8-K
PENNANTPARK INVESTMENT CORP (PNNT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 15, 2023
PennantPark Investment Corporation
(Exact name of registrant as specified in its charter)
| Maryland<br><br>(State or Other Jurisdiction of Incorporation) | 814-00736<br><br>(Commission File Number) | 20-8250744<br><br>(IRS Employer Identification Number) |
|---|---|---|
| 1691 Michigan Avenue,<br><br>Miami Beach, Florida<br><br>(Address of Principal Executive Offices) | 33319<br><br>(Zip Code) | |
| --- | --- | |
| (786) 297-9500<br><br>(Registrant's telephone number, including area code) | ||
| --- | ||
| Not Applicable<br><br>(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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 |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR § 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2).
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. ☐
28435281.2.BUSINESS
Item 2.02. Results of Operations and Financial Condition
On November 15, 2023, PennantPark Investment Corporation, or the Company, issued a press release announcing its financial results for the fourth quarter and fiscal year ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report pursuant to Item 2.02 on Form 8-K and Regulation FD. A copy of the Company's schedule of investments as of September 30, 2023 and 2022 are furnished as Exhibit 99.2 to this report pursuant to Item 2.02 on Form 8-K and Regulation FD.
The Company is completing its assessment of the effectiveness of its internal control over financial reporting as of September 30, 2023. Based on currently available information, the Company expects to report certain material weaknesses in internal control over financial reporting in Item 9A of its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the "2023 Annual Report"). The material weaknesses identified to date relate to the control environment over the Company's review process of its cash and par reconciliations and its interest income analysis. The material weaknesses are not expected to impact the accuracy of the Company's financial statements to be reported in the 2023 Annual Report. Because the Company has not completed the preparation of its consolidated financial statements for the year ended September 30, 2023, the preliminary unaudited results presented in the press release as of and for the fourth quarter and year ended September 30, 2023 are based on current expectations and are subject to adjustment.
The information in this report on Form 8-K, including Exhibits 99.1 and 99.2 furnished herewith, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of such section. The information in this report on Form 8-K shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Act, or under the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Forward-Looking Statements
This report on Form 8-K, including Exhibits 99.1 and 99.2 furnished herewith, may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 PennantPark Investment Corporation files under the Exchange Act. All statements other than statements of historical facts included in this report on Form 8-K are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Investment Corporation undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
PennantPark Investment Corporation may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from its historical experience and present expectations.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits
| 99.1 | Press Release of PennantPark Investment Corporation dated November 15, 2023 |
|---|---|
| 99.2 | Schedule of Investments as of September 30, 2023 and 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
28435281.2.BUSINESS
SIGNATURE
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: November 15, 2023 | PENNANTPARK INVESTMENT CORPORATION | |
|---|---|---|
| By: | /s/ Richard T. Allorto, Jr. | |
| Richard T. Allorto, Jr. | ||
| Chief Financial Officer & Treasurer |
28435281.2.BUSINESS
EX-99.1
EXHIBIT 99.1
PennantPark Investment Corporation Announces Financial Results for the Fourth Quarter and
Fiscal Year Ended September 30, 2023
Miami, Florida — (GLOBE NEWSWIRE – November 15, 2023) — PennantPark Investment Corporation (NYSE: PNNT) announced today financial results for the fourth quarter and fiscal year ended September 30, 2023.
HIGHLIGHTS
Year ended September 30, 2023 - Unaudited
($ in millions, except per share amounts)
| Assets and Liabilities: | |||||
|---|---|---|---|---|---|
| Investment portfolio (1) | $ | 1,001.9 | |||
| Net assets | $ | 502.2 | |||
| Adjusted net asset value per share (2) | $ | 7.70 | |||
| Quarterly increase in adjusted net asset value per share (2) | 0.4 | % | |||
| GAAP net asset value per share | $ | 7.70 | |||
| Quarterly decrease in GAAP net asset value per share | (0.3 | )% | |||
| Credit Facility | $ | 206.9 | |||
| 2026 Notes | $ | 147.7 | |||
| 2026-2 Notes | $ | 162.2 | |||
| Regulatory Debt to Equity | 1.05x | ||||
| Weighted average yield on debt investments at quarter-end | 13.0 | % | |||
| Quarter Ended | Year Ended | ||||
| September 30, 2023 | September 30, 2023 | ||||
| (Unaudited) | (Unaudited) | ||||
| Operating Results: | |||||
| Net investment income | $ | 15.6 | $ | 65.5 | |
| Net investment income per share | $ | 0.24 | $ | 1.00 | |
| Core net investment income per share (3) | $ | 0.24 | $ | 0.84 | |
| Distributions declared per share | $ | 0.21 | $ | 0.76 | |
| Portfolio Activity: | |||||
| Purchases of investments | $ | 61.1 | $ | 275.4 | |
| Sales and repayments of investments | $ | 138.2 | $ | 418.6 | |
| PSLF Portfolio data: | |||||
| PSLF investment portfolio | $ | 804.2 | $ | 804.2 | |
| Purchases of investments | $ | 56.9 | $ | 176.2 | |
| Sales and repayments of investments | $ | 52.6 | $ | 106.6 |
1. Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling $164.4 million, at fair value.
2. This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of unrealized gain on our multi-currency, senior secured revolving credit facility with Truist Bank, as amended, the “Credit Facility." The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
3. Core net investment income ("Core NII") is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the year ended September 30, 2023, Core NII excluded: i) $10.6 million of dividend income related to our equity investment in Dominion Voting Systems; ii) $3.1 million of accelerated amortization income with early repayment of one of our loans; iii) $0.6 million of non-recurring divided from PennantPark-TSO Senior Loan Fund II, LP, iv) $1.8 million of accrued excise taxes, and an addback of $2.2 million of incentive fee expenses.
CONFERENCE CALL AT 12:00 P.M. EST ON NOVEMBER 16, 2023
PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.m. (Eastern Time) on Thursday, November 16, 2023 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8193. All callers should reference conference ID #8396733 or PennantPark Investment Corporation. An archived replay will also be available on a webcast link located on the Home page of the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased to announce another quarter of solid performance from both a NAV and Net Investment Income perspective. Earnings are in excess of our dividend by a healthy margin,” said Arthur Penn, Chairman and CEO. “Our earnings stream continues to be robust due to strong credit performance and the excellent returns generated by our PSLF Joint Venture."
As of September 30, 2023, our portfolio totaled $1,001.9 million, which consisted of $527.7 million of first lien secured debt, $80.4 million of second lien secured debt, $156.2 million of subordinated debt (including $102.3 million in PSLF) and $237.6 million of preferred and common equity (including $62.1 million in PSLF). Our debt portfolio consisted of 95% variable-rate investments and 5% fixed-rate investments. As of September 30, 2023, we had one portfolio company on non-accrual, representing 1.2% and zero of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2023, the portfolio had net unrealized depreciation of $16.3 million. Our overall portfolio consisted of 129 companies with an average investment size of $7.8 million, and a weighted average yield on interest bearing debt investments of 13.0%.
As of September 30, 2022, our portfolio totaled $1,226.3 million and consisted of $631.0 million of first lien secured debt, $129.9 million of second lien secured debt, $141.3 million of subordinated debt (including $88.0 million in PSLF) and $324.1 million of preferred and common equity (including $51.1 million in PSLF). Our interest bearing debt portfolio consisted of 96% variable-rate investments and 4% fixed-rate investments. As of September 30, 2022, we had one portfolio company on non-accrual, representing 1.2% and zero percent of our overall portfolio on a cost and fair value basis, respectively. As of September 30, 2022, the portfolio had net unrealized depreciation of $75.7 million. Our overall portfolio consisted of 123 companies with an average investment size of $10.0 million, and a weighted average yield on interest bearing debt investments of 10.8%.
For the three months ended September 30, 2023, we invested $61.1 million in two new and 31 existing portfolio companies at a weighted average yield on debt investments of 12.3%. For the three months ended September 30, 2023, sales and repayments of investments totaled $138.2 million, including $47.6 million of sales to PSLF. For the year ended September 30, 2023, we invested $275.4 million in 17 new and 69 existing portfolio companies at a weighted average yield on debt investments of 12.0%. For the year ended September 30, 2023, sales and repayment totaled $418.6 million, including $127.8 million of sales to PSLF.
For the three months ended September 30, 2022, we invested $134.4 million in five new and 27 existing portfolio companies at a weighted average yield on debt investments of 10.2%. Sales and repayments of investments for the three months ended September 30, 2022 totaled $175.6 million, including $143.9 million of sales to PSLF. For the year ended September 30, 2022, we invested $933.8 million in 40 new and 122 existing portfolio companies at a weighted average yield on debt investments of 8.4%. Sales and repayment of investments for the year ended September 30, 2022 totaled $911.6 million, including $395.3 million of sales to PSLF.
PennantPark Senior Loan Fund, LLC
As of September 30, 2023, PSLF’s portfolio totaled $804.2 million, consisted of 90 companies with an average investment size of $8.9 million and had a weighted average yield on debt investments of 12.1%.
As of September 30, 2022, PSLF's portfolio totaled $730.1 million, consisted of 80 companies with an average investment size of $9.1 million and had a weighted average yield on debt investments of 9.4%.
For the three months ended September 30, 2023, PSLF invested $56.9 million (including $47.6 million purchased from the Company) in five new and 18 existing portfolio companies at a weighted average yield on debt investments of 11.8%. PSLF’s sales and repayments of investments for the same period totaled $52.6 million. For the year ended September 30, 2023, PSLF invested $176.2 million (including $127.8 million purchased from the Company) in 21 new and 23 existing portfolio companies at a weighted average yield on debt investments of 11.8%. PSLF's sales and repayments of investments for the same period totaled $106.6 million.
For the three months ended September 30, 2022, PSLF invested $152.6 million (including $143.9 million purchased from the Company) in 10 new and nine existing portfolio companies at a weighted average yield on debt investments of 8.5%. PSLF’s sales and repayments of investments for the same period totaled $27.5 million. For the year ended September 30, 2022, PSLF invested $431.2 million (including $395.3 million purchased from the Company) in 39 new and 28 existing portfolio companies at a weighted average yield on debt investment of 7.8%. PSLF's sales and repayments of investments for the same period totaled $100.5 million.
RESULTS OF OPERATIONS
Set forth below are the results of operations during the three months and year ended September 30, 2023 and 2022.
Investment Income
For the three months and year ended September 30, 2023, investment income was $34.0 million and $145.4 million, respectively, which was attributable to $24.5 million and $97.2 million from first lien secured debt, $2.9 million and $13.8 million from second lien secured debt, $1.3 million and $4.7 million from subordinated debt and $5.4 million and $29.7 million from preferred and common equity, respectively. For the three months and year ended September 30, 2022, investment income was $28.9 million and $105.0 million, respectively, which was attributable to $22.2 million and $74.4 million from first lien secured debt, $3.3 million and $17.0 million from second lien secured debt, $1.1 million and $3.7 million from subordinated debt and $2.4 million and $9.9 million from preferred and common equity, respectively. The increase in investment income compared to the same periods in the prior year was primarily due to an increase in SOFR base rates.
Expenses
For the three months and year ended September 30, 2023, expenses totaled $18.4 million and $79.8 million, respectively, and were comprised of $9.0 million and $39.4 million of debt related interest and expenses, $3.9 million and $16.5 million of base management fees, $3.3 million and $13.9 million of incentive fees, $1.6 million and $5.7 million of general and administrative expenses and $0.7 million and $4.3 million of provision for excise taxes. For the three months and year ended September 30, 2022, expenses totaled $19.7 million and $61.0 million, respectively, and were comprised of $13.7 million and $33.8 million of debt related interest and expenses, $4.9 million and $19.8 million of base management fees, zero and $2.7 million of incentive fees, $1.0 million and $3.9 million of general and administrative expenses and $0.2 million and $0.8 million of provision for excise taxes, respectively. The increase in expenses over the prior year was primarily due to an increase in debt related interest and other financing expenses and an increase in incentive fees.
Net Investment Income
For the three months and year ended September 30, 2023, net investment income totaled $15.6 million and $65.5 million, or $0.24 per share and $1.00 per share, respectively. For the three months and year ended September 30, 2022, net investment income totaled $9.2 million and $43.9 million, or $0.14 per share and $0.66 per share, respectively. The increase in net investment income per share compared to the prior year was primarily due to an increase in investment income.
Net Realized Gains or Losses
For the three months and year ended September 30, 2023, net realized gains (losses) totaled $(5.2) million and $(156.8) million, respectively. For the three months and year ended September 30, 2022 net realized gains (losses) totaled $(38.7) million and $34.8 million, respectively. The change in realized gains or losses was primarily due to changes in the market conditions of our investments and the values at which they were realized, primarily due to realization of RAM Energy Holdings LLC, and the fluctuations in the market and in economy.
Unrealized Appreciation or Depreciation on Investments and Debt
For the three months ended and year ended September 30, 2023, net change in unrealized appreciation (depreciation) on investments was $2.5 million and $59.6 million, respectively. For the three months and year ended September 30, 2022, net change in unrealized appreciation (depreciation) on investments was $(11.0) million and $(110.0) million, respectively. As of September 30, 2023 and September 30, 2022, our net unrealized appreciation (depreciation) on investments totaled $(16.3) million and $(75.7) million, respectively. The net change in unrealized appreciation or depreciation on our investments for the year ended September 30, 2023 compared to the prior year was primarily due to changes in the capital market of our investments and the value at which they were realized, as well as due to the realization of RAM Energy Holdings LLC and the fluctuation in the market and in the economy.
For the three months and year ended September 30, 2023, our Credit Facility had a net change in unrealized (appreciation) depreciation of $(1.3) million and $(3.8) million, respectively. For the three months and year ended September 30, 2022, the Credit Facility had a net change in unrealized (appreciation) depreciation of $(1.7) million and $7.5 million, respectively. As of September 30, 2023 and September 30, 2022, the net unrealized depreciation on the Credit Facility totaled $5.5 million and $9.2 million, respectively. The net change in unrealized appreciation or depreciation compared to the same periods in the prior year was primarily due to changes in the capital markets.
Net Increase (Decrease) in Net Assets Resulting from Operations
For the three months and year ended September 30, 2023, net increase (decrease) in net assets resulting from operations totaled $12.3 million and $(33.8) million, or $0.19 per share and $(0.52) per share, respectively. For the three months and year ended September 30, 2022, net increase (decrease) in net assets resulting from operations totaled $(34.9) million and $(24.7) million, or $(0.52) and $(0.37) per share, respectively. The increase or decrease for the year ended September 30, 2023 compared to the prior year was primarily due to depreciation of the portfolio primarily driven by changes in market conditions.
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments and proceeds of securities offerings and debt financings. 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 of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
As of September 30, 2023 and 2022, we had $212.4 million and $385.9 million in outstanding borrowings under the Credit Facility, respectively, and the weighted average interest rate was 7.7% and 5.3%, respectively. As of September 30, 2023 and 2022, we had $262.6 million and $114.1 million of unused borrowing capacity under the Credit Facility, respectively, subject to leverage and borrowing base restrictions.
As of September 30, 2023 and 2022, we had cash and cash equivalents of $134.4 million and $52.7 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, 2023, our operating activities provided cash of $320.7 million and our financing activities used cash of $239.2 million. Our operating activities provided cash primarily due to our investment activities and our financing activities used cash primarily to fund repayments under the Credit Facility.
For the year ended September 30, 2022, our operating activities used cash of $19.4 million, and our financing activities provided cash of $52.0 million. Our operating activities used cash primarily due to our investment activities and our financing activities provided cash primarily due to net repayment under the Credit Facility and SBA debentures and proceeds from our 2026-2 Notes.
DISTRIBUTIONS
During the three months and year ended September 30, 2023, we declared distributions of $0.21 and $0.76 per share, for total distributions of $13.7 million and $49.6 million, respectively. For the three and year ended September 30, 2022, we declared distributions of $0.15 and $0.56 per share, for total distributions of $9.8 million and $36.6 million, respectively. We monitor available net investment 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.
