Published: 2024-08-07 16:07:28 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 JUNE 30, 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 August 7, 2024 was 65,296,094.

 

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PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS

 

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities as of June 30, 2024 (unaudited) and September 30, 2023		4
Consolidated Statements of Operations for the three and nine months ended June 30, 2024 and 2023 (unaudited)		5
Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2024 and 2023 (unaudited)		6
Consolidated Statements of Cash Flows for the nine months ended June 30, 2024 and 2023 (unaudited)		7
Consolidated Schedules of Investments as of June 30, 2024 (unaudited) and September 30, 2023		8
Notes to Consolidated Financial Statements (unaudited)		23
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		42
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		44
Item 3. Quantitative and Qualitative Disclosures About Market Risk		58
Item 4. Controls and Procedures		59
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		60
Item 1A. Risk Factors		60
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		60
Item 3. Defaults Upon Senior Securities		60
Item 4. Mine Safety Disclosures		60
Item 5. Other Information		60
Item 6. Exhibits		61
SIGNATURES		62

 

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PART I—CONSOLIDATED FINANCIAL INFORMATION

 

We are filing this Quarterly Report on Form 10-Q (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)

 

		June 30, 2024				September 30, 2023
		(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$854,364 and $816,754, respectively)		$	854,027			$	830,808
Non-controlled, affiliated investments (amortized cost—$56,193 and $55,787, respectively)			33,274				54,771
Controlled, affiliated investments (amortized cost—$342,429 and $245,386, respectively)			372,574				216,068
Total investments (amortized cost—$1,252,986 and $1,117,927, respectively)			1,259,875				1,101,647
Cash and cash equivalents (cost—$59,151 and $38,784, respectively)			59,152				38,775
Interest receivable			5,568				6,820
Distribution receivable			7,964				5,079
Due from affiliates			139				—
Prepaid expenses and other assets			—				4,656
Total assets			1,332,698				1,156,977
Liabilities
Truist Credit Facility payable, at fair value (cost—$450,456 and $212,420, respectively)			446,554				206,940
2026 Notes payable, net (par— $150,000)			148,345				147,669
2026 Notes-2 payable, net (par— $165,000)			162,866				162,226
Payable for investment purchased			64,551				99,949
Distributions payable			5,224				13,697
Base management fee payable			4,216				3,915
Incentive fee payable			3,345				3,310
Accounts payable and accrued expenses			3,218				6,754
Interest payable on debt			3,124				6,231
Due to affiliates			33				4,099
Total liabilities			841,476				654,790
Commitments and contingencies (See Note 11)
Net assets
Common stock, 65,296,094 and 65,224,500 shares issued and outstanding, respectively    Par value $0.001 per share and 100,000,000 shares authorized			65				65
Paid-in capital in excess of par value			746,768				746,466
Accumulated deficit			(255,611	)			(244,344	)
Total net assets		$	491,222			$	502,187
Total liabilities and net assets		$	1,332,698			$	1,156,977
Net asset value per share		$	7.52			$	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 June 30,								Nine Months Ended June 30,
		2024				2023				2024				2023
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	17,383			$	23,189			$	61,353			$	72,179
Payment-in-kind			1,904				5				2,093				16
Dividend income			977				11,786				2,292				12,917
Other income			392				595				2,595				1,428
From non-controlled, affiliated investments:
Interest			—				—				—			81
Payment-in-kind			—				297				347				310
From controlled, affiliated investments:
Interest			7,966				4,392				19,389				10,898
Payment-in-kind			995				361				2,484				2,150
Dividend income			7,387				4,386				16,765				11,344
Total investment income			37,004				45,011				107,318				111,323
Expenses:
Interest and expenses on debt			11,482				10,139				32,906				30,455
Base management fee			4,216				3,993				12,357				12,635
Incentive fee			3,345				4,870				9,684				10,591
General and administrative expenses			1,030				1,032				3,623				2,707
Administrative services expenses			450				840				1,189				1,373
Expenses before provision for taxes			20,523				20,874				59,759				57,761
Provision for taxes on net investment income			735				1,181				1,902				3,631
Net expenses			21,258				22,055				61,661				61,392
Net investment income			15,746				22,956				45,657				49,931
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments			(1,590	)			(5,193	)			(444	)			(15,742	)
Non-controlled and controlled, affiliated investments			(5,305	)			—				(35,474	)			(133,098	)
Debt extinguishment			—				—				—				(289	)
Provision for taxes on realized gain on investments			—				(1,700	)			(177	)			(2,417	)
Net realized gain (loss) on investments and debt			(6,895	)			(6,893	)			(36,095	)			(151,546	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments			(1,614	)			13,056				(15,412	)			(33,513	)
Non-controlled and controlled, affiliated investments			(3,483	)			223				38,592				90,634
Provision for taxes on unrealized appreciation (depreciation) on investments			—				—				(680	)			896
Debt appreciation (depreciation)			(8	)			(8,393	)			(1,578	)			(2,474	)
Net change in unrealized appreciation (depreciation) on investments and debt			(5,105	)			4,886				20,922				55,543
Net realized and unrealized gain (loss) from investments and debt			(12,000	)			(2,007	)			(15,173	)			(96,003	)
Net increase (decrease) in net assets resulting from operations		$	3,746			$	20,949			$	30,484			$	(46,072	)
Net increase (decrease) in net assets resulting from operations per common share		$	0.06			$	0.32			$	0.47			$	(0.71	)
Net investment income per common share		$	0.24			$	0.35			$	0.70			$	0.77

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

(In thousands, except share data)

 

		Three Months Ended June 30,								Nine Months Ended June 30,
		2024				2023				2024				2023
Net increase (decrease) in net assets resulting from operations:
Net investment income		$	15,746			$	22,956			$	45,657			$	49,931
Net realized gain (loss) on investments and debt			(6,895	)			(5,193	)			(35,918	)			(149,129	)
Net change in unrealized appreciation (depreciation) on investments			(5,097	)			13,279				23,180				57,121
Net change in provision for taxes on net realized gain (loss) on investments			—				(1,700	)			(177	)			(2,417	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments			—				—				(680	)			896
Net change in unrealized (appreciation) depreciation on debt			(8	)			(8,393	)			(1,578	)			(2,474	)
Net increase (decrease) in net assets resulting from operations			3,746				20,949				30,484				(46,072	)
Distributions to stockholders:
Distribution of net investment income			(14,355	)			(13,045	)			(41,751	)			(35,874	)
Total distributions to stockholders			(14,355	)			(13,045	)			(41,751	)			(35,874	)
Capital Transactions:
Public offering			552				—				552				—
Offering costs			(250	)			—				(250	)			—
Net increase in net assets resulting from capital transactions			302				—				302				—
Net increase (decrease) in net assets			(10,307	)			7,904				(10,965	)			(81,946	)
Net assets:
Beginning of period			501,529				495,715				502,187				585,565
End of period		$	491,222			$	503,619			$	491,222			$	503,619
Capital share activity:
Shares issued from public offering			71,594				—				71,594				—

