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PNNT PennantPark Investment

Filed: 4 Aug 21, 5:10pm

`

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, 2021

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

5.50% Notes due 2024

PNNTG

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 4, 2021 was 67,045,105.

 


 

 

PENNANTPARK INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2021

TABLE OF CONTENTS

 

 

 

 

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” refers to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC Fund” refers collectively to our consolidated subsidiaries, 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, a wholly-owned subsidiary prior to deconsolidation on July 31, 2020; “Taxable Subsidiaries” refers to PNNT CI (Galls) Prime Investment Holdings, LLC, and PNNT Investment Holdings, LLC; “PSLF” refers to PennantPark Senior Loan Fund, LLC, an unconsolidated joint venture; “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 prior to deconsolidation of Funding I; “Truist Credit Facility” refers to our multi-currency, senior secured revolving credit facility with Truist Bank (formerly SunTrust Bank), as amended and restated; “Credit Facilities” refers to the BNP Credit Facility and the Truist Credit Facility collectively; “2024 Notes” refers to our 5.50% Notes due 2024; “2026 Notes” refers to our 4.50% Notes due 2026; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 Act”; “SBCAA” refers to the Small Business Credit Availability 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 SBIC II and other consolidated subsidiaries.

 

 

3


 

 

Item 1.

Consolidated Financial Statements

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

June 30, 2021

 

 

September 30, 2020

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost—$634,123,304 and $713,683,209, respectively)

 

$

719,327,212

 

 

$

735,674,666

 

Non-controlled, affiliated investments (cost—$77,628,920 and $77,628,920, respectively)

 

 

48,882,776

 

 

 

27,753,893

 

Controlled, affiliated investments (cost—$409,894,837 and $374,260,162, respectively)

 

 

379,988,526

 

 

 

318,342,859

 

Total investments (cost—$1,121,647,060 and $1,165,572,291, respectively)

 

 

1,148,198,514

 

 

 

1,081,771,418

 

Cash and cash equivalents (cost—$14,207,092 and $25,801,087, respectively)

 

 

14,212,253

 

 

 

25,806,002

 

Interest receivable

 

 

4,881,211

 

 

 

5,005,715

 

Distribution receivable

 

 

1,694,000

 

 

 

1,393,716

 

Prepaid expenses and other assets

 

 

 

 

 

376,030

 

Total assets

 

 

1,168,985,978

 

 

 

1,114,352,881

 

Liabilities

 

 

 

 

 

 

 

 

Distributions payable

 

 

8,045,413

 

 

 

8,045,413

 

Payable for investments purchased

 

 

3,017,500

 

 

 

5,461,508

 

Truist Credit Facility payable, at fair value (cost—$214,544,900 and $388,252,000, respectively) (See Notes 5 and 10)

 

 

213,489,240

 

 

 

368,701,972

 

2024 Notes payable, net (par—$86,250,000) (See Notes 5 and 10)

 

 

84,336,685

 

 

 

83,837,560

 

2026 Notes payable, net (par—$150,000,000) (See Notes 5 and 10)

 

 

145,639,797

 

 

 

 

SBA debentures payable, net (par—$63,500,000 and $118,500,000, respectively) (See Notes 5 and 10)

 

 

62,110,290

 

 

 

115,772,677

 

Base management fee payable, net (See Note 3)

 

 

4,357,898

 

 

 

4,369,637

 

Interest payable on debt

 

 

3,765,084

 

 

 

2,022,614

 

Accrued other expenses

 

 

1,142,576

 

 

 

432,648

 

Total liabilities

 

 

525,904,483

 

 

 

588,644,029

 

Commitments and contingencies (See Note 11)

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

 

 

Common stock, 67,045,105 shares issued and outstanding

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

 

 

67,045

 

 

 

67,045

 

Paid-in capital in excess of par value

 

 

787,625,031

 

 

 

787,625,031

 

Accumulated distributable net loss

 

 

(144,610,581

)

 

 

(261,983,224

)

Total net assets

 

$

643,081,495

 

 

$

525,708,852

 

Total liabilities and net assets

 

$

1,168,985,978

 

 

$

1,114,352,881

 

Net asset value per share

 

$

9.59

 

 

$

7.84

 

 

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

11,972,559

 

 

$

20,118,883

 

 

$

35,073,841

 

 

$

63,252,326

 

Payment-in-kind

 

 

2,095,094

 

 

 

2,099,536

 

 

 

5,565,833

 

 

 

5,962,936

 

Other income

 

 

474,749

 

 

 

1,165,825

 

 

 

979,816

 

 

 

2,107,027

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment-in-kind

 

 

 

 

 

 

 

 

456,998

 

 

 

 

From controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

2,278,866

 

 

 

588,818

 

 

 

6,732,901

 

 

 

1,793,442

 

Payment-in-kind

 

 

1,977,974

 

 

 

1,434,567

 

 

 

4,982,468

 

 

 

5,830,555

 

Dividend income

 

 

1,694,000

 

 

 

 

 

 

4,667,000

 

 

 

 

Total investment income

 

 

20,493,242

 

 

 

25,407,629

 

 

 

58,458,857

 

 

 

78,946,286

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (See Note 3)

 

 

4,357,897

 

 

 

4,643,273

 

 

 

12,754,455

 

 

 

14,266,402

 

Performance-based incentive fee (See Note 3)

 

 

 

 

 

1,921,984

 

 

 

 

 

 

4,579,657

 

Interest and expenses on debt (See Note 10)

 

 

6,941,877

 

 

 

8,316,571

 

 

 

16,835,861

 

 

 

26,145,154

 

Administrative services expenses (See Note 3)

 

 

380,020

 

 

 

521,520

 

 

 

1,390,060

 

 

 

1,564,560

 

Other general and administrative expenses

 

 

518,480

 

 

 

643,480

 

 

 

1,805,443

 

 

 

1,936,322

 

Expenses before performance-based incentive fee waiver and provision for taxes

 

 

12,198,274

 

 

 

16,046,828

 

 

 

32,785,819

 

 

 

48,492,095

 

Performance-based incentive fee waiver (See Note 3)

 

 

 

 

 

(1,921,984

)

 

 

 

 

 

(1,921,984

)

Provision for taxes

 

 

150,000

 

 

 

300,000

 

 

 

450,000

 

 

 

900,000

 

Net expenses

 

 

12,348,274

 

 

 

14,424,844

 

 

 

33,235,819

 

 

 

47,470,111

 

Net investment income

 

 

8,144,968

 

 

 

10,982,785

 

 

 

25,223,038

 

 

 

31,476,175

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

41,687,247

 

 

 

(109,739

)

 

 

44,137,637

 

 

 

(10,719,114

)

Non-controlled and controlled, affiliated investments

 

 

 

 

 

 

 

 

(19,708,359

)

 

 

 

Net realized gain (loss) on investments

 

 

41,687,247

 

 

 

(109,739

)

 

 

24,429,278

 

 

 

(10,719,114

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(41,842,629

)

 

 

11,319,274

 

 

 

45,769,638

 

 

 

(12,334,358

)

Non-controlled and controlled, affiliated investments

 

 

25,512,201

 

 

 

18,495,283

 

 

 

64,581,297

 

 

 

(55,200,078

)

Debt (appreciation) depreciation (See Notes 5 and 10)

 

 

(1,621,774

)

 

 

(25,073,673

)

 

 

(18,494,368

)

 

 

21,301,111

 

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

 

 

(17,952,202

)

 

 

4,740,884

 

 

 

91,856,567

 

 

 

(46,233,325

)

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

 

 

23,735,045

 

 

 

4,631,145

 

 

 

116,285,845

 

 

 

(56,952,439

)

Net increase (decrease) in net assets resulting from operations

 

 

31,880,013

 

 

 

15,613,930

 

 

$

141,508,883

 

 

$

(25,476,264

)

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

 

$

0.48

 

 

$

0.23

 

 

$

2.11

 

 

$

(0.38

)

Net investment income per common share

 

$

0.12

 

 

$

0.16

 

 

$

0.38

 

 

$

0.47

 

 

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net increase (decrease) in net assets resulting from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

8,144,968

 

 

$

10,982,785

 

 

$

25,223,038

 

 

$

31,476,175

 

Net realized gain (loss) on investments

 

 

41,687,247

 

 

 

(109,739

)

 

 

24,429,278

 

 

 

(10,719,114

)

Net change in unrealized appreciation (depreciation) on investments

 

 

(16,330,428

)

 

 

29,814,557

 

 

 

110,350,935

 

 

 

(67,534,436

)

Net change in unrealized (appreciation) depreciation on debt

 

 

(1,621,774

)

 

 

(25,073,673

)

 

 

(18,494,368

)

 

 

21,301,111

 

Net increase (decrease) in net assets resulting from operations

 

 

31,880,013

 

 

 

15,613,930

 

 

 

141,508,883

 

 

 

(25,476,264

)

Distributions to stockholders

 

 

(8,045,413

)

 

 

(8,045,413

)

 

 

(24,136,240

)

 

 

(32,181,650

)

Net increase (decrease) in net assets

 

 

23,834,600

 

 

 

7,568,517

 

 

 

117,372,643

 

 

 

(57,657,914

)

Net assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

619,246,895

 

 

 

516,679,237

 

 

 

525,708,852

 

 

 

581,905,668

 

End of period

 

$

643,081,495

 

 

$

524,247,754

 

 

$

643,081,495

 

 

$

524,247,754

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

6


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

141,508,883

 

 

$

(25,476,264

)

Adjustments to reconcile net increase (decrease) in net assets resulting from

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

 

 

 

 

 

 

 

 

Net change in net unrealized (appreciation) depreciation on investments

 

 

(110,350,935

)

 

 

67,534,436

 

Net change in unrealized appreciation (depreciation) on debt

 

 

18,494,368

 

 

 

(21,301,111

)

Net realized (gain) loss on investments

 

 

(24,429,278

)

 

 

10,719,114

 

Net accretion of discount and amortization of premium

 

 

(2,919,367

)

 

 

(2,184,545

)

Purchases of investments

 

 

(276,375,611

)

 

 

(292,216,763

)

Payment-in-kind income

 

 

(11,048,827

)

 

 

(11,825,750

)

Proceeds from dispositions of investments

 

 

358,632,487

 

 

 

114,085,199

 

Amortization of deferred financing costs

 

 

2,012,037

 

 

 

1,302,122

 

Decrease in interest receivable

 

 

124,503

 

 

 

995,645

 

Increase in distribution receivable

 

 

(300,284

)

 

 

 

Decrease (Increase) in prepaid expenses and other assets

 

 

376,030

 

 

 

(437,143

)

Increase in payable for investments purchased

 

 

(2,444,008

)

 

 

 

Increase in interest payable on debt

 

 

1,742,470

 

 

 

2,770,690

 

(Decrease) increase in base management fee payable, net

 

 

(11,739

)

 

 

1,793

 

Increase (decrease) in accrued other expenses

 

 

709,928

 

 

 

(71,729

)

Net cash provided by (used in) operating activities

 

 

95,720,657

 

 

 

(156,104,306

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Distributions paid to stockholders

 

 

(24,136,238

)

 

 

(36,204,356

)

Proceeds from 2024 Notes issuance

 

 

 

 

 

10,912,500

 

Proceeds from 2026 Notes issuance

 

 

145,464,500

 

 

 

 

Repayments under SBA debentures

 

 

(55,000,000

)

 

 

(16,500,000

)

Borrowings under BNP Credit Facility

 

 

 

 

 

90,000,000

 

Repayments under BNP Credit Facility

 

 

 

 

 

(16,000,000

)

Borrowings under Truist Credit Facility

 

 

148,311,500

 

 

 

304,000,000

 

Repayments under Truist Credit Facility

 

 

(322,018,601

)

 

 

(188,000,000

)

Net cash (used in) provided by financing activities

 

 

(107,378,839

)

 

 

148,208,144

 

Net increase (decrease) in cash equivalents

 

 

(11,658,182

)

 

 

(7,896,162

)

Effect of exchange rate changes on cash

 

 

64,433

 

 

 

(55,030

)

Cash and cash equivalents, beginning of period

 

 

25,806,002

 

 

 

59,516,236

 

Cash and cash equivalents, end of period

 

$

14,212,253

 

 

$

51,565,044

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

13,081,354

 

 

$

22,072,342

 

Taxes paid

 

$

658,317

 

 

$

805,976

 

Non-cash exchanges and conversions

 

$

16,515,842

 

 

$

91,204,799

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

7


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

JUNE 30, 2021

(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—98.6% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—67.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 Freemont Street Acquisition, LLC

 

08/11/2025

 

Hotels, Motels, Inns and Gaming

 

 

9.50

%

 

1M L+800

 

 

 

8,281,547

 

 

$

7,559,230

 

 

$

8,447,178

 

Ad.net Acquisition, LLC

 

05/06/2026

 

Media

 

 

7.00

%

 

3M L+600

 

 

 

6,666,667

 

 

 

6,568,578

 

 

 

6,566,667

 

Ad.net Acquisition, LLC (Revolver)

 

05/06/2026

 

Media

 

 

7.00

%

 

3M L+600

 

 

 

94,444

 

 

 

94,444

 

 

 

93,028

 

Ad.net Acquisition, LLC (Revolver) (7)

 

05/06/2026

 

Media

 

 

 

 

 

 

 

 

461,111

 

 

 

 

 

 

(6,917

)

Altamira Technologies, LLC (Revolver)

 

07/24/2025

 

Aerospace and Defense

 

 

8.00

%

 

3M L+700

 

 

 

50,000

 

 

 

50,000

 

 

 

47,250

 

Altamira Technologies, LLC (Revolver) (7)

 

07/24/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

137,500

 

 

 

 

 

 

(7,562

)

American Insulated Glass, LLC

 

12/21/2023

 

Building Materials

 

 

6.50

%

 

3M L+550

 

 

 

15,835,726

 

 

 

15,662,946

 

 

 

15,677,369

 

Apex Service Partners, LLC

 

07/31/2025

 

Personal, Food and Miscellaneous Services

 

 

6.25

%

 

1M L+525

 

 

 

1,335,239

 

 

 

1,335,239

 

 

 

1,335,239

 

Applied Technical Services, LLC (7)

 

06/29/2022

 

Environmental Services

 

 

 

 

 

 

 

 

2,500,000

 

 

 

 

 

 

(9,375

)

Applied Technical Services, LLC (Revolver) (7)

 

12/29/2026

 

Environmental Services

 

 

 

 

 

 

 

 

1,000,000

 

 

 

 

 

 

(15,000

)

Bottom Line Systems, LLC

 

02/13/2023

 

Healthcare, Education and Childcare

 

 

6.25

%

 

1M L+550

 

 

 

6,153,097

 

 

 

6,122,942

 

 

 

6,153,097

 

Broder Bros., Co.