RECENT DEVELOPMENTS
For the period subsequent to September 30, 2023 through November 10, 2023, we invested $126.7 million in 4 new and 19 existing portfolio companies at a weighted average yield on debt investments of 11.9%.
AVAILABLE INFORMATION
The Company makes available on its website its annual report on Form 10-K filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share data)
| September 30, 2022 | |||||
|---|---|---|---|---|---|
| Assets | |||||
| Investments at fair value | |||||
| Non-controlled, non-affiliated investments (amortized cost—716,987 and 882,513, respectively) | 731,058 | $ | 932,155 | ||
| Non-controlled, affiliated investments (amortized cost—55,787 and 37,612, respectively) | 54,771 | 34,760 | |||
| Controlled, affiliated investments (amortized cost—245,386 and 381,904, respectively) | 216,068 | 259,386 | |||
| Total investments (amortized cost—1,018,160 and 1,302,029, respectively) | 1,001,897 | 1,226,301 | |||
| Cash and cash equivalents (cost—134,454 and 52,844, respectively) | 134,427 | 52,666 | |||
| Interest receivable | 6,818 | 3,593 | |||
| Receivable for investments sold | - | 29,494 | |||
| Distribution receivable | 5,079 | 2,420 | |||
| Prepaid expenses and other assets | 4,656 | 4,036 | |||
| Total assets | 1,152,877 | 1,318,510 | |||
| Liabilities | |||||
| Payable for cash equivalents purchased | 99,768 | — | |||
| Payable for investment purchased | 180 | — | |||
| Distributions payable | 13,697 | 9,784 | |||
| Truist Credit Facility payable, at fair value (cost—212,420 and 385,920, respectively) | 206,940 | 376,687 | |||
| 2026 Notes payable, net (par— 150,000) | 147,669 | 146,767 | |||
| 2026 Notes-2 payable, net (par— 165,000) | 162,226 | 161,373 | |||
| SBA debentures payable, net (par—zero and 20,000, respectively) | — | 19,686 | |||
| Base management fee payable | 3,915 | 4,849 | |||
| Incentive fee payable | 3,310 | — | |||
| Interest payable on debt | 6,231 | 6,264 | |||
| Accounts payable and accrued expenses | 6,754 | 6,639 | |||
| Deferred tax liability | — | 896 | |||
| Total liabilities | 650,690 | 732,945 | |||
| Commitments and contingencies | |||||
| Net assets | |||||
| Common stock, 65,224,500 shares issued and outstanding, Par value 0.001 per share and 100,000,000 shares authorized | 65 | 65 | |||
| Paid-in capital in excess of par value | 746,466 | 748,169 | |||
| Accumulated deficit | (244,344 | ) | (162,669 | ) | |
| Total net assets | 502,187 | $ | 585,565 | ||
| Total liabilities and net assets | 1,152,877 | $ | 1,318,510 | ||
| Net asset value per share | 7.70 | $ | 8.98 |
All values are in US Dollars.
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
| Three Months Ended<br>September 30, | Year Ended<br>September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023<br>(Unaudited) | 2022 | 2023<br>(Unaudited) | 2022 | |||||||||
| Investment income: | ||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||
| Interest | $ | 21,240 | $ | 21,022 | $ | 93,420 | $ | 66,995 | ||||
| Payment-in-kind | 1,221 | 434 | 1,236 | 4,505 | ||||||||
| Dividend Income | 1,028 | — | 13,945 | — | ||||||||
| Other income | 888 | 411 | 2,316 | 8,461 | ||||||||
| From non-controlled, affiliated investments: | ||||||||||||
| Interest | — | 1,361 | 73 | 1,361 | ||||||||
| Payment-in-kind | 308 | — | 625 | — | ||||||||
| From controlled, affiliated investments: | ||||||||||||
| Interest | 4,527 | 3,283 | 15,425 | 10,586 | ||||||||
| Payment-in-kind | 446 | — | 2,596 | 3,983 | ||||||||
| Dividend Income | 4,386 | 2,420 | 15,730 | 9,075 | ||||||||
| Total investment income | 34,044 | 28,931 | 145,366 | 104,966 | ||||||||
| Expenses: | ||||||||||||
| Base management fee | 3,915 | 4,850 | 16,549 | 19,827 | ||||||||
| Incentive fee | 3,310 | — | 13,901 | 2,657 | ||||||||
| Interest and expenses on debt | 8,953 | 8,638 | 39,408 | 28,760 | ||||||||
| Administrative services expenses | 469 | 250 | 1,843 | 1,000 | ||||||||
| General and administrative expenses | 1,129 | 723 | 3,837 | 2,892 | ||||||||
| Expenses before provision for taxes and financing costs | 17,776 | 14,461 | 75,538 | 55,136 | ||||||||
| Provision for taxes on net investment income | 663 | 200 | 4,295 | 800 | ||||||||
| Credit facility amendment and debt issuance costs | — | 5,087 | — | 5,087 | ||||||||
| Total expenses | 18,439 | 19,748 | 79,833 | 61,023 | ||||||||
| Net investment income | 15,605 | 9,183 | 65,533 | 43,943 | ||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||
| Net realized gain (loss) on investments and debt: | ||||||||||||
| Non-controlled, non-affiliated investments | (2,676 | ) | (38,585 | ) | (18,418 | ) | (31,382 | ) | ||||
| Non-controlled and controlled, affiliated investments | — | — | (133,098 | ) | 75,243 | |||||||
| Debt extinguishment | — | (121 | ) | (289 | ) | (2,922 | ) | |||||
| Provision for taxes on realized gain on investments | (2,535 | ) | — | (4,952 | ) | (6,183 | ) | |||||
| Net realized gain (loss) on investments and debt | (5,211 | ) | (38,706 | ) | (156,757 | ) | 34,756 | |||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Non-controlled, non-affiliated investments | (1,928 | ) | 10,485 | (35,440 | ) | (182,863 | ) | |||||
| Non-controlled and controlled, affiliated investments | 4,400 | (21,438 | ) | 95,034 | 72,819 | |||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | 680 | 7,231 | 1,576 | (896 | ) | |||||||
| Debt appreciation (depreciation) | (1,279 | ) | (1,682 | ) | (3,753 | ) | 7,501 | |||||
| Net change in unrealized appreciation (depreciation) on investments and debt | 1,873 | (5,404 | ) | 57,417 | (103,439 | ) | ||||||
| Net realized and unrealized gain (loss) from investments and debt | (3,338 | ) | (44,110 | ) | (99,340 | ) | (68,683 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | $ | 12,267 | $ | (34,927 | ) | $ | (33,807 | ) | $ | (24,740 | ) | |
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.19 | $ | (0.52 | ) | $ | (0.52 | ) | $ | (0.37 | ) | |
| Net investment income per common share | $ | 0.24 | $ | 0.14 | $ | 1.00 | $ | 0.66 |
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development company which invests primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing $6.8 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, and Los Angeles.
FORWARD-LOOKING STATEMENTS AND OTHER
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (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 PennantPark Investment Corporation files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the SEC. PennantPark Investment Corporation undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
The Company is completing its assessment of the effectiveness of its internal control over financial reporting as of September 30, 2023. Based on currently available information, the Company expects to report certain material weaknesses in internal control over financial reporting in Item 9A of its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the "2023 Annual Report"). The material weaknesses identified to date relate to the control environment over the Company's review process of its cash and par reconciliations and its interest income analysis. The material weaknesses are not expected to impact the accuracy of the Company's financial statements to be reported in the 2023 Annual Report. Because the Company has not completed the preparation of its consolidated financial statements for the year ended September 30, 2023, the preliminary unaudited results presented in the press release as of and for the fourth quarter and year ended September 30, 2023 are based on current expectations and are subject to adjustment.
| Contact: | Richard T. Allorto, Jr. |
|---|---|
| PennantPark Investment Corporation | |
| (212) 905-1000 | |
| www.pennantpark.com |
EX-99.2
EXHIBIT 99.2
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Investments in Non-Controlled, Non-Affiliated Portfolio Companies—145.6% of Net Assets (1), (2) | ||||||||||||||
| First Lien Secured Debt—93.2% of Net Assets | ||||||||||||||
| A1 Garage Merger Sub, LLC | 12/22/2028 | Personal, Food and Miscellaneous Services | 11.99 | % | 3M SOFR+660 | 5,144 | $ | 5,073 | $ | 5,119 | ||||
| A1 Garage Merger Sub, LLC - Unfunded Term Loan | 12/21/2024 | Personal, Food and Miscellaneous Services | — | — | 1,788 | — | 18 | |||||||
| A1 Garage Merger Sub, LLC (Revolver) (7) | 12/22/2028 | Personal, Food and Miscellaneous Services | — | — | 2,532 | — | (13 | ) | ||||||
| Ad.net Acquisition, LLC (Revolver) | 05/07/2026 | Media | 11.65 | % | 3M SOFR+626 | 222 | 222 | 221 | ||||||
| Ad.net Acquisition, LLC (Revolver) (7) | 05/07/2026 | Media | — | — | 222 | — | (1 | ) | ||||||
| Anteriad, LLC (f/k/a MeritDirect, LLC) | 05/23/2024 | Media | 12.04 | % | 3M SOFR+665 | 1,237 | 1,223 | 1,221 | ||||||
| Anteriad, LLC (f/k/a MeritDirect, LLC) (Revolver) (7) | 05/23/2024 | Media | — | — | 1,612 | — | (28 | ) | ||||||
| Any Hour Services | 07/21/2027 | Personal, Food and Miscellaneous Services | 11.22 | % | 3M SOFR+585 | 3,023 | 3,014 | 2,962 | ||||||
| Any Hour Services (Revolver) (7) | 07/21/2027 | Personal, Food and Miscellaneous Services | — | — | 1,147 | — | (23 | ) | ||||||
| Apex Service Partners, LLC | 07/31/2025 | Personal, Food and Miscellaneous Services | 10.77 | % | 3M SOFR+525 | 1,330 | 1,330 | 1,327 | ||||||
| Apex Service Partners, LLC Term Loan C | 07/31/2025 | Personal, Food and Miscellaneous Services | 10.79 | % | 3M SOFR+525 | 1,863 | 1,850 | 1,859 | ||||||
| Apex Service Partners, LLC (Revolver) | 07/31/2025 | Personal, Food and Miscellaneous Services | 10.79 | % | 3M SOFR+525 | 582 | 583 | 581 | ||||||
| Apex Service Partners, LLC (Revolver) (7) | 07/31/2025 | Personal, Food and Miscellaneous Services | — | — | 350 | — | (1 | ) | ||||||
| Applied Technical Services, LLC | 12/29/2026 | Environmental Services | 11.54 | % | 3M SOFR+615 | 824 | 818 | 808 | ||||||
| Applied Technical Services, LLC (Revolver) | 12/29/2026 | Environmental Services | 13.25 | % | 3M SOFR+475 | 400 | 400 | 392 | ||||||
| Applied Technical Services, LLC (Revolver) (7) | 12/29/2026 | Environmental Services | — | — | 600 | — | (12 | ) | ||||||
| Arcfield Acquisition Corp. (Revolver) | 08/03/2029 | Aerospace and Defense | 11.62 | % | 1M SOFR+615 | 8,090 | 7,970 | 8,009 | ||||||
| Arcfield Acquisition Corp. (Revolver) (7) | 08/04/2028 | Aerospace and Defense | — | — | 3,521 | — | (35 | ) | ||||||
| Berwick Industrial Park | 11/02/2023 | Buildings and Real Estate | 11.50 | % | — | 4,000 | 4,030 | 3,924 | ||||||
| Beta Plus Technologies, Inc. | 07/01/2029 | Business Services | 11.14 | % | 3M SOFR+575 | 4,950 | 4,869 | 4,604 | ||||||
| BioDerm, Inc. (Revolver) | 01/31/2028 | Healthcare, Education and Childcare | 11.81 | % | 1M SOFR+650 | 107 | 107 | 107 | ||||||
| BioDerm, Inc. (Revolver) (7) | 01/31/2028 | Healthcare, Education and Childcare | — | — | 964 | — | (5 | ) | ||||||
| Blackhawk Industrial Distribution, Inc. | 09/17/2026 | Distribution | 11.79 | % | 3M SOFR+640 | 1,851 | 1,833 | 1,823 | ||||||
| Blackhawk Industrial Distribution, Inc.(7) | 09/17/2026 | Distribution | — | — | 3,354 | — | (34 | ) | ||||||
| Blackhawk Industrial Distribution, Inc. | 09/17/2026 | Distribution | 11.79 | % | 3M SOFR+640 | 343 | 343 | 338 | ||||||
| Blackhawk Industrial Distribution, Inc. (Revolver) (7) | 09/17/2026 | Distribution | — | — | 3,089 | — | (46 | ) | ||||||
| Broder Bros., Co. | 12/04/2025 | Consumer Products | 11.65 | % | 3M SOFR+626 | 9,838 | 9,838 | 9,838 | ||||||
| Cartessa Aesthetics, LLC | 06/14/2028 | Distribution | 11.39 | % | 3M SOFR+600 | 34,056 | 33,496 | 34,056 | ||||||
| Cartessa Aesthetics, LLC - (Revolver) | 06/14/2028 | Distribution | 11.39 | % | 3M SOFR+600 | 1,265 | 1,265 | 1,265 | ||||||
| Cartessa Aesthetics, LLC - (Revolver) (7) | 06/14/2028 | Distribution | — | — | 2,297 | — | — | |||||||
| CF512, Inc. | 08/20/2026 | Media | 11.59 | % | 3M SOFR+600 | 6,592 | 6,524 | 6,460 | ||||||
| CF512, Inc.(Revolver) (7) | 08/20/2026 | Media | — | — | 909 | — | (18 | ) | ||||||
| Compex Legal Services, Inc. | 02/09/2026 | Business Services | 10.94 | % | 3M SOFR+555 | 949 | 939 | 949 | ||||||
