Published: 2024-05-08 00:00:00 ET

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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 MARCH 31, 2024

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 May 8, 2024 was 65,224,500.

 

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PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2024

TABLE OF CONTENTS

 

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities as of March 31, 2024 (unaudited) and September 30, 2023		4
Consolidated Statements of Operations for the three and six months ended March 31, 2024 and 2023 (unaudited)		5
Consolidated Statements of Changes in Net Assets for the three and six months ended March 31, 2024 and 2023 (unaudited)		6
Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 (unaudited)		7
Consolidated Schedules of Investments as of March 31, 2024 (unaudited) and September 30, 2023		8
Notes to Consolidated Financial Statements (unaudited)		21
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		39
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		41
Item 3. Quantitative and Qualitative Disclosures About Market Risk		55
Item 4. Controls and Procedures		55
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		56
Item 1A. Risk Factors		56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		56
Item 3. Defaults Upon Senior Securities		56
Item 4. Mine Safety Disclosures		56
Item 5. Other Information		56
Item 6. Exhibits		57
SIGNATURES		58

 

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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 collectively to our consolidated subsidiaries, PNNT Investment Holdings II, LLC and 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.

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Item 1. Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(In thousands, except share and per share data)

 

		March 31, 2024				September 30, 2023
		(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$876,349 and $816,754, respectively)		$	876,591			$	830,808
Non-controlled, affiliated investments (amortized cost—$55,854 and $55,787, respectively)			37,170				54,771
Controlled, affiliated investments (amortized cost—$294,049 and $245,386, respectively)			324,470				216,068
Total investments (amortized cost—$1,226,252 and $1,117,927, respectively)			1,238,231				1,101,647
Cash and cash equivalents (cost—$35,409 and $38,784, respectively)			35,418				38,775
Interest receivable			9,258				6,820
Distribution receivable			5,312				5,079
Due from affiliates			270				—
Prepaid expenses and other assets			2,750				4,656
Total assets			1,291,239				1,156,977
Liabilities
Truist Credit Facility payable, at fair value (cost—$396,456 and $212,420, respectively)			392,546				206,940
2026 Notes payable, net (par— $150,000)			148,120				147,669
2026 Notes-2 payable, net (par— $165,000)			162,653				162,226
Payable for investment purchased			65,136				99,949
Distributions payable			4,566				13,697
Accounts payable and accrued expenses			2,819				6,754
Base management fee payable			4,137				3,915
Incentive fee payable			3,018				3,310
Interest payable on debt			6,416				6,231
Due to affiliates			299				4,099
Total liabilities			789,710				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			(245,002	)			(244,344	)
Total net assets		$	501,529			$	502,187
Total liabilities and net assets		$	1,291,239			$	1,156,977
Net asset value per share		$	7.69			$	7.70

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	22,904			$	26,759			$	43,972			$	48,990
Payment-in-kind			187				24				189				24
Dividend income			623				1,131				1,315				1,131
Other income			778				346				2,203				833
From non-controlled, affiliated investments:
Interest			—				81				—			81
Payment-in-kind			—				—				347				—
From controlled, affiliated investments:
Interest			5,941				3,648				11,422				6,506
Payment-in-kind			857				658				1,489				1,789
Dividend income			4,689				3,702				9,378				6,958
Total investment income			35,979				36,349				70,315				66,312
Expenses:
Interest and expenses on debt			11,868				10,587				21,424				20,316
Base management fee			4,137				4,040				8,141				8,642
Incentive fee			3,018				3,530				6,339				5,721
General and administrative expenses			1,379				835				2,593				1,676
Administrative services expenses			550				267				739				533
Expenses before provision for taxes			20,952				19,259				39,236				36,888
Provision for taxes on net investment income			775				450				1,168				2,450
Net expenses			21,727				19,709				40,404				39,338
Net investment income			14,252				16,640				29,911				26,974
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments			(1,434	)			(14,613	)			1,146				(10,549	)
Non-controlled and controlled, affiliated investments			(29,419	)			(133,098	)			(30,169	)			(133,098	)
Debt extinguishment			—				(289	)			—				(289	)
Provision for taxes on realized gain on investments			(177	)			(717	)			(177	)			(717	)
Net realized gain (loss) on investments and debt			(31,030	)			(148,717	)			(29,200	)			(144,653	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments			(1,528	)			3,950				(13,798	)			(46,567	)
Non-controlled and controlled, affiliated investments			34,751				131,459				42,075				90,411
Provision for taxes on unrealized appreciation (depreciation) on investments			(830	)			—				(680	)			896
Debt appreciation (depreciation)			470				1,540				(1,570	)			5,919
Net change in unrealized appreciation (depreciation) on investments and debt			32,863				136,949				26,027				50,659
Net realized and unrealized gain (loss) from investments and debt			1,833				(11,768	)			(3,173	)			(93,994	)
Net increase (decrease) in net assets resulting from operations			16,085				4,872			$	26,738				(67,020	)
Net increase (decrease) in net assets resulting from operations per common share		$	0.25			$	0.07			$	0.41			$	(1.03	)
Net investment income per common share		$	0.22			$	0.26			$	0.46			$	0.41

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

(In thousands)

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Net increase (decrease) in net assets resulting from operations:
Net investment income		$	14,252			$	16,640			$	29,911			$	26,974
Net realized gain (loss) on investments and debt			(30,853	)			(148,000	)			(29,023	)			(143,936	)
Net change in unrealized appreciation (depreciation) on investments			33,223				135,409				28,277				43,844
Net change in provision for taxes on net realized gain (loss) on investments			(177	)			(717	)			(177	)			(717	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments			(830	)			—				(680	)			896
Net change in unrealized (appreciation) depreciation on debt			470				1,540				(1,570	)			5,919
Net increase (decrease) in net assets resulting from operations			16,085				4,872				26,738				(67,020	)
Distributions to stockholders:
Distribution of net investment income			(13,698	)			(12,066	)			(27,396	)			(22,830	)
Total distributions to stockholders			(13,698	)			(12,066	)			(27,396	)			(22,830	)
Net increase (decrease) in net assets			2,387				(7,194	)			(658	)			(89,850	)
Net assets:
Beginning of period			499,142				502,909				502,187				585,565
End of period		$	501,529			$	495,715			$	501,529			$	495,715

