Published: 2024-02-07 00:00:00 ET

 

•]`

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

 

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2023

OR

 

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

 

FOR THE TRANSITION PERIOD FROM TO

COMMISSION FILE NUMBER: 814-00736

PENNANTPARK INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

MARYLAND		20-8250744
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1691 Michigan Avenue, Miami Beach, Florida		33139
(Address of principal executive offices)		(Zip Code)

 

(786) 297-9500

(Registrant’s Telephone Number, Including Area Code)

 

None

(Former name, former address and former fiscal year, if changed since last report)

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

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

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

Large accelerated filer		☐		Accelerated filer		☑
Non-accelerated filer		☐		Smaller reporting company		☐
Emerging growth company		☐

 

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

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

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of February 7, 2024 was 65,224,500.

 

 

 

---

 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2023

TABLE OF CONTENTS

 

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities as of December 31, 2023 (unaudited) and September 30, 2023		4
Consolidated Statements of Operations for the three months ended December 31, 2023 and 2022 (unaudited)		5
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2023 and 2022 (unaudited)		6
Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022 (unaudited)		7
Consolidated Schedules of Investments as of December 31, 2023 (unaudited) and September 30, 2023		8
Notes to Consolidated Financial Statements (unaudited)		21
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		38
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		40
Item 3. Quantitative and Qualitative Disclosures About Market Risk		53
Item 4. Controls and Procedures		53
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		54
Item 1A. Risk Factors		54
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		54
Item 3. Defaults Upon Senior Securities		55
Item 4. Mine Safety Disclosures		55
Item 5. Other Information		55
Item 6. Exhibits		56
SIGNATURES		57

 

2

---

 

PART I—CONSOLIDATED FINANCIAL INFORMATION

 

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where context suggest otherwise, the terms “Company,” “we,” “our” or “us” refers to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC Fund” refers collectively to our consolidated subsidiaries, PennantPark SBIC II LP, or SBIC II, and its general partner, PennantPark SBIC GP II, LLC; “Funding I” refers to PennantPark Investment Funding I, LLC, a wholly-owned subsidiary prior to deconsolidation on July 31, 2020; “Taxable Subsidiary” refers to PNNT Investment Holdings, LLC; “PSLF” refers to PennantPark Senior Loan Fund, LLC, an unconsolidated joint venture; “PTSF II” refers to PennantPark-TSO Senior Loan Fund II, LP, an unconsolidated limited partnership; “PennantPark Investment Advisers” or “Investment Adviser” refers to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refers to PennantPark Investment Administration, LLC; “SBA” refers to the Small Business Administration; “SBIC” refers to a small business investment company under the Small Business Investment Act of 1958, as amended; “BNP Credit Facility” refers to our revolving credit facility with BNP Paribas prior to deconsolidation of Funding I; “Truist Credit Facility” refers to our multi-currency, senior secured revolving credit facility with Truist Bank, as amended and restated; “2026 Notes” refers to our 4.50% Notes due May 2026; “2026 Notes-2” refers to our 4.00% Notes due November 2026; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 Act”; “SBCAA” refers to the Small Business Credit Availability Act; “Code” refers to the Internal Revenue Code of 1986, as amended; and “RIC” refers to a regulated investment company under the Code. References to our portfolio, our investments and our business include investments we make through SBIC II and other consolidated subsidiaries.

3

---

 

Item 1. Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(In thousands, except share and per share data)

 

		December 31, 2023				September 30, 2023
		(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$877,517 and $816,754, respectively)		$	879,245			$	830,808
Non-controlled, affiliated investments (amortized cost—$54,736 and $55,787, respectively)			40,829				54,771
Controlled, affiliated investments (amortized cost—$299,787 and $245,386, respectively)			290,684				216,068
Total investments (amortized cost—$1,232,040 and $1,117,927, respectively)			1,210,758				1,101,647
Cash and cash equivalents (cost—$36,850 and $38,784, respectively)			36,893				38,775
Interest receivable			9,884				6,820
Distribution receivable			5,381				5,079
Due from affiliates			181				—
Prepaid expenses and other assets			4,141				4,656
Total assets			1,267,238				1,156,977
Liabilities
Truist Credit Facility payable, at fair value (cost—$388,456 and $212,420, respectively)			385,016				206,940
2026 Notes payable, net (par— $150,000)			147,894				147,669
2026 Notes-2 payable, net (par— $165,000)			162,440				162,226
Payable for investment purchased			51,850				99,949
Distributions payable			4,566				13,697
Accounts payable and accrued expenses			4,323				6,754
Base management fee payable			4,004				3,915
Incentive fee payable			3,321				3,310
Interest payable on debt			3,125				6,231
Due to affiliates			1,557				4,099
Total liabilities			768,096				654,790
Commitments and contingencies (See Note 11)
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				746,466
Accumulated deficit			(247,389	)			(244,344	)
Total net assets		$	499,142			$	502,187
Total liabilities and net assets		$	1,267,238			$	1,156,977
Net asset value per share		$	7.65			$	7.70

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

 

		Three Months Ended December 31,
		2023				2022
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	21,068			$	22,231
Payment-in-kind			2				—
Dividend income			692				—
Other income			1,425				487
From non-controlled, affiliated investments:
Payment-in-kind			347				—
From controlled, affiliated investments:
Interest			5,481				2,858
Payment-in-kind			632				1,131
Dividend income			4,689				3,256
Total investment income			34,336				29,963
Expenses:
Interest and expenses on debt			9,557				9,729
Base management fee			4,004				4,602
Incentive fee			3,321				2,192
General and administrative expenses			1,214				841
Administrative services expenses			189				266
Expenses before provision for taxes			18,285				17,630
Provision for taxes on net investment income			393				2,000
Net expenses			18,678				19,630
Net investment income			15,658				10,333
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments			2,581				4,064
Non-controlled and controlled, affiliated investments			(750	)			—
Net realized gain (loss) on investments and debt			1,831				4,064
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments			(12,270	)			(50,517	)
Non-controlled and controlled, affiliated investments			7,324				(41,048	)
Provision for taxes on unrealized appreciation (depreciation) on investments			150				896
Debt appreciation (depreciation)			(2,040	)			4,378
Net change in unrealized appreciation (depreciation) on investments and debt			(6,836	)			(86,291	)
Net realized and unrealized gain (loss) from investments and debt			(5,005	)			(82,227	)
Net increase (decrease) in net assets resulting from operations			10,653				(71,894	)
Net increase (decrease) in net assets resulting from operations per common share		$	0.16			$	(1.10	)
Net investment income per common share		$	0.24			$	0.16