 

12/02/2022

 

Consumer Products

 

 

9.75

%

 

3M L+850

 

 

 

25,476,418

 

 

 

25,477,026

 

 

 

24,712,126

 

Compex Legal Services, Inc.

 

02/09/2026

 

Business Services

 

 

6.75

%

 

3M L+575

 

 

 

3,578,714

 

 

 

3,520,673

 

 

 

3,474,573

 

Compex Legal Services, Inc. (Revolver)

 

02/07/2025

 

Business Services

 

 

6.75

%

 

3M L+575

 

 

 

458,962

 

 

 

458,962

 

 

 

445,606

 

Compex Legal Services, Inc. (Revolver) (7)

 

02/07/2025

 

Business Services

 

 

 

 

 

 

 

 

196,698

 

 

 

 

 

 

(5,724

)

Crash Champions, LLC

 

08/05/2025

 

Auto Sector

 

 

6.25

%

 

3M L+525

 

 

 

2,800,000

 

 

 

2,773,287

 

 

 

2,730,000

 

Crash Champions, LLC (Revolver) (7)

 

05/14/2022

 

Auto Sector

 

 

 

 

 

 

 

 

3,200,000

 

 

 

 

 

 

(48,000

)

Datalot Inc. (Revolver) (7)

 

01/24/2025

 

Insurance

 

 

 

 

 

 

 

 

1,788,165

 

 

 

 

 

 

 

DermaRite Industries LLC

 

03/03/2022

 

Manufacturing / Basic Industries

 

 

8.00

%

 

1M L+700

 

 

 

8,433,635

 

 

 

8,410,936

 

 

 

8,433,635

 

DRS Holdings III, Inc.

 

11/03/2025

 

Consumer Products

 

 

7.25

%

 

3M L+625

 

 

 

10,000,000

 

 

 

9,900,538

 

 

 

9,950,000

 

DRS Holdings III, Inc. (Revolver) (7)

 

11/03/2025

 

Consumer Products

 

 

 

 

 

 

 

 

1,782,555

 

 

 

 

 

 

(8,913

)

ECL Entertainment, LLC

 

03/31/2028

 

Hotels, Motels, Inns and Gaming

 

 

8.25

%

 

1M L+750

 

 

 

8,769,231

 

 

 

8,683,050

 

 

 

8,944,615

 

ECM Industries, LLC (Revolver) (7)

 

12/23/2025

 

Electronics

 

 

 

 

 

 

 

 

517,594

 

 

 

 

 

 

(2,588

)

Gantech Acquisition Corp.

 

05/14/2026

 

Business Services

 

 

7.25

%

 

1M L+625

 

 

 

20,000,000

 

 

 

19,606,416

 

 

 

19,600,000

 

Gantech Acquisition Corp. (Revolver) (7)

 

05/14/2026

 

Business Services

 

 

 

 

 

 

 

 

1,991,084

 

 

 

 

 

 

(39,822

)

Hancock Roofing and Construction L.L.C. (7)

 

12/31/2022

 

Insurance

 

 

 

 

 

 

 

 

1,500,000

 

 

 

 

 

 

(15,000

)

Hancock Roofing and Construction L.L.C. (Revolver) (7)

 

12/31/2026

 

Insurance

 

 

 

 

 

 

 

 

750,000

 

 

 

 

 

 

(7,500

)

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

5.50

%

 

3M L+450

 

 

 

2,547,581

 

 

 

2,531,061

 

 

 

2,509,367

 

HW Holdco, LLC (Revolver)

 

12/10/2024

 

Media

 

 

5.50

%

 

3M L+450

 

 

 

2,167,742

 

 

 

2,167,742

 

 

 

2,135,226

 

HW Holdco, LLC (Revolver) (7)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

1,219,355

 

 

 

 

 

 

(18,290

)

Impact Group, LLC

 

06/27/2023

 

Personal, Food and Miscellaneous Services

 

 

8.37

%

 

1M L+737

 

 

 

19,514,976

 

 

 

19,458,342

 

 

 

19,563,764

 

IMIA Holdings, Inc.

 

04/09/2027

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

13,623,288

 

 

 

13,362,534

 

 

 

13,350,822

 

IMIA Holdings, Inc. (Revolver) (7)

 

04/09/2027

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,673,705

 

 

 

 

 

 

(33,474

)

Integrity Marketing Acquisition, LLC

 

08/27/2025

 

Insurance

 

 

6.50

%

 

3M L+550

 

 

 

16,541,605

 

 

 

16,436,870

 

 

 

16,293,481

 

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

Personal, Food and Miscellaneous Services

 

 

6.50

%

 

1M L+550

 

 

 

2,695,203

 

 

 

2,686,815

 

 

 

2,695,203

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

11,830,000

 

 

 

11,733,297

 

 

 

11,517,688

 

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

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

872,143

 

 

 

872,143

 

 

 

849,118

 

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

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

1,065,952

 

 

 

 

 

 

(28,141

)

LAV Gear Holdings, Inc.

 

10/31/2024

 

Leisure, Amusement, Motion Pictures, Entertainment

 

 

8.50

%

 

1M L+750

 

 

 

780,335

 

 

 

775,092

 

 

 

726,804

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lightspeed Buyer Inc.

 

02/03/2026

 

Healthcare, Education and Childcare

 

 

6.50

%

 

1M L+550

 

 

 

1,552,452

 

 

 

1,539,149

 

 

 

1,529,166

 

Lightspeed Buyer Inc. (7)

 

08/03/2021

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

882,075

 

 

 

 

 

 

(4,410

)

Lightspeed Buyer Inc. (Revolver)

 

02/03/2026

 

Healthcare, Education and Childcare

 

 

6.50

%

 

1M L+550

 

 

 

388,593

 

 

 

388,593

 

 

 

382,765

 

Lightspeed Buyer Inc. (Revolver) (7)

 

02/03/2026

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

777,187

 

 

 

 

 

 

(11,658

)

Lombart Brothers, Inc.

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

9.25

%

 

1M L+825

 

 

 

1,038,371

 

 

 

1,038,371

 

 

 

1,038,371

 

Lombart Brothers, Inc. (Revolver)

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

9.25

%

 

1M L+825

 

 

 

737,293

 

 

 

737,293

 

 

 

737,293

 

Mars Acquisition Holdings Corp.

 

5/14/2026

 

Media

 

 

6.50

%

 

3M L+550

 

 

 

8,000,000

 

 

 

7,842,903

 

 

 

7,840,000

 

Mars Acquisition Holdings Corp. (Revolver)(7)

 

5/14/2026

 

Media

 

 

 

 

 

 

 

 

806,142

 

 

 

 

 

 

(16,123

)

MBS Holdings, Inc. (Revolver) (7)

 

04/16/2027

 

Telecommunications

 

 

 

 

 

 

 

 

694,444

 

 

 

 

 

 

(13,889

)

MeritDirect, LLC

 

05/23/2024

 

Media

 

 

6.50

%

 

3M L+550

 

 

 

2,795,763

 

 

 

2,769,831

 

 

 

2,746,837

 

MeritDirect, LLC (Revolver) (7)

 

05/23/2024

 

Media

 

 

 

 

 

 

 

 

2,518,345

 

 

 

 

 

 

(44,071

)

OIS Management Services, LLC

 

06/15/2026

 

Healthcare, Education and Childcare

 

 

5.75

%

 

3M L+475

 

 

 

3,000,000

 

 

 

2,955,000

 

 

 

2,955,000

 

OIS Management Services, LLC (7)

 

06/15/2023

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

2,333,333

 

 

 

 

 

 

 

OIS Management Services, LLC (Revolver) (7)

 

06/15/2023

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

333,333

 

 

 

 

 

 

 

One Stop Mailing, LLC

 

05/07/2027

 

Cargo Transport

 

 

7.25

%

 

3M L+625

 

 

 

15,000,000

 

 

 

14,701,455

 

 

 

14,737,500

 

Ox Two, LLC

 

05/18/2026

 

Building Materials

 

 

7.00

%

 

1M L+600

 

 

 

15,710,625

 

 

 

15,465,973

 

 

 

15,396,413

 

Ox Two, LLC (Revolver) (7)

 

05/18/2026

 

Building Materials

 

 

 

 

 

 

 

 

2,419,355

 

 

 

 

 

 

(48,387

)

PRA Events, Inc.

 

08/07/2025

 

Business Services

 

 

11.50

%

 

3M L+1,050

 

 

 

22,998,761

 

 

 

19,745,280

 

 

 

20,583,891

 

 

 

 

 

 

 

 

(PIK 11.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRA Events, Inc. (Revolver)

 

08/07/2025

 

Business Services

 

 

11.50

%

 

3M L+1,050

 

 

 

2,390,931

 

 

 

2,052,702

 

 

 

2,139,883

 

 

 

 

 

 

 

 

(PIK 11.50

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Questex, LLC

 

09/09/2024

 

Media

 

 

6.75

%

 

3M L+575

 

 

 

21,881,250

 

 

 

21,620,983

 

 

 

20,349,563

 

Questex, LLC (Revolver)

 

09/09/2024

 

Media

 

 

6.75

%

 

3M L+575

 

 

 

2,154,255

 

 

 

2,154,255

 

 

 

2,003,457

 

Questex, LLC (Revolver) (7)

 

09/09/2024

 

Media

 

 

 

 

 

 

 

 

1,436,170

 

 

 

 

 

 

(100,532

)

Radius Aerospace, Inc. (Revolver) (7)

 

03/31/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

2,227,142

 

 

 

 

 

 

(62,805

)

Rancho Health MSO, Inc.

 

12/18/2025

 

Healthcare, Education and Childcare

 

 

6.75

%

 

3M L+575

 

 

 

3,665,813

 

 

 

3,590,724

 

 

 

3,601,661

 

Rancho Health MSO, Inc. (7)

 

12/18/2022

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

1,050,000

 

 

 

 

 

 

(18,375

)

Rancho Health MSO, Inc. (Revolver)

 

12/18/2025

 

Healthcare, Education and Childcare

 

 

6.75

%

 

3M L+575

 

 

 

525,000

 

 

 

525,000

 

 

 

515,812

 

Recteq, LLC (Revolver) (7)

 

01/29/2026

 

Consumer Products

 

 

 

 

 

 

 

 

1,126,761

 

 

 

 

 

 

(11,268

)

Research Horizons, LLC

 

06/28/2022

 

Media

 

 

7.25

%

 

1M L+625

 

 

 

27,767,736

 

 

 

27,650,002

 

 

 

27,351,220

 

Research Now Group, Inc. and Dynata, LLC

 

12/20/2024

 

Business Services

 

 

6.50

%

 

3M L+550

 

 

 

2,891,260

 

 

 

2,891,260

 

 

 

2,851,505

 

Riverpoint Medical, LLC (Revolver) (7)

 

06/20/2025

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

363,636

 

 

 

 

 

 

 

Riverside Assessments, LLC

 

03/10/2025

 

Education

 

 

7.25

%

 

3M L+625

 

 

 

16,251,968

 

 

 

16,014,542

 

 

 

15,683,150

 

Sales Benchmark Index LLC (Revolver) (7)

 

01/03/2025

 

Business Services

 

 

 

 

 

 

 

 

731,707

 

 

 

 

 

 

(31,098

)

Sargent & Greenleaf Inc. (Revolver)

 

12/20/2024

 

Electronics

 

 

7.00

%

 

3M L+550

 

 

 

298,972

 

 

 

298,972

 

 

 

297,477

 

Sargent & Greenleaf Inc. (Revolver) (7)

 

12/20/2024

 

Electronics

 

 

 

 

 

 

 

 

298,972

 

 

 

 

 

 

(1,495

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

8


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS(Continued)

JUNE 30, 2021

(Unaudited)

 

Issuer Name

 

Maturity / Expiration

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Schlesinger Global, Inc.