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

		Six Months Ended March 31,
		2024				2023
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	26,738			$	(67,020	)
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			(28,277	)			(43,844	)
Net change in unrealized appreciation (depreciation) on debt			1,570				(5,919	)
Net realized (gain) loss on investments			29,023				143,647
Debt extinguishment realized loss			—				289
Net accretion of discount and amortization of premium			(1,685	)			(4,717	)
Purchases of investments			(529,161	)			(144,489	)
Payment-in-kind income			(2,025	)			(1,812	)
Proceeds from dispositions of investments			396,809				144,780
Amortization of deferred financing costs			878				903
(Increase) decrease in:
Interest receivable			(2,438	)			(826	)
Receivables from investments sold			—				29,494
Distribution receivable			(233	)			(2,414	)
Due from affiliate			(270	)			1,193
Prepaid expenses and other assets			636				(8,000	)
Increase (decrease) in:
Due to affiliate			(3,800	)			—
Payable for investments purchased			(34,813	)			15,149
Interest payable on debt			185				(171	)
Base management fee payable, net			222				(809	)
Incentive fee payable			(292	)			3,530
Deferred tax liability			—				(896	)
Accounts payable and accrued expenses			(3,935	)			2,416
Net cash provided by (used in) operating activities			(150,868	)			60,484
Cash flows from financing activities:
Distributions paid to stockholders			(36,525	)			(20,546	)
Repayments under SBA debetures							(20,000	)
Borrowings under Truist Credit Facility			331,036				75,500
Repayments under Truist Credit Facility			(147,000	)			(84,000	)
Net cash provided by (used in) financing activities			147,511				(49,046	)
Net increase (decrease) in cash equivalents			(3,357	)			11,438
Effect of exchange rate changes on cash			-				223
Cash and cash equivalents, beginning of period			38,775				54,775
Cash and cash equivalents, end of period		$	35,418			$	66,436
Supplemental disclosure of cash flow information:
Interest paid		$	20,361			$	19,584
Taxes paid		$	6,326			$	299
Non-cash exchanges and conversions		$	8,024			$	12,628

