Company: PNNT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-017048
Chunk: 197

Company: PENNANTPARK INVESTMENT CORP
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in an earnings before interest, taxes, depreciation and amortization ("EBITDA"), multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA multiple will have the opposite effect. Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes: 

        Asset Category ($ in thousands)
         
        Fair value at December 31, 2024

        Valuation Technique
         
        Unobservable Input
         
        Range of Input(Weighted Average) (1)

        First lien
         
        $
        4,461

        Market Comparable
         
        Broker/Dealer bids or quotes
         
        N/A

        First lien

        542,520

        Market Comparable
         
        Market yield
         
        6.5% - 21.0% (10.5%)

        First lien

        28,020

        Enterprise Market Value
         
        EBITDA multiple
         
        8.0x - 8.0x (8.0x)

        Second lien

        46,632

        Market Comparable
         
        Market yield
         
        12.5% - 18.4% (13.5%)

        Second lien

        3,377

        Market Comparable
         
        Broker/Dealer bids or quotes
         
        N/A

        Subordinated debt / corporate notes

        206,108

        Market Comparable
         
        Market yield
         
        5.3% - 23.2% (13.8%)

        Equity

        258,351

        Enterprise Market Value
         
        EBITDA multiple
         
        1.8x - 19.0x (9.8x)

        Total