PNNT - Earnings call transcript Q2 2021 | PennantPark Investment Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the PennantPark Investment Corporation's Second Fiscal Quarter 2021 Earnings Conference Call. Today's conference is being recorded. [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. your begin may you conference. Penn,

Art Penn

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

Aviv Efrat

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

Art Penn

our in capital for we how Thank you, quarters, discussing few the liquidity, financials, the is the structure open portfolio positioned going ended it fared I to am XX, a quarter for upcoming and the then Q&A. how spend minutes Aviv. and March up

performance increase quarter, our from with $X.XX NAV. pleased per X.X% per this are Adjusted achieved a $X.XX we to adjusted past share. $X.XX We NAV went share up in

We that today what is pre COVID from XXXX. was it over pleased XX, up X% are December our NAV particularly

We in our appreciated in minutes. as investments highlight have is have and the equity bolstering several a benefiting in portfolio we these our recovery. and companies which from NAV, materially solidifying value they're companies This will few

a we of by our choose debt side alongside part make the to we equity side investments As financial with business the selectively sponsor. invest in model, co

among market time rotate program over our a term differentiation income understand excellent of differentiator. With to long of clear these of Our investments for investments of our have opportunity yield middle times. XX, and returns generation, a lenders, our our March, are instruments. platform on equity to into have to inception equity $XXX the returns on we out and been may investments want where world a In equity our investors invested IRR an million of X.X XX% generated over from multiple on have equity time. capital Overall our out investment regard through

income In JV we PSLF should with our Pantheon, grow the that and the generate of also addition, P&L balance ability sheet, have additional which the to for company.

to million sources senior or notes that X.X% institutional are diversified investors. financing five our year pleased of with we We issuance the also April, in $XXX

to crisis, to volatility. withstand economic the the know, some pandemic, COVID-XX time. and been we is as we recession Prior never the market we for global overall predicted portfolios defensively have portfolio positioned possible. proactively eventual an as Although preparing The for you constructed

X.X income average the the the average times. expense by and interest coverage which was debt XXst, cash was EBITDA portfolio amount As ratio cash times on of March to X.X interest exceeds

have our book in non-accruals and We PNNT different out on names of XX PSLF. no

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

financial global the excellent. through performance recession and was crisis Our

average declined recession, the EBITDA compares American that North bottom at the index Bloomberg of the This XX%. the to yield average the EBITDA the high by of decline During companies weighted underlying of of X.X% recession. portfolio

are recession companies downside underlying COVID. or on proud We track this case of through in the record EBITDA tracking prior based

are global we companies So experiencing business portfolio far, services, and industries Many government with expertise. will was financial defense, technology, and strong by have impacted a that we the healthcare where less select We recovery believe believe companies as substantially our that EBITDA and environment. it some domain of consumer software, being of less services, meaningful that are beneficiaries during industries COVID companies the our be such in crisis. than decline we are

I a to care and is the health in reasonable high leading national Edison, provide a PT Pros, five primary Petroleum. investments large move that our Wheel health needle in companies, can which JF five in Cano, transforming are to cost care they like healthcare the a We Walker companies, to substantially equity Network, we leader of way highlight are have pleased who would NAV. of population. is significant these those Cano quality at

From cash $X.X X,XXX,XXX Medicare to million as value and XX, years with there's market on the close locked by receive and in due partnership health equity for up Our cost and limited that where Advantage exit XX% to acquisition of will a Canada $XX the in and will the scheduled sponsor fair Jaws financial six earn million custom to sponsor opportunity will to distributor lockup, Cano At in for valuation the ahead merger we is massive traded controlled perspective a with program shares discount independent grow XX. June. be Pros March the valuation shares time, largest national wheels. March position aftermarket Wheel of of months. another $X.X that of firm a valued respectively. value on million a position with believe We the the X% proceeds, the is market a and a illiquidity

resulted weeks. transaction of Edison sponsor will executed position. market platform investment is cost equity of selling Wheel The furniture exclusively a multiple our a $XX.X online top of a after fair result which the fair quarter the dividend company of of full on XX. the vehicle, million as and equity on as a invested occupational ownership At costs the leading and while market million on provider exit This Shortly This and and of focused Walker capital in through times the a investment times. Our March, transaction with $X.X end states. a investment generating will his March in in cash refinancing equity and Network Mid-Atlantic has company. new Pros. in shareholders cost leading XX. recap, e-commerce a million the to our which PT of payment $XX.X same maintaining PNNT ecommerce X.X two resolve position million value company equity Wheel next our announced in resulted as seven strategic an IRR March and companies, the position physical Pros, the XXX,XXX the value receiving couple of of is close their of is in in receiving therapy of in a expected XXX% in a the