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2024

(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—174.8% of Net Assets (1), (2)
First Lien Secured Debt—113.1% of Net Assets
A1 Garage Merger Sub, LLC	12/22/2028		Personal, Food and Miscellaneous Services			11.68	%		3M SOFR+660					5,118			$	5,054			$	5,118
A1 Garage Merger Sub, LLC - Unfunded Term Loan (7)	12/21/2024		Personal, Food and Miscellaneous Services			—				—				1,788				—				27
A1 Garage Merger Sub, LLC - Revolver (7)	12/22/2028		Personal, Food and Miscellaneous Services			—				—				2,532				—				—
ACP Avenu Buyer, LLC	10/02/2029		Business Services			11.58	%		3M SOFR+625					1,247				1,230				1,215
ACP Avenu Buyer, LLC - Unfunded Term Loan (7)	04/02/2025		Business Services			—				—				1,799				—				(20	)
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				—				—
Ad.net Acquisition, LLC - Revolver (7)	05/07/2026		Media			—				—				444				—				—
Aeronix, Inc. - Revolver	12/12/2028		Aerospace and Defense			10.81	%		3M SOFR+550					747				747				739
Aeronix, Inc. - Revolver (7)	12/12/2028		Aerospace and Defense			—				—				1,743				—				(17	)
AFC Dell Holding Corp.	04/09/2027		Distribution			11.74	%		3M SOFR+640					5,074				5,074				5,023
AFC Dell Holding Corp. - Unfunded Term Loan (7)	04/09/2027		Distribution			—				—				8,279				—				(83	)
Anteriad, LLC (f/k/a MeritDirect, LLC)	06/30/2026		Media			11.23	%		3M SOFR+575					1,205				1,200				1,199
Anteriad, LLC (f/k/a MeritDirect, LLC) - Funded Revolver	06/30/2026		Media			11.18	%		3M SOFR+560					691				691				688
Anteriad, LLC (f/k/a MeritDirect, LLC) - Revolver (7)	06/30/2026		Media			—				—				921				—				(5	)
Any Hour Services	07/21/2027		Personal, Food and Miscellaneous Services			11.00	%		3M SOFR+585					3,007				2,978				2,977
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			11.20	%		3M SOFR+585					1,996				1,979				1,956
Applied Technical Services, LLC. - Unfunded Term Loan (7)	07/17/2025		Environmental Services			—				—				2,637				—				(26	)
Applied Technical Services, LLC - Revolver	12/29/2026		Environmental Services			13.25	%		3M SOFR+475					257				257				252
Applied Technical Services, LLC - Revolver (7)	12/29/2026		Environmental Services			—				—				1,544				—				(31	)
Arcfield Acquisition Corp. - Revolver (7)	08/04/2028		Aerospace and Defense			—				—				3,521				—				(35	)
Atlas Purchaser, Inc. - Third Out	05/06/2028		Telecommunications			12.33	%		3M SOFR+700					8,840				7,385				7,381
Atlas Purchaser, Inc. - Fourth Out	05/06/2028		Telecommunications			12.33	%		3M SOFR+700					4,760				646				643
Berwick Industrial Park	05/02/2024		Buildings and Real Estate			11.50	%			—				4,000				4,051				3,988
Beta Plus Technologies, Inc.	07/01/2029		Business Services			11.10	%		3M SOFR+575					4,925				4,852				4,790
Big Top Holdings, LLC	02/07/2030		Manufacturing/Basic Industry			11.56	%		3M SOFR+625					7,000				6,878				6,878
Big Top Holdings, LLC - Unfunded Revolver (7)	02/07/2030		Manufacturing/Basic Industry			0.00	%			—				1,155				-				(20	)
BioDerm, Inc. - Revolver	01/31/2028		Healthcare, Education and Childcare			11.82	%		3M SOFR+650					589				589				583
BioDerm, Inc. - Revolver (7)	01/31/2028		Healthcare, Education and Childcare			—				—				482				—				(5	)
Blackhawk Industrial Distribution, Inc.	09/17/2026		Distribution			11.75	%		3M SOFR+640					5,761				5,721				5,724
Blackhawk Industrial Distribution, Inc.(7)	09/17/2026		Distribution			—				—				2,924				—				(29	)
Blackhawk Industrial Distribution, Inc. - Revolver	09/17/2026		Distribution			13.75	%		3M SOFR+525					1,373				1,373				1,366
Blackhawk Industrial Distribution, Inc. - Revolver (7)	09/17/2026		Distribution			—				—				2,059				—				(10	)
BlueHalo Financing Holdings, LLC	10/31/2025		Aerospace and Defense			12.04	%		3M SOFR+665					1,115				1,097				1,098
Broder Bros., Co.	12/04/2025		Consumer Products			11.56	%		3M SOFR+626					9,653				9,653				9,653
Carisk Buyer, Inc. - Unfunded Term Loan (7)	12/01/2029		Healthcare, Education and Childcare			—				—				4,813				—				—
Carisk Buyer, Inc. - Revolver (7)	12/01/2029		Healthcare, Education and Childcare			—				—				1,750				—				(18	)
Carnegie Dartlet, LLC	02/07/2030		Education			10.83	%		3M SOFR+550					23,000				22,660				22,655
Carnegie Dartlet, LLC - Unfunded Term Loan (7)	02/07/2026		Education			—				—				10,017				—				(50	)
Carnegie Dartlet, LLC - Funded Revolver	02/07/2030		Education			10.80	%		3M SOFR+550					668				668				658
Carnegie Dartlet, LLC - Unfunded Revolver (7)	02/07/2030		Education			—				—				2,671				—				(40	)
Cartessa Aesthetics, LLC	06/14/2028		Distribution			11.06	%		3M SOFR+575					33,884				33,366				33,884
Cartessa Aesthetics, LLC - Revolver	06/14/2028		Distribution			11.06	%		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			11.52	%		3M SOFR+619					6,558				6,501				6,460
CF512, Inc. - Revolver (7)	08/20/2026		Media			—				—				909				—				(14	)
Compex Legal Services, Inc.	02/09/2026		Business Services			10.92	%		3M SOFR+555					944				936				944
Compex Legal Services, Inc. - Revolver	02/07/2025		Business Services			10.87	%		3M SOFR+555					131				131				131
Compex Legal Services, Inc. - Revolver (7)	02/07/2025		Business Services			—				—				525				—				—
Confluent Health, LLC	11/30/2028		Healthcare, Education and Childcare			12.83	%		3M SOFR+750					1,980				1,854				1,980
Connatix Buyer, Inc. - Revolver (7)	07/13/2027		Media			—				—				1,875				—				(75	)
Crane 1 Services, Inc. - Revolver	08/16/2027		Personal, Food and Miscellaneous Services			10.81	%		3M SOFR+501					117				117				117
Crane 1 Services, Inc. - Revolver (7)	08/16/2027		Personal, Food and Miscellaneous Services			—				—				175				—				—
Dr. Squatch, LLC	08/31/2027		Personal and Non-Durable Consumer Products			11.17	%		3M SOFR+585					8,163				8,095				8,163
Dr. Squatch, LLC - Funded Revolver	08/31/2027		Personal, Food and Miscellaneous Services			11.16	%		3M SOFR+585					1,551				1,551				1,551
Dr. Squatch, LLC - Revolver (7)	08/31/2027		Personal and Non-Durable Consumer Products			—				—				775				—				—
DRS Holdings III, Inc.	11/03/2025		Consumer Products			11.71	%		3M SOFR+640					6				6				6
DRS Holdings III, Inc. - Revolver (7)	11/03/2025		Consumer Products			—				—				1,783				—				(14	)
EDS Buyer, LLC	12/22/2028		Aerospace and Defense			11.56	%		3M SOFR+625					11,711				11,550				11,477
EDS Buyer, LLC- Unfunded Term Loan (7)	12/22/2028		Aerospace and Defense			—				—				5,625				—				(42	)
EDS Buyer, LLC - Revolver (7)	12/22/2028		Aerospace and Defense			—				—				1,915				—				(38	)
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			11.43	%		3M SOFR+610					24,251				24,002				23,766
Exigo Intermediate II, LLC - Revolver (7)	03/15/2027		Business Services			—				—				1,856				—				(37	)
Five Star Buyer, Inc.	02/23/2028		Leisure, Amusement, Motion Pictures, Entertainment			12.43	%		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

