Published: 2025-02-10 16:06:24 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 DECEMBER 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 February 10, 2025 was 65,296,094.

 

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PENNANTPARK INVESTMENT CORPORATION

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

TABLE OF CONTENTS

 

PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities as of December 31, 2024 (unaudited) and September 30, 2024		4
Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (unaudited)		5
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2024 and 2023 (unaudited)		6
Consolidated Statements of Cash Flows for the three months ended December 31, 2024 and 2023 (unaudited)		7
Consolidated Schedules of Investments as of December 31, 2024 (unaudited) and September 30, 2024		8
Notes to Consolidated Financial Statements (unaudited)		28
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)		48
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		50
Item 3. Quantitative and Qualitative Disclosures About Market Risk		66
Item 4. Controls and Procedures		67
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		68
Item 1A. Risk Factors		68
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		68
Item 3. Defaults Upon Senior Securities		68
Item 4. Mine Safety Disclosures		68
Item 5. Other Information		68
Item 6. Exhibits		69
SIGNATURES		70

 

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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 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)

 

		December 31, 2024				September 30, 2024
		(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost—$856,406 and $916,168, respectively)		$	845,829			$	910,323
Non-controlled, affiliated investments (amortized cost—$57,109 and $56,734, respectively)			11,032				33,423
Controlled, affiliated investments (amortized cost—$370,967 and $343,970, respectively)			441,205				384,304
Total investments (amortized cost—$1,284,482 and $1,316,872, respectively)			1,298,066				1,328,050
Cash and cash equivalents (cost—$55,868 and $49,833, respectively)			55,851				49,861
Interest receivable			5,227				5,261
Receivable for investments sold			47,230				—
Distribution receivable			5,359				5,417
Due from affiliates			144				228
Prepaid expenses and other assets			214				269
Total assets			1,412,091				1,389,086
Liabilities
Truist Credit Facility payable, at fair value (cost—$464,456 and $461,456, respectively)			460,033				460,361
2026 Notes payable, net (par— $150,000)			148,796				148,571
2026 Notes-2 payable, net (par— $165,000)			163,293				163,080
Payable for investment purchased			125,050				100,096
Distributions payable			5,224				5,224
Base management fee payable			4,268				4,297
Incentive fee payable			2,756				3,057
Accounts payable and accrued expenses			5,500				4,053
Interest payable on debt			2,850				6,406
Due to affiliates			—				33
Total liabilities			917,770				895,178
Commitments and contingencies (See Note 11)
Net assets
Common stock, 65,296,094 and 65,296,094 shares issued and outstanding, respectively    Par value $0.001 per share and 200,000,000 shares authorized			65				65
Paid-in capital in excess of par value			743,968				743,968
Accumulated deficit			(249,712	)			(250,125	)
Total net assets		$	494,321			$	493,908
Total liabilities and net assets		$	1,412,091			$	1,389,086
Net asset value per share		$	7.57			$	7.56

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

 

		Three Months Ended December 31,
		2024				2023
Investment income:
From non-controlled, non-affiliated investments:
Interest		$	18,767			$	21,068
Payment-in-kind			1,421				2
Dividend income			508				692
Other income			582				1,425
From non-controlled, affiliated investments:
Payment-in-kind			—				347
From controlled, affiliated investments:
Interest			7,255				5,481
Payment-in-kind			823				632
Dividend income			4,851				4,689
Total investment income			34,207				34,336
Expenses:
Interest and expenses on debt			11,741				9,557
Base management fee			4,268				4,004
Incentive fee			2,756				3,321
General and administrative expenses			1,250				1,214
Administrative services expenses			500				189
Expenses before provision for taxes			20,515				18,285
Provision for taxes on net investment income			700				393
Net expenses			21,215				18,678
Net investment income			12,992				15,658
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments and debt:
Non-controlled, non-affiliated investments			(2,560	)			2,581
Non-controlled and controlled, affiliated investments			—				(750	)
Net realized gain (loss) on investments and debt			(2,560	)			1,831
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments			(4,777	)			(12,270	)
Non-controlled and controlled, affiliated investments			7,138				7,324
Provision for taxes on unrealized appreciation (depreciation) on investments			(37	)			150
Debt appreciation (depreciation)			3,328				(2,040	)
Net change in unrealized appreciation (depreciation) on investments and debt			5,652				(6,836	)
Net realized and unrealized gain (loss) from investments and debt			3,092				(5,005	)
Net increase (decrease) in net assets resulting from operations		$	16,084			$	10,653
Net increase (decrease) in net assets resulting from operations per common share		$	0.25			$	0.16
Net investment income per common share		$	0.20			$	0.24