demographics, of results times. company about several had in has which operational to the EBITDA through a XX comparable COVID. in mistakes. We've team outlook a brought to view at management companies industry equity the which mistakes the and Our the who operational multiples those ownership, shepherded PT well and made we company our in after an through trading corrected excellent investment positive tailwinds Under XX came industry the of restructuring came always and

equity or installation fueling a leader servicing, related as United and Petroleum retail distribution States. million, and stations, value the cost million March to as market and of of position JF vehicle a $XX equipment XX. the fueling in retail in is fueling Holdings of JF the a Our $XX fair Mid-ocean, locations

a a returned growth. result restructuring, of recruited stabilize the of PNNT As several new management years the to restructuring business owns the XX% a was and approximately it equity. After ago, to team company's

continuing accretive through acquisitions XXXX. in place company package and a acquisitions. completed, stable performed through COVID organically was put senior to long well several and grow have financing been term into The and is Additionally,

$XX and these financial equity as this and equity be continues. our securities, owned are As NAV market of $XX companies March to with and substantial respectively. XX, value moment momentum fair of million from cost their bolster a solidified gaining These in environment, should investments PNNT million,

Additionally, its two among its only cash Energy service, with strong from cash in portfolio. and XXXX. a after and lowest of liquidity we production. investments which to X.X% repay flow our Pros has is RAM start the of company's to and on Wheel free are are debt. among higher percentage in event footing benefited use now completed investments and Walker results PNNT solid The were plans and pleased prices and Edison, rotation energy that wells equity best positive operational any since RAM January. last [ph]. program. a has overall to Austin the chalk debt stable financial The represent the flow

XX, from Over the months over of of the come March equity XX% last driven of appreciation of represented mentioned. portfolio. previously the companies XX% many this by As has approximately XX% XX

that portfolio. about goal the term target long of to Our percentage XX% down to continues

to equity investing new increase investments outlook looking cash portfolio, monetize The Net yielding we're we in loans investment As to income. is debt attractive. forward for into the the

because a defined or compete market, We million generally the core not of EBITDA. are threshold market the like broadly and loan the $XX below $XX syndicated with core middle yield high which and we middle We on it million is with markets. does companies focused between as

higher is As rights lower such, less investment And are fewer, covenants nonexistent. diligence. EBITDA compressed. where timeframe we decision for or Information light leverage do higher are markets not and compete is adjustments cushion with wide making are equity an the

generally in high to capital other more focus market, we core markets, a our the hand, loan, is competing syndicated important with broadly or borrower. yield we're the the middle not where On because

cushion As such, leverage is equity higher. lower,

financial on quarterly thoughtful top diligence with six and real, rate recovery there more If have we higher higher eight million than to S&P, companies have weeks make with and careful less EBITDA loans rate decisions. those EBITDA. loans to of than companies and default $XX we a be to investment covenants, maintenance According than they are adjustments, lower to EBITDA to have companies. which are these to receive are We typically monthly of statements achievable,

believe yields We period to period, business. is is is which also vintage of that reward protections the was the us. packages by years time upcoming cushion time the cycle This leverage equity higher, including to covenants about market vintage it's after attractive we've This late loans After seen are to levels most is of middle likely vintage during characterized risk a of XXXX the lending, are middle lending five that market crisis. attractive financial lower, be global market available tired. the since XXXX to and for refreshing higher, have are

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

Aviv Efrat

Art. you, Thank

ended $X.XX per For totaled income share. XX the March Net investment quarter

$X.X general facilities the $X unrealized investments on our Net share. gain per of were totaled expense $XX some $X.XX realized expense was and on totaled share. gains at million per Net on taxes, investments base $X.XX core administrative and depreciation per our total expenses or million million. Looking fees $X.X unrealized $X.XX Net was million categories, share. interest

exceeded of share market Our mark per Net per share. $X.XX our was X.X% their investment Adjusted NAV $X.XX income Consequently, our NAV, $X.XX share. per to $X.XX liabilities share. per went from share by up excluding dividend $X.XX per a from to

and entire As quarter provided are dealer by dealer are broker broker cases XXX valuation available board valuation exit In using do portfolio notes active independent independent quotes the each our investments. a or price where facility XXX. to and mark a the value firms when firms, reminder, quite directors we use our by exchanges under market of our markets security and ASC independent inactive, senior quotes

per XX is on was September $X.XX share. spillover Our

of assets regards certain to of debt net ratio that to liabilities. debt March approximately quarter, cash markup which cash the X.X With FDIC X.X NAV XX, Regulatory up prior equity X% which to equity our was of Our by GAAP of as from excludes $X.XX both markup was the net offset times. reflects times. of was the GAAP NAV, ratio,