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

		Nine Months Ended June 30,
		2024				2023
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	30,484			$	(46,072	)
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			(23,180	)			(57,121	)
Net change in unrealized appreciation (depreciation) on debt			1,578				2,474
Net realized (gain) loss on investments			35,918				148,840
Debt extinguishment realized loss			—				289
Net accretion of discount and amortization of premium			(2,102	)			(5,210	)
Purchases of investments			(752,062	)			(214,355	)
Payment-in-kind income			(4,924	)			(2,476	)
Proceeds from dispositions of investments			589,390				280,467
Amortization of deferred financing costs			1,316				1,341
(Increase) decrease in:
Interest receivable			1,252				(1,377	)
Receivables from investments sold			—				13,864
Distribution receivable			(2,885	)			(2,659	)
Due from affiliate			(139	)			—
Prepaid expenses and other assets			3,386				(8,000	)
Increase (decrease) in:
Due to affiliate			(4,066	)			1,774
Payable for investments purchased			(35,398	)			-
Interest payable on debt			(3,107	)			(3,464	)
Base management fee payable, net			301				(856	)
Incentive fee payable			35				4,870
Deferred tax liability			—				(896	)
Accounts payable and accrued expenses			(3,536	)			4,288
Net cash provided by (used in) operating activities			(167,739	)			115,721
Cash flows from financing activities:
Proceeds from public offering		$	552			$	—
Offering costs			(250	)			—
Distributions paid to stockholders			(50,222	)			(32,612	)
Repayments under SBA debetures			—				(20,000	)
Borrowings under Truist Credit Facility			423,036				122,500
Repayments under Truist Credit Facility			(185,000	)			(194,000	)
Net cash provided by (used in) financing activities			188,116				(124,112	)
Net increase (decrease) in cash equivalents			20,377				(8,391	)
Effect of exchange rate changes on cash			-				275
Cash and cash equivalents, beginning of period			38,775				54,775
Cash and cash equivalents, end of period		$	59,152			$	46,659
Supplemental disclosure of cash flow information:
Interest paid		$	34,697			$	32,578
Taxes paid		$	6,308			$	1,900
Non-cash exchanges and conversions		$	28,835			$	15,720

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)

JUNE 30, 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—173.9% of Net Assets (1), (2)
First Lien Secured Debt—115.7% of Net Assets
A1 Garage Merger Sub, LLC		12/22/2028		Personal, Food and Miscellaneous Services			11.44	%		3M SOFR+610					5,105			$	5,042			$	5,105
A1 Garage Merger Sub, LLC - Unfunded Term Loan (8)		12/21/2024		Personal, Food and Miscellaneous Services			—				—				1,788				—				27
A1 Garage Merger Sub, LLC - Revolver (8)		12/22/2028		Personal, Food and Miscellaneous Services			—				—				2,532				—				—
ACP Avenu Buyer, LLC		10/02/2029		Business Services			10.57	%		3M SOFR+525					1,247				1,230				1,209
ACP Avenu Buyer, LLC - Unfunded Term Loan (8)		04/02/2025		Business Services			—				—				1,799				—				(29	)
ACP Avenu Buyer, LLC - Revolver		10/02/2029		Business Services			10.58	%		3M SOFR+525					149				149				145
ACP Avenu Buyer, LLC - Revolver (8)		10/02/2029		Business Services			—				—				1,069				—				(32	)
ACP Falcon Buyer, Inc. - Revolver (8)		08/01/2029		Business Services			—				—				2,533				—				—
Ad.net Acquisition, LLC - Revolver (8)		05/07/2026		Media			—				—				444				—				—
Adweek Purchaser, LLC		05/30/2027		Printing and Publishing			12.33	%		3M SOFR+700					2,000				1,961				1,960
Adweek Purchaser, LLC - Unfunded Term Loan (8)		11/30/2025		Printing and Publishing			—				—				400				—				—
Aeronix, Inc. - Revolver (8)		12/12/2028		Aerospace and Defense			—				—				2,489				—				—
AFC Dell Holding Corp.		04/09/2027		Distribution			11.75	%		3M SOFR+640					13,340				13,340				13,206
Atlas Purchaser, Inc. - Third Out		05/06/2028		Telecommunications			12.46	%		3M SOFR+700					8,840				7,440				7,717
Atlas Purchaser, Inc. - Fourth Out		05/06/2028		Telecommunications			12.46	%		3M SOFR+700					4,760				655				652
Anteriad Holdings Inc (fka MeritDirect)		06/30/2026		Media			11.23	%		3M SOFR+590					1,189				1,184				1,189
Anteriad, LLC (f/k/a MeritDirect, LLC) - Funded Revolver		06/30/2026		Media			11.18	%		3M SOFR+585					230				230				230
Anteriad, LLC (f/k/a MeritDirect, LLC) - Revolver (8)		06/30/2026		Media			—				—				1,382				—				—
Applied Technical Services, LLC		12/29/2026		Environmental Services			11.23	%		3M SOFR+585					1,991				1,976				1,961
Applied Technical Services, LLC - Unfunded Term Loan (8)		07/17/2025		Environmental Services			—				—				2,637				—				(13	)
Applied Technical Services LLC - Revolver		12/29/2026		Environmental Services			13.25	%		3M SOFR+475					1,081				1,081				1,065
Applied Technical Services, LLC - Revolver (8)		12/29/2026		Environmental Services			—				—				721				—				(11	)
Arcfield Acquisition Corp. - Revolver (8)		08/04/2028		Aerospace and Defense			—				—				3,521				—				(18	)
Beacon Behavioral Support Service, LLC		06/21/2029		Healthcare, Education and Childcare			10.85	%		3M SOFR+550					15,000				14,775				14,775
Beacon Behavioral Support Service, LLC - Unfunded Term Loan (8)		12/21/2025		Healthcare, Education and Childcare			—				—				6,143				—				—
Beacon Behavioral Support Service, LLC - Revolver (8)		06/21/2029		Healthcare, Education and Childcare			—				—				1,206				—				—
Berwick Industrial Park		05/02/2024		Buildings and Real Estate			11.50	%			—				4,000				4,062				3,972
Beta Plus Technologies, Inc.		07/01/2029		Business Services			11.08	%		3M SOFR+575					4,925				4,855				4,827
Big Top Holdings, LLC - Unfunded Revolver (8)		02/07/2030		Manufacturing/Basic Industry			—				—				1,155				—				(9	)
BioDerm, Inc. - Revolver		01/31/2028		Healthcare, Education and Childcare			11.82	%		3M SOFR+650					589				589				582
BioDerm, Inc. - Revolver (8)		01/31/2028		Healthcare, Education and Childcare			—				—				482				—				(6	)
Blackhawk Industrial Distribution, Inc.		09/17/2026		Distribution			11.73	%		3M SOFR+640					6,295				6,251				6,247
						(PIK 2.0%)
Blackhawk Industrial Distribution, Inc. - Unfunded Term Loan (8)		09/17/2026		Distribution			—				—				2,368				—				(24	)
BlackHawk Industrial Distribution, Inc. - Revolver		09/17/2026		Distribution			11.73	%		3M SOFR+640					1,487				1,487				1,480
Blackhawk Industrial Distribution, Inc. - Revolver (8)		09/17/2026		Distribution			—				—				1,945				—				(10	)
BlueHalo Financing Holdings, LLC		10/31/2025		Aerospace and Defense			10.08	%		3M SOFR+475					1,112				1,097				1,096
Broder Bros., Co.		12/04/2025		Consumer Products			11.60	%		3M SOFR+626					9,589				9,589				9,589
Carisk Buyer, Inc. - Unfunded Term Loan (8)		12/01/2029		Healthcare, Education and Childcare			—				—				4,813				—				24
Carisk Buyer, Inc. - Revolver (8)		12/01/2029		Healthcare, Education and Childcare			—				—				1,750				—				(9	)
Carnegie Dartlet, LLC		02/07/2030		Education			10.84	%		3M SOFR+550					12,968				12,776				12,773
Carnegie Dartlet, LLC - Unfunded Term Loan (8)		02/07/2026		Education			—				—				10,017				—				(50	)
Carnegie Dartlet, LLC - Unfunded Revolver (8)		02/07/2030		Education			—				—				3,339				—				(50	)
Cartessa Aesthetics, LLC		06/14/2028		Distribution			11.08	%		3M SOFR+575					28,810				28,385				28,810
Cartessa Aesthetics, LLC - Revolver		06/14/2028		Distribution			11.08	%		3M SOFR+575					1,265				1,265				1,265
Cartessa Aesthetics, LLC - Revolver (8)		06/14/2028		Distribution			—				—				2,297				—				—
CF512, Inc.		08/20/2026		Media			11.53	%		3M SOFR+619					6,542				6,488				6,444

