Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q1 2025 Earnings Presentation
22 slides from Palmer Square Capital Bdc's earnings presentation, May 2025
Slide 1: Q1 2025 Earnings Presentation
Palmer Square Capital BDC Inc. Q1 2025 Earnings Presentation May 2025
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 $3.2B $1.3B $399M 9.8% Invested Capital Fair Value We
Slide 5: Palmer Square Capital Management LLC Overview
Palmer Square Capital Management LLC Overview Palmer Square Capital Management LLC (“PSCM”) was founded in 2009 by Chris Long and has since grown to 70 employees and over $34 billion AUM across strategies, client base and product types Profile 4% Founded 2009 11% Headquarters Mission Woods, KS 15% F
Slide 6: Research Biases and Philosophy
Research Biases and Philosophy Palmer Square Capital Management believes active management in fixed income is paramount, and that by combining our depth of experience and strong research capabilities we can seek to not only capture yield, but also total return. In everything we do, we subscribe to t
Slide 7: 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 8: 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 9: First Quarter 2025 Highlights
First Quarter 2025 Highlights • Total investment income of $31.2 million for the first quarter of 2025 compared to $34.8 million for the prior year period. • Net investment income of $12.9 million or $0.40 per share1 for the first quarter of 2025, as compared to $16.3 million or $0.52 Earnings per s
Slide 10: Financial and Portfolio Highlights
Financial and Portfolio Highlights ($ in thousands, except per share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Investment Income Per Share 1 $0.52 $0.48 $0.48 $0.45 $0.40 Net Investment Income $16,318 $15,758 $15,729 $14,796 $12,913 Dividends Per Share Earned 2 $0.49 $0.47 $0.47 $0.483 $0.39
Slide 11: New Portfolio and Investment Activity
New Portfolio and Investment Activity ($ in thousands, except per share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 New Investments 1 Gross Investments $346,483 $189,301 $66,240 $171,785 $104,323 Less: Sold Investments ($69,556) ($140,027) ($82,822) ($176,357) ($144,369) Total New Investments $276
Slide 12: Portfolio Overview – Asset Mix
Portfolio Overview – Asset Mix Borrower Attributes2 4% 5% $399M 5.5x 2.1x 5% Wtd Average LTM Wtd Average 1st W.A. Interest EBITDA Lien Leverage Coverage First Lien PSBD Portfolio Attributes Focused Portfolio 96% ~$5.2M 98% Senior Secured Average Hold4 Floating Rate3 Investments3 86% Focus on liquid
Slide 13: Portfolio Company EBITDA & Credit Statistics
Portfolio Company EBITDA & Credit Statistics $452 $451 $457 $422 $399 5.5x 5.4x 5.5x 5.3x 5.3x 2.2x 2.1x 2.0x 2.1x 2.0x 1Q24 2Q24 3Q24 4Q24 1Q25 Weighted Average LTM EBITDA Weighted Average Interest Coverage Weighted Average First Lien Leverage Note: As of 3/31/2025. Palmer Square Capital BDC Inc. P
Slide 14: Portfolio Highlights – Diversification
Portfolio Highlights – Diversification Industry Diversification Borrower Concentration Software 11% Healthcare 9% Strategically focused Professional Top 10 positions Services on 39 resilient 8% represent 10.2% of Other industries the portfolio Industries IT Services 60% 7% Chemicals 5% Highly divers
Slide 15: PSBD Internal Rating System
PSBD Internal Rating System • As of March 31, 2025, three investments were on non-accrual status and the weighted average internal rating of the portfolio at fair value was 3.6. Rating 2 5.9% Relative Value Scoring System Criteria • Positions assigned a score of 5 to 1, updated on an ongoing basis •
Slide 16: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.40 $16.50 ($0.39) $15.85 ($0.66) Q4 2024 NAV Per Share Q1 2025 Net Investment Q1 2025 Regular & Change in Realized & Q1 2025 NAV Per Share Income Supplemental Dividend Unrealized Gain (Loss) Note: NAV per share utilizes weighted average shares over the quarter. Pa
Slide 17: Investment Fundings Since Inception
Investment Fundings Since Inception Portfolio companies 181 212 176 191 207 209 $926 $855 $774 $586 $525 $279 $274 $305 $104 $27 $(35) $(40) $(144) $(268) $(247) $(314) $(402) $(469) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q1 2025 Gross Investments Sold Investments Total Net Investments Liquid natur
Slide 18: Debt Obligations and Maturity Ladder
Debt Obligations and Maturity Ladder • Attractive non-mark to market financing terms with high-quality financing partners and substantial capacity to invest. Debt Schedule and Maturities Liquidity and Leverage Profile D/E3 Committed Principal Interest Maturity ($ in millions) Amount Outstanding Rate
Slide 19: Historical Quarterly Earned Dividends & Yield
Historical Quarterly Earned Dividends & Yield 17.1% 13.1% 13.4% 12.9% 12.7% 11.0% 11.4% 11.3% 11.6% 11.2% 10.5% $0.07 $0.05 $0.05 $0.06 9.8% 7.4% $0.03 $0.64 $0.54 $0.56 $0.54 $0.52 $0.44 $0.44 $0.42 $0.42 $0.42 $0.42 $0.37 $0.36 1Q22 2Q22 3Q22 4Q22 3 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 4 1Q25 R
Slide 20: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Assets Investments (At Fair Value) $1,393,192 $1,431,577 $1,389,801 $1,407,131 $1,334,314 Cash And Cash Equivalents $8,255 $14,789 $1,786 $2,766 $2,872 Receivables And Other $1
Slide 21: Quarterly Operating Results Detail
Quarterly Operating Results Detail ($ in thousands, except per share data) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Investment Income Interest Income $33,208 $35,278 $35,775 $33,248 $29,820 Dividend Income $1,255 $805 $600 $656 $574 Payment-In-Kind Interest Income $52 $182 $205 $685 $508 Other Income
Slide 22: Investor Relations
Investor Relations Investors@palmersquarebdc.com
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