PENNANTPARK INVESTMENT CORP 8-K

What Happened
PennantPark Investment Corporation (PNNT) announced preliminary, unaudited results for the quarter ended December 31, 2025. In December 2025 the company sold its equity investment in JF Intermediate, LLC for $67.5 million, producing a realized gain of $63.1 million. PennantPark also amended and extended its multi‑currency senior revolving credit facility, increasing lender commitments to $535 million, lowering the borrowing spread to SOFR + 2.10% (from SOFR + 2.35%), extending the revolving period to 2029 and maturity to 2030.

Key Details

• Estimated net asset value (NAV) per common share: $6.97–$7.02 at 12/31/2025 vs. $7.11 at 9/30/2025. Decline mainly due to distributions in excess of net investment income and a one‑time $0.03 per share expense tied to the credit facility amendment.
• Sale of JF Intermediate: proceeds $67.5M; realized gain $63.1M (JF was ~23% of equity investments at fair value on 9/30/2025).
• Earnings measures (per share): Core NII estimated $0.13–$0.15 (excludes ~$0.03 one‑time expense); Net Investment Income estimated $0.10–$0.12 (includes the ~$0.03 one‑time expense).
• Portfolio and balance sheet: investment portfolio fair value ~$1.2B (down from ~$1.3B); four non‑accrual loans = 2.2% of portfolio at cost (1.1% at fair value); total debt ≈ $611M (includes $296M outstanding on Credit Facility, $150M 4.50% notes due May 2026, $165M 4.00% notes due Nov 2026); debt-to-equity ≈ 1.34x (vs 1.60x on 9/30/2025). Cash ≈ $46M and unused Credit Facility capacity ≈ $239M.
• These are preliminary, management-prepared estimates; RSM US LLP has not audited or reviewed them and final results may differ.

Why It Matters
The JF Intermediate sale produced a large realized gain, which is a one‑time financial benefit, but PennantPark’s NAV per share still fell modestly due to distributions exceeding income and a non‑recurring $0.03 per share expense tied to the credit facility amendment. The credit facility amendment improves liquidity and lowers borrowing cost, which may reduce future interest expense and support leverage management. Investors should note these results are preliminary and unaudited; final quarterly figures (and any subsequent adjustments to portfolio fair values) will appear in the company’s Form 10‑Q.