PNNT - Earnings call transcript Q3 2020 | PennantPark Investment Corporation

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Operator

Welcome to the PennantPark Investment Corporation’s Third Fiscal Quarter 2020 Earnings Conference Call. Today’s conference is being recorded. At this time, all participants have been placed in a listen-only mode. The call will be open for a question-and-answer session following the speaker’s remarks. [Operator Instructions] It is now my pleasure to turn the call over to Mr. Chief of and Investment Chairman Penn, Executive PennantPark Officer Corporation. Art Mr. may begin you your Penn, conference.

Art Penn

I to disclosing about conference would PennantPark everyone. please included Efrat, morning, Good like discussion Officer. Financial conference third joined by Aviv, quarter call our am and Chief Investment off welcome fiscal XXXX general I forward-looking earnings by statements. call. start today Aviv some Corporation’s to you information

Aviv Efrat

from actual I at law. Chairman Art Penn. to obtain like our website us Executive by or do that to as note Officer, broadcast include is pennantpark.com SEC that would back our I to this be would our telephone important everyone copies Harbor website. call also being using like To the replay ask and property our recorded. call PennantPark regarding available factors form that we call SEC Please most provided refer visit call of call could I’d statements call with numbers to also time, Thank and not required will XXX-XXX-XXXX. filings, Today’s Chief Corporation like you, in our our that Art. undertake attention cause in projections to may by Audio forward-looking any of forward-looking recent unless this of Safe as press customary well materially for We our that information. statements to remind strictly the turn of the please conference is and latest and differ to filings on today’s prohibited. in call the to is PIN call release these Investment at forward-looking release press your disclosure and our the you projections. any the results this update At unauthorized earnings

Art Penn

Thanks, Aviv.

families you are and that First, work your those with we hope you, staying healthy.

to working and operate our of diligently report investors. committed and PennantPark on continues effectively to remains pleased are to behalf that smoothly We

Q&A. quarter going the XX, quarters, discussing the We financials is a the our portfolio value challenging ended June pleased few up we liquidity, fared in structure key on open goals accomplished upcoming of then proposition during adjusted are minutes the NAV by how market stock, we it past achieved increase and stabilized for spend and to our the capital how conditions pandemic, the economic Despite we positioned the a in brought that this for quarter. the We as are quarter. X% several

our We also liquidity. leverage increasing achieved goals and of reducing

of with equity of loans million an million Senior an to by a in the pleased equity time Loan attractive formation $XX particularly The investor. our Pantheon venture at made existing joint into They investment Fund, announcement is over an private our PennantPark additional portfolio the leading $X.XXX $XX $X. PSLF, are invest initial Pantheon, market We global price markets plan at the JV fair on of of with of value.

of sheet. platform the our Pantheon it will decrease approach we rigorous helps to challenges underwriting future additional equity platform not proposition us validates the ahead. manage market into be our attractive lending to $XXX leading and by that to which only our has in through into our vintage for existing creates The positioned balance scale believe partner are We investment loans of in successfully leverage the market. our bolsters and the new the the that Additionally, continue process from a PennantPark capital disciplined value million, about portfolio, also seeing

of in cycles to this best help team experience outcome have talented multiple an We with environment. excellent the possible and dedicated managing difficult through type professionals, of of many decades ensure economic

the to eventual pandemic, predicted global recession preparing we an proactively COVID-XX defensively have for may Although we know, been the portfolio time. as you never a for crisis, possible. as as Prior we positioned some

higher the and we positions, withstand several lien first the portfolio. market secured moving years, volatility. have structure Over constructed portfolio been and into capital generally economic The a to overall into in was past more diversified