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

MARCH 31, 2024

(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			10.90	%		3M SOFR+560					886			$	878			$	877
Graffiti Buyer, Inc. - Revolver	08/10/2027		Distribution			10.93	%		3M SOFR+560					534				534				529
Graffiti Buyer, Inc. - Revolver (7)	08/10/2027		Distribution			—				—				235				—				(2	)
Hancock Roofing and Construction L.L.C.	12/31/2026		Insurance			10.93	%		1M SOFR+560					585				585				550
Hancock Roofing and Construction L.L.C. - Revolver (7)	12/31/2026		Insurance			—				—				165				—				(10	)
Hills Distribution, Inc. - - Unfunded Term Loan (7)	11/07/2025		Distribution			—				—				9,144				—				(46	)
HV Watterson Holdings, LLC	12/17/2026		Business Services			11.46	%		1M SOFR+615					277				276				276
HV Watterson Holdings, LLC - Revolver	12/17/2026		Business Services			11.46	%		3M SOFR+615					1,200				1,200				1,195
HV Watterson Holdings, LLC - Revolver (7)	12/17/2026		Business Services			—				—				50				—				—
HW Holdco, LLC	05/10/2026		Media			11.54	%		3M SOFR+640					11,211				11,169				11,043
HW Holdco, LLC - Revolver (7)	05/10/2026		Media			—				—				3,387				—				(51	)
IG Investments Holdings, LLC - Revolver (7)	09/22/2027		Business Services			—				—				477				—				(10	)
Imagine Acquisitionco, LLC (7)	11/15/2027		Business Services			—				—				1,685				—				(17	)
Inception Fertility Ventures, LLC	12/07/2024		Healthcare, Education and Childcare			12.64	%		3M SOFR+725					21,195				21,073				21,195
Infinity Home Services Holdco, Inc.	12/28/2028		Personal, Food and Miscellaneous Services			12.18	%		3M SOFR+685					2,964				2,964				2,964
Infinity Home Services Holdco, Inc. (10)	12/28/2028		Personal, Food and Miscellaneous Services			11.31	%		3M SOFR+600					CAD 2,217				1,596				1,606
Infinity Home Services Holdco, Inc. - Funded Revolver	12/28/2028		Personal, Food and Miscellaneous Services			14.25	%		3M SOFR+575					226				226				226
Infinity Home Services Holdco, Inc. - 1st Amendment Unfunded Term Loan (7)	11/17/2025		Personal, Food and Miscellaneous Services			—				—				9,384				—				(70	)
Infinity Home Services Holdco, Inc. - Revolver (7)	12/28/2028		Personal, Food and Miscellaneous Services			—				—				1,066				—				—
Infolinks Media Buyco, LLC	11/01/2026		Media			11.18	%		3M SOFR+585					1,413				1,399				1,413
Integrity Marketing Acquisition, LLC	08/27/2026		Insurance			11.49	%		3M SOFR+615					9,913				9,878				9,814
Integrity Marketing Acquisition, LLC - Unfunded Term Loan (7)	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			10.97	%		3M SOFR+565					8,793				8,683				8,705
ITI Holdings, Inc. - Revolver	03/03/2028		Business Services			13.00	%		3M SOFR+450					1,300				1,300				1,287
ITI Holdings, Inc. - Revolver (7)	03/03/2028		Business Services			—				—				191				—				(2	)
Kinetic Purchaser, LLC	11/10/2027		Consumer Products			11.46	%		3M SOFR+615					9,127				8,938				9,127
Kinetic Purchaser, LLC - Revolver (7)	11/10/2026		Consumer Products			—				—				4,854				—				—
Lash OpCo, LLC	02/18/2027		Consumer Products			13.23	%		1M SOFR+700					2,829				2,792				2,800
					(PIK 5.1%)
Lash OpCo, LLC - Revolver	08/16/2026		Consumer Products			13.30	%		1M SOFR+700					2,620				2,620				2,594
					(PIK 5.1%)
Lash OpCo, LLC - Revolver (7)	08/16/2026		Consumer Products			—				—				317				—				(3	)
LAV Gear Holdings, Inc.	10/31/2025		Leisure, Amusement, Motion Pictures, Entertainment			11.75	%		1M SOFR+640					2,042				2,042				2,014
Ledge Lounger, Inc.	11/09/2026		Consumer Products			11.96	%		3M SOFR+665					9,039				8,937				8,903
Ledge Lounger, Inc. - Revolver	11/09/2026		Consumer Products			11.96	%		3M SOFR+665					1,611				1,611				1,586
Ledge Lounger, Inc. - Revolver (7)	11/09/2026		Consumer Products			—				—				322				—				(5	)
Lightspeed Buyer Inc.	02/03/2026		Healthcare, Education and Childcare			10.68	%		1M SOFR+535					2,187				2,178				2,187
Lightspeed Buyer Inc. - Revolver (7)	02/03/2026		Healthcare, Education and Childcare			—				—				1,166				—				—
LJ Avalon Holdings, LLC	02/01/2030		Environmental Services			11.71	%		1M SOFR+640					570				562				565
LJ Avalon Holdings, LLC- Unfunded Term Loan (7)	07/31/2024		Environmental Services			—				—				894				—				4
LJ Avalon Holdings, LLC - Revolver (7)	01/31/2030		Environmental Services			—				—				587				—				(6	)
Loving Tan Intermediate II, Inc.	05/31/2028		Consumer Products			12.31	%		3M SOFR+700					4,963				4,874				4,863
Loving Tan Intermediate II, Inc. - Revolver	05/31/2028		Consumer Products			12.31	%		3M SOFR+700					347				347				340
Loving Tan Intermediate II, Inc. - Revolver (7)	05/31/2028		Consumer Products			—				—				284				—				(6	)
Mars Acquisition Holdings Corp.	05/14/2026		Media			10.96	%		3M SOFR+565					1,826				1,803				1,826
Mars Acquisition Holdings Corp. - Revolver (7)	05/14/2026		Media			—				—				1,209				—				—
MBS Holdings, Inc. - Revolver (7)	04/16/2027		Telecommunications			—				—				694				—				(10	)
MDI Buyer, Inc.	07/25/2028		Chemicals, Plastics and Rubber			10.82	%		3M SOFR+625					20,033				19,761				19,736
MDI Buyer, Inc. - Revolver	07/25/2028		Chemicals, Plastics and Rubber			10.81	%		3M SOFR+600					1,158				1,158				1,141
MDI Buyer, Inc. - Revolver (7)	07/25/2028		Chemicals, Plastics and Rubber			—				—				1,069				-				(5	)
Meadowlark Acquirer, LLC	12/10/2027		Business Services			11.20	%		3M SOFR+565					1,932				1,916				1,893
Meadowlark Acquirer, LLC. - Unfunded Revolver (7)	12/10/2027		Business Services			—				—				1,685				-				(34	)
Medina Health, LLC	10/20/2028		Healthcare, Education and Childcare			11.56	%		3M SOFR+625					9,924				9,763				9,825
Medina Health, LLC - Revolver	10/20/2028		Healthcare, Education and Childcare			11.56	%		3M SOFR+625					416				416				412
Medina Health, LLC - Revolver (7)	10/20/2028		Healthcare, Education and Childcare			—				—				2,358				—				(24	)
Megawatt Acquisitionco, Inc.	03/01/2030		Electronics			10.58	%		3M SOFR+525					13,000				12,806				12,805
Megawatt Acquisitionco, Inc. - Unfunded Revolver (7)	03/01/2030		Electronics			—				—				1,857				—				—
MOREGroup Holdings, Inc.	01/16/2030		Business Services			11.08	%		3M SOFR+590					25,000				24,644				24,750
MOREGroup Holdings, Inc. - Unfunded Term Loan (7)	01/16/2026		Business Services			—				—				6,124				—				—
MOREGroup Holdings, Inc. - Unfunded Revolver (7)	01/16/2030		Business Services			—				—				3,675				—				(37	)

