Company Quick10K Filing
Quick10K
Pennantpark Investment
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-Q 2018-12-31 Quarter: 2018-12-31
10-K 2018-09-30 Annual: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
10-K 2015-09-30 Annual: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-09-30 Annual: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-Q 2013-12-31 Quarter: 2013-12-31
8-K 2019-10-10 Regulation FD, Exhibits
8-K 2019-09-24 Regulation FD, Exhibits
8-K 2019-09-24 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-09-24 Regulation FD, Exhibits
8-K 2019-09-05 Regulation FD, Exhibits
8-K 2019-09-04 Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-07-29 Other Events, Exhibits
8-K 2019-07-10 Regulation FD, Exhibits
8-K 2019-06-04 Regulation FD, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-04-08 Regulation FD, Exhibits
8-K 2019-03-06 Regulation FD, Exhibits
8-K 2019-02-22 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2019-02-05 Shareholder Vote, Other Events
8-K 2019-01-31 Other Events, Exhibits
8-K 2019-01-09 Regulation FD, Exhibits
8-K 2018-12-05 Regulation FD, Exhibits
8-K 2018-11-15 Earnings, Exhibits
8-K 2018-10-10 Regulation FD, Exhibits
8-K 2018-09-07 Regulation FD, Exhibits
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-07-09 Regulation FD, Exhibits
8-K 2018-06-06 Regulation FD, Exhibits
8-K 2018-04-09 Regulation FD, Exhibits
8-K 2018-03-14 Shareholder Vote
8-K 2018-03-05 Regulation FD, Exhibits
8-K 2018-02-27 Shareholder Vote
8-K 2018-02-06 Shareholder Vote
8-K 2018-01-12 Regulation FD, Exhibits
NAN North American Nickel 11,204
FTEO Fronteo 177
MRBK Mercantile Bankshares 110
IFRX Inflarx 72
GSAH GS Acquisition Holdings 0
TSLX TPG Specialty Lending 0
PIO Pioneer 0
FDUS Fidus Investment 0
WHF Whitehorse Finance 0
GULF Crimson Exploration 0
PNNT 2019-06-30
Part I-Consolidated Financial Information
Item 1. Consolidated Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 pnnt-ex311_6.htm
EX-31.2 pnnt-ex312_7.htm
EX-32.1 pnnt-ex321_8.htm
EX-32.2 pnnt-ex322_9.htm

Pennantpark Investment Earnings 2019-06-30

PNNT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 pnnt-10q_20190630.htm 10-Q pnnt-10q_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE TRANSITION PERIOD FROM              TO             

COMMISSION FILE NUMBER: 814-00736

 

PENNANTPARK INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

MARYLAND

 

20-8250744

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

590 Madison Avenue, 15th Floor

New York, N.Y.

 

10022

(Address of principal executive offices)

 

(Zip Code)

 

(212) 905-1000

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

PNNT

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

☐  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐  No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August 7, 2019 was 67,045,105.

 


 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2019

TABLE OF CONTENTS

 

 

 

 

 

PART I. CONSOLIDATED FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of June 30, 2019 (unaudited) and September 30, 2018

 

4

 

 

 

Consolidated Statements of Operations for the three and nine months ended June 30, 2019 and 2018 (unaudited)

 

5

 

 

 

Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2019 and 2018 (unaudited)

 

6

 

 

 

Consolidated Statements of Cash Flows for the nine months ended June 30, 2019 and 2018 (unaudited)

 

7

 

 

 

Consolidated Schedules of Investments as of June 30, 2019 (unaudited) and September 30, 2018

 

8

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

14

 

 

 

Report of Independent Registered Public Accounting Firm

 

25

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

26

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

33

 

 

 

Item 4. Controls and Procedures

 

34

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

35

 

 

 

Item 1A. Risk Factors

 

35

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

36

 

 

 

Item 3. Defaults Upon Senior Securities

 

36

 

 

 

Item 4. Mine Safety Disclosures

 

36

 

 

 

Item 5. Other Information

 

36

 

 

 

Item 6. Exhibits

 

37

 

 

 

SIGNATURES

 

38

 

 

2


 

PART I—CONSOLIDATED FINANCIAL INFORMATION

 

 