June was of X.X% interest X.Xx portfolio non-accrual As our value. only debt was XX, X.X% cash the the portfolio only This EBITDA names to had in by the at exceeds ratio, different in book market average cash coverage represents of of income of We cost and the average X.Xx. interest amount expense, which PNNT. on and out one XX

although loss companies annually. exposure prior of we yield health crisis, of will primarily in pandemic. This largely airlines, points highly diversified have an the been avoided average industries. losses, and and XX annualized have the realized invested XX The made discuss of basis to XX most apparel with about of an does our the has retail, now some hurt Since investments, XX%. the inception, sectors investments annualized PNNT clubs, oil the have ratio energy XX points loss only unrealized later. $X.X portfolio track financial This record was our different we to We billion as that compares debt restaurants, includes to include basis by the PNNT and such both ratio realized portion which and If subordinated strong annually. pandemic, at some gas, is

financial as financing sponsored middle-market will that today, XXXX was recall PNNT just focused You on transactions. in

we performance was the crisis which ultimately million. through financial Prior $XXX crisis XXXX, and September onset aggregated financial recession global solid. to the initiated the global investments, in of Our

According on was about bottom the Bloomberg more Index, playbook to during the performed investments to becoming playbook the is existing highly High similar bar portfolio American EBITDA that We to focused our XX% X% selective the Yield portfolio the Our fell while North of companies Average on The well. timeframe. capital, primarily high-yield of about the investment. to average company and EBITDA underlying preserve then recession. the new down now. even raising

financial those and underlying The recession. was investments even prior were of few we though result IRR to recoveries had that attractive a on they As defaults and X% crisis the portfolio. done

of proud track record. downside this are case We

only while those are even been we have inception XXX ago. capital non-accrual, we preserve XX had have going We had out that years our Further, since able for shareholders. pleased have XX investments companies of over to we non-accruals,

Now, in ahead the and outlook our positioned. the turn is quarters coming to how portfolio let’s

been basis a frequent teams the with management have private communicating owners companies. on and portfolio We equity our sponsor of

clubs, As the that are from restaurants, worst and our us hit as gratified of retail, mentioned economies, airlines. areas focus previously, we the has protected health historical the of some apparel such

focused the We our moved have up shoring pleased portfolio and have been to with cost adjust companies have on liquidity. way rapidly

is industry, expenditures quarter. all RAM negative, Revenues drilling liquidity about capital those energy quarter the as there the and pricing have in entire economic is materially overall from portfolio they suggests of conserving reduced The analysis vast to and and was investments our to of uncertainty that but There industry remains payments quarter expenses material portfolio. represent prices a as liquidity. reduced the since to quarters. companies flow Looking interest pace in due their September the of its last the ended portfolio. the pay timing perspective majority things challenging activities no and update come were forward XX regard briefly on personnel. in investments where were the the recovery today, impact stand oil the X.X% our beyond, sufficient With and have all cash and ETX in meaningful the suspended and Nevertheless, coming non-essential

hedges in the prices. of oil place helpful, impact only were mitigate While they low partially

trend in We to stabilized seem are higher around encouraged and $XX reopening have that coming economy, of may the the partial with oil prices months.

defense On impacted the of portfolio many in cyber COVID. software comprised government which the and a are less positive and services, substantial portfolio are companies such side, security, contracting, as our portion collectively by of communication industries

see on terms have to terms, protect benefited traditional protections quickly much Due structures attractive larger we be to loans, where to middle-market companies. been been of covenant of positioned companies with companies, in us our sooner from lenders and much covenants enables to are potential challenges be These typical has negotiated, portfolio focus we and borrowers. larger at which no and the and those more have assist able to low we table borrowers. the the covenant and to capital Our have

including As two. in including cases, from to increased increased Inevitably certain be amendment stack equity and fees a yield. protections, enhanced a or as as need well may result, we capital economics, there have more sponsors a broader negotiated of restructuring

highlights proven time have over dealing at business, XX we years these in will to detail. summary Aviv into we our As go over regard and are adept will value some in and give With maximizing financials, I more situations. with

our income net $X.XX Our per of per dividend was share investment above share. $X.XX

the would of calculated the for market of early XXXX the debt test. Our debt know coverage now cash, SEC to GAAP market ratio, purposes, do which many liabilities, not and us as the marked our and the which a ensuing additional at that many regulatory time Regulatory liabilities volatility and in you that times we NAV cash volatility decade credit Last of for asset prefer for market was as equity coverage to as better to guided to today. volatility to cost ratio, that of reduces net our equity in our of SBIC asset such facilities they that This leverage and started test. The benefit net we year was response X.Xx have the reduced and marketing was asset debt excludes GFC, align of in for bonds our we regulatory we X.Xx. liability values. of