 

07/14/2025

 

 

Business Services

 

 

8.00

%

 

3M L+700

 

 

 

514,739

 

 

$

509,764

 

 

$

482,568

 

 

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schlesinger Global, Inc. (Revolver)

 

07/14/2025

 

 

Business Services

 

 

8.00

%

 

3M L+700

 

 

 

15,832

 

 

 

15,832

 

 

 

14,843

 

 

 

 

 

 

 

 

 

 

(PIK 1.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schlesinger Global, Inc. (Revolver)(7)

 

07/14/2025

 

 

Business Services

 

 

 

 

 

 

 

 

22,241

 

 

 

 

 

 

(1,390

)

Sigma Defense Systems, LLC

 

12/18/2025

 

 

Telecommunications

 

 

9.75

%

 

3M L+875

 

 

 

6,561,403

 

 

 

6,413,251

 

 

 

6,430,174

 

Sigma Defense Systems, LLC (Revolver)

 

12/18/2025

 

 

Telecommunications

 

 

9.75

%

 

3M L+875

 

 

 

380,348

 

 

 

380,348

 

 

 

372,741

 

Sigma Defense Systems, LLC (Revolver) (7)

 

12/18/2025

 

 

Telecommunications

 

 

 

 

 

 

 

 

570,522

 

 

 

 

 

 

(11,410

)

Signature Systems Holding Company - Term Loan II

 

12/31/2021

 

 

Chemicals, Plastics and Rubber

 

 

8.50

%

 

3M L+750

 

 

 

806,452

 

 

 

798,448

 

 

 

790,323

 

Signature Systems Holding Company (Revolver)

 

05/03/2024

 

 

Chemicals, Plastics and Rubber

 

 

8.50

%

 

3M L+750

 

 

 

1,209,677

 

 

 

1,209,677

 

 

 

1,185,484

 

Signature Systems Holding Company (Revolver) (7)

 

05/03/2024

 

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

806,452

 

 

 

 

 

 

(16,129

)

Solutionreach, Inc. (Revolver) (7)

 

01/17/2024

 

 

Communications

 

 

 

 

 

 

 

 

1,665,000

 

 

 

 

 

 

 

Spear Education, LLC

 

02/26/2025

 

 

Education

 

 

6.00

%

 

3M L+500

 

 

 

14,935,938

 

 

 

14,811,118

 

 

 

14,935,938

 

Spear Education, LLC (7)

 

02/26/2022

 

 

Education

 

 

 

 

 

 

 

 

6,875,000

 

 

 

 

 

 

 

Spectacle Gary Holdings, LLC

 

12/23/2025

 

 

Hotels, Motels, Inns and Gaming

 

 

11.00

%

 

1M L+900

 

 

 

21,546,000

 

 

 

20,950,185

 

 

 

23,431,275

 

TAC LifePort Purchaser, LLC (Revolver) (7)

 

03/01/2026

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

620,155

 

 

 

 

 

 

-

 

TPC Canada Parent, Inc. and TPC US Parent, LLC (8),(11)

 

11/24/2025

 

 

Food

 

 

6.25

%

 

3M L+525

 

 

 

1,775,602

 

 

 

1,775,602

 

 

 

1,722,334

 

TVC Enterprises, LLC

 

03/26/2026

 

 

Transportation

 

 

6.75

%

 

1M L+575

 

 

 

15,545,143

 

 

 

15,369,968

 

 

 

15,389,692

 

TVC Enterprises, LLC (Revolver) (7)

 

03/26/2026

 

 

Transportation

 

 

 

 

 

 

 

 

2,702,152

 

 

 

 

 

 

(27,021

)

TWS Acquisition Corporation

 

06/16/2025

 

 

Education

 

 

7.25

%

 

1M L+625

 

 

 

4,136,641

 

 

 

4,136,641

 

 

 

4,136,641

 

TWS Acquisition Corporation (Revolver) (7)

 

06/16/2025

 

 

Education

 

 

 

 

 

 

 

 

1,643,571

 

 

 

 

 

 

 

Tyto Athene, LLC  (Revolver) (7)

 

04/01/2026

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

363,610

 

 

 

 

 

 

(1,273

)

US Med Acquisition, Inc.

 

02/13/2023

 

 

Healthcare, Education and Childcare

 

 

8.50

%

 

1M L+750

 

 

 

8,034,021

 

 

 

8,034,021

 

 

 

8,034,020

 

Walker Edison Furniture Company LLC

 

03/31/2027

 

 

Home and Office Furnishings

 

 

6.75

%

 

3M L+575

 

 

 

24,937,500

 

 

 

24,336,404

 

 

 

24,314,062

 

Wildcat Buyerco, Inc.

 

02/27/2026

 

 

Electronics

 

 

6.00

%

 

3M L+500

 

 

 

1,632,819

 

 

 

1,615,783

 

 

 

1,623,750

 

Wildcat Buyerco, Inc. (7)

 

02/27/2022

 

 

Electronics

 

 

 

 

 

 

 

 

2,573,529

 

 

 

 

 

 

16,085

 

Wildcat Buyerco, Inc. (Revolver) (7)

 

02/27/2026

 

 

Electronics

 

 

 

 

 

 

 

 

551,471

 

 

 

 

 

 

(8,658

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

430,587,493

 

 

 

431,196,452

 

Second Lien Secured Debt—14.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlas Purchaser, Inc

 

05/07/2029

 

 

Telecommunications

 

 

9.75

%

 

3M L+900

 

 

 

17,000,000

 

 

 

16,493,629

 

 

 

16,830,000

 

Data Axle, Inc.

 

04/03/2024

 

 

Other Media

 

 

10.25

%

 

3M L+925

 

 

 

20,400,000

 

 

 

20,204,273

 

 

 

20,400,000

 

Halo Buyer, Inc.

 

07/06/2026

 

 

Consumer Products

 

 

9.25

%

 

1M L+825

 

 

 

32,500,000

 

 

 

32,096,343

 

 

 

31,118,750

 

Inventus Power, Inc.

 

09/29/2024

 

 

Electronics

 

 

9.50

%

 

3M L+850

 

 

 

13,500,000

 

 

 

13,245,552

 

 

 

13,230,000

 

QuantiTech LLC

 

02/04/2027

 

 

Aerospace and Defense

 

 

11.00

%

 

3M L+1,000

 

 

 

150,000

 

 

 

147,133

 

 

 

147,375

 

VT Topco, Inc.

 

08/24/2026

 

 

Business Services

 

 

7.10

%

 

3M L+700

 

 

 

10,000,000

 

 

 

9,958,354

 

 

 

9,900,000

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

92,145,284

 

 

 

91,626,125

 

Subordinated Debt/Corporate Notes—8.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blackhawk Industrial Distribution, Inc.

 

03/17/2025

 

 

Distribution

 

 

12.00

%

 

 

 

 

 

14,263,093

 

 

 

14,083,298

 

 

 

14,191,777

 

 

 

 

 

 

 

 

 

 

(PIK 2.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cascade Environmental LLC

 

12/30/2023

 

 

Environmental Services

 

 

13.00

%

 

 

 

 

 

41,120,269

 

 

 

40,782,553

 

 

 

41,325,870

 

 

 

 

 

 

 

 

 

 

(PIK 13.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Subordinated Debt/Corporate Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,865,851

 

 

 

55,517,647

 

Preferred Equity/Partnership Interests—3.8% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ad.net Holdings, Inc.

 

 

 

 

Media

 

 

 

 

 

 

 

 

3,000

 

 

 

300,000

 

 

 

300,000

 

AH Holdings, Inc.

 

 

 

 

Healthcare, Education and Childcare

 

 

6.00

%

 

 

 

 

 

211

 

 

 

500,000

 

 

 

930,206

 

Cascade Environmental LLC

 

 

 

 

Environmental Services

 

 

16.00

%

 

 

 

 

 

178,304

 

 

 

17,607,478

 

 

 

20,311,808

 

Mars Intermediate Holdings II, Inc

 

 

 

 

 

Media

 

 

 

 

 

 

 

 

414

 

 

 

414,000

 

 

 

414,000

 

MeritDirect Holdings, LP (9)

 

 

 

 

Media

 

 

 

 

 

 

 

 

540

 

 

 

540,000

 

 

 

676,524

 

NXOF Holdings, Inc. (Tyto Athene, LLC)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

160

 

 

 

159,808

 

 

 

186,532

 

Signature CR Intermediate Holdco, Inc.

 

 

 

 

Chemicals, Plastics and Rubber

 

 

12.00

%

 

 

 

 

 

1,527

 

 

 

1,527,026

 

 

 

1,358,016

 

TPC Holding Company, LP (8),(11)

 

 

 

 

Food

 

 

 

 

 

 

 

 

219

 

 

 

219,012

 

 

 

255,740

 

Total Preferred Equity/Partnership Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,267,324

 

 

 

24,432,826

 

Common Equity/Partnership Interests/Warrants—18.1% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ad.net Holdings, Inc.

 

 

 

 

Media

 

 

 

 

 

 

 

 

3,333

 

 

 

33,333

 

 

 

33,333

 

Affinion Group Holdings, Inc. (Warrants)

 

04/10/2024

 

 

Consumer Products

 

 

 

 

 

 

 

 

77,190

 

 

 

2,126,399

 

 

 

 

AG Investco LP (9)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

805,164

 

 

 

805,164

 

 

 

1,157,814

 

AG Investco LP (7), (9)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

194,836

 

 

 

 

 

 

 

Altamira Intermediate Company II, Inc.

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

125,000

 

 

 

125,000

 

 

 

39,635

 

ASP LCG Holdings, Inc. (Warrants)

 

05/05/2026

 

 

Education

 

 

 

 

 

 

 

 

933

 

 

 

586,975

 

 

 

845,080

 

Atlas Investment Aggregator, LLC

 

 

 

 

Telecomunications

 

 

 

 

 

 

 

 

1,700,000

 

 

 

1,700,000

 

 

 

1,717,000

 

Cascade Environmental LLC (9)

 

 

 

 

Environmental Services

 

 

 

 

 

 

 

 

33,901

 

 

 

2,852,080

 

 

 

829,200

 

CI (Allied) Investment Holdings, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

120,962

 

 

 

1,243,217

 

 

 

419,364

 

(PRA Events, Inc.) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (Summit) Investment Holdings LLC

 

 

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

134,180

 

 

 

1,409,866

 

 

 

2,523,354

 

(SFP Holdings, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cowboy Parent LLC

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

22,500

 

 

 

2,250,000

 

 

 

1,570,218

 

(Blackhawk Industrial Distribution, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crash Champion Holdings, LLC

 

 

 

 

Auto Sector

 

 

 

 

 

 

 

 

22

 

 

 

200,000

 

 

 

213,998

 

Delta InvestCo LP (Sigma Defense Systems, LLC) (9)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

570,522

 

 

 

570,522

 

 

 

594,427

 

Delta InvestCo LP (Sigma Defense Systems, LLC) (7), (9)

 

 

 

 

Telecommunications

 

 

 

 

 

 

 

 

570,522

 

 

 

 

 

 

 

ECM Investors, LLC (9)

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

167,537

 

 

 

167,537

 

 

 

516,652

 

eCommission Holding Corporation (11)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

80

 

 

 

1,004,625

 

 

 

692,475

 

Gauge Lash Coinvest LLC

 

 

 

 

Consumer Products

 

 

 

 

 

 

 

 

889,376

 

 

 

1,053,800

 

 

 

2,136,192

 

Gauge Schlesinger Coinvest, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

9

 

 

 

8,896

 

 

 

8,587

 

Gauge TVC Coinvest, LLC

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

810,645

 

 

 

 

 

 

1,758,681

 

(TVC Enterprises, LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GCOM InvestCo LP

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

1,855

 

 

 

809,488

 

 

 

452,289

 

GCOM InvestCo LP (7)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

965

 

 

 

 

 

 

 

Go Dawgs Capital III, LP

 

 

 

 

Building Materials

 

 

 

 

 

 

 

 

675,325

 

 

 

675,325

 

 

 

891,429

 

(American Insulated Glass, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Veracity Holdings, LP - Class A

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

15,000

 

 

 

1,500,000

 

 

 

4,892,722

 

(VT Topco, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

9


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS(Continued)

JUNE 30, 2021

(Unaudited)

 

Issuer Name

 

Maturity / Expiration

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Hancock Claims Consultants Investors, LLC (9)

 

 

 

 

Insurance

 

 

 

 

 

 

 

 

450,000

 

 

$

450,000

 

 

$

625,660

 

Infogroup Parent Holdings, Inc. (Data Axle, Inc.)

 

 

 

 

Other Media

 

 

 

 

 

 

 

 

181,495

 

 

 

2,040,000

 

 

 

2,609,348

 

Ironclad Holdco, LLC (Applied Technical Services, LLC) (9)

 

 

 

 

Environmental Services

 

 

 

 

 

 

 

 

3,960

 

 

 

396,000

 

 

 

415,578

 

ITC Rumba, LLC (Cano Health, LLC) (9)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

375,675

 

 

 

 

 

 

61,206,426

 

JWC-WE Holdings, L.P.

 

 

 

 

Home and Office Furnishings

 

 

 

 

 

 

 

 

1,906,433

 

 

 

 

 

 

9,462,933

 

(Walker Edison Furniture Company LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kadmon Holdings, Inc. (5)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

252,014

 

 

 

2,265,639

 

 

 

975,294

 

Kentucky Racing Holdco, LLC (Warrants)

 

 

 

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

161,252

 

 

 

 

 

 

960,832

 

Lariat ecoserv Co-Invest Holdings, LLC (9)

 

 

 

 

Environmental Services

 

 

 

 

 

 

 

 

363,656

 

 

 

363,656

 

 

 

785,497

 

Lightspeed Investment Holdco LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

273,143

 

 

 

273,143

 

 

 

309,959

 

Mars Intermidiate Holdings II, Inc.

 

 

 

 

Media

 

 

 

 

 

 

 

 

414

 

 

 

 

 

 

 

MeritDirect Holdings, LP (9)

 

 

 

 

Media

 

 

 

 

 

 

 

 

540

 

 

 

 

 

 

10,082

 

NEPRT Parent Holdings, LLC (Recteq, LLC) (9)

 

 

 

 

Consumer Products

 

 

 

 

 

 

 

 

1,299

 

 

 

1,262,432

 

 

 

1,893,428

 

NXOF Holdings, Inc.

