PennantPark Investment Corp. Files 2024 Annual Report

TL;DR

PNNT filed its 2024 10-K. Full financials and risks inside.

AI Summary

PennantPark Investment Corp. filed its annual report for the fiscal year ended September 30, 2024. The company is registered in Maryland and its common stock trades on the New York Stock Exchange under the ticker PNNT. This filing covers its performance and disclosures for the past fiscal year.

Why It Matters

This 10-K filing provides investors with a comprehensive overview of PennantPark Investment Corp.'s financial health, operational performance, and risk factors for the fiscal year ended September 30, 2024.

Risk Assessment

Risk Level: medium — As a publicly traded investment company, PennantPark Investment Corp. is subject to market fluctuations, credit risks, and regulatory changes inherent in the financial services industry.

Key Players & Entities

• PennantPark Investment Corporation (company) — Registrant
• PNNT (company) — Trading Symbol
• New York Stock Exchange (company) — Exchange
• September 30, 2024 (date) — Fiscal Year End

FAQ

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share PNNT The New York Stock E
• $6.88 — ed on the closing price on that date of $6.88 on The New York Stock Exchange was appr
• $10 million — investments by investing approximately $10 million to $50 million of capital, on average,
• $50 million — investing approximately $10 million to $50 million of capital, on average, in the securiti
• $1 billion — annual revenues between $50 million and $1 billion. The companies in which we invest are t
• $250 million — ility allowed Funding I to borrow up to $250 million at LIBOR (or an alternative risk-free f
• $22.4 billion — has invested through its managed funds $22.4 billion in 704 companies with more than 200 dif
• $8.2 billion — des investments by the Company totaling $8.2 billion in 374 companies. Our Administrator h

Filing Documents

• pnnt-20240930.htm (10-K) — 16582KB
• pnnt-ex21_1.htm (EX-21.1) — 16KB
• pnnt-ex23_1.htm (EX-23.1) — 5KB
• pnnt-ex31_1.htm (EX-31.1) — 11KB
• pnnt-ex31_2.htm (EX-31.2) — 14KB
• pnnt-ex32_1.htm (EX-32.1) — 7KB
• pnnt-ex32_2.htm (EX-32.2) — 8KB
• pnnt-ex99_2.htm (EX-99.2) — 5KB
• pnnt-ex99_3.htm (EX-99.3) — 2068KB
• pnnt-ex99_4.htm (EX-99.4) — 1769KB
• img10952335_0.jpg (GRAPHIC) — 8KB
• img10952335_1.jpg (GRAPHIC) — 49KB
• 0000950170-24-130670.txt ( ) — 63161KB
• pnnt-20240930.xsd (EX-101.SCH) — 2017KB
• pnnt-20240930_htm.xml (XML) — 15462KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 39 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40 Item 6.

Selected Financial Data

Selected Financial Data 44 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8. Consolidated Financial Statements and Supplementary Data 60 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 104 Item 9A.

Controls and Procedures

Controls and Procedures 104 Item 9B. Other Information 105 Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 105 PART III Item 10. Directors, Executive Officers and Corporate Governance 106 Item 11.

Executive Compensation

Executive Compensation 106 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 106 Item 13. Certain Relationships and Related Transactions, and Director Independence 106 Item 14. Principal Accountant Fees and Services 106 PART IV Item 15. Exhibits and Financial Statement Schedules 107

Signatures

Signatures 110 PAR T I In this annual report on Form 10-K, or the Report, except where context suggest otherwise, the terms "Company," "we," "our" or "us" refers to PennantPark Investment Corporation and its consolidated subsidiaries; "2024 Notes" refers to our 5.50% Notes due 2024; "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"; "BNP Credit Facility" refers to our revolving credit facility with BNP Paribas prior to deconsolidation of Funding I; "Code" refers to the Internal Revenue Code of 1986, as amended; "Funding I" refers to PennantPark Investment Funding I, LLC, a wholly-owned subsidiary prior to deconsolidation on July 31, 2020; "PennantPark Investment" refers to only PennantPark Investment Corporation; "PennantPark Investment Administration" or "Administrator" refers to PennantPark Investment Administration, LLC; "PennantPark Investment Advisers" or "Investment Adviser" refers to PennantPark Investment Advisers, 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; "RIC" refers to a regulated investment company under the Code. References to our portfolio, our investments and our business include investments we made through SBIC II and other consolidated subsidiaries; "SBA" refers to the Small Business Administration; "SBCAA" refers to the Small Business Credit Availability Act; "SBIC" refers to a small business investment company under the Small Business Investment Act of 1958, as amended, or the "1958 Act"; "SBIC Fund" refers collectively to our consolidated subsidiaries, PennantPark SBIC II LP, or SBIC II, and its general partner, PennantPark SBIC GP II, LLC;"Taxable Subsidiary" refers collectively to our consolidated subsidiaries, PNN

Business

Item 1. Business General Business of PennantPark Investment Corporation PennantPark Investment Corporation is a BDC whose objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments primarily made to U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. We believe U.S. middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies. We seek to create a diversified portfolio that includes first lien secured debt, second lien secured debt, subordinated debt and equity investments by investing approximately $10 million to $50 million of capital, on average, in the securities of middle-market companies. We expect this investment size to vary proportionately with the size of our capital base. We use the term "middle-market" to refer to companies with annual revenues between $50 million and $1 billion. The companies in which we invest are typically highly leveraged, and, in most cases, are not rated by national rating agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor's system) from the national rating agencies. Securities rated below investment grade are often referred to as "leveraged loans," "high yield" securities or "junk bonds" and are often higher risk compared to debt instruments that are rated above investment grade and have speculative characteristics. Our debt investments may generally range in maturity from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions. Our investment activity depends on many factors, including the amount of debt and equity capital available to middle-marke

View Full Filing

View this 10-K filing on SEC EDGAR