highlighting result, leverage with NAV. both a GAAP asset regard regulatory we and to will coverage As be leverage

the prior liabilities which to approximately the been to have regulatory to reflects to certain $X.XX ratio as been Adjusted liabilities X% NAV regard X.Xx. from markup of NAV not quarter. equity would GAAP were $X.XX offset was June targeting from Our With quarter, a market assets, debt market. XX the approximately we assuming both leverage prior markup of have X.Xx up of X.X% the of by of

past coverage asset net ratio net X.Xx was X.Xx. this creation asset Our within our ratio of pantheon with the quarter. would of range forma Pro for PSLFJV be regulatory the coverage the regulatory

in liquidity have all ample to our readily available of XX, support borrowing draws have June we facilities and a cash our revolver We liquidity to were capacity with fund at and compliance commitments.

in $XXX lenders strong maturities, and we’ve XXXX, of million credit been maturing revolving in facility have capital dialog $XXX are million XXXX their banks, unsecured of $XX our with we for and the SBA syndicated near-term diversified thankful consistent no sources notes maturing have with XXXX We support. debentures in maturing with and a structure million funding

structure, capital Regarding have few discussed our quarters, the over we initiatives. last two

One has our in we the initiative now our been SBA, application received place, light is green SBIC up on following to is III. other letter of the PSLFJV our that them our for

XX% a the facility at portfolio $XX.X million the from million, that lien value discount a stake in process loans a with minute Pantheon moved credit $XX.X our sheet. and is subsidiary which spend and The SBA owned in to result wholly the PSLF JV, of $XX June value with Pantheon to loans still PLSF. a of entirely of on JV off a senior this on Pantheon to fair as investment are the $XXX subsidiary take XX as BMP SPV secured balance value $XXX invested is the existed an small PNNT a We previously fair million of as the on dollar, new first as dollar.

impact credit dilutive As sheet that or or million BMP off a per the moving GAAP facility. facility to The NAV balance to $X par share. $X $X.XX is a about due the a $X.XX result mark-to-market additional NAV transaction is share, million of of to the by

by into the of $XX.X result share. The to share GAAP adjusted was a invested and the $X.XX PNNT approximately our the that LIBOR subordinated believe million debt With long-term XXX of equity, stock other on of floor share was does is a accurately paid NAV XX% price into cash for a in $X.X not of subordinated X.Xx we per the regard debt invested PLSF spread PNNT. is of LIBOR the are value the Pantheon debt and has price, to split investments Pantheon and impact on $XX target in SPV, NAV reflect the a and As and million leverage impact company. $X.XX the of million X% PNNT XX% equity. to

debt had about should NAV of the price even companies would with appreciate a potential Xx below value in multiple the average underlying own of our the shareholders well to a portfolio of that in as today XX decline recession with flow, be flow low able cash at investors into attractive value PNNT cash earlier of was multiple. company defaulted X.Xx. every this stated portfolio EBITDA a investors June Translating stock and language As at to

We review to look continue and new will to make we selectively investments.

leverage higher have and and years are XXXX cycle are vintage on believe business reasonable levels attractive lower tighter we a it to are is The a leverage middle-market to equity Our attractive for of outlook is covenants X risk including attractive have there of the projections the of defensive financings protections focus to and higher since most package likely XXXX vintage returns. available be loans time structures is late light we period new refreshing market covenant be is lending is about attractive, have that to continues lending to upcoming us. yields enjoying for of cushion after middle-market reward seen companies are

CFO, through Let to me take financial us results. Aviv, now to turn the the call our over

Aviv Efrat

you, Thank Art.

per income totaled investment quarter the For net June ended $X.XX XX, share.