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)—(Continued)

MARCH 31, 2024

(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			10.48	%		3M SOFR+515					482			$	482			$	482
Municipal Emergency Services, Inc. - Unfunded Term Loan A (7)	12/16/2024		Distribution			—				—				769				—				—
Municipal Emergency Services, Inc. - Unfunded Term Loan B (7)	12/16/2024		Distribution			—				—				2,510				—				—
Municipal Emergency Services, Inc. - Revolver (7)	09/28/2027		Distribution			—				—				1,880				—				—
NBH Group LLC - Revolver (7)	08/19/2026		Healthcare, Education and Childcare			—				—				1,163				—				(52	)
Neptune Flood Incorporated - Revolver (7)	05/09/2029		Insurance			—				—				541				—				—
NORA Acquisition, LLC	08/31/2029		Healthcare, Education and Childcare			11.68	%		3M SOFR+635					5,473				5,370				5,473
NORA Acquisition, LLC - Revolver (7)	08/31/2029		Healthcare, Education and Childcare			—				—				2,707				—				—
Omnia Exterior Solutions, LLC	12/29/2029		Diversified Conglomerate Service			10.80	%		3M SOFR+550					2,450				2,450				2,413
Omnia Exterior Solutions, LLC - Unfunded Term Loan (7)	05/01/2024		Diversified Conglomerate Service			—				—				350				—				(5	)
Omnia Exterior Solutions, LLC - Unfunded Term Loan 2 (7)	12/29/2025		Diversified Conglomerate Service			—				—				4,900				—				(25	)
Omnia Exterior Solutions, LLC - Revolver (7)	12/29/2029		Diversified Conglomerate Service			—				—				1,400				—				(21	)
ORL Acquisition, Inc.	09/03/2027		Business Services			14.70	%		3M SOFR+740					4,118				4,065				3,212
					(PIK 2.0%)
ORL Acquisition, Inc. - Revolver (7)	09/03/2027		Business Services			—				—				149				—				(33	)
OSP Embedded Purchaser, LLC	12/15/2029		Aerospace and Defense			11.16	%		3M SOFR+585					6,484				6,373				6,432
OSP Embedded Purchaser, LLC - Revolver (7)	12/15/2029		Aerospace and Defense			—				—				1,477				—				(12	)
Ox Two, LLC	05/18/2026		Building Materials			11.82	%		1M SOFR+751					13,578				13,472				13,578
Ox Two, LLC - Revolver (7)	05/18/2026		Building Materials			—				—				2,419				—				—
Pacific Purchaser, LLC - Unfunded Term Loan (7)	09/30/2028		Business Services			—				—				2,747				—				41
Pacific Purchaser, LLC - Revolver (7)	09/30/2028		Business Services			—				—				1,373				—				—
PCS MIDCO INC	03/01/2030		Financial Services			11.09	%		1M SOFR+575					11,310				11,145				11,143
PCS MIDCO INC - Unfunded Term Loan (7)	03/01/2026		Financial Services			—				—				3,955				—				—
PCS MIDCO INC - Funded Revolver	03/01/2030		Financial Services			11.08	%		1M SOFR+575					88				88				88
PCS MIDCO INC - Unfunded Reveolver (7)	03/01/2030		Financial Services			—				—				1,674				—				—
PL Acquisitionco, LLC - Revolver (7)	11/09/2027		Retail			—				—				3,236				—				(372	)
Pragmatic Institute, LLC	07/06/2028		Business Services			11.09	%		3M SOFR+575					34,810				34,408				29,762
Pragmatic Institute, LLC - Unfunded Term Loan (7)	07/06/2028		Business Services			—				—				7,193				—				(971	)
Pragmatic Institute, LLC - Revolver	07/06/2028		Business Services			11.08	%		3M SOFR+575					4,795				4,795				4,100
Quantic Electronics, LLC	11/19/2026		Aerospace and Defense			11.66	%		3M SOFR+635					1,476				1,468				1,446
Quantic Electronics, LLC - Unfunded Revolver (7)	08/17/2026		Aerospace and Defense			—				—				528				—				(11	)
Questex, LLC	09/09/2024		Media			9.72	%		3M SOFR+440					20,193				20,148				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					371				371				367
Radius Aerospace, Inc. - Revolver (7)	03/31/2025		Aerospace and Defense			—				—				1,856				—				(19	)
Rancho Health MSO, Inc.	12/18/2025		Healthcare, Education and Childcare			10.92	%		3M SOFR+585					78				78				78
Rancho Health MSO, Inc - Unfunded Term Loan (7)	12/18/2025		Healthcare, Education and Childcare			—				—				494				—				—