Assuming liabilities were not is prior NAV up $X.XX quarter. from market adjusted marked to X.X% approximately the

our XX. we're liquidity as in We revolver fund March all of and draws of facilities compliance with have to ample

We commitments. and our capacity have to support readily cash available borrowing liquidity

diversified no We have a strong with a maturities. and source capital funding structure near term

have $XX in million facility maturing of with XXXX the XXXX. syndicate $XXX in We revolving XXXX, $XXX $XXX maturing credit notes notes and in million a in newly maturing issued maturing debenture unsecured XXXX SBA of of of million banks. million are unsecured

is a common floor floor. in average their Our overall subordinated consisted first debt and second lien XX% portfolio debt a of PSLF, XX% in debt, portfolio debt, industries, X%. equity, all a which across of in labor X% On rate, has portfolio secured XX% of has XX, preferred X.X%. has yield invested XX% XX average floating XX% that weighted different portfolio and The companies secured in including PSLF. was including labor March in X% in XX lien senior of our

We June fee our board have incentive waiver XXXX. to the XX with in extend consultation concluded through

turn me to let back Art. call Now, the

Art Penn

Thanks, reiterate our want Aviv. we To mission. conclude to

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

Operator

we'll And Casey question with take Compass [Operator Alexander Instructions] first from our Point.

Casey Alexander

X% sure that want the represented wanted I JV is equity. and to XX%. to the XX% by Hi, just straight first of I the Is afternoon. is That's that good Only number? of make heard equity. that right correctly other the that

Art Penn

Just may of you. right take you in a look Maybe it have front here.

Aviv Efrat

number. is correct. That that that the PSLF. X.X% a About is Yes, right is

Casey Alexander

of room X% I so to BDC at from there are the that, entire And their relative there dividends Okay, know, of that the terms in JV? is there PSLF portfolio? the is JV mean the come in have position could many portfolio, grow increase that to you twice room is that size and any

Art Penn

Yes, subordinated the a refer And we good it's PSLF question. to just in debt to equity, we have too. also

you is as know, So, say going twice big piece I'm our sub as piece. roughly equity to debt our

it call X%. Aviv So

Aviv Efrat

or Oh, yes. so. X%

Art Penn

Yes.

going existing at subject total, what's and then to you So extend know, is a go JV in open it And totally yes, on goal fully in have little there. optimizing partnership, course, I you bit mean, expanding approval to, but look room you over of X% the JV if to our be that of pantheons we know, PFLT. to we

optimized to with financing a company camper. ROI. CLO JV, higher get doing We've grown we've by we're growing more, that transaction the sister a Our

quite So, that newer be pantheons, you know, aspirational yet, not we're you is But PennantPark would to at to grow and goal, standpoint an there the it from optimize least it. know, business.

Casey Alexander

how Okay. expected you outlook pipeline And quarter looks, to for side repayments pipeline portfolio? flavor a that and, earning of you the ability to grow over would give looks originations interest could you the how know, what then your if for the just us the compare your next to potential secondly, how are,

Art Penn

busy. We're

busy also busy repayments. is Now And sometimes also means good.

know, very, market, kind active. very has it's it's out, active an market the fallen you of So, again, and

We've want constraints, some subject quality a ramping do never challenge, getting very had comfortable. repayments, were that putting new our only are to we're obviously also money portfolio, control real we our we out. and Now, deals to

XX you a if history box. So assets problem fit never over look at our that had we've our years, originating

You more bespoke, know, they because deals the they take time. are

negotiating on do that. PSLF switch. as JV sheet. well covenants to like forward months both we with we Edison, Walker you're and a grow to a expect It's green work hope said, we're things key flipping the P&L and doing are But not that part as You the take And know, importantly, couple and you're like they and a and obviously see converting equity starting And proceeds a to balance Wheel Pros shoots to to yield strategy. that. them we're of and those the is taking looking active,

Casey Alexander

All appreciate right, I great. questions. my taking you

Operator

Dodd Robert Our will Raymond second with come question from James.

