Aviv. Thanks,
navigating work are you, hope staying that you healthy we and these conditions. your through with families those and challenging First,
to investors. and report operate to behalf of that our to pleased smoothly We on effectively, committed and remains diligently continues working are PennantPark
the open up going COVID-XX of liquidity, minutes capital is and value fared then going portfolio the structure our our discussing how for few how and positioned it ended quarter our a we I'm March the in stock, quarters, into XX, financials spend upcoming the portfolio in the the crisis, Q&A. to proposition
the We positioned rigorous ahead. challenges disciplined process has manage underwriting our that and approach successfully believe through us to
team excellent economic many an to best of outcome environment. difficult professionals, have talented multiple of the help through possible experience, type ensure of in dedicated cycles, and this decades We with managing
pandemic, we've for we recession to may the never as as possible. some been crisis, you as positioned preparing global time. an for the know, defensively a predicted COVID-XX eventual we proactively Although portfolio Prior
Over been generally into the moving and first-lien years, in past we've portfolio. positions, diversified the capital more secured into higher structure several a
ago. first-lien XX% the As year exposure of XX% March was of XX, up from portfolio
risk an indicating portion yield the to has The and is direct constructed market portfolio X.X% first lien a of the average lending portfolio The withstand volatility. of lower portfolio space. economic in overall
income was As times. by XX, portfolio X.X cash cash of the The the times. average exceeds the X.X debt-to-EBITDA which was ratio, amount coverage interest March expense interest average on
focus been terms, on covenants traditional Our much market companies. from has of where structures to companies, attractive middle and lenders larger benefited we those than have more
which be our sooner enable are the us low-to-no typical potential to in protect positioned and These loans and larger to portfolio much companies terms covenant capital challenges than borrowers. of assist see
We have and apparel restaurants, the most have pandemic avoided been as retail, the of that the some by airlines. sectors largely such hurt
highly to portfolio exposure XX discuss the oil different gas, diversified which XX later, and industries. have in does PNNT we'll is companies Although with
no we had March of non-accruals. XX, As
conditions X.X% in COVID-XX. the On softening average, primarily to were assets our due market quarter, marked reflecting approximately down
were investments X%. marked Excluding assets the energy approximately down
whereby both approximately of capital team a invested resources past Our the and opportunities to position X% in over selective only in we the we were active growing us put and have shown be year.
unrealized realized compares average XX yield both we points March XX including basis and of to billion XX, If only points of XX%. ratio annualized realized is invested basis the has annualized $X.X about loss annually. loss annually. PNNT through the Since an an This losses unrealized include inception, losses, at ratio
as debt as strong our investments energy primarily our both subordinated includes investments track the made record This well financial prior crisis. to
that focused financing sponsors. financial will was today, on in just PNNT as middle-market You recall XXXX
through solid. was global the financial crisis and performance Our recession
crisis X% the performed XXXX onset the average to we million. $XXX the ultimately recession. of bottom of investments EBITDA Prior of the of companies portfolio which global an The in fell financial September, aggregated investments the initiated well, underlying about at
during According that American the average EBITDA about down high-yield high-yield to index, North timeframe. Bloomberg the company was XX%
crisis few As financial defaults on investments IRR those a prior though of recession. to were and X% done attractive have that underlying portfolio. they recoveries result, was and we the The even
this non- we going XX preserve Further, are had We when even record. we've downside of are those capital been that track to We've accrual shareholders. XXX out investments of years ago. had pleased companies case able proud inception we've our only non-accruals, XX for since
with owners sponsor quarters management private Now, coming the a teams the and been let's is the turn we've equity to how portfolio of companies. ahead. and communicating on In outlook our basis positioned, constant our portfolio
mentioned of such hit protected and economy previously, the airlines. as that investment has areas the some worst gratified restaurant, As retail, our historical of from we’re focus apparel us hospitality,
the portfolio We've have on companies with way focused moved are to shoring up been and liquidity. costs our rapidly pleased adjust
and pace the XX Looking and its and portfolio. quarter to the reopening forward there the economy about of ended remains beyond, timing uncertainty the on impact June meaningful
today, performance. the release sufficient suggests they coming as temporary the companies stand said certain ask the vast due come shutdown portfolio operating the of pay that impact expect companies our that, interest the on that to of their things amendments liquidity where payments quarters. Having given majority substantive allowing portfolio in Nevertheless, covenant will our their we in analysis for have
most but covenants that real monitor taking down. from may the and which our in ensure of some companies portfolio loans current are to portfolio benefit covenants, protect appropriate comforted stepped the the in These they are to our us We amendments require allow to actions closely investment. environment,
in the them industry. five industry represented Gaming facilities, drops investments. have There revenue of undertaking X.X% significant two does XX, across as only interest of which in our customer March a on his of into due get companies need COVID primary in the gaming projects, regional plane. with companies provide companies seen as reserves to fixed are gaming energy and our some mid-XXXX portfolio such that the Two not base the are properties, to portfolio construction
the quarter. Those re-open? in properties will were will experiencing shutdown. have the sheet Owners performance allow have record while cut facilities prior the cushion cash know and those to when do of the or fourth that costs to not properties aggressively third on reopen balance I'll we
entire to energy industry represent industry. global subsidiary in demand. oil unprecedented company. last all hitting reduction the X.X% overall to the Those result investments residual owned energy portfolio regard massive COVID-XX time We loan of as of challenges, investment grade in facing small oil month. investments and of have a wholly one prices a a is With with the low The large
nonessential and performance to Ram's drilling debt has gas in of Many And decided personnel. shut oil good, have in to obligations recapitalized while suspended is Both wake expenditures, Last all expenses and oil reduced remains and possible. and operating it in all environment. converted the our companies of all this oil all and capital we equity. Ram remaining curtailing production activities shutting production ETX Ram quarter, and
and and continue reopens, materially shortages of cash reduced. summer, will expected reduction be the storage the demand flow the to during With revenues until economy
place, impact hedges low on coming mitigate hedges in financial Ram will prices. largely they oil cash of over quarter will those Ram While only the for the partially rely has flow.