Rancho Health MSO, Inc. - Revolver	12/18/2025		Healthcare, Education and Childcare			10.95	%		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			11.45	%		3M SOFR+615					5,833				5,770				4,958
Recteq, LLC - Funded Revolver	01/29/2026		Consumer Products			11.80	%		3M SOFR+585					250				250				244
Recteq, LLC - Revolver (7)	01/29/2026		Consumer Products			—				—				876				—				(22	)
Research Now Group, Inc. and Dynata, LLC	12/20/2024		Business Services			11.07	%		3M SOFR+576					123				123				105
Riverpoint Medical, LLC - Revolver	06/20/2025		Healthcare, Education and Childcare			10.93	%		3M SOFR+510					91				91				91
Riverpoint Medical, LLC - Revolver (7)	06/20/2025		Healthcare, Education and Childcare			—				—				273				—				—
Rural Sourcing Holdings, Inc.	06/15/2029		Business Services			11.56	%		3M SOFR+625					287				282				282
Rural Sourcing Holdings, Inc. - Unfunded Term Loan (7)	06/15/2029		Business Services			—				—				860				—				—
Rural Sourcing Holdings, Inc. - Revolver (7)	06/15/2029		Business Services			—				—				860				—				(13	)
S101 Holdings, Inc. - Term Loan B	12/29/2026		Electronics			11.48	%		3M SOFR+615					2,277				2,255				2,254
S101 Holdings, Inc. - Term Loan C	12/29/2026		Electronics			11.48	%		3M SOFR+600					357				354				354
S101 Holdings, Inc. - Unfunded Term Loan 2 (7)	12/15/2024		Electronics			—				—				4,955				—				—
Sales Benchmark Index LLC - Revolver (7)	01/03/2025		Business Services			—				—				732				—				—
Sargent & Greenleaf Inc. - Revolver	12/20/2024		Electronics			12.93	%		3M SOFR+660					414				414				414
					(PIK 1.0%)
Sargent & Greenleaf Inc. - Revolver (7)	12/20/2024		Electronics			—				—				199				—				-
Schlesinger Global, Inc.	07/14/2025		Business Services			13.06	%		3M SOFR+715					4,743				4,717				4,649
					(PIK 5.6%)
Schlesinger Global, Inc. - Revolver	07/14/2025		Business Services			12.43	%		3M SOFR+715					31				31				31
					(PIK 5.6%)
Schlesinger Global, Inc. - Revolver (7)	07/14/2025		Business Services			—				—				8				—				—
Seaway Buyer, LLC - Revolver	06/13/2029		Chemicals, Plastics and Rubber			11.49	%		3M SOFR+615					313				313				303
Seaway Buyer, LLC	06/13/2029		Chemicals, Plastics and Rubber			11.46	%		3M SOFR+615					4,728				4,670				4,586
Seaway Buyer, LLC - Revolver (7)	06/13/2029		Chemicals, Plastics and Rubber			—				—				2,814				—				(84	)
Shiftkey, LLC	06/21/2027		Business Services			11.31	%		3M SOFR+601					17,685				17,558				17,172
Sigma Defense Systems, LLC	12/18/2027		Telecommunications			12.46	%		1M SOFR+715					26,017				25,419				25,757
Sigma Defense Systems, LLC - Revolver	12/18/2027		Telecommunications			12.46	%		1M SOFR+715					1,786				1,786				1,768
Sigma Defense Systems, LLC - Revolver (7)	12/18/2027		Telecommunications			—				—				1,190				—				(12	)
Simplicity Financial Marketing Group Holdings Inc.	12/02/2026		Financial Services			11.63	%		3M SOFR+640					3,428				3,422				3,388
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Term Loan (7)	02/09/2026		Financial Services			—				—				5,310				—				(53	)
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Revolver (7)	12/02/2026		Financial Services			—				—				1,043				—				(10	)
Smartronix, LLC	11/23/2028		Aerospace and Defense			11.58	%		3M SOFR+600					10,593				10,423				10,593
Smartronix, LLC - Unfunded Reveolver (7)	11/23/2027		Aerospace and Defense			—				—				3,941				—				—
Solutionreach, Inc. - Revolver (7)	07/17/2025		Communications			—				—				833				—				(1	)
Spendmend Holdings LLC	03/01/2028		Business Services			10.95	%		3M SOFR+565					285				283				285
Spendmend Holdings LLC - Revolver	03/01/2028		Business Services			10.95	%		3M SOFR+565					561				561				561
Spendmend Holdings LLC (7)	03/01/2025		Business Services			—				—				2,497				—				19