| Compex Legal Services, Inc. (Revolver) | 02/07/2025 | Business Services | 10.94 | % | 3M SOFR+555 | 66 | 66 | 66 | ||||||
| Compex Legal Services, Inc. (Revolver) (7) | 02/07/2025 | Business Services | — | — | 590 | — | — | |||||||
| Connatix Buyer, Inc. (Revolver) (7) | 07/13/2027 | Media | — | — | 1,875 | — | (66 | ) | ||||||
| Confluent Health, LLC | 11/30/2028 | Healthcare, Education and Childcare | 12.82 | % | 3M SOFR+750 | 1,990 | 1,855 | 2,000 | ||||||
| Crane 1 Services, Inc. (Revolver) | 08/16/2027 | Personal, Food and Miscellaneous Services | 10.90 | % | 3M SOFR+551 | 117 | 117 | 116 | ||||||
| Crane 1 Services, Inc. (Revolver) (7) | 08/16/2027 | Personal, Food and Miscellaneous Services | — | — | 175 | — | (1 | ) | ||||||
| Dr. Squatch, LLC | 08/31/2027 | Personal and Non-Durable Consumer Products | 11.23 | % | 3M SOFR+585 | 8,276 | 8,190 | 8,276 | ||||||
| Dr. Squatch, LLC (7) | 08/27/2026 | Personal and Non-Durable Consumer Products | — | — | 2,000 | — | 20 | |||||||
| Dr. Squatch, LLC (Revolver) (7) | 08/31/2027 | Personal and Non-Durable Consumer Products | — | — | 2,326 | — | — | |||||||
| DRS Holdings III, Inc. | 11/03/2025 | Consumer Products | 11.79 | % | 3M SOFR+640 | 7 | 7 | 7 | ||||||
| DRS Holdings III, Inc. (Revolver) (7) | 11/03/2025 | Consumer Products | — | — | 1,783 | — | (21 | ) | ||||||
| EDS Buyer, LLC | 12/22/2028 | Aerospace and Defense | 11.64 | % | 3M SOFR+625 | 6,219 | 6,133 | 6,125 | ||||||
| EDS Buyer, LLC - Unfunded Term Loan | 12/22/2028 | Aerospace and Defense | — | — | 5,625 | — | (14 | ) | ||||||
| EDS Buyer, LLC - (Revolver) (7) | 12/22/2028 | Aerospace and Defense | — | — | 1,688 | — | (25 | ) | ||||||
| ETE Intermediate II, LLC (Revolver) (7) | 05/25/2029 | Personal, Food and Miscellaneous Services | — | — | 1,656 | — | (28 | ) | ||||||
| Exigo Intermediate II, LLC | 03/15/2027 | Business Services | 11.17 | % | 3M SOFR+585 | 24,375 | 24,097 | 23,888 | ||||||
| Exigo Intermediate II, LLC (Revolver) (7) | 03/15/2027 | Business Services | — | — | 1,856 | — | (37 | ) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Five Star Buyer, Inc. | 02/23/2028 | Leisure, Amusement, Motion Pictures, Entertainment | 12.42 | % | 3M SOFR+710 | 196 | 196 | 193 | ||||||
| Five Star Buyer, Inc. - Unfunded Term Loan | 02/23/2028 | Leisure, Amusement, Motion Pictures, Entertainment | — | — | 837 | — | (13 | ) | ||||||
| Five Star Buyer, Inc. (Revolver) (7) | 02/23/2028 | Leisure, Amusement, Motion Pictures, Entertainment | — | — | 741 | — | (11 | ) | ||||||
| Gauge ETE Blocker, LLC - Promissory Note | 05/19/2029 | Personal, Food and Miscellaneous Services | 12.56 | % | — | 215 | 215 | 215 | ||||||
| Graffiti Buyer, Inc. | 08/10/2027 | Distribution | 10.98 | % | 3M SOFR+560 | 613 | 608 | 607 | ||||||
| Graffiti Buyer, Inc. (7) | 12/08/2023 | Distribution | — | — | 276 | — | — | |||||||
| Graffiti Buyer, Inc. (Revolver) | 08/10/2027 | Distribution | 11.77 | % | 3M SOFR+560 | 239 | 239 | 237 | ||||||
| Graffiti Buyer, Inc. (Revolver) (7) | 08/10/2027 | Distribution | — | — | 529 | — | (5 | ) | ||||||
| Hancock Roofing and Construction L.L.C. | 12/31/2026 | Insurance | 10.92 | % | 1M SOFR+550 | 335 | 335 | 327 | ||||||
| Hancock Roofing and Construction L.L.C. (Revolver) (7) | 12/31/2026 | Insurance | — | — | 415 | — | (10 | ) | ||||||
| Holdco Sands Intermediate, LLC | 11/23/2028 | Aerospace and Defense | 11.32 | % | 6M SOFR+585 | 1,898 | 1,868 | 1,898 | ||||||
| Holdco Sands Intermediate, LLC (Revolver) (7) | 11/23/2027 | Aerospace and Defense | — | — | 3,941 | — | — | |||||||
| HV Watterson Holdings, LLC | 12/17/2026 | Business Services | 11.79 | % | 1M SOFR+625 | 279 | 278 | 279 | ||||||
| HV Watterson Holdings, LLC (7) | 12/17/2026 | Business Services | — | — | 2,219 | — | 12 | |||||||
| HV Watterson Holdings, LLC - (Revolver) | 12/17/2026 | Business Services | 11.79 | % | 3M SOFR+625 | 1,200 | 1,200 | 1,198 | ||||||
| HV Watterson Holdings, LLC - (Revolver)(7) | 12/17/2026 | Business Services | — | — | 50 | — | — | |||||||
| HW Holdco, LLC | 12/10/2024 | Media | 11.28 | % | 3M SOFR+640 | 11,237 | 11,167 | 11,069 | ||||||
| HW Holdco, LLC (Revolver) | 12/10/2024 | Media | 11.82 | % | 3M SOFR+640 | 271 | 271 | 267 | ||||||
| HW Holdco, LLC (Revolver) (7) | 12/10/2024 | Media | — | — | 3,116 | — | (47 | ) | ||||||
| IG Investments Holdings, LLC (Revolver) (7) | 09/22/2027 | Business Services | — | — | 477 | — | (7 | ) | ||||||
| Imagine Acquisitionco, LLC (7) | 11/15/2027 | Business Services | — | — | 2,341 | — | (12 | ) | ||||||
| Imagine Acquisitionco, LLC (Revolver) (7) | 11/15/2027 | Business Services | — | — | 1,685 | — | (25 | ) | ||||||
| Inception Fertility Ventures, LLC | 12/07/2023 | Healthcare, Education and Childcare | 12.49 | % | 3M SOFR+715 | 20,300 | 20,100 | 20,300 | ||||||
| Infinity Home Services Holdco, Inc. | 12/28/2028 | Personal, Food and Miscellaneous Services | 12.24 | % | 3M SOFR+685 | 2,089 | 2,089 | 2,089 | ||||||
| Infinity Home Services Holdco, Inc. - Unfunded Term Loan | 12/28/2023 | Personal, Food and Miscellaneous Services | — | — | 1,135 | — | — | |||||||
| Infinity Home Services Holdco, Inc.(Revolver) (7) | 12/28/2028 | Personal, Food and Miscellaneous Services | — | — | 1,292 | — | — | |||||||
| Infolinks Media Buyco, LLC | 11/01/2026 | Media | 11.17 | % | 1M SOFR+585 | 1,420 | 1,416 | 1,420 | ||||||
| Infolinks Media Buyco, LLC (7) | 11/01/2023 | Media | — | — | 949 | — | 10 | |||||||
| Integrated Data Services - Term Loan | 08/01/2029 | Business Services | 11.87 | % | 3M SOFR+650 | 15,467 | 15,161 | 15,106 | ||||||
| Integrated Data Services - Unfunded Revolver | 08/01/2029 | Business Services | — | — | 2,533 | — | (59 | ) | ||||||
| Integrity Marketing Acquisition, LLC | 08/27/2026 | Insurance | 11.41 | % | 3M SOFR+615 | 9,880 | 9,839 | 9,781 | ||||||
| Integrity Marketing Acquisition, LLC - Unfunded Term Loan | 08/31/2025 | Insurance | — | — | 2,500 | — | (13 | ) | ||||||
| Integrity Marketing Acquisition, LLC (Revolver) (7) | 08/31/2025 | Insurance | — | — | 160 | — | — | |||||||
| Inventus Power, Inc. | 06/30/2025 | Electronics | 12.93 | % | 1M SOFR+761 | 13,234 | 12,998 | 12,969 | ||||||
| Inventus Power, Inc. (Revolver) (7) | 06/30/2025 | Electronics | — | — | 1,729 | — | (35 | ) | ||||||
| ITI Holdings, Inc. | 03/03/2028 | Business Services | 11.06 | % | 3M SOFR+615 | 8,838 | 8,718 | 8,661 | ||||||
| ITI Holdings, Inc. (Revolver) | 03/03/2028 | Business Services | 10.70 | % | 1M SOFR+560 | 1,121 | 1,121 | 1,098 | ||||||
| ITI Holdings, Inc. (Revolver) (7) | 03/03/2028 | Business Services | — | — | 370 | — | (7 | ) | ||||||
| K2 Pure Solutions NoCal, L.P. | 12/20/2023 | Chemicals, Plastics and Rubber | 13.42 | % | 1M SOFR+810 | 9,409 | 9,402 | 9,409 | ||||||
| K2 Pure Solutions NoCal, L.P. (Revolver) (7) | 12/20/2023 | Chemicals, Plastics and Rubber | — | — | 1,938 | — | — | |||||||
| Kinetic Purchaser, LLC | 11/10/2027 | Consumer Products | 11.54 | % | 3M SOFR+615 | 9,173 | 8,957 | 9,035 | ||||||
| Kinetic Purchaser, LLC (Revolver) (7) | 11/10/2026 | Consumer Products | — | — | 4,854 | — | (73 | ) | ||||||
| Lash OpCo, LLC | 02/18/2027 | Consumer Products | 11.88 | % | 1M SOFR+700 | 2,807 | 2,764 | 2,779 | ||||||
| Lash OpCo, LLC (Revolver) | 08/16/2026 | Consumer Products | 12.15 | % | 1M SOFR+700 | 1,977 | 1,977 | 1,957 | ||||||
| Lash OpCo, LLC (Revolver) (7) | 08/16/2026 | Consumer Products | — | — | 935 | — | (9 | ) | ||||||
| LAV Gear Holdings, Inc. | 10/31/2024 | Leisure, Amusement, Motion Pictures, Entertainment | 11.79 | % | 1M SOFR+625 | 51 | 51 | 51 | ||||||
| (PIK 5.50%) | ||||||||||||||
| Ledge Lounger, Inc. | 11/09/2026 | Consumer Products | 11.79 | % | 3M SOFR+625 | 9,085 | 8,964 | 8,971 | ||||||
| Ledge Lounger, Inc. (Revolver) (7) | 11/09/2026 | Consumer Products | — | — | 1,933 | — | (24 | ) | ||||||
| Lightspeed Buyer Inc. | 02/03/2026 | Healthcare, Education and Childcare | 10.67 | % | 1M SOFR+535 | 2,198 | 2,187 | 2,176 | ||||||
| Lightspeed Buyer Inc. (Revolver) (7) | 02/03/2026 | Healthcare, Education and Childcare | — | — | 1,166 | — | (12 | ) | ||||||
| LJ Avalon Holdings, LLC | 07/31/2024 | Environmental Services | 11.79 | % | 3M SOFR+640 | 208 | 205 | 204 | ||||||
| LJ Avalon Holdings, LLC - Unfunded Term Loan | 07/31/2024 | Environmental Services | — | — | 1,260 | — | (6 | ) | ||||||
| LJ Avalon Holdings, LLC (Revolver)(7) | 01/31/2030 | Environmental Services | — | — | 587 | — | (12 | ) | ||||||
| LSF9 Atlantis Holdings, LLC | 03/31/2029 | Retail | 12.64 | % | 3M SOFR+725 | 5,625 | 5,436 | 5,381 | ||||||
| Loving Tan Intermediate II, Inc. | 05/31/2028 | Consumer Products | 12.39 | % | 3M SOFR+700 | 4,988 | 4,892 | 4,913 | ||||||
| Loving Tan Intermediate II, Inc. (Revolver) | 05/31/2028 | Consumer Products | 12.39 | % | 3M SOFR+700 | 347 | 347 | 342 | ||||||
| Loving Tan Intermediate II, Inc. (Revolver)(7) | 05/31/2028 | Consumer Products | — | — | 284 | — | (4 | ) | ||||||
| Mars Acquisition Holdings Corp. | 05/14/2026 | Media | 11.04 | % | 3M SOFR+565 | 1,835 | 1,807 | 1,817 | ||||||
| Mars Acquisition Holdings Corp. (Revolver)(7) | 05/14/2026 | Media | — | — | 1,209 | — | (12 | ) | ||||||
| MBS Holdings, Inc. (Revolver) | 04/16/2027 | Telecommunications | 11.17 | % | 1M SOFR+585 | 111 | 111 | 109 | ||||||
| MBS Holdings, Inc. (Revolver) (7) | 04/16/2027 | Telecommunications | — | — | 583 | — | (9 | ) | ||||||
| MDI Buyer, Inc. | 07/25/2028 | Chemicals, Plastics and Rubber | 11.27 | % | 3M SOFR+600 | 20,135 | 19,835 | 19,685 | ||||||
| MDI Buyer, Inc. (Revolver) | 07/25/2028 | Chemicals, Plastics and Rubber | 10.92 | % | 3M SOFR+600 | 1,039 | 1,039 | 1,016 | ||||||
| MDI Buyer, Inc. (Revolver) (7) | 07/25/2028 | Chemicals, Plastics and Rubber | — | — | 1,188 | — | (15 | ) | ||||||
| Meadowlark Acquirer, LLC | 12/10/2027 | Business Services | 10.66 | % | 3M SOFR+550 | 1,937 | 1,919 | 1,888 | ||||||
| Meadowlark Acquirer, LLC Term Loan I | 12/10/2027 | Business Services | — | — | 1,038 | — | (16 | ) | ||||||
| Meadowlark Acquirer, LLC Term Loan II | 12/10/2027 | Business Services | — | — | 8,922 | — | (134 | ) | ||||||
| Meadowlark Acquirer, LLC (Revolver) (7) | 12/10/2027 | Business Services | — | — | 1,685 | — | (43 | ) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Municipal Emergency Services, Inc. | 09/28/2027 | Distribution | 11.05 | % | 3M SOFR+565 | 484 | $ | 484 | $ | 474 | ||||
| Municipal Emergency Services, Inc. - Unfunded Term Loan A | 06/16/2023 | Distribution | — | — | 769 | — | (17 | ) | ||||||
| Municipal Emergency Services, Inc. - Unfunded Term Loan B | 12/16/2024 | Distribution | — | — | 2,510 | — | (55 | ) | ||||||
| Municipal Emergency Services, Inc. (Revolver) | 09/28/2027 | Distribution | 11.04 | % | 3M SOFR+565 | 752 | 752 | 736 | ||||||
| Municipal Emergency Services, Inc. (Revolver) (7) | 09/28/2027 | Distribution | — | — | 1,128 | — | (25 | ) | ||||||
| NBH Group LLC (Revolver) (7) | 08/19/2026 | Healthcare, Education and Childcare | — | — | 1,163 | — | (23 | ) | ||||||
| Neptune Flood Incorporated (Revolver) (7) | 05/09/2029 | Insurance | — | — | 541 | — | — | |||||||
| NORA Acquisition, LLC | 08/31/2029 | Healthcare, Education and Childcare | 11.74 | % | 3M SOFR+635 | 20,500 | 20,092 | 20,090 | ||||||
| NORA Acquisition, LLC (Revolver) (7) | 08/31/2029 | Healthcare, Education and Childcare | — | — | 2,707 | — | (54 | ) | ||||||
| ORL Acquisition, Inc. | 09/03/2027 | Business Services | 12.84 | % | 3M SOFR+725 | 4,409 | 4,347 | 4,012 | ||||||
| ORL Acquisition, Inc. (Revolver) (7) | 09/03/2027 | Business Services | — | — | 597 | — | (54 | ) | ||||||
| Ox Two, LLC | 05/18/2026 | Building Materials | 12.90 | % | 1M SOFR+725 | 13,578 | 13,445 | 13,340 | ||||||
| Ox Two, LLC (Revolver) (7) | 05/18/2026 | Building Materials | — | — | 2,419 | — | (42 | ) | ||||||
| Pequod Merger Sub, Inc. - Unfunded Term Loan | 12/02/2026 | Financial Services | — | — | 2,847 | — | (57 | ) | ||||||
| Pequod Merger Sub, Inc. (Revolver) (7) | 12/02/2026 | Financial Services | — | — | 757 | — | (15 | ) | ||||||
| PL Acquisitionco, LLC (Revolver) (7) | 11/09/2027 | Retail | — | — | 3,236 | — | (324 | ) | ||||||
