Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q3 2024 Earnings Presentation
20 slides from Palmer Square Capital Bdc's earnings presentation, November 2024
Slide 1: Palmer Square Capital BDC Inc. Q3 2024 Earnings Presentation
Palmer Square Capital BDC Inc. Q3 2024 Earnings Presentation November 2024
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation and any information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation (collectively, the “Presentation”) may contain forward-looking
Slide 3: Investment Highlights
Investment Highlights Established manager with many years of experience in bank loans, 1 corporate debt and structured credit Differentiated liquid bank loan investment strategy well- 2 positioned to deliver attractive and stable returns Large addressable market opportunity with access to 3 meaningf
Slide 4: Palmer Square Capital BDC Inc. Overview
Palmer Square Capital BDC Inc. Overview Focused on seeking the best relative value opportunities across corporate and structured credit with a bias for high quality, short duration, liquid credits and large private credit Key Portfolio Statistics $2.9B $1.4B $457M 11.5% Invested Capital Fair Value W
Slide 5: Investment Strategy
Investment Strategy Attractive risk adjusted returns through a highly liquid strategy Investment Style Market Liquid, Leveraged Loan Market & Large Segment Cap Direct Lending Market ✓ Loans with an average loan size greater than $1 billion Asset Senior Secured, Floating Rate Focus ✓ Priority positio
Slide 6: Large Addressable Market Opportunity
Large Addressable Market Opportunity Strong near-and medium-term supply as issuers continue to access the market for refinancings and long-term supply as private equity dry powder gets deployed S&P/LSTA Leveraged Loan Index U.S. Leveraged Loan Volume $ in Billions $ in Billions $250 $1,500 $200 $1,4
Slide 7: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights • Total investment income of $37.3 million for the third quarter of 2024 compared to $28.8 million for the prior year period. • Net investment income of $15.7 million or $0.48 per share1 for the third quarter of 2024, as compared to $14.8 million or $0.57 Earnings per s
Slide 8: Financial and Portfolio Highlights
Financial and Portfolio Highlights ($ in thousands, except per share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Investment Income Per Share 1 $0.57 $0.58 $0.52 $0.48 $0.48 Net Investment Income $14,804 $15,391 $16,318 $15,758 $15,729 Dividends Per Share Earned 2 $0.56 $0.54 $0.49 $0.47 $0.47
Slide 9: New Portfolio and Investment Activity
New Portfolio and Investment Activity ($ in thousands, except per share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 New Investments 1 Gross Investments $78,272 $85,331 $346,483 $189,301 $66,240 Less: Sold Investments ($58,481) ($52,648) ($69,556) ($140,027) ($82,822) Total New Investments $19,791
Slide 10: Portfolio Overview – Asset Mix
Portfolio Overview – Asset Mix Borrower Attributes2 3% 3% $457M 5.5x 2.0x 6% Wtd Average Wtd Average 1st W.A. Interest LTM EBITDA Lien Leverage Coverage First Lien PSBD Portfolio Attributes Focused Portfolio 96% ~$5.5M 99% Senior Secured Average Hold4 Floating Rate3 Investments3 88% Focus on liquid
Slide 11: Portfolio Company EBITDA & Credit Statistics
Portfolio Company EBITDA & Credit Statistics 10.0x $500 $452 $451 $457 $448 9.0x $438 $450 8.0x $400 7.0x $350 6.0x 5.5x $300 5.3x 5.3x 5.3x 5.3x 5.0x $250 4.0x $200 3.0x $150 2.3x 2.2x 2.1x 2.1x 2.0x 2.0x $100 1.0x $50 0.0x $0 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Weighted Average LTM EBITDA ($M) Weighted
Slide 12: Portfolio Highlights – Diversification
Portfolio Highlights – Diversification Industry Diversification Borrower Concentration Software 13% Healthcare 10% Other Strategically focused Top 10 positions Industries on 39 resilient Professional represent 10.1% of Services 57% industries 8% the portfolio IT Services 6% Insurance 6% Highly diver
Slide 13: PSBD Internal Rating System
PSBD Internal Rating System • As of September 30, 2024, two investments were on non-accrual status and the weighted average internal rating of the portfolio at fair value was 3.6 Rating 5 1.9% Rating 2 8.2% Relative Value Scoring System Criteria • Positions assigned a score of 5 to 1, updated on an
Slide 14: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.48 $16.85 $16.61 ($0.47) ($0.25) Q2 2024 NAV Per Share Q3 2024 Net Investment Q3 2024 Regular & Change in Realized & Q3 2024 NAV Per Share Income Supplemental Dividend Unrealized Gain (Loss) Note: NAV per share utilizes weighted average shares over the quarter. Pa
Slide 15: Investment Fundings Since Inception
Investment Fundings Since Inception Portfolio companies 181 212 176 191 212 $926 $855 $586 $602 $525 $279 $274 $310 $27 ($35) ($268) ($247) ($314) ($292) ($402) FY 2020 FY 2021 FY 2022 FY 2023 9 Mos. Ended 9/30/24 Gross Investments Sold Investments Total Net Investments Liquid nature of the portfoli
Slide 16: Debt Obligations and Maturity Ladder
Debt Obligations and Maturity Ladder • Attractive non-mark to market financing terms with high-quality financing partners and substantial capacity to invest. Debt Schedule and Maturities Liquidity and Leverage Profile D/E4 Committed Principal Interest Maturity ($ in millions) Amount Outstanding Rate
Slide 17: Historical Quarterly Earned Dividends & Yield
Historical Quarterly Earned Dividends & Yield 17.1% 12.9% 13.4% 13.1% 12.7% 11.0% 11.4% 11.2% 11.3% 10.5% $0.07 $0.05 $0.05 7.4% $0.64 $0.54 $0.56 $0.54 $0.52 $0.44 $0.44 $0.42 $0.42 $0.42 $0.37 3 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 1 1, 2 Regular Dividend Su
Slide 18: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Assets Investments (At Fair Value) $1,104,713 $1,108,811 $1,393,192 $1,431,577 $1,389,801 Cash And Cash Equivalents $3,411 $2,117 $8,255 $14,789 $1,786 Receivables And Other $1
Slide 19: Quarterly Operating Results Detail
Quarterly Operating Results Detail ($ in thousands, except per share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Investment Income Interest Income $27,324 $28,696 $33,208 $35,278 $35,775 Dividend Income $1,297 $951 $1,255 $805 $600 Payment-In-Kind Interest Income - $100 $52 $182 $205 Other Income
Slide 20: Investor Relations
Investor Relations Investors@palmersquarebdc.com
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