Investments

12 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

4. INVESTMENTS

Purchases of investments, including PIK interest, for the years ended September 30, 2024, 2023, and 2022 totaled $1,411.2 million, $325.8 million, and $609.2 million, respectively. Sales and repayments of investments for the same years totaled $514.1 million, $399.1 million, and $495.2 million, respectively.

Investments and cash and cash equivalents consisted of the following (in thousands):


	September 30, 2024				September 30, 2023
Investment Classification	Cost		Fair Value		Cost		Fair Value
First lien	$	1,521,496	$	1,509,048	$	708,452	$	696,078
First lien in PSSL		237,650		237,650		210,088		210,088
Second lien		—		—		1,113		149
Subordinated Debt		2,632		2,693		—		—
Equity		131,312		177,635		83,188		109,978
Equity interests in PSSL		101,850		56,478		90,038		50,881
Total investments		1,994,940		1,983,504		1,092,878		1,067,174
Cash and cash equivalents		112,046		112,050		100,555		100,555
Total investments and cash and cash equivalents	$	2,106,986	$	2,095,554	$	1,193,433	$	1,167,729

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries:


Industry Classification	September 30, 2024 (1)			September 30, 2023 (1)
Professional Services		8	%		7	%
Aerospace and Defense		7			6
Healthcare Providers and Services		6			9
IT Services		6			4
Personal Products		6			8
Diversified Consumer Services		5			3
Healthcare Technology		5			4
Media		5			9
Leisure Products		4			1
Construction & Engineering		4			1
Distributors		4			3
Electronic Equipment, Instruments, and Components		4			3
Commercial Services & Supplies		4			4
High Tech Industries		4			5
Media: Diversified and Production		4			6
Business Services		3			2
Auto Components		2			0
Healthcare, Education and Childcare		2			0
Construction and Building		1			3
Internet Software and Services		1			1
Capital Equipment		1			2
Chemicals, Plastics and Rubber		1			2
Diversified Financial Services		1			1
Marketing Services		1			0
Healthcare Equipment and Supplies		1			1
Building Products		1			0
Hotels, Restaurants and Leisure		1			2
Consumer Services		1			2
Automobiles		1			2
Food Products		1			1
Metals and Mining		1			0
Financial Services		1			1
Specialty Retail		1			0
All Other		2		7
Total		100	%		100	%

(1)

Excludes investments in PSSL.

PennantPark Senior Secured Loan Fund I LLC

In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. As of September 30, 2024 and 2023, PSSL had total assets of $988.1 million and $869.4 million, respectively, and its investment portfolio consisted of investments in 109 and 105 portfolio companies, respectively. As of September 30, 2024, at fair value, the largest investment in a single portfolio company in PSSL was $21.3 million and the five largest investments totaled $97.3 million. As of September 30, 2023, at fair value, the largest investment in a single portfolio company in PSSL was $18.5 million and the five largest investments totaled $83.4 million. PSSL invests in portfolio companies in the same industries in which we may directly invest.

We and Kemper provide capital to PSSL in the form of first lien secured debt and equity interests. As of September 30, 2024 and 2023, we and Kemper owned 87.5% and 12.5%, respectively, of each of the outstanding first lien secured debt and equity interests. As of the same dates, our investment in PSSL consisted of first lien secured debt of $237.7 million (zero remaining unfunded) and $210.1 million (additional $27.6 million unfunded), respectively, and equity interests of $101.9 million (zero remaining unfunded) and $90.0 million (additional $11.8 million unfunded), respectively.

We and Kemper each appointed two members to PSSL’s four-person board of directors and investment committee. All material decisions with respect to PSSL, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors or investment committee. Quorum is defined as (i) the presence of two members of the board of directors or investment committee, provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors or investment committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors or investment committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each member.

In August 2023 PSSL entered into a $260.0 million (decreased from $325.0 million) senior secured revolving credit facility which bears interest at SOFR plus 260 basis points (including a spread adjustment) with Ally Bank through its wholly-owned subsidiary, PennantPark Senior Secured Loan Facility LLC II, or PSSL Subsidiary II, subject to leverage and borrowing base restrictions. On January 2024, the maturity was extended to 2029 and the interest change to SOFR plus 280 basis points.

In January 2021, PSSL completed a $300.7 million debt securitization in the form of a collateralized loan obligation, or the “2032 Asset-Backed Debt”. The 2032 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2032 Asset-Backed Debt is scheduled to mature in January 2032. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO II, Ltd. of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly

owned subsidiaries and us, PennantPark CLO II, Ltd. transferred to PSSL 100% of the Preferred Shares of PennantPark CLO II, Ltd. and 100% of the Class E Notes issued by PennantPark CLO II, Ltd.

In May 2024, PSSL completed the refinancing of the 2032 Asset-Backed Debt through a $300.7 million debt securitization in the form of a collateralized loan obligation, or the "2036 PSSL Asset-Backed Debt". The 2036 PSSL Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned subsidiary of PSSL, consisting primarily of middle market loans and participation interest in middle market loans. The 2036 PSSL Asset-Backed Debt is scheduled to mature in April 2036. PSSL retained the preferred shares and Class E-R Notes through a consolidated subsidiary.

