PennantPark Investment Corporation announced the sale of its equity investment in JF Intermediate, LLC for $67.5 million, resulting in a realized gain of $63.1 million.
The company increased the size of its multi-currency, senior secured credit facility from $500 million to $535 million, extended the maturity to 2030, and reduced pricing from SOFR plus 235 bps to SOFR plus 210 bps.
The transactions mark significant milestones for the company's equity rotation strategy and enhanced ability to serve middle-market clients while lowering borrowing costs.
Equity Investment Sale
Sold equity investment in JF Intermediate, LLC for $67.5 million with a realized gain of $63.1 million.
Credit Facility Upsizing
Increased credit facility size to $535 million with extended maturity to 2030 and reduced pricing from SOFR plus 235 bps to SOFR plus 210 bps.
Liquidity and Growth
Generated $67.5 million liquidity from investment sale, positioning for future growth and success in serving middle-market clients.
- The sale of the equity investment and the credit facility upsizing reflect the company's strategic focus on optimizing its portfolio and enhancing financial flexibility.
- By realizing a significant gain from the equity sale and improving the credit facility terms, PennantPark Investment Corporation strengthens its position to capitalize on future opportunities and drive growth.
- The transactions demonstrate the company's proactive approach to managing its investments and financing structure to create value for shareholders and maintain competitive advantages in the middle-market segment.
PennantPark Investment Corporation's recent transactions showcase a strategic shift towards maximizing returns and strengthening its financial position. The company's initiatives aim to drive growth, enhance shareholder value, and expand its capabilities to serve the middle-market segment effectively.