Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q4 2023 Earnings Presentation
17 slides from Palmer Square Capital Bdc's earnings presentation, Feb 28, 2024
Slide 1: Palmer Square Capital BDC Inc. 4Q 2023 Earnings Presentation
Palmer Square Capital BDC Inc. 4Q 2023 Earnings Presentation February 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 2 Differentiated liquid bank loan investment strategy well- 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 $2.3B $1.1B ~$535M 13.5% Invested Capital Fair Value
Slide 5: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights • Total investment income of $29.8 million for the fourth quarter of 2023 compared to $23.8 million for the prior year period. • Net investment income1 of $15.4 million or $0.57 per share for the fourth quarter of 2023 as compared to $12.4 million Earnings or $0.51 per
Slide 6: Financial and Portfolio Highlights
Financial and Portfolio Highlights ($ in thousands, except per share data) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 1 Net Investment Income Per Share $0.51 $0.54 $0.55 $0.56 $0.57 Net Investment Income $12,408 $13,593 $14,200 $14,804 $15,391 2 3 Dividends Per Share Earned $0.64 $0.52 $0.54 $0.56 $0.5
Slide 7: New Portfolio and Investment Activity
New Portfolio and Investment Activity ($ in thousands, except per share data) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 New Investments 1 Gross Investments $51,300 $63,458 $46,673 $78,272 $85,331 Less: Sold Investments ($56,207) ($102,139) ($33,815) ($58,481) ($52,648) Total New Investments ($4,907) (
Slide 8: Portfolio Overview – Asset Mix
Portfolio Overview – Asset Mix Borrower Attributes2 3% 6% 5% $438M 5.3x 2.1x Wtd Average Wtd Average 1st W.A. Interest LTM EBITDA Lien Leverage Coverage First Lien PSBD Portfolio Attributes Focused Portfolio 96% ~$5M 98% Senior Secured Average Hold Floating Rate3 Investments3 86% Focus on liquid loa
Slide 9: Portfolio Highlights – Diversification
Portfolio Highlights – Diversification Industry Diversification Borrower Concentration Software 14% Healthcare 9% Strategically focused Top 10 positions on 38 resilient Professional represent 10.4% of Other (33 Services Industries) industries 7% the portfolio 57% IT Services 7% Insurance 6% Highly d
Slide 10: PSBD Internal Rating System
PSBD Internal Rating System • As of December 31, 2023, zero investments were on non-accrual status and the weighted average internal rating of the portfolio at fair value was 3.6. Rating 2 4.6% Relative Value Scoring System Criteria • Positions assigned a score of 5 to 1, updated on an ongoing basis
Slide 11: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.57 $0.25 $17.04 $16.76 ($0.54) Q3 2023 NAV Per Share Q4 2023 Net Investment Q4 2023 Regular Dividend Change in Realized & Q4 2023 NAV Per Share Income Unrealized Gain (Loss) Palmer Square Capital BDC Inc. Page 11
Slide 12: Investment Fundings Since Inception
Investment Fundings Since Inception Portfolio companies 181 212 176 191 $926 $855 $586 $525 $279 $274 $27 ($35) ($268) ($247) ($314) ($402) FY 2020 FY 2021 FY 2022 FY 2023 Gross Investments Sold Investments Total Net Investments Liquid nature of the portfolio preserves optionality and allows for opp
Slide 13: Debt Obligations and Maturity Ladder
Debt Obligations and Maturity Ladder • Attractive non-mark to market financing terms with high-quality financing partners and substantial capacity to invest. Debt Schedule and Maturities Liquidity and Leverage Profile Committed Principal Interest Maturity D/E3 ($ in millions) Amount Outstanding Rate
Slide 14: Historical Quarterly Earned Dividends & Yield
Historical Quarterly Earned Dividends & Yield $0.80 17.1% 18.0% 16.0% $0.70 13.1% 13.4% 12.9% 14.0% $0.60 12.7% 11.0% 12.0% $0.50 10.5% 10.0% $0.40 7.4% 8.0% $0.30 $0.64 $0.54 $0.56 $0.54 $0.52 6.0% $0.44 $0.44 $0.37 $0.20 4.0% $0.10 2.0% $- 0.0% 3 Q1’22 Q2’22 Q3'22 Q4’22 Q1’23 Q2’23 Q3'23 Q4’23 1 2
Slide 15: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Assets Investments (At Fair Value) $1,017,212 $1,042,644 $1,062,844 $1,104,713 $1,108,811 Cash And Cash Equivalents $1,651 $6,242 $6,737 $3,411 $2,117 Receivables And Other $38
Slide 16: Quarterly Operating Results Detail
Quarterly Operating Results Detail ($ in thousands, except per share data) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Investment Income Interest Income $23,439 $25,453 $26,167 $27,324 $28,796 Dividend Income $332 $677 $1,142 $1,297 $951 Other Income $4 $56 $133 $153 $76 Total Investment Income $23,774
Slide 17: Investor Relations
Investor Relations Investors@palmersquarebdc.com
Palmer Square Capital BDC — Q4 2023 Earnings Presentation on 6ix