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

(In thousands)

 

		Three Months Ended December 31,
		2023				2022
Net increase (decrease) in net assets resulting from operations:
Net investment income		$	15,658			$	10,333
Net realized gain (loss) on investments and debt			1,831				4,064
Net change in unrealized appreciation (depreciation) on investments			(4,946	)			(91,565	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments			150				896
Net change in unrealized (appreciation) depreciation on debt			(2,040	)			4,378
Net increase (decrease) in net assets resulting from operations			10,653				(71,894	)
Distributions to stockholders:
Distribution of net investment income			(13,698	)			(10,762	)
Total distributios to stockholders			(13,698	)			(10,762	)
Net increase (decrease) in net assets			(3,045	)			(82,656	)
Net assets:
Beginning of period			502,187				585,565
End of period		$	499,142			$	502,909

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

		Three Months Ended December 31,
		2023				2022
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	10,653			$	(71,894	)
Adjustments to reconcile net increase (decrease) in net assets resulting from    operations to net cash provided by (used in) operating activities:
Net change in net unrealized (appreciation) depreciation on investments			4,946				91,565
Net change in unrealized appreciation (depreciation) on debt			2,040				(4,378	)
Net realized (gain) loss on investments and cash equivalents			(1,831	)			(4,064	)
Net accretion of discount and amortization of premium			(281	)			(822	)
Purchases of investments			(281,000	)			(86,182	)
Payment-in-kind income			(980	)			(1,131	)
Proceeds from dispositions of investments			170,753				30,620
Amortization of deferred financing costs			439				454
(Increase) decrease in:
Interest receivable			(3,064	)			(531	)
Receivables from investments sold			—				29,494
Distribution receivable			(302	)			(836	)
Due from affiliate			(181	)			—
Prepaid expenses and other assets			(235	)			—
Increase (decrease) in:
Due to affiliate			(2,542	)			43
Payable for investments purchased			(48,099	)			8,325
Interest payable on debt			(3,106	)			(2,973	)
Base management fee payable, net			89				(247	)
Incentive fee payable			11				2,192
Deferred tax liability			—				5,287
Accounts payable and accrued expenses			(2,431	)			(4,485	)
Net cash provided by (used in) operating activities			(155,121	)			(9,563	)
Cash flows from financing activities:
Distributions paid to stockholders			(22,828	)			(9,784	)
Borrowings under Truist Credit Facility			228,036				44,000
Repayments under Truist Credit Facility			(52,000	)			(49,000	)
Net cash provided by (used in) financing activities			153,208				(14,784	)
Net increase (decrease) in cash equivalents			(1,913	)			(24,347	)
Effect of exchange rate changes on cash			31				280
Cash and cash equivalents, beginning of period			38,775				54,775
Cash and cash equivalents, end of period		$	36,893			$	30,708
Supplemental disclosure of cash flow information:
Interest paid		$	12,224			$	12,248
Taxes paid		$	3,357			$	299

