Company: PNNT
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001193125-25-293703
Chunk: 122

Company: PENNANTPARK INVESTMENT CORP
Filing Date: 2025-11-24
Form: 10-K
Item: Item 7A
Chunk 122
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We are subject to financial market risks, including changes in interest rates. As of September 30, 2025, our debt portfolio consisted of 91% variable-rate investments and 9% fixed-rate investments. The variable-rate loans are usually based on a SOFR (or an alternative risk-free floating interest rate index) rate and typically have durations of three months after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In regards to variable-rate instruments with a floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In contrast, our cost of funds, to the extent it is not fixed, will fluctuate with changes in interest rates since it has no floor.

Assuming that the most recent Consolidated Statements of Assets and Liabilities was to remain constant, and no actions were taken to alter the interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

     Change in Interest Rates
      
     Change in Interest Income, Net of Interest Expense (in thousands)

     Change in Interest Income, Net of Interest Expense Per Share

     Down 3%
      
     $
     (9,368
     )
      
     $
     (0.14
     )

     Down 2%

     (6,246
     )

     (0.10
     )

     Down 1%

     (3,123
     )

     (0.05
     )

     Up 1%

     3,123

     0.05

     Up 2%

     6,246

     0.10

     Up 3%

     9,368

     0.14