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Sep 30, 2020
PennantPark Floating Rate Q4 2020 Earnings Report
Announced financial results, showing a solid portfolio performance amidst challenging economic conditions.
Key Takeaways
PennantPark Floating Rate Capital Ltd. reported strong portfolio performance for Q4 2020, with a portfolio totaling $1,086.9 million. The company invested $15.3 million in new and existing portfolio companies and experienced net investment income of $10.3 million, or $0.27 per share.
Portfolio totaled $1,086.9 million as of September 30, 2020.
Invested $15.3 million in one new and nine existing portfolio companies during the quarter.
Net investment income was $10.3 million, or $0.27 per share, for the quarter.
Net change in net assets resulting from operations totaled $17.0 million, or $0.44 per share.
PennantPark Floating Rate
PennantPark Floating Rate
Forward Guidance
Company anticipates NAV and Net Investment Income will be bolstered over time due to solid portfolio performance, significant equity positions in high-growth companies, and continued optimization of financing.
Positive Outlook
- Solid portfolio performance
- Significant equity positions in high growth companies
- Continuing optimization of financing
- Expected closing of Cano Health business combination in late Q1 or early Q2 2021
- Potential net asset value increase of $0.17 per share from Cano Health transaction
Challenges Ahead
- Customary lock up restrictions on shares owned by a limited partnership
- Fair value on December 31, 2020, may likely include an illiquidity discount
- No assurance that the implied value of equity interest will be representative of the value ultimately realized
- COVID-19 pandemic and uncertainty surrounding its continued adverse economic impact
- Changes in the capital market conditions