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration		Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Investments in Non-Controlled, Non-Affiliated Portfolio Companies—176.2% of Net Assets (1), (2)
First Lien Secured Debt—113.2% of Net Assets
A1 Garage Merger Sub, LLC		12/22/2028		Personal, Food and Miscellaneous Services			11.97	%		3M SOFR+660					5,131			$	5,065			$	5,106
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	)
ACP Avenu Buyer, LLC		10/02/2029		Business Services			11.64	%		3M SOFR+625					6,500				6,381				6,338
ACP Avenu Buyer, LLC - Unfunded Term Loan (7)		10/02/2029		Business Services			—				—				3,045				—				(34	)
ACP Avenu Buyer, LLC - Revolver (7)		10/02/2029		Business Services			—				—				1,218				—				(30	)
ACP Falcon Buyer, Inc. - Revolver (7)		08/01/2029		Business Services			—				—				2,533				—				(28	)
Ad.net Acquisition, LLC - Revolver		05/07/2026		Media			11.61	%		3M SOFR+626					222				222				221
Ad.net Acquisition, LLC - Revolver (7)		05/07/2026		Media			—				—				222				—				(1	)
Aeronix, Inc.		12/12/2028		Aerospace and Defense			10.88	%		3M SOFR+550					20,000				19,702				19,700
Aeronix, Inc. - Revolver (7)		12/12/2028		Aerospace and Defense			—				—				2,489				—				—
AFC Dell Holding Corp.		04/09/2027		Distribution			11.72	%		3M SOFR+640					2,294				2,263				2,263
AFC Dell Holding Corp. - Unfunded Term Loan		04/09/2027		Distribution			—				—				13,353				—				—
Anteriad, LLC (f/k/a MeritDirect, LLC)		05/23/2024		Media			12.00	%		3M SOFR+665					1,221				1,212				1,215
Anteriad, LLC (f/k/a MeritDirect, LLC) - Revolver (7)		05/23/2024		Media			—				—				1,612				—				(16	)
Any Hour Services		07/21/2027		Personal, Food and Miscellaneous Services			11.61	%		3M SOFR+585					3,015				3,011				2,985
Any Hour Services - Revolver (7)		07/21/2027		Personal, Food and Miscellaneous Services			—				—				1,147				—				(11	)
Applied Technical Services, LLC		12/29/2026		Environmental Services			11.25	%		3M SOFR+585					813				807				797
Applied Technical Services, LLC - Revolver		12/29/2026		Environmental Services			13.25	%		3M SOFR+475					575				575				563
Applied Technical Services, LLC - Revolver (7)		12/29/2026		Environmental Services			—				—				425				—				(9	)
Arcfield Acquisition Corp. - Revolver (7)		08/04/2028		Aerospace and Defense			—				—				3,521				—				(35	)
Berwick Industrial Park		05/02/2024		Buildings and Real Estate			11.50	%			—				4,000				4,033				3,956
Beta Plus Technologies, Inc.		07/01/2029		Business Services			11.10	%		3M SOFR+575					4,938				4,860				4,740
BioDerm, Inc. - Revolver		01/31/2028		Healthcare, Education and Childcare			11.84	%		3M SOFR+650					268				268				265
BioDerm, Inc. - Revolver (7)		01/31/2028		Healthcare, Education and Childcare			—				—				804				—				(8	)
Blackhawk Industrial Distribution, Inc.		09/17/2026		Distribution			11.70	%		3M SOFR+640					5,699				5,657				5,627
Blackhawk Industrial Distribution, Inc.(7)		09/17/2026		Distribution			—				—				2,996				—				(8	)
Blackhawk Industrial Distribution, Inc. - Revolver		09/17/2026		Distribution			13.75	%		3M SOFR+525					1,030				1,030				1,017
Blackhawk Industrial Distribution, Inc. - Revolver (7)		09/17/2026		Distribution			—				—				2,402				—				(30	)
BlueHalo Financing Holdings, LLC		10/31/2025		Aerospace and Defense			12.04	%		3M SOFR+665					1,118				1,097				1,095
Broder Bros., Co.		12/04/2025		Consumer Products			11.61	%		3M SOFR+626					9,773				9,773				9,773
Carisk Buyer, Inc.		12/01/2029		Healthcare, Education and Childcare			11.10	%		3M SOFR+575					5,500				5,418				5,418
Carisk Buyer, Inc. - Unfunded Term Loan (7)		12/01/2029		Healthcare, Education and Childcare			—				—				4,813				—				(24	)
Carisk Buyer, Inc. - Revolver (7)		12/01/2029		Healthcare, Education and Childcare			—				—				1,750				—				(26	)
Cartessa Aesthetics, LLC		06/14/2028		Distribution			11.10	%		3M SOFR+575					33,970				33,435				33,970
Cartessa Aesthetics, LLC - Revolver		06/14/2028		Distribution			11.10	%		3M SOFR+575					1,265				1,265				1,265
Cartessa Aesthetics, LLC - Revolver (7)		06/14/2028		Distribution			—				—				2,297				—				—
CF512, Inc.		08/20/2026		Media			11.56	%		3M SOFR+619					6,575				6,512				6,444
CF512, Inc. - Revolver (7)		08/20/2026		Media			—				—				909				—				(18	)
Compex Legal Services, Inc.		02/09/2026		Business Services			10.90	%		3M SOFR+555					946				938				946
Compex Legal Services, Inc. - Revolver		02/07/2025		Business Services			10.90	%		3M SOFR+555					197				197				197
Compex Legal Services, Inc. - Revolver (7)		02/07/2025		Business Services			—				—				459				—				—
Confluent Health, LLC		11/30/2028		Healthcare, Education and Childcare			12.86	%		3M SOFR+750					1,985				1,855				1,985
Connatix Buyer, Inc. - Revolver (7)		07/13/2027		Media			—				—				1,875				—				(84	)
Crane 1 Services, Inc. - Revolver		08/16/2027		Personal, Food and Miscellaneous Services			10.36	%		3M SOFR+501					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			11.22	%		3M SOFR+585					6,189				6,136				6,189
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			11.75	%		3M SOFR+640					6				6				6
DRS Holdings III, Inc. - Revolver (7)		11/03/2025		Consumer Products			—				—				1,783				—				(20	)
EDS Buyer, LLC		12/22/2028		Aerospace and Defense			11.62	%		3M SOFR+625					6,203				6,121				6,141
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				—				(17	)
ETE Intermediate II, LLC - Revolver (7)		05/25/2029		Personal, Food and Miscellaneous Services			—				—				1,656				—				—
Exigo Intermediate II, LLC		03/15/2027		Business Services			11.46	%		3M SOFR+610					24,313				24,051				23,948
Exigo Intermediate II, LLC - Revolver (7)		03/15/2027		Business Services			—				—				1,856				—				(28	)
Five Star Buyer, Inc.		02/23/2028		Leisure, Amusement, Motion Pictures, Entertainment			12.46	%		3M SOFR+710					196				196				193
Five Star Buyer, Inc. - Unfunded Term Loan (7)		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