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where context suggest otherwise, the terms “Company,” “we,” “our” or “us” refer to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC Funds” refers collectively to our consolidated subsidiaries, PennantPark SBIC LP, or SBIC I, and its general partner, PennantPark SBIC GP, LLC, and PennantPark SBIC II LP, or SBIC II, and its general partner, PennantPark SBIC GP II, LLC; “Funding I” refers to PennantPark Investment Funding I, LLC; “Taxable Subsidiaries” refers to PNNT Cascade Environmental Holdings, LLC, PNNT CI (Galls) Prime Investment Holdings, LLC, PNNT ecoserve, LLC, PNNT Investment Holdings, LLC and PNNT New Gulf Resources, LLC; “PennantPark Investment Advisers” or “Investment Adviser” refers to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refers to PennantPark Investment Administration, LLC; “SBA” refers to the Small Business Administration; “SBIC” refers to a small business investment company under the Small Business Investment Act of 1958, as amended, or the “1958 Act”; “BNP Credit Facility” refers to our revolving credit facility with BNP Paribas; “SunTrust Credit Facility” refers to our multi-currency, senior secured revolving credit facility with SunTrust Bank, as amended and restated; “Credit Facilities” refers to the BNP Credit Facility and SunTrust Credit Facility collectively; “2019 Notes” refers to our 4.50% notes due 2019, which we redeemed in March 2019; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 Act”; “Code” refers to the Internal Revenue Code of 1986, as amended; and “RIC” refers to a regulated investment company under the Code. References to our portfolio, our investments and our business include investments we make through our SBIC Funds and other consolidated subsidiaries.

 

 

 

3


 

Item 1.

Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

June 30, 2019

 

 

September 30, 2018

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$1,002,864,286 and $896,720,950, respectively)

 

 

1,001,919,866

 

 

$

905,271,258

 

Non-controlled, affiliated investments (cost—$37,446,796 and $91,520,908, respectively)

 

 

30,753,466

 

 

 

78,078,331

 

Controlled, affiliated investments (cost—$293,382,082 and $255,574,317, respectively)

 

 

242,162,582

 

 

 

148,735,885

 

Total of investments (cost—$1,333,693,164 and $1,243,816,175, respectively)

 

 

1,274,835,914

 

 

 

1,132,085,474

 

Cash and cash equivalents (cost—$21,754,580 and $19,543,625, respectively)

 

 

21,744,836

 

 

 

19,506,154

 

Interest receivable

 

 

7,219,742

 

 

 

7,606,964

 

Prepaid expenses and other assets

 

 

373,782

 

 

 

920,235

 

Total assets

 

 

1,304,174,274

 

 

 

1,160,118,827

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

12,068,118

 

 

 

12,429,712

 

BNP Credit Facility payable (cost—$178,000,000 and zero, respectively) (See Notes 5 and 10)

 

 

177,110,000

 

 

 

 

SunTrust Credit Facility payable (cost—$382,636,000 and $80,520,000, respectively) (See Notes 5 and 10)

 

 

372,060,191

 

 

 

77,645,830

 

2019 Notes payable (par— zero and $250,000,000, respectively) (See Notes 5 and 10)

 

 

 

 

 

251,322,500

 

SBA debentures payable, net (par—$150,000,000 and $180,000,000, respectively) (See Notes 5 and 10)

 

 

146,001,990

 

 

 

175,373,229

 

Base management fee payable, net (See Note 3)

 

 

4,653,657

 

 

 

4,086,831

 

Performance-based incentive fee payable, net (See Note 3)

 

 

2,471,086

 

 

 

2,964,265

 

Interest payable on debt

 

 

4,007,743

 

 

 

6,576,393

 

Accrued other expenses

 

 

91,965

 

 

 

818,172

 

Total liabilities

 

 

718,464,750

 

 

 

531,216,932

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 67,045,105 and 69,053,958 shares issued and outstanding, respectively

   Par value $0.001 per share and 100,000,000 shares authorized

 

 

67,045

 

 

 

69,054

 

Paid-in capital in excess of par value

 

 

789,259,509

 

 

 

803,729,220

 

Accumulated distributable net loss

 

 

(203,617,030

)

 

 

(174,896,379

)

Total net assets

 

$

585,709,524

 

 

$

628,901,895

 

Total liabilities and net assets

 

$

1,304,174,274

 

 

$

1,160,118,827

 

Net asset value per share

 

$

8.74

 

 

$

9.11

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

4


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

19,928,284

 

 

$

19,491,552

 

 

$

66,484,378

 

 

$

60,608,891

 

Payment-in-kind

 

 

1,987,294

 

 

 

1,585,945

 

 

 

4,625,804

 

 

 

4,545,929

 

Other income

 

 

530,923

 

 

 

1,494,072

 

 

 

1,992,875

 

 

 

5,567,138

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

253,191

 

 

 

 

 

 

2,845,090

 

Payment-in-kind

 

 

 

 

 

 

 

 

 

 

 

1,807,655

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

3,435,510

 

 

 