 

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

JUNE 30, 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)
CF512, Inc. - Revolver (8)		08/20/2026		Media			—				—				909				—			$	(14	)
Compex Legal Services, Inc.		02/09/2026		Business Services			10.88	%		3M SOFR+555					941				935				941
Compex Legal Services, Inc. - Revolver		02/07/2025		Business Services			10.88	%		3M SOFR+555					459				459				459
Compex Legal Services, Inc. - Revolver (8)		02/07/2025		Business Services			—				—				197				—				—
Confluent Health, LLC		11/30/2028		Healthcare, Education and Childcare			12.84	%		3M SOFR+750					1,975				1,854				1,975
Connatix Buyer, Inc. - Revolver (8)		07/13/2027		Media			—				—				1,875				—				(38	)
Crane 1 Services, Inc. - Revolver		08/16/2027		Personal, Food and Miscellaneous Services			10.19	%		3M SOFR+486					287				283				287
Crane 1 Services, Inc. - Revolver (8)		08/16/2027		Personal, Food and Miscellaneous Services			—				—				435				—				(1	)
Dr. Squatch, LLC		08/31/2027		Personal and Non-Durable Consumer Products			11.17	%		3M SOFR+585					8,142				8,079				8,142
Dr. Squatch, LLC - Funded Revolver		08/31/2027		Personal, Food and Miscellaneous Services			11.19	%		3M SOFR+585					2,326				2,326				2,326
DRS Holdings III, Inc.		11/03/2025		Consumer Products			11.69	%		3M SOFR+635					6				6				6
DRS Holdings III, Inc. - Revolver (8)		11/03/2025		Consumer Products			—				—				1,783				—				(7	)
EDS Buyer, LLC		12/22/2028		Aerospace and Defense			11.08	%		3M SOFR+575					17,292				17,073				17,033
EDS Buyer, LLC - Revolver Loan (8)		12/22/2028		Aerospace and Defense			—				—				1,915				—				(29	)
ETE Intermediate II, LLC - Revolver		05/25/2029		Personal, Food and Miscellaneous Services			11.83	%		3M SOFR+650					1,215				1,215				1,215
ETE Intermediate II, LLC - Revolver (8)		05/25/2029		Personal, Food and Miscellaneous Services			—				—				442				—				—
Eval Home Health Solutions Intermediate, LLC		05/10/2030		Healthcare, Education and Childcare			11.09	%		3M SOFR+575					7,980				7,861				7,860
Eval Home Health Solutions Intermediate, LLC - Revolver (8)		05/10/2030		Healthcare, Education and Childcare			—				—				822				—				(12	)
Exigo Intermediate II, LLC		03/15/2027		Business Services			11.69	%		3M SOFR+635					24,189				23,959				24,008
Exigo Intermediate II, LLC - Revolver (8)		03/15/2027		Business Services			—				—				1,856				—				(14	)
Five Star Buyer, Inc.		02/23/2028		Leisure, Amusement, Motion Pictures, Entertainment			12.50	%		3M SOFR+710					196				196				195
Five Star Buyer, Inc. - Revolver (8)		02/23/2028		Leisure, Amusement, Motion Pictures, Entertainment			—				—				741				—				(6	)
Gauge ETE Blocker, LLC - Promissory Note		05/19/2029		Personal, Food and Miscellaneous Services			12.56	%			—				215				215				215
Graffiti Buyer, Inc.		08/10/2027		Distribution			10.93	%		3M SOFR+560					884				877				875
Graffiti Buyer, Inc. - Unfunded Term Loan (8)		08/10/2027		Distribution			—				—				1,079				—				(3	)
Graffiti Buyer, Inc. - Revolver (8)		08/10/2027		Distribution			—				—				769				—				(8	)
Halo Buyer, Inc.		06/30/2025		Consumer Products			9.94	%		3M SOFR+460					1,660				1,502				1,498
Hancock Roofing and Construction L.L.C.		12/31/2026		Insurance			10.94	%		1M SOFR+560					680				680				639
Hancock Roofing and Construction L.L.C. - Revolver (8)		12/31/2026		Insurance			—				—				70				—				(4	)
HEC Purchaser Corp.		06/17/2029		Healthcare, Education and Childcare			10.84	%		3M SOFR+550					8,000				7,900				7,900
Hills Distribution, Inc. - Unfunded Term Loan (8)		11/07/2025		Distribution			—				—				9,144				—				—
HV Watterson Holdings, LLC		12/17/2026		Business Services			11.73	%		1M SOFR+640					276				275				264
HV Watterson Holdings, LLC - Revolver		12/17/2026		Business Services			11.73	%		1M SOFR+640					1,200				1,200				1,146
HV Watterson Holdings, LLC - Revolver (8)		12/17/2026		Business Services			—				—				50				—				(2	)
HW Holdco, LLC		05/10/2026		Media			11.68	%		3M SOFR+640					11,182				11,153				11,182
HW Holdco, LLC - Revolver (8)		05/10/2026		Media			—				—				3,387				—				—
IG Investment Holdings LLC		09/22/2028		Business Services			11.33	%		3M SOFR+600					105				104				103
IG Investments Holdings, LLC - Revolver (8)		09/22/2027		Business Services			—				—				722				—				(13	)
Imagine Acquisitionco, LLC - Revolver (8)		11/15/2027		Business Services			—				—				1,685				—				(8	)
Infinity Home Services Holdco, Inc.		12/28/2028		Personal, Food and Miscellaneous Services			12.19	%		3M SOFR+685					3,749				3,739				3,749
Infinity Home Services Holdco, Inc. (CAD) (11)		12/28/2028		Personal, Food and Miscellaneous Services			10.96	%		3M SOFR+600					CAD 2,562				1,845				1,845
Infinity Home Services Holdco, Inc. - 1st Amendment Unfunded Term Loan (8)		11/17/2025		Personal, Food and Miscellaneous Services			—				—				8,241				—				(21	)
Infinity Home Services Holdco, Inc. - Revolver		12/28/2028		Personal, Food and Miscellaneous Services			14.25	%		3M SOFR+575					194				194				194
Infinity Home Services Holdco, Inc. - Revolver (8)		12/28/2028		Personal, Food and Miscellaneous Services			—				—				1,098				—				—
Infolinks Media Buyco, LLC		11/01/2026		Media			10.84	%		3M SOFR+550					2,697				2,669				2,670
Integrity Marketing Acquisition, LLC		08/27/2026		Insurance			11.48	%		3M SOFR+615					10,597				10,564				10,544
Integrity Marketing Acquisition, LLC - Unfunded Term Loan (8)		08/31/2025		Insurance			—				—				1,614				—				—
Integrity Marketing Acquisition, LLC - Revolver (8)		08/31/2025		Insurance			—				—				160				—				—
Inventus Power, Inc. - Revolver (8)		06/30/2025		Electronics			—				—				1,729				—				(35	)

