	Healthcare, Education and Childcare	10.95%		3M SOFR+635		5,445		5,348		5,445
NORA Acquisition, LLC - Revolver (8)	08/31/2029	Healthcare, Education and Childcare		—		—	2,707		—		—
NP Riverhead Industrial, LLC	05/24/2025	Buildings and Real Estate	14.50%			—	5,000		4,984		4,975
Omnia Exterior Solutions, LLC	12/29/2029	Diversified Conglomerate Service	10.10%		3M SOFR+550		4,888		4,840		4,814
Omnia Exterior Solutions, LLC - Unfunded Term Loan 1 (8)	12/30/2024	Diversified Conglomerate Service		—		—	3,499		—		(22	)
Omnia Exterior Solutions, LLC - Unfunded Term Loan 2 (8)	09/30/2026	Diversified Conglomerate Service		—		—	5,598		—		(35	)
Omnia Exterior Solutions, LLC - Revolver (8)	12/29/2029	Diversified Conglomerate Service		—		—	2,100		—		(31	)
ORL Acquisition, Inc.	09/03/2027	Business Services	14.00%		3M SOFR+940		4,245		4,198		3,608
			(PIK 7.50%)
ORL Acquisition, Inc. - Revolver (8)	09/03/2027	Business Services		—		—	149		—		(22	)
OSP Embedded Purchaser, LLC	12/15/2029	Aerospace and Defense	10.70%		3M SOFR+610		6,451		6,345		6,264
OSP Embedded Purchaser, LLC - Revolver (8)	12/15/2029	Aerospace and Defense		—		—	1,477		—		(43	)
Ox Two, LLC	05/18/2026	Building Materials	11.12%		3M SOFR+651		8,460		8,403		8,460
Ox Two, LLC - Revolver (8)	05/18/2026	Building Materials		—		—	2,419		—		—
Pacific Purchaser, LLC - Unfunded Term Loan (8)	09/30/2028	Business Services		—		—	2,747		—		36
Pacific Purchaser, LLC - Revolver (8)	09/30/2028	Business Services		—		—	1,373		—		(3	)
PAR Excellence Holdings, Inc.	09/03/2030	Healthcare, Education and Childcare	9.77%		3M SOFR+475		10,000		9,901		9,900
PAR Excellence Holdings, Inc. - Unfunded Revolver (8)	09/03/2030	Healthcare, Education and Childcare		—		—	2,681		—		—
PCS MIDCO INC	03/01/2030	Financial Services	10.81%		1M SOFR+575		467		462		467
PCS MIDCO INC - Unfunded Term Loan (8)	03/01/2026	Financial Services		—		—	3,955		—		40
PCS MIDCO INC - Funded Revolver	03/01/2030	Financial Services	10.81%		1M SOFR+575		308		308		308
PCS MIDCO INC - Unfunded Revolver (8)	03/01/2030	Financial Services		—		—	1,454		—		—
PlayPower, Inc.	08/28/2030	Manufacturing/Basic Industry	9.85%		3M SOFR+525		12,000		11,912		11,820
PlayPower, Inc. - Unfunded Revolver (8)	08/28/2030	Manufacturing/Basic Industry		—		—	2,570		—		(39	)
PL Acquisitionco, LLC - Revolver (8)	11/09/2027	Retail		—		—	3,236		—		(647	)
Pragmatic Institute, LLC (7)	07/06/2028	Business Services	12.09%		3M SOFR+750		37,241		36,054		22,810
			(PIK 12.09%)
Pragmatic Institute, LLC - Revolver (7)	07/06/2028	Business Services	12.09%		3M SOFR+750		5,154		5,041		3,157
			(PIK 12.09%)
Quantic Electronics, LLC	11/19/2026	Aerospace and Defense	10.95%		3M SOFR+635		1,468		1,461		1,461
Quantic Electronics, LLC - Funded Revolver	08/17/2026	Aerospace and Defense	10.95%		3M SOFR+635		264		264		263
Quantic Electronics, LLC - Unfunded Revolver (8)	08/17/2026	Aerospace and Defense		—		—	264		—		(1	)
Radius Aerospace, Inc. - Revolver	03/31/2025	Aerospace and Defense	11.10%		3M SOFR+615		817		817		800
Radius Aerospace, Inc. - Unfunded Revolver (8)	03/31/2025	Aerospace and Defense		—		—	1,411		—		(28	)
Rancho Health MSO, Inc.	12/18/2025	Healthcare, Education and Childcare	10.90%		3M SOFR+560		360		360		360
Rancho Health MSO, Inc. - Unfunded Term Loan (8)	12/18/2025	Healthcare, Education and Childcare		—		—	210		—		—
Rancho Health MSO, Inc. - Unfunded Term Loan 2 (8)	06/30/2025	Healthcare, Education and Childcare		—		—	1,500		—		15
Rancho Health MSO, Inc. - Revolver	12/18/2025	Healthcare, Education and Childcare	10.93%		3M SOFR+560		210		210		210
Rancho Health MSO, Inc. - Unfunded Revolver (8)	12/18/2025	Healthcare, Education and Childcare		—		—	315		—		—

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)			Cost		Fair Value (3)
Reception Purchaser, LLC	02/28/2028	Transportation	10.75%		3M SOFR+615		10,763	$	9,638	$	8,072
Recteq, LLC - Revolver (8)	01/29/2026	Consumer Products		—		—	1,127		—		(11	)
Riverpoint Medical, LLC - Revolver	06/20/2025	Healthcare, Education and Childcare	10.10%		3M SOFR+535		53		53		53
Riverpoint Medical, LLC - Unfunded Revolver (8)	06/20/2025	Healthcare, Education and Childcare		—		—	310		—		—
RRA Corporate, LLC	08/15/2029	Business Services	9.60%		3M SOFR+500		4,000		3,960		3,960
RRA Corporate, LLC - Unfunded Term Loan 1 (8)	02/15/2025	Business Services		—		—	5,394		—		—
RRA Corporate, LLC - Unfunded Term Loan 2 (8)	08/15/2026	Business Services		—		—	10,181		—		—
RRA Corporate, LLC - Funded Revolver	08/15/2029	Business Services	9.60%		3M SOFR+500		661		661		655
RRA Corporate, LLC - Unfunded Revolver (8)	08/15/2029	Business Services		—		—	2,487		—		(25	)
RTIC Subsidiary Holdings, LLC	05/03/2029	Consumer Products	10.35%		3M SOFR+575		9,975		9,827		9,776
RTIC Subsidiary Holdings, LLC - Unfunded Revolver (8)	05/03/2029	Consumer Products		—		—	5,422		—		(108	)
Rural Sourcing Holdings, Inc.	06/15/2029	Business Services	10.35%		3M SOFR+575		1,140		1,124		1,126
Rural Sourcing Holdings, Inc. - Unfunded Term Loan (8)	06/27/2026	Business Services		—		—	1,146		—		(9	)
Rural Sourcing Holdings, Inc. - Revolver (8)	06/15/2029	Business Services		—		—	860		—		(11	)
S101 Holdings, Inc.	12/29/2026	Electronics	11.48%		3M SOFR+615		355		351		351
S101 Holdings, Inc. - Unfunded Term Loan 2 (8)	12/15/2024	Electronics		—		—	4,955		—		—
Safe Haven Defense US LLC - Term Loan	05/23/2029	Building Materials	9.85%		3M SOFR+525		8,976		8,843		8,886
Safe Haven Defense US LLC - Unfunded Revolver (8)	05/23/2029	Building Materials		—		—	1,114		—		(11	)
Sales Benchmark Index LLC - Revolver (8)	01/03/2025	Business Services		—		—	732		—		—
Sargent & Greenleaf Inc. - Revolver	12/20/2024	Electronics	11.87%		3M SOFR+660		610		610		610
			(PIK 1.00%)
Sargent & Greenleaf Inc. - Unfunded Revolver (8)	12/20/2024	Electronics		—		—	4		—		—
Schlesinger Global, Inc.	07/14/2025	Business Services	7.60%		3M SOFR+275		4,870		4,851		4,748
			(PIK 5.60%)
Schlesinger Global, Inc. - Revolver	07/14/2025	Business Services	7.60%		3M SOFR+275		32		32		31
			(PIK 5.60%)
Schlesinger Global, Inc. - Unfunded Revolver (8)	07/14/2025	Business Services		—		—	7		—		—
Seaway Buyer, LLC	06/13/2029	Chemicals, Plastics and Rubber	10.75%		3M SOFR+615		4,704		4,650		4,539
Seaway Buyer, LLC - Revolver	06/13/2029	Chemicals, Plastics and Rubber	10.75%		3M SOFR+615		313		313		302
Seaway Buyer, LLC - Unfunded Revolver (8)	06/13/2029	Chemicals, Plastics and Rubber		—		—	2,814		—		(98	)
Shiftkey, LLC	06/21/2027	Business Services	10.62%		3M SOFR+601		17,595		17,478		16,838
Sigma Defense Systems, LLC	12/18/2027	Telecommunications	11.50%		1M SOFR+690		25,785		25,251		25,528
Sigma Defense Systems, LLC - Unfunded Revolver (8)	12/18/2027	Telecommunications		—		—	3,685		—		(37	)
Simplicity Financial Marketing Group Holdings Inc.	12/02/2026	Financial Services	10.88%		3M SOFR+640		4,065		4,054		4,106
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Term Loan (8)	02/09/2026	Financial Services		—		—	4,656		—		93
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Revolver (8)	12/02/2026	Financial Services		—		—	1,043		—		—
Smartronix, LLC - Unfunded Revolver (8)	11/23/2027	Aerospace and Defense		—		—	3,941		—		—
Solutionreach, Inc. - Unfunded Revolver (8)	07/17/2025	Communications		—		—	833		—		—
Spendmend Holdings LLC	03/01/2028	Business Services	10.25%		3M SOFR+565		432		430		432
Spendmend Holdings LLC - Unfunded Term Loan (8)	03/01/2025	Business Services		—		—	2,348		—		18
Spendmend Holdings LLC - Revolver	03/01/2028	Business Services	10.25%		3M SOFR+565		561		561		561
Spendmend Holdings LLC - Unfunded Revolver (8)	03/01/2028	Business Services		—		—	841		—		—
System Planning and Analysis, Inc.	08/16/2027	Aerospace and Defense	10.26%		3M SOFR+585		1,283		1,274		1,280
System Planning and Analysis, Inc. - Unfunded Term Loan (8)	08/16/2027	Aerospace and Defense		—		—	7,068		—		39
System Planning and Analysis, Inc. - Funded Revolver	08/16/2027	Aerospace and Defense	9.59%		3M SOFR+515		921		921		919
System Planning and Analysis, Inc. - Unfunded Revolver (8)	08/16/2027	Aerospace and Defense		—		—	3,795		—		(8	)
TCG 3.0 Jogger Acquisitionco, Inc.	01/26/2029	Media	11.10%		3M SOFR+650		8,955		8,814		8,865
TCG 3.0 Jogger Acquisitionco, Inc. - Unfunded Revolver (8)	01/26/2029	Media		—		—	1,725		—		(17	)
The Bluebird Group LLC - Revolver (8)	07/27/2026	Business Services		—		—	734		—		—
The Vertex Companies, LLC	08/30/2027	Business Services	11.27%		3M SOFR+635		184		181		185
The Vertex Companies, LLC - Revolver	08/30/2027	Business Services	10.95%		3M SOFR+610		305		305		305
The Vertex Companies, LLC - Unfunded Revolver (8)	08/30/2027	Business Services		—		—	435		—		—

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)			Cost		Fair Value (3)
TPCN Midco, LLC	06/26/2029	Diversified Conglomerate Service	10.35%		3M SOFR+575		3,990	$	3,931	$	3,894
TPCN Midco, LLC - Unfunded Term Loan (8)	06/26/2026	Diversified Conglomerate Service		—		—	5,894		—		(83	)
TPCN Midco, LLC - Unfunded Revolver (8)	06/26/2029	Diversified Conglomerate Service		—		—	1,160		—		(28	)
TransGo, LLC	12/29/2028	Machinery	10.60%		3M SOFR+575		4,638		4,573		4,638
TransGo, LLC - Revolver (8)	12/29/2028	Machinery		—		—	2,775		—		—
TWS Acquisition Corporation	06/16/2025	Education	11.33%		3M SOFR+640		1,301		1,299		1,301
TWS Acquisition Corporation - Revolver (8)	06/16/2025	Education		—		—	1,644		—		—
Urology Management Holdings, Inc.	06/15/2027	Healthcare, Education and Childcare	10.66%		3M SOFR+550		576		573		570
Urology Management Holdings, Inc. - Unfunded Term Loan A (8)	09/03/2026	Healthcare, Education and Childcare		—		—	2,000		—		(10	)
Watchtower Intermediate, LLC	12/01/2029	Electronics	10.60%		3M SOFR+600		7,301		7,201		7,228
Watchtower Intermediate, LLC. - Unfunded Term Loan (8)	12/01/2025	Electronics		—		—	2,100		—		3
Watchtower Intermediate, LLC. - Revolver (8)	12/01/2029	Electronics		—		—	6,300		—		(63	)
Wildcat Buyerco, Inc.	02/27/2027	Electronics	10.60%		3M SOFR+575		4,585		4,551		4,585
Wildcat Buyerco, Inc. - Unfunded Term Loan (8)	02/27/2027	Electronics		—		—	2,737		—		27
Wildcat Buyerco, Inc. - Revolver (8)	02/27/2027	Electronics		—		—	551		—		—
Zips Car Wash, LLC	12/31/2024	Auto Sector	12.46%		3M SOFR+740		2,590		2,586		2,473
			(PIK 1.5%)
Total First Lien Secured Debt									579,813		557,686
Second Lien Secured Debt - 13.6% of Net Assets
Best Practice Associates LLC	06/29/2027	Aerospace and Defense	13.95%		3M SOFR+915		17,825		17,606		17,647
Burgess Point Purchaser Corporation	07/28/2030	Auto Sector	14.19%		3M SOFR+910		8,000		7,698		8,000
ENC Parent Corporation - Second Lien	08/19/2029	Business Services	12.37%		3M SOFR+776		7,500		7,444		6,225
Halo Buyer, Inc.	07/06/2026	Consumer Products	13.20%		1M SOFR+835		32,500		32,299		31,931
Team Services Group, LLC	12/18/2028	Healthcare, Education and Childcare	14.51%		3M SOFR+926		3,429		3,422		3,377
Total Second Lien Secured Debt									68,469		67,180
Subordinate Debt/Corporate Notes - 8.8% of Net Assets
Beacon Behavioral Holdings LLC	06/21/2030	Healthcare, Education and Childcare	15.00%			—	3,235		3,189		3,187
			(PIK 15.00%)
Express Wash Acquisition Company, LLC	01/15/2029	Auto Sector	16.37%		3M SOFR+1226		24,284		23,710		24,138
			(PIK 16.37%)
Northwinds Topco, Inc.	10/30/2029	Consumer Services	15.00%			—	7,123		7,020		6,944
			(PIK 15.00%)
Northwinds Topco, Inc. - Unfunded Term Loan (8)	10/30/2029	Consumer Services		—		—	7,000		—		(175	)
ORL Holdco, Inc. - Convertible Notes	03/08/2028	Business Services	18.00%			—	6		6		4
ORL Holdco, Inc. - Unfunded Convertible Notes (8)	03/08/2028	Business Services		—		—	6		—		(2	)
Schlesinger Global, LLC - Promissory Note	01/08/2026	Business Services	12.33%		3M SOFR+700		1		1		3
			(PIK 11.85%)
StoicLane, Inc. - Convertible Notes	08/15/2027	Healthcare, Education and Childcare	12.00%			—	612		612		612
StoicLane, Inc. - Unfunded Convertible Notes (8)	08/15/2027	Healthcare, Education and Childcare		—		—	612		—		—
United Land Services Intermediate Parent Holdings, LLC	12/23/2026	Environmental Services	14.25%			—	9,300		9,120		9,021
			(PIK 14.25%)
United Land Services Intermediate Parent Holdings, LLC - Unfunded Term Loan (8)	07/12/2025	Environmental Services		—		—	9,000		—		(135	)
Total Subordinate Debt									43,658		43,597
Preferred Equity/Partnership Interests - 3.5% of Net Assets (6)
Accounting Platform Blocker, Inc. - Preferred Equity		Financial Services		—		—	356,200		356		356
Ad.net Holdings, Inc.		Media		—		—	2,400		240		304
AFC Acquisitions, Inc. Preferred Equity (10)		Distribution		—		—	507		780		831
AH Newco Holdings, LLC		Healthcare, Education and Childcare	6.00%			—	211		500		896
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (10)		Media		—		—	1,135		1,135		1,293
BioDerm Holdings, LP (Preferred)		Healthcare, Education and Childcare		—		—	1,312		1,312		1,178
Cartessa Aesthetics, LLC (10)		Distribution		—		—	3,562,500		3,563		6,343
C5MI Holdco, LLC - Preferred Equity (10)		Business Services		—		—	104,000		104		106
Gauge Schlesinger Coinvest, LLC - Class A-2 Preferred Equity		Business Services		—		—	1		1		1
EvAL Home Health Solutions, LLC - Preferred Equity (10)		Healthcare, Education and Childcare		—		—	272,771		453		508
Hancock Claims Consultants Investors, LLC - Class A Preferred Equity (10)		Insurance		—		—	116,588		76		149
Imagine Topco, LP Preferred		Business Services	8.00%			—	743,826		744		862

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Industry				Cost		Fair Value (3)
Magnolia Topco LP - Class A Preferred Equity (10)	Auto Sector	—	—	1,545	$	1,545	$	1,592
Magnolia Topco LP - Class B Preferred Equity (10)	Auto Sector	—	—	1,018		643		—
Megawatt Acquisition Partners, LLC - Preferred A	Electronics	—	—	5,349		535		481
NXOF Holdings, Inc. (Tyto Athene, LLC)	Aerospace and Defense	—	—	422		422		572
ORL Holdco, Inc.	Business Services	—	—	575		57		8
PL Acquisitionco, LLC - Preferred Equity	Retail	—	—	37		37		—
RTIC Parent Holdings, LLC - Class A Preferred Equity (10)	Consumer Products	—	—	5		5		—
RTIC Parent Holdings, LLC - Class C Preferred Equity (10)	Consumer Products	—	—	10,624		699		1,138
RTIC Parent Holdings, LLC - Class D Preferred Equity (10)	Consumer Products	—	—	11,276		113		125
TPC Holding Company, LP	Food	—	—	219		219		354
TWD Parent Holdings, LLC Preferred	Business Services	—	—	30		30		35
Total Preferred Equity/Partnership Interests						13,569		17,132
Common Equity/Partnership Interests/Warrants - 25.3% of Net Assets (6)
A1 Garage Equity, LLC (10)	Personal, Food and Miscellaneous Services	—	—	2,193,038		2,193		2,767
ACP Big Top Holdings, L.P. - Common Equity	Manufacturing/Basic Industry	—	—	773,800		774		932
Ad.net Holdings, Inc.	Media	—	—	2,667		27		1
Aechelon InvestCo, LP - Common Equity	Aerospace and Defense	—	—	11,312		1,131		1,131
Aechelon InvestCo, LP - Unfunded (8)	Aerospace and Defense	—	—	11,312		—		—
Aftermarket Drivetrain Products Holdings, LLC	Machinery	—	—	1,645		1,645		2,304
AG Investco LP (10)	Business Services	—	—	805,164		805		1,008
AG Investco LP - Unfunded (8),(10)	Business Services	—	—	194,836		—		—
Altamira Intermediate Company II, Inc.	Aerospace and Defense	—	—	125,000		125		151
AMCSI Crash Co-Invest, LP	Auto Sector	—	—	2,489,777		2,490		3,737
AMCSI Crash Co-Invest, LP - Unfunded (8)	Auto Sector	—	—	510,223		—		—
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (10)	Media	—	—	1,135		—		—
Athletico Holdings, LLC (10)	Healthcare, Education and Childcare	—	—	9,357		10,000		7,674
Atlas Investment Aggregator, LLC	Telecommunications	—	—	1,700,000		1,613		—
BioDerm, Inc.	Healthcare, Education and Childcare	—	—	1,312		—		—
Burgess Point Holdings, LP	Auto Sector	—	—	764		777		812
Carnegie Holdco, LLC - Common Equity (10)	Education	—	—	1,680,300		1,645		1,630
Carisk Parent, L.P. - Common Equity	Healthcare, Education and Childcare	—	—	204,455		204		211
Connatix Parent, LLC	Media	—	—	57,416		632		355
Consello Pacific Aggregator, LLC (10)	Business Services	—	—	782,891		743		703
Cowboy Parent LLC	Distribution	—	—	27,778		3,015		5,809
Crane 1 Acquisition Parent Holdings, L.P.	Personal, Food and Miscellaneous Services	—	—	113		104		190
C5MI Holdco, LLC - Common Equity (10)	Business Services	—	—	754,200		754		752
Delta InvestCo LP (10)	Telecommunications	—	—	913,649		866		1,703
Delta InvestCo LP (8),(10)	Telecommunications	—	—	227,395		—		—
Duggal Acquisition, LLC (Common)	Marketing Services	—	—	313,600		314		314
eCommission Holding Corporation (12)	Financial Services	—	—	80		949		2,554
EDS Topco, LP	Aerospace and Defense	—	—	937,500		938		1,047
Exigo, LLC	Business Services	—	—	1,458,333		1,458		1,577
FedHC InvestCo LP (10)	Aerospace and Defense	—	—	14,578		489		1,193
FedHC InvestCo LP - Unfunded (8),(10)	Aerospace and Defense	—	—	5,150		—		—
FedHC InvestCo II LP (10)	Aerospace and Defense	—	—	20,882		2,175		1,814
Five Star Parent Holdings, LLC	Leisure, Amusement, Motion Pictures, Entertainment	—	—	655,714		656		647
Gauge ETE Blocker, LLC - Common Equity	Personal, Food and Miscellaneous Services	—	—	374,444		374		285
Gauge Lash Coinvest LLC	Consumer Products	—	—	1,101,293		834		3,201
Gauge Loving Tan, LP - Common Equity	Consumer Products	—	—	543,562		544		598
Gauge Schlesinger Coinvest, LLC	Business Services	—	—	9		10		5
GCOM InvestCo LP	Business Services	—	—	2,434		1,003		578
GGG MIDCO, LLC (Common) (10)	Home and Office Furnishings, Housewares and Durable Consumer Products	—	—	1,222,700		1,223		1,223
GMP Hills, LP - Common Equity	Distribution	—	—	3,747,470		3,747		3,673
Hancock Claims Consultants Investors, LLC (10)	Insurance	—	—	450,000		450		275
HPA SPQ Aggregator LP- Common Equity	Business Services	—	—	750,399		750		842
HV Watterson Holdings, LLC	Business Services	—	—	1,600,000		1,600		252
Icon Partners V C, L.P.	Business Services	—	—	1,122,549		1,123		1,123
Icon Partners V C, L.P. - Unfunded (8)	Business Services	—	—	377,451		—		—
IHS Parent Holdings, L.P.	Personal, Food and Miscellaneous Services	—	—	1,218,045		1,218		1,535
Imagine Topco, LP	Business Services	—	—	743,826		—		—
Infogroup Parent Holdings, Inc.	Other Media	—	—	181,495		2,040		2,711
Ironclad Holdco, LLC (Applied Technical Services, LLC)	Environmental Services	—	—	4,993		525		776
ITC Infusion Co-invest, LP (10)	Healthcare, Education and Childcare	—	—	162,445		1,645		2,443
Kinetic Purchaser, LLC	Consumer Products	—	—	1,308,814		1,309		1,498
KL Stockton Co-Invest LP (Any Hour Services) (10)	Personal, Food and Miscellaneous Services	—	—	382,353		385		884
LEP Pequod Holdings, LP	Financial Services	—	—	350		865		1,004
Lightspeed Investment Holdco LLC	Healthcare, Education and Childcare	—	—	273,143		273		988
LJ Avalon, LP	Environmental Services	—	—	851,087		851		1,038
Lorient Peregrine Investments, LP	Business Services	—	—	335,590		4,530		4,453
Magnolia Topco LP - Class A (10)	Auto Sector	—	—	1,545,460		—		—
Magnolia Topco LP - Class B (10)	Auto Sector	—	—	1,017,840		—		—
MDI Aggregator, LP	Chemicals, Plastics and Rubber	—	—	30,993		3,103		3,599
Meadowlark Title, LLC (10)	Business Services	—	—	815,385		802		—
Megawatt Acquisition Partners, LLC - Common Equity A	Electronics	—	—	594		59		48
Municipal Emergency Services, Inc.	Distribution	—	—	3,920,145		3,984		6,272

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon				Cost		Fair Value (3)
NEPRT Parent Holdings, LLC (Recteq, LLC) (10)		Consumer Products		—	—	1,299	$	1,250	$	87
New Insight Holdings, Inc. - Common Equity		Business Services		—	—	1,157		20		20
New Medina Health, LLC (10)		Healthcare, Education and Childcare		—	—	1,429,480		1,429		2,231
NFS - CFP Holdings LLC - Common Equity		Business Services		—	—	662,983		663		663
NORA Parent Holdings, LLC (10)		Healthcare, Education and Childcare		—	—	1,257		1,248		1,115
North Haven Saints Equity Holdings, LP (10)		Business Services		—	—	351,553		352		380
Northwinds Services Group, LLC - Common Equity		Consumer Services		—	—	840,000		1,680		1,680
NXOF Holdings, Inc.		Aerospace and Defense		—	—	8,188		108		—
OceanSound Discovery Equity, LP (Holdco Sands Intermediate, LLC) (10)		Aerospace and Defense		—	—	98,286		983		997
OES Co-Invest, LP Class A Common Equity		Diversified Conglomerate Service		—	—	840		847		937
OHCP V BC COI, L.P.		Distribution		—	—	694,943		695		443
OHCP V BC COI, L.P. - Unfunded (8)		Distribution		—	—	55,057		—		(20	)
ORL Holdco, Inc.		Business Services		—	—	638		6		—
OSP Embedded Aggregator, LP		Aerospace and Defense		—	—	870,536		871		553
PAR Excellence Holdings, Inc. - Common Equity		Healthcare, Education and Childcare		—	—	1,087,000		1,087		1,087
PCS Parent, LP		Financial Services		—	—	421,304		421		442
PennantPark-TSO Senior Loan Fund II, LP (12)		Financial Services		—	—	8,115,794		8,116		8,126
Pink Lily Holdco, LLC (10)		Retail		—	—	1,044		1,044		—
Pragmatic Institute, LLC		Business Services		—	—	1,918,047		1,918		—
Quad (U.S.) Co-Invest, L.P.		Business Services		—	—	2,958,706		2,959		3,780
QuantiTech InvestCo LP (10)		Aerospace and Defense		—	—	700		—		172
QuantiTech InvestCo LP - Unfunded (8), (10)		Aerospace and Defense		—	—	955		—		—
QuantiTech InvestCo II LP (10)		Aerospace and Defense		—	—	40		14		12
RFMG Parent, LP		Healthcare, Education and Childcare		—	—	1,050,000		1,050		1,309
Safe Haven Defense MidCo, LLC (10)		Building Materials		—	—	227		227		247
SBI Holdings Investments LLC		Business Services		—	—	36,585		366		406
Seaway Topco, LP		Chemicals, Plastics and Rubber		—	—	2,981		2,981		2,006
SP L2 Holdings, LLC		Consumer Products		—	—	881,966		882		35
SSC Dominion Holdings, LLC		Electronics		—	—	36		36		4,154
StellPen Holdings, LLC		Media		—	—	153,846		154		134
SV Aero Holdings, LLC (10)		Aerospace and Defense		—	—	25		218		472
TAC LifePort Holdings, LLC (10)		Aerospace and Defense		—	—	254,206		239		388
TCG 3.0 Jogger Co-Invest, LP - Common Equity		Media		—	—	6,475		1,252		965
Tower Arch Infolinks Media, LP (10)		Media		—	—	542,000		251		819
Tower Arch Infolinks Media, LP - Unfunded (8), (10)		Media		—	—	353,444		—		—
TPC Holding Company, LP		Food		—	—	11,527		12		61
TPCN Holdings, LLC - Common Equity (10)		Diversified Conglomerate Service		—	—	473,400		473		388
TWD Parent Holdings, LLC		Business Services		—	—	608		1		6
United Land Services Holdings LLC - Common Equity		Environmental Services		—	—	184,049		600		600
UniVista Insurance (10)		Business Services		—	—	400		334		844
Urology Partners Co., L.P.		Healthcare, Education and Childcare		—	—	1,111,111		1,111		1,184
Watchtower Holdings, LLC (10)		Electronics		—	—	12,419		1,242		1,292
WCP Ivyrehab Coinvestment, LP (10)		Healthcare, Education and Childcare		—	—	208		208		221
WCP Ivyrehab QP CF Feeder, LP (10)		Healthcare, Education and Childcare		—	—	3,754		3,793		3,987
WCP Ivyrehab QP CF Feeder, LP - Unfunded (8), (10)		Healthcare, Education and Childcare		—	—	246		—		—
Wildcat Parent, LP		Electronics		—	—	2,314		98		843
Kentucky Racing Holdco, LLC (Warrants) (10)		Hotels, Motels, Inns and Gaming		—	—	161,252		—		1,711
Total Common Equity/Partnership Interests/Warrants								111,008		125,097
US Government Securities - 20.2% of Net Assets
U.S. Treasury Bill (5)	10/29/2024	Short-Term U.S. Government Securities	4.72%		—	100,000		99,652		99,632
Total US Government Securities								99,652		99,632
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies								916,168		910,323
Investments in Non-Controlled, Affiliated Portfolio Companies - 6.8% of Net Assets (1), (2)
First Lien Secured Debt - 0.8%
Walker Edison Furniture Company LLC (11)	03/01/2029	Home and Office Furnishings		—	—	10,877		10,054		979
Walker Edison Furniture Company, LLC - Unfunded Term Loan (11), (8)	03/01/2029	Home and Office Furnishings		—	—	167		—		(152	)
Walker Edison Furniture Company LLC - Junior Revolver (11)	03/01/2029	Home and Office Furnishings		—	—	3,333		3,333		3,333
Total First Lien Secured Debt								13,387		4,160
Preferred Equity/Partnership Interests - 5.9% of Net Assets (6)
Cascade Environmental Holdings, LLC (Preferred)		Environmental Services		—	—	5,887,236		32,791		27,931
Cascade Environmental Holdings, LLC - Series B		Environmental Services		—	—	918		918		1,331
Total Preferred Equity/Partnership Interests								33,709		29,262

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

September 30, 2024

(In thousands, except share data)

Issuer Name	Maturity	Industry	Current Coupon		Basis Point Spread Above Index (4)				Fair Value (3)
Common Equity/Partnership Interests/Warrants - 0.0% of Net Assets (6)
Cascade Environmental Holdings, LLC		Environmental Services		—		—	7,444,347	2,852		—
Walker Edison Furniture		Home and Office Furnishings		—		—	72,917	6,786		—
Total Common Equity/Partnership Interests/Warrants								9,638		—
Total Investments in Non-Controlled, Affiliated Portfolio Companies								56,734		33,423
Investments in Controlled, Affiliated Portfolio Companies - 77.8% (1), (2)
First Lien Secured Debt - 21.5% of Net Assets
AKW Holdings Limited (GBP) (9), (12)	03/15/2027	Healthcare, Education and Childcare	12.16%		3M SOFR+700		42,457	58,075		56,950
			(PIK 5.47%)
JF Holdings Corp.	07/31/2026	Distribution	11.30%		3M SOFR+605		49,625	49,114		49,129
Total First Lien Secured Debt								107,189		106,079
Subordinated Debt - 28.0% of Net Assets
Flock Financial, LLC (12)	10/19/2027	Financial Services	14.50%			—	22,208	22,208		22,208
			(PIK 14.50%)
PennantPark Senior Loan Fund, LLC (12)	07/31/2027	Financial Services	13.25%		3M SOFR+800		115,886	115,886		115,886
Total Subordinated Debt								138,094		138,094
Preferred Equity - 5.4% of Net Assets (6)
Flock Financial Class A Preferred Equity (12)		Financial Services		—		—	2,047,727	7,313		7,313
Flock Financial Class B Preferred Equity (12)		Financial Services		—		—	5,409,091	19,318		19,318
Total Preferred Equity								26,631		26,631
Common Equity - 23.0% of Net Assets (6)
AKW Holdings Limited - Common Equity (9), (12)		Healthcare, Education and Childcare		—		—	950	132		3,848
JF Intermediate, LLC		Distribution		—		—	43,918	4,488		41,729
PennantPark Senior Loan Fund, LLC (12)		Financial Services		—		—	67,373,319	67,436		67,923
Total Common Equity								72,056		113,500
Total Investments in Controlled, Affiliated Portfolio Companies								343,970		384,304
Total Investments - 268.9% of Net Assets (13), (14)								1,316,872		1,328,050
Cash and Cash Equivalents - 10.1% of Net Assets
BlackRock Federal FD Institutional 81 (Money Market Fund)			5.03%					38,769		38,769
Non-Money Market Cash								11,064		11,092
Total Cash and Cash Equivalents								49,833		49,861
Total Investments and Cash Equivalents - 279.0%								1,366,705	$	1,377,911
Liabilities in Excess of Other Assets - (179.0)%										(884,003	)
Net Assets - 100%									$	493,908

All values are in British Pounds.

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.
The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities (See Note 6).
Valued based on our accounting policy (See Note 2).
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or “SOFR”, or Prime rate, or “P, or Sterling Overnight Index Average, or “SONIA.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 90-day or 180-daySOFR rates (1-month S, 3-month S, or 6-month S, respectively) at the borrower’s option. SONIA loans are typically indexed daily for GBP loans with a quarterly frequency payment. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes payment-in-kind ("PIK") interest and other fee rates, if any.
The security was valued by using the pricing service which utilize broker-supplied prices.
Non-income producing securities.
Partial non-accrual PIK securities.
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
Non-U.S. company or principal place of business is located in The Isle of Man. Total cost, fair value, and percentage of Net Assets for the Isle of Man was $58.2 million, $60.8 million, and 12.3%.
Investment is held through our Taxable Subsidiary (See Note 1).
Non-accrual security.
The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2024, qualifying assets represent 78% of the Company’s total assets and non-qualifying assets represent 22% of the Company’s total assets.
All investments are in US Companies unless noted otherwise. Total cost, fair value, and percentage of Net Assets for the U.S. Companies were $1,258.7 million, $1,281.7 million, and 259.5%
All of our investments are not registered under the 1933 Act and have restrictions on resale.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

1. ORGANIZATION

PennantPark Investment Corporation was organized as a Maryland corporation in January 2007. We are a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. Our investment objective is to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments. We invest primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and, to a lesser extent, equity investments. On April 24, 2007, we closed our initial public offering. On April 14, 2022, listing and trading of the Company's common stock commenced on the New York Stock Exchange after the Company voluntarily withdrew the principal listing of its common stock from the Nasdaq Stock Market LLC effective at market close on April 13, 2022. Our common stock trades on the New York Stock Exchange under the symbol “PNNT.”

