PennantPark Floating Rate Q2 2020 Earnings Report
Key Takeaways
PennantPark Floating Rate Capital Ltd. reported a net decrease in net assets resulting from operations of $21.1 million, or $0.54 per share, for the quarter ended March 31, 2020. The portfolio totaled $1,179.0 million as of March 31, 2020.
Portfolio totaled $1,179.0 million as of March 31, 2020.
Invested $167.5 million in seven new and 37 existing portfolio companies with a weighted average yield on debt investments of 7.5% for the three months ended March 31, 2020.
Net investment income totaled $11.7 million, or $0.30 per share, for the three months ended March 31, 2020.
Net decrease in net assets resulting from operations totaled $21.1 million, or $0.54 per share, for the three months ended March 31, 2020.
PennantPark Floating Rate
PennantPark Floating Rate
Forward Guidance
The company expects the COVID-19 pandemic will have a material adverse impact on our future net investment income, the fair value of our portfolio investments, and the results of operations and financial condition of our portfolio companies.
Challenges Ahead
- COVID-19 has had a significant impact on the U.S. economy.
- Restrictions and “stay-at-home” orders have essentially resulted in the shutdown of all non-essential businesses.
- COVID-19 pandemic has had, and continues to have, an adverse impact on our operating results and the operating results of our portfolio companies.
- We had a significant reduction of our net asset value as of March 31, 2020 as compared to our net asset value in the prior quarter.
- The company may run into liquidity issues in the future if we are unable to draw on the unused borrowing capacity under our Credit Facility due the breach of financial covenants.