 

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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 December 31,
		2024				2023
Net increase (decrease) in net assets resulting from operations:
Net investment income		$	12,992			$	15,658
Net realized gain (loss) on investments and debt			(2,560	)			1,831
Net change in unrealized appreciation (depreciation) on investments			2,361				(4,946	)
Net change in provision for taxes on unrealized appreciation (depreciation) on investments			(37	)			150
Net change in unrealized appreciation (depreciation) on debt			3,328				(2,040	)
Net increase (decrease) in net assets resulting from operations			16,084				10,653
Distributions to stockholders:
Distribution of net investment income			(15,671	)			(13,698	)
Total distributions to stockholders			(15,671	)			(13,698	)
Net increase (decrease) in net assets			413				(3,045	)
Net assets:
Beginning of period			493,908				502,187
End of period		$	494,321			$	499,142

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

 

		Three Months Ended December 31,
		2024				2023
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations		$	16,084			$	10,653
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			(2,361	)			4,946
Net change in unrealized appreciation (depreciation) on debt			(3,328	)			2,040
Net realized (gain) loss on investments			2,560				(1,831	)
Net accretion of discount and amortization of premium			(724	)			(281	)
Purchases of investments			(394,229	)			(281,000	)
Payment-in-kind income			(2,244	)			(980	)
Proceeds from dispositions of investments			427,065				170,753
Amortization of deferred financing costs			439				439
(Increase) decrease in:
Interest receivable			34				(3,064	)
Receivables from investments sold			(47,230	)			—
Distribution receivable			58				(302	)
Due from affiliate			84				(181	)
Prepaid expenses and other assets			55				(235	)
Increase (decrease) in:
Due to affiliate			(33	)			(2,542	)
Payable for investments purchased			24,954				(48,099	)
Interest payable on debt			(3,556	)			(3,106	)
Base management fee payable, net			(29	)			89
Incentive fee payable			(301	)			11
Accounts payable and accrued expenses			1,447				(2,431	)
Net cash provided by (used in) operating activities			18,745				(155,121	)
Cash flows from financing activities:
Distributions paid to stockholders		$	(15,671	)		$	(22,828	)
Borrowings under Truist Credit Facility			55,000				228,036
Repayments under Truist Credit Facility			(52,000	)			(52,000	)
Net cash provided by (used in) financing activities			(12,671	)			153,208
Net increase (decrease) in cash equivalents			6,074				(1,913	)
Effect of exchange rate changes on cash			(84	)			31
Cash and cash equivalents, beginning of period			49,861				38,775
Cash and cash equivalents, end of period		$	55,851			$	36,893
Supplemental disclosure of cash flow information:
Interest paid		$	14,858			$	12,224
Taxes paid		$	—			$	3,357
Non-cash exchanges and conversions		$	5,963			$	—
Non-cash purchases and disposition of investments		$	26,250			$	—

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)

DECEMBER 31, 2024

(In thousands, except share data)

 