We have entered into an investment management agreement, (the "Investment Management Agreement"), with PennantPark Investment Advisors, LLC (the "Investment Adviser"), an external adviser that manages our day-to-day operations. We have also entered into an administration agreement, (the "Administration Agreement"), with PennantPark Investment Administrator LLC (the "Administrator"), which provides the administrative services necessary for us to operate. PennantPark Investment, through the Administrator, also provided similar services to SBIC II under a separate administration agreement.

In April 2021, we issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is

paid semi-annually on May 1 and November 1 of each year, at a rate of 4.50% per year, commencing November 1, 2021. The effective interest rate is

4.62

%. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

In October 2021, we issued $165.0 million in aggregate principal amount of our 2026 Notes-2 at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.00% per year, commencing May 1, 2022. The effective interest rate is

4.12

%. The 2026 Notes-2 mature on November 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes-2 are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes-2 are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes-2 on any securities exchange or automated dealer quotation system.

In January 2022, we funded PennantPark-TSO Senior Loan Fund II LP, ("PTSF II"), an unconsolidated limited partnership, organized as a Delaware limited liability partnership. We sold $82.3 million in investments to a wholly-owned subsidiary of PTSF II in exchange for cash in the amount of $75.7 million and an $6.6 million equity interest in PTSF II representing 23.1% of the total outstanding Class A Units of PTSF II. We recognized $0.2 million of realized gain upon the formation of PTSF II. As of September 30, 2025, our capital commitment of $15.0 million is 100% funded and we hold 23.1% of the total outstanding Class A Units of PTSF II and a 4.99% voting interest in the general partner which manages PTSF II.

We are operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and the Investment Adviser intends to continue to affirm the exclusion on an annual basis, and therefore, is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.

2. SIGNIFICANT ACCOUNTING POLICIES

The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies and any other parameters used in determining these estimates and assumptions could cause actual results to differ from such estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions in consolidation. References to the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Codification, as amended, or ASC, serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Our Consolidated Financial Statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, we have provided a Consolidated Statement of Changes in Net Assets in lieu of a Consolidated Statement of Changes in Stockholders’ Equity.

We expect that there may not be readily available market values for many of the investments, which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;
Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management's preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
The audit committee of our board of directors reviews the valuations of the Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and
Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

Security transactions are recorded on a trade-date basis. We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects, as applicable, the change in the fair values of our portfolio investments and the Truist Credit Facility during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, or OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. As of September 30, 2025,we had four portfolio companies on non-accrual, representing 1.3% and 0.1% of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2024, we had two portfolio companies on non-accrual representing 4.1% and 2.3% percent of our overall portfolio on a cost and fair value basis, respectively.

We have complied with the requirements of Subchapter M of the Code and have qualified to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S. federal income tax purposes, we typically do not incur any material federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of an excise tax. Additionally, certain of the Company’s consolidated subsidiaries are subject to federal, state and local income taxes. For the years ended September 30, 2025, 2024, and 2023, we recorded a provision for taxes on net investment income of $2.6 million, $2.6 million and $4.3 million, respectively, which pertains to U.S. federal excise tax.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, the Company’s major tax jurisdiction is federal.

For the years ended September 30, 2025, 2024 and 2023 the Company recognized a provision for taxes of less than $0.1 million, $0.2 million, and $(5.0) million, respectively, on net realized gain on investments by the Taxable Subsidiary. For the years ended September 30, 2025, 2024 and 2023 the Company recognized a provision for taxes of zero, $(0.7) million, and $1.6 million, respectively, on net unrealized gain on investments by the Taxable Subsidiary. The provision for taxes on net realized and unrealized gains on investments is the result of netting (i) the expected tax liability on the gains from the sales of investments which were realized and unrealized during fiscal year ending September 30, 2025 and (ii) the expected tax benefit resulting from the use of loss carryforwards to offset such gains. For the year ended September 30, 2025, 2024 and 2023 the Company recognized a provision for taxes less than $0.1 million, $(0.5) million, and $(3.4) million, respectively, on net realized and unrealized gains on investments by the Taxable Subsidiary.

During the year ended September 30, 2025, 2024 and 2023 the Company paid $0.2 million, zero, and zero million respectively, in federal taxes on realized gains on the sale of investments held by the Taxable Subsidiary. The state and local tax liability of zero as of September 30, 2025 is included under accrued other expenses in the consolidated statement of assets and liabilities.

Because U.S. federal income tax regulations differ from GAAP, distributions characterized in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by our board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains but may also include certain tax-qualified dividends and/or a return of capital.

Capital transactions, in connection with our dividend reinvestment plan or through offerings of our common stock, are recorded when issued and offering costs are charged as a reduction of capital upon issuance of our common stock.

On June 4, 2024, we entered into equity distribution agreements with Truist Securities, Inc. and Keefe, Bruyette & Woods, Inc. (together, the "Equity Distribution Agreements"), as sales agents (each a "Sales Agent" and together, the "Sales Agents") in connection with the sale of shares of our common stock, with an aggregate offering price of up to $100 million under an at-the-market offering ("ATM Program"). We may offer and sell shares of our common stock from time to time through a Sales Agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including, market conditions and the trading price of our common stock. The Investment Adviser may, from time to time, in its sole discretion, pay some or all of the commissions payable under the Equity Distribution Agreements or make additional supplemental payments to ensure that the sales price per share of our common stock in connection with all of the offerings made hereunder will not be less than our current NAV per share. Any such payments made by the Investment Adviser will not be subject to reimbursement by us.

During the year ended September 30, 2024, we issued 71,594 shares of common stock through the ATM Program at an average price of $7.72 per share, raising $0.6 million of net proceeds after commissions to the sales agents and inclusive of proceeds from the Investment Adviser to ensure that all shares were sold at or above NAV, respectively. In connection with the share issuance, we expensed $0.3 million of deferred offering costs incurred related to establishing the ATM Program to additional paid in capital. On April 28, 2025, our registration statement pursuant to which shares were issued under the ATM Program expired.

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

(f) Consolidation

As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, PennantPark Investment will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we have consolidated the results of our SBIC Funds and our Taxable Subsidiary in our Consolidated Financial Statements. We do not consolidate our non-controlling interests in PSLF or PTSF II. See further description of our investment in PSLF in Note 4.

(g) Asset Transfers and Servicing

Asset transfers that do not meet ASC Topic 860, Transfers and Servicing, requirements for sale accounting treatment are reflected in the Consolidated Statements of Assets and Liabilities and the Consolidated Schedules of Investments as investments.

(h) Segment Reporting

In accordance with ASC Topic 280 – Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets. See Note 14 for additional information on the Company’s segment accounting policies.

(i) Recent Accounting Pronouncements

3. AGREEMENTS AND RELATED PARTY TRANSACTIONS

(a) Investment Management Agreement

The Investment Management Agreement with the Investment Adviser was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in May 2025. Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of and provides investment advisory services to us. SBIC II’s investment management agreement had no effect on the management or incentive fees that we pay to the Investment Adviser on a consolidated basis. For providing these services, the Investment Adviser receives a fee from us, consisting of two components— a base management fee and an incentive fee or, collectively, Management Fees.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Base Management Fee

The base management fee is calculated at an annual rate of 1.50% of our “average adjusted gross assets,” which equals our gross assets (exclusive of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. In addition, on November 13, 2018, in connection with our board of directors’ approval of the application of the modified asset coverage requirements under the 1940 Act to the Company, our board of directors also approved an amendment to the Investment Management Agreement reducing the Investment Adviser’s annual base management fee from 1.50% to 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter-end. This amendment became effective on February 5, 2019 with the amendment and restatement of the Investment Management Agreement on April 12, 2019. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For periods prior to January 1, 2018, the base management fee was calculated at an annual rate of 2.00% of our “average adjusted gross assets.” For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser earned base management fees of $16.2 million, $16.7 million, and $16.5 million, respectively, from us.

Incentive Fee

The incentive fee has two parts, as follows:

One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero-coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7.00% annualized). We pay the Investment Adviser an incentive fee with respect to our Pre- Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75%, (2) 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.1212% in any calendar quarter (8.4848% annualized), and (3) 17.5% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1212% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable.

For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser earned $9.8 million, $12.7 million, and $13.9 million, respectively, in incentive fees on net investment income from us.

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and, effective January 1, 2018, equals 17.5% of our realized capital gains, (20.0)% for periods prior to January 1, 2018), if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under the Investment Management Agreement (as described above).

Under GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 17.5% of such amount, less the aggregate amount of actual capital gains related to incentive fees paid in all prior years, if any. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under GAAP.

(b) Administration Agreement

The Administration Agreement with the Administrator was reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in May 2025. Under the Administration Agreement, the Administrator provides administrative services and office facilities to us. The Administrator had provided similar services to SBIC II under its administration agreement with PennantPark Investment. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. The Administrator also offers, on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the years ended September 30, 2025, 2024, and 2023, we recorded $1.4 million, $1.2 million and $1.3 million, respectively, for services described above.

Under the Administration Agreement, the Administrator may be reimbursed by the Company for the costs and expenses to be borne by the Company set forth above include the costs and expenses allocable with respect to the provision of in-house legal, tax, or other professional advice and/or services to the Company, including performing due diligence on its prospective portfolio companies as deemed appropriate by the Administrator, where such in-house personnel perform services that would be paid by the Company if outside service providers provided the same services, subject to the Board's oversight.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

(c) Other Related Party Transactions

The Company, the Investment Adviser and certain other affiliates have been granted an order for exemptive relief by the SEC for the Company to co-invest with other funds managed by the Investment Adviser. If we co-invest with other affiliated funds, our Investment Adviser would not receive compensation except to the extent permitted by the exemptive order and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

There were no transactions subject to Rule 17a-7 under the 1940 Act during each of the years ended September 30, 2025, 2024, and 2023.

For the years ended September 30, 2025, 2024, and 2023, we sold $462.8 million, $308.8 million, and $127.8 million in investments to PSLF at fair value, respectively, and recognized $0.9 million, $0.2 million and $(0.2) million of net realized gain (loss), respectively.

For the years ended September 30, 2025, 2024, and 2023, we sold zero in investments to PTSF II at fair value, respectively, and recognized zero of net realized gains, respectively.

As of September 30, 2025, 2024, and 2023 PNNT had a payable to PSLF and PTSF II of less than zero, $0.1 million and $4.1 million, respectively, presented as a due to affiliates on the consolidated statement of assets and liabilities. These amounts are related to cash owed to PSLF and PTSF II from PNNT in connection with trades between the funds.

As of September 30, 2025, 2024, and 2023, PNNT had a receivable from Administrator of 0.2 million, $0.2 million and zero, respectively, presented as a due from affiliates on the consolidated statement of assets and liabilities. These amounts are related to agency fees collected on behalf of the Company and trades between the funds.

4. INVESTMENTS

Purchases of investments, including PIK interest, for the years ended September 30, 2025, 2024, and 2023 totaled $754.3 million, $784.2 million, and $279.9 million, respectively (excluding U.S. Government Securities). Sales and repayments of investments for years ended September 30, 2025, 2024, and 2023 totaled $810.4 million, $555.4 million, and $418.6 million, respectively (excluding U.S. Government Securities).

Investments and cash and cash equivalents consisted of the following ($ in thousands):

	September 30, 2025				September 30, 2024
Investment Classification ($ in thousands)	Cost		Fair Value		Cost		Fair Value
First lien	$	606,949		582,373	$	700,390	$	667,926
U.S. Government Securities		124,809		124,788		99,652		99,632
Second lien		18,619		18,161		68,470		67,180
Subordinated debt / corporate notes		60,575		60,933		65,865		65,804
Subordinated notes in PSLF		140,287		140,287		115,886		115,886
Equity		203,291		293,218		199,173		243,699
Equity in PSLF		82,358		67,513		67,436		67,923
Total investments		1,236,888		1,287,273		1,316,872		1,328,050
Cash and cash equivalents		51,739		51,783		49,833		49,861
Total investments and cash and cash equivalents	$	1,288,627	$	1,339,056	$	1,366,705	$	1,377,911

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash) in such industries as of:

	September 30, 2025 (1)										September 30, 2024 (1)
Industry Classification	Cost		Fair Value		Fair Value Percentage			Net Asset Value Percentage			Cost		Fair Value		Fair Value Percentage			Net Asset Value Percentage
Business Services	$	195,614	$	184,452		17	%		40	%	$	205,232	$	184,233		16	%		37	%
Healthcare, Education and Childcare		128,969		168,000		16	%		36	%		124,430		127,574		11	%		26	%
Distribution		57,352		130,850		12	%		28	%		120,378		165,304		14	%		33	%
Short-Term U.S. Government Securities		124,809		124,788		12	%		27	%		99,652		99,632		8	%		20	%
Financial Services		70,403		68,959		6	%		15	%		69,915		71,527		6	%		14	%
Consumer Products		53,746		49,414		5	%		11	%		89,773		89,743		8	%		18	%
Aerospace and Defense		39,513		47,113		4	%		10	%		53,472		54,017		5	%		11	%
Manufacturing/Basic Industry		42,601		43,067		4	%		9	%		12,686		12,713		1	%		3	%
Environmental Services		61,588		31,238		3	%		7	%		51,402		44,290		4	%		9	%
Auto Sector		26,621		27,826		2	%		6	%		39,449		40,752		4	%		8	%
Gaming		22,853		23,151		2	%		5	%		-		-		0	%		0	%
Consumer Services		19,067		19,319		2	%		4	%		8,700		8,449		1	%		2	%
Personal, Food and Miscellaneous Services		16,207		18,769		2	%		4	%		17,203		18,850		2	%		4	%
Media		17,477		17,434		2	%		4	%		31,964		32,130		3	%		7	%
Diversified Conglomerate Service		17,268		16,416		1	%		4	%		10,091		9,834		1	%		2	%
Telecommunications		22,305		13,695		1	%		3	%		35,986		34,045		3	%		7	%
Buildings and Real Estate		12,546		12,495		1	%		3	%		12,515		12,442		1	%		3	%
Chemicals, Plastics and Rubber		15,237		12,240		1	%		3	%		32,255		31,598		3	%		6	%
Event Services		11,823		12,073		1	%		3	%		-		-		0	%		0	%
Home and Office Furnishings, Housewares and Durable Consumer Products		9,258		9,723		1	%		2	%		9,663		9,663		1	%		2	%
Electronics		2,507		5,485		1	%		1	%		14,887		19,633		2	%		4	%
Consulting Services		5,970		5,966		1	%		1	%		-		-		0	%		0	%
All Other		40,509		37,000		3	%		8	%		93,898		77,812		7	%		16	%
Total	$	1,014,243	$	1,079,473		100	%		234	%	$	1,133,551	$	1,144,241		100	%		232	%

Excludes investments in PSLF.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

PennantPark Senior Loan Fund, LLC

We provide capital to PSLF in the form of subordinated notes and equity interests. As of September 30, 2025, we and Pantheon owned 55.8% and 44.2%, respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2024, we and Pantheon owned 60.5% and 39.5%, respectively, of each of the outstanding subordinated notes and equity interests of PSLF. As of September 30, 2025, our investment in PSLF consisted of subordinated notes of $140.3 million and $115.9 million, respectively, and equity interests of $82.4 million and $67.4 million, respectively. In October 2024, the Company made a capital contribution of approximately $26.3 million of assets at their most recent fair market value as of the date of the transaction.

Additionally, PSLF, through its wholly-owned subsidiary, or PSLF Subsidiary, has entered into a $400.0 million (increased from $325.0 million in August 2024) senior secured revolving credit facility, or the PSLF Credit Facility, with BNP Paribas, which bears interest at SOFR (or an alternative risk-free interest rate index) plus 225 basis points during the investment period and is subject to leverage and borrowing base restrictions.

In March 2022, PSLF completed a $304.0 million debt securitization in the form of a collateralized loan obligation, or the “2034 Asset-Backed Debt”. The 2034 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO IV, LLC., a wholly-owned and consolidated subsidiary of PSLF, consisting primarily of middle market loans and participation interests in middle market loans. The 2034 Asset-Backed Debt is scheduled to mature in April 2034. On the closing date of the transaction, in consideration of PSLF’s transfer to PennantPark CLO IV, LLC. of the initial closing date loan portfolio, which included loans distributed to PSLF by certain of its wholly owned subsidiaries and us, PennantPark CLO IV, LLC. transferred to PSLF 100% of the Preferred Shares of PennantPark CLO IV, LLC. and 100% of the Subordinated Notes issued by PennantPark CLO IV, LLC. As of September 30, 2025 and 2024, there was $246.0 million of external 2034 Asset-Backed Debt.

On July 26, 2023, CLO VII completed a $300 million debt securitization in the form of a collateralized loan obligation (the "2035 Debt Securitization" or "2035 Asset-Backed Debt"). The 2035 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2035 Debt Securitization was executed through a private placement of: (i) $151.0 million Class A-1a Notes maturing 2035, which bear interest at the three-month SOFR plus 2.7%, (ii) $20.0 million Class A-1b Loans 2035, which bear interest at 6.5%, (iii) $12.0 million Class A-2 Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 3.2%, (iv) $21.0 million Class B Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.1%, (v) $24.0 million Class C Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.7%, (vi) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 7.0%. As of September 30, 2025 and 2024 there was $246.0 million of external 2035 Asset-Backed Debt. On July 21, 2025, CLO VII closed a partial refinancing of the 2035 Debt Securitization where the $21.0 million Class B (B-R) Senior Secured Floating Rate Notes interest rate was decreased to SOFR plus 2.0%, the $24.0 million Class C (C-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 2.3% and the $18.0 million Class D (D-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 3.4%.

On December 23, 2024, PennantPark CLO X, LLC ("CLO X”) completed a $400.5 million debt securitization in the form of a collateralized loan obligation (the "2037 Debt Securitization" or"2037 Asset-Backed Debt"). The 2037 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2037 Debt Securitization was executed through a private placement of: (i) $158.0 million Class A-1 Notes maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (ii) $30.0 million Class A-1A Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iii) $40.0 million Class A-1W Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iv) $16.0 million Class A-2W Loans due2037, which bear interest at the three-month SOFR plus 1.75%, (v) $28.0 million Class B Notes due 2037, which bear interest at the three-month SOFR plus 1.85%, (vi) $32.0 million Class C Notes due 2037, which bear interest at the three-month SOFR plus 2.40%., (vii) $24.0 million Class D Notes due 2037, which bear interest at the three-month SOFR plus 3.85%. As of September 30, 2025, there was $328.0 million of external 2037 Asset-Backed Debt.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Below is a summary of PSLF’s portfolio at fair value ($ in thousands):

($ in thousands)	September 30, 2025			September 30, 2024
Total investments	$	1,265,901		$	1,031,225
Weighted average cost yield on income producing investments		10.1	%		11.3	%
Number of portfolio companies in PSLF		109			102
Largest portfolio company investment at fair value	$	24,802		$	25,073
Total of five largest portfolio company investments at fair value	$	121,360		$	109,927

Below is a listing of PSLF’s individual investments as of September 30, 2025 ($ in thousands):

Issuer Name	Acquisition	Maturity	Industry	Current<br> Coupon	Basis Point<br>Spread Above<br>Index (1)		Cost		Fair Value (2)
First Lien Secured Debt - 1,035.8% of Net Assets
ACP Avenu Buyer, LLC	04/23/24	10/02/29	Business Services	9.04%	SOFR+475	7,590	$	7,474	$	7,514
Acp Falcon Buyer, Inc.	10/06/23	08/01/29	Business Services	9.79%	SOFR+550	15,196		14,963		15,348
AFC-Dell Holding Corp.	02/23/24	04/09/27	Distribution	9.83%	SOFR+550	16,181		16,072		16,100
Ad.Net Acquisition, LLC	03/02/22	05/07/26	Media	10.26%	SOFR+626	4,788		4,788		4,788
Aechelon Technology, Inc.	12/23/24	08/16/29	Aerospace and Defense	9.91%	SOFR+575	4,800		4,718		4,800
Alpine Acquisition Corp II (4), (7)	10/12/22	11/30/26	Containers, Packaging and Glass			15,185		15,056		7,896
Amsive Holdings Corporation	03/02/22	12/10/26	Media	10.35%	SOFR+635	13,805		13,745		13,667
Anteriad, LLC (f/k/a MeritDirect, LLC)	03/02/22	06/30/26	Media	9.90%	SOFR+590	13,837		13,803		13,837
Arcfield Acquisition Corp.	07/26/22	10/28/31	Aerospace and Defense	9.31%	SOFR+500	14,888		14,867		14,813
Archer Lewis, LLC	12/20/24	08/28/29	Healthcare, Education and Childcare	9.75%	SOFR+575	15,581		15,426		15,581
Argano, LLC	12/16/24	09/13/29	Business Services	9.89%	SOFR+575	14,850		14,730		14,628
BLC Holding Company, INC.	02/24/25	11/20/30	Environmental Services	8.50%	SOFR+450	12,013		11,942		12,013
Beacon Behavioral Support Services, LLC	09/16/24	06/21/29	Healthcare, Education and Childcare	9.50%	SOFR+550	24,607		24,305		24,607
Best Practice Associates, LLC	01/21/25	11/08/29	Aerospace and Defense	10.91%	SOFR+675	19,850		19,606		19,701
Beta Plus Technologies, Inc.	08/11/22	07/02/29	Business Services	9.75%	SOFR+575	14,550		14,375		14,405
Big Top Holdings, LLC	06/26/24	02/28/30	Manufacturing / Basic Industries	9.25%	SOFR+525	6,626		6,531		6,626
Bioderm, Inc.	06/26/24	01/31/28	Healthcare, Education and Childcare	10.77%	SOFR+650	8,798		8,726		8,688
Blackhawk Industrial Distribution, Inc.	07/24/23	09/17/26	Distribution	9.40%	SOFR+540	25,244		25,052		24,802
Boss Industries, LLC	07/21/25	12/27/30	Conglomerate Manufacturing	9.00%	SOFR+500	5,955		5,916		5,955
Burgess Point Purchaser Corporation	10/03/22	07/25/29	Auto Sector	9.51%	SOFR+535	6,186		5,926		5,348
C5MI Acquisition, LLC	10/09/24	07/31/29	Business Services	10.00%	SOFR+600	7,425		7,334		7,425
CF512, Inc.	12/29/21	08/20/26	Media	10.36%	SOFR+619	9,042		8,983		8,952
Carisk Buyer, Inc.	02/09/24	12/01/29	Healthcare, Education and Childcare	9.00%	SOFR+500	11,370		11,276		11,370
Carnegie Dartlet, LLC	06/26/24	02/07/30	Education	9.66%	SOFR+550	22,655		22,360		22,428
Cartessa Aesthetics, LLC	09/09/22	06/14/28	Distribution	10.00%	SOFR+600	21,880		21,708		21,880
Case Works, LLC	11/26/24	10/01/29	Business Services	9.25%	SOFR+525	10,436		10,366		9,966
Commercial Fire Protection Holdings, LLC	12/16/24	09/23/30	Business Services	8.50%	SOFR+450	20,831		20,730		20,831
Compex Legal Services, Inc.	12/23/24	02/09/26	Business Services	9.55%	SOFR+555	931		931		931
Confluent Health, LLC	12/23/24	11/30/28	Healthcare, Education and Childcare	11.66%	SOFR+750	1,950		1,950		1,940
CJX Borrower, LLC	08/12/22	07/13/27	Media	10.08%	SOFR+576	8,624		8,614		8,624
Crane 1 Services, Inc.	07/24/23	08/16/27	Personal, Food and Miscellaneous Services	10.03%	SOFR+586	5,271		5,243		5,232
DRI Holding Inc.	08/04/22	12/21/28	Media	9.51%	SOFR+535	5,770		5,442		5,655
DRS Holdings III, Inc.	03/02/22	11/03/25	Consumer Products	9.41%	SOFR+525	4,478		4,478		4,523
Duggal Acquisition, LLC	12/23/24	09/30/30	Marketing Services	8.75%	SOFR+475	4,950		4,910		4,950
Dynata, LLC - First Out Term Loan	07/15/24	07/17/28	Business Services	9.46%	SOFR+526	1,572		1,486		1,565
Dynata, LLC - Last Out Term Loan	07/15/24	10/16/28	Business Services	9.96%	SOFR+576	9,670		9,670		7,873
EDS Buyer, LLC	07/24/23	01/10/29	Aerospace and Defense	8.75%	SOFR+475	23,169		22,915		23,227
ETE Intermediate II, LLC	07/24/23	05/29/29	Personal, Food and Miscellaneous Services	9.16%	SOFR+500	12,124		11,963		12,124
Emergency Care Partners, LLC	12/23/24	10/18/27	Healthcare, Education and Childcare	9.00%	SOFR+500	6,930		6,895		6,930
EvAL Home Care Solutions Intermediate, LLC	07/23/24	05/10/30	Healthcare, Education and Childcare	9.91%	SOFR+575	7,040		6,955		7,040
Exigo Intermediate II, LLC	07/24/23	03/15/27	Business Services	10.51%	SOFR+635	9,551		9,491		9,551
Five Star Buyer, Inc.	07/24/23	02/23/28	Hotels, Motels, Inns and Gaming	13.35%	SOFR+915	4,140		4,096		4,057
GGG Midco, LLC	12/16/24	09/27/30	Home and Office Furnishings, Housewares and Durable Consumer Products	9.00%	SOFR+500	12,485		12,377		12,485
Global Holdings InterCo, LLC	03/02/22	03/16/26	Banking, Finance, Insurance & Real Estate	9.74%	SOFR+560	6,593		6,589		6,593
Graffiti Buyer, Inc.	03/02/22	08/10/27	Distribution	9.80%	SOFR+560	3,959		3,928		3,880
HEC Purchaser Corp.	09/16/24	06/17/29	Healthcare, Education and Childcare	8.87%	SOFR+500	7,798		7,723		7,798
HV Watterson Holdings, LLC (4)	09/09/22	12/17/26	Business Services	8.00%		15,570		15,496		8,548
HW Holdco, LLC	03/02/22	05/10/26	Media	9.90%	SOFR+590	23,593		23,537		23,593
Hancock Roofing And Construction, LLC	03/02/22	12/31/26	Insurance	9.60%	SOFR+550	6,029		6,029		5,968
Harris & Co, LLC	12/20/24	08/09/30	Financial Services	9.16%	SOFR+500	19,182		18,995		19,015
Hills Distribution, Inc.	02/13/24	11/08/29	Distribution	10.32%	SOFR+600	14,148		13,992		14,148
IG Investments Holdings, LLC	03/02/22	09/22/28	Business Services	9.31%	SOFR+500	4,350		4,305		4,328

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Issuer Name	Acquisition	Maturity	Industry	Current<br> Coupon	Basis Point<br>Spread Above<br>Index (1)
Imagine Acquisitionco, Inc.	07/24/23	11/15/27	Business Services	9.29%	SOFR+510	5,452	5,402	5,452
Infinity Home Services Holdco, Inc.	02/07/23	12/28/28	Personal, Food and Miscellaneous Services	10.16%	SOFR+600	13,749	13,622	13,749
Infolinks Media Buyco, LLC	07/24/23	11/01/26	Media	9.50%	SOFR+550	13,046	13,007	12,981
Inovex Information Systems Incorporated	03/04/25	12/17/30	Business Services	9.25%	SOFR+525	5,955	5,918	5,955
Inventus Power, Inc.	10/10/23	01/15/26	Consumer Products	11.78%	SOFR+761	12,968	12,934	12,968
Kinetic Purchaser, LLC	07/24/23	11/10/27	Consumer Products	10.15%	SOFR+615	13,701	13,590	11,646
LAV Gear Holdings, Inc. - Takeback TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594	2,295	2,295	2,295
LAV Gear Holdings, Inc. - Priority TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594	729	720	898
Lash OpCo, LLC	03/02/22	02/18/27	Consumer Products	12.16%	SOFR+785	21,525	21,466	20,987
Lightspeed Buyer, Inc.	03/02/22	02/03/27	Healthcare, Education and Childcare	8.75%	SOFR+475	20,115	20,017	20,115
LJ Avalon Holdings, LLC	07/24/23	02/01/30	Environmental Services	8.77%	SOFR+450	7,636	7,550	7,636
MAG DS Corp.	03/02/22	04/01/27	Aerospace and Defense	9.60%	SOFR+560	8,175	7,939	8,142
MDI Buyer, Inc.	12/20/24	07/25/28	Chemicals, Plastics and Rubber	8.95%	SOFR+475	19,728	19,568	19,728
Marketplace Events Acquisition, LLC	03/04/25	12/19/30	Media	9.12%	SOFR+525	19,900	19,727	19,900
MBS Holdings, Inc.	03/02/22	04/16/27	Telecommunications	9.30%	SOFR+510	8,244	8,197	8,244
Meadowlark Acquirer, LLC	04/01/22	12/10/27	Business Services	9.65%	SOFR+565	2,893	2,865	2,893
Medina Health, LLC	01/18/24	10/20/28	Healthcare, Education and Childcare	10.25%	SOFR+625	19,423	19,311	19,520
Megawatt Acquisitionco, Inc.	07/17/24	03/01/30	Business Services	9.25%	SOFR+525	7,880	7,788	7,502
MOREgroup Holdings, Inc.	08/29/24	01/16/30	Business Services	9.25%	SOFR+525	19,700	19,472	19,700
Municipal Emergency Services, Inc.	03/02/22	10/01/27	Distribution	9.15%	SOFR+515	9,575	9,512	9,575
NBH Group, LLC	03/02/22	08/19/26	Healthcare, Education and Childcare	10.12%	SOFR+585	7,180	7,159	7,180
NORA Acquisition, LLC	11/21/23	08/31/29	Healthcare, Education and Childcare	10.35%	SOFR+635	20,090	19,860	19,939
OSP Embedded Purchaser, LLC	01/17/25	12/17/29	Aerospace and Defense	9.76%	SOFR+575	18,926	18,793	18,661
Omnia Exterior Solutions, LLC	07/25/24	12/29/29	Diversified Conglomerate Service	9.26%	SOFR+525	17,982	17,766	17,622
One Stop Mailing, LLC	06/07/23	05/07/27	Transportation	10.53%	SOFR+636	8,274	8,199	8,274
PCS Midco, Inc.	08/29/24	03/01/30	Financial Services	9.75%	SOFR+575	5,753	5,688	5,753
Pink Lily Holdco, LLC (5)	04/01/22	11/09/27	Retail	4.27%		8,761	8,699	3,504
Pacific Purchaser, LLC	03/21/24	10/02/28	Business Services	10.42%	SOFR+625	12,773	12,602	12,721
PAR Excellence Holdings, Inc.	11/26/24	09/03/30	Healthcare, Education and Childcare	9.17%	SOFR+500	9,925	9,842	9,751
Project Granite Buyer, Inc.	07/21/25	12/31/30	Business Services	9.75%	SOFR+575	5,955	5,903	6,015
RRA Corporate, LLC	12/23/24	08/15/29	Business Services	9.25%	SOFR+525	3,960	3,930	3,936
RTIC Subsidiary Holdings, LLC	07/23/24	05/03/29	Consumer Products	9.75%	SOFR+575	24,700	24,365	24,453
Radius Aerospace, Inc.	11/06/19	03/29/27	Aerospace and Defense	10.45%	SOFR+615	11,780	11,714	11,515
Rancho Health MSO, Inc.	03/02/22	06/20/29	Healthcare, Education and Childcare	9.29%	SOFR+500	22,704	22,631	22,704
Recteq, LLC	06/26/24	01/29/26	Consumer Products	10.40%	SOFR+640	9,550	9,537	9,526
Riverpoint Medical, LLC	03/02/22	06/21/27	Healthcare, Education and Childcare	8.75%	SOFR+475	3,891	3,861	3,891
Ro Health, LLC	04/03/25	01/17/31	Healthcare Providers & Services	8.50%	SOFR+450	9,308	9,249	9,308
Rural Sourcing Holdings, Inc.	07/24/23	06/16/29	Professional Services	9.92%	SOFR+575	5,435	5,367	4,891
Sabel Systems Technology Solutions, LLC	01/07/25	10/31/30	Business Services	9.91%	SOFR+575	11,910	11,813	11,910
Sales Benchmark Index, LLC	03/02/22	07/07/26	Business Services	10.20%	SOFR+620	6,617	6,597	6,617
Seacoast Service Partners NA, LLC	07/21/25	12/20/29	Diversified Conglomerate Service	9.00%	SOFR+500	4,963	4,926	4,759
Seaway Buyer, LLC	09/14/22	06/13/29	Chemicals, Plastics and Rubber	10.15%	SOFR+615	14,550	14,394	13,568
Sigma Defense Systems, LLC	12/01/23	12/20/27	Telecommunications	10.31%	SOFR+615	23,904	23,741	23,904
SpendMend Holdings, LLC	07/24/23	03/01/28	Business Services	9.15%	SOFR+515	9,412	9,261	9,412
STG Distribution, LLC - First Out New Money Term Loans	10/03/24	10/03/29	Transportation	12.57%	SOFR+835	1,986	1,895	1,768
STG Distribution, LLC - Second Out Term Loans (5)	10/03/24	10/03/29	Transportation	5.32%		4,566	2,594	365
SV-Aero Holdings, LLC	10/31/24	11/01/30	Aerospace and Defense	9.00%	SOFR+500	14,719	14,656	14,719
Systems Planning And Analysis, Inc.	03/02/22	08/16/27	Aerospace and Defense	8.92%	SOFR+475	16,919	16,816	16,784
TCG 3.0 Jogger Acquisitionco, Inc.	02/27/24	01/23/29	Media	10.52%	SOFR+650	9,850	9,732	9,801
TMII Enterprises, LLC	07/24/23	12/22/28	Personal, Food and Miscellaneous Services	8.66%	SOFR+450	19,878	19,692	19,878
TPC US Parent, LLC	03/02/22	11/24/25	Food	10.19%	SOFR+590	11,275	11,269	11,185
Team Services Group, LLC	07/24/23	12/20/27	Healthcare, Education and Childcare	9.56%	SOFR+525	9,588	9,434	9,548
The Bluebird Group, LLC	03/02/22	07/28/26	Business Services	9.90%	SOFR+590	16,348	16,306	16,348
The Vertex Companies, LLC	03/02/22	08/31/28	Business Services	8.93%	SOFR+475	14,480	14,393	14,408
Transgo, LLC	06/07/24	12/29/28	Auto Sector	9.91%	SOFR+575	16,363	16,215	16,486
Tyto Athene, LLC	03/02/22	04/01/28	Aerospace and Defense	9.19%	SOFR+490	11,342	11,271	11,058
Urology Management Holdings, Inc.	07/24/23	06/15/27	Healthcare, Education and Childcare	9.66%	SOFR+550	12,380	12,333	12,380
US Fertility Enterprises, LLC	09/03/25	10/11/31	Healthcare, Education and Childcare	8.67%	SOFR+450	4,975	4,931	4,975
Watchtower Buyer, LLC	09/19/24	12/01/29	Consumer Products	10.00%	SOFR+600	23,114	22,912	22,885
Wash & Wax Systems, LLC	04/30/25	04/30/28	Business Services	9.81%	SOFR+550	6,577	6,686	6,708
Total First Lien Secured Debt							1,276,720	1,253,543
Subordinated Debt - 3.7% of Net Assets