totaled totaled totaled million. $X.X million taxes, general expenses of some administrative fees, million the interest and at base expense and expense $X.X categories Looking $X

million incentive Net fee credit Net $X.XX $X.XX depreciation or gain our $X.X per was the our was unrealized investment on fully $XX unrealized waived. per of Additionally, facilities share. million on share. was

yield consisted had across inactive where independent broker under our second cases valuation rate in ASC X% in provided lien by XX% average to X.X% floor has loans was secured per XX, $X.XX XX $X.XX net Consequently The quotes investment increase portfolio we when Board the per share. broker-dealer using Our per primarily valuation firm’s mark-to-market exit and excluding on Adjusted was portfolio. income entity quarter or Directors markets our our of to in dividend XX% a dealer LIBOR XX% equity overall different of mark-to-market each due valuation companies increase $X.XX and exceeded our a XXX debt of preferred of investment independent independent quotes floating in average by X% a share. in credit available securities are is weighted XX% on from X% share, entire of portfolio first-lien XX% invested portfolio are has per LIBOR went and $X.XX up In per to exchanges the liabilities the share, senior active portfolio industries. and on share our from June are XXX. X%. which was debt firms investments, subordinated notes value Reminder, and floor. portfolio facility $X.XX our use NAV common NAV XX the secured by our the The price debt our of

the call to turn back me let Now, Art.

Art Penn

of Thank conclude, is do returns Aviv. flow less our out high risky cash companies capture like we debt find in try concludes want and flow that I dividends and reiterate call Thanks, middle To time to investment We us. those today dedication. instruments the your coupled free confidence to cash we all you to contractual mission, income At to this the is and long-term our our and I questions. commitment of that would to professionals free through for closing, cash like goal your risk-adjusted for we for primarily flows in thank everything of and continued preservation to in market shareholders. open form That we extremely if remarks. generate our up aligned with conversion time, would capital, talented to goal. attractive team our their In pay for

Operator

Jefferies. with take Thank Joseph Please will Kyle from our you. question Instructions] [Operator we first And ahead. go

Kyle Joseph

I my with quarter. what I was sense, afternoon for in guys. balance sheet good questions. and you here quickly here. to capacity investment quickly the expect the you we Thanks touched should on to new recover? following it that light having a bit in we environment how get guys Obviously can a originations But attractive you your on mentioned me rate know taking ramp. wanted JV, an new new are deal be given a you this the the done investment vintage know Hey, how just increased to expect should activity

Art Penn

our in financed level, very new turn Yes, getting more careful to new equity a leverage tighter for terms and is is, green of seeing yields a are encouraged QX combination right the higher is higher, sure encouraged will we returns leverage flow, shoots attractive a we well growth. about portfolio we be kind by do. risk-adjusted seeing flow and we that portfolio you covenants of want Kyle, lower it as only are existing nice it what of look going refinance over time, now are Thanks through of shipping at our as to careful be so our it’s thoughtful

So, a the careful that some as as we have into combination will of taking naturally growth well of future. advantage repayments

Kyle Joseph

lot balancing then environment that of terms a yield rate moving investments. the of And sure. anticipated so JV, on in got new we the Yes, parts

just outlook medium term kind that, and for, sense a can on of longer term? the yields balancing then So you for portfolio us the near-term, for give

Art Penn

Sure. course XXX new months great XXX where to on of some up or just X they in XXX issues in It’s ago. from X case, were a points question and basis seeing yields up maybe

of is, all preservation credit has is and think capital more the better credit attribute. the that and with we Importantly underlying conservative is

with a XXX months might over middle EBITDA of X.Xx ago of So, X generating to down fairway a the spread. of kind Xx debt LIBOR. X% of to deal Xx X.X% there have kind to think probably LIBOR debt the today. typical X.Xx XXX levered LIBOR been We or our in and spread to it’s EBITDA to

is package in So even the addition attractive overall having to today, very tighter covenant.

going very keep this returns. Xx be it below to be risk-adjusted we vintage below is to Xx. wanted book attractive But always specifically Our will

Kyle Joseph

answering very questions. Got Thanks for much it. my

Art Penn

Thanks, Kyle.

Operator

next ahead. take with Dodd James. Raymond from we will And Robert question our go Please

Robert Dodd

Hi, guys.

the congratulations the does lien in mean mean that going and that JV, prepared remarks, questions is to that that forma structure. be that of by to had shifting. JV the asset no much mix much in skew that industry everything away towards first that JV, So when to first point from the lien information on some obviously type going on balance relates etcetera more you sheet is the pro I to further

on come going approach on is balance format? as in of look think the may can in the portfolio JV up forma to mix currency you us they to market where give intent growth JV from how going portfolio that color are mix it’s you lien any consolidating of almost at the just total the firstly whether how So offsets sheet or to view to are pro the first be taking the you terms about when the the to stand on you

Art Penn

Yes, yes.