| Pragmatic Institute, LLC | 07/06/2028 | Business Services | 11.17 | % | 3M SOFR+575 | 34,987 | 34,547 | 33,412 | ||||||
| Pragmatic Institute, LLC Unfunded Term Loan | 07/06/2028 | Business Services | — | — | 7,193 | — | (252 | ) | ||||||
| Pragmatic Institute, LL (Revolver) | 07/06/2028 | Business Services | 11.17 | % | 3M SOFR+575 | 4,795 | 4,795 | 4,579 | ||||||
| Quantic Electronics, LLC | 11/19/2026 | Aerospace and Defense | 11.74 | % | 3M SOFR+635 | 1,484 | 1,474 | 1,461 | ||||||
| Quantic Electronics, LLC (Revolver) | 11/19/2026 | Aerospace and Defense | 11.74 | % | 3M SOFR+635 | 528 | 528 | 521 | ||||||
| Questex, LLC | 09/09/2024 | Media | 9.81 | % | 3M SOFR+425 | 20,193 | 20,115 | 20,193 | ||||||
| Questex, LLC (Revolver) (7) | 09/09/2024 | Media | — | — | 3,590 | — | — | |||||||
| Radius Aerospace, Inc. (Revolver) | 03/31/2025 | Aerospace and Defense | 11.29 | % | 3M SOFR+575 | 668 | 668 | 661 | ||||||
| Radius Aerospace, Inc. (Revolver) (7) | 03/31/2025 | Aerospace and Defense | — | — | 1,559 | — | (16 | ) | ||||||
| Rancho Health MSO, Inc. (7) | 12/18/2025 | Healthcare, Education and Childcare | 11.22 | % | 3M SOFR+575 | 79 | 79 | 79 | ||||||
| Rancho Health MSO, Inc. - Unfunded Term Loan | 12/18/2025 | Healthcare, Education and Childcare | — | — | 494 | — | — | |||||||
| Rancho Health MSO, Inc. (Revolver) | 12/18/2025 | Healthcare, Education and Childcare | 11.24 | % | 3M SOFR+575 | 210 | 210 | 210 | ||||||
| Rancho Health MSO, Inc. (Revolver) (7) | 12/18/2025 | Healthcare, Education and Childcare | — | — | 315 | — | — | |||||||
| Reception Purchaser, LLC | 02/28/2028 | Transportation | 11.54 | % | 3M SOFR+615 | 5,863 | 5,791 | 5,628 | ||||||
| Recteq, LLC (Revolver) (7) | 01/29/2026 | Consumer Products | — | — | 1,127 | — | (34 | ) | ||||||
| Research Now Group, Inc. and Dynata, LLC | 12/20/2024 | Business Services | 11.13 | % | 3M SOFR+576 | 124 | 124 | 108 | ||||||
| Riverpoint Medical, LLC (Revolver) | 06/20/2025 | Healthcare, Education and Childcare | 10.42 | % | 3M SOFR+510 | 45 | 45 | 45 | ||||||
| Riverpoint Medical, LLC (Revolver) (7) | 06/20/2025 | Healthcare, Education and Childcare | — | — | 318 | — | (4 | ) | ||||||
| Riverside Assessments, LLC | 03/10/2025 | Education | 11.24 | % | 3M SOFR+575 | 11,699 | 11,588 | 11,582 | ||||||
| Rural Sourcing Holdings, Inc. - Unfunded Term Loan | 06/15/2029 | Business Services | — | — | 1,146 | — | — | |||||||
| Rural Sourcing Holdings, Inc. (Revolver) (7) | 06/15/2029 | Business Services | — | — | 861 | — | (13 | ) | ||||||
| Sales Benchmark Index LLC (Revolver) (7) | 01/03/2025 | Business Services | — | — | 732 | — | (4 | ) | ||||||
| Sargent & Greenleaf Inc. (Revolver) | 12/20/2024 | Electronics | 12.92 | % | 1M SOFR+650 | 158 | 158 | 157 | ||||||
| Sargent & Greenleaf Inc. (Revolver) (7) | 12/20/2024 | Electronics | — | — | 453 | — | (5 | ) | ||||||
| Schlesinger Global, Inc. | 07/14/2025 | Business Services | 13.15 | % | 3M SOFR+775 | 4,647 | 4,611 | 4,496 | ||||||
| Schlesinger Global, Inc. (Revolver) | 07/14/2025 | Business Services | 12.52 | % | 3M SOFR+775 | 30 | 30 | 29 | ||||||
| (PIK 0.5%) | ||||||||||||||
| Schlesinger Global, Inc. (Revolver)(7) | 07/14/2025 | Business Services | — | — | 8 | — | — | |||||||
| Seaway Buyer, LLC | 06/13/2029 | Chemicals, Plastics and Rubber | 11.54 | % | 3M SOFR+605 | 4,752 | 4,691 | 4,609 | ||||||
| Seaway Buyer, LLC (Revolver) | 06/13/2029 | Chemicals, Plastics and Rubber | 11.54 | % | 3M SOFR+605 | 729 | 729 | 708 | ||||||
| Seaway Buyer, LLC (Revolver)(7) | 06/13/2029 | Chemicals, Plastics and Rubber | — | — | 2,397 | — | (72 | ) | ||||||
| Shiftkey, LLC | 06/21/2027 | Business Services | 11.40 | % | 3M SOFR+601 | 17,775 | 17,636 | 17,331 | ||||||
| Sigma Defense Systems, LLC | 12/18/2025 | Telecommunications | 14.04 | % | 3M SOFR+865 | 29,681 | 29,190 | 29,236 | ||||||
| Sigma Defense Systems, LLC (Revolver) | 12/18/2025 | Telecommunications | 14.04 | % | 3M SOFR+865 | 2,083 | 2,083 | 2,052 | ||||||
| Sigma Defense Systems, LLC (Revolver) (7) | 12/18/2025 | Telecommunications | — | — | 893 | — | (13 | ) | ||||||
| Signature Systems Holding Company (Revolver) (7) | 05/03/2024 | Chemicals, Plastics and Rubber | — | — | 2,016 | — | — | |||||||
| Solutionreach, Inc. (Revolver) (7) | 07/17/2025 | Communications | — | — | 1,665 | — | (7 | ) | ||||||
| Spendmend Holdings LLC | 03/01/2028 | Business Services | 11.04 | % | 1M SOFR+565 | 99 | 99 | 97 | ||||||
| Spendmend Holdings LLC (7) | 03/01/2028 | Business Services | — | — | 2,684 | — | (39 | ) | ||||||
| Spendmend Holdings LLC - Funded Revolver | 03/01/2028 | Business Services | 11.20 | % | 1M SOFR+565 | 561 | 561 | 548 | ||||||
| Spendmend Holdings LLC - Unfunded Revolver (7) | 03/01/2028 | Business Services | — | — | 841 | — | (18 | ) | ||||||
| System Planning and Analysis, Inc. - (Revolver) (7) <br>(f/k/a Management Consulting & Research, LLC) | 08/16/2027 | Aerospace and Defense | — | — | 2,925 | — | (32 | ) | ||||||
| The Aegis Technologies Group, LLC | 10/31/2025 | Aerospace and Defense | 11.66 | % | 3M SOFR+665 | 1,121 | 1,097 | 1,104 | ||||||
| The Bluebird Group LLC | 07/27/2026 | Business Services | 12.79 | % | 3M SOFR+740 | 2,271 | 2,239 | 2,262 | ||||||
| The Bluebird Group LLC (Revolver) (7) | 07/27/2026 | Business Services | — | — | 734 | — | (3 | ) | ||||||
| The Vertex Companies, LLC | 08/30/2027 | Business Services | 11.93 | % | 1M SOFR+635 | 186 | 182 | 185 | ||||||
| The Vertex Companies, LLC (Revolver) | 08/30/2027 | Business Services | 11.67 | % | 1M SOFR+635 | 248 | 248 | 246 | ||||||
| The Vertex Companies, LLC (Revolver) (7) | 08/30/2027 | Business Services | — | — | 492 | — | (4 | ) | ||||||
| TWS Acquisition Corporation (Revolver) (7) | 06/16/2025 | Education | — | — | 1,644 | — | — | |||||||
| Tyto Athene, LLC (Revolver) (7) | 04/01/2026 | Aerospace and Defense | — | — | 364 | — | (32 | ) | ||||||
| Urology Management Holdings, Inc. - Unfunded Term Loan | 02/01/2024 | Healthcare, Education and Childcare | — | — | 7,222 | — | (150 | ) | ||||||
| Wildcat Buyerco, Inc. | 02/27/2026 | Electronics | 10.57 | % | 3M SOFR+515 | 3,805 | 3,762 | 3,767 | ||||||
| Wildcat Buyerco, Inc. (Revolver) | 02/27/2026 | Electronics | 10.17 | % | 3M SOFR+585 | 88 | 88 | 87 | ||||||
| Wildcat Buyerco, Inc. (Revolver) (7) | 02/27/2026 | Electronics | — | — | 486 | — | (5 | ) | ||||||
| Zips Car Wash, LLC | 03/01/2024 | Auto Sector | 12.67 | % | 1M SOFR+735 | 2,589 | 2,583 | 2,504 | ||||||
| Total First Lien Secured Debt | 472,975 | 468,007 | ||||||||||||
| Second Lien Secured Debt—16.0% of Net Assets |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ascensus Holdings, Inc. | 08/02/2028 | Financial Services | 12.03 | % | 3M SOFR+676 | 3,000 | $ | 2,717 | $ | 2,837 | ||||
| Atlas Purchaser, Inc | 05/07/2029 | Telecommunications | 14.66 | % | 3M SOFR+900 | 17,000 | 16,600 | 13,821 | ||||||
| Best Practice Associates LLC | 06/29/2027 | Aerospace and Defense | 14.54 | % | 3M SOFR+915 | 17,825 | 17,559 | 17,469 | ||||||
| Burgess Point Purchaser Corporation | 07/28/2030 | Auto Sector | 14.42 | % | 1M SOFR+910 | 8,000 | 7,680 | 7,920 | ||||||
| ENC Parent Corporation | 08/19/2029 | Business Services | 13.15 | % | 3M SOFR+776 | 7,500 | 7,440 | 6,675 | ||||||
| Halo Buyer, Inc. | 07/06/2026 | Consumer Products | 13.67 | % | 1M SOFR+835 | 32,500 | 32,232 | 31,525 | ||||||
| QuantiTech LLC | 02/04/2027 | Aerospace and Defense | 11.74 | % | 3M SOFR+635 | 150 | 148 | 149 | ||||||
| Total Second Lien Secured Debt | 84,376 | 80,396 | ||||||||||||
| Subordinated Debt/Corporate Notes—10.7% of Net Assets | ||||||||||||||
| Express Wash Acquisition Company, LLC | 01/15/2029 | Auto Sector | 15.15 | % | 3M SOFR+976 | 22,219 | 21,568 | 21,597 | ||||||
| Flock Financial, LLC | 05/26/2027 | Financial Services | 14.50 | % | — | 34,000 | 33,329 | 32,300 | ||||||
| Total Subordinated Debt/Corporate Notes | 54,897 | 53,897 | ||||||||||||
| Preferred Equity/Partnership Interests—2.6% of Net Assets (6) | ||||||||||||||
| Ad.net Holdings, Inc. | — | Media | — | — | 2,400 | 240 | 271 | |||||||
| AH Newco Equityholdings, LLC | — | Healthcare, Education and Childcare | 6.00 | % | — | 211 | 500 | 1,066 | ||||||
| Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9) | — | Media | — | — | 1,135 | 1,135 | 918 | |||||||
| Cartessa Aesthetics, LLC | — | Distribution | — | — | 3,562,500 | 3,563 | 4,975 | |||||||
| Gauge Lash Coinvest, LLC - Preferred Equity | — | Consumer Products | — | — | 64,967 | 351 | 789 | |||||||
| Gauge Schlesinger Coinvest, LLC - Class A-2 Preferred Equity | — | Business Services | — | — | 1 | 1 | 1 | |||||||
| Imagine Topco, LP | — | Business Services | 8.00 | % | — | 743,826 | 744 | 750 | ||||||
| Magnolia Topco LP - Class A Preferred Equity | — | Auto Sector | — | — | 169 | 169 | 172 | |||||||
| Magnolia Topco LP - Class B Preferred Equity | — | Auto Sector | — | — | 929 | 554 | 794 | |||||||
| Mars Intermediate Holdings II, Inc (9) | — | Media | — | — | 414 | 414 | 551 | |||||||
| NXOF Holdings, Inc. (Tyto Athene, LLC) | — | Aerospace and Defense | — | — | 160 | 160 | 107 | |||||||
| ORL Holdco, Inc. | — | Business Services | — | — | 575 | 57 | — | |||||||
| PL Acquisitionco, LLC - Preferred Equity | — | Retail | — | — | 37 | 37 | 39 | |||||||
| Signature CR Intermediate Holdco, Inc. | — | Chemicals, Plastics and Rubber | 12.00 | % | — | 1,527 | 1,527 | 2,490 | ||||||
| TPC Holding Company, LP (8),(11) | — | Food | — | — | 219 | 219 | 320 | |||||||
| TWD Parent Holdings, LLC | — | Business Services | — | — | 30 | 30 | 37 | |||||||
| (The Vertex Companies, LLC) | ||||||||||||||
| Total Preferred Equity/Partnership Interests | 9,701 | 13,280 | ||||||||||||
| Common Equity/Partnership Interests/Warrants—23.0% of Net Assets (6) | ||||||||||||||
| A1 Garage Equity, LLC | — | Personal, Food and Miscellaneous Services | — | — | 2,193,038 | 2,193 | 2,340 | |||||||
| Ad.net Holdings, Inc. | — | Media | — | — | 2,667 | 27 | — | |||||||
| Affinion Group Holdings, Inc. (Warrants) | 04/10/2024 | Consumer Products | — | — | 77,190 | 2,126 | — | |||||||
| AG Investco LP (9) | — | Business Services | — | — | 805,164 | 805 | 1,074 | |||||||
| AG Investco LP (7), (9) | — | Business Services | — | — | 194,836 | — | — | |||||||
| Altamira Intermediate Company II, Inc. | — | Aerospace and Defense | — | — | 125,000 | 125 | 127 | |||||||
| AMCSI Crash Co-Invest, LP | — | Auto Sector | — | — | 2,489,777 | 2,490 | 3,318 | |||||||
| AMCSI Crash Co-Invest, LP (7) | — | Auto Sector | — | — | 510,223 | — | — | |||||||
| Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9) | — | Media | — | — | 1,135 | — | — | |||||||
| Athletico Holdings, LLC (9) | — | Healthcare, Education and Childcare | — | — | 9,357 | 10,000 | 9,032 | |||||||
| Atlas Investment Aggregator, LLC | — | Telecommunications | — | — | 1,700,000 | 1,613 | 293 | |||||||
| BioDerm, Inc. | — | Healthcare, Education and Childcare | — | — | 1,312 | 1,312 | 1,513 | |||||||
| Burgess Point Holdings, LP | — | Auto Sector | — | — | 680 | 680 | 740 | |||||||
| Connatix Parent, LLC | — | Media | — | — | 57,416 | 632 | 333 | |||||||
| Cowboy Parent LLC | — | Distribution | — | — | 27,778 | 3,015 | 5,451 | |||||||
| (Blackhawk Industrial Distribution, Inc.) | ||||||||||||||
| Crane 1 Acquisition Parent Holdings, L.P. | — | Personal, Food and Miscellaneous Services | — | — | 113 | 104 | 173 | |||||||
| Delta InvestCo LP | — | Telecommunications | — | — | 863,299 | 848 | 1,542 | |||||||
| (Sigma Defense Systems, LLC) (9) | ||||||||||||||
| Delta InvestCo LP (7) | — | Telecommunications | — | — | 277,745 | — | — | |||||||
| (Sigma Defense Systems, LLC) (7), (9) | ||||||||||||||
| eCommission Holding Corporation (11) | — | Financial Services | — | — | 80 | 1,005 | 1,854 | |||||||
| EDS Topco, LP | — | Aerospace and Defense | — | — | 937,500 | 938 | 885 | |||||||
| Exigo, LLC (9) | — | Business Services | — | — | 1,458,333 | 1,458 | 1,648 | |||||||
| FedHC InvestCo LP (9) | — | Aerospace and Defense | — | — | 14,578 | 489 | 2,060 | |||||||
| FedHC InvestCo LP (7),(9) | — | Aerospace and Defense | — | — | 5,150 | — | — | |||||||
