Item 2.02 Results of Operations and Financial Condition Preliminary Estimates of Results as of September 30, 2024 On October 22, 2024, PennantPark Investment Corporation (the “Company”) announced certain preliminary estimates of its financial results for the quarter ended September 30, 2024. •Net asset value per share is estimated to be between $7.53 and $7.58 per common share at September 30, 2024. This compares to a net asset value per common share of $7.52 at June 30, 2024. •Net investment income is estimated to be between $0.21 and $0.23 per common share for the quarter ended September 30, 2024. This compares to net investment income of $0.24 per common share for the quarter ended June 30, 2024. •Core net investment income(1) is estimated to be between $0.21 and $0.23 per common share for the quarter ended September 30, 2024. This compares to core net investment income of $0.21 per common share for the quarter ended June 30, 2024. •The investment portfolio at fair value was $1.33 billion, compared to $1.26 billion as of June 30, 2024. During the quarter, the Company committed to invest an additional $52.5 million in PennantPark Senior Loan Fund, LLC (“PSLF”) and its JV partner also committed to invest an additional $75.0 million of capital. In addition during the quarter, PSLF increased its senior credit facility provided by BNP Paribas to $400 million from $325 million. The additional capital will allow PSLF to scale its investment portfolio to over $1.5 billion. •At September 30, 2024, there were two loans on non-accrual representing 4.1% of the portfolio at cost and 2.3% at fair market value versus three loans on non-accrual at June 30, 2024 representing 4.2% of the portfolio at cost and 2.5% at fair market value. •As of September 30, 2024, the Company had approximately $776.5 million of total debt consisting of, $461.5 million of borrowings outstanding under the Company’s multi-currency senior secured revolving credit facility with Truist Bank, as amended and restated (the “Credit Facility”), at cost, $150.0 million in aggregate principal amount of 4.5% Notes due 2026 outstanding, and $165.0 million in aggregate principal amount of 4.0% Notes due 2026 outstanding •At September 30, 2024, we had approximately $63.4 million in cash and unused capacity under the Credit Facility. •At September 30, 2024, the Company had approximately $63.4 million in cash and unused capacity under the Credit Facility. Subsequent to quarter end, PSLF called fifty percent of the unfunded commitments from its members, and in connection with this capital call PSLF purchased assets from the Company which created in excess of $100 million of additional liquidity at PNNT. These estimates are subject to the completion of the Company’s financial closing procedures and are not a comprehensive statement of the Company’s financial position, results of operations or cash flows for the quarter ended September 30, 2024. Final results may differ materially from these estimates as a result of the completion of the Company’s financial closing procedures, as well as any subsequent events, including the discovery of information affecting fair values of the Company’s portfolio investments as of September 30, 2024, arising between the date hereof and the completion of the Company’s financial statements and the filing of the Company’s Form 10-K for the year then ended. The preliminary financial estimates provided herein have been prepared by, and are the responsibility of the Company’s management. RSM US LLP, the Company’s independent registered public accounting firm, has not audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, RSM US LLP does not express an opinion or any other form of assurance with respect thereto. (1) Supplemental information regarding core net investment income Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended September 30, 2024, there were no one-time or non-recurring investment income or expenses. Forward-Looking Statements |