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

8

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration		Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Graffiti Buyer, Inc.		08/10/2027		Distribution			10.98	%		3M SOFR+560					890			$	882			$	881
Graffiti Buyer, Inc. - Revolver		08/10/2027		Distribution			10.98	%		3M SOFR+560					265				265				262
Graffiti Buyer, Inc. - Revolver (7)		08/10/2027		Distribution			—				—				504				—				(5	)
Hancock Roofing and Construction L.L.C.		12/31/2026		Insurance			10.96	%		1M SOFR+560					335				335				322
Hancock Roofing and Construction L.L.C. - Revolver (7)		12/31/2026		Insurance			—				—				415				—				(17	)
Holdco Sands Intermediate, LLC		11/23/2028		Aerospace and Defense			11.75	%		3M SOFR+600					10,617				10,439				10,555
Holdco Sands Intermediate, LLC - Revolver (7)		11/23/2027		Aerospace and Defense			—				—				3,941				—				(39	)
HV Watterson Holdings, LLC		12/17/2026		Business Services			11.50	%		1M SOFR+615					278				276				278
HV Watterson Holdings, LLC  (7)		12/17/2026		Business Services			—				—				2,219				—				17
HV Watterson Holdings, LLC - Revolver		12/17/2026		Business Services			11.50	%		3M SOFR+615					1,000				1,000				1,000
HV Watterson Holdings, LLC - Revolver (7)		12/17/2026		Business Services			—				—				250				—				—
HW Holdco, LLC		12/10/2024		Media			11.81	%		3M SOFR+640					11,237				11,182				11,069
HW Holdco, LLC - Revolver		12/10/2024		Media			11.79	%		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		12/07/2024		Healthcare, Education and Childcare			12.64	%		3M SOFR+725					21,249				21,077				21,249
Infinity Home Services Holdco, Inc.		12/28/2028		Personal, Food and Miscellaneous Services			12.22	%		3M SOFR+685					2,084				2,084				2,084
Infinity Home Services Holdco, Inc. (10)		12/28/2028		Personal, Food and Miscellaneous Services			11.50	%		3M SOFR+600					CAD 2,223				1,599				1,656
Infinity Home Services Holdco, Inc. - Unfunded Term Loan		02/15/2024		Personal, Food and Miscellaneous Services			—				—				1,135				—				—
Infinity Home Services Holdco, Inc. - 1st Amendment Unfunded Term Loan (7)		11/17/2025		Personal, Food and Miscellaneous Services			—				—				9,384				—				(47	)
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			11.21	%		3M SOFR+585					1,416				1,402				1,416
Integrity Marketing Acquisition, LLC		08/27/2026		Insurance			11.54	%		3M SOFR+615					9,940				9,902				9,840
Integrity Marketing Acquisition, LLC - Unfunded Term Loan		08/31/2025		Insurance			—				—				2,325				—				(12	)
Integrity Marketing Acquisition, LLC - Revolver (7)		08/31/2025		Insurance			—				—				160				—				—
Inventus Power, Inc. - Revolver (7)		06/30/2025		Electronics			—				—				1,729				—				(35	)
ITI Holdings, Inc.		03/03/2028		Business Services			11.02	%		3M SOFR+565					8,815				8,701				8,551
ITI Holdings, Inc. - Revolver		03/03/2028		Business Services			12.07	%		3M SOFR+560					1,121				1,121				1,087
ITI Holdings, Inc. - Revolver (7)		03/03/2028		Business Services			—				—				370				—				(11	)
K2 Pure Solutions NoCal, L.P.		01/31/2024		Chemicals, Plastics and Rubber			15.46	%		3M SOFR+1010					8,859				8,856				8,859
K2 Pure Solutions NoCal, L.P. - Revolver (7)		01/31/2024		Chemicals, Plastics and Rubber			—				—				1,938				—				—
Kinetic Purchaser, LLC		11/10/2027		Consumer Products			11.50	%		3M SOFR+615					9,150				8,947				9,104
Kinetic Purchaser, LLC - Revolver (7)		11/10/2026		Consumer Products			—				—				4,854				—				(24	)
Lash OpCo, LLC		02/18/2027		Consumer Products			12.48	%		1M SOFR+700					2,799				2,760				2,785
Lash OpCo, LLC - Revolver		08/16/2026		Consumer Products			12.53	%		1M SOFR+700					1,977				1,977				1,967
Lash OpCo, LLC - Revolver (7)		08/16/2026		Consumer Products			—				—				935				—				(5	)
LAV Gear Holdings, Inc.		10/31/2025		Leisure, Amusement, Motion Pictures, Entertainment			11.81	%		1M SOFR+640					2,047				2,047				2,002
						(PIK 5.50%)
Ledge Lounger, Inc.		11/09/2026		Consumer Products			12.00	%		3M SOFR+665					9,062				8,950				8,971
Ledge Lounger, Inc. - Revolver		11/09/2026		Consumer Products			12.00	%		3M SOFR+665					1,449				1,449				1,435
Ledge Lounger, Inc. - Revolver (7)		11/09/2026		Consumer Products			—				—				483				—				(5	)
Lightspeed Buyer Inc.		02/03/2026		Healthcare, Education and Childcare			10.71	%		1M SOFR+535					2,192				2,182				2,182
Lightspeed Buyer Inc. - Revolver (7)		02/03/2026		Healthcare, Education and Childcare			—				—				1,166				—				(6	)
LJ Avalon Holdings, LLC		02/01/2030		Environmental Services			11.86	%		1M SOFR+640					572				565				560
LJ Avalon Holdings, LLC - Unfunded Term Loan		07/31/2024		Environmental Services			—				—				894				—				(4	)
LJ Avalon Holdings, LLC - Revolver (7)		01/31/2030		Environmental Services			—				—				587				—				(12	)
LSF9 Atlantis Holdings, LLC		03/31/2029		Retail			12.60	%		3M SOFR+725					5,550				5,370				5,404
Loving Tan Intermediate II, Inc.		05/31/2028		Consumer Products			12.35	%		3M SOFR+700					4,975				4,883				4,925
Loving Tan Intermediate II, Inc. - Revolver		05/31/2028		Consumer Products			12.35	%		3M SOFR+700					347				347				344
Loving Tan Intermediate II, Inc. - Revolver (7)		05/31/2028		Consumer Products			—				—				284				—				(3	)
Mars Acquisition Holdings Corp.		05/14/2026		Media			11.00	%		3M SOFR+565					1,831				1,805				1,831
Mars Acquisition Holdings Corp. - Revolver (7)		05/14/2026		Media			—				—				1,209				—				—
MBS Holdings, Inc. - Revolver		04/16/2027		Telecommunications			11.21	%		3M SOFR+585					417				417				410
MBS Holdings, Inc. - Revolver (7)		04/16/2027		Telecommunications			—				—				278				—				(4	)
MDI Buyer, Inc.		07/25/2028		Chemicals, Plastics and Rubber			11.54	%		3M SOFR+625					20,084				19,796				19,585
MDI Buyer, Inc. - Revolver		07/25/2028		Chemicals, Plastics and Rubber			11.38	%		3M SOFR+600					787				787				767
MDI Buyer, Inc. - Revolver (7)		07/25/2028		Chemicals, Plastics and Rubber			—				—				1,440				-				(22	)
Meadowlark Acquirer, LLC		12/10/2027		Business Services			10.66	%		3M SOFR+565					1,937				1,920				1,879
Meadowlark Acquirer, LLC Term Loan II		12/10/2027		Business Services			—				—				8,922				—				(178	)
Meadowlark Acquirer, LLC - Revolver (7)		12/10/2027		Business Services			—				—				1,685				—				(51	)
Medina Health, LLC		10/20/2028		Healthcare, Education and Childcare			11.60	%		3M SOFR+625					19,949				19,608				19,550
Medina Health, LLC - Revolver		10/20/2028		Healthcare, Education and Childcare			11.60	%		3M SOFR+625					416				416				408
Medina Health, LLC - Revolver (7)		10/20/2028		Healthcare, Education and Childcare			—				—				2,358				—				(47	)