| FedHC InvestCo II LP (9) | — | Aerospace and Defense | — | — | 20,882 | 2,175 | 2,951 | |||||||
| Five Star Parent Holdings, LLC | — | Leisure, Amusement, Motion Pictures, Entertainment | — | — | 655,714 | 656 | 800 | |||||||
| Gauge ETE Blocker, LLC - Common Equity | — | Personal, Food and Miscellaneous Services | — | — | 374,444 | 374 | 371 | |||||||
| Gauge Lash Coinvest LLC | — | Consumer Products | — | — | 889,376 | 136 | 4,076 | |||||||
| Gauge Loving Tan, LP - Common Equity | — | Consumer Products | — | — | 462,827 | 463 | 389 | |||||||
| Gauge Schlesinger Coinvest, LLC | — | Business Services | — | — | 9 | 10 | 7 | |||||||
| Gauge TVC Coinvest, LLC | — | Transportation | — | — | 810,645 | — | 2,390 | |||||||
| (TVC Enterprises, LLC) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GCOM InvestCo LP | — | Business Services | — | — | 2,434 | $ | 1,003 | $ | 401 | |||||
| Go Dawgs Capital III, LP | — | Building Materials | — | — | 675,325 | 675 | 1,479 | |||||||
| (American Insulated Glass, LLC) (9) | ||||||||||||||
| Hancock Claims Consultants Investors, LLC (9) | — | Insurance | — | — | 450,000 | 450 | 338 | |||||||
| HPA SPQ Aggregator LP- Common Equity | — | Business Services | — | — | 750,399 | 750 | 751 | |||||||
| HV Watterson Holdings, LLC | — | Business Services | — | — | 1,600,000 | 1,600 | 1,778 | |||||||
| Icon Partners V C, L.P. | — | Business Services | — | — | 1,118,318 | 1,118 | 1,002 | |||||||
| Icon Partners V C, L.P. (7),(9) | — | Business Services | — | — | 381,682 | — | (40 | ) | ||||||
| IHS Parent Holdngs, L.P. | Personal, Food and Miscellaneous Services | 1,218,045 | 1,218 | 1,642 | ||||||||||
| Imagine Topco, LP | — | Business Services | — | — | 743,826 | — | — | |||||||
| Infogroup Parent Holdings, Inc. | — | Other Media | — | — | 181,495 | 2,040 | 2,327 | |||||||
| (Data Axle, Inc.) | ||||||||||||||
| Ironclad Holdco, LLC | — | Environmental Services | — | — | 4,566 | 450 | 663 | |||||||
| (Applied Technical Services, LLC) (9) | ||||||||||||||
| ITC Infusion Co-invest, LP(9) | — | Healthcare, Education and Childcare | — | — | 162,445 | 1,624 | 1,775 | |||||||
| ITC Rumba, LLC | — | Healthcare, Education and Childcare | — | — | 375,675 | 8 | 1,158 | |||||||
| (Cano Health, LLC) (9) | ||||||||||||||
| Kentucky Racing Holdco, LLC (Warrants)(9) | — | Hotels, Motels, Inns and Gaming | — | — | 161,252 | — | 1,630 | |||||||
| Kinetic Purchaser, LLC | — | Consumer Products | — | — | 1,308,814 | 1,309 | 1,892 | |||||||
| KL Stockton Co-Invest LP | — | Personal, Food and Miscellaneous Services | — | — | 382,353 | 382 | 775 | |||||||
| (Any Hour Services) (9) | ||||||||||||||
| Lariat ecoserv Co-Invest Holdings, LLC (9) | — | Environmental Services | — | — | 363,656 | — | 22 | |||||||
| LEP Pequod Holdings, LP | — | Financial Services | — | — | 350 | 865 | 1,006 | |||||||
| Lightspeed Investment Holdco LLC | — | Healthcare, Education and Childcare | — | — | 273,143 | 273 | 741 | |||||||
| LJ Avalon, LP | — | Environmental Services | — | — | 851,087 | 851 | 902 | |||||||
| Lorient Peregrine Investments, LP | — | Business Services | — | — | 335,590 | 4,530 | 4,452 | |||||||
| Magnolia Topco LP - Class A Common Equity | — | Auto Sector | — | — | 169,230 | — | — | |||||||
| Magnolia Topco LP - Class B Common Equity | — | Auto Sector | — | — | 929,200 | — | — | |||||||
| Mars Intermidiate Holdings II, Inc. (9) | — | Media | — | — | 414 | — | 232 | |||||||
| MDI Aggregator, LP | — | Chemicals, Plastics and Rubber | — | — | 30,993 | 3,103 | 3,326 | |||||||
| Meadowlark Title, LLC (9) | — | Business Services | — | — | 815,385 | 802 | — | |||||||
| Municipal Emergency Services, Inc. | — | Distribution | — | — | 3,920,145 | 3,984 | 4,430 | |||||||
| NEPRT Parent Holdings, LLC | — | Consumer Products | — | — | 1,299 | 1,259 | 88 | |||||||
| (Recteq, LLC) (9) | ||||||||||||||
| NORA Parent Holdings, LLC | — | Healthcare, Education and Childcare | — | — | 1,257 | 1,257 | 1,257 | |||||||
| North Haven Saints Equity Holdings, LP(9) | — | Business Services | — | — | 351,553 | 352 | 351 | |||||||
| NXOF Holdings, Inc. | — | Aerospace and Defense | — | — | 3,261 | 3 | — | |||||||
| (Tyto Athene, LLC) | ||||||||||||||
| OceanSound Discovery Equity, LP | — | Aerospace and Defense | — | — | 98,286 | 913 | 2,133 | |||||||
| (Holdco Sands Intermediate, LLC) (9) | ||||||||||||||
| OHCP V BC COI, L.P. | — | Distribution | — | — | 446,250 | 446 | 390 | |||||||
| OHCP V BC COI, L.P. (7),(9) | — | Distribution | — | — | 303,750 | — | (38 | ) | ||||||
| ORL Holdco, Inc. | — | Business Services | — | — | 638 | 6 | — | |||||||
| PennantPark-TSO Senior Loan Fund II, LP | — | Financial Services | — | — | 12,269,640 | 12,270 | 12,485 | |||||||
| Pink Lily Holdco, LLC (9) | — | Retail | — | — | 1,044 | 1,044 | 33 | |||||||
| Pragmatic Institute, LLC | — | Business Services | — | — | 1,918,047 | 1,918 | 747 | |||||||
| Quad (U.S.) Co-Invest, L.P. | — | Business Services | — | — | 2,958,706 | 2,959 | 3,461 | |||||||
| QuantiTech InvestCo LP (9) | — | Aerospace and Defense | — | — | 712 | 68 | 446 | |||||||
| QuantiTech InvestCo LP (7),(9) | — | Aerospace and Defense | — | — | 955 | — | — | |||||||
| QuantiTech InvestCo II LP (9) | — | Aerospace and Defense | — | — | 40 | 24 | 26 | |||||||
| RFMG Parent, LP | — | Healthcare, Education and Childcare | — | — | 1,050,000 | 1,050 | 1,052 | |||||||
| (Rancho Health MSO, Inc.) | ||||||||||||||
| SBI Holdings Investments LLC | — | Business Services | — | — | 36,585 | 366 | 291 | |||||||
| (Sales Benchmark Index LLC) | ||||||||||||||
| Seaway Topco, LP | — | Chemicals, Plastics and Rubber | — | — | 2,981 | 2,981 | 2,372 | |||||||
| Signature CR Intermediate Holdco, Inc. | — | Chemicals, Plastics and Rubber | — | — | 80 | 80 | 2,059 | |||||||
| SP L2 Holdings, LLC | — | Consumer Products | — | — | 881,966 | 882 | 604 | |||||||
| SSC Dominion Holdings, LLC | — | Electronics | — | — | 71 | 71 | 3,295 | |||||||
| Class B (US Dominion, Inc.) | ||||||||||||||
| StellPen Holdings, LLC | — | Media | — | — | 153,846 | 154 | 169 | |||||||
| (CF512, Inc.) | ||||||||||||||
| TAC LifePort Holdings, LLC (9) | — | Aerospace and Defense | — | — | 254,206 | 250 | 405 | |||||||
| Tower Arch Infolinks Media, LP (9) | — | Media | — | — | 536,514 | 504 | 951 | |||||||
| Tower Arch Infolinks Media, LP (7), (9) | — | Media | — | — | 358,931 | — | — | |||||||
| TPC Holding Company, LP (8). (11) | — | Food | — | — | 11,527 | 12 | 113 | |||||||
| TWD Parent Holdings, LLC | — | Business Services | — | — | 608 | 1 | 1 | |||||||
| (The Vertex Companies, LLC) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2023
(In thousands, except share data)
(Unaudited)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UniVista Insurance (9) | — | Business Services | — | — | 400 | $ | 362 | $ | 555 | ||||||
| Urology Partners Co., L.P. | — | Healthcare, Education and Childcare | — | — | 1,111,111 | 1,111 | 1,044 | ||||||||
| WCP Ivyrehab QP CF Feeder, LP | — | Healthcare, Education and Childcare | — | — | 3,715,012 | 3,754 | 4,319 | ||||||||
| WCP Ivyrehab QP CF Feeder, LP - Unfunded (7) | — | Healthcare, Education and Childcare | — | — | 284,988 | — | — | ||||||||
| Wildcat Parent, LP | — | Electronics | — | — | 2,314 | 231 | 820 | ||||||||
| (Wildcat Buyerco, Inc.) (9) | |||||||||||||||
| Total Common Equity/Partnership Interests/Warrants | 95,037 | 115,478 | |||||||||||||
| Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies | 716,986 | 731,058 | |||||||||||||
| Investments in Non-Controlled, Affiliated Portfolio Companies—10.9% of Net Assets (1), (2) | |||||||||||||||
| First Lien Secured Debt—2.1% of Net Assets | |||||||||||||||
| Walker Edison Furniture Company LLC | 03/31/2027 | Home and Office Furnishings | 12.18 | % | 1M SOFR+685 | 7,042 | 7,042 | 7,043 | |||||||
| Walker Edison Furniture Company, LLC - Unfunded Term Loan | 03/31/2027 | Home and Office Furnishings | — | — | 667 | — | — | ||||||||
| Walker Edison Furniture Company LLC - Junior Revolver | 03/31/2027 | Home and Office Furnishings | 11.68 | % | 1M SOFR+685 | 3,333 | 3,333 | 3,333 | |||||||
| Total First Lien Secured Debt | 10,375 | 10,376 | |||||||||||||
| Preferred Equity/Partnership Interests—6.4% of Net Assets(6) | |||||||||||||||
| Cascade Environmental Holdings, LLC (9) | — | Environmental Services | — | — | 5,887,236 | 32,791 | 31,032 | ||||||||
| Cascade Environmental Holdings, LLC - Series B | — | Environmental Services | — | — | 918 | 918 | 1,073 | ||||||||
| Total Preferred Equity/Partnership Interests | 33,709 | 32,105 | |||||||||||||
| Common Equity/Partnership Interests/Warrants—2.4% of Net Assets (6) | |||||||||||||||
| Cascade Environmental Holdings, LLC | — | Environmental Services | — | — | 7,444,347 | 2,852 | — | ||||||||
| JF Intermediate, LLC | — | Distribution | — | — | 19,687 | 2,065 | 8,759 | ||||||||
| Walker Edison Furniture | — | Home and Office Furnishings | — | — | 72,917 | 6,786 | 3,531 | ||||||||
| Total Common Equity/Partnership Interests/Warrants | 11,703 | 12,290 | |||||||||||||
| Total Investments in Non-Controlled, Affiliated Portfolio Companies | 55,787 | 54,771 | |||||||||||||
| Investments in Controlled, Affiliated Portfolio Companies—43.0% of Net Assets (1), (2) | |||||||||||||||
| First Lien Secured Debt—9.8% of Net Assets | |||||||||||||||
| AKW Holdings Limited (8), (10), (11) | 03/15/2027 | Healthcare, Education and Childcare | 12.21 | % | 3M SONIA+700 | £ | 40,371 | 55,388 | 49,275 | ||||||
| Total First Lien Secured Debt | 55,388 | 49,275 | |||||||||||||
| Second Lien Secured Debt—0.0% of Net Assets | |||||||||||||||
| Mailsouth Inc. (6) | 04/23/2025 | Printing and Publishing | — | — | 14,896 | 12,383 | — | ||||||||
| Total Second Lien Secured Debt | 12,383 | — | |||||||||||||
| Subordinated Debt—20.4% of Net Assets | |||||||||||||||
| PennantPark Senior Loan Fund, LLC (11) | 07/31/2027 | Financial Services | 13.37 | % | 3M SOFR+800 | 102,325 | 102,325 | 102,325 | |||||||
| Total Subordinated Debt | 102,325 | 102,325 | |||||||||||||
| Common Equity—12.8% of Net Assets (6) | |||||||||||||||
| AKW Holdings Limited (8), (10), (11) | — | Healthcare, Education and Childcare | — | — | £ | 950 | 132 | 2,385 | |||||||
| MSpark, LLC | — | Printing and Publishing | — | — | 51,151 | 16,516 | — | ||||||||
| PennantPark Senior Loan Fund, LLC | — | Financial Services | — | — | 58,580,060 | 58,643 | 62,083 | ||||||||
| Total Common Equity | 75,291 | 64,468 | |||||||||||||
| Total Investments in Controlled, Affiliated Portfolio Companies | 245,387 | 216,068 | |||||||||||||
| Total Investments—199.5% of Net Assets | 1,018,160 | 1,001,897 | |||||||||||||
| Cash and Cash Equivalents—26.8% of Net Assets | |||||||||||||||
| BlackRock Federal FD Institutional 30 | 24,683 | 24,683 | |||||||||||||
| U.S. Treasury Bill (5) | 99,768 | 99,751 | |||||||||||||
| Non-Money Market Cash | 10,003 | 9,993 | |||||||||||||
| Total Cash and Cash Equivalents | 134,454 | 134,427 | |||||||||||||
| Total Investments and Cash Equivalents—226.3% of Net Assets | $ | 1,152,614 | $ | 1,136,324 | |||||||||||
| Liabilities in Excess of Other Assets—(126.3%) of Net Assets | (634,137 | ) | |||||||||||||
| Net Assets—100.0% | $ | 502,187 |
(1) 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.
(2) 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).
(3) Valued based on our accounting policy (See Note 2).
(4) 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.
(5) The security was not valued using significant unobservable inputs. The value of all other securities was determined using significant unobservable inputs (See Note 5).
(6) Non-income producing securities.
(7) 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.
(8) Non-U.S. company or principal place of business outside the United States.
(9) Investment is held through our Taxable Subsidiary (See Note 1).
(10) Par / Shares amount is denominated in British Pounds (£) as denoted.
(11) 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, 2023, qualifying assets represent 77% of the Company’s total assets and non-qualifying assets represent 23% of the Company’s total assets.