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

3,261

 

 

 

3,261

 

 

 

112,559

 

(Tyto Athene, LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OceanSound Discovery Equity, LP

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

98,286

 

 

 

978,695

 

 

 

1,219,574

 

(Holdco Sands Intermediate, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oral Surgery (ITC) Holdings, LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

2,904

 

 

 

62,500

 

 

 

62,500

 

QuantiTech InvestCo LP (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

700

 

 

 

65,957

 

 

 

400,551

 

QuantiTech InvestCo LP (7), (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

967

 

 

 

 

 

 

 

QuantiTech InvestCo II LP (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

40

 

 

 

24,000

 

 

 

22,632

 

RFMG Parent, LP (Rancho Health MSO, Inc.)(9)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

1,050,000

 

 

 

1,050,000

 

 

 

1,050,000

 

SBI Holdings Investments LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

36,585

 

 

 

365,854

 

 

 

218,694

 

(Sales Benchmark Index LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature CR Intermediate Holdco, Inc.

 

 

 

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

80

 

 

 

80,370

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

1,500

 

 

 

1,500,000

 

 

 

1,749,600

 

Class A (US Dominion, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

1,500

 

 

 

 

 

 

4,186,635

 

Class B (US Dominion, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAC LifePort Holdings, LLC (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

232,558

 

 

 

232,558

 

 

 

286,182

 

TPC Holding Company, LP (8). (11)

 

 

 

 

Food

 

 

 

 

 

 

 

 

11,527

 

 

 

11,529

 

 

 

68,124

 

U.S. Well Services, Inc. - Class A (5), (11)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,261,201

 

 

 

3,021,880

 

 

 

1,273,813

 

UniVista Insurance

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

400

 

 

 

400,000

 

 

 

400,000

 

Wildcat Parent, LP (Wildcat Buyerco, Inc.)

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

2,314

 

 

 

231,400

 

 

 

388,832

 

ZS Juniper L.P.

 

 

 

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

1,056

 

 

 

1,056,250

 

 

 

4,566,979

 

(Juniper Landscaping of Florida, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Common Equity/Partnership Interests/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,257,351

 

 

 

116,554,162

 

Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

634,123,303

 

 

 

719,327,212

 

Investments in Non-Controlled, Affiliated Portfolio Companies—7.6% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity/Partnership Interests—6.2% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETX Energy, LLC (9)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

61,732

 

 

 

6,173,200

 

 

 

 

MidOcean JF Holdings Corp.

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

153,922

 

 

 

15,392,189

 

 

 

40,127,353

 

Total Preferred Equity/Partnership Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,565,389

 

 

 

40,127,353

 

Common Equity/Partnership Interests/Warrants—1.4% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETX Energy, LLC (9)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,658,389

 

 

 

29,711,576

 

 

 

 

ETX Energy Management Company, LLC

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,754,104

 

 

 

1,562,020

 

 

 

 

MidOcean JF Holdings Corp.

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

65,933

 

 

 

24,789,935

 

 

 

8,755,423

 

Total Common Equity/Partnership Interests/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,063,531

 

 

 

8,755,423

 

Total Investments in Non-Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

77,628,920

 

 

 

48,882,776

 

Investments in Controlled, Affiliated Portfolio Companies—59.1% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AKW Holdings Limited (8), (10), (11)

 

03/13/2024

 

 

Healthcare, Education and Childcare

 

 

7.50

%

 

3M L+700

 

 

£

30,000,000

 

 

 

41,696,550

 

 

 

41,443,500

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41,696,550

 

 

 

41,443,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

10


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS(Continued)

JUNE 30, 2021

(Unaudited)

 

Issuer Name

 

Maturity / Expiration

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Second Lien Secured Debt—10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mailsouth Inc.

 

04/23/2025

 

 

Printing and Publishing

 

 

15.00

%

 

 

 

 

 

10,687,269

 

 

$

10,687,267

 

 

$

10,687,268

 

 

 

 

 

 

 

 

 

 

(PIK 15.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Network Intermediate Holdings, LLC

 

11/30/2024

 

 

Healthcare, Education and Childcare

 

 

11.00

%

 

3M L+1,000

 

 

 

56,996,697

 

 

 

56,677,904

 

 

 

56,996,697

 

 

 

 

 

 

 

 

 

 

(PIK 11.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

67,365,171

 

 

 

67,683,965

 

Subordinated Debt—10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PennantPark Senior Loan Fund, LLC (11)

 

07/31/2027

 

 

Financial Services

 

 

9.00

%

 

3M L+800

 

 

 

64,154,570

 

 

 

64,154,571

 

 

 

64,154,571

 

Total Subordinated Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64,154,571

 

 

 

64,154,571

 

Preferred Equity—2.0% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

36,450

 

 

 

546,750

 

 

 

 

(PT Network, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Network Intermediate Holdings, LLC (9)

 

 

 

 

 

Healthcare, Education and Childcare

 

 

11.00

%

 

3M L+1,000

 

 

 

833

 

 

 

10,725,000

 

 

 

13,110,532

 

Total Preferred Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,271,750

 

 

 

13,110,532

 

Common Equity—30.1% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AKW Holdings Limited (8), (10), (11)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

£

950

 

 

 

132,497

 

 

 

1,817,756

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

333,333

 

 

 

5,000,000

 

 

 

 

(PT Network, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSpark, LLC

 

 

 

 

Printing and Publishing

 

 

 

 

 

 

 

 

51,151

 

 

 

16,515,842

 

 

 

22,444,795

 

PennantPark Senior Loan Fund, LLC (11)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

33,830,005

 

 

 

33,892,823

 

 

 

40,937,377

 

PT Network Intermediate Holdings, LLC (9)

 

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

621

 

 

 

7,157,560

 

 

 

47,087,419

 

RAM Energy Holdings LLC

 

 

 

 

Energy and Utilities

 

 

 

 

 

 

 

 

180,805

 

 

 

162,708,073

 

 

 

81,308,611

 

Total Common Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

225,406,795

 

 

 

193,595,958

 

Total Investments in Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409,894,837

 

 

 

379,988,526

 

Total Investments—178.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,121,647,058

 

 

 

1,148,198,514

 

Cash and Cash Equivalents—5.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,306,801

 

 

 

11,306,801

 

BNY Mellon Cash Reserve and Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,900,291

 

 

 

2,905,452

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,207,092

 

 

 

14,212,253

 

Total Investments and Cash Equivalents—195.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,135,854,150

 

 

$

1,162,410,767

 

Liabilities in Excess of Other Assets—(95.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(519,329,272

)

Net Assets—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

643,081,495

 

 

 

(1)

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities (See Note 6).

(2)

The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities (See Note 6).

(3)

Valued based on our accounting policy (See Note 2).

(4)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable London Interbank Offered Rate, or LIBOR or “L,” the Euro Interbank Offered Rate, or EURIBOR or “E,” or Prime rate, or “P.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 90-day or 180-day LIBOR rate (1M L, 3M L, or 6M L, respectively), and EURIBOR loans are typically indexed to a 90-day EURIBOR rate (3M E), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes payment-in-kind, or PIK, interest and other fee rates, if any.

(5)

The security was not valued using significant unobservable inputs. The value of all other securities was determined using significant unobservable inputs (See Note 5).

(6)

Non-income producing securities.

(7)

Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(8)

Non-U.S. company or principal place of business outside the United States.

(9)

Investment is held through our Taxable Subsidiaries (See Note 1).

(10)

Par / Shares amount is denominated in British Pounds (£) as denoted.

(11)

The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of June 30, 2021, qualifying assets represent 87% of the Company’s total assets and non-qualifying assets represent 13% of the Company’s total assets.

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

11


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2020

 

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—139.9% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—76.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 Freemont Street Acquisition, LLC

 

08/11/2025

 

Hotels, Motels, Inns and Gaming

 

 

9.50

%

 

1M L+800

 

 

 

8,302,303

 

 

$

7,543,090

 

 

$

7,887,188

 

Altamira Technologies, LLC (Revolver)

 

07/24/2025

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

125,000

 

 

 

125,000

 

 

 

120,625

 

Altamira Technologies, LLC (Revolver) (7)

 

07/24/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

62,500

 

 

 

 

 

 

(2,188

)

American Insulated Glass, LLC

 

12/21/2023

 

Building Materials

 

 

6.50

%

 

3M L+550

 

 

 

15,957,113

 

 

 

15,736,757

 

 

 

15,637,971

 

Apex Service Partners, LLC

 

07/31/2025

 

Personal, Food and Miscellaneous Services

 

 

6.25

%

 

1M L+525

 

 

 

178,844

 

 

 

178,844

 

 

 

173,479

 

Apex Service Partners, LLC (7)

 

07/31/2021

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

1,165,420

 

 

 

 

 

 

(34,963

)

Bottom Line Systems, LLC

 

02/13/2023

 

Healthcare, Education and Childcare

 

 

6.25

%

 

1M L+550

 

 

 

6,722,525

 

 

 

6,674,529

 

 

 

6,580,680

 

Broder Bros., Co.

 

12/02/2022

 

Consumer Products

 

 

9.75

%

 

3M L+850

 

 

 

25,907,420

 

 

 

25,907,420

 

 

 

23,510,984

 

Compex Legal Services, Inc.

 

02/09/2026

 

Business Services

 

 

6.75

%

 

3M L+575

 

 

 

3,605,894

 

 

 

3,539,582

 

 

 

3,539,906

 

Compex Legal Services, Inc. (7)

 

02/08/2021

 

Business Services

 

 

 

 

 

 

 

 

1,549,743

 

 

 

 

 

 

(12,863

)

Compex Legal Services, Inc. (Revolver)

 

02/07/2025

 

Business Services

 

 

6.75

%

 

3M L+575

 

 

 

458,962

 

 

 

458,962

 

 

 

450,563

 

Compex Legal Services, Inc. (Revolver) (7)

 

02/07/2025

 

Business Services

 

 

 

 

 

 

 

 

196,698

 

 

 

 

 

 

(3,600

)

Datalot Inc. (Revolver)

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

 

1,788,165

 

 

 

1,788,165

 

 

 

1,790,310

 

DermaRite Industries LLC

 

03/03/2022

 

Manufacturing / Basic Industries

 

 

8.00

%

 

1M L+700

 

 

 

8,975,884

 

 

 

8,924,948

 

 

 

8,975,884

 

DRS Holdings III, Inc. (Revolver) (7)

 

11/03/2025

 

Consumer Products

 

 

 

 

 

 

 

 

1,528,102

 

 

 

 

 

 

(27,964

)

ECM Industries, LLC (Revolver)

 

12/23/2025

 

Electronics

 

 

5.50

%

 

1M L+450

 

 

 

517,594

 

 

 

517,594

 

 

 

510,761

 

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

5.50

%

 

3M L+450

 

 

 

2,567,177

 

 

 

2,547,350

 

 

 

2,490,162

 

HW Holdco, LLC (Revolver) (7)

 

12/10/2024

 

Media

 

 

 

 

 

 

 

 

3,387,097

 

 

 

 

 

 

(101,613

)

IMIA Holdings, Inc.

 

10/26/2025

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

 

5,572,968

 

 

 

5,461,508

 

 

 

5,517,238

 

Impact Group, LLC

 

06/27/2023

 

Personal, Food and Miscellaneous Services

 

 

8.37

%

 

1M L+737

 

 

 

19,888,478

 

 

 

19,811,644

 

 

 

19,987,920

 

Integrity Marketing Acquisition, LLC

 

08/27/2025

 

Insurance

 

 

6.50

%

 

3M L+550

 

 

 

23,574,241

 

 

 

23,403,071

 

 

 

23,338,498

 

Integrity Marketing Acquisition, LLC (7)

 

07/15/2021

 

Insurance

 

 

 

 

 

 

 

 

592,800

 

 

 

 

 

 

(1,482

)

Juniper Landscaping of Florida, LLC

 

12/22/2021

 

Personal, Food and Miscellaneous Services

 

 

9.50

%

 

1M L+850

 

 

 

13,516,275

 

 

 

13,430,024

 

 

 

13,516,275

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

11,921,000

 

 

 

11,797,407

 

 

 

11,658,738

 

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

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

8.00

%

 

1M L+700

 

 

 

1,453,571

 

 

 

1,453,571

 

 

 

1,421,593

 

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

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

484,524

 

 

 

 

 

 

(10,660

)

Kentucky Downs, LLC (7)

 

03/07/2025

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

827,586

 

 

 

 

 

 

(12,414

)

LAV Gear Holdings, Inc.

 

10/31/2024

 

Leisure, Amusement, Motion Pictures, Entertainment

 

 

8.50

%

 

1M L+750

 

 

 

751,480

 

 

 

744,986

 

 

 

692,188

 

 

 

 

 

 

 

 

(PIK 5.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lightspeed Buyer Inc.