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

9

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)—(Continued)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration		Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Municipal Emergency Services, Inc.		09/28/2027		Distribution			10.52	%		3M SOFR+515					483			$	483			$	483
Municipal Emergency Services, Inc. - Unfunded Term Loan A		12/16/2024		Distribution			—				—				769				—				(1	)
Municipal Emergency Services, Inc. - Unfunded Term Loan B		12/16/2024		Distribution			—				—				2,510				—				(3	)
Municipal Emergency Services, Inc. - Revolver (7)		09/28/2027		Distribution			—				—				1,880				—				(2	)
NBH Group LLC - Revolver (7)		08/19/2026		Healthcare, Education and Childcare			—				—				1,163				—				(70	)
Neptune Flood Incorporated - Revolver (7)		05/09/2029		Insurance			—				—				541				—				—
NORA Acquisition, LLC		08/31/2029		Healthcare, Education and Childcare			11.70	%		3M SOFR+635					5,486				5,381				5,404
NORA Acquisition, LLC - Revolver (7)		08/31/2029		Healthcare, Education and Childcare			—				—				2,707				—				(41	)
Omnia Exterior Solutions, LLC		12/29/2029		Diversified Conglomerate Service			10.85	%		3M SOFR+550					3,500				3,448				3,448
Omnia Exterior Solutions, LLC - Unfunded Term Loan (7)		03/28/2024		Diversified Conglomerate Service			—				—				2,800				—				—
Omnia Exterior Solutions, LLC - Unfunded Term Loan 2 (7)		12/29/2025		Diversified Conglomerate Service			—				—				4,900				—				—
Omnia Exterior Solutions, LLC - Revolver (7)		12/29/2029		Diversified Conglomerate Service			—				—				1,400				—				—
ORL Acquisition, Inc.		09/03/2027		Business Services			12.75	%		3M SOFR+740					4,397				4,339				3,738
ORL Acquisition, Inc. - Revolver (7)		09/03/2027		Business Services			—				—				597				—				(90	)
OSP Embedded Purchaser, LLC		12/15/2029		Aerospace and Defense			11.22	%		3M SOFR+585					6,500				6,386				6,386
OSP Embedded Purchaser, LLC - Revolver (7)		12/15/2029		Aerospace and Defense			—				—				1,477				—				—
Ox Two, LLC		05/18/2026		Building Materials			12.90	%		1M SOFR+751					13,578				13,457				13,408
Ox Two, LLC - Revolver (7)		05/18/2026		Building Materials			—				—				2,419				—				(30	)
Pacific Purchaser, LLC		09/30/2028		Business Services			11.43	%		3M SOFR+625					13,000				12,747				12,805
Pacific Purchaser, LLC - Unfunded Term Loan (7)		09/30/2028		Business Services			—				—				2,747				—				—
Pacific Purchaser, LLC - Revolver (7)		09/30/2028		Business Services			—				—				1,373				—				(21	)
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				—				(372	)
Pragmatic Institute, LLC		07/06/2028		Business Services			11.14	%		3M SOFR+575					34,898				34,478				32,630
Pragmatic Institute, LLC Unfunded Term Loan		07/06/2028		Business Services			—				—				7,193				—				(396	)
Pragmatic Institute, LLC - Revolver		07/06/2028		Business Services			11.14	%		3M SOFR+575					4,795				4,795				4,483
Quantic Electronics, LLC		11/19/2026		Aerospace and Defense			11.70	%		3M SOFR+635					1,480				1,471				1,450
Quantic Electronics, LLC - Revolver		11/19/2026		Aerospace and Defense			11.70	%		3M SOFR+635					528				528				518
Questex, LLC		09/09/2024		Media			9.77	%		3M SOFR+440					20,193				20,135				20,193
Questex, LLC - Revolver (7)		09/09/2024		Media			—				—				3,590				—				—
Radius Aerospace, Inc. - Revolver		03/31/2025		Aerospace and Defense			11.24	%		3M SOFR+575					594				594				588
Radius Aerospace, Inc. - Revolver (7)		03/31/2025		Aerospace and Defense			—				—				1,633				—				(16	)
Rancho Health MSO, Inc. (7)		12/18/2025		Healthcare, Education and Childcare			11.24	%		3M SOFR+585					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			11.20	%		3M SOFR+585					210				210				210
Rancho Health MSO, Inc. - Revolver (7)		12/18/2025		Healthcare, Education and Childcare			—				—				315				—				—
Reception Purchaser, LLC		02/28/2028		Transportation			11.50	%		3M SOFR+615					5,848				5,780				5,672
Recteq, LLC - Revolver (7)		01/29/2026		Consumer Products			—				—				1,127				—				(39	)
Research Now Group, Inc. and Dynata, LLC		12/20/2024		Business Services			11.14	%		3M SOFR+576					124				124				109
Riverpoint Medical, LLC - Revolver		06/20/2025		Healthcare, Education and Childcare			10.46	%		3M SOFR+510					91				91				90
Riverpoint Medical, LLC - Revolver (7)		06/20/2025		Healthcare, Education and Childcare			—				—				273				—				(2	)
Riverside Assessments, LLC		03/10/2025		Education			11.28	%		3M SOFR+590					11,640				11,544				11,524
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			—				—				860				—				(13	)
S101 Holdings, Inc. - Unfunded Term Loan (7)		06/15/2024		Electronics			—				—				2,277				—				—
S101 Holdings, Inc. - Unfunded Term Loan 2 (7)		12/15/2024		Electronics			—				—				5,313				—				—
Sales Benchmark Index LLC - Revolver (7)		01/03/2025		Business Services			—				—				732				—				(4	)
Sargent & Greenleaf Inc. - Revolver		12/20/2024		Electronics			11.92	%		3M SOFR+660					338				338				336
Sargent & Greenleaf Inc. - Revolver (7)		12/20/2024		Electronics			—				—				274				—				(1	)
Schlesinger Global, Inc.		07/14/2025		Business Services			13.16	%		3M SOFR+715					4,635				4,604				4,485
Schlesinger Global, Inc. - Revolver		07/14/2025		Business Services			12.53	%		3M SOFR+715					30				30				29
						(PIK 0.5%)
Schlesinger Global, Inc. - Revolver (7)		07/14/2025		Business Services			—				—				9				—				—
Seaway Buyer, LLC - Revolver		06/13/2029		Chemicals, Plastics and Rubber			11.52	%		3M SOFR+615					4,740				4,681				4,574
Seaway Buyer, LLC		06/13/2029		Chemicals, Plastics and Rubber			11.50	%		3M SOFR+615					313				313				302
Seaway Buyer, LLC - Revolver (7)		06/13/2029		Chemicals, Plastics and Rubber			—				—				2,814				—				(98	)
Shiftkey, LLC		06/21/2027		Business Services			11.36	%		3M SOFR+601					17,730				17,598				17,234
Sigma Defense Systems, LLC		12/18/2027		Telecommunications			12.50	%		1M SOFR+715					26,138				25,532				25,877
Sigma Defense Systems, LLC - Revolver		12/18/2027		Telecommunications			12.50	%		1M SOFR+715					1,786				1,786				1,768
Sigma Defense Systems, LLC - Revolver (7)		12/18/2027		Telecommunications			—				—				1,190				—				(12	)
Signature Systems Holding Company - Revolver (7)		05/03/2024		Chemicals, Plastics and Rubber			—				—				2,016				—				—
Solutionreach, Inc. - Revolver (7)		07/17/2025		Communications			—				—				833				—				(2	)
Spendmend Holdings LLC		03/01/2028		Business Services			11.00	%		3M SOFR+565					99				98				98
Spendmend Holdings LLC - Revolver		03/01/2028		Business Services			11.02	%		3M SOFR+565					561				561				554
Spendmend Holdings LLC (7)		03/01/2028		Business Services			—				—				2,684				—				(9	)

