PennantPark Investment Corporation (PNNT) Earnings Call Transcript & Summary

Good morning. This is Art Penn, CEO and Chairman of the Board of PennantPark Investment Corporation. As presiding officer and in keeping with the digital approach to this year's meeting, it is now 9:32 a.m. Eastern Standard Time on February 9, 2021, and I hereby call this virtual meeting to order and welcome you to the 2021 Annual Meeting of Shareholders -- Stockholders of the Company. On behalf of management, I'd like to thank those stockholders who are personally present by webcast or telephone today and for your attendance and interest. I also want to thank the many stockholders who sent in proxies. Please note that if you encounter any technical difficulties throughout the course of the meeting, you may call the technical support number provided on the log-in page of the web portal. I would now like to take this opportunity to introduce you to members of the Board of Directors of the company: Adam Bernstein, Marshall Brozost, Jeff Flug, Sam Katz are in attendance by webcast or telephone at this meeting. Also present today is the company's Chief Financial Officer and Treasurer, Aviv Efrat; our Chief Compliance Officer, Guy Talarico; Compliance Representative, [ Greg McCurdy ]; and Tom Friedmann, secretary of the meeting. The directors of the company, myself and Mr. Efrat will be available today to talk with you about the progress of the company during the past year and to answer any questions you may have. In addition, present by webcast or telephone today from RSM US LLP, the company's independent audit firm, are Adam Borrelli, Mike Weber and Matt Thomas, who will be available at a later point in our meeting to respond to any questions you may have. The company has appointed Mr. [ Thomas Tai ], a representative of Broadridge Financial Solutions to act as the inspector of the election. A copy of the inspector's oath of office will be filed with and made part of the meeting -- the minutes of this meeting. We will now begin the meeting. I call Mr. Friedman to present certain items in connection with the holding of this meeting.

Thank you, Mr. Penn. A list of the stockholders of record who are entitled to vote at this meeting, which has been prepared in accordance of Maryland corporate law and the bylaws of the company, together with copies of the notice of annual meeting and proxy statement, the letter to the stockholders, proxy cards and the 2020 annual report on Form 10-K of the company are available for inspection through the web portal during the course of this meeting. An affidavit of distribution to stockholders of record as of December 1, 2020, for the company, is also available and will be filed with and made part of the minutes of this meeting. After the formal meeting has been adjourned, we will provide time for general questions. [Operator Instructions] Please note that this meeting is being recorded. However, no one attending via webcast or telephone is permitted to use any other recording device. Thank you.

Thank you, Mr. Friedman. For purposes of voting at this meeting, proxies have been solicited by the Board of Directors of the company and the shares owned by stockholders of the company may be voted and represented at this meeting with respect to matters involving the company in which such stockholders own shares pursuant to its proxy. Mr. Tai has informed me that we have a quorum present today for the conduct of business. We will now move to the actual business of the meeting. I now declare this meeting duly convened, properly organized and competent to transact business. I will now open the floor to the consideration of the 2 items of business described in the notice of the annual meeting: to consider and vote upon the election of 3 directors to the Board of Directors of the company, one of whom will serve for a term of 2 years until 2023 Annual Meeting of Stockholders and until a successor is duly elected and qualified, and two of whom will each serve for a term of 3 years until the 2024 Annual Meeting of Stockholders and until a successor is duly elected and qualified. The persons nominated by the Nominating and Corporate Governance Committee of PennantPark Investment Corporation and its full Board of Directors are: Mr. Marshall Brozost to serve a term of 2 years until the 2023 Annual Meeting of Stockholders and until a successor is duly elected and qualified; and each of Mr. Adam Bernstein and Mr. Jeffrey Flug to serve a term of 3 years until the 2024 Annual Meeting of Stockholders until a successor is duly elected and qualified. The second order of business on our agenda is the proposal to ratify the selection of RSM US LLP to serve as the company's independent registered public accounting firm for the fiscal year ending September 30, 2021. Are there any discussion, comments or questions on the 2 proposals, which were set forth in the company's proxy statement? Okay. It's now 9:37 a.m. Eastern Time on February 9, 2021, and the polls are now open. Those of you who have not submitted a proxy may vote, and those of you who have submitted a proxy but would like to change your vote may do so now by clicking the Voting button on the web portal and following the instructions there. Information regarding the election of directors is provided in the proxy statement and accompanied the notice of annual meeting. And accordingly, I will dispense with any preliminary explanation. Since the discussion is now complete, I declare the polls open for balloting. [Voting]

The polls are now closed. We will take a moment while the inspector of election counts the ballots and proxies. The inspector of the election has notified me that the ballots and proxies have been counted. Will the secretary of the meeting please present the results of the balloting?

I report that the results of the balloting as provided by the inspector of elections are as follows. One, Mr. Marshall Brozost has been elected as a Class I Director of PennantPark Investment Corporation for a 2-year term expiring at the Annual Meeting of Stockholders in 2023 and until a successor is duly elected and qualified. Two, each of Mr. Adam Bernstein and Mr. Jeffrey Flug has been elected as a Class II Director of PennantPark Investment Corporation for a 3-year term expiring at the Annual Meeting of Stockholders in 2024 and until a successor is duly elected and qualified. Three, RSM US LLP has been ratified to serve as the independent registered public accounting firm for PennantPark Investment Corporation for the fiscal year ending September 30, 2021.

Thank you, Mr. Friedmann. On the basis of the reports provided by the inspector of elections and the secretary of the meeting, I declare that proposals 1 and 2, which have been presented for PennantPark Investment Corporation, at this time have been accepted by the stockholders of Pennant Park Investment Corporation. There being no further business, I declare that the annual meeting of Stockholders is hereby adjourned. Now we can open things up for stockholder questions and comments. We will take questions from validated stockholders that are being answered today through the Ask a Question field on the web portal. [Operator Instructions] I see that we have no further questions at this time. I hereby close the meeting. Thank you all for your participation.