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Issuer Name	Acquisition	Maturity		Industry	Current<br> Coupon				Cost		Fair Value (2)
Wash & Wax Systems, LLC - Subordinate Debt	04/30/25	07/30/28		Business Services	12.00%			4,422		4,422		4,422
Total Subordinated Debt								4,422		4,422		4,422
Equity Securities - 6.6% of Net Assets
New Insight Holdings, Inc. - Common Equity	07/15/24		—	Business Services		—	—	134,330		2,351		2,014
48Forty Intermediate Holdings, Inc. - Common Equity	11/05/24		—	Containers, Packaging and Glass		—	—	1,988		—		—
Wash & Wax Group, LP - Common Equity	04/30/25		—	Business Services		—	—	2,803		5,002		5,165
White Tiger Newco, LLC - Common Equity	07/31/25		—	Business Services		—	—	10,805		824		757
Total Equity Securities										8,177		7,936
Total Investments - 1,046.0% of Net Assets(3)(6)										1,289,319		1,265,901
Cash and Cash Equivalents - 33.9%
JPMorgan U.S. Government (Money Market Fund)					4.09%					7,972		7,972
Goldman Sachs Financial Square Government Fund (Money Market Fund)					4.18%					6,946		6,946
BlackRock Federal FD Institutional 81 (Money Market Fund)					4.19%					1,920		1,920
Non-Money Market Cash										24,147		24,147
Total Cash and Cash Equivalents										40,985		40,985
Total Investments and Cash Equivalents - 1,079.8% of Net Assets									$	1,330,304	$	1,306,886
Liabilities in Excess of Other Assets — (979.8)% of Net Assets												(1,185,860	)
Members' Equity—100.0%											$	121,026

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR" or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSLF’s accounting policy.
As of September 30, 2025, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,289.3 million, $1,265.9 million and 1,046.0%
Non-accrual security
Partial non-accrual PIK Security.
All of our investments are not registered under the 1933 Act and have restrictions on resale.
The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC, or,3) securing the 2036 Asset-Backed Debt and held through PennantPark CLO VII, LLC, or 4) securing the 2037 Asset-Backed Debt and held through PennantPark CLO X, LLC

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Below is a listing of PSLF’s individual investments as of September 30, 2024 ($ in thousands):

Issuer Name	Maturity	Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index (1)		Cost		Fair Value (2)
First Lien Secured Debt - 916.4%of Net Assets
A1 Garage Merger Sub, LLC	12/22/28	Personal, Food and Miscellaneous Services		10.95	%	SOFR+610	14,738	$	14,504	$	14,738
ACP Avenu Buyer, LLC	10/02/29	Business Services		10.57	%	SOFR+525	7,667		7,526		7,418
ACP Falcon Buyer, Inc.	08/01/29	Business Services		10.83	%	SOFR+550	15,351		15,067		15,412
Ad.net Acquisition, LLC	05/07/26	Media		11.28	%	SOFR+626	4,838		4,838		4,838
Aeronix, Inc. - Term Loan	12/18/28	Aerospace and Defense		9.85	%	SOFR+525	14,888		14,700		14,888
AFC - Dell Holding Corp.	04/09/27	Distribution		10.49	%	SOFR+550	7,131		7,059		7,059
Alpine Acquisition Corp II	11/30/26	Containers, Packaging and Glass		11.30	%	SOFR+610	14,687		14,459		14,100
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	06/10/25	Media		10.75	%	SOFR+650	13,813		13,769		13,675
Anteriad Holdings Inc (fka MeritDirect)	06/30/26	Media		10.50	%	SOFR+590	14,714		14,638		14,714
Applied Technical Services, LLC	12/29/26	Environmental Services		10.50	%	SOFR+590	14,522		14,389		14,304
Arcfield Acquisition Corp.	08/03/29	Aerospace and Defense		11.56	%	SOFR+625	21,574		21,270		21,466
Beacon Behavioral Support Services, LLC	06/21/29	Healthcare, Education and Childcare		9.92	%	SOFR+525	14,963		14,750		14,738
Beta Plus Technologies, Inc.	07/01/29	Business Services		10.35	%	SOFR+575	14,700		14,486		14,259
Big Top Holdings, LLC	02/28/30	Manufacturing / Basic Industries		11.18	%	SOFR+625	6,965		6,852		6,965
Bioderm, Inc.	01/31/28	Healthcare, Education and Childcare		11.84	%	SOFR+650	8,887		8,795		8,776
Blackhawk Industrial Distribution, Inc.	09/17/26	Distribution		10.92	%	SOFR+640	20,504		20,245		20,152
BlueHalo Global Holdings, LLC	10/31/25	Aerospace and Defense		10.70	%	SOFR+600	13,292		13,218		13,026
Broder Bros., Co.	12/04/25	Personal and Non-Durable Consumer Products		10.97	%	SOFR+611	9,374		9,374		9,374
Burgess Point Purchaser Corporation	07/25/29	Auto Sector		10.20	%	SOFR+535	4,874		4,625		4,585
Carisk Buyer, Inc.	11/30/29	Healthcare, Education and Childcare		10.35	%	SOFR+575	5,473		5,400		5,390
Carnegie Dartlet, LLC	02/07/30	Education		10.35	%	SOFR+550	9,950		9,810		9,801
Cartessa Aesthetics, LLC	06/14/28	Distribution		10.35	%	SOFR+575	17,106		16,879		17,106
CF512, Inc.	08/20/26	Media		11.21	%	SOFR+619	2,891		2,876		2,848
Connatix Buyer, Inc.	07/13/27	Media		10.53	%	SOFR+561	8,716		8,702		8,716
Crane 1 Services, Inc.	08/16/27	Personal, Food and Miscellaneous Services		10.71	%	SOFR+586	2,549		2,529		2,530
Dr. Squatch, LLC	08/31/27	Personal and Non-Durable Consumer Products		9.95	%	SOFR+535	22,993		22,842		22,993
DRI Holding Inc.	12/21/28	Media		10.20	%	SOFR+535	5,830		5,423		5,626
DRS Holdings III, Inc.	11/03/25	Consumer Products		11.20	%	SOFR+635	13,777		13,760		13,667
Dynata, LLC - First Out Term Loan	07/15/28	Business Services		10.38	%	SOFR+526	1,588		1,476		1,586
Dynata, LLC - Last Out Term Loan	10/15/28	Business Services		10.88	%	SOFR+576	9,768		9,768		8,993
EDS Buyer, LLC	01/10/29	Aerospace and Defense		10.35	%	SOFR+575	11,144		11,013		10,977
ETE Intermediate II, LLC	05/29/29	Personal, Food and Miscellaneous Services		11.56	%	SOFR+650	12,249		12,049		12,249
Eval Home Health Solutions Intermediate, LLC	05/10/30	Healthcare, Education and Childcare		10.85	%	SOFR+575	7,396		7,293		7,322
Exigo Intermediate II, LLC	03/15/27	Business Services		11.20	%	SOFR+635	9,651		9,556		9,603
Fairbanks Morse Defense	06/17/28	Aerospace and Defense		9.74	%	SOFR+450	3,491		3,417		3,495
Five Star Buyer, Inc.	02/23/28	Hotels, Motels, Inns and Gaming		12.21	%	SOFR+710	4,241		4,175		4,241
Global Holdings InterCo LLC	03/16/26	Banking, Finance, Insurance & Real Estate		11.43	%	SOFR+615	6,952		6,940		6,605
Graffiti Buyer, Inc.	08/10/27	Distribution		10.45	%	SOFR+560	3,118		3,081		3,087
Hancock Roofing and Construction L.L.C.	12/31/26	Insurance		10.20	%	SOFR+560	6,146		6,146		6,023
HEC Purchaser Corp.	06/17/29	Healthcare, Education and Childcare		9.75	%	SOFR+550	7,980		7,887		7,924
Hills Distribution, Inc	11/08/29	Distribution		11.11	%	SOFR+600	14,292		14,106		14,149
HV Watterson Holdings, LLC	12/17/26	Business Services	12.00% (PIK 4.0%)				15,144		15,019		13,887
HW Holdco, LLC	05/10/26	Media		11.04	%	SOFR+590	18,355		18,296		18,355
IG Investments Holdings, LLC	09/22/28	Business Services		11.35	%	SOFR+610	4,383		4,322		4,339
Imagine Acquisitionco, LLC	11/15/27	Business Services		10.20	%	SOFR+510	5,509		5,440		5,481
Infinity Home Services Holdco, Inc.	12/28/28	Personal, Food and Miscellaneous Services		11.49	%	SOFR+685	13,890		13,730		14,029
Infolinks Media Buyco, LLC	11/01/26	Media		10.10	%	SOFR+550	12,286		12,214		12,194
Inventus Power, Inc.	06/30/25	Consumer Products		12.46	%	SOFR+761	13,101		12,980		12,905
Kinetic Purchaser, LLC	11/10/27	Consumer Products		10.75	%	SOFR+615	13,701		13,520		13,701
LAV Gear Holdings, Inc.	10/31/25	Leisure, Amusement, Motion Pictures, Entertainment		11.66	%	SOFR+640	4,613		4,601		4,530
Lash OpCo, LLC	02/18/27	Consumer Products	12.94% (PIK 5.10%)			SOFR+785	20,447		20,338		20,243
Lightspeed Buyer Inc.	02/03/26	Healthcare, Education and Childcare		10.20	%	SOFR+535	14,267		14,170		14,267
LJ Avalon Holdings, LLC	01/31/30	Environmental Services		10.48	%	SOFR+525	6,255		6,151		6,255
MAG DS Corp.	04/01/27	Aerospace and Defense		10.20	%	SOFR+550	8,266		7,890		7,770
Magenta Buyer, LLC -First out	07/31/28	Software		12.13	%	SOFR+701	450		450		425
Magenta Buyer, LLC -Second out	07/31/28	Software		12.38	%	SOFR+801	569		569		390
Magenta Buyer, LLC -Third out	07/31/28	Software		11.63	%	SOFR+726	2,109		2,109		617
MBS Holdings, Inc.	04/16/27	Telecommunications		10.67	%	SOFR+585	8,330		8,256		8,338
Meadowlark Acquirer, LLC	12/10/27	Business Services		10.50	%	SOFR+590	2,923		2,884		2,850
Medina Health, LLC	10/20/28	Healthcare, Education and Childcare		10.85	%	SOFR+625	14,912		14,765		14,912
Megawatt Acquisitionco, Inc.	03/01/30	Business Services		9.85	%	SOFR+525	7,960		7,851		7,514
MOREgroup Holdings, LLC	01/16/30	Business Services		10.35	%	SOFR+575	12,450		12,303		12,263
Municipal Emergency Services, Inc.	10/01/27	Distribution		9.77	%	SOFR+515	5,912		5,822		5,912
NBH Group LLC	08/19/26	Healthcare, Education and Childcare		11.19	%	SOFR+585	7,353		7,311		7,133
NORA Acquisition, LLC	08/31/29	Healthcare, Education and Childcare		10.95	%	SOFR+635	14,850		14,597		14,850
Omnia Exterior Solutions, LLC	12/29/29	Diversified Conglomerate Service		10.01	%	SOFR+550	9,768		9,650		9,622
One Stop Mailing, LLC	5/7/2027	Transportation		11.21	%	SOFR+636	8,380		8,256		8,380
Owl Acquisition, LLC	2/4/2028	Education		10.20	%	SOFR+535	3,893		3,811		3,825
Ox Two, LLC	5/18/2026	Distribution		11.12	%	SOFR+651	9,340		9,307		9,340

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Issuer Name	Maturity		Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index (1)			Cost		Fair Value (2)
Pacific Purchaser, LLC	10/2/2028		Business Services		11.51	%	SOFR+600		12,903		12,682		12,877
PCS Midco, Inc.	3/1/2030		Financial Services		10.81	%	SOFR+575		5,812		5,735		5,812
PL Acquisitionco, LLC	11/9/2027		Retail	11.99% (PIK 3.5%)			SOFR+725		8,193		8,100		6,554
Quantic Electronics, LLC	11/19/2026		Aerospace and Defense		10.95	%	SOFR+635		3,280		3,245		3,263
RTIC Subsidiary Holdings, LLC	5/3/2029		Consumer Products		10.35	%	SOFR+575		19,950		19,673		19,551
Radius Aerospace, Inc.	3/31/2025		Aerospace and Defense		10.75	%	SOFR+575		12,565		12,543		12,313
Rancho Health MSO, Inc.	12/18/2025		Healthcare, Education and Childcare		10.85	%	SOFR+560		5,530		5,530		5,530
Reception Purchaser, LLC	4/28/2028		Transportation		25.00	%	SOFR+615		4,937		4,888		3,703
Recteq, LLC	1/29/2026		Consumer Products		11.75	%	SOFR+715		9,650		9,592		9,554
Riverpoint Medical, LLC	6/21/2025		Healthcare, Education and Childcare		9.85	%	SOFR+525		3,932		3,919		3,936
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	6/16/2029		Professional Services		10.74	%	SOFR+575		4,336		4,268		4,282
S101 Holdings Inc.	12/29/2026		Electronics		11.48	%	SOFR+615		6,467		6,387		6,402
Sales Benchmark Index LLC	1/3/2025		Business Services		10.80	%	SOFR+620		6,676		6,668		6,676
Sargent & Greenleaf Inc.	12/20/2024		Electronics	12.45% (PIK 1.00%)			SOFR+760		4,634		4,634		4,634
Seaway Buyer, LLC	6/13/2029		Chemicals, Plastics and Rubber		10.75	%	SOFR+615		14,700		14,510		14,186
Sigma Defense Systems, LLC	12/18/2027		Telecommunications		11.50	%	SOFR+690		14,621		14,465		14,475
Simplicity Financial Marketing Group Holdings, Inc	12/2/2026		Banking, Finance, Insurance & Real Estate		11.38	%	SOFR+640		11,359		11,207		11,472
Skopima Consilio Parent, LLC	5/17/2028		Business Services		9.46	%	SOFR+461		1,290		1,269		1,289
Smartronix, LLC	11/23/2028		Aerospace and Defense		10.35	%	SOFR+610		25,078		24,798		25,073
Solutionreach, Inc.	7/17/2025		Communications		12.40	%	SOFR+715		9,239		9,216		9,239
SpendMend Holdings, LLC	3/1/2028		Business Services		10.26	%	SOFR+565		9,510		9,302		9,510
Summit Behavioral Healthcare, LLC	11/24/2028		Healthcare, Education and Childcare		9.31	%	SOFR+425		3,554		3,398		3,305
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	8/16/2027		Aerospace and Defense		10.26	%	SOFR+500		15,803		15,600		15,772
TCG 3.0 Jogger Acquisitionco, Inc.	1/23/2029		Media		11.10	%	SOFR+650		9,950		9,800		9,851
TPC US Parent, LLC	11/24/2025		Food		10.98	%	SOFR+565		11,392		11,330		11,392
TWS Acquisition Corporation	6/6/2025		Education		11.33	%	SOFR+640		1,568		1,567		1,568
Team Services Group, LLC	11/24/2028		Healthcare, Education and Childcare		9.95	%	SOFR+510		9,661		9,462		9,537
Teneo Holdings LLC	3/13/2031		Business Services		9.60	%	SOFR+475		2,985		2,955		2,994
The Bluebird Group LLC	7/27/2026		Business Services		11.25	%	SOFR+665		14,445		14,404		14,445
The Vertex Companies, LLC	8/31/2027		Business Services		10.99	%	SOFR+610		7,611		7,536		7,611
Transgo, LLC	12/29/2028		Auto Sector		10.60	%	SOFR+575		14,479		14,282		14,479
Tyto Athene, LLC	4/3/2028		Aerospace and Defense		10.23	%	SOFR+490		11,393		11,306		11,165
Urology Management Holdings, Inc.	6/15/2026		Healthcare, Education and Childcare		11.46	%	SOFR+550		10,928		10,836		10,819
Watchtower Buyer, LLC	12/1/2029		Consumer Products		10.60	%	SOFR+600		13,942		13,769		13,803
Wildcat Buyerco, Inc.	2/27/2027		Electronics		10.60	%	SOFR+575		19,256		19,126		19,256
Zips Car Wash, LLC	12/31/2024		Business Services	12.46% (PIK 1.5%)			SOFR+740		19,687		19,648		18,801
Total First Lien Secured Debt											1,033,954		1,028,874
Equity Security - 2.1% of Net Assets
Dynata, LLC - Common Equity		—	Business Services		—			—	134		2,351		2,351
Total Investments - 918.5% of Net Assets (3)(4)											1,036,305		1,031,225
Cash and Cash Equivalents - 32.6% o f Net Assets
BlackRock Federal FD Institutional 30 (Money Market Fund)											36,595		36,595
Total Cash and Cash Equivalents											36,595		36,595
Total Investments and Cash Equivalents - 951.1% of Net Assets										$	1,072,900	$	1,067,820
Liabilities in Excess of Other Assets — (851.1)% of Net Assets													(955,549	)
Members' Equity—100.0%												$	112,271

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR" or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
Valued based on PSLF’s accounting policy.
As of September 30, 2024, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,036.3 million, $1,031.2 million and 918.5%
All of our investments are not registered under the 1933 Act and have restrictions on resale.
The securities are, 1) pledged as collateral under the BNP Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC; or, 3) securing the 2035 Asset-Backed Debt held through PennantPark CLO VII, LLC

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Below is the consolidated statements of assets and liabilities for PSLF ($ in thousands):

		September 30, 2024
Assets
Investments at fair value (amortized cost—1,289,319 and 1,036,305, respectively)	1,265,901	$	1,031,225
Cash and cash equivalents (cost—40,985 and 36,595, respectively)	40,985		36,595
Interest receivable	5,271		5,089
Receivable for investments sold	1,055		—
Prepaid expenses and other assets	2,148		372
Due from affiliate	87		71
Total assets	1,315,447		1,073,352
Liabilities
2037 Asset-backed debt, net (par—328,000 and 0, respectively and unamortized deferred financing cost of 1,887 and 0, respectively)	326,113		—
2034 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 940 and 1,328, respectively)	245,060		244,672
2035 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 1,434 and 1,882, respectively)	244,566		244,118
Credit facility payable	99,600		247,600
Subordinated notes payable to members	250,808		191,546
Payable for investments purchased	—		7,314
Interest payable on credit facility and asset backed debt	13,730		12,525
Distribution payable to members	8,000		8,000
Interest payable on subordinated notes to members	5,305		4,372
Accounts payable and accrued expenses	1,189		934
Due to affiliate	50		—
Total liabilities	1,194,421		961,081
Members' equity	121,026		112,271
Total liabilities and members' equity	1,315,447	$	1,073,352

All values are in US Dollars.

*For the years ended of September 30, 2025 and 2024, PSLF had zero of unfunded commitments to fund investments.

Below are the consolidated statements of operations for PSLF ($ in thousands):

	Year Ended September 30,
	2025			2024
Investment income:
Interest	$	138,501		$	114,231
Other income		1,875			1,023
Total investment income		140,376			115,254
Expenses:
Interest expense on credit facility and asset-backed debt		67,975			54,405
Interest expense on subordinated notes to members		30,436			24,861
Administration services expense		3,457			2,423
General and administrative expenses		1,494			1,360
Expenses before debt issuance costs		103,362			83,049
Debt issuance costs		250			—
Total expenses		103,612			83,049
Net investment income		36,764			32,205
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments		(9,215	)		(2,838	)
Net realized gain (loss) on debt extinguishment		(187	)		—
Net change in unrealized appreciation (depreciation) on investments		(18,344	)		1,462
Net realized and unrealized gain (loss) on investments		(27,746	)		(1,376	)
Net increase (decrease) in members' equity resulting from operations	$	9,018		$	30,829

* No management or incentive fees are payable by PSLF

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, our Truist Credit Facility and our SBA debentures are classified as Level 3. Our 2026 Notes and 2026 Notes-2 are classified as Level 2, as they are financial instruments with readily observable market inputs. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

The inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data is available, such information may be the result of consensus pricing information, disorderly transactions or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2 asset includes observable orderly market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.

Our investments are generally structured as debt and equity investments in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. The transaction price, excluding transaction costs, is typically the best estimate of fair value at inception. Ongoing reviews by our Investment Adviser and independent valuation firms are based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information including comparable transactions, performance multiples and yields, among other factors. These non-public investments valued using unobservable inputs are included in Level 3 of the fair value hierarchy.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in our ability to observe valuation inputs may result in a reclassification for certain financial assets or liabilities.

In addition to using the above inputs to value cash equivalents, investments, our SBA debentures, our 2026 Notes, our 2026-2 Notes and our Truist Credit Facility, we employ the valuation policy approved by our board of directors that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value. See Note 2.

As outlined in the table below, some of our Level 3 investments using a market approach valuation technique are valued using the average of the bids from brokers or dealers. The bids include a disclaimer, may not have corroborating evidence, may be the result of a disorderly transaction and may be the result of consensus pricing. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of directors has a bona fide reason to believe any such bids do not reflect the fair value of an investment, it may independently value such investment by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available. In accordance with ASC 820, we do not categorize any investments for which fair value is measured using the net asset value per share within the fair value hierarchy.

The remainder of our investment portfolio and our long-term Truist Credit Facility are valued using a market comparable or an enterprise market value technique. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the pricing indicated by the external event, excluding transaction costs, is used to corroborate the valuation. When using earnings multiples to value a portfolio company, the multiple used requires the use of judgment and estimates in determining how a market participant would price such an asset. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in an earnings before interest, taxes, depreciation and amortization, or EBITDA, multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA multiple will have the opposite effect.

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):

Asset Category ( in thousands)		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	31,018	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	550,259	Market Comparable	Market yield	4.0% - 24.5% (10.1%)
First lien	1,096	Enterprise Market Value	EBITDA multiple	7.5x - 8.3x (8.1x)
Second lien	14,750	Market Comparable	Market yield	13.2% - 15.5% (14.3%)
Second lien	3,411	Market Comparable	Broker/Dealer bids or quotes	N/A
Subordinated debt / corporate notes	201,220	Market Comparable	Market yield	7.0% - 25.4% (13.2%)
Equity	286,210	Enterprise Market Value	EBITDA multiple	1.5x - 28.3x (9.4x)
Total Level 3 investments	1,087,964
Debt Category ( in thousands)
Truist Credit Facility	425,477	Market Comparable	Market yield	4.9%

All values are in US Dollars.

The weighted averages disclosed in the table above were weighted by their relative fair value.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Asset Category ( in thousands)		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	13,841	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	621,998	Market Comparable	Market yield	7.0% – 21.4% (10.2%)
First lien	32,087	Enterprise Market Value	EBITDA multiple	0.9x - 8.4x (8.4x)
Second lien	63,803	Market Comparable	Market yield	13.1% - 18.5% (13.9%)
Second lien	3,377	Market Comparable	Broker/Dealer bids or quotes	N/A
Subordinated debt / corporate notes	181,690	Market Comparable	Market yield	5.0% - 16.5% (14.1%)
Equity	235,573	Enterprise Market Value	EBITDA multiple	0.4x - 18.8x (9.4x)
Total Level 3 investments	1,152,369
Debt Category ( in thousands)
Truist Credit Facility	460,361	Market Comparable	Market yield	5.4%

All values are in US Dollars.

The weighted averages disclosed in the table above were weighted by their relative fair value.

Our investments, cash and cash equivalents, Credit Facility, 2026 Notes and 2026 Notes-2 were categorized as follows in the fair value hierarchy ($ in thousands):

	Fair value at <br>September 30, 2025
Description ($ in thousands)	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
Debt investments	$	801,754	$	—	$	—	$	801,754	$	—
U.S. Government Securities(3)		124,788		—		124,788		—		—
Equity investments		360,731		—		—		286,210		74,521
Total investments		1,287,273		—		124,788		1,087,964		74,521
Cash and cash equivalents		51,783		51,783		—		—		—
Total investments and cash and cash equivalents	$	1,339,056	$	51,783	$	124,788	$	1,087,964	$	74,521
Truist Credit Facility	$	425,477	$	—	$	—	$	425,477	$	—
2026 Notes(2)		149,473		—		149,473		—		—
2026 Notes-2(2)		163,933		—		163,933		—		—
Total debt	$	738,883	$	—	$	313,406	$	425,477	$	—

In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSLF and PTSF II is measured using the net asset value per share (or its equivalent) as a practical expedient for fair value in accordance with the specialized accounting guidance for investment companies, and thus has not been classified in the fair value hierarchy.
We elected not to apply ASC 825-10 to the 2026 Notes, and the 2026 Notes-2 and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value.
Our U.S. Treasury Bills are classified as Level 2, as they were valued by the pricing service who utilize broker-supplied prices.

	Fair Value at September 30, 2024
Description ($ in thousands)	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value (1)
Debt investments	$	916,796	$	—	$	—	$	916,796	$	—
U.S. Government Securities(3)		99,632		—		99,632		—		—
Equity investments		311,622		—		—		235,573		76,049
Total investments		1,328,050		—		99,632		1,152,369		76,049
Cash and cash equivalents		49,861		49,861		—		—		—
Total investments and cash and cash equivalents	$	1,377,911	$	49,861	$	99,632	$	1,152,369	$	76,049
Truist Credit Facility	$	460,361	$	—	$	—	$	460,361	$	—
2026 Notes(2)		148,571		—		148,571		—		—
2026 Notes-2(2)		163,080		—		163,080		—		—
Total debt	$	772,012	$	—	$	311,651	$	460,361	$	—

In accordance with ASC Subtopic 820-10, Fair Value Measurements and Disclosures, or ASC 820-10, our equity investment in PSLF and PTSF II is measured using the net asset value per share (or its equivalent) as a practical expedient for fair value in accordance with the specialized accounting guidance for investment companies, and thus has not been classified in the fair value hierarchy.
We elected not to apply ASC 825-10 to the 2026 Notes, and the 2026 Notes-2 and thus the balance reported in the Consolidated Statement of Assets and Liabilities represents the carrying value.
Our U.S. Treasury Bills are classified as Level 2, as they were valued by the pricing service who utilize broker-supplied prices.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

The tables below show a reconciliation of the beginning and ending balances for investments measured at fair value using significant unobservable inputs (Level 3) ($ in thousands):

	Year Ended September 30, 2025
Description ($ in thousands)	Debt<br> investments			Equity<br> investments			Totals
Beginning balance	$	916,796		$	235,573		$	1,152,369
Net realized gain (loss)		(45,658	)		(6,800	)		(52,458	)
Net change in unrealized appreciation (depreciation)		9,159			46,520			55,679
Purchases, PIK interest, net discount accretion and non-cash exchanges		726,966			15,830			742,796
Sales, repayments and non-cash exchanges		(805,509	)		(4,913	)		(810,422	)
Transfers in/out of Level 3		—		—				—
Ending balance	$	801,754		$	286,210		$	1,087,964
Net change in unrealized appreciation reported within the net change in<br> unrealized appreciation on investments in our consolidated statements of operations<br> attributable to our Level 3 assets still held at the reporting date	$	(1,219	)	$	40,305		$	39,086
	Year Ended September 30, 2024
---	---	---	---	---	---	---	---	---	---
Description ($ in thousands)	Debt<br> investments			Equity<br> investments			Totals
Beginning balance	$	764,275		$	163,053		$	927,328
Net realized gain (loss)		(23,028	)		(10,053	)		(33,081	)
Net change in unrealized appreciation (depreciation)		(5,374	)		35,990			30,616
Purchases, PIK interest, net discount accretion and non-cash exchanges		726,526			59,520			786,046
Sales, repayments and non-cash exchanges		(545,603	)		(12,937	)		(558,540	)
Transfers in/out of Level 3	—			—				—
Ending balance	$	916,796		$	235,573		$	1,152,369
Net change in unrealized appreciation reported within the net change in<br> unrealized appreciation on investments in our consolidated statements of operations<br> attributable to our Level 3 assets still held at the reporting date	$	(21,133	)	$	25,461		$	4,328

The table below shows a reconciliation of the beginning and ending balances for liabilities measured at fair value using significant unobservable inputs (Level 3) ($ in thousands):

	Year Ended September 30,
Long-Term Credit Facility	2025			2024
Beginning balance (cost – $461,456 and $212,420, respectively)	$	460,361		$	206,940
Net change in unrealized appreciation (depreciation) included in earnings		116			4,385
Borrowings (1)		207,000			524,036
Repayments (1)		(242,000	)		(275,000	)
Transfers in and/or out of Level 3		—			—
Ending balance (cost – $426,456 and $461,456, respectively)	$	425,477		$	460,361
Temporary draws outstanding, at cost		—			—
Ending balance (cost – $426,456 and $461,456, respectively)	$	425,477		$	460,361

Excludes temporary draws.

As of September 30, 2025, we had outstanding non-U.S. dollar borrowings on our Truist Credit Facility. Net change in fair value on foreign currency translation on outstanding borrowings is listed below (£, CAD and $ in thousands):

Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation/<br>(depreciation)
British Pound	£	36,000	$	49,420	$	48,465	December 31, 2025	$	955
Canadian dollar		CAD 2,800	$	2,036	$	2,012	October 29, 2025	$	24

As of September 30, 2024, we had outstanding non-U.S. dollar borrowings on our Truist Credit Facility. Net change in fair value on foreign currency translation on outstanding borrowings is listed below (£, CAD and $ in thousands):

Foreign Currency	Amount Borrowed		Borrowing Cost		Current Value		Reset Date	Unrealized appreciation/<br>(depreciation)
British Pound	£	36,000	$	49,420	$	48,289	December 28, 2024	$	1,131
Canadian dollar		CAD 2,800	$	2,036	$	2,073	October 23, 2024	$	(37	)

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

We elected to use the fair value option for the Truist Credit Facility to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we incurred expenses of $0.3 million, zero, and zero related to amendment costs on the Truist Credit Facility during the years ended September 30, 2025, 2024, and 2023, respectively. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets and Liabilities and changes in fair value of the Truist Credit Facility are reported in our Consolidated Statements of Operations. We did not elect to apply ASC 825-10 to any other financial assets or liabilities, including the 2024 Notes, the 2026 Notes, the 2026 Notes-2, and the SBA debentures.

For the year ended September 30, 2025, 2024, and 2023 the Credit Facility had a net change in unrealized appreciation (depreciation) of $(0.1) million, $(4.4) million and $(3.8) million, respectively. As of September 30, 2025, 2024, and 2023, the net unrealized appreciation (depreciation) on Truist Credit Facility totaled $(1.0) million, $(1.1) million, and $(5.5) million, respectively. We use an independent valuation service to measure the fair value of our Truist Credit Facility in a manner consistent with the valuation process that our board of directors uses to value our investments.

6. TRANSACTIONS WITH AFFILIATED COMPANIES

An affiliated portfolio company is a company in which we have ownership of 5% or more of its voting securities. A portfolio company is generally presumed to be a non-controlled affiliate when we own at least 5% but 25% or less of its voting securities and a controlled affiliate when we own more than 25% of its voting securities. Transactions related to our funded investments with both controlled and non-controlled affiliates for the year ended September 30, 2025 and 2024 were as follows ($ in thousands):

Name of Investment	Fair Value at September 30, 2024		Gross<br>Additions(1)		Gross<br>Reductions			Net Change in<br>Appreciation /<br>(Depreciation)			Fair Value at September 30, 2025		Interest<br>Income		PIK<br>Income		Dividend Income/Other		Net Realized<br>Gains<br>(Losses)
Controlled Affiliates
AKW Holdings Limited	$	60,798	$	270	$	(3,361	)	$	30,939		$	88,646	$	6,375	$	—	$	27	$	—
Flock Financial, LLC		48,839		823		—			(348	)		49,314		2,182		823		—		—
JF Intermediate, LLC<br> (JF Holdings Corp.)		90,858		512		(49,625	)		26,587			68,332		4,282		—		—		—
Pragmatic Institute, LLC (3)		—		15,108		(108	)		(4,125	)		10,875		3		723		—		—
PennantPark Senior Loan Fund, LLC (2)		183,809		39,323		—			(15,332	)		207,800		17,207		—		20,471		—
Total Controlled Affiliates	$	384,304	$	56,036	$	(53,094	)	$	37,721		$	424,967	$	30,049	$	1,546	$	20,498	$	—
Non-Controlled Affiliates
Cascade Environmental Holdings, LLC	$	29,262	$	—	$	—		$	(24,371	)	$	4,891	$	—	$	—	$	—	$	—
Walker Edison Furniture Company LLC (4)		4,161		2,069		(22,243	)		16,013			—		—		—		—		(21,946	)
Total Non-Controlled Affiliates	$	33,423	$	2,069	$	(22,243	)	$	(8,358	)	$	4,891	$	—	$	—	$	—	$	(21,946	)
Total Controlled and<br> Non-Controlled Affiliates	$	417,727	$	58,105	$	(75,337	)	$	29,363		$	429,858	$	30,049	$	1,546	$	20,498	$	(21,946	)

Includes PIK.
We and Pantheon are the members of PSLF, a joint venture formed as a Delaware limited liability company that is not consolidated by us for financial reporting purposes. The members of PSLF make investments in the PSLF in the form of subordinated debt and equity interests, and all portfolio and other material decision regarding PSLF must be submitted to PSFL’s board of directors or investment committee, both of which are comprised of two members appointed by each of us and Pantheon. Because management of PSLF is shared equally between us and Pantheon, we do not believe we control PSLF for purposes of the 1940 Act or otherwise.
Pragmatic Institute, LLC became a controlled affiliate during the quarter ended March 31, 2025.
Walker Edison Furniture Company, LLC equity investment was realized during the quarter ended September 30, 2025 and was no longer a controlled affiliate as of that date.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Name of Investment	Fair Value at<br>September 30, 2023		Gross<br>Additions(1)		Gross<br>Reductions			Net Change in<br>Appreciation /<br>(Depreciation)			Fair Value at September 30, 2024		Interest<br>Income		PIK<br>Income		Dividend Income		Net Realized<br>Gains<br>(Losses)
Controlled Affiliates
AKW Holdings Limited	$	51,660	$	2,687	$	—		$	6,451		$	60,798	$	3,820	$	2,687	$	—	$	—
Flock Financial, LLC (5)		32,300		20,816		(5,306	)		1,029			48,839		1,341		1,397		—		(5,305	)
JF Intermediate, LLC (JF Holdings Corp.) (2)		8,759		51,912		(375	)		30,562			90,858		5,536		—		—		—
Mailsouth Inc.		—		—		(28,899	)		28,899			—		—		—		—		(28,899	)
PennantPark Senior Loan Fund, LLC (3)		164,408		22,353		—			(2,952	)		183,809		15,041		—		21,605		—
RAM Energy LLC (4)		—		—		—			—			—		—		—		—		(795	)
Total Controlled Affiliates	$	257,127	$	97,768	$	(34,580	)	$	63,989		$	384,304	$	25,738	$	4,084	$	21,605	$	(34,999	)
Non-Controlled Affiliates
Cascade Environmental Holdings, LLC	$	32,105	$	—	$	—		$	(2,843	)	$	29,262	$	—	$	—	$	—	$	—
Walker Edison Furniture Company LLC		13,907		3,012		—			(12,758	)		4,161		—		347		—		—
Total Non-Controlled Affiliates	$	46,012	$	3,012	$	—		$	(15,601	)	$	33,423	$	—	$	347	$	—	$	—
Total Controlled and<br> Non-Controlled Affiliates	$	303,139	$	100,780	$	(34,580	)	$	48,388		$	417,727	$	25,738	$	4,431	$	21,605	$	(34,999	)

Includes PIK.
JF Intermediate, LLC became a controlled affiliate during the quarter ended December 31, 2023
We and Pantheon are the members of PSLF, a joint venture formed as a Delaware limited liability company that is not consolidated by us for financial reporting purposes. The members of PSLF make investments in the PSLF in the form of subordinated debt and equity interests, and all portfolio and other material decision regarding PSLF must be submitted to PSFL’s board of directors or investment committee, both of which are comprised of two members appointed by each of us and Pantheon. Because management of PSLF is shared equally between us and Pantheon, we do not believe we control PSLF for purposes of the 1940 Act or otherwise.
RAM Energy LLC was fully realized in January 2023, during the quarter ended June 30, 2024 there was realized loss due to reduction of the escrow receivable.
Flock Financial, LLC became a controlled affiliate during the quarter ended June 30, 2024.