 

 

Cas

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

10

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration				Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Spendmend Holdings LLC - Revolver (7)		03/01/2028				Business Services			—				—				841			$	-			$	(9	)
System Planning and Analysis, Inc. - Revolver (7)  (f/k/a Management Consulting & Research, LLC)		08/16/2027				Aerospace and Defense			—				—				2,925				—				(18	)
The Bluebird Group LLC		07/27/2026				Business Services			12.00	%		3M SOFR+665					2,549				2,515				2,521
The Bluebird Group LLC - Revolver (7)		07/27/2026				Business Services			—				—				734				—				(8	)
The Plimpton & Hills Corporation		11/08/2029				Distribution			11.37	%		3M SOFR+600					14,400				14,186				14,184
The Plimpton & Hills Corporation - Unfunded Term Loan (7)		11/07/2025				Distribution			—				—				9,144				—				(46	)
The Vertex Companies, LLC		08/30/2027				Business Services			11.71	%		3M SOFR+635					185				182				186
The Vertex Companies, LLC - Revolver		08/30/2027				Business Services			11.46	%		3M SOFR+610					248				248				247
The Vertex Companies, LLC - Revolver (7)		08/30/2027				Business Services			—				—				492				—				(1	)
TransGo, LLC		12/29/2028				Machinery			11.35	%		3M SOFR+600					25,000				24,626				24,625
TransGo, LLC - Revolver (7)		12/29/2028				Machinery			—				—				3,323				—				—
TWS Acquisition Corporation - Revolver (7)		06/16/2025				Education			—				—				1,644				—				—
Tyto Athene, LLC (New Issue) - Revolver		04/01/2026				Aerospace and Defense			11.02	%		3M SOFR+565					109				109				101
Tyto Athene, LLC - Revolver (7)		04/01/2026				Aerospace and Defense			—				—				255				—				(19	)
Urology Management Holdings, Inc.		06/15/2026				Healthcare, Education and Childcare			12.04	%		3M SOFR+665					4,189				4,189				4,102
Urology Management Holdings, Inc. - Unfunded Term Loan		02/01/2024				Healthcare, Education and Childcare			—				—				3,033				—				(63	)
Watchtower Intermediate, LLC		12/01/2029				Electronics			11.38	%		3M SOFR+600					19,250				18,941				18,865
Watchtower Intermediate, LLC. - Unfunded Term Loan (7)		12/01/2025				Electronics			—				—				4,200				—				(37	)
Watchtower Intermediate, LLC. - Revolver		12/01/2029				Electronics			11.38	%		3M SOFR+600					1,260				1,260				1,235
Watchtower Intermediate, LLC. - Revolver (7)		12/01/2029				Electronics			—				—				5,040				—				(101	)
Wildcat Buyerco, Inc.		02/27/2027				Electronics			11.11	%		3M SOFR+575					4,620				4,573				4,551
Wildcat Buyerco, Inc. - Unfunded Term Loan (7)		02/27/2027				Electronics			—				—				2,737				—				(14	)
Wildcat Buyerco, Inc. - Revolver (7)		02/27/2027				Electronics			—				—				551				—				(8	)
Zips Car Wash, LLC		03/01/2024				Auto Sector			12.71	%		3M SOFR+735					2,589				2,582				2,531
Total First Lien Secured Debt																					571,058				565,170
Second Lien Secured Debt—15.7% of Net Assets
Ascensus Holdings, Inc.		08/02/2028				Financial Services			12.18	%		3M SOFR+676					3,000				2,728				2,876
Atlas Purchaser, Inc		05/07/2029				Telecommunications			14.64	%		3M SOFR+900					17,000				16,613				11,509
Best Practice Associates LLC		06/29/2027				Aerospace and Defense			14.52	%		3M SOFR+915					17,825				17,573				17,469
Burgess Point Purchaser Corporation		07/28/2030				Auto Sector			14.46	%		3M SOFR+910					8,000				7,680				7,920
ENC Parent Corporation		08/19/2029				Business Services			13.11	%		3M SOFR+776					7,500				7,441				6,900
Halo Buyer, Inc.		07/06/2026				Consumer Products			13.71	%		1M SOFR+835					32,500				32,248				31,606
QuantiTech LLC		02/04/2027				Aerospace and Defense			15.47	%		3M SOFR+1010					150				148				150
Total Second Lien Secured Debt																					84,431				78,430
Subordinated Debt/Corporate Notes—9.8% of Net Assets
Express Wash Acquisition Company, LLC		01/15/2029				Auto Sector			15.11	%		3M SOFR+976					22,219				21,588				21,552
Flock Financial, LLC		05/26/2027				Financial Services			14.50	%			—				34,000				33,385				27,200
Total Subordinated Debt/Corporate Notes																					54,973				48,752
Preferred Equity/Partnership Interests—3.1% of Net Assets (6)
Ad.net Holdings, Inc.			—			Media			—				—				2,400				240				267
AH Newco Equityholdings, LLC			—			Healthcare, Education and Childcare			6.00	%			—				211				500				994
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9)			—			Media			—				—				1,135				1,135				1,158
Cartessa Aesthetics, LLC (9)			—			Distribution			—				—				3,562,500				3,563				5,287
Gauge Lash Coinvest, LLC - Preferred Equity			—			Consumer Products			—				—				64,967				351				1,103
Gauge Schlesinger Coinvest, LLC - Class A-2 Preferred Equity			—			Business Services			—				—				1				1				1
Imagine Topco, LP Preferred			—			Business Services			8.00	%			—				743,826				744				769
Mars Intermediate Holdings II, Inc (9)			—			Media			—				—				414				414				568
Magnolia Topco LP - Class A Preferred Equity (9)			—			Auto Sector			—				—				1,545				1,545				1,598
Magnolia Topco LP - Class B Preferred Equity  (9)			—			Auto Sector			—				—				1,018				643				546
NXOF Holdings, Inc. (Tyto Athene, LLC)			—			Aerospace and Defense			—				—				160				160				163
ORL Holdco, Inc.			—			Business Services			—				—				575				57				—
PL Acquisitionco, LLC - Preferred Equity			—			Retail			—				—				37				37				42
Signature CR Intermediate Holdco, Inc.			—			Chemicals, Plastics and Rubber			12.00	%			—				1,527				1,527				2,564
TPC Holding Company, LP (8),(11)			—			Food			—				—				219				219				329
TWD Parent Holdings, LLC Preferred			—			Business Services			—				—				30				30				38
(The Vertex Companies, LLC)
Total Preferred Equity/Partnership Interests																					11,166				15,427
Common Equity/Partnership Interests/Warrants—24.4% of Net Assets (6)
A1 Garage Equity, LLC (9)			—			Personal, Food and Miscellaneous Services			—				—				2,193,038				2,193				2,430
Ad.net Holdings, Inc.			—			Media			—				—				2,667				27				—
AFC Acquisitions, Inc. (9)			—			Distribution			—				—				749,163				749				749
Affinion Group Holdings, Inc. (Warrants)		04/10/24				Consumer Products			—				—				77,190				2,126				—
Aftermarket Drivetrain Products Holdings, LLC			—			Machinery			—				—				1,645				1,645				1,645
AG Investco LP (9)			—			Business Services			—				—				805,164				805				1,125
AG Investco LP (7), (9)			—			Business Services			—				—				194,836				—				—