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)—(Continued)

JUNE 30, 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)
ITI Holdings, Inc.		03/03/2028		Business Services			10.98	%		3M SOFR+565					8,770			$	8,662			$	8,770
ITI Holdings, Inc. - Revolver		03/03/2028		Business Services			13.00	%		3M SOFR+450					1,180				1,180				1,180
ITI Holdings, Inc. - Revolver (8)		03/03/2028		Business Services			—				—				310				—				—
Kinetic Purchaser, LLC		11/10/2027		Consumer Products			11.48	%		3M SOFR+615					3,099				3,019				3,099
Kinetic Purchaser, LLC - Revolver (8)		11/10/2026		Consumer Products			—				—				4,854				—				—
Lash OpCo, LLC		02/18/2027		Consumer Products			13.18	%		1M SOFR+785					2,865				2,831				2,836
						(PIK 5.1%)
Lash OpCo, LLC - Revolver		08/16/2026		Consumer Products			13.18	%		1M SOFR+785					2,650				2,650				2,624
						(PIK 5.1%)
Lash OpCo, LLC - Revolver (8)		08/16/2026		Consumer Products			—				—				317				—				(3	)
LAV Gear Holdings, Inc.		10/31/2025		Leisure, Amusement, Motion Pictures, Entertainment			11.76	%		1M SOFR+643					2,037				2,037				2,013
Ledge Lounger, Inc.		11/09/2026		Consumer Products			11.98	%		3M SOFR+665					9,016				8,921				8,835
Ledge Lounger, Inc. - Revolver		11/09/2026		Consumer Products			11.98	%		3M SOFR+665					644				644				631
Ledge Lounger, Inc. - Revolver (8)		11/09/2026		Consumer Products			—				—				1,288				—				(26	)
Lightspeed Buyer Inc.		02/03/2026		Healthcare, Education and Childcare			10.69	%		1M SOFR+535					2,181				2,173				2,181
Lightspeed Buyer Inc. - Revolver (8)		02/03/2026		Healthcare, Education and Childcare			—				—				1,166				—				—
LJ Avalon Holdings, LLC		02/01/2030		Environmental Services			10.58	%		1M SOFR+525					569				561				569
LJ Avalon Holdings, LLC - Unfunded Term Loan (8)		07/31/2024		Environmental Services			—				—				3,313				—				26
LJ Avalon Holdings, LLC - Revolver (8)		01/31/2030		Environmental Services			—				—				587				—				—
Loving Tan Intermediate II, Inc.		05/31/2028		Consumer Products			12.34	%		3M SOFR+700					4,950				4,864				4,913
Loving Tan Intermediate II, Inc. - Revolver		05/31/2028		Consumer Products			12.34	%		3M SOFR+700					347				347				344
Loving Tan Intermediate II, Inc. - Revolver (8)		05/31/2028		Consumer Products			—				—				284				—				(2	)
Mars Acquisition Holdings Corp.		05/14/2026		Media			10.98	%		3M SOFR+565					2,814				2,784				2,814
Mars Acquisition Holdings Corp. - Revolver		05/14/2026		Media			10.98	%		3M SOFR+565					806				806				806
Mars Acquisition Holdings Corp. - Revolver (8)		05/14/2026		Media			—				—				403				—				—
MBS Holdings, Inc. - Revolver (8)		04/16/2027		Telecommunications			—				—				694				—				—
MDI Buyer, Inc.		07/25/2028		Chemicals, Plastics and Rubber			11.34	%		3M SOFR+600					19,982				19,722				19,686
MDI Buyer, Inc. - Revolver		07/25/2028		Chemicals, Plastics and Rubber			10.82	%		3M SOFR+550					1,381				1,381				1,360
MDI Buyer, Inc. - Revolver (8)		07/25/2028		Chemicals, Plastics and Rubber			—				—				846				—				(4	)
Meadowlark Acquirer, LLC		12/10/2027		Business Services			11.23	%		3M SOFR+590					1,927				1,911				1,879
Meadowlark Acquirer, LLC - Unfunded Revolver (8)		12/10/2027		Business Services			—				—				1,685				—				(42	)
Medina Health, LLC		10/20/2028		Healthcare, Education and Childcare			11.58	%		3M SOFR+625					9,900				9,745				9,900
Medina Health, LLC - Revolver (8)		10/20/2028		Healthcare, Education and Childcare			—				—				2,774				—				—
Megawatt Acquisitionco, Inc. - Revolver		03/01/2030		Electronics			10.59	%		3M SOFR+525					390				390				390
Megawatt Acquisitionco, Inc. - Unfunded Revolver (8)		03/01/2030		Electronics			—				—				1,467				—				—
Mineola 212, LLC		06/24/2025		Buildings and Real Estate			13.00	%			—				3,500				3,483				3,483
MOREGroup Holdings, Inc.		01/16/2030		Business Services			11.08	%		3M SOFR+575					12,469				12,296				12,344
MOREGroup Holdings, Inc. - Unfunded Term Loan (8)		01/16/2026		Business Services			—				—				6,124				—				—
MOREGroup Holdings, Inc. - Unfunded Revolver (8)		01/16/2030		Business Services			—				—				3,675				—				(37	)
Municipal Emergency Services, Inc.		09/28/2027		Distribution			10.50	%		3M SOFR+515					786				786				786
Municipal Emergency Services, Inc. - Unfunded Term Loan A (8)		12/16/2024		Distribution			—				—				464				—				—
Municipal Emergency Services, Inc. - Unfunded Term Loan B (8)		12/16/2024		Distribution			—				—				2,510				—				—
Municipal Emergency Services, Inc. - Revolver (8)		09/28/2027		Distribution			—				—				1,880				—				—
NBH Group LLC - Revolver (8)		08/19/2026		Healthcare, Education and Childcare			—				—				1,163				—				(58	)
NORA Acquisition, LLC		08/31/2029		Healthcare, Education and Childcare			11.68	%		3M SOFR+635					5,459				5,359				5,459
NORA Acquisition, LLC - Revolver (8)		08/31/2029		Healthcare, Education and Childcare			—				—				2,707				—				—
NP Riverhead Industrial, LLC		05/24/2025		Buildings and Real Estate			14.50	%			—				5,000				4,978				4,975
Omnia Exterior Solutions, LLC		12/29/2029		Diversified Conglomerate Service			10.83	%		3M SOFR+550					6,294				6,260				6,199
Omnia Exterior Solutions, LLC - Unfunded Term Loan 2 (8)		12/29/2025		Diversified Conglomerate Service			—				—				1,400				—				(7	)

