Company: PNNT
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001193125-25-293703
Chunk: 51

Company: PENNANTPARK INVESTMENT CORP
Filing Date: 2025-11-24
Form: 10-K
Item: Item 1C
Chunk 51
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 impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 - 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect a material impact to our consolidated financial statements.  Item 7A.	Quantitative and Qualitative Disclosures About Market RiskWe 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