PennantPark Floating Rate Capital (NYSE:PFLT) Q4 2022 Earnings Conference Call November 17, 2022 9:00 AM ET

Company Participants

Art Penn - Founder, Chairman & Chief Executive Officer

Richard Allorto - Chief Financial Officer

Conference Call Participants

Paul Johnson - KBW

Mickey Schleien - Ladenburg Thalmann

Operator

Good morning and welcome to the PennantPark Floating Rate Capital's Fourth Fiscal Quarter 2022 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions]

It is now my pleasure to turn the call over to Mr. Art Penn, Chairman and Chief Executive of PennantPark Floating Rate Capital. Mr. Penn, you may begin your conference.

Art Penn

Thank you and good morning, everyone. I'd like to welcome you to PennantPark Floating Rate Capital's fourth fiscal quarter 2022 earnings conference call. I'm joined today by Rick Allorto, our Chief Financial Officer. Rick, please start off by disclosing some general conference call information and includes a discussion about forward-looking statements.

Richard Allorto

Thank you, Art. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of PennantPark Floating Rate Capital and that any unauthorized broadcast of this call in any form is strictly prohibited. An audio replay of the call will be available on our website.

I'd also like to call your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these projections. We do not undertake to update our forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at pennantpark.com or call us at 212-905-1000.

At this time, I'd like to turn the call back to our Chairman and Chief Executive Officer, Art Penn.

Art Penn

Thanks, Rick. We're going to spend a few minutes discussing how we fared in the quarter ended September 30, how the portfolio is positioned for upcoming quarters, our capital structure and liquidity, a detailed review of the financials, then open it up for Q&A.

For the quarter ended September 30, our core net investment income was $0.30 per share which includes $0.01 of other income and excludes $0.01 per share of onetime upfront financing costs from the $66 million increase in our revolving credit facility. The credit quality of the portfolio remains solid and we did not have any new nonaccrual investments. As of September 30, we had only 2 nonaccruals out of 125 different names in PFLT. This represents only 0.9% of the portfolio at cost and 0.01% at market value. Our credit statistics remain among the most conservative in the industry with an average debt-to-EBITDA on our underlying portfolio of 4.7x and interest coverage of 3x.