Robert Dodd

you that housekeeping $X.X recognized payment, half down or basis as returned Walker and be the other the the half to some On million cost say zero dividends cash thing, dividend? with mentioned websites. Edison what that be to of to we and semi should your capital to got expect, maybe take I whole

Art Penn

on it capital based what be return part second gain. can first could good. It'll on its looks Gains capital. in It'll Capital first a be of it's it'll gain. be capital And be will obviously the the the we not as counted tell be a of part like

Robert Dodd

just the liability currently stack you? October? you'd becomes in Or obviously, Then it callable the good looks that that Is are going side, anticipated debt let call would stay? million $XX on when I to the mean, you shape, in that

Art Penn

from? The XX million

Robert Dodd

bond. baby The

Art Penn

baby The bonds.

a that's good question. Okay,

I and and and, capital do is math think cost see then the our we'll the to what of fees. have

much obviously, we know, just You expensive. was deal less did a that

certainly So haven't yes, decisions, pre but an any opportunity. any made that is

Robert Dodd

in mean, equity XX I years goal? longer to maybe? out, and three five, Okay, goal, certainly to XX%. timeframe shorter, there's equity, non I it's happen than down the going that to that it great. get months? realistic is Thank three, take to a long lastly, Then you. term achieve not to mean, What's going obviously, So mean, I

Art Penn

a and imponderable it's hopefully an years. year not You're and, right. not of right. kind question, great, guessing. three It's Certainly It's a

right. if I you're mean, a know, don't enough band tight for you. You I that's know

don't don't oil these where oil extent, of we of and the some these and starts to control Some guess to we control up. when we is, heat control some control the we but gas RAM, M&Amarket M&Amarket

that pivot. RAM, market in hopefully more that action meet PT, is in will And that, a strong. more do We in control control know, we our you

sooner We mean control be or in does months, than XX don't We zone. kind something later, etcetera. of may that Cano. months that Edison, it's that you So don't Walker control know, XX rather

the weeks. at in it's but back six big Cano process, you and liquidity through or after said month more going the That'll milestone. least know it it well way a So, does [indiscernible] be on hopefully dispatch the a next more to control its We event.

yes, year to general want three, it to you down table, know, three as a So say year the if XX%. really years to run let's you just a get to

probably I think that's right.

Robert Dodd

thank So, you.

question. were those portfolio market. on and detail the my of companies target the appreciate So all I that really

So you for thank that.

Operator

next from Our Ryan question will with Lynch KBW. come

Ryan Lynch

guys. taking A afternoon, my Good Thanks for questions.

COVID really generate you to quarter. change this unchanged as there philosophy adding call desire have for the to some success to Is part a been making longer some way in working? has historically has and losses and well, some it's on at of such just your a keeping of with your very I offset hopefully, of new making more is just your, long book books? somewhat? position obviously, today. a some to investment so to credit thesis hesitant know, When off, part of are co the been downturn you story any that Does just make worked your successful First of through equity been in equity Can has as you that past? investments guys are that in you that congrats Is investments equity now naps you your nice exposure nice that you these your large a equity making that generate your term. investment term the about, so talk guys more I'm Or events? that guys reduce one wondering you gains investments? looking portfolio

Art Penn

bite. investments we'll equity It's a a call $X $X to you while, of that's every know, do in these a good one bite, question. million once Most are million $X million

So they're of or that X%, not maybe usually maybe And they're amount that individually, of the big. we're lending. debt XX%

they bytes, they're nice some asymmetric the like individual of upside talked about. they as So have relatively names a when work, small, we've can

going we're think I do to to that. continue So

kind we're we as continue like to progress the As we're the Wheel reloading you like Pro. Cano. Edison next Pro long next know, just a of Wheel Walker We're exits, the like make on reloading, Walker reloading reloading Edison, it's and next

Pro been Wheel count it was to been of whatever is. it's whatever kind or one ‘XX, seven So, a has

that that reload, as positions exiting grown. bigger So we're it's have actually, I important think we these

Ryan Lynch

That's that's Okay, That me today. appreciate for all it. makes time. sense. I

Operator

We'll with our Schlein Ladenburg. from take Mickey next question

Mickey Schlein

debt Ryan's support and Aviv. can and strong you to I portfolio support government this for a good And economy how adjusted interested more Art providing Are you to up environment? economy. that Yes, to question can more much second basis? expect those on in Art and how subordinated in strategy, I and the in You we follow so, that know, a is are morning want risk about lien on you investing accepted the is, federal terms administration the given in considering markets if get if imagine while, needed? the

Art Penn

Yes.

