PennantPark Investment Corporation (NASDAQ:PNNT) Q2 2020 Earnings Conference Call - Final Transcript
May 12, 2020 • 12:00 pm ET
Welcome to the PennantPark Investment Corporation's Second Fiscal Quarter 2020 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the call over to Mr. Art Penn, Chairman and Chief Executive Officer of PennantPark Investment Corporation. Mr. Penn, you may begin.
Good morning, everyone. I'd like to welcome you to PennantPark Investment Corporation's second fiscal quarter 2020 earnings conference call. I'm joined today by Aviv Efrat, our Chief Financial Officer. Aviv, please start off by disclosing some general conference call information and include a discussion about forward-looking statements.
Thank you, Art. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of PennantPark Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone numbers and PIN provided in our earnings press release, as well as on our website.
I'd also like to call your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking information. This call may also include forward-looking statements and projections and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these projections.
We do not undertake to update our forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at pennantpark.com or call us at 212-905-1000. At this time, I'd like to turn the call back to our Chairman and Chief Executive Officer, Art Penn.
Thanks, Aviv. First, we hope that you, your families and those you work with are staying healthy and navigating through these challenging conditions. We are pleased to report that PennantPark continues to operate smoothly and effectively and remains committed to working diligently on behalf of our investors.
I'm going to spend a few minutes discussing our portfolio going into the COVID-19 crisis, how we fared in the quarter ended March 31, how the portfolio is positioned in the upcoming quarters, our capital structure and liquidity, the value proposition of our stock, the financials and then open it up for Q&A.
We believe that our rigorous underwriting process and disciplined approach has successfully positioned us to manage through the challenges ahead. We have an excellent team of talented and dedicated professionals, many with decades of experience, managing through multiple economic cycles, to help ensure the best possible outcome in this type of difficult environment.
Although we never predicted a global pandemic, as you may know, we have been preparing for an eventual recession for some time. Prior to the COVID-19 crisis, we proactively positioned the portfolio as defensively as possible. Over the past several years, we've generally been moving into first-lien secured positions, higher in the capital structure and into a more diversified portfolio. As of March 31, first-lien exposure was 60% of the portfolio, up from 55% a year ago. The first-lien portion of the portfolio