PennantPark Q3 2022 Earnings Report
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
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