So of to a a thank and now, comments couple and couple Robert, of you.

First, we to to the that wanted of want took first $XX why to a up portfolio $XX position are invest only invest that’s million in future. I today lien selling more and and potentially minority panting they XX% we million

towards really to couple So, in continue is good fantastic are to has been only of in is think could which what by we a in sell of balance do that’s years that a going pivoting to should lien first last grow and then that portfolio wanted not portfolio we second of you our mostly that’s also of that itself and what’s a about piece time to deal say over talk sheet there minority that the compelling. we portfolio and lien and if and large,

We looking always for but about thinking preservation. we that, capital are generally are

push have should we want that we back have exit we coming and our until over do but a very and that pandemic the over year First is portfolio still investments. the of those promising has equity exit we equity here of time, a think to some two or plans happen probably year, equity we chunk and foremost, those kind

but what we we good the we for exiting I year be, the the and It’s pretty forma as focused goes where cautious conservative mix as are think assess see is preservation to pro going rest over two investments. price these PNNT over exit of I and or and on possible. time are investments should the market can think see then we equity stay and capital of next and

Robert Dodd

to the obviously stabilized Got this at would topic, obviously think remarks oil gave curve, what those were kind to from with at handsome some them be will we prepared like. capital somewhat they not suspended use and color Ram on would ETX those Macquarie. ETX look reactivate in would the We the drilling, activated going forward need rebounded XX it. week has XX how but programs drilling cap and And obviously what have if that you even to of if the sufficient I oil

give can all? So, any color you

Art Penn

Yes on down hunkered there. a quarter are we

or those back look more I starting investments to I would frank, when $XX outside to be to and quite up And to those look a What think then we capital to we oil those think or be realistic starts to it’s debate. $XX gets exit know. if levels.

the at extend we we it long option that hope as oil I quite time to while think we those this might a point, we think good can and and a can as are and doesn’t have for hit point we extending should be those some investments. levels at

Robert Dodd

the vast interest. Got etcetera it. you know can going is pay said, vast And forward, if I one the liquidity have to majority more, companies if Yes, majority in. don’t obviously I

what’s those why mean perhaps, gap? are where what still how not of you and mean the I have vast the So liquidity more majority being those with evaluation there in them. going done a bucket, sponsors is an or for is I discussions situation them the done

Art Penn

how the thankfully name kind minor particular Yes, we and and rather for and or to what talking Sharpton we of thrilled that up we I travel control related certain are about shape. to some if it’s sponsors, very willing frankly it��s are whether mostly at by really take going day of is months and may do related be it’s case X and quarter we if where ask here non case is case have kind where in quite so up sense, or me by make very we NAV you things amend been of I cases there accruals to today. some our are put not, and ago, really get sleeves the would touch that. there every paid good issues were very but with is do it’s And mean name, be companies, portfolio certainly to going roll do, sponsor BNL and point. this to what you the small outlook for the things small thankfully to in very, we name the the willing by equity the most a case Do to they piece in know how or do astounded

Now yet, is disclaimer the we right. are not out woods of the

how pandemic, what are those So, we to public you that, we of, have in halfway of you are and or this are see vaccine do through about what pretty through midway quarter. good the The the all are kind we mostly the issues think goes feeling it, way health fall we portfolio. feel and through what a we and say the are issues kind if through

Robert Dodd

I it. Thank you. appreciate

Art Penn

you. Thank

Operator

Woods. Please We Bruyette & next Keefe, Johnson from ahead. our go Paul will with question take

Paul Johnson

am curious my questions. into solely I Hi, taking guys. investment the or along investment? do structuring just investment being question had for do the an I equity you another with intend the equity debt on this you JV, on how Thanks on JV. possibly bifurcating plan

Art Penn

XX% subordinated question, similar PFLT about and to X% a venture be split equity. Paul, our XXX plus it is as with will below it similar Kemper joint Yes, will the JV over rest will debt L and to be be good at

