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Jun 30, 2022
PennantPark Q3 2022 Earnings Report
Announced an increase of its quarterly distribution and its financial results.
Key Takeaways
PennantPark Investment Corporation announced financial results for the third fiscal quarter ended June 30, 2022, with net investment income totaling $10.6 million, or $0.16 per share.
Portfolio totaled $1,314.8 million with investments in first lien secured debt, second lien secured debt, subordinated debt, and preferred and common equity.
Debt portfolio consisted of 96% variable-rate investments and 4% fixed-rate investments.
Invested $326.3 million in 11 new and 36 existing portfolio companies with a weighted average yield on debt investments of 8.7%.
Declared an increase of its fourth fiscal quarter 2022 distribution to $0.15 per share, payable on October 3, 2022.
PennantPark
PennantPark
PennantPark Revenue by Segment
Revenue by Segment
First Lien Secured Debt Revenue
CapyFin.comSecond Lien Secured Debt Revenue
CapyFin.comSubordinated Debt Revenue
CapyFin.com Forward Guidance
PennantPark anticipates future Net Investment Income growth through rising base rates, higher spreads, a growing PSLF joint venture, and rotation of equity proceeds.
Positive Outlook
- Rising base rates
- Higher spreads on new loan originations
- Growing PSLF joint venture
- Potential to rotate equity proceeds into cash paying loans
- Increase the facility size from $465.0 million to $500.0 million
Challenges Ahead
- Changes in the economy
- Risks associated with possible disruption in the Company’s operations
- Economy generally due to terrorism
- Natural disasters
- Pandemics such as COVID-19