In April 2023, PSSL completed a $297.8 million debt securitization in the form of a collateralized loan obligation, or the “2035 Asset-Backed Debt”. The 2035 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO VI, LLC, a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2035 Asset-Backed Debt is scheduled to mature in April 2035. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO VI, LLC of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO VI, LLC transferred to PSSL 100% of the Preferred Shares of CLO VI, LLC

Below is a summary of PSSL’s portfolio at fair value ($ in thousands):


	September 30, 2024			September 30, 2023
Total investments	$	913,281		$	785,859
Weighted average cost yield on income producing investments		11.4	%		12.1	%
Number of portfolio companies in PSSL		109			105
Largest portfolio company investment	$	21,274		$	18,463
Total of five largest portfolio company investments	$	97,292		$	83,365

Below is a listing of PSSL’s individual investments as of September 30, 2024 (par and $ in thousands):


Issuer Name (7)	Maturity	Industry	Current Coupon	Basis Point Spread Above Index (1)	Par or Number of Shares		Cost		Fair Value(2)
First Lien Secured Debt - 1,404.5%
A1 Garage Merger Sub, LLC	12/22/2028	Commercial Services & Supplies	10.95%	SOFR+610		2,903	$	2,855	$	2,903
ACP Avenu Buyer, LLC	10/2/2029	Business Services	10.58%	SOFR+525		9,925		9,771		9,602
ACP Falcon Buyer, Inc.	8/1/2029	Business Services	10.83%	SOFR+550		18,762		18,434		18,837
Ad.net Acquisition, LLC	5/7/2026	Media	11.28%	SOFR+626		8,708		8,658		8,708
Aeronix, Inc	12/18/2028	Aerospace and Defense	9.85%	SOFR+525		15,880		15,665		15,880
Alpine Acquisition Corp II	11/30/2026	Containers and Packaging	11.30%	SOFR+610		12,722		12,481		12,213
Anteriad, LLC (f/k/a MeritDirect, LLC)	6/30/2026	Media: Advertising, Printing & Publishing	10.50%	SOFR+590		4,717		4,613		4,717
Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan	6/30/2026	Media: Advertising, Printing & Publishing	10.50%	SOFR+590		4,625		4,584		4,625
Applied Technical Services, LLC	12/29/2026	Commercial Services & Supplies	10.50%	SOFR+590		11,155		11,058		10,988
Arcfield Acquisition Corp.	8/3/2029	Aerospace and Defense	11.56%	SOFR+625		11,115		10,967		11,059
Beacon Behavioral Services, LLC	6/21/2029	Healthcare and Pharmaceuticals	9.85%	SOFR+525		9,975		9,836		9,825
Beta Plus Technologies, Inc.	7/1/2029	Business Services	10.35%	SOFR+575		4,900		4,828		4,753
Big Top Holdings, LLC	2/28/2030	Business Services	11.18%	SOFR+625		15,423		15,167		15,423
BioDerm, Inc.	1/31/2028	Healthcare and Pharmaceuticals	11.70%	SOFR+650		8,888		8,797		8,776
Blackhawk Industrial Distribution, Inc.	9/17/2026	Distributors	11.00%	SOFR+640		14,974		14,779		14,718
BlueHalo Financing Holdings, LLC	10/31/2025	Aerospace and Defense	10.60%	SOFR+600		5,546		5,523		5,435
Broder Bros., Co.	12/4/2025	Consumer Products	10.97%	SOFR+611		2,274		2,274		2,274
Burgess Point Purchaser Corporation	9/26/2029	Automotive	10.20%	SOFR+535		442		417		416
By Light Professional IT Services, LLC	5/16/2025	High Tech Industries	12.18%	SOFR+698		13,084		13,059		13,084
Carnegie Dartlet, LLC	2/7/2030	Media: Advertising, Printing & Publishing	10.60%	SOFR+550		15,243		15,025		15,015
Cartessa Aesthetics, LLC	6/14/2028	Distributors	10.35%	SOFR+575		9,539		9,431		9,539
CF512, Inc.	8/20/2026	Media	11.21%	SOFR+619		6,751		6,682		6,649
Confluent Health, LLC	10/28/2028	Healthcare and Pharmaceuticals	8.96%	SOFR+400		6,708		6,506		6,540
Connatix Buyer, Inc.	7/13/2027	Media	10.53%	SOFR+561		3,775		3,734		3,775
Crane 1 Services, Inc.	8/16/2027	Commercial Services & Supplies	10.71%	SOFR+586		2,068		2,051		2,052
Dr. Squatch, LLC	8/31/2027	Personal Products	9.95%	SOFR+535		14,562		14,398		14,562
DRI Holding Inc.	12/21/2028	Media	10.20%	SOFR+535		2,600		2,420		2,509
DRS Holdings III, Inc.	11/3/2025	Consumer Goods: Durable	11.20%	SOFR+635		13,805		13,788		13,694
Dynata, LLC - First Out Term Loan (6)	7/15/2028	Diversified Consumer Services	10.38%	SOFR+526		1,360		1,264		1,358
Dynata, LLC - Last Out Term Loan	10/15/2028	Diversified Consumer Services	10.88%	SOFR+576		8,439		8,439		7,769
ECL Entertainment, LLC	8/31/2030	Hotel, Gaming and Leisure	8.85%	SOFR+400		4,963		4,894		4,973
EDS Buyer, LLC	1/10/2029	Electronic Equipment, Instruments, and Components	10.35%	SOFR+575		8,865		8,763		8,732