 

02/03/2026

 

Healthcare, Education and Childcare

 

 

6.25

%

 

1M L+525

 

 

 

1,564,213

 

 

 

1,548,989

 

 

 

1,544,661

 

Lightspeed Buyer Inc. (7)

 

08/03/2021

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

882,075

 

 

 

 

 

 

(2,205

)

Lightspeed Buyer Inc. (Revolver)

 

02/03/2026

 

Healthcare, Education and Childcare

 

 

6.75

%

 

1M L+575

 

 

 

1,165,780

 

 

 

1,165,780

 

 

 

1,151,208

 

Lombart Brothers, Inc. (Revolver)

 

04/13/2023

 

Healthcare, Education and Childcare

 

 

7.25

%

 

1M L+625

 

 

 

1,769,912

 

 

 

1,769,912

 

 

 

1,661,947

 

MeritDirect, LLC

 

05/23/2024

 

Media

 

 

6.50

%

 

3M L+550

 

 

 

2,901,820

 

 

 

2,868,498

 

 

 

2,763,983

 

MeritDirect, LLC (Revolver) (7)

 

05/23/2024

 

Media

 

 

 

 

 

 

 

 

2,518,345

 

 

 

 

 

 

(119,621

)

Ox Two, LLC

 

02/27/2023

 

Building Materials

 

 

7.25

%

 

1M L+625

 

 

 

21,352,147

 

 

 

21,112,545

 

 

 

21,245,386

 

Ox Two, LLC (Revolver)

 

02/27/2023

 

Building Materials

 

 

7.25

%

 

1M L+625

 

 

 

488,000

 

 

 

488,000

 

 

 

485,560

 

Ox Two, LLC (Revolver) (7)

 

02/27/2023

 

Building Materials

 

 

 

 

 

 

 

 

2,012,000

 

 

 

 

 

 

(10,060

)

Peninsula Pacific Entertainment LLC

 

11/13/2024

 

Hotels, Motels, Inns and Gaming

 

 

7.40

%

 

3M L+725

 

 

 

11,437,714

 

 

 

11,219,222

 

 

 

10,637,074

 

PRA Events, Inc.

 

08/08/2022

 

Business Services

 

 

 

(6)

 

 

 

 

19,180,820

 

 

 

18,839,885

 

 

 

16,150,251

 

PRA Events, Inc. (Revolver)

 

08/08/2022

 

Business Services

 

 

 

(6)

 

 

 

 

2,000,000

 

 

 

2,000,000

 

 

 

1,684,000

 

Provation Medical, Inc.

 

03/11/2024

 

Electronics

 

 

7.15

%

 

3M L+700

 

 

 

26,527,500

 

 

 

26,094,813

 

 

 

26,179,990

 

Questex, LLC

 

09/09/2024

 

Media

 

 

6.75

%

 

3M L+575

 

 

 

22,050,000

 

 

 

21,733,659

 

 

 

20,286,000

 

Questex, LLC (Revolver)

 

09/09/2024

 

Media

 

 

6.75

%

 

3M L+575

 

 

 

1,795,213

 

 

 

1,795,213

 

 

 

1,651,596

 

Questex, LLC (Revolver) (7)

 

09/09/2024

 

Media

 

 

 

 

 

 

 

 

1,795,213

 

 

 

 

 

 

(143,617

)

Radius Aerospace, Inc. (Revolver)

 

03/31/2025

 

Aerospace and Defense

 

 

6.75

%

 

3M L+575

 

 

 

1,336,285

 

 

 

1,336,285

 

 

 

1,298,602

 

Radius Aerospace, Inc. (Revolver) (7)

 

03/31/2025

 

Aerospace and Defense

 

 

 

 

 

 

 

 

890,857

 

 

 

 

 

 

(25,122

)

Research Horizons, LLC

 

06/28/2022

 

Media

 

 

7.25

%

 

1M L+625

 

 

 

29,546,453

 

 

 

29,334,375

 

 

 

28,364,595

 

Research Now Group, Inc. and Survey

   Sampling International LLC

 

12/20/2024

 

Business Services

 

 

6.50

%

 

3M L+550

 

 

 

2,913,731

 

 

 

2,913,731

 

 

 

2,752,019

 

Riverpoint Medical, LLC (Revolver) (7)

 

06/20/2025

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

363,636

 

 

 

 

 

 

(12,764

)

Riverside Assessments, LLC

 

03/10/2025

 

Education

 

 

6.75

%

 

3M L+575

 

 

 

15,671,250

 

 

 

15,389,332

 

 

 

14,848,509

 

Sargent & Greenleaf Inc. (Revolver) (7)

 

12/20/2024

 

Electronics

 

 

 

 

 

 

 

 

597,943

 

 

 

 

 

 

(10,763

)

Sales Benchmark Index LLC (7)

 

07/07/2021

 

Business Services

 

 

 

 

 

 

 

 

1,829,268

 

 

 

 

 

 

(43,902

)

Sales Benchmark Index LLC (Revolver) (7)

 

01/03/2025

 

Business Services

 

 

 

 

 

 

 

 

731,707

 

 

 

 

 

 

(17,561

)

Schlesinger Global, Inc.

 

07/14/2025

 

Business Services

 

 

7.00

%

 

3M L+600

 

 

 

516,273

 

 

 

510,389

 

 

 

478,844

 

Schlesinger Global, Inc. (Revolver)

 

07/14/2025

 

Business Services

 

 

7.00

%

 

3M L+600

 

 

 

15,759

 

 

 

15,759

 

 

 

14,617

 

Schlesinger Global, Inc. (Revolver) (7)

 

07/14/2025

 

Business Services

 

 

 

 

 

 

 

 

22,281

 

 

 

 

 

 

(1,615

)

Signature Systems Holding Company (Revolver)

 

05/03/2024

 

Chemicals, Plastics and Rubber

 

 

7.50

%

 

3M L+650

 

 

 

1,129,032

 

 

 

1,129,032

 

 

 

1,092,339

 

Signature Systems Holding Company (Revolver) (7)

 

05/03/2024

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

887,097

 

 

 

 

 

 

(28,831

)

Solutionreach, Inc. (Revolver)

 

01/17/2024

 

Communications

 

 

6.75

%

 

3M L+575

 

 

 

1,248,750

 

 

 

1,248,750

 

 

 

1,235,014

 

Solutionreach, Inc. (Revolver) (7)

 

01/17/2024

 

Communications

 

 

 

 

 

 

 

 

416,250

 

 

 

 

 

 

(4,579

)

Spear Education, LLC

 

02/26/2025

 

Education

 

 

6.50

%

 

3M L+500

 

 

 

15,049,375

 

 

 

14,906,170

 

 

 

14,673,140

 

Spear Education, LLC (7)

 

02/26/2022

 

Education

 

 

 

 

 

 

 

 

6,875,000

 

 

 

 

 

 

(171,875

)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

12


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)

SEPTEMBER 30, 2020

 

Issuer Name

 

Maturity / Expiration

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Spectacle Gary Holdings, LLC

 

12/23/2025

 

 

Hotels, Motels, Inns and Gaming

 

 

11.00

%

 

1M L+900

 

 

 

20,478,378

 

 

$

19,804,843

 

 

$

19,864,027

 

Spectacle Gary Holdings, LLC (7)

 

12/23/2025

 

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

1,121,622

 

 

 

 

 

 

(33,649

)

TPC Canada Parent, Inc. and TPC US Parent, LLC (8),(11)

 

11/24/2025

 

 

Food

 

 

6.25

%

 

3M L+525

 

 

 

1,789,156

 

 

 

1,789,156

 

 

 

1,735,482

 

TVC Enterprises, LLC

 

01/18/2024

 

 

Transportation

 

 

6.50

%

 

1M L+550

 

 

 

17,660,607

 

 

 

17,410,805

 

 

 

17,528,153

 

TVC Enterprises, LLC (Revolver) (7)

 

01/18/2024

 

 

Transportation

 

 

 

 

 

 

 

 

2,702,151

 

 

 

 

 

 

(20,267

)

TWS Acquisition Corporation (Revolver)

 

06/16/2025

 

 

Education

 

 

7.25

%

 

1M L+625

 

 

 

1,137,857

 

 

 

1,137,857

 

 

 

1,115,100

 

TWS Acquisition Corporation (Revolver) (7)

 

06/16/2025

 

 

Education

 

 

 

 

 

 

 

 

505,714

 

 

 

 

 

 

(10,114

)

Tyto Athene, LLC

 

08/27/2024

 

 

Aerospace and Defense

 

 

6.25

%

 

1M L+525

 

 

 

6,027,680

 

 

 

5,998,741

 

 

 

6,008,392

 

US Med Acquisition, Inc.

 

08/13/2021

 

 

Healthcare, Education and Childcare

 

 

9.00

%

 

1M L+800

 

 

 

8,301,563

 

 

 

8,301,563

 

 

 

8,218,547

 

Walker Edison Furniture Company LLC

 

09/26/2024

 

 

Home and Office Furnishings

 

 

7.25

%

 

3M L+625

 

 

 

21,515,625

 

 

 

21,203,376

 

 

 

21,515,625

 

Wildcat Buyerco, Inc.

 

02/27/2026

 

 

Electronics

 

 

6.50

%

 

3M L+550

 

 

 

9,145,221

 

 

 

8,970,259

 

 

 

9,053,770

 

Wildcat Buyerco, Inc. (7)

 

02/27/2022

 

 

Electronics

 

 

 

 

 

 

 

 

2,573,529

 

 

 

 

 

 

3,217

 

Wildcat Buyerco, Inc. (Revolver) (7)

 

02/27/2026

 

 

Electronics

 

 

 

 

 

 

 

 

551,471

 

 

 

 

 

 

(10,037

)

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

412,081,391

 

 

 

402,168,282

 

Second Lien Secured Debt—32.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Confie Seguros Holding Co.

 

10/31/2025

 

 

Insurance

 

 

8.66

%

 

3M L+850

 

 

 

14,500,000

 

 

 

14,281,633

 

 

 

13,920,000

 

DecoPac, Inc.

 

03/31/2025

 

 

Beverage, Food and Tobacco

 

 

9.25

%

 

3M L+825

 

 

 

19,627,143

 

 

 

19,382,758

 

 

 

19,627,143

 

Halo Buyer, Inc.

 

07/06/2026

 

 

Consumer Products

 

 

9.25

%

 

1M L+825

 

 

 

32,500,000

 

 

 

32,062,567

 

 

 

31,460,000

 

Infogroup, Inc.

 

04/03/2024

 

 

Other Media

 

 

10.25

%

 

3M L+925

 

 

 

20,400,000

 

 

 

20,157,649

 

 

 

20,145,000

 

MailSouth, Inc.

 

10/23/2024

 

 

Printing and Publishing

 

 

 

(6)

 

 

 

 

36,828,975

 

 

 

36,224,201

 

 

 

18,782,777

 

MBS Holdings, Inc.

 

01/02/2024

 

 

Telecommunications

 

 

9.59

%

 

1M L+850

 

 

 

19,623,649

 

 

 

19,359,314

 

 

 

19,329,294

 

VT Topco, Inc.

 

08/24/2026

 

 

Business Services

 

 

7.15

%

 

3M L+700

 

 

 

10,000,000

 

 

 

9,956,408

 

 

 

9,800,000

 

Winter Park Intermediate, Inc.

 

04/06/2026

 

 

Auto Sector

 

 

8.65

%

 

1M L+850

 

 

 

35,300,000

 

 

 

34,816,687

 

 

 

35,300,000

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

186,241,217

 

 

 

168,364,214

 

Subordinated Debt/Corporate Notes—9.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blackhawk Industrial Distribution, Inc.

 

03/17/2025

 

 

Distribution

 

 

12.00

%

 

 

 

 

 

14,051,843

 

 

 

13,842,572

 

 

 

13,665,417

 

 

 

 

 

 

 

 

 

 

(PIK 2.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cascade Environmental LLC

 

12/30/2023

 

 

Environmental Services

 

 

13.00

%

 

 

 

 

 

37,371,131

 

 

 

36,938,019

 

 

 

36,903,992

 

 

 

 

 

 

 

 

 

 

(PIK 13.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Subordinated Debt/Corporate Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,780,591

 

 

 

50,569,409

 

Preferred Equity/Partnership Interests—4.1% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AH Holdings, Inc.

 

 

 

 

Healthcare, Education and Childcare

 

 

6.00

%

 

 

 

 

 

211

 

 

 

500,000

 

 

 

167,083

 

Cascade Environmental LLC

 

 

 

 

Environmental Services

 

 

16.00

%

 

 

 

 

 

 

178,304

 

 

 

17,607,478

 

 

 

17,652,053

 

Condor Holdings Limited (8), (11)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

556,000

 

 

 

64,277

 

 

 

71,233

 

Condor Top Holdco Limited (8), (11)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

556,000

 

 

 

491,723

 

 

 

1,308,363

 

MeritDirect Holdings, LP (9)

 

 

 

 

Media

 

 

 

 

 

 

 

 

540

 

 

 

540,000

 

 

 

357,199

 

NXOF Holdings, Inc. (Tyto Athene, LLC)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

107

 

 

 

106,823

 

 

 

129,098

 

Signature CR Intermediate Holdco, Inc.

 

 

 

 

Chemicals, Plastics and Rubber

 

 

12.00

%

 

 

 

 

 

1,347

 

 

 

1,346,530

 

 

 

1,409,711

 

TPC Holding Company, LP (8),(11)

 

 

 

 

Food

 

 

 

 

 

 

 

 

219

 

 

 

219,010

 

 

 

237,288

 

Total Preferred Equity/Partnership Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,875,841

 

 

 

21,332,028

 

Common Equity/Partnership Interests/Warrants—17.7% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affinion Group Holdings, Inc. (Warrants)

 

04/10/2024

 

 

Consumer Products

 

 

 

 

 

 

 

 

77,190

 

 

 

2,126,399

 

 

 

 

AG Investco LP (9)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

805,164

 

 

 

805,164

 

 

 

1,002,599

 

AG Investco LP (7), (9)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

194,836

 

 

 

 

 

 

 

AH Holdings, Inc. (Warrants)

 

03/23/2021

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

753

 

 

 

 

 

 

 

Altamira Intermediate Company II, Inc.

