PennantPark Floating Rate Capital (NYSE:PFLT) Q4 2023 Earnings Conference Call November 16, 2023 9:00 AM ET

Company Participants

Art Penn - Founder, Chairman & CEO

Richard Allorto - CFO

Conference Call Participants

Ryan Lynch - KBW

Mickey Schleien - Ladenburg

Maxwell Fritscher - Truist Securities

Operator

Good morning, and welcome to the PennantPark Floating Rate Capital's Fourth Fiscal Quarter 2023 Earnings Conference Call. Today's conference is being recorded. At this time, all participants have been placed in a listen-only mode. The call will open with a question-and-answer session following the speakers' remarks. [Operator Instructions]

It is now my pleasure to turn the call over to Mr. Art Penn, Chairman and Chief Executive Officer 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 2023 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 include 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 filing 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 the current market environment for middle-market lending, how we fared in the quarter ended September 30, how the portfolio is positioned for the upcoming quarters, a detailed review of the financials, and then open it up for Q&A.

For the quarter ended September 30, GAAP and core net investment income was $0.32 per share. GAAP NAV increased 1.6% to $11.13 per share from $10.96 per share. Adjusted NAV excluding the mark-to-market adjustments on our liabilities increased to $11.13 per share or 1.2%. The increase in NAV for the quarter was due primarily to positive valuation adjustments on both debt and equity investments. With a debt portfolio that is 100% floating rate, we continue to benefit from the current base rate environment. As of September 30, our weighted average yield to maturity was 12.6%, which is up from 12.4% last quarter and 10% last year.