Exigo Intermediate II, LLC	3/15/2027	Software	11.20%	SOFR+635		12,546		12,418		12,484
ETE Intermediate II, LLC	5/29/2029	Diversified Consumer Services	11.56%	SOFR+650		12,249		12,032		12,249
Eval Home Solutions Intermediate, LLC	5/10/2030	Healthcare and Pharmaceuticals	10.60%	SOFR+575		9,268		9,132		9,176
Fairbanks More Defense	6/17/2028	Aerospace and Defense	9.65%	SOFR+450		10,117		10,071		10,128
Global Holdings InterCo LLC	3/16/2026	Diversified Financial Services	11.43%	SOFR+615		3,696		3,689		3,511
Graffiti Buyer, Inc.	8/10/2027	Trading Companies & Distributors	10.45%	SOFR+560		3,723		3,686		3,685
Hancock Roofing and Construction L.L.C.	12/31/2026	Insurance	10.20%	SOFR+560		2,153		2,131		2,110
HEC Purchaser Corp	6/17/2029	Healthcare and Pharmaceuticals	9.75%	SOFR+550		3,691		3,648		3,665
Hills Distribution, Inc	11/8/2029	Business Services	11.11%	SOFR+600		8,957		8,835		8,868
HW Holdco, LLC	5/10/2026	Media	11.18%	SOFR+590		3,486		3,475		3,486
Imagine Acquisitionco, LLC	11/15/2027	Software	10.20%	SOFR+510		9,154		9,018		9,108
Infinity Home Services Holdco, Inc.	12/28/2028	Commercial Services & Supplies	11.45%	SOFR+685		6,029		5,932		6,089
Integrative Nutrition, LLC	1/31/2025	Diversified Consumer Services	11.75%	SOFR+715		11,287		11,274		9,707
			(PIK 2.25%)
Inventus Power, Inc.	6/30/2025	Consumer Goods: Durable	12.46%	SOFR+761		8,164		8,094		8,041
ITI Holdings, Inc.	3/3/2028	IT Services	10.58%	SOFR+565		3,900		3,855		3,900
Kinetic Purchaser, LLC	11/10/2027	Personal Products	10.75%	SOFR+615		13,492		13,289		13,492
Lash OpCo, LLC	2/18/2027	Personal Products	12.94%	SOFR+785		14,731		14,539		14,584
			(PIK 5.10%)
LAV Gear Holdings, Inc. (6)	10/31/2025	Capital Equipment	11.42%	SOFR+643		12,125		12,102		11,907
LAV Gear Holdings, Inc. - Term Loan Incremental	10/31/2025	Capital Equipment	11.64%	SOFR+640		2,861		2,856		2,810
Lightspeed Buyer Inc.	2/3/2026	Healthcare Providers and Services	10.15%	SOFR+535		11,330		11,258		11,330
LJ Avalon Holdings, LLC	1/31/2030	Environmental Industries	10.48%	SOFR+525		2,559		2,516		2,559
Loving Tan Intermediate II, Inc.	5/31/2028	Consumer Products	11.10%	SOFR+650		7,407		7,288		7,296
Lucky Bucks, LLC - First-Out Term Loan (6)	10/2/2028	Hotel, Gaming and Leisure	12.77%	SOFR+765		259		259		259
Lucky Bucks, LLC - Last-Out Term Loan	10/2/2029	Hotel, Gaming and Leisure	12.77%	SOFR+765		518		518		518
MAG DS Corp	4/1/2027	Aerospace and Defense	10.20%	SOFR+550		2,218		2,143		2,085
Magenta Buyer, LLC - First-Out Term Loan	7/31/2028	Software	12.13%	SOFR+701		357		357		337
Magenta Buyer, LLC - Second-Out Term Loan	7/31/2028	Software	12.38%	SOFR+801		452		452		310
Magenta Buyer, LLC - Third-Out Term Loan	7/31/2028	Software	11.63%	SOFR+726		1,675		1,675		490
Marketplace Events, LLC - Super Priority First Lien Term Loan (6)	9/30/2025	Media: Diversified and Production	10.38%	SOFR+540		1,845		1,845		1,845
Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan (3)(6)	9/30/2025	Media: Diversified and Production	0.00%			564		-		-
Marketplace Events, LLC (6)	9/30/2026	Media: Diversified and Production	10.53%	SOFR+525		4,837		4,068		4,837
MBS Holdings, Inc.	4/16/2027	Internet Software and Services	10.59%	SOFR+585		7,256		7,183		7,256
MBS Holdings, Inc. (New Issue) - Incremental	4/16/2027	Internet Software and Services	11.34%	SOFR+660		523		514		528
MBS Holdings, Inc. (New Issue) - Second Incremental	4/16/2027	Internet Software and Services	11.09%	SOFR+635		551		543		554
MDI Buyer, Inc.	7/25/2028	Chemicals, Plastics and Rubber	10.60%	SOFR+575		4,900		4,829		4,851
MDI Buyer, Inc. - Incremental	7/25/2028	Chemicals, Plastics and Rubber	11.25%	SOFR+600		1,416		1,395		1,409
Meadowlark Acquirer, LLC	12/10/2027	Professional Services	10.50%	SOFR+590		2,348		2,319		2,289
Medina Health, LLC	10/20/2028	Healthcare and Pharmaceuticals	10.85%	SOFR+625		19,199		18,911		19,199
Megawatt Acquisitionco, Inc	3/1/2030	Electronic Equipment, Instruments, and Components	9.85%	SOFR+525		15,671		15,453		14,794
Mission Critical Electronics, Inc.	3/31/2025	Capital Equipment	10.50%	SOFR+590		5,551		5,551		5,551
MOREGroup Holdings, Inc	1/16/2030	Business Services	10.35%	SOFR+575		13,067		12,891		12,871
Municipal Emergency Services, Inc.	9/28/2027	Distributors	9.75%	SOFR+515		3,395		3,355		3,395