Issuer Name		Maturity		Industry		Current Coupon				Basis Point Spread Above Index (4)				Par / Shares				Cost				Fair Value (3)
Investments in Non-Controlled, Non-Affiliated Portfolio Companies - 171.1% (1), (2)
First Lien Secured Debt - 95.2% of Net Assets
A1 Garage Merger Sub, LLC - Unfunded Term Loan (7)		03/31/2025		Personal, Food and Miscellaneous Services			—				—				1,534			$	-			$	23
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			9.84	%		3M SOFR+525					28				28				27
ACP Avenu Buyer, LLC - Unfunded Term Loan (7)		04/02/2025		Business Services			—				—				1,799				—				(25	)
ACP Avenu Buyer, LLC - Funded Revolver		10/02/2029		Business Services			9.84	%		3M SOFR+525					271				271				264
ACP Avenu Buyer, LLC - Revolver (7)		10/02/2029		Business Services			—				—				947				—				(26	)
ACP Falcon Buyer, Inc. - Revolver (7)		08/01/2029		Business Services			—				—				2,533				—				—
Ad.net Acquisition, LLC - Funded Revolver		05/06/2026		Media			10.59	%		3M SOFR+626					292				292				292
Ad.net Acquisition, LLC - Revolver (7)		05/06/2026		Media			—				—				152				—				—
Adweek Purchaser, LLC		05/30/2027		Printing and Publishing			11.33	%		3M SOFR+700					2,000				1,967				2,000
Adweek Purchaser, LLC - Unfunded Term Loan (7)		11/30/2025		Printing and Publishing			—				—				400				—				6
Aechelon Technology, Inc. - Unfunded Revolver (7)		08/16/2029		Aerospace and Defense			—				—				1,109				—				—
AFC Dell Holding Corp.		04/09/2027		Distribution			10.09	%		3M SOFR+550					67				67				67
AFC Dell Holding Corp. - Unfunded Term Loan (7)		04/09/2027		Distribution			—				—				4,428				—				—
Atlas Purchaser, Inc. - Third Out		05/06/2028		Telecommunications			11.46	%		3M SOFR+700					8,840				7,562				5,242
Atlas Purchaser, Inc. - Fourth Out		05/06/2028		Telecommunications			11.46	%		3M SOFR+700					4,760				702				305
Anteriad, LLC (f/k/a MeritDirect, LLC) - Funded Revolver		06/30/2026		Media			10.19	%		3M SOFR+585					461				461				461
Anteriad, LLC (f/k/a MeritDirect, LLC) - Revolver (7)		06/30/2026		Media			—				—				1,152				—				—
Applied Technical Services, LLC		12/29/2026		Environmental Services			10.23	%		3M SOFR+590					3				3				3
Applied Technical Services, LLC - Unfunded Term Loan (7)		07/17/2025		Environmental Services			—				—				2,637				—				(7	)
Applied Technical Services, LLC - Revolver		12/29/2026		Environmental Services			13.25	%		3M SOFR+475					1,596				1,596				1,576
Applied Technical Services, LLC - Unfunded Revolver (7)		12/29/2026		Environmental Services			—				—				206				—				(3	)
Arcfield Acquisition Corp.		10/28/2031		Aerospace and Defense			9.17	%		3M SOFR+500					15,000				14,981				14,963
Arcfield Acquisition Corp. - Revolver (7)		10/28/2031		Aerospace and Defense			—				—				1,688				—				(4	)