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

JUNE 30, 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)
Omnia Exterior Solutions, LLC - Revolver (8)		12/29/2029		Diversified Conglomerate Service			—				—				1,400				—			$	(21	)
ORL Acquisition, Inc.		09/03/2027		Business Services			14.73	%		3M SOFR+940					4,107				4,056				3,203
						(PIK 7.5%)
ORL Acquisition, Inc. - Revolver (8)		09/03/2027		Business Services			—				—				149				—				(33	)
OSP Embedded Purchaser, LLC		12/15/2029		Aerospace and Defense			11.18	%		3M SOFR+585					6,468				6,359				6,280
OSP Embedded Purchaser, LLC - Revolver (8)		12/15/2029		Aerospace and Defense			—				—				1,477				—				(43	)
Ox Two, LLC		05/18/2026		Building Materials			11.85	%		1M SOFR+651					13,460				13,363				13,460
Ox Two, LLC - Revolver (8)		05/18/2026		Building Materials			—				—				2,419				—				—
Pacific Purchaser, LLC - Unfunded Term Loan (8)		09/30/2028		Business Services			—				—				2,747				—				58
Pacific Purchaser, LLC - Revolver (8)		09/30/2028		Business Services			—				—				1,373				—				8
PCS MIDCO INC		03/01/2030		Financial Services			11.10	%		1M SOFR+575					468				463				463
PCS MIDCO INC - Unfunded Term Loan (8)		03/01/2026		Financial Services			—				—				3,955				—				—
PCS MIDCO INC - Funded Revolver		03/01/2030		Financial Services			11.10	%		1M SOFR+575					308				308				305
PCS MIDCO INC - Unfunded Revolver (8)		03/01/2030		Financial Services			—				—				1,454				—				(15	)
PlayPower, Inc.		05/10/2026		Leisure, Amusement, Motion Pictures, Entertainment			10.95	%		3M SOFR+550					5,246				4,959				5,167
PL Acquisitionco, LLC - Revolver (8)		11/09/2027		Retail			—				—				3,236				—				(647	)
Pragmatic Institute, LLC (7)		07/06/2028		Business Services			12.85	%		3M SOFR+750					35,762				35,134				22,977
						(PIK 12.8%)
Pragmatic Institute, LLC - Revolver (7)		07/06/2028		Business Services			12.82	%		3M SOFR+750					4,938				4,905				3,173
						(PIK 12.8%)
Quantic Electronics, LLC		11/19/2026		Aerospace and Defense			11.68	%		3M SOFR+635					1,472				1,465				1,457
Quantic Electronics, LLC - Funded Revolver		08/17/2026		Aerospace and Defense			11.70	%		3M SOFR+635					264				264				263
Quantic Electronics, LLC - Unfunded Revolver (8)		08/17/2026		Aerospace and Defense			—				—				264				—				(3	)
Radius Aerospace, Inc. - Revolver		03/31/2025		Aerospace and Defense			11.24	%		3M SOFR+575					631				631				618
Radius Aerospace, Inc. - Revolver (8)		03/31/2025		Aerospace and Defense			—				—				1,596				—				(32	)
Rancho Health MSO, Inc.		12/18/2025		Healthcare, Education and Childcare			10.90	%		3M SOFR+550					362				362				362
Rancho Health MSO, Inc. - Unfunded Term Loan (8)		12/18/2025		Healthcare, Education and Childcare			—				—				210				—				—
Rancho Health MSO, Inc. - Revolver		12/18/2025		Healthcare, Education and Childcare			10.90	%		3M SOFR+550					210				210				210
Rancho Health MSO, Inc. - Revolver (8)		12/18/2025		Healthcare, Education and Childcare			—				—				315				—				—
Reception Purchaser, LLC		02/28/2028		Transportation			11.48	%		3M SOFR+615					10,818				9,633				8,654
Recteq, LLC - Revolver (8)		01/29/2026		Consumer Products			—				—				1,127				—				(17	)
Research Now Group, LLC and Dynata, LLC (6)		12/20/2024		Business Services			—				—				124				124				105
Riverpoint Medical, LLC - Revolver		06/20/2025		Healthcare, Education and Childcare			10.93	%		3M SOFR+560					182				182				182
Riverpoint Medical, LLC - Revolver (8)		06/20/2025		Healthcare, Education and Childcare			—				—				182				—				—
RTIC Subsidiary Holdings, LLC		05/03/2029		Consumer Products			11.09	%		3M SOFR+575					30,000				29,554				29,400
RTIC Subsidiary Holdings, LLC - Revolver (8)		05/03/2029		Consumer Products			—				—				5,422				—				(108	)
Rural Sourcing Holdings, Inc.		06/15/2029		Business Services			11.08	%		3M SOFR+575					1,143				1,126				1,132
Rural Sourcing Holdings, Inc. - Unfunded Term Loan (8)		06/27/2026		Business Services			—				—				1,146				—				(6	)
Rural Sourcing Holdings, Inc. - Revolver (8)		06/15/2029		Business Services			—				—				860				—				(9	)
S101 Holdings, Inc. - Term Loan B		12/29/2026		Electronics			11.45	%		3M SOFR+615					2,265				2,244				2,243
S101 Holdings, Inc. - Term Loan C		12/29/2026		Electronics			11.45	%		3M SOFR+615					356				352				352
S101 Holdings, Inc. - Unfunded Term Loan 2 (8)		12/15/2024		Electronics			—				—				4,955				—				—
Safe Haven Defense US LLC - Term Loan		05/23/2029		Building Materials			10.58	%		3M SOFR+525					9,000				8,865				8,865
Safe Haven Defense US LLC - Revolver (8)		05/23/2029		Building Materials			—				—				1,114				—				—
Sales Benchmark Index LLC - Revolver (8)		01/03/2025		Business Services			—				—				732				—				—
Sargent & Greenleaf Inc. - Revolver		12/20/2024		Electronics			11.94	%		3M SOFR+650					457				457				457
						(PIK 1.0%)
Sargent & Greenleaf Inc. - Revolver (8)		12/20/2024		Electronics			—				—				155				—				—