Issuer Name (7)	Maturity	Industry	Current Coupon	Basis Point Spread Above Index (1)	Par or Number of Shares		Cost		Fair Value(2)
NBH Group LLC	8/19/2026	Healthcare, Education & Childcare	11.05%	SOFR+585		10,602		10,504		10,284
NORA Acquisition, LLC	8/31/2029	Healthcare Providers and Services	10.95%	SOFR+635		21,274		20,913		21,274
One Stop Mailing, LLC	5/7/2027	Air Freight and Logistics	11.21%	SOFR+636		15,682		15,480		15,682
ORL Acquisitions, Inc.	9/3/2027	Consumer Finance	14.00%	SOFR+940		2,140		2,124		1,819
			(PIK 7.50%)
Output Services Group, Inc - First-Out Term Loan	11/30/2028	Business Services	13.75%	SOFR+843		821		821		821
Output Services Group, Inc - Last-Out Term Loan	5/30/2028	Business Services	12.00%	SOFR+668		1,667		1,667		1,667
Owl Acquisition, LLC	2/4/2028	Professional Services	10.20%	SOFR+535		3,893		3,842		3,825
Ox Two, LLC	5/18/2026	Construction and Building	11.12%	SOFR+651		4,307		4,282		4,307
Pacific Purchaser, LLC	9/30/2028	Business Services	11.51%	SOFR+625		11,938		11,745		11,914
PCS Midco, Inc	3/1/2030	Diversified Consumer Services	10.81%	SOFR+575		3,871		3,818		3,871
PH Beauty Holdings III, Inc.	9/29/2025	Wholesale	10.17%	SOFR+543		9,391		9,289		9,302
PL Acquisitionco, LLC	11/9/2027	Textiles, Apparel and Luxury Goods	11.99%	SOFR+725		7,816		7,733		6,253
			(PIK 4.00%)
Pragmatic Institute, LLC (5)	7/6/2028	Education	12.35%	SOFR+750		11,855		11,480		7,261
			(PIK 12.35%)
Quantic Electronics, LLC	11/19/2026	Aerospace and Defense	10.95%	SOFR+635		2,775		2,758		2,761
Rancho Health MSO, Inc.	12/18/2025	Healthcare Providers and Services	10.85%	SOFR+560		1,016		1,016		1,016
Reception Purchaser, LLC	2/28/2028	Air Freight and Logistics	10.75%	SOFR+615		4,875		4,828		3,656
Recteq, LLC	1/29/2026	Leisure Products	11.75%	SOFR+715		4,825		4,796		4,777
RTIC Subsidiary Holdings, LLC	5/3/2029	Consumer Goods: Durable	10.35%	SOFR+575		9,975		9,830		9,776
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	6/15/2029	High Tech Industries	10.35%	SOFR+575		4,336		4,266		4,282
Safe Haven Defense US, LLC	5/23/2029	Construction and Building	9.85%	SOFR+525		9,973		9,830		9,873
Sales Benchmark Index LLC	1/3/2025	Professional Services	10.80%	SOFR+620		9,268		9,260		9,268
Sargent & Greenleaf Inc.	12/20/2024	Wholesale	12.45%	SOFR+760		4,916		4,906		4,916
			(PIK 1.00%)
Schlesinger Global, Inc.	7/14/2025	Business Services	13.20%	SOFR+835		12,388		12,387		12,078
			(PIK 0.50%)
Seaway Buyer, LLC	6/13/2029	Chemicals, Plastics and Rubber	10.75%	SOFR+615		4,900		4,842		4,729
Sigma Defense Systems, LLC	12/18/2027	Aerospace and Defense	11.50%	SOFR+690		18,620		18,370		18,434
Simplicity Financial Marketing Group Holdings, Inc	12/2/2026	Diversified Financial Services	11.00%	SOFR+640		11,359		11,206		11,472
Skopima Consilio Parent, LLC	5/17/2028	Business Services	9.46%	SOFR+461		1,290		1,268		1,289
Smartronix, LLC	11/23/2028	Aerospace and Defense	10.35%	SOFR+610		4,863		4,800		4,863
Smile Brands Inc.	10/14/2025	Healthcare and Pharmaceuticals	10.20%	SOFR+550		11,887		11,860		10,520
			(PIK 1.50%)
Solutionreach, Inc.	7/17/2025	Healthcare and Pharmaceuticals	12.40%	SOFR+715		4,582		4,560		4,582
Spendmend Holdings LLC	3/1/2028	Healthcare Technology	10.25%	SOFR+565		4,070		4,017		4,070
Summit Behavioral Healthcare, LLC	11/24/2028	Healthcare and Pharmaceuticals	9.31%	SOFR+425		1,777		1,700		1,653
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	8/16/2027	Aerospace and Defense	10.26%	SOFR+500		14,588		14,445		14,558
TCG 3.0 Jogger Acquisitionco	1/23/2029	Media	11.10%	SOFR+650		19,626		19,312		19,430
Team Services Group, LLC	11/24/2028	Healthcare and Pharmaceuticals	9.95%	SOFR+500		343		332		338
Teneo Holdings, LLC	3/13/2031	Business Services	9.60%	SOFR+475		5,473		5,418		5,490
The Bluebird Group LLC	7/27/2026	Professional Services	11.25%	SOFR+665		8,521		8,427		8,521
The Vertex Companies, LLC	8/31/2027	Construction and Engineering	10.95%	SOFR+610		7,636		7,538		7,639
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025	Consumer Goods: Non-Durable	10.84%	SOFR+565		16,524		16,394		16,524
Transgo, LLC	12/29/2028	Automotive	10.60%	SOFR+575		18,552		18,293		18,552
TWS Acquisition Corporation	6/16/2025	Diversified Consumer Services	11.33%	SOFR+640		943		943		943
Tyto Athene, LLC	4/1/2028	IT Services	10.23%	SOFR+490		14,670		14,585		14,376
Urology Management Holdings, Inc.	6/15/2026	Healthcare and Pharmaceuticals	10.76%	SOFR+550		6,823		6,742		6,755
Walker Edison Furniture Company LLC (4)(6)	3/1/2029	Wholesale	0.00%			5,441		4,986		490
Walker Edison Furniture Company LLC - Junior Revolving Credit Facility (4)(6)	3/1/2029	Wholesale	0.00%			1,667		1,667		1,667
Walker Edison Furniture Company LLC - DDTL - Unfunded (3)(4)(6)	3/1/2029	Wholesale	0.00%			83		-		(76	)
Watchtower Buyer, LLC	12/3/2029	Diversified Consumer Services	10.60%	SOFR+600		12,189		12,007		12,067
Wildcat Buyerco, Inc.	2/27/2027	Electronic Equipment, Instruments, and Components	10.60%	SOFR+575		16,014		15,916		16,014
Zips Car Wash, LLC	12/31/2024	Automobiles	12.46%	SOFR+740		16,736		16,722		15,983
			(PIK 1.50%)