 

 

Cas

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

MARCH 31, 2024

(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			$	-			$	-
System Planning and Analysis, Inc.	08/16/2027				Aerospace and Defense			11.23	%		3M SOFR+590					1,289				1,280				1,288
System Planning and Analysis, Inc.. - Unfunded Term Loan (7)	08/16/2027				Aerospace and Defense			—				—				7,068				—				46
System Planning and Analysis, Inc.. - Unfunded Revolver (7)	08/16/2027				Aerospace and Defense			—				—				2,925				—				(3	)
TCG 3.0 Jogger Acquisitionco, Inc.	01/26/2029				Media			11.83	%		3M SOFR+650					9,000				8,849				8,843
TCG 3.0 Jogger Acquisitionco, Inc. - Unfunded Revolver (7)	01/26/2029				Media			—				—				1,725				—				(30	)
The Bluebird Group LLC	07/27/2026				Business Services			11.96	%		3M SOFR+665					2,544				2,514				2,544
The Bluebird Group LLC - Revolver (7)	07/27/2026				Business Services			—				—				734				—				—
The Vertex Companies, LLC	08/30/2027				Business Services			11.68	%		3M SOFR+635					185				182				185
The Vertex Companies, LLC - Revolver	08/30/2027				Business Services			11.43	%		3M SOFR+610					331				331				331
The Vertex Companies, LLC - Revolver (7)	08/30/2027				Business Services			—				—				409				—				—
TPC US Parent, LLC	11/22/2025				Food			10.93	%		3M SOFR+560					6,000				5,919				5,994
TransGo, LLC	12/29/2028				Machinery			11.33	%		3M SOFR+600					4,957				4,886				4,907
TransGo, LLC - Revolver (7)	12/29/2028				Machinery			—				—				2,775				—				(28	)
TWS Acquisition Corporation	06/16/2025				Education			11.73	%		3M SOFR+640					198				198				198
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					291				291				273
Tyto Athene, LLC - Revolver (7)	04/01/2026				Aerospace and Defense			—				—				73				—				(5	)
Urology Management Holdings, Inc.	06/15/2026				Healthcare, Education and Childcare			11.91	%		3M SOFR+665					4,178				4,178				4,128
Urology Management Holdings, Inc. - Unfunded Term Loan (7)	05/27/2024				Healthcare, Education and Childcare			—				—				3,033				—				(36	)
Watchtower Intermediate, LLC	12/01/2029				Electronics			11.31	%		3M SOFR+600					12,350				12,167				12,251
Watchtower Intermediate, LLC. - Unfunded Term Loan (7)	12/01/2025				Electronics			—				—				2,100				—				7
Watchtower Intermediate, LLC. - Revolver	12/01/2029				Electronics			11.31	%		3M SOFR+600					1,260				1,260				1,250
Watchtower Intermediate, LLC. - Revolver (7)	12/01/2029				Electronics			—				—				5,040				—				(40	)
Wildcat Buyerco, Inc.	02/27/2027				Electronics			11.06	%		3M SOFR+575					4,608				4,566				4,585
Wildcat Buyerco, Inc. - Unfunded Term Loan (7)	02/27/2027				Electronics			—				—				2,737				—				14
Wildcat Buyerco, Inc. - Revolver (7)	02/27/2027				Electronics			—				—				551				—				(3	)
Zips Car Wash, LLC	12/31/2024				Auto Sector			12.68	%		3M SOFR+735					2,591				2,580				2,532
							(PIK 1.5%)
Total First Lien Secured Debt																				576,343				567,102
Second Lien Secured Debt—12.7% of Net Assets
Best Practice Associates LLC	06/29/2027				Aerospace and Defense			14.46	%		3M SOFR+915					17,825				17,592				17,379
Burgess Point Purchaser Corporation	07/28/2030				Auto Sector			14.43	%		3M SOFR+910					8,000				7,682				7,920
ENC Parent Corporation	08/19/2029				Business Services			13.06	%		3M SOFR+776					7,500				7,444				6,600
Halo Buyer, Inc.	07/06/2026				Consumer Products			13.68	%		1M SOFR+835					32,500				32,261				31,688
QuantiTech LLC	02/04/2027				Aerospace and Defense			15.43	%		3M SOFR+1010					150				148				150
Total Second Lien Secured Debt																				65,127				63,737
Subordinated Debt/Corporate Notes—9.8% of Net Assets
Express Wash Acquisition Company, LLC	01/15/2029				Auto Sector			15.07	%		3M SOFR+976					22,219				21,615				22,352
Flock Financial, LLC (6), (11)	05/26/2027				Financial Services			—				—				34,000				33,430				26,860
Schlesinger Global, LLC - Promissory Note	07/26/2024				Business Services			12.31	%		3M SOFR+700					—				—				—
Total Subordinated Debt/Corporate Notes																				55,045				49,212
Preferred Equity/Partnership Interests—2.6% of Net Assets (6)
Ad.net Holdings, Inc.		—			Media			—				—				2,400				240				296
AFC Acquisitions, Inc. (9)		—			Distribution			—				—				490				749				786
AH Newco Equityholdings, LLC		—			Healthcare, Education and Childcare			6.00	%			—				211				500				944
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (9)		—			Media			—				—				1,135				1,135				1,161
Cartessa Aesthetics, LLC (9)		—			Distribution			—				—				3,562,500				3,563				5,618
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				835
Mars Intermediate Holdings II, Inc		—			Media			—				—				414				414				584
Magnolia Topco LP - Class A Preferred Equity (9)		—			Auto Sector			—				—				1,545				1,545				1,629
Magnolia Topco LP - Class B Preferred Equity  (9)		—			Auto Sector			—				—				1,018				643				689
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				44
TPC Holding Company, LP (8),(11)		—			Food			—				—				219				219				337
TWD Parent Holdings, LLC Preferred		—			Business Services			—				—				30				30				36
(The Vertex Companies, LLC)
Total Preferred Equity/Partnership Interests																				10,037				13,123
Common Equity/Partnership Interests/Warrants—24.7% of Net Assets (6)
A1 Garage Equity, LLC (9)		—			Personal, Food and Miscellaneous Services			—				—				2,193,038				2,193				2,539
ACP Big Top Holdings, L.P. - Common Equity					Manufacturing/Basic Industry			—				—				773,800				774				774
Ad.net Holdings, Inc.		—			Media			—				—				2,667				27				3
Affinion Group Holdings, Inc. (Warrants)	04/10/2024				Consumer Products			—				—				77,190				2,126				—
Aftermarket Drivetrain Products Holdings, LLC		—			Machinery			—				—				1,645				1,645				1,800
AG Investco LP (9)		—			Business Services			—				—				805,164				805				1,131
AG Investco LP (7), (9)		—			Business Services			—				—				194,836				—				—

 

 