Archer Lewis, LLC - Unfunded Term Loan A (7)		08/28/2025		Healthcare, Education and Childcare			—				—				1,863				—				—
Archer Lewis, LLC - Unfunded Term Loan B (7)		08/28/2026		Healthcare, Education and Childcare			—				—				8,527				—				—
Archer Lewis, LLC - Unfunded Revolver (7)		08/28/2029		Healthcare, Education and Childcare			—				—				1,304				—				(13	)
Argano, LLC. - Unfunded Term Loan (7)		03/13/2025		Business Services			—				—				4,981				—				—
Argano, LLC. - Unfunded Revolver (7)		09/13/2029		Business Services			—				—				794				—				(8	)
Azureon, LLC		06/26/2029		Diversified Conglomerate Service			10.08	%		3M SOFR+575					5,218				5,150				5,103
Azureon, LLC - Unfunded Term Loan (7)		06/26/2026		Diversified Conglomerate Service			—				—				4,656				—				(56	)
Azureon, LLC - Revolver (7)		06/26/2029		Diversified Conglomerate Service			—				—				1,160				—				(26	)
Beacon Behavioral Support Service, LLC		06/21/2029		Healthcare, Education and Childcare			9.85	%		3M SOFR+550					3,532				3,497				3,479
						(PIK 15.00%)
Beacon Behavioral Support Service, LLC - Unfunded Term Loan (7)		12/21/2025		Healthcare, Education and Childcare			—				—				6,150				—				(31	)
Beacon Behavioral Support Service, LLC - Revolver (7)		06/21/2029		Healthcare, Education and Childcare			—				—				1,042				—				(16	)
Berwick Industrial Park		05/02/2025		Buildings and Real Estate			13.00	%			—				4,000				4,031				3,996
Best Practice Associates, LLC		11/08/2029		Aerospace and Defense			11.08	%		3M SOFR+675					25,000				24,629				24,625
Best Practice Associates, LLC - Revolver (7)		11/08/2029		Aerospace and Defense			—				—				1,929				—				(29	)
Beta Plus Technologies, Inc.		07/01/2029		Business Services			10.08	%		3M SOFR+575					4,888				4,821				4,753
Big Top Holdings, LLC - Unfunded Revolver (7)		02/07/2030		Manufacturing/Basic Industry			—				—				1,155				—				—
BioDerm, Inc. - Revolver		01/31/2028		Healthcare, Education and Childcare			11.05	%		3M SOFR+650					1,071				1,071				1,058
Blackhawk Industrial Distribution, Inc.		09/17/2026		Distribution			9.73	%		3M SOFR+540					1,275				1,267				1,252
Blackhawk Industrial Distribution, Inc. - Unfunded Term Loan (7)		09/17/2026		Distribution			—				—				2,368				—				(18	)
Blackhawk Industrial Distribution, Inc. - Funded Revolver		09/17/2026		Distribution			9.73	%		3M SOFR+540					850				850				835
Blackhawk Industrial Distribution, Inc. - Unfunded Revolver (7)		09/17/2026		Distribution			—				—				4,007				—				(69	)
BLC Holding Company, Inc.		11/20/2030		Business Services			9.25	%		3M SOFR+475					12,104				12,016				12,013
BLC Holding Company, Inc. - Unfunded Term Loan (7)		11/20/2026		Business Services			—				—				9,768				—				—
BLC Holding Company, Inc. - Revolver (7)		11/20/2030		Business Services			—				—				3,005				—				—