Total First Lien Secured Debt								920,485		906,532

Equity Securities - 10.5%
New Insight Holdings, Inc.		Diversified Consumer Services				116		2,031		2,031
Lucky Bucks, LLC		Hotel, Gaming and Leisure				74		2,062		904
New MPE Holdings, LLC		Media: Diversified and Production				-		-		2,710
Output Services Group, Inc		Business Services				126		1,012		1,104
Walker Edison Furniture - Common Equity		Wholesale				36		3,393		-
Total Equity Securities								8,498		6,749
Total Investments - 1,415.0%								928,983		913,281
Cash and Cash Equivalents - 106.0%
BlackRock Federal FD Institutional 30								68,429		68,429
Total Cash and Cash Equivalents								68,429		68,429
Total Investments and Cash Equivalents —1,521.0%							$	997,412	$	981,710
Liabilities in Excess of Other Assets — (1,421.0)%										(917,163	)
Members' Equity—100.0%									$	64,547

(1)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR". The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.

(2)

Valued based on PSSL’s accounting policy.

(3)

Represents the purchase of a security with a delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(4)

Non-accrual security.

(5)

Partial PIK non-accrual security.

(6)

The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VI, LLC, or, 3) securing the 2036 Asset-Backed Debt and held through PennantPark CLO II, Ltd.

(7)

All investments are in US Companies unless noted otherwise.

Below is a listing of PSSL’s individual investments as of September 30, 2023 (Par and $ in thousands):


Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index (1)	Par		Cost		Fair Value (2)
First Lien Secured Debt - 1,347.5%
A1 Garage Merger Sub, LLC	12/22/2028	Commercial Services & Supplies		11.84	%	SOFR+660		2,940	$	2,886	$	2,925
Ad.net Acquisition, LLC	5/7/2026	Media		11.65	%	SOFR+626		8,798		8,723		8,754
Alpine Acquisition Corp II	11/30/2026	Containers and Packaging		11.24	%	SOFR+600		12,852		12,535		12,338
Anteriad, LLC (f/k/a MeritDirect, LLC)	5/23/2024	Media: Advertising, Printing & Publishing		11.04	%	SOFR+550		5,001		4,971		4,913
Anteriad Holdings Inc (fka MeritDirect) March 2023	5/23/2024	Media: Advertising, Printing & Publishing		12.04	%	SOFR+650		4,875		4,817		4,814
Any Hour Services	7/21/2027	Professional Services		11.59	%	SOFR+585		7,510		7,348		7,360
Apex Service Partners, LLC	7/31/2025	Diversified Consumer Services		10.52	%	SOFR+525		1,002		1,002		1,000
Apex Service Partners, LLC Term Loan B	7/31/2025	Diversified Consumer Services		11.04	%	SOFR+550		2,187		2,187		2,181
Apex Service Partners, LLC Term Loan C	7/31/2025	Diversified Consumer Services		10.69	%	SOFR+525		11,013		10,972		10,985
Applied Technical Services, LLC	12/29/2026	Commercial Services & Supplies		11.54	%	SOFR+615		9,579		9,475		9,387
Applied Technical Services, LLC - DDTL Unfunded (3)	12/29/2026	Commercial Services & Supplies						194		-		(2	)
Arcfield Acquisition Corp.	8/3/2029	Aerospace and Defense		11.62	%	SOFR+625		9,218		9,093		9,126
Beta Plus Technologies, Inc.	7/1/2029	Business Services		11.14	%	SOFR+575		4,950		4,863		4,604
BioDerm, Inc.	1/31/2028	Healthcare and Pharmaceuticals		11.83	%	SOFR+650		8,978		8,874		8,933
Blackhawk Industrial Distribution, Inc.	9/17/2026	Distributors		11.79	%	SOFR+640		15,132		14,928		14,905
Broder Bros., Co.	12/4/2025	Consumer Products		11.50	%	SOFR+626		2,349		2,349		2,349
Burgess Point Purchaser Corporation	9/26/2029	Automotive		10.67	%	SOFR+525		447		418		420
By Light Professional IT Services, LLC	5/16/2025	High Tech Industries		12.43	%	SOFR+688		13,821		13,778		13,579
Cadence Aerospace, LLC	11/14/2023	Aerospace and Defense		12.07	%	SOFR+665		4,011		4,010		4,011
			(PIK 2.00%)
Cartessa Aesthetics, LLC	6/14/2028	Distributors		11.39	%	SOFR+600		9,636		9,509		9,636
CF512, Inc.	8/20/2026	Media		11.60	%	SOFR+619		6,820		6,722		6,684
CHA Holdings, Inc.	4/10/2025	Construction and Engineering		10.15	%	SOFR+476		5,499		5,455		5,499
Challenger Performance Optimization, Inc.	8/31/2024	Business Services		12.18	%	SOFR+675		9,232		9,201		8,955
			(PIK 1.00%)
Confluent Health, LLC	10/28/2028	Healthcare and Pharmaceuticals		9.32	%	SOFR+400		6,797		6,559		6,445
Connatix Buyer, Inc.	7/13/2027	Media		11.16	%	SOFR+576		3,815		3,762		3,681
Crane 1 Services, Inc.	8/16/2027	Commercial Services & Supplies		10.90	%	SOFR+551		2,089		2,067		2,079
Dr. Squatch, LLC	8/31/2027	Personal Products		11.24	%	SOFR+585		14,712		14,511		14,712
DRI Holding Inc.	12/21/2028	Media		10.67	%	SOFR+525		2,627		2,418		2,394
DRS Holdings III, Inc.	11/3/2025	Consumer Goods: Durable		11.79	%	SOFR+640		14,429		14,376		14,256
Duraco Specialty Tapes LLC	6/30/2024	Containers and Packaging		11.89	%	SOFR+650		10,904		10,838		10,740
ECL Entertainment, LLC	8/31/2030	Hotel, Gaming and Leisure		10.07	%	SOFR+475		5,000		4,900		4,985
EDS Buyer, LLC	1/10/2029	Electronic Equipment, Instruments, and Components		11.64	%	SOFR+625		8,955		8,833		8,821
Electro Rent Corporation	1/17/2024	Electronic Equipment, Instruments, and Components		11.00	%	SOFR+550		2,219		2,200		2,171
Exigo Intermediate II, LLC	3/15/2027	Software		11.17	%	SOFR+585		12,675		12,505		12,422
ETE Intermediate II, LLC	5/29/2029	Diversified Consumer Services		11.89	%	SOFR+650		12,404		12,154		12,193
Fairbanks Morse Defense	6/17/2028	Aerospace and Defense		10.40	%	SOFR+475		10,195		10,143		10,114
Global Holdings InterCo LLC	3/16/2026	Diversified Financial Services		11.96	%	SOFR+660		3,736		3,724		3,549
Graffiti Buyer, Inc.	8/10/2027	Trading Companies & Distributors		10.99	%	SOFR+575		2,345		2,316		2,322
Hancock Roofing and Construction L.L.C.	12/31/2026	Insurance		10.92	%	SOFR+560		2,250		2,217		2,194
Holdco Sands Intermediate, LLC	11/23/2028	Aerospace and Defense		11.32	%	SOFR+585		4,913		4,838		4,913
HW Holdco, LLC	12/10/2024	Media		11.75	%	SOFR+640		3,014		2,988		2,968
Imagine Acquisitionco, LLC	11/15/2027	Software		10.72	%	SOFR+535		9,248		9,075		9,110
Inception Fertility Ventures, LLC	12/31/2024	Healthcare Providers and Services		12.51	%	SOFR+715		16,453		16,257		16,453
Infinity Home Services Holdco, Inc.	12/28/2028	Commercial Services & Supplies		12.24	%	SOFR+685		6,090		5,979		6,090
Integrated Data Services	8/1/2029	Business Services		11.87	%	SOFR+650		18,904		18,532		18,463
Integrative Nutrition, LLC	1/31/2025	Diversified Consumer Services		12.54	%	SOFR+700		11,105		11,083		10,439
										-		-
			(PIK 2.25%)
Integrity Marketing Acquisition, LLC	8/27/2026	Insurance		11.57	%	SOFR+575		5,906		5,851		5,847
Inventus Power, Inc.	6/30/2025	Consumer Goods: Durable		12.93	%	SOFR+761		8,246		8,104		8,080
ITI Holdings, Inc.	3/3/2028	IT Services		11.06	%	SOFR+560		3,940		3,886		3,861
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		13.42	%	SOFR+810		15,509		15,487		15,509
Kinetic Purchaser, LLC	11/10/2027	Personal Products		11.54	%	SOFR+615		16,662		16,346		16,412
Lash OpCo, LLC	2/18/2027	Personal Products		12.13	%	SOFR+675		14,210		13,989		14,068
LAV Gear Holdings, Inc.	10/31/2024	Capital Equipment		11.74	%	SOFR+643		15,042		14,997		14,862
Lightspeed Buyer Inc.	2/3/2026	Healthcare Providers and Services		10.70	%	SOFR+535		12,056		11,911		11,935
LJ Avalon Holdings, LLC	1/31/2030	Environmental Industries		11.77	%	SOFR+640		2,585		2,537		2,534
Loving Tan Intermediate II, Inc.	5/26/2028	Consumer Products		12.39	%	SOFR+700		7,481		7,337		7,369
Lucky Bucks, LLC (4)	7/20/2027	Hotel, Gaming and Leisure		0.00	%			4,489		4,207		1,182
Lucky Bucks. LLC - OpCo DIP Loans	9/30/2025	Hotel, Gaming and Leisure		15.33	%	SOFR+1000		160		158		160
MAG DS Corp	4/1/2027	Aerospace and Defense		10.99	%	SOFR+550		2,097		2,007		1,986
Magenta Buyer, LLC	7/31/2028	Software		10.63	%	SOFR+500		3,006		2,845		2,228
Marketplace Events, LLC - Super Priority First Lien Term Loan	9/30/2025	Media: Diversified and Production		10.94	%	SOFR+525		647		647		647
Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan (3)	9/30/2025	Media: Diversified and Production						589		-		-
Marketplace Events, LLC	9/30/2026	Media: Diversified and Production		10.94	%	SOFR+525		4,837		3,782		4,837
Mars Acquisition Holdings Corp.	5/14/2026	Media		11.04	%	SOFR+565		11,588		11,476		11,472
MBS Holdings, Inc.	4/16/2027	Internet Software and Services		11.17	%	SOFR+585		7,859		7,758		7,749
MDI Buyer, Inc.	7/25/2028	Chemicals, Plastics and Rubber		11.32	%	SOFR+600		6,380		6,271		6,244
Meadowlark Acquirer, LLC	12/10/2027	Professional Services		11.04	%	SOFR+565		2,372		2,336		2,312