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

MARCH 31, 2024

(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			$	146
AMCSI Crash Co-Invest, LP		—			Auto Sector			—				—				2,489,777				2,490				3,752
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				8,096
Atlas Investment Aggregator, LLC		—			Telecommunications			—				—				1,700,000				1,613				—
BioDerm, Inc.		—			Healthcare, Education and Childcare			—				—				1,312				1,312				1,287
Burgess Point Holdings, LP		—			Auto Sector			—				—				680				680				650
Carisk Parent, L.P. - Common Equity		—			Healthcare, Education and Childcare			—				—				169,231				169				172
Carnegie Holdco, LLC - Common Equity (9)		—			Education			—				—				1,680,300				1,680				1,680
Connatix Parent, LLC		—			Media			—				—				57,416				632				264
Consello Pacific Aggregator, LLC (9)		—			Business Services			—				—				782,891				783				744
Cowboy Parent LLC		—			Distribution			—				—				27,778				3,015				5,588
(Blackhawk Industrial Distribution, Inc.)
Crane 1 Acquisition Parent Holdings, L.P.		—			Personal, Food and Miscellaneous Services			—				—				113				104				187
Delta InvestCo LP (9)		—			Telecommunications			—				—				863,299				848				1,539
(Sigma Defense Systems, LLC)
Delta InvestCo LP (7), (9)		—			Telecommunications			—				—				277,745				—				—
(Sigma Defense Systems, LLC)
eCommission Holding Corporation (11)		—			Financial Services			—				—				80				1,005				2,385
EDS Topco, LP (11)		—			Aerospace and Defense			—				—				937,500				938				960
Exigo, LLC		—			Business Services			—				—				1,458,333				1,458				1,619
FedHC InvestCo LP (9)		—			Aerospace and Defense			—				—				14,578				489				1,335
FedHC InvestCo LP (7),(9)		—			Aerospace and Defense			—				—				5,150				—				—
FedHC InvestCo II LP (9)		—			Aerospace and Defense			—				—				20,882				2,175				2,018
Five Star Parent Holdings, LLC		—			Leisure, Amusement, Motion Pictures, Entertainment			—				—				655,714				656				649
Gauge ETE Blocker, LLC - Common Equity		—			Personal, Food and Miscellaneous Services			—				—				374,444				374				386
Gauge Lash Coinvest LLC		—			Consumer Products			—				—				992,792				651				4,727
Gauge Loving Tan, LP - Common Equity		—			Consumer Products			—				—				462,827				463				288
Gauge Schlesinger Coinvest, LLC		—			Business Services			—				—				9				8				7
GCOM InvestCo LP		—			Business Services			—				—				2,434				1,003				578
GMP Hills, LP - Common Equity		—			Distribution			—				—				3,747,470				3,747				3,935
Hancock Claims Consultants Investors, LLC (9)		—			Insurance			—				—				450,000				450				45
HPA SPQ Aggregator LP- Common Equity		—			Business Services			—				—				750,399				750				746
HV Watterson Holdings, LLC		—			Business Services			—				—				1,600,000				1,600				1,350
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				1,643
Imagine Topco, LP		—			Business Services			—				—				743,826				—				—
Infogroup Parent Holdings, Inc.		—			Other Media			—				—				181,495				2,040				2,558
(Data Axle, Inc.)
Ironclad Holdco, LLC (Applied Technical Services, LLC) (9)		—			Environmental Services			—				—				4,859				504				940
ITC Infusion Co-invest, LP (9)		—			Healthcare, Education and Childcare			—				—				162,445				1,645				2,312
ITC Rumba, LLC (9)		—			Healthcare, Education and Childcare			—				—				375,675				8				—
(Cano Health, LLC)
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				1,937
KL Stockton Co-Invest LP (Any Hour Services) (9)		—			Personal, Food and Miscellaneous Services			—				—				382,353				385				798
Lariat ecoserv Co-Invest Holdings, LLC (9)		—			Environmental Services			—				—				363,656				—				15
LEP Pequod Holdings, LP		—			Financial Services			—				—				350				865				1,006
Lightspeed Investment Holdco LLC		—			Healthcare, Education and Childcare			—				—				273,143				273				859
LJ Avalon, LP		—			Environmental Services			—				—				851,087				851				996
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.		—			Media			—				—				414				—				175
MDI Aggregator, LP		—			Chemicals, Plastics and Rubber			—				—				30,993				3,103				3,762
Meadowlark Title, LLC (9)		—			Business Services			—				—				815,385				802				—
Megawatt Acquisition Partners, LLC		—			Electronics			—				—				594,300				594				594
Municipal Emergency Services, Inc.		—			Distribution			—				—				3,920,145				3,984				5,802
NEPRT Parent Holdings, LLC (Recteq, LLC) (9)		—			Consumer Products			—				—				1,299				1,250				73
New Medina Health, LLC (9)		—			Healthcare, Education and Childcare			—				—				1,429,480				1,429				1,612
NORA Parent Holdings, LLC (9)		—			Healthcare, Education and Childcare			—				—				1,257				1,248				1,404
North Haven Saints Equity Holdings, LP(9)		—			Business Services			—				—				351,553				352				418
NXOF Holdings, Inc.		—			Aerospace and Defense			—				—				3,261				3				—
(Tyto Athene, LLC)
OceanSound Discovery Equity, LP (Holdco Sands Intermediate, LLC) (9)		—			Aerospace and Defense			—				—				98,286				983				983
OHCP V BC COI, L.P.		—			Distribution			—				—				691,666				690				603
OHCP V BC COI, L.P. (7)		—			Distribution			—				—				58,334				—				(8	)
ORL Holdco, Inc.		—			Business Services			—				—				638				6				—
OSP Embedded Aggregator, LP		—			Aerospace and Defense			—				—				870,536				871				879
PCS Parent, LP		—			Financial Services			—				—				421,304				421				421
PennantPark-TSO Senior Loan Fund II, LP (11)		—			Financial Services			—				—				12,269,640				12,270				12,765
Pink Lily Holdco, LLC (9)		—			Retail			—				—				1,044				1,044				9

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

MARCH 31, 2024

(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			$	-
Quad (U.S.) Co-Invest, L.P.		—			Business Services			—				—				2,958,706				2,959				3,557
QuantiTech InvestCo LP (9)		—			Aerospace and Defense			—				—				712				68				453
QuantiTech InvestCo LP (7),(9)		—			Aerospace and Defense			—				—				955				—				—
QuantiTech InvestCo II LP (9)		—			Aerospace and Defense			—				—				40				24				27
RFMG Parent, LP		—			Healthcare, Education and Childcare			—				—				1,050,000				1,050				1,271
(Rancho Health MSO, Inc.)
SBI Holdings Investments LLC		—			Business Services			—				—				36,585				366				334
(Sales Benchmark Index LLC)
Seaway Topco, LP		—			Chemicals, Plastics and Rubber			—				—				2,981				2,981				2,259
SP L2 Holdings, LLC		—			Consumer Products			—				—				881,966				882				458
SSC Dominion Holdings, LLC		—			Electronics			—				—				71				71				3,004
Class B (US Dominion, Inc.)
StellPen Holdings, LLC		—			Media			—				—				153,846				154				138
(CF512, Inc.)
SV Aero Holdings, LLC (9)		—			Aerospace and Defense			—				—				25				247				261
TAC LifePort Holdings, LLC (9)		—			Aerospace and Defense			—				—				254,206				250				427
TCG 3.0 Jogger Co-Invest, LP - Common Equity					Media