Paul Johnson

but then in balance process, I And given into sheet. on the guess thought it just this also that. portfolio your the for went definitely higher realize have on your I JV, equity probably great. allocation the Okay, Thanks

with your think any of I bucket? issue so have XX% to JV, it’s fair limitation of the non-qualified with kind formation do the value or you in the expect asset

Art Penn

of through will good underlying problems. few issue the think investments an a JV issue question, are assets likely terms market feature No, understand that JVs asset debt. other in we we the first of plenty and lien the XX% of look, in the all the so dry have foreign powder qualifying amount But us see this bucket, and really got not committed it’s we where has

Paul Johnson

with have And Okay. little modifications a is been you on that the quarter. then bit dealing loan the waivers

bit seeing if curious moderated of kind that’s of far, Just sort level activity has if same so in time. at just quite or of coming of kind requests a this you

Art Penn

we still or yes, more we are have still seen but are was time momentum or April, less some pacing slowed process area of a some on, on of kind in in it the and that’s request work now amendment time that over going seeing essence, have has activity down of has the certainly on Yes, the in as gone we we those

Paul Johnson

just that of Energy areas I curious you pretty changed far on do consider do stayed as the the still opportunity today static you investment And ever to Thanks and mean investments am if nothing for just mentioned current the holding very a where could for mean maybe to Ram environment large obviously what possibly be cost if, attractive it you there’s versus challenged. like this I deployed that. to and do has I I or I mean the potentially you to last realize an the I you be evaluate portfolio. be these types outlook as how say much new to said easier how a question, investments. make potential the even it’s on to environment. some than into balance asset improving how of done going entering of do a some also capital consider that especially time attractive investment sale in an

Art Penn

opportunity, time the attractive a always great loans it’s exit portfolio RAM. today weigh course new look the We and we question. of we all and get existing down against you where took an forward Yes, we can

Paul Johnson

Thanks. answering questions. for my Okay. Thanks

Art Penn

It’s time the questions. for next

Operator

ahead. go with We Please will Shane take from Rick JPMorgan. our next question

Rick Shane

How are you?

Art Penn

Okay.

Rick Shane

If these you exited what on calls? we talked about

Art Penn

JV Yes, I I that’s am but the topic going I will about right, talk mean it. you talk are to I guess the about today.

Rick Shane

want actually a talk for to did about little bit. the I All that. me it’s bit I Yes. appreciate a JV because

have on questions had You a couple of the JV.

will You the right on be through that given of is on of origination the hand. in overall is market. I reentering capital the am assuming sort leverage now, incremental had the to some JV, likely portfolio where the be questions deployment

Art Penn

it’s be add-on to going sheet PNNT about it’s mean think the it JV both I be, could balance investments. both, and I on

sheet So, the JV both and and then think repayments. will balance have the I

are We yield opportunity starting on to is repayments it an portfolio. and to see of happening some course the upscale

Rick Shane

Got it. there structure my would both because that Do physical transactions, able due question, bit, change final diligence. in to actual will actually the things market being to that like collaborative simply clubs and terms structure your syndicated do a due given are now origination And right you little to diligence? more of think channels you advantages leads do

Art Penn

You challenging putting are of a together are about haven’t with kind question couple diversification we to actually it like were it’s mean, desktop, challenge along things, I interesting look, do of or I consultants. certainly putting certainly figure way though relying can much physical in different think the can thought which if I work of diligence due who about on an more diligence out. but I to with the much independent sponsor How is do today Xrd diligence, parties want type really thought think hadn’t putting two how club the it things, or you deals we issues due we is question. people we about we way, how that good on done will together, get due our a can much

to the actually to kick do without can you tires the best is question ultimately kicking what do and do do everything, You that. going The almost how tires. everything

deals don’t we think I done. get I can and think So

somewhere. people we get to will are we has think factory to can physically not your figuring I we to out I how think send how for done a

are do have question in right is everyone really you diligence fact more the with can you And kind know partner mean of portfolio. alluding to Thomson I big, you thinking come at so wants about. deals more of a of think hiccup. big, the bite diversified done I a get just if of are full now. that’s the want just us the want least think sizes, big to to have I due diversified, because folks I really diversification market then the that don’t take by have will to do we big because and you said, I who terms But we be some think what to on don’t

matter managing our and management a as Just portfolios. of risk

haven’t that’s of answered in question. happened Rick, are know if bit. you I I regardless I think diligence due to but question. little please I your the a drill if naturally don’t

