PennantPark Investment Corporation amended its multi-currency, senior secured revolving credit facility with certain lenders and SunTrust Bank acting as administrative agent.
The facility extends the term of the revolving period from May 25, 2021 to September 4, 2023 and the final maturity date from May 25, 2022 to September 4, 2024, for $420 million out of the total $475 million commitments.
The facility also amends the covenants in the credit facility, in combination with PennantPark’s other existing debt sources, enabling us to utilize the flexibility and incremental leverage provided by the Small Business Credit Availability Act (SBCAA) in the future.
The credit facility for the $420 million of commitments – which includes the increased commitment size of $30 million – has a five-year term with a four year reinvestment period during which pricing remains at LIBOR plus 2.25%.
The key terms are such that, in combination with PennantPark’s existing debt sources, the company will be able to operate within the asset coverage covenant that the SBCAA reduced from 200% to 150%.
“We are pleased with the extension of our credit facility, and believe that maintaining our cost and amending covenants will give PennantPark the flexibility to obtain the benefits provided by the SBCAA. We also believe this will result in enhanced profitability while maintaining our conservative and prudent debt profile,” said Art Penn, chairman and chief executive officer.
“Additionally, we are appreciative of the support from our existing lending partners and pleased to have added two new lending partners to the facility. Their support highlights the confidence they have in our excellent long term track record.”
PennantPark Investment Corporation is a business development company which principally invests in U.S. middle-market private companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments.