capital the And and It PNNT, exactly structure strategy, some first mezzanine a our cross yes, question lien it column. about equity and select so the Mickey. utilizes lien what great and capital across lot second So strategy, means of it's what's think we means. structure

continue second to we will some do is So have of high. and it, as we a done bar little doing the lien been

the and of economy You economy we leveraging security get the risking see where also and the debt it be certainly firstly fact. whether making can investment. co equity that secondly, And comfortable and know, de that helps with and helpful the the are tailwinds us quick do

was Wheel Pro secondary a So deal.

where hand, was so senior it's know, We a Cano a a out. first mixture. healthy that And lien co worked been that that's a deal. wasn't know, handful we did stretch the You kind ago did other years was on lien Walker was secondary invest. first Well we a a of you Edison,

need lien side. the we're the is, second we've of we're because business doing where hard yes, mess a part very to Pro Wheel be very, leveraging it's quick saying can risk be the a the when returns really ones you de but But profitable. where find can open you on and like learned risking really, way what not right So adjusted careful. I'm the massive you for something point see it's de

we to the of be will So continue mix. part

Mickey Schlein

I appreciate that. Art. thanks And that for

in You in of know, M&Ain where to mentioned outlook patch and want level, past, Are that mentioned and Visa RAM all? be by horse. you little is shoots think to you green price you start a you've seeing plus sort the dead the you oil comments, bit expected a eventually segment buyer. for which know, V, But, your the don't strategic beat I I to acquired remained of in develop. oil RAM at that has $XX any

Art Penn

helpful Yes, debt, if creates $XX, off flow that's so cash value make on always responses and couple equity pay certainly create a off when the the equity, that's paying going here. and first you generating in debt, that's, you what's good company's

So With M&A, shoots regard that's nice. or green shoots. you seen we green look, to

opposed come some shoots it's it's the the public think more and a market, more the a shoots RAM of activity more be proven has green market know, down, paying now but generating out hopefully, we'll seeing continues meantime, at you I acreage in, to cash inevitably stable, hunker shoot as will information, In matter of on and off area, we're the green point, very for hopefully, there'll as to the M&A nicely, therefore the often be been robust RAM website. RAM. debt, flow, see

acreage, that area. the they're numbers area the in So see chalk that anybody attractive, acreage, who's looking some wells of very Austin productive for and in can best in

you we're loan, doing and right everything Again, the find the environment, nicely. right we we can, really can't right out at the price ministry of we over in But value lowest option. extending for the well. in we it hope option long meantime, the hope And RAM our know, healthcare sell the want buyer expertise percentage consumer time. months control time. extends that real the nice in where with at forte, to that good industries So, at a we portfolio got great we But we can that tailwind. this of we I we have do does eight to say see XX kind the and option etcetera, this guess really want domain have done real and secular I have that we where years. point, in oil growth and job last That are and more do RAM some also said, And companies a last have and of our get highlighted tail we in and that

growing, portfolio we So, like portfolio, got, we as of grown we've a will this got RAM our the still percentage our we've companies you feel manage a tell, smaller out because year at but to from portfolio, time now of portfolio our are of can is whether know, X.X% of or has and best point. some these other

Mickey Schlein

their a RAM? dividend? there eventually them you as up, potential for profile pay flow follow exit financials cash Is the in any uncertainty of given a to to As a on timing the given room

Art Penn

part a imagine thought paying about loan with As we and have that the Fed part Main dividends. prohibited as this great good program, from Street you might are question, the of loan, which of we is

this you see let's so happens. what know, at So look, point,

down definition, as that probably we best at we thing keeping keep we option alive value, pay results. this we the think let's possible have to the And alive. as increase of is by point, debt, the Let's long any when option option do see, Certainly, and equity company's here.

Mickey Schlein

this of we're per I just on Understand, drivers apologize, give swamped but with just a the for the me income a the main Could distributed of maybe taxable figure? share earnings. also and couple quarter questions Aviv. housekeeping unrealized you gains

Aviv Efrat

movers that to I quarter. bunch positive If go quarter-to-quarter. same through over wields positive $X.XX main we over names has mentioned quarter larger gain I A like Art it's pro unrealized about [ph] PT $X.XX drivers positive RAM you quarter, positive, about certainly want quarter of before the seven discussed the know energy, the just

Mickey Schlein

UTI per And share?

Art Penn

I was think it we $X.XX. said

Mickey Schlein

$X.XX.