Rick Shane

You and absolutely taking business is every appreciate you point? it. I at evolving interesting did How the this It it’s question. So fascinating. is

Operator

[Operator ahead. [indiscernible], take go We from Please question next Private Instructions] our Investor. will

Unidentified Analyst

okay? you can me Hi, hear

Art Penn

Yes.

Unidentified Analyst

taking for question. Thanks the

portfolio question, I taken on of the companies would in payment program other So have first advantage had of that assume many follow-up the company. and is, the your protection one one I statements

Art Penn

like, Looks we lost him.

Unidentified Analyst

me Can you hear now?

Art Penn

Yes, hear I can you.

Unidentified Analyst

will portfolio benefited and how The that question have thus plans a program sense which imminent they the or should from has quite stimulus year. PPP you could later how do of your much off, of this other is in just those be through this this or manage short-term to should fall roll

Art Penn

our of We typically, question. in program. good would say participate companies did in SBA or were SBIC already there already a That’s companies handful be you. that an they a an Thank Yes. Triple-T

programs looking based said, they of liquidity. been the do are helpful – have of programs to most of need through or world very since trends and kind SBA part our been are companies those they capital enhance either teams have we liquidity, expenditure and managing our working expenditure already management long-term were funds. are or the what doing professional cuts looking and sponsorship the our the to on cost what they through capital Certainly tightly. the Triple-T, That seen they So capital accretive bolster at

prepared So included some those portfolio. good underlying portion of names. of said the Triple-T the liquidity remarks, pretty in I in are feeling about we as the

with seen to the running, use we to that segue, it our seen yet if as we are going a portfolio. program any haven’t that ears we Fed yet program. I are So just I see impact up and Main to it we is – ground what happens now think our But Street means haven’t and

Unidentified Analyst

you. talk argue your purpose one X%, any thank A than that as remarks, purchase follow-up quick investing could in deal be it’s in stock Great, XX% will you that of you the X%, new new at investing a could about capacity? stock rather on maybe stock,

Art Penn

Yes.

here at cutting out. look to you are were you If it

all are ago. we about two think have I the about at about time, That’s one are year PennantPark stock completed you look at we buybacks our asking something stock done you stock my the influence history asking a buyback. buyback in we of that have

think cap So that can right we we large bought the a time about back on are these about relative time of mostly of sure we today course XX through now million of liquidity capital in the something pandemic. relatively to of get stock over the the company. we all making It’s world where a market are That’s the amount market focused cap.

originations next then kind sure with. pandemic point, existing companies somewhat this kind the that’s possible. we as that preserve good pick for We deals, are to capital focused are in until we have the the want as pandemic get importantly, to new we we of really through pandemic on fashion few excess but Most quarters deal very it at or liquidity just want do and we preserve at and liquidity. through while think I on we will want get my again. make a up about of just at why new look least And the comments our hold through Certainly, portfolio to to have getting muted. we put

but answered So or anything cell phone, maybe It I I your you if little was know question? looks answer a did don’t Aaron on your that question unclear. else your the question, like

Unidentified Analyst

thanks lot. No, a

am cellphone, and Sorry, the the Thanks so lot. on I communication sorry for appreciate your to come a time.

Art Penn

Alright. Thank you.

Operator

Mr. like Penn, the at you I’d or further for questions there additional remarks. to back time. appears no turn to conference It this closing any are

Art Penn

being on next everybody we Reminder just a our for want is doing the that XX-K. thank call are today. call the I time to

a of much very to – then. you. be for anybody you your talk happy normal to If be Thank chat couple happy will are So we weeks will mid-November. people now between wants then and we to to to later Look forward than probably speaking time today.

Operator

And your participation. this concludes today’s call. Thank for you

now may You disconnect.

PennantPark Investment (PNNT) 7 Aug 202020 Q3 Earnings call transcript