 

 

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PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2024

(In thousands, except share data)

 

Issuer Name		Maturity		Industry		Current Coupon				Basis Point Spread Above Index (4)				Par / Shares				Cost				Fair Value (3)
Boss Industries, LLC		12/27/2030		Conglomerate Manufacturing			9.33	%		3M SOFR+500					11,000			$	10,918			$	10,918
Boss Industries, LLC - Funded Revolver		12/27/2030		Conglomerate Manufacturing			9.33	%		3M SOFR+500					261				261				261
Boss Industries, LLC - Revolver (7)		12/27/2030		Conglomerate Manufacturing			—				—				1,045				—				—
BlueHalo Financing Holdings, LLC		10/31/2025		Aerospace and Defense			10.33	%		3M SOFR+600					14				14				14
Carisk Buyer, Inc. - Unfunded Term Loan (7)		12/01/2029		Healthcare, Education and Childcare			—				—				4,813				—				(24	)
Carisk Buyer, Inc. - Unfunded Term Loan 2 (7)		12/01/2029		Healthcare, Education and Childcare			—				—				1,528				—				(11	)
Carisk Buyer, Inc. - Revolver (7)		12/01/2029		Healthcare, Education and Childcare			—				—				1,750				—				(26	)
Carnegie Dartlet, LLC - Unfunded Term Loan (7)		02/07/2026		Education			—				—				10,017				—				(50	)
Carnegie Dartlet, LLC - Funded Revolver		02/07/2030		Education			10.05	%		3M SOFR+550					200				200				197
Carnegie Dartlet, LLC - Unfunded Revolver (7)		02/07/2030		Education			—				—				3,139				—				(47	)
Cartessa Aesthetics, LLC		06/14/2028		Distribution			10.08	%		3M SOFR+575					23,676				23,370				23,676
Cartessa Aesthetics, LLC - Revolver		06/14/2028		Distribution			10.08	%		3M SOFR+575					1,265				1,265				1,265
Cartessa Aesthetics, LLC - Unfunded Revolver (7)		06/14/2028		Distribution			—				—				2,297				—				—
Case Works, LLC - Unfunded Term Loan (7)		10/01/2025		Business Services			—				—				852				—				1
Case Works, LLC - Funded Revolver		10/01/2029		Business Services			9.65	%		3M SOFR+525					755				755				749
Case Works, LLC - Revolver (7)		10/01/2029		Business Services			—				—				1,132				—				(9	)
CF512, Inc. - Revolver (7)		08/20/2026		Media			—				—				909				—				(14	)
CJX Borrower, LLC		07/13/2027		Media			10.40	%		3M SOFR+576					250				248				250
CJX Borrower, LLC - Unfunded Term Loan (7)		07/13/2027		Media			—				—				222				—				1
CJX Borrower, LLC - Funded Revolver		07/13/2027		Media			10.12	%		3M SOFR+576					498				498				498
CJX Borrower, LLC - Revolver (7)		07/13/2027		Media			—				—				1,377				—				—
Compex Legal Services, Inc. - Revolver		02/07/2025		Business Services			10.14	%		3M SOFR+555					328				328				328
Compex Legal Services, Inc. - Unfunded Revolver (7)		02/07/2025		Business Services			—				—				328				—				—
Crane 1 Services, Inc. - Revolver (7)		08/16/2027		Personal, Food and Miscellaneous Services			—				—				435				—				(3	)
C5MI Acquisition, LLC		07/31/2030		Business Services			10.33	%		3M SOFR+600					7,481				7,373				7,369
C5MI Acquisition, LLC - Funded Revolver		07/31/2030		Business Services			10.33	%		3M SOFR+600					689				689				679
C5MI Acquisition, LLC - Unfunded Revolver (7)		07/31/2030		Business Services			—				—				3,444				—				(52	)
Dr. Squatch, LLC - Unfunded Revolver (7)		08/31/2027		Media			—				—				2,326				—				—
DRS Holdings III, Inc.		11/03/2025		Consumer Products			10.71	%		3M SOFR+635					6				6				6
DRS Holdings III, Inc. - Revolver (7)		11/03/2025		Consumer Products			—				—				1,783				—				(7	)
Duggal Acquisition, LLC - Unfunded Term Loan (7)		09/30/2026		Marketing Services			—				—				2,042				—				—
Duggal Acquisition, LLC - Funded Revolver		09/30/2030		Marketing Services			9.08	%		3M SOFR+475					512				512				507
Duggal Acquisition, LLC - Unfunded Revolver (7)		09/30/2030		Marketing Services			—				—				2,049				—				(20	)
Dynata, LLC - Last-Out Term Loan		07/15/2028		Business Services			10.29	%		3M SOFR+576					84				84				78
EDS Buyer, LLC - Revolver (7)		12/22/2028		Aerospace and Defense			—				—				1,915				—				(14	)
Emergency Care Partners, LLC		10/18/2027		Healthcare, Education and Childcare			10.13	%		3M SOFR+550					998				990				990
Emergency Care Partners, LLC - Unfunded Term Loan (7)		04/18/2026		Healthcare, Education and Childcare			—				—				2,185				—				(16	)
Emergency Care Partners, LLC - Revolver (7)		10/18/2027		Healthcare, Education and Childcare			—				—				641				—				(5	)
ENC Parent Corporation		08/20/2029		Business Services			8.84	%		3M SOFR+451					3,391				3,009				2,914
ETE Intermediate II, LLC - Funded Revolver		05/25/2029		Personal, Food and Miscellaneous Services			10.83	%		3M SOFR+650					1,436				1,436				1,436
ETE Intermediate II, LLC - Revolver (7)		05/25/2029		Personal, Food and Miscellaneous Services			—				—				994				—				—
Eval Home Health Solutions Intermediate, LLC - Revolver (7)		05/10/2030		Healthcare, Education and Childcare			—				—				822				—				(8	)

