Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q3 2025 Earnings Presentation
22 slides from Palmer Square Capital Bdc's earnings presentation, Nov 5, 2025
Slide 1: Q3 2025 Earnings
Q3 2025 Earnings Palmer Square BDC Inc. (NYSE: PSBD) November 2025 1
Slide 2: Forward-looking Statements
Q3 2025 EARNINGS 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
Slide 3: Palmer Square BDC Investment Highlights
Q3 2025 EARNINGS Palmer Square BDC Investment Highlights 1 2 3 Established manager Differentiated liquid Large addressable with many years of bank loan investment market opportunity with experience in bank strategy well-positioned access to meaningful loans, corporate debt to deliver attractive and
Slide 4: Palmer Square Capital BDC Inc. Overview
Q3 2025 EARNINGS 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 $3.4B $1.3B $421M 11.0% Invested Capital Fair Value Investmen
Slide 5: Palmer Square Capital Management LLC Overview
Q3 2025 EARNINGS Palmer Square Capital Management LLC Overview Palmer Square Capital Management LLC (“PSCM”) was founded in 2009 by Chris Long and has since grown to 75 employees and over $36.6 billion AUM across strategies, client base and product types Firm AUM Profile Founded 2009 4% Headquarters
Slide 6: Research Biases and Philosophy
Q3 2025 EARNINGS Research Biases In everything we do, we subscribe to three key pillars and Philosophy Palmer Square Capital 1 2 3 Management believes active management in fixed income Focus on Minimize Maintain is paramount, and that by Higher Interest Liquidity combining our depth of Quality Rate
Slide 7: Investment Strategy
Q3 2025 EARNINGS Investment Strategy Attractive risk adjusted returns through a highly liquid strategy Market Liquid, Leveraged Loan Market & Large Cap Direct Investment Criteria Segment Lending Market ✓ Loans with an average overall deal size greater than $1 billion Asset ✓ Priority position in the
Slide 8: Large Addressable Market Opportunity
Q3 2025 EARNINGS 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 $1,600 Institutional Pro Rata
Slide 9: Third Quarter 2025 Highlights
Q3 2025 EARNINGS Third Quarter 2025 Highlights Earnings Portfolio Activity Balance Sheet Other Highlights Recent Developments $31.7M $1.2B $1.3B 1.14% • On November 5, 2025, PSBD’s Board of Directors declared a Total investment income Total portfolio of long-term investments Total assets PIK income
Slide 10: Financial and Portfolio Highlights
Q3 2025 EARNINGS Financial and Portfolio Highlights ($ in thousands, except per share data) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net Investment Income Per Share 1 $0.48 $0.45 $0.40 $0.43 $0.43 Net Investment Income $15,729 $14,796 $12,913 $13,842 $13,641 Dividends Per Share Earned 2 $0.47 $0.483
Slide 11: New Portfolio and Investment Activity
Q3 2025 EARNINGS New Portfolio and Investment Activity ($ in thousands, except per share data) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 New Investments 1 Gross Investments $66,240 $171,785 $104,323 $92,362 $138,666 Less: Sold Investments ($82,822) ($176,357) ($144,369) ($133,282) ($156,028) Total New
Slide 12: Portfolio Overview – Asset Mix
Q3 2025 EARNINGS Portfolio Overview – Asset Mix Borrower Attributes2 First Lien Focused Portfolio $421M 5.5x 2.5x Weighted Average Weighted Average Weighted LTM EBITDA 1st Lien Leverage Average 5% 4% Interest 5% First Lien Coverage PSBD Portfolio Attributes 95% ~$5.0M 98% Second Lien Senior Secured
Slide 13: Portfolio Company EBITDA & Credit Statistics
Q3 2025 EARNINGS Portfolio Company EBITDA & Credit Statistics $457 $422 $412 $421 $399 5.5x 5.4x 5.5x 5.6x 5.5x 2.5x 2.0x 2.0x 2.1x 2.2x 3Q24 4Q24 1Q25 2Q25 3Q25 Weighted Average LTM EBITDA Weighted Average Interest Coverage Weighted Average First Lien Leverage Note: Attributes of First Lien Borrowe
Slide 14: Strong Value Creation Through Bouts of Uncertainty
Q3 2025 EARNINGS Strong Value Creation Through Bouts of Uncertainty Industry Diversification Borrower Concentration Strategically focused on 42 resilient industries Top 10 positions represent 10.6% of the portfolio Nexus Buyer LLC 1.3% 11% Software Delta Topco, Inc. 1.2% Gainwell Acquisition 1.1% He
Slide 15: PSBD Internal Rating System
Q3 2025 EARNINGS PSBD Internal Rating System Relative Value Scoring System Criteria As of September 30, 2025, two portfolio companies were on non- ▪ Positions assigned a score of 5 to 1, accrual status and the weighted average internal rating of the portfolio updated on an ongoing basis at fair valu
Slide 16: Net Asset Value Per Share Bridge
Q3 2025 EARNINGS Net Asset Value Per Share Bridge $15.68 $0.43 $15.39 ($0.42) ($0.30) Q2 2025 NAV Per Share Q3 2025 Net Investment Q3 2025 Regular & Change in Realized & Q3 2025 NAV Per Share Income Supplemental Dividend Unrealized Gain (Loss)1 1. Realized and unrealized gains and losses per share i
Slide 17: Investment Fundings Since Inception
Q3 2025 EARNINGS Investment Fundings Since Inception Gross Investments Sold Investments Total Net Investments $926 $855 $774 $586 $525 $279 $274 $305 $335 $27 $(35) $(98) $(268) $(247) $(314) $(402) $(433) $(469) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 9 Mos. Ended 9/30/2025 Portfolio companies 181
Slide 18: Debt Obligations and Maturity Ladder
Q3 2025 EARNINGS 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/E3 1.52x 1.50x 1.50x 1.51x 1.53x Committed Principal Interest Mat
Slide 19: Historical Quarterly Earned Dividends & Yield
Q3 2025 EARNINGS Historical Quarterly Earned Dividends & Yield 17.1% 13.1% 13.4% 12.9% 12.7% 11.0% 11.4% 11.2% 11.3% 11.6% 10.5% 10.7% 10.9% 9.8% $0.07 $0.05 $0.05 $0.06 7.4% $0.03 $0.06 $0.06 $0.64 $0.54 $0.56 $0.54 $0.52 $0.44 $0.44 $0.42 $0.42 $0.42 $0.42 $0.37 $0.36 $0.36 $0.36 1Q22 2Q22 3Q22 4Q
Slide 20: Quarterly Statements of Financial Condition
Q3 2025 EARNINGS Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Assets Investments (At Fair Value) $1,389,801 $1,407,131 $1,334,314 $1,279,793 $1,258,988 Cash And Cash Equivalents $1,786 $2,766 $2,872 $16,436 $4,201 Receiva
Slide 21: Quarterly Operating Results Detail
Q3 2025 EARNINGS Quarterly Operating Results Detail ($ in thousands, except per share data) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Investment Income Interest Income $35,775 $33,248 $29,820 $30,024 $30,432 Dividend Income $600 $656 $574 $481 $657 Payment-In-Kind Interest Income $205 $685 $508 $802 $
Slide 22: Palmer Square BDC Investor Relations
Palmer Square BDC Investor Relations investors@palmersquarebdc.com
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