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

125,000

 

 

 

125,000

 

 

 

81,148

 

ASP LCG Holdings, Inc. (Warrants)

 

05/05/2026

 

 

Education

 

 

 

 

 

 

 

 

933

 

 

 

586,975

 

 

 

2,236,540

 

Cascade Environmental LLC (9)

 

 

 

 

Environmental Services

 

 

 

 

 

 

 

 

33,901

 

 

 

2,852,080

 

 

 

696,346

 

CI (Allied) Investment Holdings, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

120,962

 

 

 

1,243,217

 

 

 

 

(PRA Events, Inc.) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (Summit) Investment Holdings LLC

 

 

 

 

Buildings and Real Estate

 

 

 

 

 

 

 

 

122,870

 

 

 

1,270,646

 

 

 

1,647,095

 

(SFP Holdings, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cowboy Parent LLC

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

22,500

 

 

 

2,250,000

 

 

 

1,165,785

 

(Blackhawk Industrial Distribution, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DecoPac Holdings Inc.

 

 

 

 

Beverage, Food and Tobacco

 

 

 

 

 

 

 

 

3,449

 

 

 

3,448,658

 

 

 

5,072,041

 

ECM Investors, LLC (9)

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

 

 

167,537

 

 

 

167,537

 

 

 

254,307

 

eCommission Holding Corporation (11)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

80

 

 

 

1,004,625

 

 

 

1,029,685

 

Faraday Holdings, LLC

 

 

 

 

Building Materials

 

 

 

 

 

 

 

 

4,277

 

 

 

217,635

 

 

 

1,408,259

 

Gauge Lash Coinvest LLC

 

 

 

 

Consumer Products

 

 

 

 

 

 

 

 

889,376

 

 

 

1,053,800

 

 

 

1,565,301

 

Gauge Schlesinger Coinvest, LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

9

 

 

 

8,896

 

 

 

8,662

 

Gauge TVC Coinvest, LLC

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

810,645

 

 

 

810,645

 

 

 

999,520

 

(TVC Enterprises, LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GCOM InvestCo LP (7)

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

111,574

 

 

 

 

 

 

 

Go Dawgs Capital III, LP

 

 

 

 

Building Materials

 

 

 

 

 

 

 

 

675,325

 

 

 

675,325

 

 

 

675,325

 

(American Insulated Glass, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Veracity Holdings, LP - Class A

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

15,000

 

 

 

1,500,000

 

 

 

2,886,104

 

(VT Topco, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infogroup Parent Holdings, Inc.

 

 

 

 

Other Media

 

 

 

 

 

 

 

 

181,495

 

 

 

2,040,000

 

 

 

2,522,594

 

ITC Rumba, LLC (Cano Health, LLC) (9)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

375,675

 

 

 

4,317,307

 

 

 

18,761,506

 

JWC-WE Holdings, L.P.

 

 

 

 

Home and Office Furnishings

 

 

 

 

 

 

 

 

1,906,433

 

 

 

1,906,433

 

 

 

12,010,531

 

(Walker Edison Furniture Company LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kadmon Holdings, Inc. (5)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

252,014

 

 

 

2,265,639

 

 

 

987,895

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

13


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)

SEPTEMBER 30, 2020

 

 

Issuer Name

 

Maturity / Expiration

 

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (4)

 

 

Par /

Shares

 

 

Cost

 

 

Fair Value (3)

 

Kentucky Racing Holdco, LLC (Warrants)

 

 

 

 

Hotels, Motels, Inns and Gaming

 

 

 

 

 

 

 

 

161,252

 

 

$

 

 

$

417,910

 

Lariat ecoserv Co-Invest Holdings, LLC (9)

 

 

 

 

Environmental Services

 

 

 

 

 

 

 

 

363,656

 

 

 

363,656

 

 

 

593,924

 

Lightspeed Investment Holdco LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

273,143

 

 

 

273,143

 

 

 

313,596

 

MeritDirect Holdings, LP (9)

 

 

 

 

Media

 

 

 

 

 

 

 

 

540

 

 

 

 

 

 

 

NXOF Holdings, Inc.

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

2,180

 

 

 

2,180

 

 

 

5,432

 

(Tyto Athene, LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OceanSound Discovery Equity, LP

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

98,286

 

 

 

982,857

 

 

 

987,611

 

(Holdco Sands Intermediate, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QuantiTech InvestCo LP (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

70,000

 

 

 

70,000

 

 

 

103,995

 

QuantiTech InvestCo LP (7), (9)

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

96,667

 

 

 

 

 

 

 

SBI Holdings Investments LLC

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

36,585

 

 

 

365,854

 

 

 

259,298

 

(Sales Benchmark Index LLC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature CR Intermediate Holdco, Inc.

 

 

 

 

Chemicals, Plastics and Rubber

 

 

 

 

 

 

 

 

71

 

 

 

70,870

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

1,500

 

 

 

1,500,000

 

 

 

1,749,600

 

Class A (US Dominion, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSC Dominion Holdings, LLC

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

1,500

 

 

 

 

 

 

4,756,165

 

Class B (US Dominion, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TPC Holding Company, LP (8). (11)

 

 

 

 

Food

 

 

 

 

 

 

 

 

11,527

 

 

 

11,527

 

 

 

56,482

 

U.S. Well Services, Inc. - Class A (5), (11)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,261,201

 

 

 

3,021,880

 

 

 

341,029

 

WBB Equity, LLC

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

628,571

 

 

 

628,571

 

 

 

2,753,143

 

(Whitney, Bradley & Brown, Inc.) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wheel Pros Holdings, L.P.

 

 

 

 

Auto Sector

 

 

 

 

 

 

 

 

3,778,704

 

 

 

4,450,000

 

 

 

23,022,380

 

(Winter Park Intermediate, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wildcat Parent, LP (Wildcat Buyerco, Inc.)

 

 

 

 

Electronics

 

 

 

 

 

 

 

 

2,314

 

 

 

231,400

 

 

 

254,847

 

ZS Juniper L.P.

 

 

 

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

1,056

 

 

 

1,056,250

 

 

 

2,614,078

 

(Juniper Landscaping of Florida, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Common Equity/Partnership Interests/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,704,169

 

 

 

93,240,733

 

Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

713,683,209

 

 

 

735,674,666

 

Investments in Non-Controlled, Affiliated Portfolio Companies—5.3% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity/Partnership Interests—5.1% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETX Energy, LLC (9)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

61,732

 

 

 

6,173,200

 

 

 

5,055,851

 

MidOcean JF Holdings Corp.

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

153,922

 

 

 

15,392,189

 

 

 

21,795,244

 

Total Preferred Equity/Partnership Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,565,389

 

 

 

26,851,095

 

Common Equity/Partnership Interests/Warrants—0.2% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETX Energy, LLC (9)

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,658,389

 

 

 

29,711,576

 

 

 

 

ETX Energy Management Company, LLC

 

 

 

 

Oil and Gas

 

 

 

 

 

 

 

 

1,754,104

 

 

 

1,562,020

 

 

 

 

MidOcean JF Holdings Corp.

 

 

 

 

Distribution

 

 

 

 

 

 

 

 

65,933

 

 

 

24,789,935

 

 

 

902,798

 

Total Common Equity/Partnership Interests/Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,063,531

 

 

 

902,798

 

Total Investments in Non-Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

77,628,920

 

 

 

27,753,893

 

Investments in Controlled, Affiliated Portfolio Companies—60.6% (1), (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Lien Secured Debt—7.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AKW Holdings Limited (8), (10), (11)

 

03/13/2024

 

 

Healthcare, Education and Childcare

 

 

6.50

%

 

3M L+600

 

 

£

28,500,000

 

 

 

39,682,375

 

 

 

36,844,800

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,682,375

 

 

 

36,844,800

 

Second Lien Secured Debt—10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Network Intermediate Holdings, LLC

 

11/30/2024

 

 

Healthcare, Education and Childcare

 

 

11.00

%

 

3M L+1,000

 

 

 

52,479,266

 

 

 

52,094,291

 

 

 

52,479,266

 

 

 

 

 

 

 

 

 

 

(PIK 11.00

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,094,291

 

 

 

52,479,266

 

Subordinated Debt—12.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PennantPark Senior Loan Fund, LLC (11)

 

07/31/2027

 

 

Financial Services

 

 

9.00

%

 

3M L+800

 

 

 

63,000,000

 

 

 

63,000,000

 

 

 

63,000,000

 

Total Subordinated Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

63,000,000

 

 

 

63,000,000

 

Preferred Equity—2.3% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

36,450

 

 

 

546,750

 

 

 

 

(PT Network, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Network Intermediate Holdings, LLC (9)

 

 

 

 

 

Healthcare, Education and Childcare

 

 

11.00

%

 

3M L+1,000

 

 

 

833

 

 

 

10,725,000

 

 

 

12,215,888

 

Total Preferred Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,271,750

 

 

 

12,215,888

 

Common Equity—29.3% (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AKW Holdings Limited (8), (10), (11)

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

£

950

 

 

 

132,497

 

 

 

927,315

 

CI (PTN) Investment Holdings II, LLC

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

333,333

 

 

 

5,000,000

 

 

 

 

(PT Network, LLC) (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PennantPark Senior Loan Fund, LLC (11)

 

 

 

 

Financial Services

 

 

 

 

 

 

 

 

33,221,176

 

 

 

33,221,176

 

 

 

36,262,577

 

PT Network Intermediate Holdings, LLC (9)

 

 

 

 

 

Healthcare, Education and Childcare

 

 

 

 

 

 

 

 

621

 

 

 

7,150,000

 

 

 

26,689,495

 

RAM Energy Holdings LLC

 

 

 

 

Energy and Utilities

 

 

 

 

 

 

 

 

180,805

 

 

 

162,708,073

 

 

 

89,923,518

 

Total Common Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

208,211,746

 

 

 

153,802,905

 

Total Investments in Controlled, Affiliated Portfolio Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

374,260,162

 

 

 

318,342,859

 

Total Investments—205.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,165,572,291

 

 

 

1,081,771,418

 

Cash and Cash Equivalents—4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,277,244

 

 

 

2,277,244

 

BNY Mellon Cash Reserve and Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,523,843

 

 

 

23,528,758

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,801,087

 

 

 

25,806,002

 

Total Investments and Cash Equivalents—210.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,191,373,378

 

 

$

1,107,577,420

 

Liabilities in Excess of Other Assets—(110.7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(581,868,568

)

Net Assets—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

525,708,852

 

 

(1)

The provisions of the 1940 Act classify investments based on the level of control that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when we own 25% or less of the portfolio company’s voting securities and “controlled” when we own more than 25% of the portfolio company’s voting securities.

(2)

The provisions of the 1940 Act classify investments further based on the level of ownership that we maintain in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when we own less than 5% of a portfolio company’s voting securities and “affiliated” when we own 5% or more of a portfolio company’s voting securities (See Note 6).

(3)

Valued based on our accounting policy (See Note 2).

(4)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable London Interbank Offered Rate, or LIBOR or “L,” the Euro Interbank Offered Rate, or EURIBOR or “E,” or Prime rate, or “P.” The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 90-day or 180-day LIBOR rate (1M L, 3M L, or 6M L, respectively), and EURIBOR loans are typically indexed to a 90-day EURIBOR rate (3M E), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

14


 

(5)

The security was not valued using significant unobservable inputs. The value of all other securities was determined using significant unobservable inputs (See Note 5).

(6)

Non-income producing securities.

(7)

Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(8)

Non-U.S. company or principal place of business outside the United States.

(9)

Investment is held through our Taxable Subsidiaries (See Note 1).

(10)

Par / Shares amount is denominated in British Pounds (£) as denoted.

(11)

The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2020, qualifying assets represent 87% of the Company’s total assets and non-qualifying assets represent 13% of the Company’s total assets.

 

 

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

15


 

 

PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2021

(Unaudited)

 

1. ORGANIZATION

 

PennantPark Investment Corporation was organized as a Maryland corporation in January 2007. We are a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. Our investment objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments. We invest primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, and subordinated debt and, to a lesser extent, equity investments. On April 24, 2007, we closed our initial public offering and our common stock trades on the Nasdaq Global Select Market under the symbol “PNNT.”

 

We have entered into an investment management agreement, or the Investment Management Agreement, with the Investment Adviser, an external adviser that manages our day-to-day operations. PennantPark Investment, through the Investment Adviser, manages the day-to-day operations of, and provides investment advisory services to, SBIC II under a separate investment management agreement. We have also entered into an administration agreement, or the Administration Agreement, with the Administrator, which provides the administrative services necessary for us to operate. PennantPark Investment, through the Administrator, also provides similar services to SBIC II under a separate administration agreement. See Note 3.

 

SBIC II, our wholly owned subsidiary, was organized as a Delaware limited partnership in 2012. SBIC II received a license from the SBA to operate as a SBIC under Section 301(c) of the 1958 Act. SBIC II’s objectives are to generate both current income and capital appreciation through debt and equity investments generally by investing with us in SBA-eligible businesses that meet the investment selection criteria used by PennantPark Investment.

 

Funding I, a wholly-owned subsidiary and a special purpose entity of the Company prior to July 31, 2020, was organized in Delaware as a limited liability company in February 2019. We formed Funding I in order to establish the BNP Credit Facility. The Investment Adviser serves as the servicer to Funding I and, prior to deconsolidation, had irrevocably directed that the management fee owed to it with respect to such services be paid to us so long as the Investment Adviser remains the servicer. This arrangement did not increase our consolidated management fee. The BNP Credit Facility allows Funding I to borrow up to $275 million at LIBOR (or an alternative risk-free floating interest rate index) plus 260 basis points during the reinvestment period. The BNP Credit Facility is secured by all of the assets held by Funding I. Funding I is no longer a subsidiary of PennantPark Investment as result of the joint venture described below.