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)—(Continued)

DECEMBER 31, 2024

(In thousands, except share data)

 

Issuer Name		Maturity		Industry		Current Coupon				Basis Point Spread Above Index (4)				Par / Shares				Cost				Fair Value (3)
Events Buyer, LLC		12/17/2029		Event Services			10.10	%		3M SOFR+575					6,000			$	5,941			$	5,940
Events Buyer, LLC - Unfunded Term Loan A (7)		06/17/2025		Event Services			—				—				5,461				—				—
Events Buyer, LLC - Unfunded Term Loan B (7)		12/17/2026		Event Services			—				—				5,201				—				—
Events Buyer, LLC - Revolver (7)		12/17/2029		Event Services			—				—				1,300				—				—
Exigo Intermediate II, LLC		03/15/2027		Business Services			10.70	%		3M SOFR+635					24,065				23,862				24,065
Exigo Intermediate II, LLC - Revolver (7)		03/15/2027		Business Services			—				—				1,856				—				—
Five Star Buyer, Inc.		02/23/2028		Leisure, Amusement, Motion Pictures, Entertainment			11.67	%		3M SOFR+710					196				196				195
Five Star Buyer, Inc. - Revolver (7)		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
GGG MIDCO, LLC		09/27/2030		Home and Office Furnishings, Housewares and Durable Consumer Products			9.41	%		3M SOFR+500					2,840				2,812				2,811
GGG MIDCO, LLC - Unfunded Term Loan (7)		03/27/2026		Home and Office Furnishings, Housewares and Durable Consumer Products			—				—				6,406				—				—
GGG MIDCO, LLC - Unfunded Revolver (7)		09/27/2030		Home and Office Furnishings, Housewares and Durable Consumer Products			—				—				581				—				(6	)
Graffiti Buyer, Inc.		08/10/2027		Distribution			9.93	%		3M SOFR+560					248				246				244
Graffiti Buyer, Inc. - Unfunded Term Loan (7)		08/10/2027		Distribution			—				—				831				—				(6	)
Graffiti Buyer, Inc. - Funded Revolver		08/10/2027		Distribution			9.97	%		3M SOFR+560					486				486				479
Graffiti Buyer, Inc. - Revolver (7)		08/10/2027		Distribution			—				—				282				—				(4	)
Halo Buyer, Inc.		06/30/2025		Consumer Products			8.96	%		3M SOFR+460					4,699				4,478				4,699
Hancock Roofing and Construction L.L.C.		12/31/2026		Insurance			9.96	%		1M SOFR+560					680				680				680
Hancock Roofing and Construction L.L.C. - Revolver (7)		12/31/2026		Insurance			—				—				70				—				—
Harris & Co. LLC - Unfunded Term Loan A (7)		02/09/2025		Financial Services			—				—				7,706				—				67
Harris & Co. LLC - Unfunded Term Loan B (7)		02/09/2026		Financial Services			—				—				16,654				—				146
Harris & Co. LLC - Funded Revolver		08/09/2030		Financial Services			9.36	%		3M SOFR+500					368				368				368
Harris & Co. LLC - Unfunded Revolver (7)		08/09/2030		Financial Services			—				—				2,083				—				—
Hills Distribution, Inc.		11/08/2029		Distribution			10.40	%		3M SOFR+600					7,864				7,787				7,786
Hills Distribution, Inc. - Unfunded Term Loan (7)		11/07/2025		Distribution			—				—				1,280				—				—
HV Watterson Holdings, LLC		12/17/2026		Business Services			12.00	%			—				282				281				258
						(PIK 4.00%)
HV Watterson Holdings, LLC - Revolver		12/17/2026		Business Services			12.00	%			—				1,225				1,225				1,121
						(PIK 4.00%)
HV Watterson Holdings, LLC - Unfunded Revolver (7)		12/17/2026		Business Services			—				—				25				—				(2	)
HW Holdco, LLC		05/10/2026		Media			10.23	%		3M SOFR+590					6,124				6,107				6,124
HW Holdco, LLC - Revolver (7)		05/10/2026		Media			—				—				3,387				—				—
IG Investment Holdings LLC		09/22/2028		Business Services			9.57	%		3M SOFR+500					105				104				104
IG Investments Holdings, LLC - Revolver (7)		09/22/2028		Business Services			—				—				722				—				(5	)
Imagine Acquisitionco, LLC - Funded Revolver		11/16/2027		Business Services			9.55	%		3M SOFR+510					84				84				84
Imagine Acquisitionco, LLC (7)		11/16/2027		Business Services			—				—				1,601				—				(4	)
Infinity Home Services Holdco, Inc.		12/28/2028		Personal, Food and Miscellaneous Services			9.83	%		3M SOFR+550					9,042				8,934				9,042
Infinity Home Services Holdco, Inc. (CAD)		12/28/2028		Personal, Food and Miscellaneous Services			8.80	%		3M SOFR+550				CAD 2,632					1,898				1,830
Infinity Home Services Holdco, Inc. - 3rd Amendment Unfunded Term Loan (7)		12/28/2028		Personal, Food and Miscellaneous Services			—				—				9,091				—				—
Infinity Home Services Holdco, Inc. - Funded Revolver		12/28/2028		Personal, Food and Miscellaneous Services			12.00	%		3M SOFR+450					161				161				161
Infinity Home Services Holdco, Inc. - Revolver (7)		12/28/2028		Personal, Food and Miscellaneous Services			—				—				1,130				—				—
Inovex Information Systems Incorporated		12/17/2030		Business Services			9.63	%		3M SOFR+525					11,000				10,918				10,918
Inovex Information Systems Incorporated - Unfunded Term Loan (7)		12/17/2026		Business Services			—				—				1,900				—				—
Inovex Information Systems Incorporated - Funded Revolver		12/17/2030		Business Services			9.61	%		3M SOFR+525					665				665				665
Inovex Information Systems Incorporated - Revolver (7)		12/17/2030		Business Services			—				—				1,710				—				—
Inventus Power, Inc. - Revolver (7)		06/30/2025		Electronics			—				—				1,729				—				—
ITI Holdings, Inc.		03/03/2028		Business Services			10.05	%		3M SOFR+565					8,725				8,634				8,725
ITI Holdings, Inc. - Revolver		03/03/2028		Business Services			12.00	%		3M SOFR+450					1,061				1,061				1,061
ITI Holdings, Inc. - Unfunded Revolver (7)		03/03/2028		Business Services			—				—				429				—				—

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2024

(In thousands, except share data)

 