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

JUNE 30, 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)
Schlesinger Global, Inc.		07/14/2025		Business Services			13.69	%		3M SOFR+835					4,811			$	4,788			$	4,739
						(PIK 5.6%)
Schlesinger Global, Inc. - Revolver		07/14/2025		Business Services			13.69	%		3M SOFR+835					32				32				31
						(PIK 5.6%)
Schlesinger Global, Inc. - Revolver (8)		07/14/2025		Business Services			—				—				8				—				—
Seaway Buyer, LLC		06/13/2029		Chemicals, Plastics and Rubber			11.48	%		3M SOFR+615					4,716				4,660				4,563
Seaway Buyer, LLC - Revolver		06/13/2029		Chemicals, Plastics and Rubber			11.48	%		3M SOFR+615					313				313				302
Seaway Buyer, LLC - Revolver (8)		06/13/2029		Chemicals, Plastics and Rubber			—				—				2,814				—				(91	)
Shiftkey, LLC		06/21/2027		Business Services			11.35	%		3M SOFR+601					17,640				17,516				16,917
Sigma Defense Systems, LLC		12/18/2027		Telecommunications			12.49	%		1M SOFR+715					25,901				25,331				25,642
Sigma Defense Systems, LLC - Revolver		12/18/2027		Telecommunications			12.49	%		1M SOFR+715					1,701				1,701				1,684
Sigma Defense Systems, LLC - Revolver (8)		12/18/2027		Telecommunications			—				—				1,984				—				(20	)
Simplicity Financial Marketing Group Holdings Inc.		12/02/2026		Financial Services			11.67	%		3M SOFR+625					3,420				3,414				3,380
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Term Loan (8)		02/09/2026		Financial Services			—				—				5,310				—				(53	)
							—				—
Simplicity Financial Marketing Group Holdings Inc. - Unfunded Revolver (8)		12/02/2026		Financial Services			—				—				1,043				—				(13	)
Smartronix, LLC		11/23/2028		Aerospace and Defense			11.58	%		3M SOFR+600					5,579				5,493				5,579
Smartronix, LLC - Unfunded Revolver (8)		11/23/2027		Aerospace and Defense			—				—				3,941				—				—
Solutionreach, Inc. - Revolver (8)		07/17/2025		Communications			—				—				833				—				—
Spendmend Holdings LLC		03/01/2028		Business Services			10.98	%		3M SOFR+565					284				282				284
Spendmend Holdings LLC - Unfunded Term Loan (8)		03/01/2025		Business Services			—				—				2,497				—				19
Spendmend Holdings LLC - Revolver		03/01/2028		Business Services			10.98	%		3M SOFR+565					561				561				561
Spendmend Holdings LLC - Revolver (8)		03/01/2028		Business Services			—				—				841				—				—
System Planning and Analysis, Inc.		08/16/2027		Aerospace and Defense			11.16	%		3M SOFR+590					1,286				1,277				1,286
System Planning and Analysis, Inc. - Unfunded Term Loan (8)		08/16/2027		Aerospace and Defense			—				—				7,068				—				53
System Planning and Analysis, Inc. - Unfunded Revolver (8)		08/16/2027		Aerospace and Defense			—				—				2,925				—				—
TCG 3.0 Jogger Acquisitionco, Inc.		01/26/2029		Media			11.84	%		3M SOFR+650					8,978				8,833				8,888
TCG 3.0 Jogger Acquisitionco, Inc. - Unfunded Revolver (8)		01/26/2029		Media			—				—				1,725				—				(17	)
The Bluebird Group LLC		07/27/2026		Business Services			11.98	%		3M SOFR+665					2,539				2,512				2,539
The Bluebird Group LLC - Revolver (8)		07/27/2026		Business Services			—				—				734				—				—
The Vertex Companies, LLC		08/30/2027		Business Services			11.69	%		3M SOFR+635					184				181				186
The Vertex Companies, LLC - Revolver		08/30/2027		Business Services			11.44	%		3M SOFR+610					361				361				361
The Vertex Companies, LLC - Revolver (8)		08/30/2027		Business Services			—				—				379				—				—
TPC US Parent, LLC		11/22/2025		Food			10.93	%		3M SOFR+560					5,985				5,917				5,985
TPCN Midco, LLC		06/26/2029		Diversified Conglomerate Service			11.09	%		3M SOFR+575					4,000				3,940				3,940
TPCN Midco, LLC - Unfunded Term Loan (8)		06/26/2026		Diversified Conglomerate Service			—				—				5,894				—				—
TPCN Midco, LLC - Unfunded Revolver (8)		06/26/2029		Diversified Conglomerate Service			—				—				1,160				—				—
TransGo, LLC		12/29/2028		Machinery			11.34	%		3M SOFR+600					4,790				4,722				4,790
TransGo, LLC - Revolver (8)		12/29/2028		Machinery			—				—				2,775				—				—
TWS Acquisition Corporation		06/16/2025		Education			11.74	%		3M SOFR+640					638				637				638
TWS Acquisition Corporation - Revolver (8)		06/16/2025		Education			—				—				1,644				—				—
Tyto Athene, LLC (New Issue) - Revolver		04/01/2026		Aerospace and Defense			10.99	%		3M SOFR+565					160				160				149
Tyto Athene, LLC (New Issue) - Revolver (8)		04/01/2026		Aerospace and Defense			—				—				204				—				(14	)
Urology Management Holdings, Inc.		06/15/2026		Healthcare, Education and Childcare			11.76	%		3M SOFR+650					7,201				7,201				7,151
Watchtower Intermediate, LLC		12/01/2029		Electronics			11.33	%		3M SOFR+600					12,319				12,140				12,208
Watchtower Intermediate, LLC. - Unfunded Term Loan (8)		12/01/2025		Electronics			—				—			2100					—				5
Watchtower Intermediate, LLC. - Revolver (8)		12/01/2029		Electronics			—				—				6,300				—				(57	)
Wildcat Buyerco, Inc.		02/27/2027		Electronics			11.08	%		3M SOFR+575					4,597				4,558				4,597
Wildcat Buyerco, Inc. - Unfunded Term Loan (8)		02/27/2027		Electronics			—				—				2,737				—				27
Wildcat Buyerco, Inc. - Revolver (8)		02/27/2027		Electronics			—				—				551				—				—
Zips Car Wash, LLC		12/31/2024		Auto Sector			12.68	%		3M SOFR+735					2,596				2,589				2,499
						(PIK 1.5%)
Total First Lien Secured Debt																			584,995				568,266