7. CHANGE IN NET ASSETS FROM OPERATIONS PER COMMON SHARE

The following information sets forth the computation of basic and diluted per share net increase in net assets resulting from operations ($ in thousands, except per share data):

	Years Ended September 30,
	2025		2024		2023
Numerator for net increase (decrease) in net assets resulting from operations	$	32,726	$	48,851	$	(33,807	)
Denominator for basic and diluted weighted average shares		65,296,094		65,246,011		65,224,500
Basic and diluted net increase (decrease) in net assets per share resulting from operations	$	0.50	$	0.75	$	(0.52	)

8. TAXES AND DISTRIBUTIONS

Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal tax regulations, which may materially differ from amounts determined in accordance with GAAP. These book-to-tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are reclassified to undistributed net investment income, accumulated net realized gain or paid-in-capital, as appropriate. Distributions from net realized capital gains, if any, are normally declared and paid annually, but the Company may make distributions on a more frequent basis to comply with the distribution requirements for RICs under the Code.

As of September 30, 2025 and 2024, the cost of investments for federal income tax purposes approximates the amortized cost reported in the Consolidated Schedule of Investments.

The following amounts were reclassified for tax purposes ($ in thousands):

	Years Ended September 30,
	2025			2024			2023
Increase (Decrease) in paid-in capital	$	(3,462	)	$	(2,800	)	$	(1,703	)
Increase (Decrease) in accumulated net realized gain		68			(11,993	)		(1,494	)
Increase in undistributed net investment income		3,394			14,793			3,197

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

The following reconciles net (decrease) increase in net assets resulting from operations to taxable income ($ in thousands):

	Years Ended September 30,
	2025			2024			2023
Net increase (decrease) in net assets resulting from operations	$	32,725		$	48,852		$	(33,807	)
Net realized (gain) loss on investments		52,434			33,646			156,757
Net change in unrealized (appreciation) depreciation on investments and debt		(39,108	)		(22,428	)		(57,417	)
Other book-to-tax differences		(1,551	)		9,268			(6,006	)
Other non-deductible expenses		3,372			3,245			5,766
Taxable income before dividends paid deduction	$	47,872		$	72,583		$	65,293

The components of undistributed taxable income on a tax basis and reconciliation to accumulated deficit on a book basis are as follows:

	Years Ended September 30,
	2025			2024			2023
Undistributed net investment income – tax basis	$	45,948		$	65,962		$	62,710
Short-term realized loss carried forward		(6,164	)		(3,397	)		(1,699	)
Long-term realized loss carried forward		(336,619	)		(287,545	)		(379,074	)
Distributions payable and other book to tax differences		(31,184	)		(37,435	)		83,860
Net unrealized appreciation (depreciation) on investments and debt		51,398			12,290			(10,141	)
Total accumulated deficit – book basis	$	(276,621	)	$	(250,125	)	$	(244,344	)

The tax characteristics of distributions declared are as follows:

	Years Ended September 30,
	2025		2024		2023
Ordinary income (including short-term gains, if any)	$	62,684	$	57,420	$	49,571
Long-term capital gain		—		—		—
Total distributions	$	62,684	$	57,420	$	49,571
Total distributions declared per share	$	0.96	$	0.88	$	0.76

9. CASH AND CASH EQUIVALENTS

Cash equivalents represent cash in money market funds pending investment in longer-term portfolio holdings. Our portfolio may consist of temporary investments in U.S. Treasury Bills (of varying maturities), repurchase agreements, money market funds or repurchase agreement-like treasury securities. These temporary investments with original maturities of 90 days or less are deemed cash equivalents and are included in the Consolidated Schedule of Investments. At the end of each fiscal quarter, we may take proactive steps to preserve investment flexibility for the next quarter by investing in cash equivalents, which is dependent upon the composition of our total assets at quarter-end. We may accomplish this in several ways, including purchasing U.S. Treasury Bills and closing out positions on a net cash basis after quarter-end, temporarily drawing down on the Truist Credit Facility, or utilizing repurchase agreements or other balance sheet transactions as are deemed appropriate for this purpose. These amounts are excluded from average adjusted gross assets for purposes of computing the Investment Adviser’s management fee. U.S. Treasury Bills with maturities greater than 60 days from the time of purchase are valued consistent with our valuation policy. As of September 30, 2025 and 2024, cash and cash equivalents consisted of money market funds, and non-money market in the amounts of $30.7 million and $21.1 million and $38.8 million and $11.1 million at fair value, respectively.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

10. FINANCIAL HIGHLIGHTS

Below are the financial highlights for each of the years ended September 30, ($in thousands, except per share data):

	2025			2024			2023			2022			2021
Per Share Data:
Net asset value, beginning of year	$	7.56		$	7.70		$	8.98		$	9.85		$	7.84
Net investment income (1)		0.71			0.92			1.00			0.66			0.54
Net realized and unrealized (loss) gain (1)		(0.21	)		(0.17	)		(1.52	)		(1.03	)		1.94
Net (decrease) increase in net assets resulting from operations (1)		0.50			0.75			(0.52	)		(0.37	)		2.48
Distributions to stockholders (1), (2)
Distribution of net investment income		(0.96	)		(0.88	)		(0.76	)		(0.56	)		(0.48	)
Distribution of realized gains		—			—			—			—			—
Total distributions to stockholders		(0.96	)		(0.88	)		(0.76	)		(0.56	)		(0.48	)
(Dilutive) effect of common stock issuance		—			(0.01	)		—			—			—
Repurchase of common stock (1)		—			—			—			0.06			—
Net asset value, end of year (6)	$	7.11		$	7.56		$	7.70		$	8.98		$	9.85
Per share market value, end of year	$	6.71		$	6.99		$	6.58		$	5.46		$	6.49
Total return (3)		10.21	%		20.54	%		13.64	%		(8.42	)%		120.98	%
Shares outstanding at end of year		65,296,094			65,296,094			65,224,500			65,224,500			67,045,105
Ratios / Supplemental Data:
Ratio of operating expenses to average net assets (4), (6)		7.13	%		7.73	%		7.75	%		4.17	%		3.74	%
Ratio of interest and expenses on debt to average net assets (5)		8.56	%		9.06	%		7.55	%		5.19	%		3.73	%
Ratio of total expenses to average net assets (5), (6)		15.69	%		16.78	%		15.30	%		9.36	%		7.47	%
Ratio of net investment income to average net assets (5)		9.47	%		12.04	%		12.56	%		6.74	%		6.04	%
Net assets at end of year	$	463,950		$	493,908		$	502,187		$	585,565		$	660,144
Weighted average debt outstanding (7)	$	686,808		$	693,573		$	656,776		$	695,267		$	649,666
Weighted average debt per share (1), (7)	$	10.52		$	10.63		$	10.07		$	10.49		$	9.69
Asset coverage per unit (8)	$	1,627		$	1,637		$	1,952		$	1,855		$	2,208
Average market value per unit (9)	$	—		$	—		$	—		$	—		$	25.13
Portfolio turnover ratio		65.30	%		43.99	%		32.58	%		70.41	%		37.74	%

* The expense and investment income ratios do not reflect the Company's proportionate share of income and expenses of PSLF and PTSF II.

Based on the weighted average shares outstanding for the respective periods.
The tax status of distributions is calculated in accordance with income tax regulations, which may differ from amounts determined under GAAP, and reported on Form 1099-DIV each calendar year.
Based on the change in market price per share during the period and assumes distributions, if any, are reinvested.
Excludes debt related costs.
Includes interest and expenses on debt (annualized) as well as Truist Credit Facility amendment and debt issuance costs, if any (not annualized).
Does not foot due to rounding, as applicable
Includes SBA debentures outstanding
The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the senior securities representing indebtedness at par (changed from fair value). This asset coverage ratio is multiplied by $1,000 to determine the asset coverage per unit. These amounts exclude SBA debentures from our asset coverage per unit computation pursuant to exemptive relief received from the SEC in June 2011.
The average market value per unit is derived based on the daily closing price of the 2024 Notes trading on The Nasdaq Global Select Market under the symbol “PNNTG,” which were issued in increments of $25 per unit and commenced trading on September 30, 2019. The 2024 Notes were redeemed in full on November 13, 2021 and no amounts were outstanding as of September 30, 2025, or 2024.

11. DEBT

The annualized weighted average cost of debt for the years ended September 30, 2025, 2024, and 2023, inclusive of the fee on the undrawn commitment and amendment costs on the Truist Credit Facility and amortized upfront fees on the 2026 Notes and 2026 Notes-2, was 6.1%, 6.5%, and 6.0%, respectively. As of September 30, 2025, in accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that we are in compliance with the 150% asset coverage ratio requirement after such borrowing, excluding SBA debentures, pursuant to exemptive relief from the SEC received in June 2011.

On February 5, 2019, our stockholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the Small Business Credit Availability Act, or SBCAA) as approved by our board of directors on November 13, 2018. As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of September 30, 2025 and 2024, our asset coverage ratio, as computed in accordance with the 1940 Act, was 163% and 164%, respectively.

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

Truist Credit Facility

235

basis points over SOFR. As of September 30, 2025 and 2024, we had $73.5 million and $13.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions. The Truist Credit Facility is secured by substantially all of our assets. As of September 30, 2025, we were in compliance with the terms of the Truist Credit Facility.

SBA Debentures

SBIC II was historically able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid-in and is subject to customary regulatory requirements including an examination by the SBA. We previously funded SBIC II with $75.0 million of equity capital and it had SBA debentures outstanding of zero as of September 30, 2025 and 2024. SBA debentures are non-recourse to us and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. Under current SBA regulations, a SBIC may individually borrow to a maximum of $175.0 million, which is up to twice its potential regulatory capital, and as part of a group of SBICs under common control may borrow a maximum of $350 million in the aggregate.

2026 Notes

In April 2021, we issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.50% per year, commencing November 1, 2021. The effective interest rate is 4.58%. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

2026 Notes-2

In October 2021, we issued $165.0 million in aggregate principal amount of our 2026 Notes-2 at a public offering price per note of 99.4%. Interest on the 2026 Notes-2 is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.00% per year, commencing May 1, 2022. The effective interest rate is 4.14%. The 2026 Notes-2 mature on November 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes-2 are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes-2 are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes-2 on any securities exchange or automated dealer quotation system.

12. COMMITMENTS AND CONTINGENCIES

From time to time, we, the Investment Adviser or the Administrator may be a party to legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

Unfunded debt and equity investments, if any, are disclosed in the Consolidated Schedules of Investments. Under these arrangements, we may be required to supply a letter of credit to a third party if the portfolio company were to request a letter of credit. As of September 30, 2025 and 2024, we had $344.6 million and $373.9 million, respectively, in commitments to fund investments. Additionally, the Company had unfunded commitments of up to $13.2 million and $52.5 million to PSLF as of September 30, 2025 and 2024, respectively, that may be contributed primarily for the purpose of funding new investments approved by PSLF board of directors or investment committee.

13. UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES

We must determine which, if any, of our unconsolidated controlled portfolio companies is a "significant subsidiary" within the meaning of Regulation S-X. We have determined that, as of September 30, 2025, PennantPark Senior Loan Fund, LLC, JF Intermediate, LLC, and AKW Holdings Limited triggered at least one of the significance tests. In accordance with Rule 3-09, separate audited financial statements of JF Intermediate, LLC, and AKW Holdings Limited for the years ended September 30, 2025, 2024, and 2023 will be filed via Form 10-K/A at a later date. Similar, in accordance with Rule 3-09 of Regulation S-X, separate audited financial statements of PennantPark Senior Loan Fund, LLC for the years ended September 30, 2025, 2024, and 2023 are being filed herein as Exhibit 99.3 and Exhibit 99.4.

In December 2023, JF Intermediate LLC became controlled affiliate. Below is certain selected key financial data from JF Intermediate, LLC Balance Sheet at September 30, 2025 and 2024, and the twelve months ended September 30, 2025, 2024 and 2023 Income Statement for the periods in which our investment in JF Intermediate, LLC exceeded the threshold in at least one of the tests under Rule 3-09 of Regulation S-X (amounts in thousands).

JF Intermediate, LLC (Unaudited):

Balance Sheet	September 30, 2025		September 30, 2024
Current assets	$	303,498	$	278,646
Noncurrent assets		121,000		120,808
Current liabilities		192,665		181,517
Noncurrent liabilities		280,683		246,278

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

September 30, 2025

	Year Ended September 30,
Income Statement	2025			2024			2023
Total revenue	$	916,105		$	813,923		$	570,348
Total expenses		936,468			836,196			584,776
Net loss	$	(20,363	)	$	(22,273	)	$	(14,428	)

In March 2018, AKW Holdings Limited became controlled affiliate. Below is certain selected key financial data from AKW Holdings Limited Balance Sheet at September 30, 2025 and 2024, and the twelve months ended September 30, 2025, 2024 and 2023 Income Statement for the periods in which our investment in AKW Holdings Limited exceeded the threshold in at least one of the tests under Rule 3-09 of Regulation S-X (amounts in thousands).

AKW Holdings Limited (Unaudited):

Balance Sheet	September 30, 2025		September 30, 2024
Current assets	$	38,987	$	41,980
Noncurrent assets		9,620		10,016
Current liabilities		16,042		15,464
Noncurrent liabilities		53,902		56,665
	Years Ended September 30,
---	---	---	---	---	---	---	---	---	---
Income Statement	2025			2024			2023
Total revenue	$	93,718		$	86,518		$	79,006
Total expenses		93,754			90,016			82,325
Net loss	$	(36	)	$	(3,498	)	$	(3,319	)

14. SEGMENT REPORTING

The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation

through debt and equity investments. The CODM is comprised of the Company's Chief Executive Officer and Chief Financial Officer. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primary bases on the Company's net increase (decrease) in net assets resulting from operations ("Net Income") and net investment income ("NII"). The CODM utilizes Net Income and NII as the key metrics in determining the amount of dividends to be distributed to the Company's stockholders. As the Company's operations comprise of single reporting segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities as 'total assets" and significant segment expenses are listed on accompanying consolidated statements of operations.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

a)Evaluation of Disclosure Controls and Procedures

As of September 30, 2025, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, due to the material weakness in the Company’s internal control over financial reporting described in Management’s Report on Internal Control Over Financial Reporting, which appears on page 63 of this Form 10-K, our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Specifically, a material weakness was identified in the operation of controls related to the Company's quarterly review of equity investment valuation with respect to the allocation of value of the portfolio company to the Company’s holdings. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures. Notwithstanding the material weakness referenced above, management believes that the financial statements included in this Annual Report on Form 10-K present fairly, in all material respects, the Company’s financial position, results of its operations, changes in net assets and cash flows for the periods presented. We have begun the process of, and are focused on, further enhancing effective internal control measures to improve our internal control over financial reporting and remediate the material weakness noted above. Our internal control remediation efforts include the following:

Enhance existing review controls of equity investments related to the allocation of the portfolio company’s enterprise value to the Company’s holdings to ensure allocations are consistent with the relevant and respective source document; and
Enhancing policies and procedures to demonstrate a commitment to improving our overall control environment.

We believe our planned actions to enhance our processes and controls will address these material weaknesses, but these actions are subject to ongoing management evaluation, and we will need a period of execution to demonstrate remediation. We are committed to the continuous improvement of our internal control over financial reporting and will continue to diligently review our internal control over financial reporting.

b)Management’s Report on Internal Control Over Financial Reporting

Management’s Report on Internal Control Over Financial Reporting, which appears on page 63 of this Form 10-K, is incorporated by reference herein.

c)Changes in Internal Controls Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recently completed fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Please see Management’s Report on Internal Control Over Financial Reporting, which appears on page 63 of this Form 10-K for a description of a material weakness identified by Management.

Item 9B. Other Information

On November 20, 2025, the board of directors of the Company approved an amended Joint Code of Ethics (the “Amended Code”) applicable to, among others, the Company and the Investment Adviser. The changes were designed to include coverage of PennantPark Private Income Fund, a privately traded BDC, its investment adviser, PennantPark Private Income Fund Advisers LLC and PennantPark Enhanced Income Fund, a registered closed-end interval fund.

The amendments reflected in the Amended Code did not relate to or result in any waiver, explicit or implicit, of any provision of the previous Joint Code of Ethics.

The foregoing description of the revisions reflected in the Amended Code is qualified in its entirety by reference to the full text of the Amended Code, a copy of which is filed as Exhibit 14.1 to this Annual Report on Form 10-K. A copy of the Amended Code is also available on the Company’s website at www.pennantpark.com.

10b5-1 Disclosure

None of the officers or directors of the Company have adopted or terminated any Rule 10b5-1 trading arrangements applicable to them (if any) or the Company.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

10.6	Second Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of September 4, 2019, by and among PennantPark Investment Corporation, as borrower, the lenders party thereto, SunTrust Bank, as administrative agent and collateral agent, and solely with respect to Section 4.9, PNNT CI (GALLS) Prime Investment Holdings, LLC, PNNT Investment Holdings, LLC, PNNT New Gulf Resources, LLC, PNNT ecoserve, LLC and PNNT Cascade Environmental Holdings, LLC (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 814-00736), filed on September 4, 2019).
10.7	Amended and Restated Limited Liability Company Agreement of PennantPark Senior Loan Fund, LLC, dated as of July 31, 2020, by and among PennantPark Investment Corporation, Pantheon Private Debt Program SCSp SICAV – RAIF In Respect Of Its Compartment Pantheon Senior Debt Secondaries II (USD) and Solutio Premium Private Debt I SCSp (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 814-00736), filed on August 4, 2020).
10.8	First Amendment to the Amended and Restated Limited Liability Company Agreement of PennantPark Senior Loan Fund, LLC, dated as of October 31, 2020, by and among PennantPark Investment Corporation, Pantheon Private Debt Program SCSp SICAV – RAIF In Respect Of Its Compartment Pantheon Senior Debt Secondaries II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Pantheon Credit Opportunities II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Tubera Credit 2020 and Solutio Premium Private Debt I SCSp (Incorporated by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K (File No. 814-00736), filed on November 19, 2020).
10.9	Second Amendment to the Amended and Restated Limited Liability Company Agreement of PennantPark Senior Loan Fund, LLC, dated as of October 31, 2020, by and among PennantPark Investment Corporation, Pantheon Private Debt Program SCSp SICAV – RAIF In Respect Of Its Compartment Pantheon Senior Debt Secondaries II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Pantheon Credit Opportunities II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Tubera Credit 2020 and Solutio Premium Private Debt I SCSp (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 814-00736), filed on September 4, 2024).
10.10	Fifth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement and Second Amended and Restated Guarantee and Security Agreement, dated as of July 29, 2022, among the Registrant, the lenders party thereto and Truist Bank, as administrative agent for the lenders (Incorporated by reference to Exhibit 10.2 to the Registrant’s Form 10-Q (File No. 814-00736), filed on August 3, 2022).
10.11	Equity Distribution Agreement, dated as of June 4, 2024, by and among PennantPark Investment Corporation, PennantPark Investment Advisers, LLC, PennantPark Investment Administration, LLC and Truist Securities, Inc., as the sales agent (Incorporated by reference to Ex. 1.1 to the Registrant’s Current Report on Form 8-K (File No. 814-00736), filed on June 4, 2024).
10.12	Equity Distribution Agreement, dated as of June 4, 2024 by and among PennantPark Investment Corporation, PennantPark Investment Advisers, LLC, PennantPark Investment Administration, LLC and Keefe, Bruyette & Woods, Inc., as the sales agent (Incorporated by reference to Ex. 1.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00736), filed on June 4, 2024).
10.13	Sixth Amendment to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of June 25, 2024, by and among PennantPark Investment Corporation and Truist Bank, as administrative agent. (Incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No. 814-00736), filed on August 7, 2024).
10.14	Notice of Commitment Increase Request, dated as of February 7, 2025, from PennantPark Investment Corporation to Truist Bank, as Administrative Agent (Incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q, (File No. 814-00736), filed on February 10, 2025).
14.1*	Joint Code of Ethics of the Registrant
19.1	Insider Trading Policy (included in the Joint Code of Ethics of the Registrant) (Incorporated by reference to Exhibit 14.1 to this Annual Report on Form 10-K).
21.1*	Subsidiaries of the Registrant.
23.1*	Consent of RSM US LLP.
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.
32.1*	Certification of Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
97.1	Clawback Policy (Incorporated by reference to Exhibit 97.1 to the Registrant's Annual Report on Form 10-K (File No. 814-00736), filed on December 8, 2023).
99.1	Privacy Policy of the Registrant (Incorporated by reference to Exhibit 99.1 to the Registrant's Annual REport on Form 10-K (File No. 814-00736), filed on December 8, 2023).
99.2*	Report of RSM US LLP on Senior Securities Table.
99.3*	Audited Consolidated Financial Statement of PennantPark Senior Loan Fund LLC for the Year Ended September 30, 2025 and 2024.
99.4*	Audited Consolidated Financial Statement of PennantPark Senior Loan Fund LLC for the Year Ended September 30, 2024 and 2023.
101.INS*	Inline XBRL Instance Document
191.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Extension Calculation Linkbase Document
---	---
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Filed herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 24, 2025.

By:	/s/ ARTHUR H. PENN
Name:	Arthur H. Penn
Title:	Chief Executive Officer and Chairman of the Board of Directors

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ ARTHUR H. PENN	Chief Executive Officer and Chairman of the Board of Directors <br>(Principal Executive Officer)	November 24, 2025
Arthur H. Penn
/s/ RICHARD T. ALLORTO, JR.	Chief Financial Officer and Treasurer <br>(Principal Financial and Accounting Officer)	November 24, 2025
Richard T. Allorto, Jr.
/s/ ADAM K. BERNSTEIN	Director	November 24, 2025
Adam K. Bernstein
/s/ JEFFREY FLUG	Director	November 24, 2025
Jeffrey Flug
/s/ MARSHALL BROZOST	Director	November 24, 2025
Marshall Brozost
/s/ SAMUEL L. KATZ	Director	November 24, 2025
Samuel L. Katz
/s/ JOSÉ A. BRIONES, JR	Director	November 24, 2025
José A. Briones, Jr.

EX-10.5

FOURTH AMENDED AND RESTATED

INVESTMENT ADVISORY MANAGEMENT AGREEMENT

BETWEEN

PENNANTPARK INVESTMENT CORPORATION

AND

PENNANTPARK INVESTMENT ADVISERS, LLC

Agreement made this 20th day of May 2024, by and between PENNANTPARK INVESTMENT CORPORATION, a Maryland corporation (the “Corporation”), and PENNANTPARK INVESTMENT ADVISERS, LLC, a Delaware limited liability company (the “Adviser”).

WHEREAS, the Corporation operates as a closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the “Investment Company Act”);

WHEREAS, the Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”);

WHEREAS, the Corporation and the Adviser are parties to that certain third amended and restated investment advisory management agreement dated February 6, 2018 by and between the Corporation and the Adviser (the “Prior Agreement”);

WHEREAS, the Corporation and the Adviser desire to amend and restate the Prior Agreement to set forth the terms and conditions for the continued provision by the Adviser of investment advisory services to the Corporation; and

WHEREAS, the Corporation’s board of directors has determined that such amendment and restatement clarifies the intent of the Prior Agreement in a manner that is consistent with the Corporation’s public disclosures and is not detrimental to the Corporation.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

Duties of the Adviser.

(a) The Corporation hereby employs the Adviser to act as the investment adviser to the Corporation and to manage the investment and reinvestment of the assets of the Corporation, subject to the supervision of the Board of Directors of the Corporation, for the period and upon the terms herein set forth, (i) in accordance with the investment objective, policies and restrictions that are set forth in the Corporation’s registration statement, as the same may be amended from time to time, (ii) in accordance with the Investment Company Act and (iii) during the term of this Agreement in accordance with all other applicable federal and state laws, rules and regulations, and the Corporation’s charter and by-laws. Without limiting the generality of the foregoing, the Adviser shall, during the term and subject to the provisions of this Agreement, (i) determine the composition of the portfolio of the Corporation, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify, evaluate and negotiate the structure of the investments made by the Corporation; (iii) close and monitor the Corporation’s investments; determine the securities and other assets that the Corporation will purchase, retain, or sell; perform due diligence on prospective portfolio companies; and (vi) provide the Corporation with such other investment advisory, research and related services as the Corporation may, from time to

time, reasonably require for the investment of its funds. The Adviser shall have the power and authority on behalf of the Corporation to effectuate its investment decisions for the Corporation, including the execution and delivery of all documents relating to the Corporation’s investments and the placing of orders for other purchase or sale transactions on behalf of the Corporation. In the event that the Corporation determines to acquire debt financing, the Adviser will arrange for such financing on the Corporation’s behalf, subject to the oversight and approval of the Corporation’s Board of Directors. If it is necessary for the Adviser to make investments on behalf of the Corporation through a special purpose vehicle, the Adviser shall have authority to create or arrange for the creation of such special purpose vehicle and to make such investments through such special purpose vehicle in accordance with the Investment Company Act.

(b) The Adviser hereby accepts such employment and agrees during the term hereof to render the services described herein for the compensation provided herein.

(c) Subject to the requirements of the Investment Company Act, the Adviser is hereby authorized to enter into one or more sub-advisory agreements with other investment advisers (each, a “Sub-Adviser”) pursuant to which the Adviser may obtain the services of the Sub-Adviser(s) to assist the Adviser in fulfilling its responsibilities hereunder. Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities or other investments based upon the Corporation’s investment objective and policies, and work, along with the Adviser, in structuring, negotiating, arranging or effecting the acquisition or disposition of such investments and monitoring investments on behalf of the Corporation, subject to the oversight of the Adviser and the Corporation. The Adviser, and not the Corporation, shall be responsible for any compensation payable to any Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall be in accordance with the requirements of the Investment Company Act and other applicable federal and state law.

(d) The Adviser shall for all purposes herein provided be deemed to be an independent contractor and, except as expressly provided or authorized herein, shall have no authority to act for or represent the Corporation in any way or otherwise be deemed an agent of the Corporation.

(e) The Adviser shall keep and preserve, in the manner and for the period that would be applicable to investment companies registered under the Investment Company Act any books and records relevant to the provision of its investment advisory services to the Corporation and shall specifically maintain all books and records with respect to the Corporation’s portfolio transactions and shall render to the Corporation’s Board of Directors such periodic and special reports as the Board may reasonably request. The Adviser agrees that all records that it maintains for the Corporation are the property of the Corporation and will surrender promptly to the Corporation any such records upon the Corporation’s request, provided that the Adviser may retain a copy of such records.

Corporation’s Responsibilities and Expenses Payable by the Corporation. All investment professionals of the Adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, will be provided and paid for by the Adviser and not by the Corporation. The Corporation will bear all other costs and expenses of its operations and transactions, including (without limitation) those relating to: organization and offering; calculating the Corporation’s net asset value (including the cost and expenses of any independent valuation firm); expenses incurred by the Adviser payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for the Corporation and in monitoring the Corporation’s investments and performing due diligence (including related legal expenses) on its prospective portfolio companies; interest payable on debt, if any, incurred to finance the Corporation’s investments and expenses related to unsuccessful portfolio acquisition efforts; offerings of the Corporation’s common stock and other

securities; investment advisory and management fees; administration fees payable under the Administration Agreement between the Corporation and PennantPark Investment Administration, LLC (the “Administrator”), the Corporation’s administrator; fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments, including costs associated with meeting potential financial sponsors; transfer agent and custodial fees; federal and state registration fees; all costs of registration and listing the Corporation’s shares on any securities exchange; federal, state and local taxes; independent Directors’ fees and expenses; costs of preparing and filing reports or other documents required by the Securities and Exchange Commission; costs of any reports, proxy statements or other notices to stockholders, including printing costs; costs associated with individual or group stockholders; the Corporation’s allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums; direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and all other expenses incurred by the Corporation or the Administrator in connection with administering the Corporation’s business, including payments under the Administration Agreement between the Corporation and the Administrator based upon the Corporation’s allocable portion of the Administrator’s overhead in performing its obligations under

the Administration Agreement, including rent and the allocable portion of the cost of the Corporation’s chief compliance officer and chief financial officer and their respective staffs.

Compensation of the Adviser. The Corporation agrees to pay, and the Adviser agrees to accept, as compensation for the services provided by the Adviser hereunder, a base management fee (“Base Management Fee”) and an incentive fee (“Incentive Fee”) as hereinafter set forth. The Corporation shall make any payments due hereunder to the Adviser or to the Adviser’s designee as the Adviser may otherwise direct. To the extent permitted by applicable law, the Adviser may elect, or adopt a deferred compensation plan pursuant to which it may elect, to defer all or a portion of its fees hereunder for a specified period of time.

(a) Effective as of February 5, 2019, the Base Management Fee shall be calculated at an annual rate of 1.50% of the Corporation’s “average adjusted gross assets,” which equals the Corporation’s gross assets (net of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and adjusted to exclude cash, cash equivalents and unfunded commitments, if any); provided, however, that the Base Management Fee shall be calculated at an annual rate of 1.00% of the average adjusted gross assets of the Corporation that exceeds 200% of the Corporation’s total net assets as of the end of the most recently completed calendar quarter. The Base Management Fee will be payable quarterly in arrears and will be calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. Base Management Fees for any partial month or quarter will be appropriately prorated.

(b) Effective as of January 1, 2018, the Incentive Fee shall consist of two parts, as follows:

(i)

One part will be calculated and payable quarterly in arrears based on the Corporation’s pre-Incentive Fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-Incentive Fee net investment income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus the Corporation’s operating expenses for the quarter (including the Base Management Fee, any expenses payable under the Administration Agreement, and any interest expense and distribution paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that the Corporation has not yet received in cash. Pre-Incentive Fee net investment income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee net investment income, expressed as a percentage of the value of the Corporation’s net assets at the end of the immediately preceding calendar quarter, will be compared to a “hurdle rate” of 1.75% per quarter (7.00% annualized). The Corporation will pay the Adviser an Incentive Fee with respect to the Corporation’s pre-Incentive Fee net investment income in each calendar quarter as follows; (1) no Incentive Fee in any calendar quarter in which the Corporation’s pre-Incentive Fee net investment income does not exceed the hurdle rate of 1.75%; (2) 100% of the Corporation’s pre-Incentive Fee net investment income with respect to that portion of such pre-Incentive Fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1212% in any calendar quarter (8.4848% annualized); and (3) 17.5% of the amount of the Corporation’s pre-Incentive Fee net investment income, if any, that exceeds 2.1212% in any calendar quarter. These calculations will be appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the relevant quarter.

(ii)

The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears as of the end of each calendar year (or upon termination of this Agreement as set forth below), commencing on December 31, 2018, and will equal 17.5% of the Corporation’s realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid Capital Gains Fees. In the event that this Agreement shall terminate as of a date that is not a calendar year end, the termination date shall be treated as though it were a calendar year end for purposes of calculating and paying a Capital Gains Fee.

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Covenants of the Adviser. The Adviser covenants that it is registered as an investment adviser under the Advisers Act. The Adviser agrees that its activities will at all times be in compliance in all material respects with all applicable federal and state laws governing its operations and investments.
Excess Brokerage Commissions. The Adviser is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Corporation to pay a member of a national securities exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Adviser determines in good faith, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities, that such

amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Corporation’s portfolio, and constitutes the best net results for the Corporation.

Limitations on the Employment of the Adviser. The services of the Adviser to the Corporation are not exclusive, and the Adviser may engage in any other business or render similar or different services to others including, without limitation, the direct or indirect sponsorship or management of other investment based accounts or commingled pools of capital, however structured, having investment objectives similar to those of the Corporation, so long as its services to the Corporation hereunder are not impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager, partner, officer or employee of the Adviser to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting services to, one or more of the Corporation’s portfolio companies, subject to applicable law). So long as this Agreement or any extension, renewal or amendment remains in effect, the Adviser shall be the only investment adviser for the Corporation, subject to the Adviser’s right to enter into sub-advisory agreements. The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood that directors, officers, employees and stockholders of the Corporation are or may become interested in the Adviser and its affiliates, as directors, officers, employees, partners, stockholders, members, managers or otherwise, and that the Adviser and directors, officers, employees, partners, stockholders, members and managers of the Adviser and its affiliates are or may become similarly interested in the Corporation as stockholders or otherwise.
Responsibility of Dual Directors, Officers and/or Employees. If any person who is a manager, partner, officer or employee of the Adviser or the Administrator is or becomes a director, officer and/or employee of the Corporation and acts as such in any business of the Corporation, then such manager, partner, officer and/or employee of the Adviser or the Administrator shall be deemed to be acting in such capacity solely for the Corporation, and not as a manager, partner, officer or employee of the Adviser or the Administrator or under the control or direction of the Adviser or the Administrator, even if paid by the Adviser or the Administrator.
Limitation of Liability of the Adviser; Indemnification. The Adviser (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without limitation its general partner and the Administrator) shall not be liable to the Corporation for any action taken or omitted to be taken by the Adviser in connection with the performance of any of its duties or obligations under this Agreement or otherwise as an investment adviser of the Corporation, except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services, and the Corporation shall indemnify, defend and protect the Adviser (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser, including without limitation its general partner and the Administrator, each of whom shall be deemed a third party beneficiary hereof) (collectively, the “Indemnified Parties”) and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Corporation or its security holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the Corporation. Notwithstanding the preceding sentence of this Paragraph 8 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be

deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the Corporation or its security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of the Adviser’s duties and obligations under this Agreement (as the same shall be determined in accordance with the Investment Company Act and any interpretations or guidance by the Securities and Exchange Commission or its staff thereunder).