Issuer Name		Maturity		Industry		Current Coupon				Basis Point Spread Above Index (4)				Par / Shares				Cost				Fair Value (3)
Kinetic Purchaser, LLC		11/10/2027		Consumer Products			10.48	%		3M SOFR+615					3,099			$	3,028			$	3,099
Kinetic Purchaser, LLC - Funded Revolver		11/10/2026		Consumer Products			10.48	%		3M SOFR+610					2,427				2,427				2,427
Kinetic Purchaser, LLC - Revolver (7)		11/10/2026		Consumer Products			—				—				2,427				—				—
Lash OpCo, LLC		02/18/2027		Consumer Products			12.94	%		1M SOFR+785					2,940				2,912				2,896
						(PIK 5.10%)
Lash OpCo, LLC - Revolver		08/16/2026		Consumer Products			12.94	%		1M SOFR+785					2,720				2,720				2,679
						(PIK 5.10%)
Lash OpCo, LLC - Unfunded Revolver (7)		08/16/2026		Consumer Products			—				—				317				—				(5	)
LAV Gear Holdings, Inc.		10/31/2025		Leisure, Amusement, Motion Pictures, Entertainment			10.90	%		1M SOFR+640					2,068				2,068				1,967
						(PIK 10.98%)
Ledge Lounger, Inc.		11/09/2027		Consumer Products			11.98	%		3M SOFR+765					9,022				8,942				8,571
						(PIK 1.00%)
Ledge Lounger, Inc. - Revolver		11/09/2027		Consumer Products			11.98	%		3M SOFR+765					1,129				1,129				1,073
						(PIK 1.00%)
Ledge Lounger, Inc. - Unfunded Revolver (7)		11/09/2027		Consumer Products			—				—				483				—				(24	)
Lightspeed Buyer, Inc. - Unfunded Term Loan (7)		06/02/2025		Healthcare, Education and Childcare			—				—				3,216				—				(32	)
LJ Avalon Holdings, LLC - Unfunded Term Loan (7)		10/01/2025		Environmental Services			—				—				2,419				—				12
LJ Avalon Holdings, LLC - Revolver (7)		01/31/2030		Environmental Services			—				—				587				—				—
Loving Tan Intermediate II, Inc.		05/31/2028		Consumer Products			10.33	%		3M SOFR+600					9,760				9,622				9,687
Loving Tan Intermediate II, Inc. - Revolver		05/31/2028		Consumer Products			10.35	%		3M SOFR+600					332				332				329
Loving Tan Intermediate II, Inc. - Unfunded Revolver (7)		05/31/2028		Consumer Products			—				—				664				—				(5	)
Loving Tan Intermediate II, Inc. - Unfunded Term Loan (7)		07/12/2025		Consumer Products			—				—				4,376				—				11
Marketplace Events Acquisition, LLC		12/19/2030		Media			9.60	%		3M SOFR+525					25,000				24,753				24,750
Marketplace Events Acquisition, LLC - Unfunded Term Loan (7)		06/19/2026		Media			—				—				4,354				—				—
Marketplace Events Acquisition, LLC - Revolver (7)		12/19/2030		Media			—				—				2,177				—				—
MBS Holdings, Inc. - Funded Revolver		04/16/2027		Telecommunications			10.25	%		3M SOFR+585					83				83				83
MBS Holdings, Inc. - Revolver (7)		04/16/2027		Telecommunications			—				—				611				—				—
MDI Buyer, Inc. - Revolver		07/25/2028		Chemicals, Plastics and Rubber			12.50	%		3M SOFR+475					1,752				1,752				1,734
MDI Buyer, Inc. - Unfunded Revolver (7)		07/25/2028		Chemicals, Plastics and Rubber			—				—				475				—				—
Meadowlark Acquirer, LLC		12/10/2027		Business Services			9.98	%		3M SOFR+565					1,918				1,904				1,870
Meadowlark Acquirer, LLC- Unfunded Revolver (7)		12/10/2027		Business Services			—				—				1,685				—				(42	)
Medina Health, LLC - Revolver (7)		10/20/2028		Healthcare, Education and Childcare			—				—				2,774				—				—
Megawatt Acquisitionco, Inc. - Funded Revolver		03/01/2030		Electronics			9.86	%		3M SOFR+550					529				529				463
Megawatt Acquisitionco, Inc. - Unfunded Revolver (7)		03/01/2030		Electronics			—				—				1,328				—				(167	)
Mineola 212, LLC		06/24/2025		Buildings and Real Estate			13.00	%			—				3,500				3,494				3,507
MOREGroup Holdings, Inc. - Unfunded Term Loan (7)		01/16/2026		Business Services			—				—				6,124				—				61
MOREGroup Holdings, Inc. - Unfunded Revolver (7)		01/16/2030		Business Services			—				—				3,675				—				—
Municipal Emergency Services, Inc.		10/01/2027		Distribution			9.48	%		3M SOFR+515					172				171				172
Municipal Emergency Services, Inc. - Unfunded Term Loan 3rd Amendment (7)		09/28/2027		Distribution			—				—				328				—				3
Municipal Emergency Services, Inc. - Funded Revolver		10/01/2027		Distribution			11.00	%		3M SOFR+350					376				376				376
Municipal Emergency Services, Inc. - Revolver (7)		10/01/2027		Distribution			—				—				1,504				—				—
NBH Group LLC - Revolver (7)		08/19/2026		Healthcare, Education and Childcare			—				—				1,163				—				—
NFS - CFP Holdings LLC - Unfunded Term Loan (7)		09/13/2026		Business Services			—				—				6,630				—				—
NFS - CFP Holdings LLC - Unfunded Revolver (7)		09/13/2030		Business Services			—				—				2,486				—				(19	)
NORA Acquisition, LLC - Revolver (7)		08/31/2029		Healthcare, Education and Childcare			—				—				2,707				—				—
NP Riverhead Industrial, LLC		05/24/2025		Buildings and Real Estate			14.50	%			—				5,000				4,993				5,038
Omnia Exterior Solutions, LLC - Unfunded Term Loan 2 (7)		09/30/2026		Diversified Conglomerate Service			—				—				5,598				—				7