1,480,768

 

 

 

7,272,766

 

 

 

2,931,462

 

Payment-in-kind

 

 

1,454,009

 

 

 

453,974

 

 

 

2,855,450

 

 

 

2,347,371

 

Other income

 

 

776,944

 

 

 

 

 

 

949,445

 

 

 

 

Total investment income

 

 

28,112,964

 

 

 

24,759,502

 

 

 

84,180,718

 

 

 

80,653,536

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

4,653,657

 

 

 

3,772,669

 

 

 

13,583,748

 

 

 

13,381,545

 

Performance-based incentive fee (See Note 3)

 

 

2,471,085

 

 

 

2,497,843

 

 

 

5,146,696

 

 

 

8,528,663

 

Interest and expenses on debt (See Note 10)

 

 

7,808,175

 

 

 

5,565,240

 

 

 

21,119,041

 

 

 

17,363,511

 

Administrative services expenses (See Note 3)

 

 

538,125

 

 

 

521,625

 

 

 

1,592,375

 

 

 

1,564,875

 

Other general and administrative expenses

 

 

692,178

 

 

 

626,213

 

 

 

2,002,723

 

 

 

1,882,793

 

Expenses before Management Fees waiver and provision for taxes

 

 

16,163,220

 

 

 

12,983,590

 

 

 

43,444,583

 

 

 

42,721,387

 

Debt issuance costs (See Notes 5 and 10)

 

 

 

 

 

 

 

 

2,696,498

 

 

 

 

Make-whole premium (See Notes 5 and 10)

 

 

 

 

 

 

 

 

2,162,526

 

 

 

 

Management Fees waiver (See Note 3)

 

 

 

 

 

 

 

 

 

 

 

(1,427,253

)

Provision for taxes

 

 

300,000

 

 

 

 

 

 

900,000

 

 

 

 

Net expenses

 

 

16,463,220

 

 

 

12,983,590

 

 

 

49,203,607

 

 

 

41,294,134

 

Net investment income

 

 

11,649,744

 

 

 

11,775,912

 

 

 

34,977,111

 

 

 

39,359,402

 

Realized and unrealized (loss) gain on investments and debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (loss) gain on investments on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(43,486,868

)

 

 

17,085,362

 

 

 

(33,757,334

)

 

 

31,754,691

 

Non-controlled and controlled, affiliated investments

 

 

(56,148,032

)

 

 

342,086

 

 

 

(56,375,131

)

 

 

11,199,690

 

Net realized (loss) gain on investments

 

 

(99,634,900

)

 

 

17,427,448

 

 

 

(90,132,465

)

 

 

42,954,381

 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

36,381,944

 

 

 

(12,925,765

)

 

 

7,535,406

 

 

 

(15,407,098

)

Non-controlled and controlled, affiliated investments

 

 

57,045,559

 

 

 

(927,824

)

 

 

45,366,352

 

 

 

(34,752,509

)

Debt depreciation (See Notes 5 and 10)

 

 

186,504

 

 

 

1,560,376

 

 

 

9,914,139

 

 

 

3,086,378

 

Net change in unrealized appreciation (depreciation) on investments and debt

 

 

93,614,007

 

 

 

(12,293,213

)

 

 

62,815,897

 

 

 

(47,073,229

)

Net realized and unrealized (loss) gain from investments and debt

 

 

(6,020,893

)

 

 

5,134,235

 

 

 

(27,316,568

)

 

 

(4,118,848

)

Net increase in net assets resulting from operations

 

$

5,628,851

 

 

$

16,910,147

 

 

$

7,660,543

 

 

$

35,240,554

 

Net increase in net assets resulting from operations per common share (See Note 7)

 

$

0.08

 

 

$

0.24

 

 

$

0.11

 

 

$

0.50

 

Net investment income per common share

 

$

0.17

 

 

$

0.17

 

 

$

0.51

 

 

$

0.55

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

5


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net increase in net assets resulting from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

11,649,744

 

 

$

11,775,912

 

 

$

34,977,111

 

 

$

39,359,402

 

Net realized (loss) gain on investments

 

 

(99,634,900

)

 

 

17,427,448

 

 

 

(90,132,465

)

 

 

42,954,381

 

Net change in unrealized appreciation (depreciation) on investments

 

 

93,427,503

 

 

 

(13,853,589

)

 

 

52,901,758

 

 

 

(50,159,607

)

Net change in unrealized depreciation on debt

 

 

186,504

 

 

 

1,560,376

 

 

 

9,914,139

 

 

 

3,086,378

 

Net increase in net assets resulting from operations

 

 

5,628,851

 

 