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2022
(In thousands, except share data)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Investments in Non-Controlled, Non-Affiliated Portfolio Companies—159.2% of Net Assets (1), (2) | ||||||||||||||
| First Lien Secured Debt—100.5% of Net Assets | ||||||||||||||
| Ad.net Acquisition, LLC (Revolver) (7) | 05/06/2026 | Media | — | — | 444 | $ | — | $ | (3 | ) | ||||
| Altamira Technologies, LLC (Revolver) | 07/24/2025 | Aerospace and Defense | 11.67 | % | 3M L+800 | 50 | 50 | 48 | ||||||
| Altamira Technologies, LLC (Revolver) (7) | 07/24/2025 | Aerospace and Defense | — | — | 138 | — | (5 | ) | ||||||
| American Insulated Glass, LLC | 12/21/2023 | Building Materials | 7.79 | % | 3M L+550 | 3,329 | 3,310 | 3,329 | ||||||
| Anteriad, LLC (f/k/a MeritDirect, LLC) (Revolver) (7) | 05/23/2024 | Media | — | — | 1,612 | — | — | |||||||
| Any Hour Services | 07/21/2027 | Personal, Food and Miscellaneous Services | 8.15 | % | 3M L+525 | 4,120 | 4,086 | 4,038 | ||||||
| Any Hour Services (Revolver) (7) | 07/21/2027 | Personal, Food and Miscellaneous Services | — | — | 1,147 | — | (23 | ) | ||||||
| Apex Service Partners, LLC | 07/31/2025 | Personal, Food and Miscellaneous Services | 7.60 | % | 1M L+550 | 1,331 | 1,331 | 1,324 | ||||||
| Apex Service Partners, LLC Term Loan C | 07/31/2025 | Personal, Food and Miscellaneous Services | 9.08 | % | 1M L+550 | 1,893 | 1,873 | 1,883 | ||||||
| Apex Service Partners, LLC (Revolver) | 07/31/2025 | Personal, Food and Miscellaneous Services | 6.72 | % | 3M L+525 | 62 | 62 | 62 | ||||||
| Apex Service Partners, LLC (Revolver) (7) | 07/31/2025 | Personal, Food and Miscellaneous Services | — | — | 870 | — | (4 | ) | ||||||
| Applied Technical Services, LLC | 12/29/2026 | Environmental Services | 7.59 | % | 3M L+575 | 1,402 | 1,388 | 1,367 | ||||||
| Applied Technical Services, LLC (7) | 04/21/2023 | Environmental Services | — | — | 1,595 | — | (22 | ) | ||||||
| Applied Technical Services, LLC (Revolver) | 12/29/2026 | Environmental Services | 10.25 | % | 3M P+475 | 200 | 200 | 195 | ||||||
| Applied Technical Services, LLC (Revolver) (7) | 12/29/2026 | Environmental Services | — | — | 800 | — | (20 | ) | ||||||
| Arcfield Acquisition Corp. (Revolver) (7) | 03/07/2028 | Aerospace and Defense | — | — | 2,263 | — | (45 | ) | ||||||
| Berwick Industrial Park | 04/28/2023 | Buildings and Real Estate | 11.00 | % | — | 4,000 | 3,953 | 3,934 | ||||||
| Beta Plus Technologies, Inc. | 07/01/2029 | Business Services | 7.56 | % | SOFR+525 | 5,000 | 4,904 | 4,900 | ||||||
| Blackhawk Industrial Distribution, Inc. | 09/17/2024 | Distribution | 8.69 | % | 3M L+500 | 1,175 | 1,160 | 1,149 | ||||||
| Blackhawk Industrial Distribution, Inc.(7) | 09/17/2024 | Distribution | — | — | 4,043 | — | (51 | ) | ||||||
| Blackhawk Industrial Distribution, Inc. (Revolver) | 09/17/2024 | Distribution | 8.69 | % | 3M L+500 | 686 | 686 | 667 | ||||||
| Blackhawk Industrial Distribution, Inc. (Revolver) (7) | 09/17/2024 | Distribution | — | — | 2,746 | — | (77 | ) | ||||||
| Broder Bros., Co. | 12/02/2022 | Consumer Products | 7.39 | % | 3M L+600 | 10,096 | 10,096 | 10,096 | ||||||
| Cartessa Aesthetics, LLC | 05/13/2028 | Distribution | 9.55 | % | 1M L+600 | 39,401 | 38,644 | 38,810 | ||||||
| Cartessa Aesthetics, LLC - (Revolver) | 05/13/2028 | Distribution | 9.55 | % | 1M L+600 | 1,265 | 1,265 | 1,246 | ||||||
| Cartessa Aesthetics, LLC - (Revolver) (7) | 05/13/2028 | Distribution | — | — | 2,297 | — | (34 | ) | ||||||
| CF512, Inc. | 08/20/2026 | Media | 9.30 | % | 3M L+600 | 6,720 | 6,630 | 6,619 | ||||||
| CF512, Inc.(Revolver) (7) | 08/20/2026 | Media | — | — | 909 | — | (14 | ) | ||||||
| Compex Legal Services, Inc. | 02/09/2026 | Business Services | 7.48 | % | 3M L+525 | 853 | 843 | 853 | ||||||
| Compex Legal Services, Inc. (Revolver) | 02/07/2025 | Business Services | 8.92 | % | 3M L+525 | 361 | 361 | 361 | ||||||
| Compex Legal Services, Inc. (Revolver) (7) | 02/07/2025 | Business Services | — | — | 295 | — | — | |||||||
| Connatix Buyer, Inc. (7) | 01/13/2023 | Media | — | — | 3,158 | — | (47 | ) | ||||||
| Connatix Buyer, Inc. (Revolver) (7) | 07/13/2027 | Media | — | — | 1,859 | — | (46 | ) | ||||||
| Crane 1 Services, Inc. | 08/16/2027 | Personal, Food and Miscellaneous Services | 8.40 | % | 3M L+575 | 2,606 | 2,577 | 2,580 | ||||||
| Crane 1 Services, Inc. (Revolver) | 08/16/2027 | Personal, Food and Miscellaneous Services | 8.87 | % | 1M L+575 | 194 | 194 | 192 | ||||||
| Crane 1 Services, Inc. (Revolver) (7) | 08/16/2027 | Personal, Food and Miscellaneous Services | — | — | 97 | — | (1 | ) | ||||||
| DermaRite Industries LLC | 06/30/2023 | Manufacturing / Basic Industries | 10.67 | % | 1M L+700 | 8,755 | 8,734 | 7,030 | ||||||
| Dr. Squatch, LLC | 08/31/2027 | Personal and Non-Durable Consumer Products | 9.17 | % | 3M L+600 | 12,930 | 12,742 | 12,736 | ||||||
| Dr. Squatch, LLC (7) | 08/27/2026 | Personal and Non-Durable Consumer Products | — | — | 2,000 | — | (10 | ) | ||||||
| Dr. Squatch, LLC (Revolver) | 08/31/2027 | Personal and Non-Durable Consumer Products | 8.95 | % | 1M L+600 | 775 | 775 | 764 | ||||||
| Dr. Squatch, LLC (Revolver) (7) | 08/31/2027 | Personal and Non-Durable Consumer Products | — | — | 1,551 | — | (23 | ) | ||||||
| DRS Holdings III, Inc. (Revolver) (7) | 11/03/2025 | Consumer Products | — | — | 1,783 | — | (57 | ) | ||||||
| ECL Entertainment, LLC | 05/01/2028 | Hotels, Motels, Inns and Gaming | 10.62 | % | 1M L+750 | 19,156 | 19,019 | 18,869 | ||||||
| ECM Industries, LLC (Revolver) | 12/23/2025 | Electronics | 7.93 | % | 3M L+475 | 291 | 291 | 277 | ||||||
| ECM Industries, LLC (Revolver) (7) | 12/23/2025 | Electronics | — | — | 226 | — | (11 | ) | ||||||
| Exigo Intermediate II, LLC | 03/15/2027 | Business Services | 8.87 | % | 3M L+575 | 24,875 | 24,532 | 24,315 | ||||||
| Exigo Intermediate II, LLC (7) | 03/15/2024 | Business Services | — | — | 7,424 | — | (111 | ) | ||||||
| Exigo Intermediate II, LLC (Revolver) | 03/15/2027 | Business Services | 8.87 | % | 3M L+575 | 371 | 371 | 363 | ||||||
| Exigo Intermediate II, LLC (Revolver) (7) | 03/15/2027 | Business Services | — | — | 1,485 | — | (33 | ) | ||||||
| Fairbanks Morse Defense | 06/17/2028 | Aerospace and Defense | 7.00 | % | 3M L+475 | 738 | 735 | 682 | ||||||
| Gantech Acquisition Corp. | 05/14/2026 | Business Services | 9.37 | % | 1M L+625 | 16,809 | 16,548 | 16,305 | ||||||
| Gantech Acquisition Corp. (Revolver) | 05/14/2026 | Business Services | 9.37 | % | 1M L+625 | 132 | 133 | 129 | ||||||
| Gantech Acquisition Corp. (Revolver) (7) | 05/14/2026 | Business Services | — | — | 1,858 | — | (56 | ) | ||||||
| Graffiti Buyer, Inc. (7) | 08/10/2023 | Distribution | — | — | 892 | — | (20 | ) | ||||||
| Graffiti Buyer, Inc. (Revolver) | 08/10/2027 | Distribution | 9.16 | % | 3M L+575 | 372 | 372 | 357 | ||||||
| Graffiti Buyer, Inc. (Revolver) (7) | 08/10/2027 | Distribution | — | — | 397 | — | (16 | ) | ||||||
| Hancock Roofing and Construction L.L.C. (7) | 12/31/2022 | Insurance | — | — | 400 | — | (6 | ) | ||||||
| Hancock Roofing and Construction L.L.C. | 12/31/2026 | Insurance | 7.82 | % | 1M L+500 | 270 | 270 | 266 | ||||||
| Hancock Roofing and Construction L.L.C. (Revolver) (7) | 12/31/2026 | Insurance | — | — | 480 | — | (7 | ) | ||||||
| Holdco Sands Intermediate, LLC | 11/23/2028 | Aerospace and Defense | 10.17 | % | 3M L+600 | 1,918 | 1,883 | 1,879 | ||||||
| Holdco Sands Intermediate, LLC (Revolver) (7) | 11/23/2027 | Aerospace and Defense | — | — | 3,941 | — | (79 | ) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2022
(In thousands, except share data)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| HV Watterson Holdings, LLC | 12/17/2026 | Business Services | 9.67 | % | 1M L+600 | 281 | $ | 279 | $ | 271 | ||||
| HV Watterson Holdings, LLC (7) | 12/17/2026 | Business Services | — | — | 2,219 | — | (61 | ) | ||||||
| HV Watterson Holdings, LLC - (Revolver) | 12/17/2026 | Business Services | 9.63 | % | 3M L+600 | 200 | 200 | 193 | ||||||
| HV Watterson Holdings, LLC - (Revolver)(7) | 12/17/2026 | Business Services | — | — | 1,050 | — | (37 | ) | ||||||
| HW Holdco, LLC | 12/10/2024 | Media | 6.00 | % | 3M L+500 | 10,188 | 10,077 | 10,061 | ||||||
| HW Holdco, LLC (7) | 12/10/2024 | Media | — | — | 3,049 | — | (8 | ) | ||||||
| HW Holdco, LLC (Revolver) (7) | 12/10/2024 | Media | — | — | 3,387 | — | (42 | ) | ||||||
| Icon Partners III, LP | 05/11/2028 | Auto Sector | 7.55 | % | 3M L+475 | 995 | 834 | 727 | ||||||
| IDC Infusion Services, Inc. | 12/30/2026 | Healthcare, Education and Childcare | 10.70 | % | 3M L+600 | 3,685 | 3,576 | 3,574 | ||||||
| IDC Infusion Services, Inc. (Revolver) (7) | 12/30/2026 | Healthcare, Education and Childcare | — | — | 4,167 | — | (187 | ) | ||||||
| IG Investments Holdings, LLC (Revolver) (7) | 09/22/2027 | Business Services | — | — | 477 | — | (5 | ) | ||||||
| Imagine Acquisitionco, LLC (7) | 11/15/2027 | Business Services | — | — | 2,341 | — | (35 | ) | ||||||
| Imagine Acquisitionco, LLC (Revolver) (7) | 11/15/2027 | Business Services | — | — | 1,685 | — | (42 | ) | ||||||
| Inception Fertility Ventures, LLC | 12/07/2023 | Healthcare, Education and Childcare | 10.18 | % | 3M L+715 | 20,506 | 20,239 | 20,301 | ||||||
| Infolinks Media Buyco, LLC (7) | 11/01/2023 | Media | — | — | 2,372 | — | 24 | |||||||
| Integrity Marketing Acquisition, LLC | 08/27/2025 | Insurance | 7.83 | % | 3M L+550 | 9,930 | 9,876 | 9,831 | ||||||
| ITI Holdings, Inc. | 03/03/2028 | Business Services | 8.67 | % | 3M L+550 | 8,927 | 8,784 | 8,749 | ||||||
| ITI Holdings, Inc. (Revolver) | 03/03/2028 | Business Services | 8.25 | % | 3M L+550 | 298 | 298 | 292 | ||||||
| ITI Holdings, Inc. (Revolver) (7) | 03/03/2028 | Business Services | — | — | 1,192 | — | (24 | ) | ||||||
| K2 Pure Solutions NoCal, L.P. | 12/20/2023 | Chemicals, Plastics and Rubber | 11.12 | % | 1M L+800 | 11,678 | 11,629 | 11,678 | ||||||
| K2 Pure Solutions NoCal, L.P. (Revolver) (7) | 12/20/2023 | Chemicals, Plastics and Rubber | — | — | 1,938 | — | — | |||||||
| Kinetic Purchaser, LLC | 11/10/2027 | Consumer Products | 9.67 | % | 3M L+600 | 24,341 | 23,807 | 23,855 | ||||||
| Kinetic Purchaser, LLC (Revolver) | 11/10/2026 | Consumer Products | 9.67 | % | 3M L+600 | 4,854 | 4,854 | 4,757 | ||||||
| Lash OpCo, LLC | 02/18/2027 | Consumer Products | 11.78 | % | 1M L+700 | 2,828 | 2,774 | 2,771 | ||||||
| Lash OpCo, LLC (Revolver) | 08/16/2026 | Consumer Products | 9.38 | % | 1M L+700 | 568 | 568 | 556 | ||||||
| Lash OpCo, LLC (Revolver) (7) | 08/16/2026 | Consumer Products | — | — | 1,252 | — | (25 | ) | ||||||
| LAV Gear Holdings, Inc. | 10/31/2024 | Leisure, Amusement, Motion Pictures, Entertainment | 9.95 | % | 1M L+750 | 2,061 | 2,036 | 2,013 | ||||||
| (PIK 5.50%) | ||||||||||||||
| Ledge Lounger, Inc. | 11/09/2026 | Consumer Products | 9.92 | % | 3M L+625 | 9,177 | 9,021 | 9,040 | ||||||
| Ledge Lounger, Inc. (Revolver) (7) | 11/09/2026 | Consumer Products | — | — | 1,933 | — | (29 | ) | ||||||
| Lightspeed Buyer Inc. | 02/03/2026 | Healthcare, Education and Childcare | 8.87 | % | 1M L+575 | 2,220 | 2,205 | 2,148 | ||||||
| Lightspeed Buyer Inc. (Revolver) | 02/03/2026 | Healthcare, Education and Childcare | 8.87 | % | 1M L+575 | 505 | 505 | 489 | ||||||
| Lightspeed Buyer Inc. (Revolver) (7) | 02/03/2026 | Healthcare, Education and Childcare | — | — | 661 | — | (21 | ) | ||||||
| Limerick Town Cener, LLC | 09/27/2023 | Real Estate | 12.50 | % | — | 3,000 | 2,970 | 2,970 | ||||||
| LSF9 Atlantis Holdings, LLC | 03/31/2029 | Retail | 9.37 | % | SOFR+725 | 6,000 | 5,772 | 5,685 | ||||||
| Mars Acquisition Holdings Corp. (Revolver)(7) | 05/14/2026 | Media | — | — | 806 | — | (4 | ) | ||||||
| MBS Holdings, Inc. (Revolver) (7) | 04/16/2027 | Telecommunications | — | — | 694 | — | (7 | ) | ||||||
| MDI Buyer, Inc. | 07/25/2028 | Chemicals, Plastics and Rubber | 8.98 | % | 3M L+600 | 14,400 | 14,117 | 14,112 | ||||||
| MDI Buyer, Inc. Term Loan (7) | 07/25/2028 | Chemicals, Plastics and Rubber | — | — | 5,196 | — | (52 | ) | ||||||
| MDI Buyer, Inc. (Revolver) (7) | 07/25/2028 | Chemicals, Plastics and Rubber | — | — | 2,227 | — | (22 | ) | ||||||
| Meadowlark Acquirer, LLC | 12/10/2027 | Business Services | 9.17 | % | 3M L+550 | 1,320 | 1,307 | 1,307 | ||||||
| Meadowlark Acquirer, LLC Term Loan I (7) | 12/10/2027 | Business Services | — | — | 1,676 | — | — | |||||||
| Meadowlark Acquirer, LLC Term Loan II (7) | 12/10/2027 | Business Services | — | — | 8,922 | — | — | |||||||
| Meadowlark Acquirer, LLC (Revolver) (7) | 12/10/2027 | Business Services | — | — | 1,685 | — | (17 | ) | ||||||