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

11

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration				Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Altamira Intermediate Company II, Inc.			—			Aerospace and Defense			—				—				125,000			$	125			$	126
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				9,676
Atlas Investment Aggregator, LLC			—			Telecommunications			—				—				1,700,000				1,613				—
BioDerm, Inc.			—			Healthcare, Education and Childcare			—				—				1,312				1,312				1,448
Burgess Point Holdings, LP			—			Auto Sector			—				—				680				680				650
Carisk Parent, L.P. - Common Equity			—			Healthcare, Education and Childcare			—				—				169,231				169				169
Connatix Parent, LLC			—			Media			—				—				57,416				632				253
Consello Pacific Aggregator, LLC (9)			—			Business Services			—				—				782,891				783				799
Cowboy Parent LLC			—			Distribution			—				—				27,778				3,015				5,410
(Blackhawk Industrial Distribution, Inc.)
Crane 1 Acquisition Parent Holdings, L.P.			—			Personal, Food and Miscellaneous Services			—				—				113				104				169
Delta InvestCo LP			—			Telecommunications			—				—				863,299				848				1,350
(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				2,144
EDS Topco, LP			—			Aerospace and Defense			—				—				937,500				938				971
Exigo, LLC			—			Business Services			—				—				1,458,333				1,458				1,681
FedHC InvestCo LP (9)			—			Aerospace and Defense			—				—				14,578				489				1,596
FedHC InvestCo LP (7),(9)			—			Aerospace and Defense			—				—				5,150				—				—
FedHC InvestCo II LP (9)			—			Aerospace and Defense			—				—				20,882				2,175				2,392
Five Star Parent Holdings, LLC			—			Leisure, Amusement, Motion Pictures, Entertainment			—				—				655,714				656				675
Gauge ETE Blocker, LLC - Common Equity			—			Personal, Food and Miscellaneous Services			—				—				374,444				374				371
Gauge Lash Coinvest LLC			—			Consumer Products			—				—				889,376				136				4,311
Gauge Loving Tan, LP - Common Equity			—			Consumer Products			—				—				462,827				463				394
Gauge Schlesinger Coinvest, LLC			—			Business Services			—				—				9				10				5
(TVC Enterprises, LLC)
GCOM InvestCo LP			—			Business Services			—				—				2,434				1,003				542
GMP Hills, LP - Common Equity			—			Distribution			—				—				3,747,470				3,747				3,747
Go Dawgs Capital III, LP			—			Building Materials			—				—				675,325				675				1,621
(American Insulated Glass, LLC) (9)
Hancock Claims Consultants Investors, LLC (9)			—			Insurance			—				—				450,000				450				207
HPA SPQ Aggregator LP- Common Equity			—			Business Services			—				—				750,399				750				750
HV Watterson Holdings, LLC			—			Business Services			—				—				1,600,000				1,600				1,635
Icon Partners V C, L.P.			—			Business Services			—				—				1,122,549				1,123				1,060
Icon Partners V C, L.P. (7)			—			Business Services			—				—				377,451				—				(21	)
IHS Parent Holdngs, L.P.			—			Personal, Food and Miscellaneous Services			—				—				1,218,045				1,218				1,759
Imagine Topco, LP			—			Business Services			—				—				743,826				—				—
Infogroup Parent Holdings, Inc.			—			Other Media			—				—				181,495				2,040				2,297
(Data Axle, Inc.)
Ironclad Holdco, LLC			—			Environmental Services			—				—				4,566				450				654
(Applied Technical Services, LLC) (9)
ITC Infusion Co-invest, LP(9)			—			Healthcare, Education and Childcare			—				—				162,445				1,645				1,927
ITC Rumba, LLC			—			Healthcare, Education and Childcare			—				—				375,675				8				267
(Cano Health, LLC) (9)
Kentucky Racing Holdco, LLC (Warrants)(9)			—			Hotels, Motels, Inns and Gaming			—				—				161,252				—				1,735
Kinetic Purchaser, LLC			—			Consumer Products			—				—				1,308,814				1,309				1,641
KL Stockton Co-Invest LP			—			Personal, Food and Miscellaneous Services			—				—				382,353				385				861
(Any Hour Services) (9)
Lariat ecoserv Co-Invest Holdings, LLC (9)			—			Environmental Services			—				—				363,656				—				25
LEP Pequod Holdings, LP			—			Financial Services			—				—				350				865				946
Lightspeed Investment Holdco LLC			—			Healthcare, Education and Childcare			—				—				273,143				273				721
LJ Avalon, LP			—			Environmental Services			—				—				851,087				851				868
Lorient Peregrine Investments, LP			—			Business Services			—				—				335,590				4,530				4,453
Magnolia Topco LP - Class A (9)			—			Auto Sector			—				—				1,545,460				—				—
Magnolia Topco LP - Class B (9)			—			Auto Sector			—				—				1,017,840				—				—
Mars Intermidiate Holdings II, Inc. (9)			—			Media			—				—				414				—				116
MDI Aggregator, LP			—			Chemicals, Plastics and Rubber			—				—				30,993				3,103				2,752
Meadowlark Title, LLC (9)			—			Business Services			—				—				815,385				802				—
Municipal Emergency Services, Inc.			—			Distribution			—				—				3,920,145				3,984				5,096
NEPRT Parent Holdings, LLC			—			Consumer Products			—				—				1,299				1,250				66
(Recteq, LLC) (9)
New Medina Health, LLC (9)			—			Healthcare, Education and Childcare			—				—				1,429,480				1,429				1,429
NORA Parent Holdings, LLC (9)			—			Healthcare, Education and Childcare			—				—				1,257				1,257				1,262
North Haven Saints Equity Holdings, LP(9)			—			Business Services			—				—				351,553				352				369
NXOF Holdings, Inc.			—			Aerospace and Defense			—				—				3,261				3				—
(Tyto Athene, LLC)
OceanSound Discovery Equity, LP			—			Aerospace and Defense			—				—				98,286				899				2,595
(Holdco Sands Intermediate, LLC) (9)
OHCP V BC COI, L.P.			—			Distribution			—				—				691,666				692				581
OHCP V BC COI, L.P. (7)			—			Distribution			—				—				58,334				—				(9	)
ORL Holdco, Inc.			—			Business Services			—				—				638				5				—
OSP Embedded Aggregator, LP			—			Aerospace and Defense			—				—				870,536				871				871
PennantPark-TSO Senior Loan Fund II, LP			—			Financial Services			—				—				12,269,640				12,270				12,644
Pink Lily Holdco, LLC (9)			—			Retail			—				—				1,044				1,044				20