 

On July 31, 2020, we and certain entities and managed accounts of the private credit investment manager of Pantheon Ventures (UK) LLP, or Pantheon, entered into a limited liability company agreement to co-manage PSLF, a newly-formed unconsolidated joint venture. In connection with this transaction, we contributed in-kind our formerly wholly-owned subsidiary, Funding I. As a result of this transaction, Funding I became a wholly-owned subsidiary of PSLF and has been deconsolidated from our financial statements. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company. See Note 4.

 

In April 2021, we issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is

paid semi-annually on May 1 and November 1 of each year, at a rate of 4.50% per year, commencing November 1, 2021. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

 

We have formed and expect to continue to form certain Taxable Subsidiaries, which are subject to tax as corporations. These Taxable Subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

 

We are operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act, and intend to affirm such exclusion on an annual basis, and, therefore, is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies, the global outbreak of the novel coronavirus (“COVID-19”) and any other parameters used in determining these estimates and assumptions could cause actual results to differ from such estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Codification, as amended, or ASC, serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued.

 

Our Consolidated Financial Statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, we have provided a Consolidated Statement of Changes in Net Assets in lieu of a Consolidated Statement of Changes in Stockholders’ Equity.

 

Our significant accounting policies consistently applied are as follows:

 

 

(a)

Investment Valuations

 

We expect that there may not be readily available market values for many of the investments which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.

 

 

16


 

 

Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:

 

 

(1)

Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment;

 

 

(2)

Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;

 

 

(3)

Our board of directors also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management’s preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;

 

 

(4)

The audit committee of our board of directors reviews the preliminary valuations of the Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and

 

 

(5)

Our board of directors discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

 

Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If our board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

 

 

(b)

Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses

 

Security transactions are recorded on a trade-date basis. We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects, as applicable, the change in the fair values of our portfolio investments and the Credit Facilities during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

 

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, or OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

 

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. As of June 30, 2021, we did not have any portfolio companies on non-accrual. As of September 30, 2020, we had two portfolio companies on non-accrual, representing 4.9% and 3.4% of our overall portfolio on a cost and fair value basis, respectively.

 

 

(c)

Income Taxes

 

We have complied with the requirements of Subchapter M of the Code and have qualified to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S. federal income tax purposes, we typically do not incur material U.S. federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of a U.S. federal excise tax. Additionally, certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state and local income taxes. For the three and nine months ended June 30, 2021, we recorded a provision for taxes of $0.2 million and $0.5 million (approximately 75% of which was for U.S. federal excise tax and the remainder for U.S. federal, state and local income taxes related to the Taxable Subsidiaries), respectively. For the three and nine months ended June 30, 2020, we recorded a provision for taxes of $0.3 million and $0.9 million (approximately one-half of which was for U.S. federal excise tax and the remainder for U.S. federal, state and local income taxes related to the Taxable Subsidiaries), respectively.

 

We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both U.S. federal and state income tax returns, the Company’s major tax jurisdiction is federal.

Because U.S. federal income tax regulations differ from GAAP, distributions characterized in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

 

 

(d)

Distributions and Capital Transactions

 

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by our board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains, but may also include certain tax-qualified dividends and/or a return of capital.

 

17


 

 

Capital transactions, in connection with our dividend reinvestment plan or through offerings of our common stock, are recorded when issued and offering costs are charged as a reduction of capital upon issuance of our common stock.

 

 

(e)

Foreign Currency Translation

 

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

 

 

1.

Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and

 

2.

Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

 

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

 

Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

 

 

(f)

Consolidation

As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, PennantPark Investment will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we have consolidated the results of SBIC II and our Taxable Subsidiaries in our Consolidated Financial Statements. We do not consolidate our investment in PSLF. See further description of our investment in PSLF in Note 4.

 

 

(g)

Asset Transfers and Servicing

 

Asset transfers that do not meet ASC Topic 860, Transfers and Servicing, requirements for sale accounting treatment are reflected in the Consolidated Statements of Assets and Liabilities and the Consolidated Schedules of Investments as investments. The creditors of Funding I have received a security interest in all its assets and such assets are not intended to be available to the creditors of PennantPark Investment or any of its affiliates.

 

3. AGREEMENTS AND RELATED PARTY TRANSACTIONS

 

The Investment Management Agreement with the Investment Adviser was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in February 2021. Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of, and provides investment advisory services to, us. The Investment Adviser serves as the servicer to Funding I and, prior to deconsolidation, had irrevocably directed that the management fee owed to it with respect to such services be paid to the Company so long as the Investment Adviser remains the servicer. SBIC II’s investment management agreement does not affect the management or incentive fees that we pay to the Investment Adviser on a consolidated basis. For providing these services, the Investment Adviser receives a fee from us, consisting of two components— a base management fee and an incentive fee or, collectively, Management Fees.

 

The base management fee is calculated at an annual rate of 1.50% of our “average adjusted gross assets,” which equals our gross assets (exclusive of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. In addition, on November 13, 2018, in connection with our board of directors’ approval of the application of the modified asset coverage requirements under the 1940 Act to the Company, our board of directors also approved an amendment to the Investment Management Agreement reducing the Investment Adviser’s annual base management fee from 1.50% to 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter-end. This amendment became effective on February 5, 2019 with the amendment and restatement of the Investment Management Agreement on April 12, 2019. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For the three and nine months ended June 30, 2021, the Investment Adviser earned a base management fee of $4.4 million and $12.8 million, respectively, from us. For the three and nine months ended June 30, 2020, the Investment Adviser earned a base management fee of $4.6 million and $14.3 million, respectively, from us.

 

The incentive fee has two parts, as follows:

One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7.00% annualized). We pay the Investment Adviser an incentive fee with respect to our Pre- Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75%, (2) 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.1212% in any calendar quarter (8.4848% annualized), and (3) 17.5% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1212% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable.

Beginning April 1, 2020 and through June 30, 2021, the Investment Adviser has voluntarily agreed, in consultation with our board of directors, to irrevocably waive the performance-based incentive fees. For the three and nine months ended June 30, 2021, the Investment Adviser did not earn an incentive fee on net investment income from us. For the three and nine months ended June 30, 2020, the Investment Adviser earned zero (after a waiver of $1.9 million) and $2.7 million (after a waiver of $1.9 million), respectively, in incentive fees on net investment income from us.

 

18


 

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 17.5% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For each of the three and nine months ended June 30, 2021 and 2020, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under the Investment Management Agreement (as described above).

Under GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 17.5% of such amount, less the aggregate amount of actual capital gains related to incentive fees paid in all prior years. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. For each of the three and nine months ended June 30, 2021 and 2020, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under GAAP.

 

The Administration Agreement with the Administrator was reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in February 2021. Under the Administration Agreement, the Administrator provides administrative services and office facilities to us. The Administrator provides similar services to SBIC II under its administration agreement with PennantPark Investment. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs. The Administrator also offers, on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the three and nine months ended June 30, 2021, we reimbursed the Investment Adviser approximately $0.1 million and $0.8 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for the services described above. For the three and nine months ended June 30, 2020, we reimbursed the Investment Adviser approximately $0.3 million and $1.2 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for the services described above.

 

There were no transactions subject to Rule 17a-7 under the 1940 Act during both the three and nine months ended June 30, 2021. For each of three and nine months ended June 30, 2020, the Company purchased $15.0 million in total investments from an affiliated fund managed by our Investment Adviser in accordance with, and pursuant to, procedures adopted under Rule 17a-7 of the 1940 Act.

 

For the three and nine months ended June 30, 2021, we sold $54.1 million and $91.9 million in investments to PSLF at fair value, respectively, and recognized $0.1 million and $0.6 million of net realized gains, respectively.

 

4. INVESTMENTS

 

Purchases of investments, including PIK interest, for the three and nine months ended June 30, 2021 totaled $137.4 million and $287.4 million, respectively. For the same periods in the prior year, purchases of investments, including PIK interest, totaled $15.3 million and $304.0 million, respectively. Sales and repayments of investments for the three and nine months ended June 30, 2021 totaled $191.0 million and $358.6 million, respectively. For the same periods in the prior year, sales and repayments of investments totaled $66.5 million and $114.1 million, respectively.

 

Investments and cash and cash equivalents consisted of the following:

 

 

 

June 30, 2021

 

 

September 30, 2020

 

Investment Classification

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

First lien

 

$

472,284,044

 

 

$

472,639,952

 

 

$

451,763,766

 

 

$

439,013,082

 

Second lien

 

 

159,510,457

 

 

 

159,310,091

 

 

 

238,335,508

 

 

 

220,843,480

 

Subordinated debt / corporate notes

 

 

54,865,851

 

 

 

55,517,647

 

 

 

50,780,591

 

 

 

50,569,409

 

Subordinated notes in PSLF

 

 

64,154,570

 

 

 

64,154,570

 

 

 

63,000,000

 

 

 

63,000,000

 

Equity

 

 

336,939,315

 

 

 

355,638,877

 

 

 

328,471,250

 

 

 

272,082,870

 

Equity in PSLF

 

 

33,892,823

 

 

 

40,937,377

 

 

 

33,221,176

 

 

 

36,262,577

 

Total investments

 

 

1,121,647,060

 

 

 

1,148,198,514

 

 

 

1,165,572,291

 

 

 

1,081,771,418

 

Cash and cash equivalents

 

 

14,207,092

 

 

 

14,212,253

 

 

 

25,801,087

 

 

 

25,806,002

 

Total investments and cash and cash equivalents

 

$

1,135,854,152

 

 

$

1,162,410,767

 

 

$

1,191,373,378

 

 

$

1,107,577,420

 

 

 

19


 

 

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries as of:

 

Industry Classification

 

June 30, 2021 (1)

 

 

 

September 30, 2020 (1)

 

 

Healthcare, Education and Childcare

 

 

24

 

%

 

 

17

 

%

Energy and Utilities

 

 

8

 

 

 

 

9

 

 

Consumer Products

 

 

7

 

 

 

 

6

 

 

Media

 

 

7

 

 

 

 

6

 

 

Business Services

 

 

6

 

 

 

 

4

 

 

Distribution

 

 

6

 

 

 

 

4

 

 

Environmental Services

 

 

6

 

 

 

 

6

 

 

Hotels, Motels, Inns and Gaming

 

 

4

 

 

 

 

4

 

 

Building Materials

 

 

3

 

 

 

 

4

 

 

Education

 

 

3

 

 

 

 

3

 

 

Home and Office Furnishings

 

 

3

 

 

 

 

3

 

 

Personal, Food and Miscellaneous Services

 

 

3

 

 

 

 

4

 

 

Printing and Publishing

 

 

3

 

 

 

 

2

 

 

Aerospace and Defense

 

 

2

 

 

 

 

2

 

 

Chemicals, Plastics and Rubber

 

 

2

 

 

 

 

2

 

 

Electronics

 

 

2

 

 

 

 

4

 

 

Insurance

 

 

2

 

 

 

 

4

 

 

Other Media

 

 

2

 

 

 

 

2

 

 

Telecommunications

 

 

2

 

 

 

 

2

 

 

Transportation

 

 

2

 

 

 

 

2

 

 

Cargo Transportation

 

 

1

 

 

 

 

 

 

Manufacturing / Basic Industries

 

 

1

 

 

 

 

1

 

 

Other

 

 

1

 

 

 

 

9

 

 

Total

 

 

100

 

%

 

 

100

 

%

 

(1)

Excludes investments in PSLF.

 

PennantPark Senior Loan Fund, LLC

 

On July 31, 2020, we and Pantheon formed PSLF, an unconsolidated joint venture. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company. PSLF invests in portfolio companies in the same industries in which we may directly invest. We provide capital to PSLF in the form of subordinated notes and equity interests. As of June 30, 2021 and September 30, 2020, we and Pantheon owned 60.5% and 39.5%, respectively, and 72.0% and 28.0%, respectively, of each of the outstanding subordinated notes and equity interests in PSLF. As of the same dates, our investment in PSLF consisted of subordinated notes of $64.2 million and $63.0 million, respectively, and equity interests of $40.9 million and $36.3 million, respectively.

 

As of June 30, 2021 and September 30, 2020, PSLF had total assets of $397.2 million and $361.8 million, respectively. As of June 30, 2021, PSLF had $58.0 million of unused borrowing capacity under the PSLF Credit Facility (as defined below), subject to leverage and borrowing base restrictions, and cash and cash equivalents of $10.0 million. As of September 30, 2020, PSLF had $36.5 million of unused borrowing capacity under the PSLF Credit Facility, subject to leverage and borrowing base restrictions, and cash and cash equivalents of $7.5 million.

 

We and Pantheon each appointed two members to PSLF’s four-person Member Designees’ Committee, or the Member Designees’ Committee. All material decisions with respect to PSLF, including those involving its investment portfolio, require unanimous approval of a quorum of the Member Designees’ Committee. Quorum is defined as (i) the presence of two members of the Member Designees’ Committee; provided that at least one individual is present that was elected, designated or appointed by each of us and Pantheon; (ii) the presence of three members of the Member Designees’ Committee, provided that the individual that was elected, designated or appointed by each of us or Pantheon, as the case may be, with only one individual present shall be entitled to cast two votes on each matter; or (iii) the presence of four members of the Member Designees’ Committee, provided that two individuals are present that were elected, designated or appointed by each of us and Pantheon.

 

Additionally, PSLF has entered into a $275.0 million (increased from $250.0 million on November 6, 2020) senior secured revolving credit facility which bears interest at LIBOR (or an alternative risk-free interest rate index) plus 260 basis points, or the PSLF Credit Facility, with BNP Paribas through its wholly-owned subsidiary, or PSLF Subsidiary, subject to leverage and borrowing base restrictions.  