Effectiveness, Duration and Termination of Agreement. This Agreement shall become effective as of the first date above written. This Agreement shall continue automatically for successive annual periods, provided that such continuance is specifically approved at least annually by (a) the vote of the Corporation’s Board of Directors, or by the vote of a majority of the outstanding voting securities of the Corporation and (b) the vote of a majority of the Corporation’s Directors who are not parties to this Agreement or “interested persons” (as such term is defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the requirements of the Investment Company Act. This Agreement may be terminated at any time, without the payment of any penalty, upon 60 days’ written notice, by the vote of a majority of the outstanding voting securities of the Corporation, or by the vote of the Corporation’s Directors or by the Adviser. This Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section 15(a)(4) of the Investment Company Act). The provisions of Paragraph 8 of this Agreement shall remain in full force and effect, and the Adviser shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration of this Agreement as aforesaid, the Adviser shall be entitled to any amounts owed under Section 3 through the date of termination or expiration and Section 8 shall continue in force and effect and apply to the Adviser and its representatives as and to the extent applicable.
Notices. Any notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party at its principal office.
Amendments. This Agreement may be amended by mutual consent, but the consent of the Corporation must be obtained in conformity with the requirements of the Investment Company Act.
Entire Agreement; Governing Law. This Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter hereof. This Agreement shall be construed in accordance with the laws of the State of New York and the applicable provisions of the Investment Company Act. To the extent the applicable laws of the State of New York, or any of the provisions herein, conflict with the provisions of the Investment Company Act, the latter shall control.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the date above written.

PENNANTPARK INVESTMENT CORPORATION
By:	/s/ Arthur Penn
Name:	Arthur Penn
Title:	Chief Executive Officer and Chairman of the Board of Directors
PENNANTPARK INVESTMENT ADVISERS, LLC
By:	/s/ Arthur Penn
Name:	Arthur Penn
Title:	Managing Member

EX-14.1

JOINT CODE OF ETHICS FOR PENNANTPARK FLOATING RATE CAPITAL LTD. PENNANTPARK INVESTMENT CORPORATION PENNANTPARK PRIVATE INCOME FUND PENNANTPARK ENHANCED INCOME FUND PENNANTPARK INVESTMENT ADVISERS, LLC PENNANTPARK PRIVATE INCOME FUND ADVISERS LLC

Section I Statement of General Fiduciary Principles

This Joint Code of Ethics (the “Code”) has been adopted by each of PennantPark Floating Rate Capital, Ltd. (“PFLT”), PennantPark Investment Corporation (“PNNT”), PennantPark Private Income Fund (“PPIF”) and PennantPark Enhanced Income Fund (“PEIF”) (PFLT, PNNT, PPIF and PEIF each individually, a “Company” and together, “Companies”), and PennantPark Investment Advisers, LLC, the investment adviser to PFLT, PNNT, and PEIF ( “PPIA”) and PennantPark Private Income Fund Advisers LLC, investment adviser to PPIF (collectively with PPIA, the “Adviser”), in compliance with Rule 17j-1 under the Investment Company Act of 1940 (the “Act”) and Section 204A of the Investment Advisers Act of 1940 (the “Advisers Act”). The purpose of the Code is to establish standards and procedures for the detection and prevention of activities by which persons having knowledge of the investments and investment intentions of the Companies may abuse their fiduciary duty to the Companies, and otherwise to deal with the types of conflict-of-interest situations to which Rule 17j-1 under the Act (“Rule 17j-1”) is addressed. As it relates to Section 204A of the Advisers Act, the purpose of this Code is to establish procedures that, taking into consideration the nature of the Adviser’s business, are reasonably designed to prevent misuse of material non-public information in violation of the federal securities laws by persons associated with the Adviser.

The Code is based on the principle that the directors and officers of the Companies, and the managers, partners, officers and employees of the Adviser, who provide services to the Companies, owe a fiduciary duty to the Companies to conduct their personal securities transactions in a manner that does not interfere with the Companies’ transactions or otherwise take unfair advantage of their relationship with the Companies. All directors, managers, partners, officers and employees of the Companies, and the Adviser (“Covered Personnel”) are expected to adhere to this general principle as well as to comply with all of the specific provisions of this Code that are applicable to them. Any Covered Personnel who is affiliated with another entity that is a registered investment adviser is, in addition, expected to comply with the provisions of the code of ethics that has been adopted by such other investment adviser.

Technical compliance with the Code will not automatically insulate any Covered Personnel from scrutiny of transactions that show a pattern of compromise or abuse of the individual’s fiduciary duty to the Company. Accordingly, all Covered Personnel must seek to avoid any actual or potential conflicts between their personal interests and the interests of the Company and its shareholders. In sum, all Covered Personnel shall place the interests of the Company before their own personal interests.

All Covered Personnel must read and retain this Code. Section II Definitions

“Access Person” means any director, officer, general partner or Advisory Person (as defined below) of the Companies or the Adviser.
An “Advisory Person” of the Company or the Adviser means: (i) any employee of the Company or the Adviser, or any company in a Control (as defined below) relationship the Company or the Adviser, who in connection with his or her regular functions or duties makes, participates in, or obtains information regarding the purchase or sale of any Covered Security (as defined below) by the Company, or whose functions relate to the making of any recommendation with respect to such purchases or sales; and (ii) any natural person in a Control relationship to the Company or the Adviser, who obtains information concerning recommendations made to the Company with regard to the purchase or sale of any Covered Security by the Company.
“Beneficial Ownership” is interpreted in the same manner as it would be under Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 (the “1934 Act”) in determining whether a person is a beneficial owner of a security for purposes of Section 16 of the 1934 Act and the rules and regulations thereunder.
“Chief Compliance Officer” means the Chief Compliance Officer of the Company (who also may serve as the compliance officer of the Adviser and/or one or more affiliates of the Adviser).
“Control” shall have the same meaning as that set forth in Section 2(a)(9) of the Act.
“Covered Security” means a security as defined in Section 2(a)(36) of the Act, which includes: any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security,” or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. However, a “Covered Security” does not include: (i) direct obligations of the Government of the United States; (ii) bankers’ acceptances, bank certificates of deposit, commercial paper and high-quality short-term debt instruments, including repurchase agreements; and (iii) shares issued by open-end investment companies registered under the Act. References to a Covered Security in this Code (e.g., a prohibition or requirement applicable to the purchase or sale of a Covered Security) shall be deemed to refer to and to include any warrant for, option in, or security immediately convertible into that Covered Security, and shall also include any instrument that has an investment return or value that is based, in whole or in part, on that Covered Security (collectively, “Derivatives”). Therefore, except as otherwise specifically provided by this Code: (i) any prohibition or requirement of this Code applicable to the purchase or sale of a Covered Security shall also

be applicable to the purchase or sale of a Derivative relating to that Covered Security; and (ii) any prohibition or requirement of this Code applicable to the purchase or sale of a Derivative shall also be applicable to the purchase or sale of a Covered Security relating to that Derivative.

(G) “Independent Director” means a director of the Company who is not an “interested person” of the Company within the meaning of Section 2(a)(19) of the Act.

( ) “Initial Public Offering” means an offering of securities registered under the Securities Act of 1933, as amended (the “1933 Act”), the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the 1934 Act.

“Limited Offering” means an offering that is exempt from registration under the 1933 Act pursuant to Section 4(2) or Section 4(6) thereof or pursuant to Rule 504, Rule 505, or Rule 506 thereunder.
“Restricted List” means the “Pipeline” report of potential investments combined with the current holdings of the clients. PennantPark Access Persons are restricted from trading any security on the Restricted List.
“Security Held or to be Acquired” by the Company means: (i) any Covered Security which, within the most recent 15 days: (A) is or has been held by the Company; or (B) is being or has been considered by the Company or the Adviser for purchase by the Company; and (ii) any option to purchase or sell, and any security convertible into or exchangeable for, a Covered Security described in Section II (K)(i) of this Code.
“17j-1 Organization” means the Company or the Adviser, as the context requires. Section III Objective and General Prohibitions

Covered Personnel may not engage in any investment transaction under circumstances in which the Covered Personnel benefits from or interferes with the purchase or sale of investments by the Company. In addition, Covered Personnel may not use information concerning the investments or investment intentions of the Company, or their ability to influence such investment intentions, for personal gain or in a manner detrimental to the interests of the Company.

Covered Personnel may not engage in conduct that is deceitful, fraudulent or manipulative, or that involves false or misleading statements, in connection with the purchase or sale of investments by the Company. In this regard, Covered Personnel should recognize that Rule 17j1 makes it unlawful for any affiliated person of the Company, or any affiliated person of an investment adviser for the Company, in connection with the purchase or sale, directly or indirectly, by the person of a Security Held or to be Acquired by the Company to:

employ any device, scheme or artifice to defraud the Company;
make any untrue statement of a material fact to the Company or omit to state to the Company a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading;

( ) engage in any act, practice or course of business that operates or would operate as a fraud or deceit upon the Company; or

(i) engage in any manipulative practice with respect to the Company.

Covered Personnel should also recognize that a violation of this Code or of Rule 17j-1 may result in the imposition of: (1) sanctions as provided by Section VIII of this Code; or (2) administrative, civil and, in certain cases, criminal fines, sanctions or penalties.

Section IV Pre-Clearance of Personal Account Transactions; Window Period to Trade PennantPark shares

Except as noted below, all Access Persons must obtain the prior written approval of the Managing Member (or such person as the Managing Member may designate) (“Approving Officer”) before engaging in any transaction in his or her Personal Account. The Approving Officer may approve the transaction if he concludes that the transaction would comply with the provisions of this Code and is not likely to have any adverse economic impact on clients. A request for preclearance must be made by email, with a copy to the Compliance Officer, in advance of the contemplated transaction. No particular form is required, but the email must include sufficient detail for the Approving Officer to decide if a trade is permissible and a statement that the Access Person has reviewed the Pipeline Report for any conflicts.

Any approval given under this paragraph will be provided by email and will remain in effect for 72 hours.

Exceptions to the Pre-Clearance Requirement Policy,

Access Persons will be allowed to trade securities of the Companies during a “window period” that may be announced following the release of Companies’ earnings release. If the window is opened for trading, it will begin no earlier than the second business day after a Company publicly releases quarterly or annual financial results and extends no later than (i) 30 calendar days after the release of results (29 calendar days in all) or (ii) in the case of either Company’s and the Adviser’s decision to buy or sell the applicable Company’s equity securities, the end of the quarterly period during which such financial results of such Company have been publicly released. Note that the ability of an officer, director or other Access Person to engage in transactions in the securities of a Company during a window period is not automatic or absolute because no trades may be made even during a window period by an individual who possesses material, nonpublic information about the Company, including any decision by the Company to buy or sell its own shares. Further, the window period may not open in a particular quarter, and it may be closed, as the case may be, prior to the expiration of 30 days or the applicable quarter end, in each case as events require.

Additionally, Independent Directors are not required to seek preapproval for any transactions other than those which would trigger reporting requirements as set forth in Section VI (C) of this Code.

Section V Prohibited Transactions

(A) An Access Person may not purchase or otherwise acquire direct or indirect Beneficial Ownership of any Covered Security on the Restricted List, and may not sell or otherwise dispose of any Covered Security on the Restricted List in which he or she has direct or indirect Beneficial Ownership, if he or she knows or should know at the time of entering into the transaction that: (1) the Company has purchased or sold the Covered Security

within the last 15 calendar days, or is purchasing or selling or intends to purchase or sell the Covered Security in the next 15 calendar days; or (2) the Adviser has within the last 15 calendar days considered purchasing or selling the Covered Security for the Company or within the next 15 calendar days intend to consider purchasing or selling the Covered Security for the Company.

Every Advisory Person of the Company or the Adviser must obtain approval from the Company or the Adviser, as the case may be, before directly or indirectly acquiring Beneficial Ownership in any securities in an Initial Public Offering or in a Limited Offering. Such approval must be obtained from the Chief Compliance Officer, unless he is the person seeking such approval, in which case it must be obtained from the President of the 17j-1 Organization.
No Access Person shall recommend any transaction in any Covered Securities by the Company without having disclosed to the Chief Compliance Officer his or her interest, if any, in such Covered Securities or the issuer thereof, including: the Access Person’s Beneficial Ownership of any Covered Securities of such issuer; any contemplated transaction by the Access Person in such Covered Securities; any position the Access Person has with such issuer; and any present or proposed business relationship between such issuer and the Access Person (or a party which the Access Person has a significant interest).

Section VI Reports by Access Persons

Personal Securities Holdings Reports.

All Access Persons shall within 10 days of the date on which they become Access Persons, and thereafter, within 30 days after the end of each calendar year, disclose the title, number of shares and principal amount of all Covered Securities in which they have a Beneficial Ownership as of the date the person became an Access Person, in the case of such person’s initial report, and as of the last day of the year, as to annual reports. A form of such report, which is hereinafter called a “Personal Securities Holdings Report,” is attached hereto as Schedule A. Each Personal Securities Holdings Report must also disclose the name of any broker, dealer or bank with whom the Access Person maintained an account in which any securities were held for the direct or indirect benefit of the Access Person as of the date the person became an Access Person or as of the last day of the year, as the case may be. Each Personal Securities Holdings Report shall state the date it is being submitted.

Quarterly Transaction Reports.

Within 30 days after the end of each calendar quarter, each Access Person shall make a written report to the Chief Compliance Officer of all transactions occurring in the quarter in a Covered Security in which he or she had any Beneficial Ownership. A form of such report, which is hereinafter called a “Quarterly Securities Transaction Report,” is attached hereto as Schedule B.

A Quarterly Securities Transaction Report shall be in the form of Schedule B or such other form approved by the Chief Compliance Officer and must contain the following information with respect to each reportable transaction:

(1) Date and nature of the transaction (purchase, sale or any other type of acquisition or disposition);

Title, interest rate and maturity date (if applicable), number of shares and principal amount of each Covered Security involved and the price of the Covered Security at which the transaction was effected;
Name of the broker, dealer or bank with or through whom the transaction was effected; and
The date the report is submitted by the Access Person.

Notwithstanding the reporting requirements set forth in this Section V, an Independent Director who would be required to make a report under this Section V solely by reason of being a director of the Company is not required to file a Personal Securities Holding Report upon becoming a director of the Company or an annual Personal Securities Holding Report. Such an Independent Director also need not file a Quarterly Securities Transaction Report unless such director knew or, in the ordinary course of fulfilling his or her official duties as a director of the Company, should have known that during the 15-day period immediately preceding or after the date of the transaction in a Covered Security by the director such Covered Security is or was purchased or sold by the Company or the Company or the Adviser considered purchasing or selling such Covered Security.

(D) Access Persons of the Adviser.

An Access Person of the Adviser need not make a Quarterly Transaction Report if all of the information in the report would duplicate information required to be recorded pursuant to Rules 204-2(a)(12) or (13) under the Advisers Act.

(E) Brokerage Accounts and Statements.

Access Persons, except Independent Directors, shall:

within 10 days after the end of each calendar quarter, identify the name of the broker, dealer or bank with whom the Access Person established an account in which any securities were held during the quarter for the direct or indirect benefit of the Access Person and identify any new account(s) and the date the account(s) were established. This information shall be included on the appropriate Quarterly Securities Transaction Report.
instruct the brokers, dealers or banks with whom they maintain such an account to provide duplicate account statements to the Chief Compliance Officer.
on an annual basis, certify that they have complied with the requirements of (1) and (2) above.

(F) Form of Reports.

A Quarterly Securities Transaction Report may consist of broker statements or other statements that provide a list of all personal Covered Securities holdings and transactions in the time period covered by the report and contain the information required in a Quarterly Securities Transaction Report.

(G) Responsibility to Report.

It is the responsibility of each Access Person to take the initiative to comply with the requirements of this Section VI. Any effort by the Company, or by the Adviser and its

affiliates, to facilitate the reporting process does not change or alter that responsibility. A person need not make a report hereunder with respect to transactions effected for, and Covered Securities held in, any account over which the person has no direct or indirect influence or control.

(H) Where to File Reports.

All Quarterly Securities Transaction Reports and Personal Securities Holdings Reports must be filed with the Chief Compliance Officer.

(E) Disclaimers.

Any report required by this Section VI may contain a statement that the report will not be construed as an admission that the person making the report has any direct or indirect Beneficial Ownership in the Covered, Security to which the report relates.

Section VII Additional Prohibitions

Confidentiality of the Company’s Transactions.

Until disclosed in a public report to shareholders or to the Securities and Exchange Commission (the “SEC”) in the normal course, all information concerning the securities “being considered for purchase or sale” by the Company shall be kept confidential by all Covered Personnel and disclosed by them only on a “need to know” basis. It shall be the responsibility of the Chief Compliance Officer to report any inadequacy found in this regard to the directors of the Company.

Outside Business Activities and Directorships.

Access Persons may not engage in any outside business activities that may give rise to conflicts of interest or jeopardize the integrity or reputation of the Company. Similarly, no such outside business activities may be inconsistent with the interests of the Company. All directorships of public or private companies held by Access Persons shall be reported to the Chief Compliance Officer.

Gratuities.

Covered Personnel shall not, directly or indirectly, take, accept or receive gifts or other consideration in merchandise, services or otherwise of more than nominal value from any person, firm, corporation, association or other entity other than such person’s employer that does business, or proposes to do business, with the Company.

Section VIII Prohibition Against Insider Trading

This Section is intended to satisfy the requirements of Section 204A of the Advisers Act, which is applicable to the Adviser and requires that the Adviser establish and enforce procedures designed to prevent the misuse of material, non-public information by its associated persons. It applies to all Advisory Persons. Trading securities while in possession of material, non-public information, or improperly communicating that information to others, may expose an Advisory Person to severe penalties. Criminal sanctions may include a fine of up to $1,000,000 and/or ten years imprisonment. The SEC can recover the profits gained or losses avoided through the violative trading, a penalty of up to three times the illicit windfall, and an order permanently barring an Advisory Person from the securities industry. Finally, an Advisory Person may be sued by investors seeking to recover damages for insider trading violations.

(A) No Advisory Person may trade a security, either personally or on behalf of any other person or account (including any fund), while in possession of material, non-public information concerning that security or the issuer thereof, nor may any Advisory Person communicate material, non-public information to others in violation of the law.

(B) Information is “material” where there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions. Generally, this includes any information the disclosure of which will have a substantial effect on the price of a security. No simple test exists to determine when information is material; assessments of materiality involve a highly fact specific inquiry. For this reason, an Advisory Person should direct any questions about whether information is material to the Chief Compliance Officer. Material information often relates to a company’s results and operations, including, for example, dividend changes, earnings results, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, liquidation problems, and extraordinary management developments. Material information may also relate to the market for a company’s securities. Information about a significant order to purchase or sell Securities may, in some contexts, be material. Prepublication information regarding reports in the financial press may also be material.

(C) Information is “public” when it has been disseminated broadly to investors in the marketplace. For example, information is public after it has become available to the general public through a public filing with the SEC or some other government agency, the Dow Jones “tape” or The Wall Street Journal or some other publication of general circulation, and after sufficient time has passed so that the information has been disseminated widely.

(D) An Advisory Person, before executing any trade for himself or herself, or others, including the Company or other accounts managed by the Adviser or by a stockholder of the Adviser, or any affiliate of the stockholder (collectively, “Client Accounts”), must determine whether he or she has material, non-public information. Any Advisory Person who believes he or she is in possession of material, non-public information must take the following steps:

Report the information and proposed trade immediately to the Chief Compliance Officer.
Do not purchase or sell the securities on behalf of anyone, including Client Accounts.
Do not communicate the information to any person, other than to the Chief Compliance Officer.

After the Chief Compliance Officer has reviewed the issue, the Chief Compliance Officer will determine whether the information is material and non-public and, if so, what action the Advisory Person should take. An Advisory Person must consult with the Chief Compliance Officer before taking any further action. This degree of caution will protect the Advisory Person and the Adviser.

(E) To prevent and detect insider trading from occurring, the Chief Compliance Officer shall prepare and maintain a “Restricted List” in order to monitor and prevent the occurrence of insider trading in certain securities that Access Persons are prohibited or restricted from trading. The Chief Compliance Officer manages, maintains and updates the Restricted List to actually restrict trading (no buying, no selling, no shorting, no trading, etc.) in the

securities of specific issuers for personal accounts and on behalf Adviser’s clients. Before executing any trade for himself or herself, Advisory Persons are required to determine whether the transaction involves a security on the Restricted List. Advisory Persons are prohibited from trading any security which appears on the Restricted List, except that, with prior approval, an Advisory Person may sell securities which were not on the Restricted List when acquired (or which were acquired at a time when the Advisory Person was not subject to such restrictions). The Restricted List must be maintained strictly confidential and not disclosed to anyone outside of the Adviser and the Company.

(F) Contacts with public companies will sometimes be a part of an Adviser’s research efforts. Persons providing investment advisory services to the Company may make investment decisions on the basis of conclusions formed through such contacts and analysis of publicly available information. Difficult legal issues arise, however, when, in the course of these contacts, an Advisory Person becomes aware of material, non-public information. This could happen, for example, if a company’s chief financial officer prematurely discloses quarterly results to an analyst, or an investor relations representative makes selective disclosure of adverse news to a handful of investors. In such situations, the Adviser must make a judgment as to its further conduct. To protect yourself, clients and the Adviser, you should contact the Chief Compliance Officer immediately if you believe that you may have received material, non-public information.

Section IX Annual Certification

Access Persons.

Access Persons who are directors, managers, officers or employees of the Company or the Adviser shall be required to certify annually that they have read this Code and that they understand it and recognize that they are subject to it. Further, such Access Persons shall be required to certify annually that they have complied with the requirements of this Code.

Board Review.

No less frequently than annually, the Company and the Adviser must furnish to the Company’s board of directors/trustees, and the board must consider, a written report that: (1) describes any issues arising under this Code or procedures since the last report to the board, including, but not limited to, information about material violations of this Code or procedures and sanctions imposed in response to material violations; and (2) certifies that the Company or the Adviser, as applicable, has adopted procedures reasonably necessary to prevent Access Persons from violating this Code.

Section X Sanctions

Any violation of this Code shall be subject to the imposition of such sanctions by the 17j-1 Organization as may be deemed appropriate under the circumstances to achieve the purposes of Rule 17j-1 and this Code. The sanctions to be imposed shall be determined by the board of directors, including a majority of the Independent Directors, provided, however, that with respect to violations by persons who are directors, managers, officers or employees of the Adviser (or of a company that controls the Adviser), the sanctions to be imposed shall be determined by the Adviser (or the controlling person thereof). Sanctions may include, but are not limited to, suspension or termination of employment, a letter of censure and/or restitution of an amount equal to the difference between

the price paid or received by the Company and the more advantageous price paid or received by the offending person.

Section XI Administration and Construction

(A) The administration of this Code shall be the responsibility of the Chief Compliance Officer.

(B) The duties of the Chief Compliance Officer are as follows:

Continuous maintenance of a current list of the names of all Access Persons with an appropriate description of their title or employment, including a notation of any directorships held by Access Persons who are officers or employees of the Adviser or of any company that controls the Adviser, and informing all Access Persons of their reporting obligations hereunder;
On an annual basis, providing all Covered Personnel a copy of this Code and informing such persons of their duties and obligations hereunder including any supplemental training that may be required from time to time;
Maintaining or supervising the maintenance of all records and reports required by this Code;
Preparing listings of all transactions effected by Access Persons who are subject to the requirement to file Quarterly Securities Transaction Reports and reviewing such transactions against a listing of all transactions effected by the Company;
Issuance either personally or with the assistance of counsel as may be appropriate, of any interpretation of this Code that may appear consistent with the objectives of Rule 17j-1 and this Code;
Conduct such inspections or investigations as shall reasonably be required to detect and report, with recommendations, any apparent violations of this Code to the board of directors of the Company;
Submission of a report to the board of directors of the Company, no less frequently than annually, a written report that describes any issues arising under the Code since the last such report, including but not limited to the information described in Section VI (B); and

(C) The Chief Financial Officer shall maintain and cause to be maintained in an easily accessible place at the principal place of business of the 17j-1 Organization, the following records:

A copy of all codes of ethics adopted by the Company or the Adviser and its

affiliates, as the case may be, pursuant to Rule 17j-1 that have been in effect at any time during the past five (5) years;

A record of each violation of such codes of ethics and of any action taken as a result of such violation for at least five (5) years after the end of the fiscal year in which the violation occurs;
A copy of each report made by an Access Person for at least two (2) years after the end of the fiscal year in which the report is made, and for an additional three (3) years in a place that need not be easily accessible;
A copy of each report made by the Chief Compliance Officer to the board of directors for two (2) years from the end of the fiscal year of the Company in which such report is made or issued and for an additional three (3) years in a place that need not be easily accessible;
A list of all persons who are, or within the past five (5) years have been, required to make reports pursuant to Rule 17j-1 and this Code, or who are or were responsible for reviewing such reports;
A copy of each report required by Section VII (B) of this Code for at least two (2) years after the end of the fiscal year in which it is made, and for an additional three (3) years in a place that need not be easily accessible; and
A record of any decision, and the reasons supporting the decision, to approve the acquisition by an Advisory Person of securities in an Initial Public Offering or Limited Offering for at least five (5) years after the end of the fiscal year in which the approval is granted.

(D) This Code may not be amended or modified except in a written form that is specifically approved by majority vote of the Independent Directors.

This Joint Code of Ethics, originally adopted December 12, 2007 and amended as of November 20, 2025, is annually reviewed and approved by the Board of Directors of the Company, including a majority of the Independent Directors/Trustees.

EX-21.1

EXHIBIT 21.1

Subsidiaries of the Registrant

Name of entity and place of jurisdiction	Voting Securities<br>Owned Percentage
PNNT Alabama Holdings Inc. (Delaware)	100	% (1)
PNNT Investment Holdings, LLC (Delaware)	100	% (1)
PNNT Investment Holdings II, LLC (Delaware)	100	% (1)
RAM Energy Holdings LLC (Delaware)	100	% (2)
MSpark, LLC (Alabama)	51	% (2)
PennantPark Senior Loan Fund, LLC	56	% (2)
AKW Holdings Limited (Isle of Man)	77	% (2)
JF Intermediate, LLC	52	% (2)
Flock Financial, LLC	75	% (2)

This entity is not operational.
This is a controlled affiliated investment.

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the headings “Senior Securities” in the accompanying Form 10-K of the Company for the year ended September 30, 2025.

/s/ RSM US LLP

New York, New York

November 24, 2025

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Arthur H. Penn, Chief Executive Officer and Chairman of the Board of Directors of PennantPark Investment Corporation, certify that:

I have reviewed this Annual Report on Form 10-K of PennantPark Investment Corporation;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 24, 2025

/s/ Arthur H. Penn
Name:	Arthur H. Penn
Title:	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Richard T. Allorto, Jr., Chief Financial Officer of PennantPark Investment Corporation, certify that:

I have reviewed this Annual Report on Form 10-K of PennantPark Investment Corporation;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 24, 2025

/s/ Richard T. Allorto, Jr.
Name:	Richard T. Allorto, Jr.
Title:	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

In connection with the Annual Report on Form 10-K of PennantPark Investment Corporation for the annual period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Arthur H. Penn, as Chief Executive Officer of the Registrant hereby certify, to the best of my knowledge that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Arthur H. Penn
Name:	Arthur H. Penn
Title:	Chief Executive Officer
Date:	November 24, 2025

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

In connection with the Annual Report on Form 10-K of PennantPark Investment Corporation for the annual period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard T. Allorto, Jr., as Chief Financial Officer of the Registrant hereby certify, to the best of my knowledge that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Richard Allorto
Name:	Richard T. Allorto, Jr.
Title:	Chief Financial Officer
Date:	November 24, 2025

EX-99.2

EXHIBIT 99.2

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

PennantPark Investment Corporation and Subsidiaries

Our audits of the consolidated financial statements and internal control over financial reporting referred to in our reports dated November 24, 2025, (appearing in the accompanying Form 10-K) also included an audit of the senior securities table of PennantPark Investment Corporation and Subsidiaries (the Company) appearing in Part II, Item 7 in this Form 10-K. This table is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audits of the consolidated financial statements.

In our opinion, the senior securities table, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ RSM US LLP

New York, New York

November 24, 2025

EX-99.3

Exhibit 99.3

PennantPark Senior Loan Fund, LLC

Consolidated Financial Statements and

Independent Auditor’s Report

September 30, 2025 and 2024

Contents

Independent Auditor’s Report	1
Financial Statements:
Consolidated Statements of Assets, Liabilities and Members’ Equity as of September 30, 2025 and 2024	3
Consolidated Statements of Operations for the years ended September 30, 2025 and 2024	4
Consolidated Statements of Changes in Members’ Equity for the years ended September 30, 2025 and 2024	5
Consolidated Statements of Cash Flows for the years ended September 30, 2025 and 2024	6
Consolidated Schedules of Investments as of September 30, 2025 and 2024	7
Notes to Consolidated Financial Statements	13

Independent Auditor’s Report

Member Designees’ Committee

PennantPark Senior Loan Fund, LLC

Opinion

We have audited the consolidated financial statements of PennantPark Senior Loan Fund, LLC and its subsidiaries (the Fund), which comprise the consolidated statements of assets, liabilities and members’ equity, including the consolidated schedule of investments, as of September 30, 2025 and 2024, the related consolidated statements of operations, changes in members’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2025 and 2024, and the results of its operations, changes in members’ equity and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Fund and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

/s/ RSM US LLP

New York, New York

November 24, 2025

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Assets, Liabilities and Members' Equity
( in thousands)
		September 30, 2024
Assets
Investments at fair value (amortized cost—1,289,319 and 1,036,305, respectively)	1,265,901	$	1,031,225
Cash and cash equivalents (cost—40,985 and 36,595, respectively)	40,985		36,595
Interest receivable	5,271		5,089
Receivable for investments sold	1,055		—
Prepaid expenses and other assets	2,148		372
Due from affiliate	87		71
Total assets	1,315,447		1,073,352
Liabilities
2037 Asset-backed debt, net (par—328,000 and 0, respectively and unamortized deferred financing cost of 1,887 and 0, respectively)	326,113		—
2034 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 940 and 1,328, respectively)	245,060		244,672
2035 Asset-backed debt, net (par—246,000, unamortized deferred financing cost of 1,434 and 1,882, respectively)	244,566		244,118
Credit facility payable	99,600		247,600
Subordinated notes payable to members	250,808		191,546
Payable for investments purchased	—		7,314
Interest payable on credit facility and asset backed debt	13,730		12,525
Distribution payable to members	8,000		8,000
Interest payable on subordinated notes to members	5,305		4,372
Accounts payable and accrued expenses	1,189		934
Due to affiliate	50		—
Total liabilities	1,194,421		961,081
Members' equity	121,026		112,271
Total liabilities and members' equity	1,315,447	$	1,073,352

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Operations
( in thousands)

			2024
Investment income:
Interest	138,501		$	114,231
Other income	1,875			1,023
Total investment income	140,376			115,254
Expenses:
Interest expense on credit facility and asset-backed debt	67,975			54,405
Interest expense on subordinated notes to members	30,436			24,861
Administration services expense	3,457			2,423
General and administrative expenses	1,494			1,360
Expenses before debt issuance costs	103,362			83,049
Debt issuance costs	250			—
Total expenses	103,612			83,049
Net investment income	36,764			32,205
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments	(9,215	)		(2,838	)
Net realized gain (loss) on debt extinguishment	(187	)		—
Net change in unrealized appreciation (depreciation) on investments	(18,344	)		1,462
Net realized and unrealized gain (loss) on investments	(27,746	)		(1,376	)
Net increase (decrease) in members' equity resulting from operations	9,018		$	30,829

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Changes in Members’ Equity
( in thousands)

			2024
Net change in members’ equity resulting from operations:
Net investment income	36,764		$	32,205
Net realized gain (loss) on investments	(9,215	)		(2,838	)
Net realized gain (loss) on debt extinguishment	(187	)		—
Net change in unrealized appreciation (depreciation) on investments	(18,344	)		1,462
Net increase (decrease) in members’ equity resulting from operations	9,018			30,829
Capital transactions
Capital contributions	36,237			14,534
Distributions	(36,500	)		(35,710	)
Net increase (decrease) in members’ equity	8,755			9,653
Members’ equity
Beginning of year	112,271			102,618
End of year	121,026		$	112,271

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Cash Flows
( in thousands)

			2024
Cash flows from operating activities:
Net increase (decrease) in members’ equity resulting from operations	9,018		$	30,829
Adjustments to reconcile net increase (decrease) in members’ equity resulting from operations to net cash (used in) provided by operating activities:
Net change in unrealized (appreciation) depreciation on investments	18,344			(1,462	)
Net realized (gain) loss on investments	9,215			2,838
Net realized (gain) loss on debt extinguishment	187			—
Net accretion of discount and amortization of premium	(5,067	)		(3,560	)
Purchases of investments	(519,817	)		(396,119	)
Amortization of deferred financing costs	1,052			779
Payment-in-kind interest	(4,866	)		(1,645	)
Proceeds from disposition of investments	293,765			172,910
(Increase) Decrease in:
Receivable for investments sold	(1,055	)		—
Interest receivable	(183	)		159
Due from affiliate	(16	)		3,225
Prepaid expenses and other assets	(1,776	)		564
Increase (Decrease) in:
Payable for investments purchased	(7,314	)		5,312
Interest payable on credit facility and asset backed debt	1,205			2,104
Interest payable on subordinated notes to members	933			477
Accrued expenses	255			99
Due to affiliate	50			—
Net cash provided by (used in) operating activities	(206,070	)		(183,490	)
Cash flows from financing activities:
Members’ capital contributions	26,278			14,534
Subordinated notes issued to members	42,972			22,415
Distribution paid to members	(36,500	)		(34,960	)
Proceeds from 2037 Asset Backed Debt issued	328,000			—
Payment of fees and expenses on Asset-backed debt issued	(2,290	)		—
Proceeds from 2035 Asset Backed Debt refinancing	63,000			—
Repayment of 2035 Asset-backed debt	(63,000	)		—
Borrowings under credit facility	214,500			218,000
Repayments under credit facility	(362,500	)		(59,000	)
Net cash provided by (used in) financing activities	210,460			160,989
Net increase (decrease) in cash and cash equivalents	4,390			(22,501	)
Cash and cash equivalents, beginning of year	36,595			59,096
Cash and cash equivalents, end of year	40,985			36,595
Supplemental disclosure of cash flow information
Interest paid on subordinated notes to members	29,503		$	24,384
Interest paid on credit facility and asset backed debt	66,770		$	52,301
Non-Cash Operating and Financing activity:
Non-Cash exchanges and conversions	21,627		$	15,878
Purchase of investments from non-cash contributions	(26,250	)	$	—
Non-cash members capital contribution	9,959		$	—
Non-cash proceeds from subordinated notes issued to Member	16,289		$	—

