PennantPark Investment Corporation (NASDAQ:PNNT) Q3 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 12:00 pm ET

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PennantPark Investment Corporation (NASDAQ:PNNT) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the PennantPark Investment Corporation's Third Fiscal Quarter 2020 Earnings Conference Call. 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 your conference.

Executive
Art Penn

Good morning, everyone. I'd like to welcome you to PennantPark Investment Corporation's 3rd 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 included discussion about forward-looking statements.

Executive
Aviv Efrat

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. Today's conference call may also include forward-looking statements and projections, and we have 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 earnings our forward-looking statements unless required by law, to take copies of our latest SEC filings. Please visit our website www.pennantpark.com or call us at 212905 1000, at this time I'd like to turn the call back to our term and Chief Executive Officer Art Penn.

Executive
Art Penn

Thanks. Aviv, first, we hope that you, your families and those who work with are staying healthy. We are pleased to report that PennantPark continues to operate smoothly and effectively and remains committed to working diligently on behalf of our investors. We're going to spend a few minutes discussing how we fared in the quarter ended June 30. How the portfolio is positioned for upcoming quarters.

Our capital structure and liquidity, the value proposition in our stock, the financials and then open it up for Q&A. Despite the challenging economic conditions brought on by the pandemic, we are pleased that we have a couple of key goals this past quarter, we achieved a 7% increase in adjusted NAV as the market stabilized during the quarter we also achieved our goals of reducing leverage and increasing liquidity we are particularly pleased with our announcement of the foundation of PennantPark Senior Loan Fund PSLF, our joint venture with Pantheon, a leading global private markets investor.

The initial $35 million equity investment made by Pantheon is in an existing portfolio of loans at an attractive price of $0.95 on the dollar. They plan to invest an additional $30 million of equity over time into the JV at fair market value. Additionally, our leverage will decrease by about $245 million which bolsters our balance sheet. The equity from Pantheon into our platform. Not only validates the value proposition of our