Below is a summary of PSLF’s portfolio at fair value:

 

 

 

June 30, 2021

 

 

September 30, 2020

 

Total investments

 

$

386,162,497

 

 

$

353,366,358

 

Weighted average yield on debt investments

 

 

7.2

%

 

 

7.3

%

Number of portfolio companies in PSLF

 

 

43

 

 

 

37

 

Largest portfolio company investment

 

$

16,861,382

 

 

$

18,411,916

 

Total of five largest portfolio company investments

 

$

74,552,236

 

 

$

77,896,431

 


 

20


 

 

Below is a listing of PSLF’s individual investments as of June 30, 2021:

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (1)

 

 

Par

 

 

Cost

 

 

Fair Value (2)

 

First Lien Secured Debt - 570.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Altamira Technologies, LLC

 

07/24/25

 

Aerospace and Defense

 

8.00%

 

 

3M L+700

 

 

 

933,731

 

 

$

923,507

 

 

$

882,376

 

American Insulated Glass, LLC

 

12/21/23

 

Building Materials

 

6.50%

 

 

3M L+550

 

 

 

14,662,710

 

 

 

14,502,747

 

 

 

14,516,083

 

Apex Service Partners, LLC

 

07/31/25

 

Personal, Food and Miscellaneous Services

 

6.25%

 

 

1M L+525

 

 

 

6,569,222

 

 

 

6,515,362

 

 

 

6,569,222

 

Apex Service Partners, LLC Term Loan B

 

07/31/25

 

Personal, Food and Miscellaneous Services

 

6.50%

 

 

1M L+550

 

 

 

3,247,015

 

 

 

3,211,313

 

 

 

3,247,015

 

Apex Service Partners, LLC - Unfunded Term Loan B (3)

 

07/31/21

 

Personal, Food and Miscellaneous Services

 

 

 

 

 

 

 

 

146,162

 

 

-

 

 

-

 

Applied Technical Services, LLC

 

12/29/26

 

Environmental Services

 

6.75%

 

 

3M L+575

 

 

 

7,462,500

 

 

 

7,351,135

 

 

 

7,350,563

 

Bottom Line Systems, LLC

 

02/13/23

 

Healthcare, Education and Childcare

 

6.25%

 

 

1M L+550

 

 

 

13,729,432

 

 

 

13,663,550

 

 

 

13,729,432

 

Datalot Inc.

 

01/24/25

 

Insurance

 

6.25%

 

 

1M L+525

 

 

 

7,063,250

 

 

 

6,958,322

 

 

 

7,063,250

 

DRS Holdings III, Inc.

 

11/03/25

 

Consumer Products

 

7.25%

 

 

1M L+625

 

 

 

13,462,221

 

 

 

13,362,441

 

 

 

13,394,910

 

ECL Entertainment, LLC

 

03/31/28

 

Hotels, Motels, Inns and Gaming

 

8.25%

 

 

3M L+750

 

 

 

4,615,385

 

 

 

4,570,026

 

 

 

4,707,692

 

ECM Industries, LLC

 

12/23/25

 

Electronics

 

5.50%

 

 

3M L+450

 

 

 

2,826,993

 

 

 

2,803,877

 

 

 

2,812,858

 

Global Holdings InterCo LLC

 

03/16/26

 

Banking, Finance, Insurance & Real Estate

 

7.00%

 

 

3M L+600

 

 

 

7,500,000

 

 

 

7,391,271

 

 

 

7,462,500

 

Hancock Roofing and Construction L.L.C.

 

12/31/26

 

Insurance

 

6.00%

 

 

3M L+500

 

 

 

5,970,000

 

 

 

5,829,304

 

 

 

5,910,301

 

Holdco Sands Intermediate, LLC

 

12/19/25

 

Aerospace and Defense

 

7.50%

 

 

3M L+600

 

 

 

12,101,429

 

 

 

11,957,665

 

 

 

12,040,921

 

HW Holdco, LLC

 

12/10/24

 

Media

 

5.50%

 

 

3M L+450

 

 

 

14,625,000

 

 

 

14,531,049

 

 

 

14,405,625

 

IMIA Holdings, Inc.

 

04/09/27

 

Aerospace and Defense

 

7.00%

 

 

3M L+600

 

 

 

9,082,192

 

 

 

8,903,082

 

 

 

8,900,548

 

Integrity Marketing Acquisition, LLC

 

08/27/25

 

Insurance

 

6.50%

 

 

3M L+550

 

 

 

7,888,018

 

 

 

7,819,958

 

 

 

7,769,698

 

Juniper Landscaping of Florida, LLC

 

12/22/21

 

Personal, Food and Miscellaneous Services

 

6.50%

 

 

3M L+550

 

 

 

9,710,145

 

 

 

9,710,145

 

 

 

9,710,145

 

K2 Pure Solutions NoCal, L.P.

 

12/20/23

 

Chemicals, Plastics and Rubber

 

8.00%

 

 

1M L+700

 

 

 

14,625,000

 

 

 

14,504,865

 

 

 

14,238,900

 

LAV Gear Holdings, Inc.

 

10/31/24

 

Leisure, Amusement, Motion Pictures, Entertainment

 

8.50%

 

 

3M L+750

 

 

 

2,092,816

 

 

 

2,079,240

 

 

 

1,949,249

 

Lightspeed Buyer Inc.

 

02/03/26

 

Healthcare, Education and Childcare

 

6.50%

 

 

1M L+550

 

 

 

12,503,247

 

 

 

12,295,885

 

 

 

12,315,698

 

Lombart Brothers, Inc.

 

04/13/23

 

Healthcare, Education and Childcare

 

9.25%

 

 

1M L+825

 

 

 

16,861,382

 

 

 

16,759,474

 

 

 

16,861,382

 

MAG DS Corp.

 

04/01/27

 

Aerospace and Defense

 

6.50%

 

 

1M L+550

 

 

 

5,955,000

 

 

 

5,685,488

 

 

 

5,798,681

 

MBS Holdings, Inc.

 

04/16/27

 

Telecommunications

 

6.75%

 

 

1M L+575

 

 

 

7,500,000

 

 

 

7,351,195

 

 

 

7,350,000

 

MeritDirect, LLC

 

05/23/24

 

Media

 

6.50%

 

 

3M L+550

 

 

 

13,562,089

 

 

 

13,436,291

 

 

 

13,324,752

 

PlayPower, Inc.

 

05/08/26

 

Consumer Products

 

5.65%

 

 

3M L+550

 

 

 

3,815,940

 

 

 

3,786,827

 

 

 

3,782,551

 

Radius Aerospace, Inc.

 

03/31/25

 

Aerospace and Defense

 

6.75%

 

 

3M L+575

 

 

 

13,348,388

 

 

 

13,207,806

 

 

 

13,081,420

 

Recteq, LLC

 

01/29/26

 

Consumer Products

 

7.00%

 

 

3M L+600

 

 

 

9,975,000

 

 

 

9,791,811

 

 

 

9,875,250

 

Research Now Group, LLC and Dynata, LLC

 

12/20/24

 

Business Services

 

6.50%

 

 

3M L+550

 

 

 

14,732,824

 

 

 

14,633,280

 

 

 

14,530,248

 

Riverpoint Medical, LLC

 

06/20/25

 

Healthcare, Education and Childcare

 

5.50%

 

 

3M L+450

 

 

 

1,960,000

 

 

 

1,945,941

 

 

 

1,960,000

 

Sales Benchmark Index LLC

 

01/03/25

 

Business Services

 

7.75%

 

 

3M L+600

 

 

 

7,827,744

 

 

 

7,711,354

 

 

 

7,495,064

 

Sargent & Greenleaf Inc.

 

12/20/24

 

Electronics

 

7.00%

 

 

1M L+550

 

 

 

5,273,141

 

 

 

5,217,671

 

 

 

5,246,776

 

Signature Systems Holding Company

 

05/03/24

 

Chemicals, Plastics and Rubber

 

8.50%

 

 

3M L+750

 

 

 

13,687,500

 

 

 

13,574,447

 

 

 

13,413,750

 

Solutionreach, Inc.

 

01/17/24

 

Communications

 

6.75%

 

 

3M L+575

 

 

 

11,915,073

 

 

 

11,778,913

 

 

 

11,915,073

 

STV Group Incorporated

 

12/11/26

 

Transportation

 

5.35%

 

 

1M L+525

 

 

 

12,130,479

 

 

 

12,030,595

 

 

 

12,009,174

 

TAC LifePort Purchaser, LLC

 

03/01/26

 

Aerospace and Defense

 

7.00%

 

 

1M L+600

 

 

 

4,992,220

 

 

 

4,912,691

 

 

 

4,992,220

 

TeleGuam Holdings, LLC

 

11/20/25

 

Telecommunications

 

5.50%

 

 

1M L+450

 

 

 

4,683,888

 

 

 

4,646,139

 

 

 

4,631,195

 

Teneo Holdings LLC

 

07/18/25

 

Financial Services

 

6.25%

 

 

1M L+525

 

 

 

7,423,333

 

 

 

7,177,363

 

 

 

7,336,703

 

TPC Canada Parent, Inc. and TPC US Parent, LLC

 

11/24/25

 

Food

 

6.25%

 

 

3M L+525

 

 

 

5,607,380

 

 

 

5,551,306

 

 

 

5,439,158

 

TVC Enterprises, LLC

 

03/26/26

 

Transportation

 

6.75%

 

 

1M L+575

 

 

 

12,805,287

 

 

 

12,661,724

 

 

 

12,677,234

 

TWS Acquisition Corporation

 

06/16/25

 

Education

 

7.25%

 

 

1M L+625

 

 

 

9,647,753

 

 

 

9,505,788

 

 

 

9,647,753

 

Tyto Athene, LLC

 

04/03/28

 

Aerospace and Defense

 

6.25%

 

 

3M L+550

 

 

 

9,975,000

 

 

 

9,876,222

 

 

 

9,940,088

 

UBEO, LLC

 

04/03/24

 

Printing and Publishing

 

5.50%

 

 

3M L+450

 

 

 

4,722,267

 

 

 

4,690,083

 

 

 

4,651,433

 

Vision Purchaser Corporation

 

06/10/25

 

Media

 

7.75%

 

 

1M L+675

 

 

 

14,285,128

 

 

 

14,078,457

 

 

 

13,856,573

 

Wildcat Buyerco, Inc.

 

02/27/26

 

Electronics

 

6.00%

 

 

1M L+500

 

 

 

7,443,467

 

 

 

7,377,869

 

 

 

7,369,033

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

386,273,479

 

 

 

386,162,497

 

Cash and Cash Equivalents—18.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,230,013

 

 

 

9,230,013

 

US Bank Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

749,622

 

 

 

749,622

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,979,635

 

 

 

9,979,635

 

Total Investments and Cash Equivalents—592.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

396,253,114

 

 

$

396,142,132

 

 

(1)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable LIBOR or “L” or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day LIBOR rate (1M L, 2M L, 3M L, or 6M L, respectively), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.

(2)

Valued based on PSLF’s accounting policy.

(3)

Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.


 

21


 

 

Below is a listing of PSLF’s individual investments as of September 30, 2020:

 

Issuer Name

 

Maturity

 

Industry

 

Current

Coupon

 

 

Basis Point

Spread Above

Index (1)

 

Par

 

 

Cost

 

 

Fair Value (2)

 

First Lien Secured Debt—701.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Sales & Marketing

 

07/23/2021

 

Grocery

 

 

4.25

%

 

1M L+325

 

 

8,627,315

 

 

$

8,418,699

 

 

$

8,456,926

 

Altamira Technologies, LLC

 

07/24/2025

 

Aerospace and Defense

 

 

7.00

%

 

3M L+600

 

 

971,231

 

 

 

958,950

 

 

 

937,238

 

American Insulated Glass, LLC

 

12/21/2023

 

Building Materials

 

 

6.50

%

 

3M L+550

 

 

14,775,105

 

 

 

14,571,097

 

 

 

14,479,603

 

Apex Service Partners, LLC

 

07/31/2025

 

Personal, Food and Miscellaneous Services

 

 

6.25

%

 

1M L+525

 

 

6,607,449

 

 

 

6,546,594

 

 

 

6,409,225

 

Bazaarvoice, Inc.

 

02/01/2024

 

Printing and Publishing

 

 

6.75

%

 

1M L+575

 

 

14,628,085

 

 

 

14,509,210

 

 

 

14,408,664

 

Bottom Line Systems, LLC

 

02/13/2023

 

Healthcare, Education and Childcare

 

 

6.25

%

 

1M L+550

 

 

15,000,000

 

 

 

14,895,515

 

 

 

14,683,499

 

Cano Health, LLC

 

06/02/2025

 

Healthcare, Education and Childcare

 

 

8.50

%

 

1M L+750

 

 

18,274,854

 

 

 

18,174,687

 

 

 

18,411,916

 

Datalot Inc.

 

01/24/2025

 

Insurance

 

 

6.25

%

 

3M L+525

 

 

7,116,895

 

 

 

6,991,975

 

 

 

7,125,435

 

DRS Holdings III, Inc.

 

11/03/2025

 

Consumer Products

 

 

6.75

%

 

1M L+575

 

 

13,564,726

 

 

 

13,448,313

 

 

 

13,316,490

 

ECM Industries, LLC

 

12/23/2025

 

Electronics

 

 

5.50

%

 

1M L+450

 

 

2,873,184

 

 

 

2,846,226

 

 

 

2,858,818

 

Holdco Sands Intermediate, LLC

 

12/19/2025

 

Aerospace and Defense

 

 

7.50

%

 

3M L+600

 

 

12,193,571

 

 

 

12,028,384

 

 

 

11,888,732