PennantPark Investment Corporation filed SEC Form 8-K: Results of Operations and Financial Condition, Other Events
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
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Item 2.02 Results of Operations and Financial Condition
Highlights and Preliminary Estimates of Results as of December 31, 2025 On January 16, 2026, PennantPark Investment Corporation (the "Company") announced certain preliminary estimates of its financial results for the quarter ended December 31, 2025.
Highlights:
• In December 2025, PennantPark Investment Corporation sold its equity investment in JF Intermediate, LLC for $67.5 million, resulting in a realized gain of $63.1 million. This amount approximates the fair value of the investment as of September 30, 2025. JF represented 23% of the equity investment portfolio of the Company at fair value on that date, excluding its equity investment in PennantPark Senior Loan Fund LLC.
• In December 2025, PennantPark Investment Corporation, amended and extended its multi-currency senior revolving credit facility with Truist Bank and other lenders (the “Credit Facility”). Among other things, the amendment increased lender commitments to $535 million from $500 million, decreased our borrowing cost to SOFR + 2.10%, down from SOFR + 2.35%, extended the revolving period to 2029, and maturity to 2030.
Preliminary estimates:
• Net asset value per share is estimated to be between $6.97 and $7.02 per common share at December 31, 2025. This compares to a net asset value per common share of $7.11 at September 30, 2025. The decrease in net asset value per share is estimated to be attributable to distributions in excess of net investment income, which included a one-time non-recurring net expense of $0.03 per common share related to the Company’s Credit Facility amendment as noted above. The performance of the overall portfolio is estimated to result in a gain of $0.02 to $0.04 per common share.
• Core net investment income is estimated to be between $0.13 and $0.15 per common share for the quarter ended December 31, 2025 and excludes approximately $0.03 per common share of one-time non-recurring expenses related to the Company’s Credit Facility amendment and extension noted above, which is net of the impact on incentive fees(1). This compares to core net investment income of $0.15 per common share for the quarter ended September 30, 2025.
• Net investment income is estimated to be between $0.10 and $0.12 per common share for the quarter ended December 31, 2025 and includes approximately $0.03 per common share of one-time non-recurring expenses related to the Company’s Credit Facility amendment and extension noted above, which is net of the impact on incentive fees. This compares to net investment income of $0.15 per common share for the quarter ended September 30, 2025.
• The investment portfolio at fair value was $1.2 billion, compared to $1.3 billion as of September 30, 2025.
• At December 31, 2025, there were four loans on non-accrual representing 2.2% of the portfolio at cost and 1.1% at fair market value versus four loans on non-accrual at September 30, 2025 representing 1.3% of the portfolio at cost and 0.1% at fair market value.
• As of December 31, 2025, the Company had approximately $611 million of total debt consisting of, $296 million of borrowings outstanding at cost under the Company’s Credit Facility, $150 million in aggregate principal amount of 4.50% Notes due in May 2026 outstanding, and $165 million in aggregate principal amount of 4.00% Notes due in November 2026.
• At December 31, 2025, our debt to equity ratio is estimated to be 1.34x compared to 1.60x at September 30, 2025.
• At December 31, 2025, we had approximately $46 million in cash and approximately $239 million in unused capacity under the Credit Facility.
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These estimates are subject to the completion of the Company’s financial closing procedures and are not a comprehensive statement of the Company’s financial position, results of operations or cash flows for the quarter ended December 31, 2025. Final results may differ materially from these estimates as a result of the completion of the Company’s financial closing procedures, as well as any subsequent events, including the discovery of information affecting fair values of the Company’s portfolio investments as of December 31, 2025, arising between the date hereof and the completion of the Company’s financial statements and the filing of the Company’s Form 10-Q for the quarter then ended.
The preliminary financial estimates provided herein have been prepared by, and are the responsibility of the Company’s management. RSM US LLP, the Company’s independent registered public accounting firm, has not audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, RSM US LLP does not express an opinion or any other form of assurance with respect thereto.
(1) Supplemental information regarding core net investment income
Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended December 31, 2025, Core NII excluded: i) $3.9 million or $0.06 per share of financing costs that were expensed in connection with the amendment and extension of the Credit Facility on December 11, 2025; and iii) an add back of $1.9 million or $0.03 per share of incentive fee expense.
Forward-Looking Statements
This report on Form 8-K, may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports the Company files under the Exchange Act. All statements other than statements of historical facts included in this report on Form 8-K, are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
IItem 8.01 Other Information
The information set forth under Item 2.02 above is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. |
Dated: January 16, 2026
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PENNANTPARK INVESTMENT CORPORATION
By: /s/ Richard T. Allorto, Jr. Richard T. Allorto, Jr. Chief Financial Officer & Treasurer
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