PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) Q4 2022 Earnings Call Transcript

Art Penn: Well, we certainly hope to exit marketplace events when the time is right. The company is performing well. It’s a trade show business focused on home goods; they’ve rebounded nicely. That’s reflected in the mark weather, now is the appropriate time to sell or we give it some more time to ramp. I don’t think it’s a near term because we think the opportunity for that company to grow is actually very strong right now. It’s a consolidator in its particular industry. So we’re always evaluating options. But kind of — this is not — we don’t think right now it’s a short-term item but kind of over intermediate to long term, we think the opportunity to build that company and therefore, build the value of the company in the PFLT portfolio is pretty strong given the tailwinds it’s seeing. People are coming back to these trade shows. They’re very popular. People like the in-person interaction. So for us, we’re thinking holding onto for a while and playing it through.

Mickey Schleien: So just so I make sure I understand. The mark of above cost is related to the restructuring rather than expectations of near-term exit, is that correct?

Art Penn: Yes. Yes, there’s equity, so we are in control of the company. So there’s equity associated. We and 3 other lenders are in control of the company. We’re the lead lender and — and so the markup is due to the valuation of the company increasing.

Operator: Mr. Penn, I’d like to turn the conference back to you for any closing remarks.

Art Penn: I just want to thank everybody for being on the call this morning. We appreciate it. Wishing everybody a terrific Thanksgiving and a great holiday season and we look forward to speaking with you in early February at our next earnings call.

Operator: This concludes today’s call. Thank you for your participation. You may now disconnect.