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2025
($ in thousands)
Issuer Name	Acquisition	Maturity	Industry	Current<br>Coupon	Basis Point<br>Spread Above<br>Index (1)	Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---
First Lien Secured Debt - 1,035.8% of Net Assets
ACP Avenu Buyer, LLC	04/23/24	10/02/29	Business Services	9.04%	SOFR+475		7,590	$	7,474	$	7,514
Acp Falcon Buyer, Inc.	10/06/23	08/01/29	Business Services	9.79%	SOFR+550		15,196		14,963		15,348
AFC-Dell Holding Corp.	02/23/24	04/09/27	Distribution	9.83%	SOFR+550		16,181		16,072		16,100
Ad.Net Acquisition, LLC	03/02/22	05/07/26	Media	10.26%	SOFR+626		4,788		4,788		4,788
Aechelon Technology, Inc.	12/23/24	08/16/29	Aerospace and Defense	9.91%	SOFR+575		4,800		4,718		4,800
Alpine Acquisition Corp II (4), (7)	10/12/22	11/30/26	Containers, Packaging and Glass				15,185		15,056		7,896
Amsive Holdings Corporation	03/02/22	12/10/26	Media	10.35%	SOFR+635		13,805		13,745		13,667
Anteriad, LLC (f/k/a MeritDirect, LLC)	03/02/22	06/30/26	Media	9.90%	SOFR+590		13,837		13,803		13,837
Arcfield Acquisition Corp.	07/26/22	10/28/31	Aerospace and Defense	9.31%	SOFR+500		14,888		14,867		14,813
Archer Lewis, LLC	12/20/24	08/28/29	Healthcare, Education and Childcare	9.75%	SOFR+575		15,581		15,426		15,581
Argano, LLC	12/16/24	09/13/29	Business Services	9.89%	SOFR+575		14,850		14,730		14,628
BLC Holding Company, INC.	02/24/25	11/20/30	Environmental Services	8.50%	SOFR+450		12,013		11,942		12,013
Beacon Behavioral Support Services, LLC	09/16/24	06/21/29	Healthcare, Education and Childcare	9.50%	SOFR+550		24,607		24,305		24,607
Best Practice Associates, LLC	01/21/25	11/08/29	Aerospace and Defense	10.91%	SOFR+675		19,850		19,606		19,701
Beta Plus Technologies, Inc.	08/11/22	07/02/29	Business Services	9.75%	SOFR+575		14,550		14,375		14,405
Big Top Holdings, LLC	06/26/24	02/28/30	Manufacturing / Basic Industries	9.25%	SOFR+525		6,626		6,531		6,626
Bioderm, Inc.	06/26/24	01/31/28	Healthcare, Education and Childcare	10.77%	SOFR+650		8,798		8,726		8,688
Blackhawk Industrial Distribution, Inc.	07/24/23	09/17/26	Distribution	9.40%	SOFR+540		25,244		25,052		24,802
Boss Industries, LLC	07/21/25	12/27/30	Conglomerate Manufacturing	9.00%	SOFR+500		5,955		5,916		5,955
Burgess Point Purchaser Corporation	10/03/22	07/25/29	Auto Sector	9.51%	SOFR+535		6,186		5,926		5,348
C5MI Acquisition, LLC	10/09/24	07/31/29	Business Services	10.00%	SOFR+600		7,425		7,334		7,425
CF512, Inc.	12/29/21	08/20/26	Media	10.36%	SOFR+619		9,042		8,983		8,952
Carisk Buyer, Inc.	02/09/24	12/01/29	Healthcare, Education and Childcare	9.00%	SOFR+500		11,370		11,276		11,370
Carnegie Dartlet, LLC	06/26/24	02/07/30	Education	9.66%	SOFR+550		22,655		22,360		22,428
Cartessa Aesthetics, LLC	09/09/22	06/14/28	Distribution	10.00%	SOFR+600		21,880		21,708		21,880
Case Works, LLC	11/26/24	10/01/29	Business Services	9.25%	SOFR+525		10,436		10,366		9,966
Commercial Fire Protection Holdings, LLC	12/16/24	09/23/30	Business Services	8.50%	SOFR+450		20,831		20,730		20,831
Compex Legal Services, Inc.	12/23/24	02/09/26	Business Services	9.55%	SOFR+555		931		931		931
Confluent Health, LLC	12/23/24	11/30/28	Healthcare, Education and Childcare	11.66%	SOFR+750		1,950		1,950		1,940
CJX Borrower, LLC	08/12/22	07/13/27	Media	10.08%	SOFR+576		8,624		8,614		8,624
Crane 1 Services, Inc.	07/24/23	08/16/27	Personal, Food and Miscellaneous Services	10.03%	SOFR+586		5,271		5,243		5,232
DRI Holding Inc.	08/04/22	12/21/28	Media	9.51%	SOFR+535		5,770		5,442		5,655
DRS Holdings III, Inc.	03/02/22	11/03/25	Consumer Products	9.41%	SOFR+525		4,478		4,478		4,523
Duggal Acquisition, LLC	12/23/24	09/30/30	Marketing Services	8.75%	SOFR+475		4,950		4,910		4,950
Dynata, LLC - First Out Term Loan	07/15/24	07/17/28	Business Services	9.46%	SOFR+526		1,572		1,486		1,565
Dynata, LLC - Last Out Term Loan	07/15/24	10/16/28	Business Services	9.96%	SOFR+576		9,670		9,670		7,873
EDS Buyer, LLC	07/24/23	01/10/29	Aerospace and Defense	8.75%	SOFR+475		23,169		22,915		23,227
ETE Intermediate II, LLC	07/24/23	05/29/29	Personal, Food and Miscellaneous Services	9.16%	SOFR+500		12,124		11,963		12,124
Emergency Care Partners, LLC	12/23/24	10/18/27	Healthcare, Education and Childcare	9.00%	SOFR+500		6,930		6,895		6,930
EvAL Home Care Solutions Intermediate, LLC	07/23/24	05/10/30	Healthcare, Education and Childcare	9.91%	SOFR+575		7,040		6,955		7,040
Exigo Intermediate II, LLC	07/24/23	03/15/27	Business Services	10.51%	SOFR+635		9,551		9,491		9,551
Five Star Buyer, Inc.	07/24/23	02/23/28	Hotels, Motels, Inns and Gaming	13.35%	SOFR+915		4,140		4,096		4,057
GGG Midco, LLC	12/16/24	09/27/30	Home and Office Furnishings, Housewares and Durable Consumer Products	9.00%	SOFR+500		12,485		12,377		12,485
Global Holdings InterCo, LLC	03/02/22	03/16/26	Banking, Finance, Insurance & Real Estate	9.74%	SOFR+560		6,593		6,589		6,593
Graffiti Buyer, Inc.	03/02/22	08/10/27	Distribution	9.80%	SOFR+560		3,959		3,928		3,880
HEC Purchaser Corp.	09/16/24	06/17/29	Healthcare, Education and Childcare	8.87%	SOFR+500		7,798		7,723		7,798
HV Watterson Holdings, LLC (4)	09/09/22	12/17/26	Business Services	8.00%			15,570		15,496		8,548
HW Holdco, LLC	03/02/22	05/10/26	Media	9.90%	SOFR+590		23,593		23,537		23,593
Hancock Roofing And Construction, LLC	03/02/22	12/31/26	Insurance	9.60%	SOFR+550		6,029		6,029		5,968
Harris & Co, LLC	12/20/24	08/09/30	Financial Services	9.16%	SOFR+500		19,182		18,995		19,015
Hills Distribution, Inc.	02/13/24	11/08/29	Distribution	10.32%	SOFR+600		14,148		13,992		14,148
IG Investments Holdings, LLC	03/02/22	09/22/28	Business Services	9.31%	SOFR+500		4,350		4,305		4,328
Imagine Acquisitionco, Inc.	07/24/23	11/15/27	Business Services	9.29%	SOFR+510		5,452		5,402		5,452
Infinity Home Services Holdco, Inc.	02/07/23	12/28/28	Personal, Food and Miscellaneous Services	10.16%	SOFR+600		13,749		13,622		13,749
Infolinks Media Buyco, LLC	07/24/23	11/01/26	Media	9.50%	SOFR+550		13,046		13,007		12,981
Inovex Information Systems Incorporated	03/04/25	12/17/30	Business Services	9.25%	SOFR+525		5,955		5,918		5,955
Inventus Power, Inc.	10/10/23	01/15/26	Consumer Products	11.78%	SOFR+761		12,968		12,934		12,968

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2025
($ in thousands)
Issuer Name	Acquisition	Maturity	Industry	Current<br>Coupon	Basis Point<br>Spread Above<br>Index (1)	Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---
Kinetic Purchaser, LLC	07/24/23	11/10/27	Consumer Products	10.15%	SOFR+615		13,701		13,590		11,646
LAV Gear Holdings, Inc. - Takeback TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594		2,295		2,295		2,295
LAV Gear Holdings, Inc. - Priority TL	07/31/25	07/31/29	Leisure, Amusement, Motion Pictures, Entertainment	10.10%	SOFR+594		729		720		898
Lash OpCo, LLC	03/02/22	02/18/27	Consumer Products	12.16%	SOFR+785		21,525		21,466		20,987
Lightspeed Buyer, Inc.	03/02/22	02/03/27	Healthcare, Education and Childcare	8.75%	SOFR+475		20,115		20,017		20,115
LJ Avalon Holdings, LLC	07/24/23	02/01/30	Environmental Services	8.77%	SOFR+450		7,636		7,550		7,636
MAG DS Corp.	03/02/22	04/01/27	Aerospace and Defense	9.60%	SOFR+560		8,175		7,939		8,142
MDI Buyer, Inc.	12/20/24	07/25/28	Chemicals, Plastics and Rubber	8.95%	SOFR+475		19,728		19,568		19,728
Marketplace Events Acquisition, LLC	03/04/25	12/19/30	Media	9.12%	SOFR+525		19,900		19,727		19,900
MBS Holdings, Inc.	03/02/22	04/16/27	Telecommunications	9.30%	SOFR+510		8,244		8,197		8,244
Meadowlark Acquirer, LLC	04/01/22	12/10/27	Business Services	9.65%	SOFR+565		2,893		2,865		2,893
Medina Health, LLC	01/18/24	10/20/28	Healthcare, Education and Childcare	10.25%	SOFR+625		19,423		19,311		19,520
Megawatt Acquisitionco, Inc.	07/17/24	03/01/30	Business Services	9.25%	SOFR+525		7,880		7,788		7,502
MOREgroup Holdings, Inc.	08/29/24	01/16/30	Business Services	9.25%	SOFR+525		19,700		19,472		19,700
Municipal Emergency Services, Inc.	03/02/22	10/01/27	Distribution	9.15%	SOFR+515		9,575		9,512		9,575
NBH Group, LLC	03/02/22	08/19/26	Healthcare, Education and Childcare	10.12%	SOFR+585		7,180		7,159		7,180
NORA Acquisition, LLC	11/21/23	08/31/29	Healthcare, Education and Childcare	10.35%	SOFR+635		20,090		19,860		19,939
OSP Embedded Purchaser, LLC	01/17/25	12/17/29	Aerospace and Defense	9.76%	SOFR+575		18,926		18,793		18,661
Omnia Exterior Solutions, LLC	07/25/24	12/29/29	Diversified Conglomerate Service	9.26%	SOFR+525		17,982		17,766		17,622
One Stop Mailing, LLC	06/07/23	05/07/27	Transportation	10.53%	SOFR+636		8,274		8,199		8,274
PCS Midco, Inc.	08/29/24	03/01/30	Financial Services	9.75%	SOFR+575		5,753		5,688		5,753
Pink Lily Holdco, LLC (5)	04/01/22	11/09/27	Retail	4.27%			8,761		8,699		3,504
Pacific Purchaser, LLC	03/21/24	10/02/28	Business Services	10.42%	SOFR+625		12,773		12,602		12,721
PAR Excellence Holdings, Inc.	11/26/24	09/03/30	Healthcare, Education and Childcare	9.17%	SOFR+500		9,925		9,842		9,751
Project Granite Buyer, Inc.	07/21/25	12/31/30	Business Services	9.75%	SOFR+575		5,955		5,903		6,015
RRA Corporate, LLC	12/23/24	08/15/29	Business Services	9.25%	SOFR+525		3,960		3,930		3,936
RTIC Subsidiary Holdings, LLC	07/23/24	05/03/29	Consumer Products	9.75%	SOFR+575		24,700		24,365		24,453
Radius Aerospace, Inc.	11/06/19	03/29/27	Aerospace and Defense	10.45%	SOFR+615		11,780		11,714		11,515
Rancho Health MSO, Inc.	03/02/22	06/20/29	Healthcare, Education and Childcare	9.29%	SOFR+500		22,704		22,631		22,704
Recteq, LLC	06/26/24	01/29/26	Consumer Products	10.40%	SOFR+640		9,550		9,537		9,526
Riverpoint Medical, LLC	03/02/22	06/21/27	Healthcare, Education and Childcare	8.75%	SOFR+475		3,891		3,861		3,891
Ro Health, LLC	04/03/25	01/17/31	Healthcare Providers & Services	8.50%	SOFR+450		9,308		9,249		9,308
Rural Sourcing Holdings, Inc.	07/24/23	06/16/29	Professional Services	9.92%	SOFR+575		5,435		5,367		4,891
Sabel Systems Technology Solutions, LLC	01/07/25	10/31/30	Business Services	9.91%	SOFR+575		11,910		11,813		11,910
Sales Benchmark Index, LLC	03/02/22	07/07/26	Business Services	10.20%	SOFR+620		6,617		6,597		6,617
Seacoast Service Partners NA, LLC	07/21/25	12/20/29	Diversified Conglomerate Service	9.00%	SOFR+500		4,963		4,926		4,759
Seaway Buyer, LLC	09/14/22	06/13/29	Chemicals, Plastics and Rubber	10.15%	SOFR+615		14,550		14,394		13,568
Sigma Defense Systems, LLC	12/01/23	12/20/27	Telecommunications	10.31%	SOFR+615		23,904		23,741		23,904
SpendMend Holdings, LLC	07/24/23	03/01/28	Business Services	9.15%	SOFR+515		9,412		9,261		9,412
STG Distribution, LLC - First Out New Money Term Loans	10/03/24	10/03/29	Transportation	12.57%	SOFR+835		1,986		1,895		1,768
STG Distribution, LLC - Second Out Term Loans (5)	10/03/24	10/03/29	Transportation	5.32%			4,566		2,594		365
SV-Aero Holdings, LLC	10/31/24	11/01/30	Aerospace and Defense	9.00%	SOFR+500		14,719		14,656		14,719
Systems Planning And Analysis, Inc.	03/02/22	08/16/27	Aerospace and Defense	8.92%	SOFR+475		16,919		16,816		16,784
TCG 3.0 Jogger Acquisitionco, Inc.	02/27/24	01/23/29	Media	10.52%	SOFR+650		9,850		9,732		9,801
TMII Enterprises, LLC	07/24/23	12/22/28	Personal, Food and Miscellaneous Services	8.66%	SOFR+450		19,878		19,692		19,878
TPC US Parent, LLC	03/02/22	11/24/25	Food	10.19%	SOFR+590		11,275		11,269		11,185
Team Services Group, LLC	07/24/23	12/20/27	Healthcare, Education and Childcare	9.56%	SOFR+525		9,588		9,434		9,548
The Bluebird Group, LLC	03/02/22	07/28/26	Business Services	9.90%	SOFR+590		16,348		16,306		16,348
The Vertex Companies, LLC	03/02/22	08/31/28	Business Services	8.93%	SOFR+475		14,480		14,393		14,408
Transgo, LLC	06/07/24	12/29/28	Auto Sector	9.91%	SOFR+575		16,363		16,215		16,486
Tyto Athene, LLC	03/02/22	04/01/28	Aerospace and Defense	9.19%	SOFR+490		11,342		11,271		11,058
Urology Management Holdings, Inc.	07/24/23	06/15/27	Healthcare, Education and Childcare	9.66%	SOFR+550		12,380		12,333		12,380
US Fertility Enterprises, LLC	09/03/25	10/11/31	Healthcare, Education and Childcare	8.67%	SOFR+450		4,975		4,931		4,975
Watchtower Buyer, LLC	09/19/24	12/01/29	Consumer Products	10.00%	SOFR+600		23,114		22,912		22,885
Wash & Wax Systems, LLC	04/30/25	04/30/28	Business Services	9.81%	SOFR+550		6,577		6,686		6,708
Total First Lien Secured Debt									1,276,720		1,253,543
Subordinated Debt - 3.7% of Net Assets
Wash & Wax Systems, LLC - Subordinate Debt	04/30/25	07/30/28	Business Services	12.00%			4,422		4,422		4,422

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2025
($ in thousands)
Issuer Name	Acquisition	Maturity		Industry	Current<br>Coupon		Basis Point<br>Spread Above<br>Index (1)		Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Total Subordinated Debt										4,422		4,422		4,422
Equity Securities - 6.6% of Net Assets
New Insight Holdings, Inc. - Common Equity	07/15/24		—	Business Services		—		—		134,330		2,351		2,014
48Forty Intermediate Holdings, Inc. - Common Equity	11/05/24		—	Containers, Packaging and Glass		—		—		1,988		—		—
Wash & Wax Group, LP - Common Equity	04/30/25		—	Business Services		—		—		2,803		5,002		5,165
White Tiger Newco, LLC - Common Equity	07/31/25		—	Business Services		—		—		10,805		824		757
Total Equity Securities												8,177		7,936
Total Investments - 1,046.0% of Net Assets(3)(6)												1,289,319		1,265,901
Cash and Cash Equivalents - 33.9%
JPMorgan U.S. Government (Money Market Fund)					4.09%							7,972		7,972
Goldman Sachs Financial Square Government Fund (Money Market Fund)					4.18%							6,946		6,946
BlackRock Federal FD Institutional 81 (Money Market Fund)					4.19%							1,920		1,920
Non-Money Market Cash												24,147		24,147
Total Cash and Cash Equivalents												40,985		40,985
Total Investments and Cash Equivalents - 1,079.8% of Net Assets											$	1,330,304	$	1,306,886
Liabilities in Excess of Other Assets — (979.8)% of Net Assets														(1,185,860	)
Members' Equity—100.0%													$	121,026
1 Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR" or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
---
2 Valued based on PSLF's accounting policy.
3 As of September 30, 2025, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,289.3 million, $1,265.9 million and 1,046.0%
4 Non-accrual security.
5 Partial PIK non-accrual security.<br><br>6All of our investments are not registered under the 1933 Act and have restrictions on resale.<br><br>7 The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC, or,3) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VII, LLC, or 4) securing the 2037 Asset-Backed Debt and held through PennantPark CLO X, LLC

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2024
($ in thousands)
Issuer Name	Maturity	Industry	Current<br>Coupon			Basis Point<br>Spread Above<br>Index (1)	Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---	---
First Lien Secured Debt - 916.4%of Net Assets
A1 Garage Merger Sub, LLC	12/22/28	Personal, Food and Miscellaneous Services		10.95	%	SOFR+610		14,738	$	14,504	$	14,738
ACP Avenu Buyer, LLC	10/02/29	Business Services		10.57	%	SOFR+525		7,667		7,526		7,418
ACP Falcon Buyer, Inc.	08/01/29	Business Services		10.83	%	SOFR+550		15,351		15,067		15,412
Ad.net Acquisition, LLC	05/07/26	Media		11.28	%	SOFR+626		4,838		4,838		4,838
Aeronix, Inc. - Term Loan	12/18/28	Aerospace and Defense		9.85	%	SOFR+525		14,888		14,700		14,888
AFC - Dell Holding Corp.	04/09/27	Distribution		10.49	%	SOFR+550		7,131		7,059		7,059
Alpine Acquisition Corp II	11/30/26	Containers, Packaging and Glass		11.30	%	SOFR+610		14,687		14,459		14,100
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	06/10/25	Media		10.75	%	SOFR+650		13,813		13,769		13,675
Anteriad Holdings Inc (fka MeritDirect)	06/30/26	Media		10.50	%	SOFR+590		14,714		14,638		14,714
Applied Technical Services, LLC	12/29/26	Environmental Services		10.50	%	SOFR+590		14,522		14,389		14,304
Arcfield Acquisition Corp.	08/03/29	Aerospace and Defense		11.56	%	SOFR+625		21,574		21,270		21,466
Beacon Behavioral Support Services, LLC	06/21/29	Healthcare, Education and Childcare		9.92	%	SOFR+525		14,963		14,750		14,738
Beta Plus Technologies, Inc.	07/01/29	Business Services		10.35	%	SOFR+575		14,700		14,486		14,259
Big Top Holdings, LLC	02/28/30	Manufacturing / Basic Industries		11.18	%	SOFR+625		6,965		6,852		6,965
Bioderm, Inc.	01/31/28	Healthcare, Education and Childcare		11.84	%	SOFR+650		8,887		8,795		8,776
Blackhawk Industrial Distribution, Inc.	09/17/26	Distribution		10.92	%	SOFR+640		20,504		20,245		20,152
BlueHalo Global Holdings, LLC	10/31/25	Aerospace and Defense		10.70	%	SOFR+600		13,292		13,218		13,026
Broder Bros., Co.	12/04/25	Personal and Non-Durable Consumer Products		10.97	%	SOFR+611		9,374		9,374		9,374
Burgess Point Purchaser Corporation	07/25/29	Auto Sector		10.20	%	SOFR+535		4,874		4,625		4,585
Carisk Buyer, Inc.	11/30/29	Healthcare, Education and Childcare		10.35	%	SOFR+575		5,473		5,400		5,390
Carnegie Dartlet, LLC	02/07/30	Education		10.35	%	SOFR+550		9,950		9,810		9,801
Cartessa Aesthetics, LLC	06/14/28	Distribution		10.35	%	SOFR+575		17,106		16,879		17,106
CF512, Inc.	08/20/26	Media		11.21	%	SOFR+619		2,891		2,876		2,848
Connatix Buyer, Inc.	07/13/27	Media		10.53	%	SOFR+561		8,716		8,702		8,716
Crane 1 Services, Inc.	08/16/27	Personal, Food and Miscellaneous Services		10.71	%	SOFR+586		2,549		2,529		2,530
Dr. Squatch, LLC	08/31/27	Personal and Non-Durable Consumer Products		9.95	%	SOFR+535		22,993		22,842		22,993
DRI Holding Inc.	12/21/28	Media		10.20	%	SOFR+535		5,830		5,423		5,626
DRS Holdings III, Inc.	11/03/25	Consumer Products		11.20	%	SOFR+635		13,777		13,760		13,667
Dynata, LLC - First Out Term Loan	07/15/28	Business Services		10.38	%	SOFR+526		1,588		1,476		1,586
Dynata, LLC - Last Out Term Loan	10/15/28	Business Services		10.88	%	SOFR+576		9,768		9,768		8,993
EDS Buyer, LLC	01/10/29	Aerospace and Defense		10.35	%	SOFR+575		11,144		11,013		10,977
ETE Intermediate II, LLC	05/29/29	Personal, Food and Miscellaneous Services		11.56	%	SOFR+650		12,249		12,049		12,249
Eval Home Health Solutions Intermediate, LLC	05/10/30	Healthcare, Education and Childcare		10.85	%	SOFR+575		7,396		7,293		7,322
Exigo Intermediate II, LLC	03/15/27	Business Services		11.20	%	SOFR+635		9,651		9,556		9,603
Fairbanks Morse Defense	06/17/28	Aerospace and Defense		9.74	%	SOFR+450		3,491		3,417		3,495
Five Star Buyer, Inc.	02/23/28	Hotels, Motels, Inns and Gaming		12.21	%	SOFR+710		4,241		4,175		4,241
Global Holdings InterCo LLC	03/16/26	Banking, Finance, Insurance & Real Estate		11.43	%	SOFR+615		6,952		6,940		6,605
Graffiti Buyer, Inc.	08/10/27	Distribution		10.45	%	SOFR+560		3,118		3,081		3,087
Hancock Roofing and Construction L.L.C.	12/31/26	Insurance		10.20	%	SOFR+560		6,146		6,146		6,023
HEC Purchaser Corp.	06/17/29	Healthcare, Education and Childcare		9.75	%	SOFR+550		7,980		7,887		7,924
Hills Distribution, Inc	11/08/29	Distribution		11.11	%	SOFR+600		14,292		14,106		14,149
HV Watterson Holdings, LLC	12/17/26	Business Services	12.00% (PIK 4.0%)					15,144		15,019		13,887
HW Holdco, LLC	05/10/26	Media		11.04	%	SOFR+590		18,355		18,296		18,355
IG Investments Holdings, LLC	09/22/28	Business Services		11.35	%	SOFR+610		4,383		4,322		4,339
Imagine Acquisitionco, LLC	11/15/27	Business Services		10.20	%	SOFR+510		5,509		5,440		5,481
Infinity Home Services Holdco, Inc.	12/28/28	Personal, Food and Miscellaneous Services		11.49	%	SOFR+685		13,890		13,730		14,029
Infolinks Media Buyco, LLC	11/01/26	Media		10.10	%	SOFR+550		12,286		12,214		12,194
Inventus Power, Inc.	06/30/25	Consumer Products		12.46	%	SOFR+761		13,101		12,980		12,905
Kinetic Purchaser, LLC	11/10/27	Consumer Products		10.75	%	SOFR+615		13,701		13,520		13,701
LAV Gear Holdings, Inc.	10/31/25	Leisure, Amusement, Motion Pictures, Entertainment		11.66	%	SOFR+640		4,613		4,601		4,530
Lash OpCo, LLC	02/18/27	Consumer Products	12.94% (PIK 5.10%)			SOFR+785		20,447		20,338		20,243
Lightspeed Buyer Inc.	02/03/26	Healthcare, Education and Childcare		10.20	%	SOFR+535		14,267		14,170		14,267
LJ Avalon Holdings, LLC	01/31/30	Environmental Services		10.48	%	SOFR+525		6,255		6,151		6,255
MAG DS Corp.	04/01/27	Aerospace and Defense		10.20	%	SOFR+550		8,266		7,890		7,770
Magenta Buyer, LLC -First out	07/31/28	Software		12.13	%	SOFR+701		450		450		425
Magenta Buyer, LLC -Second out	07/31/28	Software		12.38	%	SOFR+801		569		569		390
PennantPark Senior Loan Fund LLC
---
Consolidated Schedule of Investments
September 30, 2024
($ in thousands)
Issuer Name	Maturity		Industry	Current<br>Coupon			Basis Point<br>Spread Above<br>Index (1)		Par		Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Magenta Buyer, LLC -Third out	07/31/28		Software		11.63	%	SOFR+726			2,109		2,109		617
MBS Holdings, Inc.	04/16/27		Telecommunications		10.67	%	SOFR+585			8,330		8,256		8,338
Meadowlark Acquirer, LLC	12/10/27		Business Services		10.50	%	SOFR+590			2,923		2,884		2,850
Medina Health, LLC	10/20/28		Healthcare, Education and Childcare		10.85	%	SOFR+625			14,912		14,765		14,912
Megawatt Acquisitionco, Inc.	03/01/30		Business Services		9.85	%	SOFR+525			7,960		7,851		7,514
MOREgroup Holdings, LLC	01/16/30		Business Services		10.35	%	SOFR+575			12,450		12,303		12,263
Municipal Emergency Services, Inc.	10/01/27		Distribution		9.77	%	SOFR+515			5,912		5,822		5,912
NBH Group LLC	08/19/26		Healthcare, Education and Childcare		11.19	%	SOFR+585			7,353		7,311		7,133
NORA Acquisition, LLC	08/31/29		Healthcare, Education and Childcare		10.95	%	SOFR+635			14,850		14,597		14,850
Omnia Exterior Solutions, LLC	12/29/29		Diversified Conglomerate Service		10.01	%	SOFR+550			9,768		9,650		9,622
One Stop Mailing, LLC	5/7/2027		Transportation		11.21	%	SOFR+636			8,380		8,256		8,380
Owl Acquisition, LLC	2/4/2028		Education		10.20	%	SOFR+535			3,893		3,811		3,825
Ox Two, LLC	5/18/2026		Distribution		11.12	%	SOFR+651			9,340		9,307		9,340
Pacific Purchaser, LLC	10/2/2028		Business Services		11.51	%	SOFR+600			12,903		12,682		12,877
PCS Midco, Inc.	3/1/2030		Financial Services		10.81	%	SOFR+575			5,812		5,735		5,812
PL Acquisitionco, LLC	11/9/2027		Retail	11.99% (PIK 3.5%)			SOFR+725			8,193		8,100		6,554
Quantic Electronics, LLC	11/19/2026		Aerospace and Defense		10.95	%	SOFR+635			3,280		3,245		3,263
RTIC Subsidiary Holdings, LLC	5/3/2029		Consumer Products		10.35	%	SOFR+575			19,950		19,673		19,551
Radius Aerospace, Inc.	3/31/2025		Aerospace and Defense		10.75	%	SOFR+575			12,565		12,543		12,313
Rancho Health MSO, Inc.	12/18/2025		Healthcare, Education and Childcare		10.85	%	SOFR+560			5,530		5,530		5,530
Reception Purchaser, LLC	4/28/2028		Transportation		25.00	%	SOFR+615			4,937		4,888		3,703
Recteq, LLC	1/29/2026		Consumer Products		11.75	%	SOFR+715			9,650		9,592		9,554
Riverpoint Medical, LLC	6/21/2025		Healthcare, Education and Childcare		9.85	%	SOFR+525			3,932		3,919		3,936
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	6/16/2029		Professional Services		10.74	%	SOFR+575			4,336		4,268		4,282
S101 Holdings Inc.	12/29/2026		Electronics		11.48	%	SOFR+615			6,467		6,387		6,402
Sales Benchmark Index LLC	1/3/2025		Business Services		10.80	%	SOFR+620			6,676		6,668		6,676
Sargent & Greenleaf Inc.	12/20/2024		Electronics	12.45% (PIK 1.00%)			SOFR+760			4,634		4,634		4,634
Seaway Buyer, LLC	6/13/2029		Chemicals, Plastics and Rubber		10.75	%	SOFR+615			14,700		14,510		14,186
Sigma Defense Systems, LLC	12/18/2027		Telecommunications		11.50	%	SOFR+690			14,621		14,465		14,475
Simplicity Financial Marketing Group Holdings, Inc	12/2/2026		Banking, Finance, Insurance & Real Estate		11.38	%	SOFR+640			11,359		11,207		11,472
Skopima Consilio Parent, LLC	5/17/2028		Business Services		9.46	%	SOFR+461			1,290		1,269		1,289
Smartronix, LLC	11/23/2028		Aerospace and Defense		10.35	%	SOFR+610			25,078		24,798		25,073
Solutionreach, Inc.	7/17/2025		Communications		12.40	%	SOFR+715			9,239		9,216		9,239
SpendMend Holdings, LLC	3/1/2028		Business Services		10.26	%	SOFR+565			9,510		9,302		9,510
Summit Behavioral Healthcare, LLC	11/24/2028		Healthcare, Education and Childcare		9.31	%	SOFR+425			3,554		3,398		3,305
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	8/16/2027		Aerospace and Defense		10.26	%	SOFR+500			15,803		15,600		15,772
TCG 3.0 Jogger Acquisitionco, Inc.	1/23/2029		Media		11.10	%	SOFR+650			9,950		9,800		9,851
TPC US Parent, LLC	11/24/2025		Food		10.98	%	SOFR+565			11,392		11,330		11,392
TWS Acquisition Corporation	6/6/2025		Education		11.33	%	SOFR+640			1,568		1,567		1,568
Team Services Group, LLC	11/24/2028		Healthcare, Education and Childcare		9.95	%	SOFR+510			9,661		9,462		9,537
Teneo Holdings LLC	3/13/2031		Business Services		9.60	%	SOFR+475			2,985		2,955		2,994
The Bluebird Group LLC	7/27/2026		Business Services		11.25	%	SOFR+665			14,445		14,404		14,445
The Vertex Companies, LLC	8/31/2027		Business Services		10.99	%	SOFR+610			7,611		7,536		7,611
Transgo, LLC	12/29/2028		Auto Sector		10.60	%	SOFR+575			14,479		14,282		14,479
Tyto Athene, LLC	4/3/2028		Aerospace and Defense		10.23	%	SOFR+490			11,393		11,306		11,165
Urology Management Holdings, Inc.	6/15/2026		Healthcare, Education and Childcare		11.46	%	SOFR+550			10,928		10,836		10,819
Watchtower Buyer, LLC	12/1/2029		Consumer Products		10.60	%	SOFR+600			13,942		13,769		13,803
Wildcat Buyerco, Inc.	2/27/2027		Electronics		10.60	%	SOFR+575			19,256		19,126		19,256
Zips Car Wash, LLC	12/31/2024		Business Services	12.46% (PIK 1.5%)			SOFR+740			19,687		19,648		18,801
Total First Lien Secured Debt												1,033,954		1,028,874
Equity Security - 2.1% of Net Assets
Dynata, LLC - Common Equity		—	Business Services		—			—		134		2,351		2,351
Total Investments - 918.5% of Net Assets (3)(4)												1,036,305		1,031,225
Cash and Cash Equivalents - 32.6% o f Net Assets
BlackRock Federal FD Institutional 30 (Money Market Fund)												36,595		36,595
Total Cash and Cash Equivalents												36,595		36,595
PennantPark Senior Loan Fund LLC
---
Consolidated Schedule of Investments
September 30, 2024
($ in thousands)
Issuer Name	Maturity	Industry	Current<br>Coupon	Basis Point<br>Spread Above<br>Index (1)	Par	Cost		Fair Value (2)
---	---	---	---	---	---	---	---	---	---	---
Total Investments and Cash Equivalents - 951.1% of Net Assets						$	1,072,900	$	1,067,820
Liabilities in Excess of Other Assets — (851.1)% of Net Assets									(955,549	)
Members' Equity—100.0%								$	112,271
1Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate ("S" or "SOFR"). The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to the SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
---
2Valued based on PSLF's accounting policy .
3 As of September 30, 2024, all investments are in US Companies. Total cost, fair value, and percentage of Net Assets for U.S. Companies were $1,036.3 million, $1,031.2 million and 918.5%<br><br>4All of our investments are not registered under the 1933 Act and have restrictions on resale.<br><br>5 The securities are, 1) pledged as collateral under the BNP Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC; or, 3)<br>securing the 2035 Asset-Backed Debt held through PennantPark CLO VII, LLC

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

ORGANIZATION

PennantPark Senior Loan Fund, LLC, or PSLF, is organized as a Delaware limited liability company and commenced operations in July 2020. PSLF is a joint venture between PennantPark Investment Corporation ("PNNT") and Pantheon Ventures (UK), LLP ("Pantheon"). In this report, except where the context suggests otherwise, the terms “Company,” “we,” “our,” or “us” refer to PSLF and its consolidated subsidiary.