cybersecurity, less On portfolio and should defense our COVID. collectively which be side, companies such substantial contracting, services, a by software, as impacted communication the many government portion of and of positive our industries are in comprise portfolio
to more summary regard highlights, financials, With go will I'll detail. Aviv give our some and into
our income investment $X.XX share. net per dividend per share Our was of $X.XX below
times, which ratio excludes X.XX Our net debt, was and debt-to-equity SBIC X.XX ratio, regulatory times. GAAP our net was debt-to-equity
that liabilities, SEC decade they us to our for liabilities started the of financial which that such as the you early at at As About XXXX mark liability facilities in regulatory marketing of the and in test. better of ensuing prefer NAV volatility values. response market asset to global cost have benefit we test. credit that The to in would the purposes, market volatility coverage reduced asset additional for reduces many we and of our today. many in times for as and calculated bonds the it market, know, guided This align our volatility, asset time coverage we for and nine the was ago, the regulatory we leverage do of months now crisis,
leverage. will highlighting regulatory coverage we GAAP result, asset a As leverage both and be
share GAAP certain which offset our NAV, markdown $X.XX XX, down liabilities. to regard was both as prior quarter, XX% from of by of assets, the the per approximately NAV reflects With March
XX% Assuming quarter. have liabilities been would from $X.XX, were approximately not prior adjusted mark-to-market, down the NAV
of ratio debt-to-equity regard leverage, times. to a X.X regulatory we've targeting been to With X.X
due above of asset this quarter. X.XX mark-to-market portfolio. in an Our times range our of was was the net and end regulatory coverage was primarily X.X% our upper to for decrease ratio past the This
had of revolver and liquidity of in facilities we're compliance ample all with our We draws, from March XX. as
commitments. today, liquidity our to have support of As we
our stay requirements in our both We and to looking regulatory credit manage compliance to carefully expect are time, over leverage with facilities. and we under covenants
maturities. diversified with a near-term and funding We capital no strong have sources structure
consistent maturing a $XX million XXXX unsecured $XXX our with dialogue maturing credit banks, thankful We've million syndicated facility lenders of million are maturing $XXX the been debentures have separate with SBA XXXX. in in and support. of XXXX for in a We XXXX, credit revolving $XXX notes in facility and maturing in their million
have Regarding in process. two structure, our capital initiatives we
to SBA, hopeful our the application are our for letter continuing we're green future. on up received receiving move that with forward following III First, license we the in SBIC and our near of to light
senior have our both we would assessing as PFLT. This successful earnings actively joint venture new and our flexibility are we financial over venture joint call, that the on increase similar loan JV time. we Second, to February discussed in a
over rotating of unfortunately, as Last using to included particular, equity SBIC moving invest plan well our debt cash-paying forward and and our as the COVID, investments. in JV. the instruments time, out quarter, plan rotate we plans income those investments which Due III in of to to equity both proceeds grow got shared the on potential to out delayed,
have reassessed we result, our the our a new relative environment. in earnings to dividends As
consultation is dividend management power economic environment And Our XXXX due company the it uncertain we share in prudent quarter. for our to dividend. given concluded per have board regularly adjust team earnings that Board and to the June evaluate the of the our relative to $X.XX the pandemic, with to the
personally and reduction. time. we the believe is undertaken consideration, is We with This disappointed this at it right decision are serious this all regarding
to earn This income other should expect income growth. with or continually exceed or dividend gains to NAV environment allow contributing us our the to to where return long-term through we recurring
our with As adjust with waive adjustment consultation conjunction shareholders, demonstrate with the fees two board over our the have all voluntarily In earnings next grow upward. to alignment dividend time, for incentive to intend to decided we dividend we quarters. and in
With price, the to regard accurately share stock price long-term does of our that company. the value reflect of we the not PNNT believe
of PNNT we today below our value March multiple a shareholders X.X this earlier, about the times, portfolio we, As price investors underlying companies stock at of of as average XX X portfolio into the times at stated was debt-to-EBITDA the of the of in a flow. language translating well NAV, of cash
potential in with to investors recession that should flow, a declines appreciate in be multiple. able attractive value cash low Even
it As of of strong excellent directors, we and our Investment PennantPark about demonstrate opportunity alignment investment February thought employees because an officers and interest shareholders. of in XXX,XXX March with disclosed, PNNT Advisers previously and to purchased shares was
CFO, the turn the now our us to Let call results. over financial take to Aviv, me through