 

 

 

---

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) —(Continued)

DECEMBER 31, 2024

(In thousands, except share data)

 

Issuer Name		Maturity		Industry		Current Coupon				Basis Point Spread Above Index (4)				Par / Shares				Cost				Fair Value (3)
Omnia Exterior Solutions, LLC - Revolver (7)		12/29/2029		Diversified Conglomerate Service			—				—				2,100				—			$	(16	)
ORL Acquisition, Inc.		09/03/2027		Business Services			13.73	%		3M SOFR+940					4,305				4,263				3,745
						(PIK 7.50%)
ORL Acquisition, Inc. - Revolver (7)		09/03/2027		Business Services			—				—				149				—				(19	)
OSP Embedded Purchaser, LLC		12/17/2029		Aerospace and Defense			10.08	%		3M SOFR+575					25,505				25,242				25,097
OSP Embedded Purchaser, LLC - Revolver (7)		12/17/2029		Aerospace and Defense			—				—				1,477				—				(24	)
Pacific Purchaser, LLC - Unfunded Term Loan (7)		09/30/2028		Business Services			—				—				2,747				—				16
Pacific Purchaser, LLC - Revolver (7)		09/30/2028		Business Services			—				—				1,373				—				(12	)
PAR Excellence Holdings, Inc. - Unfunded Revolver (7)		09/03/2030		Healthcare, Education and Childcare			—				—				2,681				—				(27	)
PCS MIDCO INC		03/01/2030		Financial Services			10.08	%		1M SOFR+575					2,178				2,157				2,178
PCS MIDCO INC - Unfunded Term Loan (7)		03/01/2026		Financial Services			—				—				2,239				—				22
PCS MIDCO INC - Funded Revolver		03/01/2030		Financial Services			10.08	%		1M SOFR+575					308				308				308
PCS MIDCO INC - Unfunded Revolver (7)		03/01/2030		Financial Services			—				—				1,454				—				—
PlayPower, Inc.		08/28/2030		Manufacturing/Basic Industry			9.58	%		3M SOFR+525					11,970				11,882				11,970
PlayPower, Inc. - Unfunded Revolver (7)		08/28/2030		Manufacturing/Basic Industry			—				—				2,570				—				—
PL Acquisitionco, LLC - Revolver (7)		11/09/2027		Retail			—				—				1,618				—				(437	)
Pragmatic Institute, LLC (10)		07/06/2028		Business Services			—				—				37,548				35,977				15,770
Pragmatic Institute, LLC - Revolver (10)		07/06/2028		Business Services			—				—				5,209				5,042				2,188
Project Granite Buyer, Inc.		12/31/2030		Business Services			10.08	%		3M SOFR+575					6,000				5,940				5,940
Project Granite Buyer, Inc. - Unfunded Term Loan (7)		12/31/2026		Business Services			—				—				923				—				—
Project Granite Buyer, Inc. - Revolver (7)		12/31/2030		Business Services			—				—				554				—				—
Quantic Electronics, LLC - Funded Revolver		11/19/2026		Aerospace and Defense			10.43	%		3M SOFR+610					282				282				282
Quantic Electronics, LLC - Unfunded Revolver (7)		11/19/2026		Aerospace and Defense			—				—				247				—				—
Radius Aerospace, Inc. - Revolver		03/31/2025		Aerospace and Defense			10.66	%		3M SOFR+615					1,262				1,262				1,230
Radius Aerospace, Inc. - Unfunded Revolver (7)