The Company's investment objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments primarily made to U.S. middle-market companies in the form of first lien secured debt, second lien secured debt and subordinated debt and equity investments.

PNNT and Pantheon (individually a "Member" and collectively the "Members"), provide capital to PSLF in the form of notes and equity interests. On July 31, 2020, PNNT contributed its formerly wholly-owned subsidiary, PennantPark Investment Funding I, LLC (“Funding I”) to the Company in exchange for a 72% stake in PSLF. As of July 31, 2020, Funding I held $356.1 million of senior loans at fair value and had $240.0 million of debt outstanding (see Note 10). On July 31, 2020 Pantheon invested $35.0 million to acquire a 28% stake in PSLF of which $22.5 million was used to partially pay down Funding I's outstanding debt. Subsequent to the contribution of Funding I by PNNT, Funding I became a wholly-owned subsidiary of PSLF and its operations are consolidated with and into the operations of PSLF.

On October 31, 2020, PNNT and Pantheon contributed an additional $1.8 million and $27.5 million, respectively, to PSLF. PNNT’s and Pantheon’s additional investments came in at PSLF’s then current Members’ equity. As a result of the additional capital contribution, PNNT and Pantheon owned 60.5% and 39.5%, respectively, of the outstanding notes and equity interests of PSLF.

On August 28, 2024, PNNT and Pantheon committed to fund additional capital in the form of notes and equity interest of $52.5 million and $75.0 million, respectively, to PSLF (see Note 6). As a result of this additional capital committed, PNNT and Pantheon will own 54.8% and 45.2%, respectively, of the outstanding notes and equity interests of PSLF after all the upsize commitments are funded. As of September 30, 2025, based on additional capital commitments funded, PNNT and Pantheon ownership percentages were 55.8% and 44.2%, respectively

On August 28, 2024, PSLF’s LLC agreement was amended to give Members the option to redeem at least 25% of its Membership interest, allocated proportionally between that redeeming Members note and equity interest and shall be redeemed within eighteen months and three years subject to sufficient liquidity.

The administrative agent of the Company is PennantPark Investment Administration, LLC (the "Administrative Agent"). The Bank of New York Mellon Corporation (the "Sub-Administrator") provides certain services to the Company with respect to certain accounting matters and has the responsibility for the official books and records.

PNNT and Pantheon each appointed two members to PSLF’s four-person member designees’ committee. All material decisions with respect to PSLF, including those involving its investment portfolio, require unanimous approval of a quorum of the member designees. Quorum is defined as (i) the presence of two members of the member designees’ committee; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the member designees’ committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the member designees or investment committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each member.

PennantPark CLO IV, LLC ("CLO IV") is a wholly-owned subsidiary and was formed in March 2022 for the purpose of executing a debt securitization (See Note 10).

PennantPark CLO VII, LLC ("CLO VII") is a wholly-owned subsidiary and was formed in July 2023 for the purpose of executing a debt securitization (See Note 10).

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

PennantPark CLO X, LLC ("CLO X") is a wholly-owned subsidiary and was formed in November 2024 for the purpose of executing a debt securitization (See Note 10).

SIGNIFICANT ACCOUNTING POLICIES

PSLF is considered an investment company under U.S. generally accepted accounting principles ("GAAP") and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. References to the Accounting Standards Codification, as amended ("ASC"), serves as a source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the consolidated financial statements are issued. The preparation of our consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported periods. In the opinion of the Company, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Actual results could differ from these estimates due to changes in the economic and regulatory environment, financial markets and any other parameters used in determining such estimates and assumptions. We have eliminated all intercompany balances and transactions.

Our significant accounting policies consistently applied are as follows:

(a) Investment Valuations

We expect that there may not be readily available market values for many of our investments, which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our member designees’ using a documented valuation policy, described herein, and a consistently applied valuation process. With respect to investments for which there is no readily available market value, the factors that the member designees’ may consider in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. (see Note 4).

Our portfolio generally consists of illiquid securities, including debt investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our member designees’ undertakes a multi-step valuation process each quarter, as described below:

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of PennantPark Investment Advisers, LLC, the investment adviser to PNNT, responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of PennantPark Investment Advisers, LLC;
Our member designees also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review PennantPark Investment Advisers, LLC’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
Our member designees reviews valuations of PennantPark Investment Advisers, LLC and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and
Our member designees assesses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of PennantPark Investment Advisers, LLC and the respective independent valuation firms.

Our member designees generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. PennantPark Investment Advisers, LLC assesses the source and reliability of bids from brokers or dealers. If the member designees’ has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

(b) Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses

Security transactions are recorded on a trade date basis. We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual payment-in-kind, or PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable, interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount ("OID"), market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest receivable is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company's judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in the Company's judgment, are likely to remain current. As of September 30, 2025 there were four loans on non-accrual, representing 3.3% and 1.6%. As of September 30, 2024 the Company did not have any loans on non-accrual status.

We measure realized gains and losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in the fair values of our portfolio investments during the reporting period, including any reversal of previously recorded unrealized appreciation and depreciation, when gains or losses are realized.

PSLF is classified as a partnership for U.S. federal income tax purposes and is not subject to U.S. federal income tax. Accordingly, no provisions for U.S. income taxes have been made. The Members are responsible for reporting their share of the PSLF’s income or loss on their U.S. income tax returns.

In accordance with FASB ASC Topic 740, the Company is required to determine whether a tax position of PSLF is more likely than not, based on the technical merits of the position, to be sustained upon examination including resolution of any related appeals or litigation processes. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized could result in PSLF recording a tax liability that would reduce members’ capital.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

For the years ended September 30, 2025 and 2024, there were no material uncertain income tax positions.

(d) Foreign Currency Translation

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

(e) Consolidation

As explained by ASC paragraph 946-810-45, PSLF will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to us.

(f) Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” ("ASU 2020-04"). The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company utilized the optional expedients and exceptions provided by ASU 2020-04 during the year ended September 30, 2025, the effect of which was not material to the consolidated financial statements and the notes thereto.

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions", which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company has adopted this new accounting standard and the effect was not material to the consolidated financials statements.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

AGREEMENTS AND RELATED PARTY TRANSACTIONS

For the years ended September 30, 2025 and 2024, PSLF purchased $462.8 million and $308.7 million of investments from PNNT, respectively.

For the years ended September 30, 2025 and 2024, PSLF incurred $3.5 million and $2.4 million of administration fees to the Administrative Agent, respectively. The Administrative Agent provides administration services to PSLF at an annual rate of 0.25% based on average gross assets under management payable quarterly in arrears and calculated based on average gross assets (measured at cost) at the end of the two recently completed calendar quarters. As of September 30, 2025 and 2024, Accounts payable and accrued expenses includes $0.87 million and $0.64 million respectively of Administration services payable to the Administrative Agent.

For the years ended September 30, 2025 and 2024, PSLF incurred $30.4 million and $24.9 million of interest expense related to the notes outstanding with the Members, respectively.

As of September 30, 2025 and 2024, PSLF had a receivable from PNNT of zero and $0.03 million, respectively presented as a component of Due from Affiliate on the consolidated statement of assets, liabilities and members' equity. These amounts are related to cash owed from PNNT in connection with trades between the funds. Additionally, PSLF had a receivable from the Administrative Agent of $0.09 million and $0.04 million as of September 30, 2025 and 2024 related to loan agency fees received by the Administrative agent and is owed to PSLF.

As of September 30, 2025, Due to Affiliate of $0.05 million represents amount due to the Administrative Agent for expenses paid on our behalf.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value, as defined under ASC Topic 820, Fair Value Measurement, is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC Topic 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (un-adjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

The inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data is available, such information may be the result of consensus pricing information, disorderly transactions or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2 asset includes observable market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.

Our investments are generally structured as debt in the form of first lien secured debt, but may also include second lien secured debt, subordinated debt and equity investments. The transaction price, excluding transaction costs, is typically the best estimate of fair value at inception. Ongoing reviews by the Members and independent valuation firms are based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information including comparable transactions, performance multiples and yields, among other factors. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy.

In addition to using the above inputs in valuing cash equivalents and investments, we employ the valuation policy approved by our member designees’ that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value. (see Note 2).

As outlined in the table below, some of our Level 3 investments using a market comparable valuation technique are valued using the average of the bids from brokers or dealers. The bids include a disclaimer, may not have corroborating evidence, may be the result of a disorderly transaction and may be the result of consensus pricing. The Members assess the source and reliability of bids from brokers or dealers. If the member designee has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

Some of our investments can also be valued using a market comparable or an enterprise market value technique. With respect to investments for which there is no readily available market value, the factors that the member designees’ may consider in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the pricing indicated by the external event, excluding transaction costs, is used to corroborate the valuation. When using earnings multiples to value a portfolio company, the multiple used requires the use of judgment and estimates in determining how a market participant would price such an asset. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in an EBITDA multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA will have the opposite effect.

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

Asset Category		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	47,178	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	1,194,313	Market Comparable	Market Yield	7.6% - 23.9% (9.7%)
First lien	12,052	Enterprise Market Value	EBITDA Multiple	0.6x - 8.3x (6.1x)
Subordinated debt	4,422	Market Comparable	Market Yield	12.0% - 12.0% (12.0%)
Equity	7,936	Market Comparable	EBITDA Multiple	6x - 10.5x (9.1x)
Total Level 3 investments	1,265,901
Asset Category		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	88,632	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	933,688	Market Comparable	Market Yield	7.9% - 21.4% (10.2%)
First lien	6,554	Enterprise Market Value	EBITDA Multiple	0.9x - 0.9x (0.9x)
Equity	2,351	Enterprise Market Value	EBITDA Multiple	6.0x
Total Level 3 investments	1,031,225

All values are in US Dollars.

(1) The weighted average disclosed in the tables above was weighted by its relative fair value.

Our investments and cash and cash equivalents were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):

	Fair Value at September 30, 2025
Description	Level 1		Level 2		Level 3		Total
First lien			$	—		1,253,543	$	1,253,543
Equity				—		7,936		7,936
Subordinated Debt				—		4,422		4,422
Total investments				—		1,265,901		1,265,901
Cash and cash equivalents		40,985		—				40,985
Total investments, cash and cash equivalents		40,985	$	—		1,265,901	$	1,306,886
	Fair Value at September 30, 2024
Description	Level 1		Level 2		Level 3		Total
First lien			$	—		1,028,874	$	1,028,874
Equity				—		2,351		2,351
Total investments				—		1,031,225		1,031,225
Cash and cash equivalents		36,595		—				36,595
Total investments, cash and cash equivalents		36,595	$	—		1,031,225	$	1,067,820

All values are in US Dollars.

For the year ended September 30, 2025, the amount of Level 3 purchases, including PIK interest, net discount accretion, non-cash exchanges and purchase of investments from non-cash contributions for the year were $556.1 million. There were no Level 3 transfers.

For the year ended September 30, 2024, the amount of Level 3 purchases, including PIK interest, net discount accretion and non cash exchanges, for the year were $401.3 million. There were no Level 3 transfers.

CASH AND CASH EQUIVALENTS

Cash equivalents represent cash invested in overnight money market funds. These temporary investments with original maturities of 90 days or less are deemed cash equivalents. Cash deposited at financial institutions is insured by the Federal Deposit Insurance Corporation (“FDIC”), up to specified limits. At times, such balances may exceed FDIC insured amounts. As of September 30, 2025 and 2024, $16.8 million and $36.6 million, respectively, included in the cash and cash equivalents balance on the Consolidated Statement of Assets, Liabilities and Members' Equity is comprised of money

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

market funds, which are not subject to FDIC insurance. PSLF believes it is not exposed to any significant risk of loss on its cash and cash equivalents.

MEMBERS’ EQUITY

PNNT and Pantheon provide capital to PSLF in the form of equity interests. As described in Note 1, PNNT and Pantheon's initial equity interests ownership percentages were 72.0% and 28.0%, respectively. On October 31, 2020, PNNT and Pantheon contributed an additional $10.8 million , non pro-rata, to PSLF. PNNT and Pantheon’s additional equity investments came in at PSLF’s then current Members' equity. As a result, PNNT and Pantheon owned 60.5% and 39.5%, respectively, of the equity interests of PSLF.

On August 28, 2024, PNNT and Pantheon committed to fund additional equity interest of $19.9 million and $28.5 million, respectively, to PSLF. As a result of the additional commitment, PNNT and Pantheon will own 54.8% and 45.2%, respectively, of the equity interests of PSLF after the upsize commitments are funded.

As of September 30, 2025 and 2024, PNNT had commitments to fund equity interests to PSLF of $87.4 million and $87.4 million, respectively, of which $5.0 million and $19.9 million, respectively, were unfunded.

As of September 30, 2025 and 2024, Pantheon had commitments to fund equity interests to PSLF of $73.4 million and $73.4 million, respectively, of which $7.1 million and $28.5 million, respectively were unfunded.

As of September 30, 2025 the equity interest ownership percentages was 55.8% and 44.2%, respectively based on commitments funded. As of September 30, 2024 the equity interest ownership percentages was 60.5% and 39.5%, respectively based on commitments funded.

NOTES PAYABLE TO MEMBERS

PNNT and Pantheon provide capital to PSLF in the form of subordinated notes ("Member Notes"). As described in Note 1, PNNT and Pantheon initially owned 72.0% and 28.0% respectively, of the Member Notes. On October 31, 2020, PNNT and Pantheon contributed an additional $18.5 million, non pro-rata, to PSLF in the form of additional Member notes. As a result, PNNT and Pantheon owned 60.5% and 39.5%, respectively, of the Member notes of PSLF. As of September 30, 2024, the subordinated notes ownership percentages remained 60.5% and 39.5% respectively based on commitments funded. The notes bear interest at 3-month LIBOR plus 8% prior to June 30, 2023 and 3-month SOFR plus 8% after June 30, 2023 and matures on July 31, 2027.

On August 28, 2024, PNNT and Pantheon committed to fund additional Member Notes of $32.6 million and $46.5 million, respectively, to PSLF. As part of the additional commitment, the Member Notes were extended to July 31, 2032. The Member Notes bear interest at the higher of 3-month SOFR or 1%. As a result of the additional commitment, PNNT and Pantheon will own 54.8% and 45.2%, respectively, of the Member Notes of PSLF after the upsize commitments are funded. As of September 30, 2025, the subordinated notes ownership percentages were 55.8% and 44.2% respectively, for PNNT and Pantheon. As of September 30, 2025 and September 30, 2024, the interest rate on the Member Notes was was 12.3% and 13.3%, respectively.

As of September 30, 2025 and 2024, PNNT had commitments to fund Member Notes to PSLF of $148.5 million and $148.5 million, respectively, of which $8.2 million and $32.6 million, respectively, were unfunded.

As of September 30, 2025 and 2024, Pantheon had commitments to fund Member Notes to PSLF of $122.2 million and $122.2 million, respectively, of which $11.7 million and $46.5 million, respectively were unfunded.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

RISKS AND UNCERTAINTIES

Investments

PSLF seeks investment opportunities that offer the possibility of attaining income generation, capital preservation and capital appreciation including investments in private companies. Certain events particular to each industry in which PSLF’s investments conduct their operations, as well as general economic and political conditions, may have a significant negative impact on the investee’s operations and profitability. Such events are beyond PSLF’s controls, and the likelihood that they may occur cannot be predicted. Furthermore, investments of PSLF are made in private companies and there are generally no public markets for these securities at the current time. The ability of PSLF to liquidate these investments and realize value is subject to significant limitations and uncertainties.

Leverage Risk

PSLF may borrow funds in order to increase the amount of capital available for investment. The use of leverage can improve the return on invested capital, however, such use may also magnify the potential for loss on invested capital. If the value of PSLF’s assets decreases, leveraging would cause members’ equity to decline more sharply than it otherwise would have had PSLF not used leverage. Similarly, any decrease in PSLF’s income would cause net income to decline more sharply than it would have had PSLF not borrowed. Borrowings will usually be from credit facilities or debt securitizations which will typically be secured by PSLF’s securities and other assets. Under certain circumstances, such debt may demand an increase in the collateral that secures PSLF’s obligations and if PSLF was unable to provide additional collateral, the debt could liquidate assets held in the account to satisfy PSLF’s obligations. Liquidation in this manner could have adverse consequences. Additionally, the amount of PSLF’s borrowings and the interest rates on those borrowings, which will fluctuate, could have a significant effect on PSLF’s profitability.

Credit Risk

PSLF primarily invests in first lien secured debt to middle-market companies. A majority of the investments held by PSLF are subject to restrictions on their resale or are otherwise illiquid. PSLF assumes the credit risk of the borrower. In the event that the borrower becomes insolvent or enters bankruptcy, PSLF may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

FINANCIAL HIGHLIGHTS

The Members are responsible for all investment making and business decisions, therefore, there is no requirement to show financial highlights per ASC Topic 946, which have been omitted accordingly.

LEVERAGE

Credit Facility

As described in Note 1 above, PNNT contributed Funding I to the Company. As of the contribution date Funding I had a $250 million senior secured revolving credit facility with BNP Paribas (the “BNP Credit Facility”). The BNP Credit Facility is secured by all of the assets of Funding I.

In November 2020, Funding I amended the BNP Credit Facility and increased the size to $275 million.

In March 2022, Funding I amended the BNP Credit Facility and reduced the total commitment to $225 million, extended the revolving period to March 2025 and extended maturity to March 2027.

In September 2022, Funding I amended the BNP Credit Facility and increased the total commitment to $325 million and amended the interest rate to SOFR plus 2.60%.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

On August 27, 2024, Funding I amended the BNP Credit Facility and increased the total commitment to $400 million and amended the interest rate to SOFR plus 2.53%.

On December 20, 2024, Funding I amended the BNP Credit Facility and extended the maturity to December 2029 and amended the interest rate to SOFR plus 2.25%. The total commitment was unchanged at $400 million.

As of September 30, 2025 and September 30, 2024, there were $99.6 million and $247.6 million in outstanding borrowings and we are in compliance with all required covenants. As of September 30, 2025 the interest rate was 6.5%. As of September 30, 2024 the weighted average interest rate was 7.7%.

Asset - Backed Debt - CLO IV

On March 2, 2022, CLO IV completed a $304 million debt securitization in the form of a collateralized loan obligation (the "2034 Debt Securitization" or "2034 Asset-Backed Debt"). The 2034 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2034 Debt Securitization was executed through a private placement of: (i) $30.0 million Class A-1a Loans maturing 2034, which bear interest at the three-month SOFR plus 1.7%, (ii) $50.0 million Class A-1b Senior Secured Fixed Rate Notes due 2034, which bear interest at 3.45%, (iii) $12.0 million Class A-2 Senior Secured Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 1.9%, (iv) $21.0 million Class B Senior Secured Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 2.1%, (v) $24.0 million Class C Secured Deferrable Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 2.9%, (vi) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 4.0%, and (vii) $91.0 million Class A-1a Senior Secured Floating Rate notes due 2034 which bears interest at the three-month SOFR plus 1.7%, under a credit agreement by and among CLO IV, as issuer, various financial institutions, as lenders, and Wilmington Trust, National Association, as collateral trustee and as loan agent. As of September 30, 2025 and September 30, 2024, there was $246.0 million and $246.0 million of 2034 Asset-Backed Debt and there was $0.9 million and $1.3 million, respectively of un-amortized financing costs. As of September 30, 2025 and September 30, 2024 the weighted average interest rate was 5.5% and 6.0% respectively.

On the closing date of the 2034 Debt Securitization, in consideration of our transfer to CLO IV of the initial closing date loan portfolio, PSLF received 100% of the Subordinated Notes (the "2034 Sub Notes") of CLO IV, and a portion of the net cash proceeds received from the sale of the 2034 Asset-Backed Debt Securitization. The 2034 Sub Notes do not bear interest and had a stated value of approximately $58.0 million at the closing of the 2034 Debt Securitization.

Asset - Backed Debt - CLO VII

On the closing date of the 2035 Debt Securitization, in consideration of our transfer to CLO VII of the initial closing date loan portfolio, PSLF received 100% of the Subordinated Notes (the "2035 Sub Notes") of CLO VII. The 2035 Sub Notes do not bear interest and had a stated value of approximately $54.0 million at the closing of the 2035 Debt Securitization.

On July 21, 2025, CLO VII closed a partial refinancing of the 2035 Debt Securitization where the $21.0 million Class B (B-R) Senior Secured Floating Rate Notes interest rate was decreased to SOFR plus 2.0%, the $24.0 million Class C

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025 (Continued)

(C-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 2.3% and the $18.0 million Class D (D-R) Secured Deferrable Floating Rate Notes interest rate was decreased to SOFR plus 3.4%.

As part of the 2025 Debt Securitization, there was debt modification resulting in debt issuance costs of $0.2 million included in the Consolidated Statements of Operations. There was also debt extinguishments resulting in realized loss on debt extinguishments in the amount of $0.2 million included in the Consolidated Statements of Operations. The remaining fees continue to be amortized and are included in amortization of deferred financing costs in the Consolidated Statements of Cash Flows.

As of September 30, 2025 and September 30, 2024, there was $246.0 million and $246.0 million of 2035 Asset-Backed Debt and there was $1.4 million and $1.9 million, respectively of un-amortized financing costs. As of September 30, 2025 and September 30, 2024 the weighted average interest rate was 6.6% and 8.5% respectively.

Asset - Backed Debt - CLO X

On December 23, 2024, CLO X, LLC ("CLO X”) completed a $400.5 million debt securitization in the form of a collateralized loan obligation (the "2037 Debt Securitization" or"2037 Asset-Backed Debt"). The 2037 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2037 Debt Securitization was executed through a private placement of: (i) $158.0 million Class A-1 Notes maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (ii) $30.0 million Class A-1A Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iii) $40.0 million Class A-1W Loans maturing 2037, which bear interest at the three-month SOFR plus 1.59%, (iv) $16.0 million Class A-2W Loans due 2037, which bear interest at the three-month SOFR plus 1.75%, (v) $28.0 million Class B Notes due 2037, which bear interest at the three-month SOFR plus 1.85%, (vi) $32.0 million Class C Notes due 2037, which bear interest at the three-month SOFR plus 2.40%., (vii) $24.0 million Class D Notes due 2037, which bear interest at the three-month SOFR plus 3.85%. As of September 30, 2025, there was $328.0 million of external 2037 Asset-Backed Debt and $1.9 million of un-amortized financing costs. As of September 30, 2025 the weighted average interest rate was 5.8%.

On the closing date of the 2037 Debt Securitization, in consideration of our transfer to CLO X of the initial closing date loan portfolio, PSLF received 100% of the Subordinated Notes (the "2037 Sub Notes") of CLO X. The 2037 Sub Notes do not bear interest and had a stated value of approximately $72.5 million at the closing of the 2037 Debt Securitization.

The 2034 Asset-Backed Debt, 2035 Asset-Backed Debt and the 2037 Asset-Backed Debt are included in the Consolidated Statement of Assets, Liabilities and Members' Equity as debt of the Company and the sub notes were eliminated in consolidation.

COMMITMENT AND CONTINGENCIES

As of September 30, 2025 and September 30, 2024 the Company did not have unfunded commitments to fund existing investments.

The Company has provided general indemnifications to the Members, any affiliate of the Members, and any person acting on behalf of the Members or that affiliate when they act, in good faith, in the best interest of the Company. The Company is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim but expects the risk of having to make any payments under these general business indemnifications to be remote.

SUBSEQUENT EVENTS

Subsequent events are evaluated and disclosed as appropriate for events occurring through the date of the consolidated financial statements were available to be issued on November 24, 2025. There were no events that require disclosure.

EX-99.4

Exhibit 99.4

PennantPark Senior Loan Fund, LLC

Consolidated Financial Statements and

Independent Auditor’s Report

September 30, 2024 and 2023

Contents

Independent Auditor’s Report	1
Financial Statements:
Consolidated Statements of Assets, Liabilities and Members’ Equity as of September 30, 2024 and 2023	3
Consolidated Statements of Operations for the years ended September 30, 2024 and 2023	4
Consolidated Statements of Changes in Members’ Equity for the years ended September 30, 2024 and 2023	5
Consolidated Statements of Cash Flows for the years ended September 30, 2024 and 2023	6
Consolidated Schedules of Investments as of September 30, 2024 and 2023	7
Notes to Consolidated Financial Statements	11

Independent Auditor’s Report

Member Designees’ Committee

PennantPark Senior Loan Fund, LLC

Opinion

We have audited the consolidated financial statements of PennantPark Senior Loan Fund, LLC and its subsidiaries (the Fund), which comprise the consolidated statements of assets, liabilities, and members’ equity, including the consolidated schedule of investments, as of September 30, 2024 and 2023, the related consolidated statements of operations, changes in members’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2024 and 2023, and the results of its operations, changes in members’ equity and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Fund and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund’s ability to continue as a going concern for a reasonable period of time.

/s/ RSM US LLP

New York, New York

November 25, 2024

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Assets, Liabilities and Members' Equity
( in thousands)
		September 30, 2023
Assets
Investments at fair value (amortized cost—1,036,305 and 810,737, respectively)	1,031,225	$	804,187
Cash and cash equivalents (cost—36,595 and 59,096, respectively)	36,595		59,096
Interest receivable	5,089		5,248
Prepaid expenses and other assets	372		936
Due from affiliates	71		3,296
Total assets	1,073,352		872,763
Liabilities
2034 Asset-backed debt, net (par—246,000 and 246,000, respectively)	244,672		244,284
2035 Asset-backed debt, net (par—246,000 and 246,000, respectively)	244,118		243,727
Notes payable to members	191,546		169,131
Credit facility payable	247,600		88,600
Interest payable on credit facility and asset backed debt	12,525		10,421
Distribution payable to members	8,000		7,250
Payable for investments purchased	7,314		2,002
Interest payable on notes to members	4,372		3,895
Accounts payable and accrued expenses	934		835
Total liabilities	961,081		770,145
Commitments and contingencies (See Note 11)
Members' equity	112,271		102,618
Total liabilities and members' equity	1,073,352	$	872,763

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Operations
( in thousands)

			2023
Investment income:
Interest	114,231		$	88,280
Other income	1,023			1,410
Total investment income	115,254			89,690
Expenses:
Interest expense on credit facility and asset-backed debt	54,405			37,977
Interest expense on notes to members	24,861			20,858
Administration fees	2,423			2,027
General and administrative expenses	1,360			1,090
Total expenses	83,049			61,952
Net investment income	32,205			27,738
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments	(2,838	)		(498	)
Net change in unrealized appreciation (depreciation) on investments	1,462			1,575
Net realized and unrealized gain (loss) on investments	(1,376	)		1,077
Net increase (decrease) in members' equity resulting from operations	30,829		$	28,815

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Changes in Members’ Equity
( in thousands)

			2023
Net change in members’ equity resulting from operations:
Net investment income	32,205		$	27,738
Net realized gain (loss) on investments	(2,838	)		(498	)
Net change in unrealized appreciation (depreciation) on investments	1,462			1,575
Net increase (decrease) in members’ equity resulting from operations	30,829			28,815
Capital Transactions
Capital contributions	14,534			15,341
Distributions	(35,710	)		(26,000	)
Net increase (decrease) in members’ equity	9,653			18,156
Members’ equity
Beginning of year	102,618			84,462
End of year	112,271		$	102,618

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Statements of Cash Flows
( in thousands)

			2023
Cash flows from operating activities:
Net increase (decrease) in members’ equity resulting from operations	30,829		$	28,815
Adjustments to reconcile net increase (decrease) in members’ equity resulting from operations to net cash (used in) provided by operating activities:
Net change in unrealized (appreciation) depreciation on investments	(1,462	)		(1,575	)
Net realized (gain) loss on investments	2,838			498
Net accretion of discount and amortization of premium	(3,560	)		(3,146	)
Purchases of investments	(396,119	)		(176,199	)
Amortization of deferred financing costs	779			460
Payment-in-kind interest	(1,645	)		(225	)
Proceeds from disposition of investments	172,910			106,568
(Increase) Decrease in:
Receivable for investments sold	—			3,870
Interest receivable	159			(2,278	)
Due from affiliate	3,225			(1,275	)
Prepaid expenses and other assets	564			437
Increase (Decrease) in:
Payable for investments purchased	5,312			(35,656	)
Interest payable on credit facility and asset backed debt	2,104			5,745
Interest payable on notes to members	477			1,192
Accrued expenses	99			14
Net cash provided by (used in) operating activities	(183,490	)		(72,755	)
Cash flows from financing activities:
Members’ capital contributions	14,534			15,341
Notes issued to members	22,415			23,659
Distribution paid to members	(34,960	)		(22,750	)
Proceeds from 2035 Asset Backed Debt issued	—			246,000
Discount on 2035 Asset Backed Debt issued	—			(2,344	)
Borrowings under credit facility	218,000			89,000
Repayments under credit facility	(59,000	)		(258,000	)
Net cash provided by (used in) financing activities	160,989			90,906
Net increase (decrease) in cash and cash equivalents	(22,501	)		18,151
Cash and cash equivalents, beginning of year	59,096			40,945
Cash and cash equivalents, end of year	36,595			59,096
Supplemental disclosure of cash flow information:
Interest paid on notes to members	24,384		$	19,666
Interest paid on credit facility and asset backed debt	52,301		$	32,232
Non-Cash Operating and Financing activity:
Non-Cash exchanges and conversions	15,878		$	—

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2024
( in thousands)
Issuer Name 3,4	Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index 1	Par/Shares		Cost		Fair Value 2
First Lien Secured Debt - 916.4%
A1 Garage Merger Sub, LLC	Personal, Food and Miscellaneous Services		10.95	%	SOFR+610		14,738	$	14,504	$	14,738
ACP Avenu Buyer, LLC	Business Services		10.57	%	SOFR+525		7,667		7,526		7,418
ACP Falcon Buyer, Inc.	Business Services		10.83	%	SOFR+550		15,351		15,067		15,412
Ad.net Acquisition, LLC	Media		11.28	%	SOFR+626		4,838		4,838		4,838
Aeronix, Inc. - Term Loan	Aerospace and Defense		9.85	%	SOFR+525		14,888		14,700		14,888
AFC - Dell Holding Corp.	Distribution		10.49	%	SOFR+550		7,131		7,059		7,059
Alpine Acquisition Corp II	Containers, Packaging and Glass		11.30	%	SOFR+610		14,687		14,459		14,100
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	Media		10.75	%	SOFR+650		13,813		13,769		13,675
Anteriad Holdings Inc (fka MeritDirect)	Media		10.50	%	SOFR+590		14,714		14,638		14,714
Applied Technical Services, LLC	Environmental Services		10.50	%	SOFR+590		14,522		14,389		14,304
Arcfield Acquisition Corp.	Aerospace and Defense		11.56	%	SOFR+625		21,574		21,270		21,466
Beacon Behavioral Support Services, LLC	Healthcare, Education and Childcare		9.92	%	SOFR+525		14,963		14,750		14,738
Beta Plus Technologies, Inc.	Business Services		10.35	%	SOFR+575		14,700		14,486		14,259
Big Top Holdings, LLC	Manufacturing / Basic Industries		11.18	%	SOFR+625		6,965		6,852		6,965
Bioderm, Inc.	Healthcare, Education and Childcare		11.84	%	SOFR+650		8,887		8,795		8,776
Blackhawk Industrial Distribution, Inc.	Distribution		10.92	%	SOFR+640		20,504		20,245		20,152
BlueHalo Global Holdings, LLC	Aerospace and Defense		10.70	%	SOFR+600		13,292		13,218		13,026
Broder Bros., Co.	Personal and Non-Durable Consumer Products		10.97	%	SOFR+611		9,374		9,374		9,374
Burgess Point Purchaser Corporation	Auto Sector		10.20	%	SOFR+535		4,874		4,625		4,585
Carisk Buyer, Inc.	Healthcare, Education and Childcare		10.35	%	SOFR+575		5,473		5,400		5,390
Carnegie Dartlet, LLC	Education		10.35	%	SOFR+550		9,950		9,810		9,801
Cartessa Aesthetics, LLC	Distribution		10.35	%	SOFR+575		17,106		16,879		17,106
CF512, Inc.	Media		11.21	%	SOFR+619		2,891		2,876		2,848
Connatix Buyer, Inc.	Media		10.53	%	SOFR+561		8,716		8,702		8,716
Crane 1 Services, Inc.	Personal, Food and Miscellaneous Services		10.71	%	SOFR+586		2,549		2,529		2,530
Dr. Squatch, LLC	Personal and Non-Durable Consumer Products		9.95	%	SOFR+535		22,993		22,842		22,993
DRI Holding Inc.	Media		10.20	%	SOFR+535		5,830		5,423		5,626
DRS Holdings III, Inc.	Consumer Products		11.20	%	SOFR+635		13,777		13,760		13,667
Dynata, LLC - First Out Term Loan	Business Services		10.38	%	SOFR+526		1,588		1,476		1,586
Dynata, LLC - Last Out Term Loan	Business Services		10.88	%	SOFR+576		9,768		9,768		8,993
EDS Buyer, LLC	Aerospace and Defense		10.35	%	SOFR+575		11,144		11,013		10,977
ETE Intermediate II, LLC	Personal, Food and Miscellaneous Services		11.56	%	SOFR+650		12,249		12,049		12,249
Eval Home Health Solutions Intermediate, LLC	Healthcare, Education and Childcare		10.85	%	SOFR+575		7,396		7,293		7,322
Exigo Intermediate II, LLC	Business Services		11.20	%	SOFR+635		9,651		9,556		9,603
Fairbanks Morse Defense	Aerospace and Defense		9.74	%	SOFR+450		3,491		3,417		3,495
Five Star Buyer, Inc.	Hotels, Motels, Inns and Gaming		12.21	%	SOFR+710		4,241		4,175		4,241
Global Holdings InterCo LLC	Banking, Finance, Insurance & Real Estate		11.43	%	SOFR+615		6,952		6,940		6,605
Graffiti Buyer, Inc.	Distribution		10.45	%	SOFR+560		3,118		3,081		3,087
Hancock Roofing and Construction L.L.C.	Insurance		10.20	%	SOFR+560		6,146		6,146		6,023
HEC Purchaser Corp.	Healthcare, Education and Childcare		9.75	%	SOFR+550		7,980		7,887		7,924
Hills Distribution, Inc	Distribution		11.11	%	SOFR+600		14,292		14,106		14,149
HV Watterson Holdings, LLC	Business Services	12.00% (PIK 4.0%)					15,144		15,019		13,887
HW Holdco, LLC	Media		11.04	%	SOFR+590		18,355		18,296		18,355
IG Investments Holdings, LLC	Business Services		11.35	%	SOFR+610		4,383		4,322		4,339
Imagine Acquisitionco, LLC	Business Services		10.20	%	SOFR+510		5,509		5,440		5,481
Infinity Home Services Holdco, Inc.	Personal, Food and Miscellaneous Services		11.49	%	SOFR+685		13,890		13,730		14,029
Infolinks Media Buyco, LLC	Media		10.10	%	SOFR+550		12,286		12,214		12,194
Inventus Power, Inc.	Consumer Products		12.46	%	SOFR+761		13,101		12,980		12,905
Kinetic Purchaser, LLC	Consumer Products		10.75	%	SOFR+615		13,701		13,520		13,701
LAV Gear Holdings, Inc.	Leisure, Amusement, Motion Pictures, Entertainment		11.66	%	SOFR+640		4,613		4,601		4,530
Lash OpCo, LLC	Consumer Products	12.94% (PIK 5.10%)			SOFR+785		20,447		20,338		20,243
Lightspeed Buyer Inc.	Healthcare, Education and Childcare		10.20	%	SOFR+535		14,267		14,170		14,267
LJ Avalon Holdings, LLC	Environmental Services		10.48	%	SOFR+525		6,255		6,151		6,255
MAG DS Corp.	Aerospace and Defense		10.20	%	SOFR+550		8,266		7,890		7,770
Magenta Buyer, LLC -First out	Software		12.13	%	SOFR+701		450		450		425
Magenta Buyer, LLC -Second out	Software		12.38	%	SOFR+801		569		569		390
Magenta Buyer, LLC -Third out	Software		11.63	%	SOFR+726		2,109		2,109		617
MBS Holdings, Inc.	Telecommunications		10.67	%	SOFR+585		8,330		8,256		8,338
Meadowlark Acquirer, LLC	Business Services		10.50	%	SOFR+590		2,923		2,884		2,850
Medina Health, LLC	Healthcare, Education and Childcare		10.85	%	SOFR+625		14,912		14,765		14,912
Megawatt Acquisitionco, Inc.	Business Services		9.85	%	SOFR+525		7,960		7,851		7,514
MOREgroup Holdings, LLC	Business Services		10.35	%	SOFR+575		12,450		12,303		12,263
Municipal Emergency Services, Inc.	Distribution		9.77	%	SOFR+515		5,912		5,822		5,912
NBH Group LLC	Healthcare, Education and Childcare		11.19	%	SOFR+585		7,353		7,311		7,133
NORA Acquisition, LLC	Healthcare, Education and Childcare		10.95	%	SOFR+635		14,850		14,597		14,850
Omnia Exterior Solutions, LLC	Diversified Conglomerate Service		10.01	%	SOFR+550		9,768		9,650		9,622
One Stop Mailing, LLC	Transportation		11.21	%	SOFR+636		8,380		8,256		8,380
Owl Acquisition, LLC	Education		10.20	%	SOFR+535		3,893		3,811		3,825
Ox Two, LLC (New Issue)	Distribution		11.12	%	SOFR+651		9,340		9,307		9,340