| Municipal Emergency Services, Inc. | 09/28/2027 | Distribution | 8.67 | % | 3M L+500 | 703 | 697 | 663 | ||||||
| Municipal Emergency Services, Inc. (7) | 09/28/2027 | Distribution | — | — | 1,175 | — | (56 | ) | ||||||
| Municipal Emergency Services, Inc. (Revolver) | 09/28/2027 | Distribution | 7.25 | % | 3M L+500 | 282 | 282 | 266 | ||||||
| Municipal Emergency Services, Inc. (Revolver) (7) | 09/28/2027 | Distribution | — | — | 1,598 | — | (93 | ) | ||||||
| NBH Group LLC (Revolver) (7) | 08/19/2026 | Healthcare, Education and Childcare | — | — | 1,163 | — | — | |||||||
| Neptune Flood Incorporated | 10/14/2026 | Financial Services | 7.10 | % | 1M L+525 | 4,379 | 4,352 | 4,423 | ||||||
| OIS Management Services, LLC (Revolver) (7) | 07/09/2026 | Healthcare, Education and Childcare | — | — | 333 | — | — | |||||||
| One Stop Mailing, LLC | 05/07/2027 | Cargo Transport | 8.77 | % | 3M L+625 | 7,008 | 6,889 | 6,798 | ||||||
| ORL Acquisition, Inc. | 09/03/2027 | Business Services | 8.92 | % | 3M L+525 | 4,454 | 4,378 | 4,454 | ||||||
| ORL Acquisition, Inc. (Revolver) (7) | 09/03/2027 | Business Services | — | — | 597 | — | — | |||||||
| Ox Two, LLC | 05/18/2026 | Building Materials | 9.81 | % | 1M L+700 | 15,391 | 15,189 | 15,083 | ||||||
| Ox Two, LLC (Revolver) | 05/18/2026 | Building Materials | 9.81 | % | 3M L+700 | 1,774 | 1,774 | 1,739 | ||||||
| Ox Two, LLC (Revolver) (7) | 05/18/2026 | Building Materials | — | — | 645 | — | (13 | ) | ||||||
| PL Acquisitionco, LLC (Revolver) (7) | 11/09/2027 | Retail | — | — | 3,236 | — | (81 | ) | ||||||
| PRA Events, Inc. | 08/07/2025 | Business Services | 14.17 | % | 3M L+1,050 | 24,907 | 21,694 | 24,907 | ||||||
| (PIK 10.5%) | ||||||||||||||
| PRA Events, Inc. (Revolver) (7) | 08/07/2025 | Business Services | — | 3M L+1,050 | 2,000 | — | — | |||||||
| Pragmatic Institute, LLC | 07/06/2028 | Business Services | 9.30 | % | 3M L+575 | 35,340 | 34,826 | 34,987 | ||||||
| Pragmatic Institute, LLC Term Loan (7) | 07/06/2028 | Business Services | — | — | 7,193 | — | — | |||||||
| Pragmatic Institute, LL (Revolver) | 07/06/2028 | Business Services | 9.30 | % | 3M L+575 | 959 | 959 | 949 | ||||||
| Pragmatic Institute, LL (Revolver) (7) | 07/06/2028 | Business Services | — | — | 3,836 | — | (38 | ) | ||||||
| Quantic Electronics, LLC | 11/19/2026 | Aerospace and Defense | 8.00 | % | 1M L+625 | 679 | 673 | 666 | ||||||
| Quantic Electronics, LLC (Revolver) | 11/19/2026 | Aerospace and Defense | 9.51 | % | 3M L+600 | 211 | 211 | 207 | ||||||
| Quantic Electronics, LLC (Revolver) (7) | 11/19/2026 | Aerospace and Defense | — | — | 317 | — | (6 | ) | ||||||
| Questex, LLC | 09/09/2024 | Media | 7.45 | % | 3M L+500 | 21,600 | 21,436 | 21,168 | ||||||
| Questex, LLC (Revolver) (7) | 09/09/2024 | Media | — | — | 3,590 | — | (72 | ) | ||||||
| Radius Aerospace, Inc. (Revolver) | 03/31/2025 | Aerospace and Defense | 8.28 | % | 3M L+575 | 891 | 891 | 877 | ||||||
| Radius Aerospace, Inc. (Revolver) (7) | 03/31/2025 | Aerospace and Defense | — | — | 1,336 | — | (20 | ) | ||||||
| Rancho Health MSO, Inc. (7) | 12/18/2025 | Healthcare, Education and Childcare | — | — | 1,050 | — | — | |||||||
| Rancho Health MSO, Inc. (Revolver) (7) | 12/18/2025 | Healthcare, Education and Childcare | — | — | 525 | — | — | |||||||
| Reception Purchaser, LLC | 02/28/2028 | Transportation | 9.13 | % | SOFR+600 | 5,970 | 5,885 | 5,701 | ||||||
| Recteq, LLC (Revolver) | 01/29/2026 | Consumer Products | 9.92 | % | 1M L+600 | 313 | 313 | 302 | ||||||
| Recteq, LLC (Revolver) (7) | 01/29/2026 | Consumer Products | — | — | 814 | — | (28 | ) |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2022
(In thousands, except share data)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Research Now Group, Inc. and Dynata, LLC | 12/20/2024 | Business Services | 8.84 | % | 3M L+550 | 126 | $ | 126 | $ | 113 | |||||
| Riverpoint Medical, LLC (Revolver) (7) | 06/20/2025 | Healthcare, Education and Childcare | — | — | 364 | — | (9 | ) | |||||||
| Riverside Assessments, LLC | 03/10/2025 | Education | 8.97 | % | 3M L+625 | 12,906 | 12,705 | 12,648 | |||||||
| Sales Benchmark Index LLC (Revolver) (7) | 01/03/2025 | Business Services | — | — | 732 | — | (7 | ) | |||||||
| Sargent & Greenleaf Inc. (Revolver) | 12/20/2024 | Electronics | 8.28 | % | 3M L+550 | 593 | 593 | 587 | |||||||
| Sargent & Greenleaf Inc. (Revolver) (7) | 12/20/2024 | Electronics | — | — | 5 | - | - | ||||||||
| Schlesinger Global, Inc. | 07/14/2025 | Business Services | 11.11 | % | 3M L+700 | 4,689 | 4,636 | 4,571 | |||||||
| Schlesinger Global, Inc. (Revolver) | 07/14/2025 | Business Services | 9.09 | % | 3M L+600 | 30 | 30 | 30 | |||||||
| (PIK 0.5%) | |||||||||||||||
| Schlesinger Global, Inc. (Revolver)(7) | 07/14/2025 | Business Services | — | — | 8 | — | — | ||||||||
| Seaway Buyer, LLC | 06/13/2029 | Chemicals, Plastics and Rubber | 9.70 | % | 1M L+575 | 4,800 | 4,730 | 4,728 | |||||||
| Seaway Buyer, LLC (Revolver)(7) | 06/13/2029 | Chemicals, Plastics and Rubber | — | — | 3,126 | — | (47 | ) | |||||||
| Shiftkey, LLC | 06/21/2027 | Business Services | 9.56 | % | 1M L+575 | 17,955 | 17,784 | 17,722 | |||||||
| Sigma Defense Systems, LLC | 12/18/2025 | Telecommunications | 12.17 | % | 1M L+850 | 31,680 | 31,004 | 31,047 | |||||||
| Sigma Defense Systems, LLC (Revolver) | 12/18/2025 | Telecommunications | 12.17 | % | 1M L+850 | 1,131 | 1,131 | 1,108 | |||||||
| Sigma Defense Systems, LLC (Revolver) (7) | 12/18/2025 | Telecommunications | — | — | 1,845 | — | (37 | ) | |||||||
| Signature Systems Holding Company (Revolver) (7) | 05/03/2024 | Chemicals, Plastics and Rubber | — | — | 2,016 | — | (15 | ) | |||||||
| Solutionreach, Inc. (Revolver) (7) | 01/17/2024 | Communications | — | — | 1,665 | — | (40 | ) | |||||||
| Spear Education, LLC | 02/26/2025 | Education | 9.42 | % | 3M L+575 | 12,018 | 11,947 | 12,018 | |||||||
| Spendmend Holdings LLC | 03/01/2028 | Business Services | 8.63 | % | 1M L+575 | 9,705 | 9,581 | 9,433 | |||||||
| Spendmend Holdings LLC (7) | 03/01/2023 | Business Services | — | — | 2,784 | — | (57 | ) | |||||||
| Spendmend Holdings LLC - Funded Revolver | 03/01/2028 | Business Services | 8.63 | % | 3M L+575 | 187 | 187 | 182 | |||||||
| Spendmend Holdings LLC - Unfunded Revolver (7) | 03/01/2028 | Business Services | — | — | 1,215 | — | (34 | ) | |||||||
| System Planning and Analysis, Inc. - (Revolver) (7) <br>(f/k/a Management Consulting & Research, LLC) | 08/16/2027 | Aerospace and Defense | — | — | 2,925 | — | (47 | ) | |||||||
| The Bluebird Group LLC | 07/27/2026 | Business Services | 10.67 | % | 3M L+700 | 4,884 | 4,796 | 4,933 | |||||||
| The Bluebird Group LLC (Revolver) (7) | 07/27/2026 | Business Services | — | — | 734 | — | 7 | ||||||||
| The Vertex Companies, LLC | 08/30/2027 | Business Services | 8.18 | % | 3M L+550 | 1,754 | 1,737 | 1,745 | |||||||
| The Vertex Companies, LLC (7) | 08/30/2027 | Business Services | — | — | 466 | — | 2 | ||||||||
| The Vertex Companies, LLC (Revolver) | 08/30/2027 | Business Services | 8.26 | % | 3M L+550 | 148 | 148 | 147 | |||||||
| The Vertex Companies, LLC (Revolver) (7) | 08/30/2027 | Business Services | — | — | 592 | — | (3 | ) | |||||||
| TVC Enterprises, LLC | 03/26/2026 | Transportation | 8.87 | % | 1M L+600 | 12,864 | 12,626 | 12,543 | |||||||
| TVC Enterprises, LLC (Revolver) (7) | 03/26/2026 | Transportation | — | — | 1,370 | — | (34 | ) | |||||||
| TWS Acquisition Corporation | 06/16/2025 | Education | 8.76 | % | 1M L+625 | 1,143 | 1,143 | 1,137 | |||||||
| TWS Acquisition Corporation (Revolver) (7) | 06/16/2025 | Education | — | — | 1,644 | — | (8 | ) | |||||||
| Tyto Athene, LLC (Revolver) (7) | 04/01/2026 | Aerospace and Defense | — | — | 364 | — | (26 | ) | |||||||
| Unique Indoor Comfort, LLC | 05/24/2027 | Home and Office Furnishings | 8.95 | % | 1M L+525 | 27,233 | 26,904 | 26,634 | |||||||
| Unique Indoor Comfort, LLC (7) | 05/24/2027 | Home and Office Furnishings | — | — | 16,140 | — | (194 | ) | |||||||
| Unique Indoor Comfort, LLC (Revolver) (7) | 05/24/2027 | Home and Office Furnishings | — | — | 3,000 | — | (66 | ) | |||||||
| Walker Edison Furniture Company LLC | 03/31/2027 | Home and Office Furnishings | 12.42 | % | 3M L+875 | 25,368 | 24,881 | 16,946 | |||||||
| Wildcat Buyerco, Inc. | 02/27/2026 | Electronics | 9.09 | % | 3M L+575 | 3,831 | 3,771 | 3,716 | |||||||
| Wildcat Buyerco, Inc. (Revolver) (7) | 02/27/2026 | Electronics | — | — | 574 | — | (41 | ) | |||||||
| Zips Car Wash, LLC | 03/01/2024 | Auto Sector | 10.13 | % | 3M L+725 | 2,627 | 2,608 | 2,562 | |||||||
| Total First Lien Secured Debt | 599,263 | 588,267 | |||||||||||||
| Second Lien Secured Debt—22.2% of Net Assets | |||||||||||||||
| Atlas Purchaser, Inc | 05/07/2029 | Telecommunications | 11.19 | % | 3M L+900 | 17,000 | 16,551 | 14,909 | |||||||
| Best Practice Associates LLC | 06/29/2027 | Aerospace and Defense | 12.67 | % | 3M L+900 | 17,825 | 17,506 | 17,290 | |||||||
| Burgess Point Purchaser Corporation | 07/28/2030 | Auto Sector | 12.16 | % | 3M L+900 | 8,000 | 7,752 | 7,680 | |||||||
| Data Axle, Inc. | 04/03/2024 | Other Media | 12.92 | % | 3M L+925 | 20,400 | 20,288 | 20,196 | |||||||
| ENC Parent Corporation | 08/19/2029 | Business Services | 11.17 | % | 3M L+750 | 7,500 | 7,432 | 7,125 | |||||||
| Halo Buyer, Inc. | 07/06/2026 | Consumer Products | 11.37 | % | 1M L+825 | 32,500 | 32,164 | 31,769 | |||||||
| Inventus Power, Inc. | 09/29/2024 | Electronics | 12.17 | % | 3M L+850 | 16,593 | 16,387 | 16,344 | |||||||
| QuantiTech LLC | 02/04/2027 | Aerospace and Defense | 12.68 | % | 3M L+1,000 | 150 | 148 | 148 | |||||||
| VT Topco, Inc. | 08/17/2026 | Business Services | 9.87 | % | 3M L+675 | 15,000 | 14,932 | 14,475 | |||||||
| Total Second Lien Secured Debt | 133,160 | 129,936 | |||||||||||||
| Subordinated Debt/Corporate Notes—9.1% of Net Assets | |||||||||||||||
| Express Wash Acquisition Company, LLC | 01/15/2029 | Auto Sector | 15.31 | % | 3M L+1,150 | 21,000 | 20,278 | 20,359 | |||||||
| Flock Financial, LLC | 05/26/2027 | Financial Services | 12.50 | % | — | 34,000 | 33,190 | 32,895 | |||||||
| Total Subordinated Debt/Corporate Notes | 53,468 | 53,254 | |||||||||||||
| Preferred Equity/Partnership Interests—1.3% of Net Assets (6) | |||||||||||||||
| Ad.net Holdings, Inc. (9) | — | Media | — | — | 2,400 | 240 | 267 | ||||||||
| AH Newco Equityholdings, LLC | — | Healthcare, Education and Childcare | 6.00 | % | — | 211 | 500 | 2,127 | |||||||
| Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9) | — | Media | — | — | 1,135 | 1,135 | 1,427 | ||||||||
| Imagine Topco, LP | — | Business Services | 8.00 | % | — | 743,826 | 744 | 704 | |||||||
| Mars Intermediate Holdings II, Inc (9) | — | Media | — | — | 414 | 414 | 484 | ||||||||
| NXOF Holdings, Inc. (Tyto Athene, LLC) | — | Aerospace and Defense | — | — | 160 | 160 | 227 | ||||||||
| ORL Holdco, Inc. | — | Business Services | — | — | 575 | 57 | 62 | ||||||||
| Signature CR Intermediate Holdco, Inc. | — | Chemicals, Plastics and Rubber | 12.00 | % | — | 1,527 | 1,527 | 1,932 | |||||||
| TPC Holding Company, LP (8),(11) | — | Food | — | — | 219 | 219 | 62 | ||||||||
| TWD Parent Holdings, LLC | — | Business Services | — | — | 30 | 30 | 33 | ||||||||
| (The Vertex Companies, LLC) | |||||||||||||||
| Total Preferred Equity/Partnership Interests | 5,026 | 7,325 | |||||||||||||
| Common Equity/Partnership Interests/Warrants—26.2% of Net Assets (6) | |||||||||||||||
| Ad.net Holdings, Inc. (9) | — | Media | — | — | 2,667 | 27 | 35 | ||||||||
| Affinion Group Holdings, Inc. (Warrants) | 04/10/2024 | Consumer Products | — | — | 77,190 | 2,126 | — | ||||||||
| AG Investco LP (9) | — | Business Services | — | — | 805,164 | 805 | 1,127 | ||||||||
| AG Investco LP (7), (9) | — | Business Services | — | — | 194,836 | — | — | ||||||||
| Altamira Intermediate Company II, Inc. | — | Aerospace and Defense | — | — | 125,000 | 125 | 79 |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2022
(In thousands, except share data)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AMCSI Crash Co-Invest, LP | — | Auto Sector | — | — | 2,419,200 | $ | 2,419 | $ | 2,470 | |||||
| AMCSI Crash Co-Invest, LP (7) | — | Auto Sector | — | — | 580,800 | — | — | |||||||
| Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9) | — | Media | — | — | 1,135 | — | 270 | |||||||
| Athletico Holdings, LLC | — | Healthcare, Education and Childcare | — | — | 9,357 | 10,000 | 9,516 | |||||||
| Atlas Investment Aggregator, LLC (9) | — | Telecommunications | — | — | 1,700,000 | 1,700 | 1,219 | |||||||