 

16,910,147

 

 

 

7,660,543

 

 

 

35,240,554

 

Distributions to stockholders

 

 

(12,068,118

)

 

 

(12,597,854

)

 

 

(36,381,194

)

 

 

(38,179,755

)

Capital transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(7,776,586

)

 

 

(14,471,720

)

 

 

(7,776,586

)

Net decrease in net assets

 

 

(6,439,267

)

 

 

(3,464,293

)

 

 

(43,192,371

)

 

 

(10,715,787

)

Net assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

592,148,791

 

 

 

639,556,977

 

 

 

628,901,895

 

 

 

646,808,471

 

End of period

 

$

585,709,524

 

 

$

636,092,684

 

 

$

585,709,524

 

 

$

636,092,684

 

Capital share activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock repurchased

 

 

 

 

 

 

 

 

(2,008,853

)

 

 

(1,072,759

)

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

7,660,543

 

 

$

35,240,554

 

Adjustments to reconcile net increase in net assets resulting from

   operations to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Net change in net unrealized (appreciation) depreciation on investments

 

 

(52,901,758

)

 

 

50,159,607

 

Net change in unrealized depreciation on debt

 

 

(9,914,139

)

 

 

(3,086,378

)

Net realized loss (gain) on investments

 

 

90,132,465

 

 

 

(42,954,381

)

Net accretion of discount and amortization of premium

 

 

(2,095,442

)

 

 

(1,684,494

)

Purchases of investments

 

 

(494,793,457

)

 

 

(423,297,254

)

Payment-in-kind income

 

 

(8,765,915

)

 

 

(9,698,374

)

Proceeds from dispositions of investments

 

 

325,598,567

 

 

 

556,356,780

 

Amortization of deferred financing costs

 

 

628,761

 

 

 

1,597,386

 

Decrease (increase) in interest receivable

 

 

387,222

 

 

 

(2,060,103

)

Decrease in prepaid expenses and other assets

 

 

546,453

 

 

 

2,930,530

 

Increase in payable for investments purchased

 

 

 

 

 

13,686,000

 

Decrease in interest payable on debt

 

 

(2,568,650

)

 

 

(1,875,143

)

Increase (decrease) in base management fee payable, net

 

 

566,826

 

 

 

(1,072,567

)

(Decrease) increase in performance-based incentive fee payable, net

 

 

(493,179

)

 

 

227,835

 

Decrease in accrued other expenses

 

 

(726,208

)

 

 

(787,676

)

Net cash (used in) provided by operating activities

 

 

(146,737,911

)

 

 

173,682,322

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(14,471,720

)

 

 

(7,776,586

)

Capitalized borrowing costs

 

 

 

 

 

(1,721,750

)

Distributions paid to stockholders

 

 

(36,742,787

)

 

 

(38,372,850

)

Repayments of 2019 Notes

 

 

(250,000,000

)

 

 

 

Borrowings under SBA debentures

 

 

 

 

 

71,000,000

 

Repayments under SBA debentures

 

 

(30,000,000

)

 

 

(90,000,000

)

Borrowings under BNP Credit Facility

 

 

178,000,000

 

 

 

 

Borrowings under SunTrust Credit Facility

 

 

655,000,000

 

 

 

132,520,000

 

Repayments under SunTrust Credit Facility

 

 

(352,884,000

)

 

 

(170,392,900

)

Net cash provided by (used in) financing activities

 

 

148,901,493

 

 

 

(104,744,086

)

Net increase in cash equivalents

 

 

2,163,582

 

 

 

68,938,236

 

Effect of exchange rate changes on cash

 

 

75,100

 

 

 

(49,213

)

Cash and cash equivalents, beginning of period

 

 

19,506,154

 

 

 

38,202,068

 

Cash and cash equivalents, end of period

 

$

21,744,836

 

 

$

107,091,091

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

23,058,930

 

 

$

9,525,005

 

Taxes paid

 

$

1,111,409

 

 

$

322,693

 

Non-cash exchanges and conversions

 

$

14,823,909

 

 

$

31,942,605

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

JUNE 30, 2019

(Unaudited)

 

Issuer Name

 

Maturity / Expiration

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread

Above Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Investments in Non-Controlled, Non-Affiliated Portfolio Companies—171.1 (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—109.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Insulated Glass, LLC (5)

 

12/21/2023

 

Building Materials

 

 

8.04

%

 

3M L+550

 

 

 

31,122,000

 

 

$

30,553,961

 

 

$

30,655,170

 

American Insulated Glass, LLC (7)

 

12/21/2023

 

Building Materials

 

 

 

 

 

 

 

 

1,350,649

 

 

 

 

 

 

(20,260

)

Bazaarvoice, Inc. (5)

 

02/01/2024

 

Printing and Publishing

 

 

8.15

%

 

1M L+575

 

 

 

14,813,063

 

 

 

14,683,654

 

 

 

14,738,997

 

Bottom Line Systems, LLC (5)

 

02/13/2023

 

Healthcare, Education and Childcare

 

 

8.33

%

 

3M L+600

 

 

 

22,470,735

 

 

 

22,233,687

 

 

 

22,467,189

 

Broder Bros., Co.