Below is a listing of PSSL’s individual investments as of September 30, 2023 (continued):


Issuer Name (6)	Maturity		Industry	Current Coupon			Basis Point Spread Above Index (1)		Par		Cost		Fair Value (2)
Output Services Group, Inc. (4)	6/27/2026		Business Services		0.00	%		—		7,759		7,689		1,513
Owl Acquisition, LLC	2/4/2028		Professional Services		10.80	%	SOFR+575			3,893		3,832		3,834
Ox Two, LLC	5/18/2026		Construction and Building		12.90	%	SOFR+751			4,345		4,306		4,269
Peaquod Merger Sub, Inc.	12/2/2026		Diversified Financial Services		11.79	%	SOFR+640			11,474		11,267		11,244
PH Beauty Holdings III, Inc.	9/29/2025		Wholesale		10.68	%	SOFR+500			9,493		9,282		7,974
PL Acquisitionco, LLC	11/9/2027		Textiles, Apparel and Luxury Goods		12.42	%	SOFR+710			7,565		7,467		6,809
				(PIK 4.00%)
PlayPower, Inc.	5/8/2026		Consumer Goods: Durable		10.57	%	SOFR+565			2,551		2,491		2,436
Pragmatic Institute, LLC	7/6/2028		Education		11.17	%	SOFR+575			11,138		10,999		10,636
Quantic Electronics, LLC	11/19/2026		Aerospace and Defense		11.74	%	SOFR+635			2,803	$	2,776	$	2,761
Rancho Health MSO, Inc.	12/18/2025		Healthcare Providers and Services		11.22	%	SOFR+585			1,029		1,029		1,029
Reception Purchaser, LLC	2/28/2028		Air Freight and Logistics		11.54	%	SOFR+600			4,938		4,876		4,740
Recteq, LLC	1/29/2026		Leisure Products		12.54	%	SOFR+700			4,875		4,825		4,729
Research Now Group, LLC and Dynata, LLC	12/20/2024		Diversified Consumer Services		11.13	%	SOFR+576			12,432		12,322		10,878
Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)	6/15/2029		High Tech Industries		11.52	%	SOFR+625			3,749		3,676		3,692
Sales Benchmark Index LLC	1/3/2025		Professional Services		11.59	%	SOFR+620			9,522		9,474		9,475
Sargent & Greenleaf Inc.	12/20/2024		Wholesale		12.92	%	SOFR+760			5,167		5,148		5,116
				(PIK 1.00%)
Schlesinger Global, Inc.	7/14/2025		Business Services		12.52	%	SOFR+715			11,791		11,777		11,407
				(PIK 0.50%)
Seaway Buyer, LLC	6/13/2029		Chemicals, Plastics and Rubber		11.54	%	SOFR+615			4,950		4,884		4,802
Sigma Defense Systems, LLC	12/18/2025		Aerospace and Defense		14.04	%	SOFR+865			13,787		13,579		13,580
Skopima Consilio Parent, LLC	5/17/2028		Business Services		9.93	%	SOFR+450			1,300		1,274		1,272
Smile Brands Inc.	10/14/2025		Healthcare and Pharmaceuticals		9.70	%	SOFR+450			11,796		11,739		10,598
Solutionreach, Inc.	7/17/2025		Healthcare and Pharmaceuticals		12.37	%	SOFR+700			4,582		4,577		4,563
Spendmend Holdings LLC	3/1/2028		Healthcare Technology		11.04	%	SOFR+565			4,112		4,047		4,022
STV Group Incorporated	12/11/2026		Construction and Building		10.67	%	SOFR+535			9,075		9,025		8,894
Summit Behavioral Healthcare, LLC	11/24/2028		Healthcare and Pharmaceuticals		10.43	%	SOFR+475			1,786		1,696		1,779
System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)	8/16/2027		Aerospace and Defense		11.49	%	SOFR+600			14,738		14,540		14,575
Team Services Group, LLC	11/24/2028		Healthcare and Pharmaceuticals		10.75	%	SOFR+500			346		333		339
Teneo Holdings LLC	7/18/2025		Business Services		10.67	%	SOFR+535			2,262		2,261		2,259
The Aegis Technologies Group, LLC	10/31/2025		Aerospace and Defense		12.04	%	SOFR+665			5,602		5,560		5,518
The Bluebird Group LLC	7/27/2026		Professional Services		12.79	%	SOFR+700			5,403		5,336		5,382
The Vertex Companies, LLC	8/31/2027		Construction and Engineering		11.72	%	SOFR+635			7,716		7,591		7,656
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025		Consumer Goods: Non-Durable		10.95	%	SOFR+565			8,654		8,556		8,654
TWS Acquisition Corporation	6/16/2025		Diversified Consumer Services		11.80	%	SOFR+625			4,316		4,310		4,316
Tyto Athene, LLC	4/1/2028		IT Services		10.90	%	SOFR+550			14,670		14,565		13,379
Urology Management Holdings, Inc.	6/15/2026		Healthcare and Pharmaceuticals		11.79	%	SOFR+665			6,892		6,775		6,749
Walker Edison Furniture Company LLC (5)	3/31/2027		Wholesale		12.18	%	SOFR+685			3,521		3,521		3,521
Walker Edison Furniture Company LLC - Junior Revolving Credit Facility (5)	3/31/2027		Wholesale		11.68	%	SOFR+635			1,667		1,667		1,667
Walker Edison Furniture Company LLC - DDTL - Unfunded (3)(5)	3/31/2027		Wholesale							333
Wildcat Buyerco, Inc.	2/27/2026		Electronic Equipment, Instruments, and Components		10.54	%	SOFR+515			10,565		10,491		10,460
Zips Car Wash, LLC	3/1/2024		Automobiles		12.67	%	SOFR+735			16,732		16,660		16,188