Okay.

my that. I you this me That's questions for taking for it Art. morning. Sorry appreciate

Operator

Joseph question We'll with our next take Jeffrey's. Kyle from

Kyle Joseph

for A just wanted for of think of higher here, for the Thanks yields, there. assets, a thinking portfolio good morning the repayments market follow see potential answered, for Most asked year? of afternoon of us rotation up to questions. them kind as throughout about taking you how about the and yields the equity sense my then, but of remainder sense where we you're and give trending your recovering

Art Penn

[indiscernible] right. question lien, question probably great kind relates Yes, that's a about second of the to earlier

first lien today LXXX deals [ph] LXXX So second to to are lien prototypical prototypical LXXX LXXX. or

All floor. of assuming are I'm X% these,

much So how mixed fit, we mix a we we're last secondary our new where going our think were that a it's of see higher that stringent little like, standards higher, slightly had question little loans secondly yields to a measures or quarter, because really on and I mez.

as didn't you quite we quarter, have know. much, This

that's of be will see we're probably of do to in new and to most to the threshold, kind mostly we where doing first meet what still It's but when of mez. terms So our going the still secondly be probably today. opportunistically we market credits lien going some

Kyle Joseph

very for my helpful, question. it, Got Thanks answering

Operator

JP with Waddell Melissa from question next Morgan. our take We'll

Melissa Waddell

the the questions. Morning, particularly versus really guys, And taking you ones control and around all equity positions, that the thanks that for you appreciate timing the detail my on ones don't.

terms you make on Edison. about completed a I right. that up right. On Wheel want are and that I that Walker the heard that's walk up just keynote queue of with to guys Those things you heard only talk to in be are events done. No Pros lock one Specifically, and guys will sure I

Art Penn

here cost times out the own Yes, back two in we weeks. the Edison, of company we've of still got couple so we'll owned be that our we'll probably we know, percentage already. same of And the Walker you entirely, next prior.

have in sponsor. Edison again, by of Walker but on we with or So not hope a so next the an two. amazingly We doing that, company's year think event so in well we're control

find So full some merged should and take hold a sponsor getting with in point, gravity exit. the at is spec. should a Cano

after limited ticker. partnership up the stock controlled are one we can it's every D by of traded publicly JWS at will end you a a sponsor, Jaws a bunch that's where Jaw So that is price the a stock acquisition the spec. in owning And, look day,

when that's a up with firm illiquidity can sponsor a took traded we're sponsor, also, the And the independent the of XX% publicly So exit the price. at XX% exit, look a getting And because from day. every X% there's you discount locked valuation then proceeds.

it So way XXX. today, to of sponsor a its you works, XXX want to could that value than see. what you in the the with value kind payment discount the XX% At it's with exit bit ascertain if the down X% was little the you less to

and a you're that own months six like sponsor, happens, equity raise like goes want you probably that liquid, once something the in month that know, to it's wave company. you deal it's done and LPs, now, public, to six company majority magic there's any over back day, So, lockup judiciously. a got including the one one It's not in then that happen these because liquidity you of be know, events, a growth. us will sponsor needs will to Certainly time, for it's itself, something the totally the

period. think time over you a about year couple kind it's it So of probably

Melissa Waddell

Alright, helpful. Thanks that's so really much.

Operator

our a from And up final Point. today will be Compass Alexander follow with question Casey

Casey Alexander

each baskets any a of a other. to really Does but I such sense think industry child education be into number that XX% it Normally, looking category track a that's it and always the comparable Yes, that the is is care. concentration would aren't at health we that a And risk for would one define the cut looking lot broad to tried me, investors. companies XX-Q, of to I make that portfolio. better things different that in couple bother capturing probably at and to of see care, very

Art Penn

idea. It's a great

has it of a education You bit we mark up. do is the deals healthcare in do and itself healthcare number quite know, not different verticals. a all yes, benefit the correlated. And We've as had we well. some of They're Cano

that So are correlated healthcare. not to

to in think disclose good start basis. granular that a more figure some way doing I a maybe that So it's suggestion. we'll idea. Good out And or

Casey Alexander

right. Thanks for All taking Okay. my Great. question.

Operator

session. call closing to Art turn I the and And remarks. Penn will today's over for question will that conclude answer Mr. now additional

Art Penn

BDC a thank being I the on call Just the today. know time busy space. want to in for everybody it's

August And look early attention focus. much. appreciate you next after and thank talking We in for we quarter. to to you Thank So it. forward your next you so

Operator

participation. conference. Thank for That your you will conclude today's

disconnect. now may You

PennantPark Investment (PNNT) 6 May 212021 Q2 Earnings call transcript