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

12

---

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2023

(In thousands, except share data)

 

Issuer Name		Maturity / Expiration				Industry		Current  Coupon				Basis Point  Spread Above  Index (4)				Par /  Shares				Cost				Fair Value (3)
Pragmatic Institute, LLC			—			Business Services			—				—				1,918,047			$	1,918			$	29
Quad (U.S.) Co-Invest, L.P.			—			Business Services			—				—				2,958,706				2,959				3,469
QuantiTech InvestCo LP (9)			—			Aerospace and Defense			—				—				712				68				451
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				1,097
(Rancho Health MSO, Inc.)
SBI Holdings Investments LLC			—			Business Services			—				—				36,585				366				294
(Sales Benchmark Index LLC)
Seaway Topco, LP			—			Chemicals, Plastics and Rubber			—				—				2,981				2,981				2,117
Signature CR Intermediate Holdco, Inc.			—			Chemicals, Plastics and Rubber			—				—				80				80				2,120
SP L2 Holdings, LLC			—			Consumer Products			—				—				881,966				882				572
SSC Dominion Holdings, LLC			—			Electronics			—				—				71				71				2,455
Class B (US Dominion, Inc.)																					—				—
StellPen Holdings, LLC			—			Media			—				—				153,846				154				152
(CF512, Inc.)																					—				—
SV Aero Holdings, LLC (9)			—			Aerospace and Defense			—				—				25				247				247
TAC LifePort Holdings, LLC (9)			—			Aerospace and Defense			—				—				254,206				250				465
Tower Arch Infolinks Media, LP (9)			—			Media			—				—				539,282				506				952
Tower Arch Infolinks Media, LP (7), (9)			—			Media			—				—				356,162				—				—
TPC Holding Company, LP (8). (11)			—			Food			—				—				11,527				12				194
TWD Parent Holdings, LLC			—			Business Services			—				—				608				1				5
(The Vertex Companies, LLC)
UniVista Insurance (9)			—			Business Services			—				—				400				357				613
Urology Partners Co., L.P.			—			Healthcare, Education and Childcare			—				—				1,111,111				1,111				933
Watchtower Holdings, LLC (9)			—			Electronics			—				—				1,241,935				1,242				1,261
WCP Ivyrehab QP CF Feeder, LP (9)			—			Healthcare, Education and Childcare			—				—				3,715,012				3,754				4,071
WCP Ivyrehab QP CF Feeder, LP - Unfunded (7), (9)			—			Healthcare, Education and Childcare			—				—				284,988				—				—
Wildcat Parent, LP			—			Electronics			—				—				2,314				98				753
(Wildcat Buyerco, Inc.)
Total Common Equity/Partnership Interests/Warrants																					106,034				121,620
US Government Securities—10.0% of Net Assets
U.S. Treasury Bill (5)		01/23/2024				Short-Term U.S. Government Securities			5.23	%			—				50,000				49,855				49,846
Total Cash and Cash Equivalents																					49,855				49,846
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies																					877,517				879,245
Investments in Non-Controlled, Affiliated Portfolio Companies—8.2% of Net Assets (1), (2)
First Lien Secured Debt—2.2% of Net Assets
Walker Edison Furniture Company LLC		03/01/2029				Home and Office Furnishings			12.21	%		3M SOFR+685					8,055				8,055				7,894
Walker Edison Furniture Company, LLC - Unfunded Term Loan		03/01/2029				Home and Office Furnishings			—				—				2,083				—				(42	)
Walker Edison Furniture Company LLC - Junior Revolver		03/01/2029				Home and Office Furnishings			11.71	%		3M SOFR+635					3,333				3,333				3,333
Total First Lien Secured Debt																					11,388				11,185
Preferred Equity/Partnership Interests—5.9% of Net Assets(6)
Cascade Environmental Holdings, LLC			—			Environmental Services			—				—				5,887,236				32,791				28,519
Cascade Environmental Holdings, LLC - Series B			—			Environmental Services			—				—				918				918				1,125
Total Preferred Equity/Partnership Interests																					33,709				29,644
Common Equity/Partnership Interests/Warrants—0% of Net Assets (6)
Cascade Environmental Holdings, LLC			—			Environmental Services			—				—				7,444,347				2,853				—
Walker Edison Furniture			—			Home and Office Furnishings			—				—				72,917				6,786				—
Total Common Equity/Partnership Interests/Warrants																					9,639				—
Total Investments in Non-Controlled, Affiliated Portfolio Companies