Summary
- PNNT has rallied 15% since my previous article predicting that the company would report increased book value/NAV per share due to rebounding oil prices and accretive share repurchases.
- NAV per share increased by 1.0% (from $9.00 to $9.09) partially due to accretive share repurchases and net realized/unrealized gains of over $5.1 million.
- PNNT is actively repurchasing shares, including almost 1.1 million (1.5% of outstanding shares) at a weighted average price of $7.27 or 19.2% discount to previous NAV.
- Accretive share repurchases should improve earnings/NII per share along with portfolio growth and use of leverage, as well as monetizing its equity investments and increased LIBOR that could result in a dividend increase.
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As shown in the following chart, PennantPark Investment (PNNT) has rallied 15% since my previous article “PNNT: Higher Oil Prices And Interest Rates Driving Higher Returns For This 11% Yielding BDC“. Among other things, the article predicted that the company would report increased net asset value (“NAV”) per share due to rebounding oil prices and accretive share repurchases.
