PennantPark Investment Corporation

PENNANTPARK INVESTMENT CORPORATION is a Business Development Company (BDC) that aims to generate both current income and capital appreciation while preserving capital. It achieves this by making debt and equity investments primarily in U.S. middle-market companies. These investments take the form of first lien secured debt, second lien secured debt, subordinated debt, and equity. The company believes U.S. middle-market companies offer attractive risk-reward due to limited capital availability. PENNANTPARK INVESTMENT CORPORATION seeks to build a diversified portfolio by investing approximately $10 million to $50 million of capital, on average, in the securities of middle-market companies. This investment size is expected to vary proportionately with the company's capital base. The term "middle-market" refers to companies with annual revenues between $50 million and $1 billion. The companies in which it invests are typically highly leveraged and, if rated, would likely receive a rating below investment grade (between BB and CCC under the Standard & Poor's system). Such securities are often called "leveraged loans," "high yield" securities, or "junk bonds" and carry higher risk compared to investment-grade debt. The company's debt investments generally have maturities ranging from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships, and other business entities operating across various industries and geographical regions.