PennantPark Q1 2021 Earnings Report
Key Takeaways
PennantPark Investment Corporation reported a substantial increase in net asset value due to material appreciation in the value of several equity co-investments. The company invested $68.2 million in new and existing portfolio companies and had sales and repayments of investments totaling $102.6 million.
Portfolio totaled $1,127.1 million as of December 31, 2020.
Net investment income totaled $8.3 million, or $0.12 per share.
Net change in net assets resulting from operations totaled $71.1 million, or $1.06 per share.
Distributions of $0.12 per share were declared for the quarter.
PennantPark
PennantPark
Forward Guidance
The company anticipates generating increased income over time by rotating equity positions into yield generating debt instruments and growing the balance sheet and PSLF JV.
Positive Outlook
- Ability to generate increased income by rotating equity positions into yield generating debt instruments.
- Potential to grow the PNNT balance sheet.
- Opportunity to grow the PSLF JV.
- Liquidity and capital resources are sufficient to take advantage of market opportunities.
- No portfolio companies on non-accrual as of December 31, 2020.
Challenges Ahead
- Decrease in investment income compared to the same period in the prior year due to decreases in the size of the debt portfolio and LIBOR.
- Net realized losses totaled $17.6 million.
- The COVID-19 pandemic has affected the business and results of operations.
- Changes in the capital markets may impact the Credit Facility.
- Uncertainty surrounding the continued adverse economic impact of the COVID-19 pandemic.