Total First Lien Secured Debt												801,215		783,598
Equity Securities - 3.9%
New MPE Holdings, LLC		—	Media: Diversified and Production		—			—		-		-		495
Walker Edison Furniture - Common Equity		—	Wholesale							36		3,393		1,766
Total Equity Securities												3,393		2,261
Total Investments - 1,351.4%												804,608		785,859
Cash and Cash Equivalents - 133.2%
BlackRock Federal FD Institutional 30												77,446		77,446
Total Cash and Cash Equivalents												77,446		77,446
Total Investments and Cash Equivalents —1,484.6%											$	882,054	$	863,305
Liabilities in Excess of Other Assets — (1,384.6)%														(805,155	)
Members' Equity—100.0%													$	58,150

(1)

Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate or "SOFR", or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Consolidated Schedule of Investments disclose the actual interest rate in effect as of the reporting period. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.

(2)

Valued based on PSSL’s accounting policy.

(3)

(4)

Security currently on interest non-accrual status.

(5)

The securities, or a portion thereof, are not 1) pledged as collateral under the Credit Facility and held through Funding I; or, 2) securing the 2032 Asset-Backed Debt and held through PennantPark CLO II, Ltd., or, 3) securing the 2035 Asset-Backed Debt and held through PennantPark CLO VI, LLC.

(6)

All investments are in US Companies unless noted otherwise.

Below are the consolidated statements of assets and liabilities for PSSL (in thousands):


	September 30, 2024		September 30, 2023
Assets
Investments at fair value (amortized cost—$928,983 and $804,608, respectively)	$	913,281	$	785,859
Cash and cash equivalents (cost—$68,429 and $77,446, respectively)		68,429		77,446
Interest receivable		4,722		5,179
Prepaid expenses and other assets		1,642		490
Due from affiliate		48		436
Total assets		988,122		869,410
Liabilities
Credit facility payable		146,100		48,600
2032 Asset-backed debt, net (par—$0 and $246,000)		—		243,973
2035 Asset-backed debt, net (par—$246,000 and $246,000, respectively)		243,934		243,483
2036 Asset-backed debt, net (par—$246,000 and $0, respectively)		244,372		—
Notes payable to members		271,600		240,100
Payable for investments purchased		86		13,466
Interest payable on notes to members		7,315		6,488
Interest payable on Credit facility and asset backed debt		9,281		14,291
Accrued expenses		822		859
Due to affiliate		65		—
Total liabilities		923,575		811,260
Commitments and contingencies (1)
Members' equity		64,547		58,150
Total liabilities and members' equity	$	988,122	$	869,410

(1)

As of both September 30, 2024 and 2023, PSSL had $0.6 million and $1.1 million unfunded commitments to fund investments, respectively.

Below are the consolidated statements of operations for PSSL (in thousands):


	Year Ended September 30, 2024			Year Ended September 30, 2023
Investment income:
Interest	$	109,094		$	89,547
Other income		1,191			1,297
Total investment income		110,285			90,844
Expenses:
Interest and expenses on credit facility and asset-backed debt		54,814			42,797
Interest expense on notes to members		34,186			30,325
Administrative services expenses		2,354			2,103
Other general and administrative expenses (1)		1,464			1,116
Expenses before debt issuance costs		92,818			76,341
Debt issuance costs		999			—
Total expenses		93,817			76,341
Net investment income		16,468			14,503
Realized and unrealized (loss) gain on investments and debt:
Net realized (loss) gain on investments		(8,914	)		(6,328	)
Debt extinguishment		(705	)		—
Net change in unrealized (depreciation) appreciation on investments		3,048			(3,171	)
Net realized and unrealized gain (loss) on investments and debt		(6,571	)		(9,499	)
Net increase (decrease) in members' equity resulting from operations	$	9,897		$	5,004

(1)

No management or incentive fees are payable by PSSL. If any fees were to be charged, they would be separately disclosed in the Consolidated Statements of Operations.