The following is a summary of the PennantPark Investment Corporation (PNNT) Q4 2024 Earnings Call Transcript:

Financial Performance:

• GAAP and core net investment income was reported at $0.22 per share.

• Adjusted NAV increased by 0.5% to $7.56 per share from $7.52.

• Operating expenses included interest and credit facility expenses of $12.3 million, and management fees totaling $7.4 million.

• Net realized and unrealized gains on investments and debt were $4 million for the quarter.

Business Progress:

• Invested $192 million in 12 new and 44 existing portfolio companies during the quarter, highlighting strong investment activity.

• Expanded the JV portfolio to over $1.5 billion, enhancing investment capacity and earnings momentum.

• The JV now includes increased senior secured credit facilities, rising from $325 million to $400 million.

Opportunities:

• Continued focus on the core middle market with strong covenant protections and selective investment strategy will drive future growth.

• Increased the JV investment capacity which is expected to significantly enhance PNNT's earnings momentum in future quarters.

Risks:

• Non-accruals represented 4.1% of the portfolio at cost and 2.3% at market value, indicating some level of credit risk.

• The high leverage ratio of PNNT at about 1.5x, while targeting a return to 1.25x to 1.3x, poses a financial risk in maintaining sustainable operations.

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