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Beaten Down BDCs: PennantPark

PennantPark Investment Corporation (PNNT) is another BDC that has been slammed in the recent market. It successfully completed a follow on offering of 8.5 million shares at a price of $11.63 as recently as this past September and is currently trading at $8.47 (as with other BDCs, I often wonder about the shareholder morale issues among the purchasers in the recent offering). PNNT sports a dividend of 28 cents per quarter, producing a yield of 13.7%. It is a large BDC with over $1.4 billion in assets.

Oil and Gas - As with other BDCs that have taken their lumps in the market of late, PNNT has exposure to the oil and gas sector. Its most recent presentation indicates that 9% of its investment portfolio as of September 30, 2014, was in the oil and gas sector. Investors should note that, as of that date, PNNT had considerable cash and… Read More …