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

JUNE 30, 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)
Second Lien Secured Debt—13.3% of Net Assets
Best Practice Associates LLC		06/29/2027				Aerospace and Defense			14.48	%		3M SOFR+915					17,825			$	17,601			$	17,290
Burgess Point Purchaser Corporation		07/28/2030				Auto Sector			14.44	%		3M SOFR+910					8,000				7,689				7,920
ENC Parent Corporation		08/19/2029				Business Services			13.10	%		3M SOFR+776					7,500				7,445				6,375
Halo Buyer, Inc.		07/06/2026				Consumer Products			13.69	%		1M SOFR+835					32,500				32,284				31,850
QuantiTech LLC		02/04/2027				Aerospace and Defense			15.44	%		3M SOFR+1010					150				148				150
Team Services Group, LLC		12/18/2028				Healthcare, Education and Childcare			14.58	%		3M SOFR+943					2,000				1,998				1,990
Total Second Lien Secured Debt																					67,165				65,575
Subordinated Debt/Corporate Notes—5.4% of Net Assets
Beacon Behavioral Holdings LLC		06/21/2030				Healthcare, Education and Childcare			15.00	%			—				3,105				3,058				3,058
Express Wash Acquisition Company, LLC		01/15/2029				Auto Sector			17.60	%		3M SOFR+1226					23,217				22,633				23,333
								(PIK 12.0%)
Schlesinger Global, LLC - Promissory Note		07/26/2024				Business Services			12.33	%		3M SOFR+700					—				—				—
Total Subordinated Debt/Corporate Notes																					25,691				26,391
Preferred Equity/Partnership Interests—3.0% of Net Assets (6)
Ad.net Holdings, Inc.			—			Media			—				—				2,400				240				248
AFC Acquisitions, Inc. Preferred Equity (10)			—			Distribution			—				—				507				780				920
AH Newco Equityholdings, LLC			—			Healthcare, Education and Childcare			6.00	%			—				211				500				505
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (10)			—			Media			—				—				1,135				1,135				1,304
Cartessa Aesthetics, LLC (10)			—			Distribution			—				—				3,562,500				3,563				5,969
Gauge Schlesinger Coinvest, LLC - Class A-2 Preferred Equity			—			Business Services			—				—				1				1				1
EvAL Home Health Solutions, LLC - Preferred Equity (10)			—			Healthcare, Education and Childcare			—				—				272,771				453				453
Hancock Claims Consultants Investors, LLC - Class A Preferred Equity (10)			—			Insurance			—				—				48,049				31				38
Imagine Topco, LP Preferred			—			Business Services			8.00	%			—				743,826				744				835
Magnolia Topco LP - Class A Preferred Equity (10)			—			Auto Sector			—				—				1,545				1,545				1,660
Magnolia Topco LP - Class B Preferred Equity (10)			—			Auto Sector			—				—				1,018				643				187
Mars Intermediate Holdings II, Inc.			—			Media			—				—				414				414				600
Megawatt Acquisition Partners, LLC - Preferred A			—			Electronics			—				—				5,349				535				493
NXOF Holdings, Inc. (Tyto Athene, LLC)			—			Aerospace and Defense			—				—				160				160				136
ORL Holdco, Inc.			—			Business Services			—				—				575				57				—
									—				—
PL Acquisitionco, LLC - Preferred Equity			—			Retail			—				—				37				37				—
RTIC Parent Holdings, LLC - Class A Preferred Equity (10)			—			Consumer Products			—				—				5				5				—
RTIC Parent Holdings, LLC - Class C Preferred Equity (10)			—			Consumer Products			—				—				10,624				699				1,029
RTIC Parent Holdings, LLC - Class D Preferred Equity (10)			—			Consumer Products			—				—				11,276				113				119
TPC Holding Company, LP			—			Food			—				—				219				219				345
TWD Parent Holdings, LLC (The Vertex Companies, LLC)			—			Business Services			—				—				30				30				34
Total Preferred Equity/Partnership Interests																					11,904				14,876
Common Equity/Partnership Interests/Warrants—24.2% of Net Assets (6)
A1 Garage Equity, LLC (10)			—			Personal, Food and Miscellaneous Services			—				—				2,193,038				2,193				2,639
ACP Big Top Holdings, L.P. - Common Equity			—			Manufacturing/Basic Industry			—				—				773,800				774				819
Ad.net Holdings, Inc.			—			Media			—				—				2,667				27				—
Aftermarket Drivetrain Products Holdings, LLC			—			Machinery			—				—				1,645				1,645				1,988
AG Investco LP (10)			—			Business Services			—				—				805,164				805				992
AG Investco LP (8), (10)			—			Business Services			—				—				194,836				—				—
Altamira Intermediate Company II, Inc.			—			Aerospace and Defense			—				—				125,000				125				137
AMCSI Crash Co-Invest, LP			—			Auto Sector			—				—				2,489,777				2,490				2,940
AMCSI Crash Co-Invest, LP (8)			—			Auto Sector			—				—				510,223				—				—
Anteriad Holdings, LP (f/k/a MeritDirect Holdings, LP) (10)			—			Media			—				—				1,135				—				—
Athletico Holdings, LLC (10)			—			Healthcare, Education and Childcare			—				—				9,357				10,000				8,715
Atlas Investment Aggregator, LLC			—			Telecommunications			—				—				1,700,000				1,613				—
BioDerm, Inc.			—			Healthcare, Education and Childcare			—				—				1,312				1,312				1,093
Burgess Point Holdings, LP			—			Auto Sector			—				—				680				680				609
Carnegie Holdco, LLC - Common Equity (10)			—			Education			—				—				1,680,300				1,663				1,680
Carisk Parent, L.P. - Common Equity			—			Healthcare, Education and Childcare			—				—				169,231				169				176
Connatix Parent, LLC			—			Media			—				—				57,416				632				359
Consello Pacific Aggregator, LLC (10)			—			Business Services			—				—				782,891				745				762
Cowboy Parent LLC (Blackhawk Industrial Distribution, Inc.)			—			Distribution			—				—				27,778				3,015				5,686
Crane 1 Acquisition Parent Holdings, L.P.			—			Personal, Food and Miscellaneous Services			—				—				113				104				197
Delta InvestCo LP (Sigma Defense Systems, LLC) (10)			—			Telecommunications			—				—				913,649				878				1,606
Delta InvestCo LP (Sigma Defense Systems, LLC) (8), (10)			—			Telecommunications			—				—				227,395				—				—
eCommission Holding Corporation (12)			—			Financial Services			—				—				80				1,005				2,441

