PennantPark Investment Corp. (PNNT) filed Annual Report for the period ended 2009-09-30.
Pennantpark Investment Corp. has a market cap of $205.8 million; its shares were traded at around $8.11 with and P/S ratio of 5.2. The dividend yield of Pennantpark Investment Corp. stocks is 11.9%.
Highlight of Business Operations:
PennantPark Investment seeks to create a diversified portfolio that includes mezzanine debt, senior secured loans and equity investments by investing approximately $10 to $50 million of capital, on average, in the securities of middle-market companies. In this Report, we use the term “middle-market” to refer to companies with annual revenues between $50 million and $1 billion. We expect this investment size to vary proportionately with the size of our capital base. The companies in which we invest are typically highly leveraged, and, in most cases, are not rated by national rating agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies. In addition, we expect our debt investments to generally range in maturity from three to ten years.
For the fiscal year ended September 30, 2009, we purchased $112.7 million of investments issued by eleven new and eight existing portfolio companies with an overall weighted average yield of 14.5% on debt investments. This compares to purchasing $206.8 million of investments, issued by fourteen new and two existing portfolio companies with an overall average yield of 13.8% on debt investments during the fiscal year ended September 30, 2008 and purchases of $414.0 million of investments, issued by eight new and five existing portfolio companies with an overall average yield of 13.0% on debt investments during the period April 24, 2007 (the date of our initial public offering) to September 30, 2007.
For the fiscal year ended September 30, 2009, sales and repayments generated proceeds of $28.0 million. This compares to sales and repayments that generated proceeds for the fiscal year ended September 30, 2008 of $70.1 million, and for the period from January 11, 2007 (inception) through September 30, 2007 sales and repayments generated proceeds of $99.6 million.
As of September 30, 2009, our portfolio totaled $469.8 million and consisted of $157.1 million of subordinated debt, $134.4 million of second lien secured debt, $150.6 million of senior secured loans and $27.7 million of preferred and common equity investments. Our core assets totaled $427.1 million and consisted of investments in thirty different companies with an average investment size of $14.2 million per company and a weighted average yield of 12.5% on debt investments. Our non-core senior secured loan portfolio totaled $42.7 million and consisted of thirteen different companies (including one company also in our core portfolio) with an average investment size of $3.3 million, and a weighted average yield of 3.1%. Our portfolio consisted of 53% fixed-rate and 47% variable-rate investments. Overall, the portfolio had an unrealized depreciation of $27.5 million. Our overall portfolio consisted of forty-two companies with an average investment size of $11.2 million, a weighted average yield on debt investments of 11.4%, and was invested 33% in subordinated debt, 29% in second lien secured debt, 32% in senior secured loans and 6% in preferred and common equity investments.
As of September 30, 2008, our portfolio totaled $372.1 million and consisted of $166.2 million of subordinated debt, $104.2 million of second lien secured debt, $78.8 million of senior secured loans and $22.9 million of preferred and common equity investments. Our core assets totaled $305.5 million and consisted of investments in nineteen different companies with an average investment size of $16.1 million per company and a weighted average yield of 12.5% on debt investments. Our non-core senior secured loan portfolio totaled $66.6 million and consisted of nineteen different companies (including one company also in our core portfolio) with an average investment size of $3.5 million, and a weighted average yield of 5.2%. Our portfolio consisted of 45% fixed-rate and 55% variable-rate investments. Overall, the portfolio had an unrealized depreciation of $72.0 million. Our overall portfolio consisted of thirty-seven companies with an average investment size of $10.1 million, a weighted average yield on debt investments of 11.1%, and was invested 45% in subordinated debt, 28% in second lien secured debt, 21% in senior secured loans and 6% in preferred and common equity investments.
We maintain a five-year, multi-currency $300.0 million senior secured credit facility, which matures in 2012, with a group of lenders, under which we had $225.1 million (including a $7.0 million temporary draw) and $202.0 million (including a $40.0 million temporary draw) of indebtedness outstanding at September 30, 2009 and 2008, respectively. Pricing of borrowings under our credit facility is set at 100 basis points over LIBOR. We believe that our capital resources will provide us with the flexibility to take advantage of market opportunities when they arise.
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