 

12/02/2022

 

Consumer Products

 

 

11.11

%

 

3M L+850

 

 

 

27,362,339

 

 

 

27,363,111

 

 

 

27,362,339

 

Cano Health, LLC (5)

 

12/23/2021

 

Healthcare, Education and Childcare

 

 

8.69

%

 

1M L+625

 

 

 

28,914,172

 

 

 

28,601,364

 

 

 

28,914,172

 

DermaRite Industries LLC

 

03/03/2022

 

Manufacturing / Basic Industries

 

 

9.40

%

 

3M L+700

 

 

 

9,775,000

 

 

 

9,682,735

 

 

 

9,681,508

 

Deva Holdings, Inc. (5)

 

10/31/2023

 

Consumer Products

 

 

8.65

%

 

3M L+625

 

 

 

4,497,486

 

 

 

4,429,736

 

 

 

4,497,486

 

Deva Holdings, Inc. (7)

 

10/31/2022

 

Consumer Products

 

 

 

 

 

 

 

 

385,000

 

 

 

 

 

 

 

Hollander Sleep Products, LLC

 

06/09/2023

 

Consumer Products

 

 

 

(6)

 

 

 

 

19,713,838

 

 

 

19,414,795

 

 

 

9,068,365

 

Hollander Sleep Products, LLC - DIP

 

10/18/2019

 

Consumer Products

 

 

9.33

%

 

1M L+700

 

 

 

2,418,373

 

 

 

2,418,373

 

 

 

2,394,189

 

Hollander Sleep Products, LLC - DIP (7)

 

10/18/2019

 

Consumer Products

 

 

 

 

 

 

 

 

2,095,923

 

 

 

 

 

 

(20,959

)

HW Holdco, LLC (5)

 

12/10/2024

 

Media

 

 

8.70

%

 

3M L+625

 

 

 

17,524,839

 

 

 

17,357,025

 

 

 

17,524,839

 

HW Holdco, LLC (Revolver)

 

12/10/2024

 

Media

 

 

8.70

%

 

3M L+625

 

 

 

1,029,677

 

 

 

1,029,677

 

 

 

1,029,677

 

HW Holdco, LLC (Revolver) (7)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

2,357,419

 

 

 

 

 

 

 

Impact Group, LLC (5)

 

06/27/2023

 

Personal, Food and Miscellaneous Services

 

 

8.93

%

 

1M L+650

 

 

 

20,155,265

 

 

 

20,049,104

 

 

 

19,953,711

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

Personal, Food and Miscellaneous Services

 

 

11.94

%

 

1M L+950

 

 

 

14,812,356

 

 

 

14,631,003

 

 

 

14,812,356

 

K2 Pure Solutions NoCal, L.P. (5)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

7.19

%

 

1M L+475

 

 

 

27,065,500

 

 

 

26,694,070

 

 

 

26,711,227

 

K2 Pure Solutions NoCal, L.P. (Revolver) (7)

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

1,938,095

 

 

 

 

 

 

(25,369

)

Kentucky Downs, LLC (5)

 

03/07/2025

 

Hotels, Motels, Inns and Gaming

 

 

11.90

%

 

1M L+950

 

 

 

9,948,414

 

 

 

9,828,406

 

 

 

10,024,046

 

 

 

 

 

 

 

 

(PIK 3.00%

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kentucky Downs, LLC (7)

 

03/07/2025

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

2,068,965

 

 

 

 

 

 

 

Lombart Brothers, Inc. (5)

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

8.58

%

 

3M L+625

 

 

 

15,317,553

 

 

 

15,136,641

 

 

 

15,164,378

 

Lombart Brothers, Inc. (Revolver)

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

10.50

%

 

P+500

 

 

 

780,843

 

 

 

780,843

 

 

 

780,843

 

Lombart Brothers, Inc. (Revolver) (7)

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

989,068

 

 

 

 

 

 

 

MeritDirect, LLC (5)

 

05/23/2024

 

Media

 

 

8.06

%

 

3M L + 550

 

 

 

19,787,000