We annotate PennantPark Investment’s conference call transcript following an encouraging quarter and examine what may lie ahead for this fast changing veteran BDC.
The major indices all moved up on Wednesday but the BDC sector slipped for reasons unclear. Besides Ares Capital, the two PennantPark BDCs reported strong results and a dividend increase to boot.
BDC investors are an indecisive bunch, pushing up prices sharply after last week’s decline. We discuss the principal winners on the day. Also on the docket: a new CFO for two BDCs and the post-facto capital structure at Great Elm Capital after a Baby Bond offering.
BDC sector prices dropped moderately on Tuesday, but remain close to their 52 week high. Also, a small BDC returns to the public unsecured debt market while another undertakes a recapitalization of a successful portfolio company.
The BDC Reporter provides a brief update on what we’ve been working on as sector prices have tumbled for three days in a row. We will be on vacation for a few days but will continue to publish several new annotations of BDC conference calls. .
BDC Fixed Income prices quietly reach a new record and PennantPark issues new unsecured debt that might – or might not – redeem its public Baby Bond.
BDC fixed income prices remained essentially unchanged but there were several notable news developments in the sector during the week.
We re-publish an article from the BDC Credit Reporter about PennantPark Investment’s largest portfolio company which has been underperforming for several years.