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund LLC
Consolidated Schedule of Investments
September 30, 2024
( in thousands)
Issuer Name 3,4		Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index 1		Par/Shares		Cost		Fair Value 2
Pacific Purchaser, LLC		Business Services		11.51	%	SOFR+600			12,903	$	12,682	$	12,877
PCS Midco, Inc.		Financial Services		10.81	%	SOFR+575			5,812		5,735		5,812
PL Acquisitionco, LLC		Retail	11.99% (PIK 3.5%)			SOFR+725			8,193		8,100		6,554
Quantic Electronics, LLC		Aerospace and Defense		10.95	%	SOFR+635			3,280		3,245		3,263
RTIC Subsidiary Holdings, LLC		Consumer Products		10.35	%	SOFR+575			19,950		19,673		19,551
Radius Aerospace, Inc.		Aerospace and Defense		10.75	%	SOFR+575			12,565		12,543		12,313
Rancho Health MSO, Inc.		Healthcare, Education and Childcare		10.85	%	SOFR+560			5,530		5,530		5,530
Reception Purchaser, LLC		Transportation		25.00	%	SOFR+615			4,937		4,888		3,703
Recteq, LLC		Consumer Products		11.75	%	SOFR+715			9,650		9,592		9,554
Riverpoint Medical, LLC		Healthcare, Education and Childcare		9.85	%	SOFR+525			3,932		3,919		3,936
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)		Professional Services		10.74	%	SOFR+575			4,336		4,268		4,282
S101 Holdings Inc.		Electronics		11.48	%	SOFR+615			6,467		6,387		6,402
Sales Benchmark Index LLC		Business Services		10.80	%	SOFR+620			6,676		6,668		6,676
Sargent & Greenleaf Inc.		Electronics	12.45% (PIK 1.00%)			SOFR+760			4,634		4,634		4,634
Seaway Buyer, LLC		Chemicals, Plastics and Rubber		10.75	%	SOFR+615			14,700		14,510		14,186
Sigma Defense Systems, LLC		Telecommunications		11.50	%	SOFR+690			14,621		14,465		14,475
Simplicity Financial Marketing Group Holdings, Inc		Banking, Finance, Insurance & Real Estate		11.38	%	SOFR+640			11,359		11,207		11,472
Skopima Consilio Parent, LLC		Business Services		9.46	%	SOFR+461			1,290		1,269		1,289
Smartronix, LLC		Aerospace and Defense		10.35	%	SOFR+610			25,078		24,798		25,073
Solutionreach, Inc.		Communications		12.40	%	SOFR+715			9,239		9,216		9,239
SpendMend Holdings, LLC		Business Services		10.26	%	SOFR+565			9,510		9,302		9,510
Summit Behavioral Healthcare, LLC		Healthcare, Education and Childcare		9.31	%	SOFR+425			3,554		3,398		3,305
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)		Aerospace and Defense		10.26	%	SOFR+500			15,803		15,600		15,772
TCG 3.0 Jogger Acquisitionco, Inc.		Media		11.10	%	SOFR+650			9,950		9,800		9,851
TPC US Parent, LLC		Food		10.98	%	SOFR+565			11,392		11,330		11,392
TWS Acquisition Corporation		Education		11.33	%	SOFR+640			1,568		1,567		1,568
Team Services Group, LLC		Healthcare, Education and Childcare		9.95	%	SOFR+510			9,661		9,462		9,537
Teneo Holdings LLC		Business Services		9.60	%	SOFR+475			2,985		2,955		2,994
The Bluebird Group LLC		Business Services		11.25	%	SOFR+665			14,445		14,404		14,445
The Vertex Companies, LLC		Business Services		10.99	%	SOFR+610			7,611		7,536		7,611
Transgo, LLC		Auto Sector		10.60	%	SOFR+575			14,479		14,282		14,479
Tyto Athene, LLC		Aerospace and Defense		10.23	%	SOFR+490			11,393		11,306		11,165
Urology Management Holdings, Inc.		Healthcare, Education and Childcare		11.46	%	SOFR+550			10,928		10,836		10,819
Watchtower Buyer, LLC		Consumer Products		10.60	%	SOFR+600			13,942		13,769		13,803
Wildcat Buyerco, Inc.		Electronics		10.60	%	SOFR+575			19,256		19,126		19,256
Zips Car Wash, LLC		Business Services	12.46% (PIK 1.5%)			SOFR+740			19,687		19,648		18,801
Total First Lien Secured Debt											1,033,954		1,028,874
Equity Security - 2.1%
Dynata, LLC - Common Equity	—	Business Services		—			—		134		2,351		2,351
Total Investments - 918.5%											1,036,305		1,031,225
Cash and Cash Equivalents - 32.6%
BlackRock Federal FD Institutional 30											36,595		36,595
Total Cash and Cash Equivalents											36,595		36,595
Total Investments and Cash Equivalents - 951.1)%										$	1,072,900	$	1,067,820
Liabilities in Excess of Other Assets — (851.1)%													(955,549	)
Members' Equity—100.0%												$	112,271
1 Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate ("S" or "SOFR"). The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day,
60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to the SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
2 Valued based on PSLF's accounting policy .
3 All investments are in US Companies unless noted otherwise
4 The securities are, 1) pledged as collateral under the BNP Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC; or, 3) securing the 2035 Asset-Backed Debt held through PennantPark CLO VII, LLC

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Schedule of Investments
September 30, 2023
( In thousands)
Issuer Name 4,5	Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index 1	Par		Cost		Fair Value 2
First Lien Secured Debt - 783.7%
A1 Garage Merger Sub, LLC	Personal, Food and Miscellaneous Services		11.84	%	SOFR+660		14,925	$	14,668	$	14,850
Ad.net Acquisition, LLC	Media		11.65	%	SOFR+600		4,888		4,888		4,863
Alpine Acquisition Corp II	Containers, Packaging and Glass		11.26	%	SOFR+600		14,837		14,528		14,244
Amsive Holding Corporation (f/k/a Vision Purchaser Corporation)	Media		11.79	%	SOFR+640		13,958		13,869		13,749
Anteriad, LLC (f/k/a MeritDirect, LLC)	Media		12.04	%	SOFR+665		14,354		14,319		14,103
Any Hour Services	Personal, Food and Miscellaneous Services		11.22	%	SOFR+585		10,882		10,847		10,665
Apex Service Partners, LLC	Personal, Food and Miscellaneous Services		10.52	%	SOFR+525		6,424		6,380		6,408
Apex Service Partners, LLC Term Loan B	Personal, Food and Miscellaneous Services		11.11	%	SOFR+550		3,316		3,299		3,308
Apex Service Partners, LLC - Term Loan C	Personal, Food and Miscellaneous Services		10.76	%	SOFR+525		7,531		7,531		7,512
Applied Technical Services, LLC	Environmental Services		11.51	%	SOFR+615		11,394		11,271		11,166
Applied Technical Services, LLC - Unfunded Term Loan (3)	Environmental Services						513		-		(5	)
Arcfield Acquisition Corp.	Aerospace and Defense		11.62	%	SOFR+625		11,820		11,642		11,702
Beta Plus Technologies, Inc.	Business Services		11.14	%	SOFR+575		14,850		14,604		13,811
Bioderm, Inc.	Healthcare, Education and Childcare		11.83	%	SOFR+650		8,978		8,874		8,933
Blackhawk Industrial Distribution, Inc.	Distribution		11.79	%	SOFR+640		17,823		17,588		17,556
Broder Bros., Co.	Personal and Non-Durable Consumer Products		11.50	%	SOFR+626		9,683		9,683		9,683
Burgess Point Purchaser Corporation	Auto Sector		10.67	%	SOFR+532		893		836		841
Cartessa Aesthetics, LLC	Distribution		11.39	%	SOFR+600		17,281		17,013		17,281
CF512, Inc.	Media		11.60	%	SOFR+600		2,921		2,901		2,862
Connatix Buyer, Inc.	Media		11.16	%	SOFR+550		8,808		8,792		8,500
Crane 1 Services, Inc.	Personal, Food and Miscellaneous Services		10.90	%	SOFR+551		2,575		2,550		2,562
Dr. Squatch, LLC	Personal and Non-Durable Consumer Products		11.24	%	SOFR+585		10,882		10,834		10,882
DRI Holding Inc.	Media		10.67	%	SOFR+525		4,382		3,959		3,993
DRS Holdings III, Inc.	Consumer Products		11.77	%	SOFR+640		14,395		14,345		14,222
Duraco Specialty Tapes LLC	Manufacturing / Basic Industries		11.93	%	SOFR+650		8,635		8,561		8,505
EDS Buyer, LLC	Aerospace and Defense		11.64	%	SOFR+625		6,219		6,148		6,125
Electro Rent Corporation	Electronics		10.93	%	SOFR+550		3,712		3,665		3,632
ETE Intermediate II, LLC	Personal, Food and Miscellaneous Services		11.89	%	SOFR+650		12,404		12,171		12,193
Exigo Intermediate II, LLC	Business Services		11.17	%	SOFR+585		9,750		9,637		9,555
Fairbanks Morse Defense	Aerospace and Defense		10.40	%	SOFR+475		1,518		1,470		1,506
Five Star Buyer, Inc.	Hotels, Motels, Inns and Gaming		12.43	%	SOFR+710		4,373		4,291		4,307
Global Holdings InterCo LLC	Banking, Finance, Insurance & Real Estate		11.96	%	SOFR+660		7,027		7,008		6,676
Graffiti Buyer, Inc.	Distribution		10.99	%	SOFR+560		1,954		1,925		1,935
Hancock Roofing and Construction L.L.C.	Insurance		10.93	%	SOFR+550		6,423		6,423		6,262
Holdco Sands Intermediate, LLC	Aerospace and Defense		11.32	%	SOFR+585		19,717		19,388		19,717
HV Watterson Holdings, LLC	Business Services		11.79	%	SOFR+625		15,140		14,974		15,110
HW Holdco, LLC	Media		11.70	%	SOFR+640		14,250		14,171		14,036
IG Investments Holdings, LLC	Business Services		11.45	%	SOFR+610		4,428		4,355		4,362
Imagine Acquisitionco, LLC	Business Services		10.72	%	SOFR+535		5,565		5,481		5,482
Inception Fertility Ventures, LLC	Healthcare, Education and Childcare		12.50	%	SOFR+715		19,737		19,410		19,737
Infinity Home Services Holdco, Inc.	Personal, Food and Miscellaneous Services		12.24	%	SOFR+685		11,053		10,867		11,053
Infolinks Media Buyco, LLC	Media		11.17	%	SOFR+585		6,364		6,364		6,364
Integrity Marketing Acquisition, LLC	Insurance		11.57	%	SOFR+615		19,701		19,639		19,504
K2 Pure Solutions NoCal, L.P.	Chemicals, Plastics and Rubber		13.42	%	SOFR+810		12,061		12,040		12,061
Kinetic Purchaser, LLC	Consumer Products		11.54	%	SOFR+615		16,920		16,641		16,666
LAV Gear Holdings, Inc.	Leisure, Amusement, Motion Pictures, Entertainment		11.46	%	SOFR+625		4,658		4,631		4,603
Lash OpCo, LLC	Consumer Products		12.13	%	SOFR+700		19,723		19,565		19,526
Lightspeed Buyer Inc.	Healthcare, Education and Childcare		10.67	%	SOFR+535		12,218		12,056		12,096
LJ Avalon Holdings, LLC	Environmental Services		11.77	%	SOFR+640		6,318		6,206		6,192
MAG DS Corp.	Aerospace and Defense		10.99	%	SOFR+549		7,601		7,153		7,202
Magenta Buyer, LLC	Software		10.63	%	SOFR+500		3,785		3,550		2,805
Mars Acquisition Holdings Corp.	Media		11.04	%	SOFR+550		10,885		10,811		10,776
MBS Holdings, Inc.	Telecommunications		11.22	%	SOFR+585		7,859		7,780		7,749
Meadowlark Acquirer, LLC	Business Services		10.58	%	SOFR+550		2,958		2,911		2,884
Municipal Emergency Services, Inc.	Distribution		11.04	%	SOFR+565		5,975		5,860		5,843
NBH Group LLC	Healthcare, Education and Childcare		10.93	%	SOFR+525		7,429		7,369		7,280
Neptune Flood Incorporated	Financial Services		11.97	%	SOFR+650		8,020		7,910		8,020
One Stop Mailing, LLC	Transportation		11.68	%	SOFR+636		8,470		8,311		8,470
Owl Acquisition, LLC	Education		10.80	%	SOFR+575		3,893		3,794		3,834
Ox Two, LLC (New Issue)	Distribution		12.90	%	SOFR+725		4,378		4,343		4,301

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PennantPark Senior Loan Fund, LLC
Consolidated Schedule of Investments
September 30, 2023
( In thousands)
Issuer Name 4,5	Industry	Current<br> Coupon			Basis Point<br>Spread Above<br>Index 1	Par		Cost		Fair Value 2
Pequod Merger Sub, Inc.	Banking, Finance, Insurance & Real Estate		11.79	%	SOFR+640		11,474	$	11,267	$	11,244
PL Acquisitionco, LLC	Retail		12.42	%	SOFR+700		7,930		7,818		7,137
PlayPower, Inc.	Consumer Products		10.92	%	SOFR+565		2,551		2,481		2,436
Quantic Electronics, LLC	Aerospace and Defense		11.74	%	SOFR+635		3,314		3,267		3,264
Radius Aerospace, Inc.	Aerospace and Defense		11.29	%	SOFR+575		12,703		12,641		12,576
Rancho Health MSO, Inc.	Healthcare, Education and Childcare		11.22	%	SOFR+575		5,603		5,603		5,603
Reception Purchaser, LLC	Transportation		11.54	%	SOFR+615		5,000		4,937		4,800
Recteq, LLC	Consumer Products		12.54	%	SOFR+700		9,750		9,655		9,458
Research Now Group, LLC and Dynata, LLC	Business Services		11.13	%	SOFR+576		14,389		14,332		12,591
Riverpoint Medical, LLC	Healthcare, Education and Childcare		10.54	%	SOFR+515		3,176		3,162		3,131
Riverside Assessments, LLC	Education		11.29	%	SOFR+575		10,895		10,834		10,786
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	Professional Services		11.52	%	SOFR+625		3,749		3,678		3,692
Sales Benchmark Index LLC	Business Services		11.59	%	SOFR+600		6,859		6,815		6,825
Sargent & Greenleaf Inc.	Electronics		12.92	%	SOFR+750		4,872		4,872		4,823
Seaway Buyer, LLC	Chemicals, Plastics and Rubber		11.54	%	SOFR+605		14,850		14,633		14,405
Signature Systems Holding Company	Chemicals, Plastics and Rubber		12.04	%	SOFR+650		11,201		11,173		11,201
Skopima Consilio Parent, LLC	Business Services		9.93	%	SOFR+450		1,300		1,274		1,272
Solutionreach, Inc.	Communications		12.37	%	SOFR+715		9,239		9,206		9,202
SpendMend Holdings, LLC	Business Services		11.04	%	SOFR+565		9,607		9,352		9,396
STV Group Incorporated	Transportation		10.67	%	SOFR+535		12,099		12,045		11,857
Summit Behavioral Healthcare, LLC	Healthcare, Education and Childcare		10.43	%	SOFR+475		3,572		3,389		3,559
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	Aerospace and Defense		11.49	%	SOFR+600		15,966		15,695		15,790
Team Services Group, LLC	Healthcare, Education and Childcare		10.75	%	SOFR+515		2,688		2,584		2,627
Teneo Holdings LLC	Financial Services		10.67	%	SOFR+535		2,936		2,927		2,931
The Aegis Technologies Group, LLC	Aerospace and Defense		12.04	%	SOFR+665		11,095		11,008		10,929
The Bluebird Group LLC	Business Services		12.79	%	SOFR+740		7,855		7,872		7,823
The Vertex Companies, LLC	Business Services		11.70	%	SOFR+635		7,690		7,596		7,628
TPC Canada Parent, Inc. and TPC US Parent, LLC	Food		10.68	%	SOFR+550		5,479		5,378		5,479
TWS Acquisition Corporation	Education		11.80	%	SOFR+625		7,177		7,161		7,177
Tyto Athene, LLC	Aerospace and Defense		10.90	%	SOFR+550		11,393		11,285		10,391
Urology Management Holdings, Inc.	Healthcare, Education and Childcare		11.79	%	SOFR+625		3,860		3,792		3,780
Wildcat Buyerco, Inc.	Electronics		10.54	%	SOFR+515		11,386		11,323		11,272
Zips Car Wash, LLC	Business Services		12.67	%	SOFR+735		19,682		19,581		19,042
Total First Lien Secured Debt									810,737		804,187
Total Investments - 783.7%
Cash and Cash Equivalents - 57.6%
BlackRock Federal FD Institutional 30									59,096		59,096
Total Cash and Cash Equivalents									59,096		59,096
Total Investments and Cash Equivalents - 841.3%								$	869,833	$	863,283
Liabilities in Excess of Other Assets — (741.3)%											(760,665	)
Members' Equity—100.0%										$	102,618
1 Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate ("S" or "SOFR"). The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to the SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
2 Valued based on PSLF's accounting policy .
3 Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.
4 All investments are in US Companies unless noted otherwise
5 The securities are, 1) pledged as collateral under the BNP Credit Facility and held through Funding I; or, 2) securing the 2034 Asset-Backed Debt and held through PennantPark CLO IV, LLC; or, 3) securing the 2035 Asset-Backed Debt held through PennantPark CLO VII, LLC

All values are in US Dollars.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024

ORGANIZATION

PennantPark CLO IV, LLC ("CLO IV") is a wholly-owned subsidiary and was formed in March 2022 for the purpose of executing a debt securitization (See Note 10).

PennantPark CLO VII, LLC ("CLO VII") is a wholly-owned subsidiary and was formed in July 2023 for the purpose of executing a debt securitization (See Note 10).

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies consistently applied are as follows:

(a) Investment Valuations

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of PennantPark Investment Advisers, LLC, the investment adviser to PNNT, responsible for the portfolio investment;
Preliminary valuation conclusions are then documented and discussed with the management of PennantPark Investment Advisers, LLC;
Our member designees also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review PennantPark Investment Advisers, LLC’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;
Our member designees reviews the preliminary valuations of PennantPark Investment Advisers, LLC and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

Our member designees assesses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of PennantPark Investment Advisers, LLC and the respective independent valuation firms.

(b) Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest receivable is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company's judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in the Company's judgment, are likely to remain current. There were no loans on non-accrual status as of September 30, 2024 and 2023.

For the years ended September 30, 2024 and 2023, there were no material uncertain income tax positions.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

(d) Foreign Currency Translation

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and
Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

(e) Consolidation

(f) Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” ("ASU 2020-04"). The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company utilized the optional expedients and exceptions provided by ASU 2020-04 during the year ended September 30, 2023, the effect of which was not material to the consolidated financial statements and the notes thereto.

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions", which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company is currently evaluating the impact the adoption of this new accounting standard will have on its consolidated financial statements, but the impact of the adoption is not expected to be material.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

AGREEMENTS AND RELATED PARTY TRANSACTIONS

For the years ended September 30, 2024 and 2023, PSLF purchased $308.7 million and $127.8 million of investments from PNNT, respectively.

For the years ended September 30, 2024 and 2023, PSLF incurred $2.4 million and $2.0 million of administration fees to the Administrative Agent, respectively. The Administrative Agent provides administration services to PSLF at an annual rate of 0.25% based on average gross assets under management payable quarterly in arrears and calculated based on average gross assets (measured at cost) at the end of the two recently completed calendar quarters.

For the years ended September 30, 2024 and 2023, PSLF incurred $24.9 million and $20.9 million of interest expense related to the notes outstanding with the Members, respectively.

As of September 30, 2024 and 2023, PSLF had a receivable from PNNT of $0.03 million and $3.3 million, respectively presented as a component of Due from Affiliate on the consolidated statement of assets, liabilities and members' equity. These amounts are related to cash owed from PNNT in connection with trades between the funds. Additionally, PSLF had a receivable from the Administrative Agent of $0.04 million as of September 30, 2024 related to loan agency fees received by the Administrative agent and is owed to PSLF.

FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (un-adjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments are classified as Level 3. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2 asset includes observable market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

Asset Category		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	88,632	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	933,688	Market Comparable	Market Yield	7.9% - 21.4% (10.2%)
First lien	6,554	Enterprise Market Value	EBITDA Multiple	0.9x - 0.9x (0.9x)
Equity	2,351	Enterprise Market Value	EBITDA Multiple	6.0x
Total Level 3 investments	1,031,225
Asset Category		Valuation Technique	Unobservable Input	Range of Input<br>(Weighted Average) (1)
First lien	85,500	Market Comparable	Broker/Dealer bids or quotes	N/A
First lien	718,687	Market Comparable	Market Yield	10.0% - 25.0% (12.2%)
Total Level 3 investments	804,187

All values are in US Dollars.

(1) The weighted average disclosed in the tables above was weighted by its relative fair value.

Our investments and cash and cash equivalents were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):

	Fair Value at September 30, 2024
Description	Level 1		Level 2		Level 3		Total
First lien			$	—		1,028,874	$	1,028,874
Equity				—		2,351		2,351
Total investments				—		1,031,225		1,031,225
Cash and cash equivalents		36,595		—				36,595
Total investments, cash and cash equivalents		36,595	$	—		1,031,225	$	1,067,820
	Fair Value at September 30, 2023
Description	Level 1		Level 2		Level 3		Total
First lien			$	—		804,187	$	804,187
Total investments				—		804,187		804,187
Cash and cash equivalents		59,096		—				59,096
Total investments, cash and cash equivalents		59,096	$	—		804,187	$	863,283

All values are in US Dollars.

For the year ended September 30, 2024, the amount of Level 3 purchases, including PIK interest, net discount accretion and non-cash exchanges, for the year were $401.3 million. There were no Level 3 transfers.

For the year ended September 30, 2023, the amount of Level 3 purchases, including PIK interest, net discount accretion and non-cash exchanges, for the year were $179.6 million. There were no Level 3 transfers.

CASH AND CASH EQUIVALENTS

Cash equivalents represent cash invested in overnight money market funds. These temporary investments with original maturities of 90 days or less are deemed cash equivalents. Cash deposited at financial institutions is insured by the Federal Deposit Insurance Corporation (“FDIC”), up to specified limits. At times, such balances may exceed FDIC insured amounts. As of September 30, 2024 and 2023, the entire amount of $36.6 million and $59.1 million, respectively, included in the cash and cash equivalents balance on the Consolidated Statement of Assets, Liabilities and Members' Equity is comprised of money market funds, which are not subject to FDIC insurance. PSLF believes it is not exposed to any significant risk of loss on its cash and cash equivalents.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

MEMBERS’ EQUITY

As of September 30, 2024 and 2023, PNNT had commitments to fund equity interests to PSLF of $87.4 million and $67.4 million, respectively, of which $19.9 million and $8.8 million, respectively, were unfunded.

As of September 30, 2024 and 2023, Pantheon had commitments to fund equity interests to PSLF of $73.4 million and $44.9 million, respectively, of which $28.5 million and $5.7 million, respectively were unfunded.

NOTES PAYABLE TO MEMBERS

PNNT and Pantheon provide capital to PSLF in the form of subordinated notes ("Member Notes"). As described in Note 1, PNNT and Pantheon initially owned 72.0% and 28.0% respectively, of the Member Notes. On October 31, 2020, PNNT and Pantheon contributed an additional $18.5 million, non pro-rata, to PSLF in the form of additional Member notes. As a result, PNNT and Pantheon owned 60.5% and 39.5%, respectively, of the Member notes of PSLF. As of September 30, 2023 and September 30, 2024, the subordinated notes ownership percentages remained 60.5% and 39.5% respectively based on commitments funded. The notes bear interest at 3-month LIBOR plus 8% prior to June 30, 2023 and 3-month SOFR plus 8% after June 30, 2023 and matures on July 31, 2027. As of September 30, 2024 and September 30, 2023 interest on the Member Notes was 13.3% and 13.4%, respectively.

As of September 30, 2024 and 2023, PNNT had commitments to fund Member Notes to PSLF of $148.5 million and $115.9 million, respectively, of which $32.6 million and $13.6 million, respectively, were unfunded.

As of September 30, 2024 and 2023, Pantheon had commitments to fund Member Notes to PSLF of $122.2 million and $75.7 million, respectively, of which $46.5 million and $8.9 million, respectively were unfunded.

RISKS AND UNCERTAINTIES

Investments

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

generally no public markets for these securities at the current time. The ability of PSLF to liquidate these investments and realize value is subject to significant limitations and uncertainties.

Leverage Risk

Credit Risk

FINANCIAL HIGHLIGHTS

The Members are responsible for all investment making and business decisions, therefore, there is no requirement to show financial highlights per ASC Topic 946, which have been omitted accordingly.

LEVERAGE

Credit Facility

In November 2020, Funding I amended the BNP Credit Facility and increased the size to $275 million.

In March 2022, Funding I amended the BNP Credit Facility and reduced the total commitment to $225 million, extended the revolving period to March 2025 and extended maturity to March 2027.

In September 2022, Funding I amended the BNP Credit Facility and increased the total commitment to $325 million and amended the interest rate to SOFR plus 2.60%. As of September 30, 2023 there were $88.6 million in outstanding borrowings and we were in compliance with all required covenants.

On August 27, 2024, Funding I amended the BNP Credit Facility and increased the total commitment to $400 million and amended the interest rate to SOFR plus 2.53%. The credit facility term was not extended and will mature on March 2027 unless extended. As of September 30, 2024, there were $247.6 million in outstanding borrowings and we are in compliance with all required covenants.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

Asset - Backed Debt - CLO IV

On March 2, 2022, CLO IV completed a $304 million debt securitization in the form of a collateralized loan obligation (the "2034 Debt Securitization" or "2034 Asset-Backed Debt"). The 2034 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2034 Debt Securitization was executed through a private placement of: (i) $30.0 million Class A-1a Loans maturing 2034, which bear interest at the three-month SOFR plus 1.7%, (ii) $50.0 million Class A-1b Senior Secured Fixed Rate Notes due 2034, which bear interest at 3.45%, (iii) $12.0 million Class A-2 Senior Secured Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 1.9%, (iv) $21.0 million Class B Senior Secured Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 2.1%, (v) $24.0 million Class C Secured Deferrable Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 2.9%, (vi) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2034, which bear interest at the three-month SOFR plus 4.0%, and (vii) $91.0 million Class A-1a Senior Secured Floating Rate notes due 2034 which bears interest at the three-month SOFR plus 1.7%, under a credit agreement by and among CLO IV, as issuer, various financial institutions, as lenders, and Wilmington Trust, National Association, as collateral trustee and as loan agent. As of September 30, 2024 and September 30, 2023, there was $246.0 million and $246.0 million of 2034 Asset-Backed Debt and there was $1.7 million and $1.3 million, respectively of un-amortized financing costs. As of September 30, 2024 and September 30, 2023 the weighted average interest rate was 6.0% and 6.6% respectively.

Asset - Backed Debt - CLO VII

On July 26, 2023, CLO VII completed a $300 million debt securitization in the form of a collateralized loan obligation (the "2035 Debt Securitization" or "2035 Asset-Backed Debt"). The 2035 Asset-Backed Debt is secured by a diversified portfolio consisting primarily of middle market loans. The 2035 Debt Securitization was executed through a private placement of: (i) $151.0 million Class A-1a Notes maturing 2035, which bear interest at the three-month SOFR plus 2.7%, (ii) $20.0 million Class A-1b Loans 2035, which bear interest at 6.5%, (iii) $12.0 million Class A-2 Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 3.2%, (iv) $21.0 million Class B Senior Secured Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.1%, (v) $24.0 million Class C Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 4.7%, (vi) $18.0 million Class D Secured Deferrable Floating Rate Notes due 2035, which bear interest at the three-month SOFR plus 7.0%. As of September 30, 2024 and September 30, 2023, there was $246.0 million and $246.0 million of 2035 Asset-Backed Debt and there was $1.9 million and $2.3 million, respectively of un-amortized financing costs. As of September 30, 2024 and September 30, 2023 the weighted average interest rate was 8.0% and 8.5% respectively.

The 2034 Asset-Backed Debt and 2035 Asset-Backed Debt are included in the Consolidated Statement of Assets, Liabilities and Members' Equity as debt of the Company and the sub notes were eliminated in consolidation.

COMMITMENT AND CONTINGENCIES

As of September 30, 2024 and September 30, 2023 the Company had $0 and $0.5 million, respectively, of unfunded commitments to fund existing investments.

PENNANTPARK SENIOR LOAN FUND, LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 (Continued)

Company is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim but expects the risk of having to make any payments under these general business indemnifications to be remote.

SUBSEQUENT EVENTS

Subsequent events are evaluated and disclosed as appropriate for events occurring through the date of the consolidated financial statements were available to be issued on November 25, 2024. There were no events that require disclosure.

On October 16, 2024, PSLF issued a capital call in the amount of $63.8 million to its Members.

10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

COMMISSION FILE NUMBER: 814-00736

PENNANTPARK INVESTMENT CORPORATION

(786) 297-9500

Securities registered pursuant to Section 12(g) of the Act: None

PENNANTPARK INVESTMENT CORPORATION

FORM 10-K

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

TABLE OF CONTENTS

Item 1. Business

General Business of PennantPark Investment Corporation

Organization and Structure of PennantPark Investment Corporation

Our Investment Adviser and Administrator

Market Opportunity

Competitive Advantages

a)Experienced Management Team

b)Disciplined Investment Approach with Strong Value Orientation

c)Ability to Source and Evaluate Transactions through our Investment Adviser’s Proactive, Research Capability and Established Network

d)Flexible Transaction Structuring

Competition

Leverage

Investment Policy Overview

First Lien Secured Debt

Second Lien Secured Debt

Subordinated Debt

Investment Selection Criteria

a)Leading and defensible competitive market positions

b)Investing in stable borrowers with positive cash flow

c)Management teams

d)Financial sponsorship

e)Investments in different borrowers, industries and geographies

f)Viable exit strategy

Due Diligence

Investment Structure

Ongoing Relationships with Portfolio Companies

Monitoring

Managerial Assistance

Staffing

Our Corporate Information

Our Portfolio

Investment Management Agreement

Management Fees

Pre-Incentive Fee Net Investment Income

Percentage of Pre-Incentive Fee Net Investment Income

allocated to income-related portion of incentive fee

Examples of Quarterly Incentive Fee Calculation

Example 1: Income Related Portion of Incentive Fee (*):

Alternative 1:

Assumptions

Alternative 2:

Assumptions

Alternative 3:

Assumptions

Example 2: Capital Gains Portion of Incentive Fee:

Assumptions

Organization of the Investment Adviser

Duration and Termination of Investment Management Agreement

Administration Agreement

Duration and Termination of Administration Agreement

Indemnification

License Agreement

PennantPark Senior Loan Fund, LLC

REGULATION

Business Development Company, Regulated Investment Company Regulations and Small Business Investment Company Regulations

Qualifying Assets

Managerial Assistance to Portfolio Companies

Temporary Investments

Senior Securities

Joint Code of Ethics and Code of Conduct

Proxy Voting Policies and Procedures

Introduction

Proxy Policies