| Burgess Point Holdings, LP | — | Auto Sector | — | — | 680 | 680 | 690 | |||||||
| Cartessa Aesthetics, LLC | — | Distribution | — | — | 3,562,500 | 3,563 | 3,716 | |||||||
| CI (Allied) Investment Holdings, LLC | — | Business Services | — | — | 120,962 | 1,243 | 1,651 | |||||||
| (PRA Events, Inc.) (9) | ||||||||||||||
| Connatix Parent, LLC | — | Media | — | — | 57,416 | 632 | 689 | |||||||
| Cowboy Parent LLC | — | Distribution | — | — | 26,360 | 2,782 | 4,011 | |||||||
| (Blackhawk Industrial Distribution, Inc.) | ||||||||||||||
| Crane 1 Acquisition Parent Holdings, L.P. | — | Personal, Food and Miscellaneous Services | — | — | 113 | 104 | 122 | |||||||
| Delta InvestCo LP | — | Telecommunications | — | — | 698,889 | 684 | 1,425 | |||||||
| (Sigma Defense Systems, LLC) (9) | ||||||||||||||
| Delta InvestCo LP (7) | — | Telecommunications | — | — | 442,155 | — | — | |||||||
| (Sigma Defense Systems, LLC) (7), (9) | ||||||||||||||
| ECM Investors, LLC (9) | — | Electronics | — | — | 167,537 | 37 | 358 | |||||||
| eCommission Holding Corporation (11) | — | Financial Services | — | — | 80 | 1,005 | 1,391 | |||||||
| Exigo, LLC (9) | — | Business Services | — | — | 1,458,333 | 1,458 | 1,288 | |||||||
| Express Wash Topco, LLC | — | Auto Sector | — | — | 658,000 | 3,290 | 3,369 | |||||||
| FedHC InvestCo LP (9) | — | Aerospace and Defense | — | — | 14,186 | 478 | 1,441 | |||||||
| FedHC InvestCo LP (7),(9) | — | Aerospace and Defense | — | — | 6,384 | — | — | |||||||
| FedHC InvestCo II LP (9) | — | Aerospace and Defense | 20,357 | 2,290 | 2,253 | |||||||||
| Gauge Lash Coinvest LLC | — | Consumer Products | — | — | 889,376 | 137 | 4,208 | |||||||
| Gauge Schlesinger Coinvest, LLC | — | Business Services | — | — | 9 | 9 | 10 | |||||||
| Gauge TVC Coinvest, LLC | — | Transportation | — | — | 810,645 | — | 3,229 | |||||||
| (TVC Enterprises, LLC) | ||||||||||||||
| GCOM InvestCo LP (9) | — | Business Services | — | — | 2,434 | 1,003 | 587 | |||||||
| Go Dawgs Capital III, LP | — | Building Materials | — | — | 675,325 | 675 | 783 | |||||||
| (American Insulated Glass, LLC) (9) | ||||||||||||||
| Green Veracity Holdings, LP - Class A | — | Business Services | — | — | 15,000 | 1,500 | 5,700 | |||||||
| (VT Topco, Inc.) | ||||||||||||||
| Hancock Claims Consultants Investors, LLC (9) | — | Insurance | — | — | 450,000 | 450 | 477 | |||||||
| HV Watterson Holdings, LLC | — | Business Services | — | — | 1,600,000 | 1,600 | 1,387 | |||||||
| Icon Partners V C, L.P. | — | Business Services | — | — | 1,111,111 | 1,111 | 1,194 | |||||||
| Icon Partners V C, L.P. (7),(9) | — | Business Services | — | — | 388,889 | — | — | |||||||
| Imagine Topco, LP | — | Business Services | — | — | 743,826 | — | — | |||||||
| Infogroup Parent Holdings, Inc. | — | Other Media | — | — | 181,495 | 2,040 | 3,270 | |||||||
| (Data Axle, Inc.) | ||||||||||||||
| Ironclad Holdco, LLC | — | Environmental Services | — | — | 4,566 | 450 | 592 | |||||||
| (Applied Technical Services, LLC) (9) | ||||||||||||||
| ITC Infusion Co-invest, LP | — | Healthcare, Education and Childcare | — | — | 113,839 | 1,138 | 1,199 | |||||||
| ITC Rumba, LLC | — | Healthcare, Education and Childcare | — | — | 375,675 | 8 | 42,031 | |||||||
| (Cano Health, LLC) (9) | ||||||||||||||
| JWC-WE Holdings, L.P. | — | Home and Office Furnishings | — | — | 2,688 | 783 | — | |||||||
| (Walker Edison Furniture Company LLC) (9) | ||||||||||||||
| Kentucky Racing Holdco, LLC (Warrants) | — | Hotels, Motels, Inns and Gaming | — | — | 161,252 | — | 1,774 | |||||||
| Kinetic Purchaser, LLC | — | Consumer Products | — | — | 1,308,814 | 1,309 | 1,854 | |||||||
| KL Stockton Co-Invest LP | — | Personal, Food and Miscellaneous Services | — | — | 382,353 | 382 | 643 | |||||||
| (Any Hour Services) (9) | ||||||||||||||
| Lariat ecoserv Co-Invest Holdings, LLC (9) | — | Environmental Services | — | — | 363,656 | 180 | 1,376 | |||||||
| Lightspeed Investment Holdco LLC | — | Healthcare, Education and Childcare | — | — | 273,143 | 273 | 373 | |||||||
| Mars Intermidiate Holdings II, Inc. (9) | — | Media | — | — | 414 | — | 126 | |||||||
| MDI Aggregator, LP | — | Chemicals, Plastics and Rubber | — | — | 1,925,990 | 1,930 | 1,926 | |||||||
| Meadowlark Title, LLC (9) | — | Business Services | — | — | 815,385 | 815 | 897 | |||||||
| Municipal Emergency Services, Inc. | — | Distribution | — | — | 3,920,145 | 3,984 | 2,990 | |||||||
| NEPRT Parent Holdings, LLC | — | Consumer Products | — | — | 1,299 | 1,261 | 243 | |||||||
| (Recteq, LLC) (9) | ||||||||||||||
| North Haven Saints Equity Holdings, LP | — | Business Services | — | — | 351,553 | 352 | 373 | |||||||
| NXOF Holdings, Inc. | — | Aerospace and Defense | — | — | 3,261 | 3 | 68 | |||||||
| (Tyto Athene, LLC) | ||||||||||||||
| OceanSound Discovery Equity, LP | — | Aerospace and Defense | — | — | 98,286 | 979 | 1,651 | |||||||
| (Holdco Sands Intermediate, LLC) (9) | ||||||||||||||
| OHCP V BC COI, L.P. | — | Distribution | — | — | 446,250 | 446 | 382 | |||||||
| OHCP V BC COI, L.P. (7),(9) | — | Distribution | — | — | 303,750 | — | (44 | ) | ||||||
| Oral Surgery (ITC) Holdings, LLC (9) | — | Healthcare, Education and Childcare | — | — | 2,904 | 63 | 173 | |||||||
| ORL Holdco, Inc. | — | Business Services | — | — | 638 | 6 | 113 | |||||||
| PennantPark-TSO Senior Loan Fund II, LP | — | Financial Services | — | — | 15,038,871 | 15,039 | 15,571 | |||||||
| Pink Lily Holdco, LLC (9) | — | Retail | — | — | 1,044 | 1,044 | 550 | |||||||
| Pragmatic Institute, LLC | — | Business Services | — | — | 1,918,047 | 1,918 | 1,918 | |||||||
| QuantiTech InvestCo LP (9) | — | Aerospace and Defense | — | — | 712 | 68 | 352 | |||||||
| QuantiTech InvestCo LP (7),(9) | — | Aerospace and Defense | — | — | 955 | — | — | |||||||
| QuantiTech InvestCo II LP (9) | — | Aerospace and Defense | — | — | 40 | 25 | 24 | |||||||
| RFMG Parent, LP | — | Healthcare, Education and Childcare | — | — | 1,050,000 | 1,050 | 1,090 | |||||||
| (Rancho Health MSO, Inc.) | ||||||||||||||
| SBI Holdings Investments LLC | — | Business Services | — | — | 36,585 | 366 | 359 | |||||||
| (Sales Benchmark Index LLC) | ||||||||||||||
| Seaway Topco, LP | — | Chemicals, Plastics and Rubber | — | — | 2,981 | 2,981 | 2,981 | |||||||
| Signature CR Intermediate Holdco, Inc. | — | Chemicals, Plastics and Rubber | — | — | 80 | 80 | — | |||||||
| SP L2 Holdings, LLC | — | Consumer Products | — | — | 881,966 | 882 | 913 |
PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)
SEPTEMBER 30, 2022
(In thousands, except share data)
| Issuer Name | Maturity / Expiration | Industry | Current<br> Coupon | Basis Point<br> Spread Above<br> Index (4) | Par /<br> Shares | Cost | Fair Value (3) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SSC Dominion Holdings, LLC | — | Electronics | — | — | 1,500 | $ | 1,500 | $ | 2,041 | ||||||
| Class A (US Dominion, Inc.) | |||||||||||||||
| SSC Dominion Holdings, LLC | — | Electronics | — | — | 1,500 | — | 4,389 | ||||||||
| Class B (US Dominion, Inc.) | |||||||||||||||
| StellPen Holdings, LLC | — | Media | — | — | 153,846 | 154 | 152 | ||||||||
| (CF512, Inc.) | |||||||||||||||
| TAC LifePort Holdings, LLC (9) | — | Aerospace and Defense | — | — | 232,558 | 233 | 296 | ||||||||
| Tower Arch Infolinks Media, LP (9) | — | Media | — | — | 531,293 | 511 | 896 | ||||||||
| Tower Arch Infolinks Media, LP (7), (9) | — | Media | — | — | 364,151 | — | — | ||||||||
| TPC Holding Company, LP (8). (11) | — | Food | — | — | 11,527 | 12 | — | ||||||||
| TWD Parent Holdings, LLC | — | Business Services | — | — | 608 | 1 | — | ||||||||
| (The Vertex Companies, LLC) | |||||||||||||||
| U.S. Well Services, Inc. - Class A (5), (11) | — | Oil and Gas | — | — | 60,057 | 3,022 | 304 | ||||||||
| UniVista Insurance (9) | — | Business Services | — | — | 400 | 382 | 454 | ||||||||
| WCP Ivyrehab QP CF Feeder, LP | — | Healthcare, Education and Childcare | — | — | 3,762,257 | 3,762 | 3,762 | ||||||||
| WCP Ivyrehab QP CF Feeder, LP - Unfunded (7) | — | Healthcare, Education and Childcare | — | — | 237,743 | — | — | ||||||||
| Wildcat Parent, LP | — | Electronics | — | — | 2,314 | 231 | 616 | ||||||||
| (Wildcat Buyerco, Inc.) | |||||||||||||||
| Total Common Equity/Partnership Interests/Warrants | 91,596 | 153,373 | |||||||||||||
| Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies | 882,513 | 932,155 | |||||||||||||
| Investments in Non-Controlled, Affiliated Portfolio Companies—5.9% of Net Assets (1), (2) | |||||||||||||||
| Preferred Equity/Partnership Interests—5.6% of Net Assets(6) | |||||||||||||||
| Cascade Environmental Holdings, LLC (9) | — | Environmental Services | — | — | 5,887,236 | 32,791 | 32,791 | ||||||||
| Total Preferred Equity/Partnership Interests | 32,791 | 32,791 | |||||||||||||
| Common Equity/Partnership Interests/Warrants—0.3% of Net Assets (6) | |||||||||||||||
| Cascade Environmental Holdings, LLC | — | Environmental Services | — | — | 7,444,347 | 2,852 | — | ||||||||
| JF Intermediate, LLC | — | Distribution | — | — | 19,687 | 1,969 | 1,969 | ||||||||
| Total Common Equity/Partnership Interests/Warrants | 4,821 | 1,969 | |||||||||||||
| Total Investments in Non-Controlled, Affiliated Portfolio Companies | 37,612 | 34,760 | |||||||||||||
| Investments in Controlled, Affiliated Portfolio Companies—44.3% of Net Assets (1), (2) | |||||||||||||||
| First Lien Secured Debt—7.3% of Net Assets | |||||||||||||||
| AKW Holdings Limited (8), (10), (11) | 03/13/2024 | Healthcare, Education and Childcare | 8.67 | % | 3M L+700 | £ | 38,250 | 52,792 | 42,698 | ||||||
| Total First Lien Secured Debt | 52,792 | 42,698 | |||||||||||||
| Second Lien Secured Debt—0% of Net Assets | |||||||||||||||
| Mailsouth Inc. | 04/23/2025 | Printing and Publishing | — | — | 12,846 | 12,383 | — | ||||||||
| Total Second Lien Secured Debt | 12,383 | — | |||||||||||||
| Subordinated Debt—15.0% of Net Assets | |||||||||||||||
| PennantPark Senior Loan Fund, LLC (11) | 07/31/2027 | Financial Services | 10.79 | % | 3M L+800 | 88,011 | 88,011 | 88,011 | |||||||
| Total Subordinated Debt | 88,011 | 88,011 | |||||||||||||
| Common Equity—22.0% of Net Assets (6) | |||||||||||||||
| AKW Holdings Limited (8), (10), (11) | — | Healthcare, Education and Childcare | — | — | £ | 950 | 132 | 3,297 | |||||||
| MSpark, LLC | — | Printing and Publishing | — | — | 51,151 | 16,516 | — | ||||||||
| PennantPark Senior Loan Fund, LLC | — | Financial Services | — | — | 49,298,789 | 49,362 | 51,098 | ||||||||
| RAM Energy Holdings LLC (9) | — | Energy and Utilities | — | — | 180,805 | 162,708 | 74,282 | ||||||||
| Total Common Equity | 228,718 | 128,677 | |||||||||||||
| Total Investments in Controlled, Affiliated Portfolio Companies | 381,904 | 259,386 | |||||||||||||
| Total Investments—209.4% of Net Assets | 1,302,029 | 1,226,301 | |||||||||||||
| Cash and Cash Equivalents—9.0% of Net Assets | |||||||||||||||
| BlackRock Federal FD Institutional 30 | 39,122 | 39,122 | |||||||||||||
| BNY Mellon Cash Reserve and Cash | 13,722 | 13,544 | |||||||||||||
| Total Cash and Cash Equivalents | 52,844 | 52,666 | |||||||||||||
| Total Investments and Cash Equivalents—218.4% of Net Assets | $ | 1,354,873 | $ | 1,278,967 | |||||||||||
| Liabilities in Excess of Other Assets—(118.4%) of Net Assets | (693,402 | ) | |||||||||||||
| Net Assets—100.0% | $ | 585,565 |
(1) 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.
(2) 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).
(3) Valued based on our accounting policy (See Note 2).
(4) Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable London Interbank Offered Rate, or LIBOR or “L,” the Euro Interbank Offered Rate, or EURIBOR or “E,” 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. LIBOR loans are typically indexed to a 30-day, 90-day or 180-day LIBOR rate (1M L, 3M L, or 6M L, respectively), and EURIBOR loans are typically indexed to a 90-day EURIBOR rate (3M E), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
(5) The security was not valued using significant unobservable inputs. The value of all other securities was determined using significant unobservable inputs (See Note 5).
(6) Non-income producing securities.
(7) 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.
(8) Non-U.S. company or principal place of business outside the United States.
(9) Investment is held through our Taxable Subsidiary (See Note 1).
(10) Par / Shares amount is denominated in British Pounds (£) as denoted.
(11) 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, 2022, qualifying assets represent 88% of the Company’s total assets and non-qualifying assets represent 12% of the Company’s total assets.