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

JUNE 30, 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)
EDS Topco, LP			—			Aerospace and Defense			—				—				937,500			$	938			$	1,174
Exigo, LLC			—			Business Services			—				—				1,458,333				1,458				1,561
FedHC InvestCo LP (10)			—			Aerospace and Defense			—				—				14,578				489				1,318
FedHC InvestCo LP (8), (10)			—			Aerospace and Defense			—				—				5,150				—				—
FedHC InvestCo II LP (10)			—			Aerospace and Defense			—				—				20,882				2,175				1,994
Five Star Parent Holdings, LLC			—			Leisure, Amusement, Motion Pictures, Entertainment			—				—				655,714				656				715
Gauge ETE Blocker, LLC - Common Equity			—			Personal, Food and Miscellaneous Services			—				—				374,444				374				326
Gauge Lash Coinvest LLC			—			Consumer Products			—				—				992,792				651				3,634
Gauge Loving Tan, LP - Common Equity			—			Consumer Products			—				—				462,827				463				435
Gauge Schlesinger Coinvest LLC			—			Business Services			—				—				9				10				6
GCOM InvestCo LP			—			Business Services			—				—				2,434				1,003				476
GMP Hills, LP - Common Equity			—			Distribution			—				—				3,747,470				3,747				3,785
Hancock Claims Consultants Investors, LLC (10)			—			Insurance			—				—				450,000				450				32
HPA SPQ Aggregator LP- Common Equity			—			Business Services			—				—				750,399				750				672
HV Watterson Holdings, LLC			—			Business Services			—				—				1,600,000				1,600				636
Icon Partners V C, L.P.			—			Business Services			—				—				1,122,549				1,123				1,124
Icon Partners V C, L.P. (8)			—			Business Services			—				—				377,451				—				—
IHS Parent Holdings, L.P.			—			Personal, Food and Miscellaneous Services			—				—				1,218,045				1,218				1,534
Imagine Topco, LP			—			Business Services			—				—				743,826				—				—
Infogroup Parent Holdings, Inc. (Data Axle, Inc.)			—			Other Media			—				—				181,495				2,040				2,554
Ironclad Holdco, LLC (Applied Technical Services, LLC) (10)			—			Environmental Services			—				—				4,859				504				758
ITC Infusion Co-invest, LP (10)			—			Healthcare, Education and Childcare			—				—				162,445				1,645				2,312
Kentucky Racing Holdco, LLC (Warrants) (10)			—			Hotels, Motels, Inns and Gaming			—				—				161,252				—				1,842
Kinetic Purchaser, LLC			—			Consumer Products			—				—				1,308,814				1,309				1,836
KL Stockton Co-Invest LP (Any Hour Services) (10)			—			Personal, Food and Miscellaneous Services			—				—				382,353				385				957
Lariat ecoserv Co-Invest Holdings, LLC (10)			—			Environmental Services			—				—				363,656				—				16
LEP Pequod Holdings, LP - Common Equity			—			Financial Services			—				—				350				865				927
Lightspeed Investment Holdco LLC			—			Healthcare, Education and Childcare			—				—				273,143				273				906
LJ Avalon, LP			—			Environmental Services			—				—				851,087				851				1,004
Lorient Peregrine Investment, LP			—			Business Services			—				—				335,590				4,530				4,452
Magnolia Topco LP - Class A (10)			—			Auto Sector			—				—				1,545,460				—				—
Magnolia Topco LP - Class B (10)			—			Auto Sector			—				—				1,017,840				—				—
Mars Intermediate Holdings II, Inc.			—			Media			—				—				414				—				224
MDI Aggregator, LP			—			Chemicals, Plastics and Rubber			—				—				30,993				3,103				3,355
Meadowlark Title, LLC (10)			—