Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q4 2025 Earnings Presentation
22 slides from Palmer Square Capital Bdc's earnings presentation, Feb 26, 2026
Slide 1: Q4 2025 Earnings
Q4 2025 Earnings Palmer Square BDC Inc. (NYSE: PSBD) February 2026 1
Slide 2: Forward-looking Statements
Q4 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
Q4 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
Q4 2025 EARNINGS Palmer Square Capital BDC Inc. Overview Focused on seeking value opportunities across corporate and structured credit with a bias for high quality, short duration, liquid credits and large private credit $3.5B $1.2B $436M 11.0% Invested Capital Fair Value Investment Weighted Average
Slide 5: Palmer Square Capital Management LLC Overview
Q4 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 76 employees and $36.2 billion AUM across strategies, client base and product types Firm AUM Profile Founded 2009 4% Headquarters Miss
Slide 6: Research Biases and Philosophy
Q4 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
Q4 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
Q4 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 $1,800 Institutional Pro Rata
Slide 9: Fourth Quarter 2025 Highlights
Q4 2025 EARNINGS Fourth Quarter 2025 Highlights Earnings Portfolio Activity Balance Sheet Other Highlights Recent Developments $29.8M $1.1B $1.2B 1.45% • On February 26, 2026, PSBD’s Board of Directors declared a Total investment income Total portfolio of long-term investments Total assets PIK incom
Slide 10: Financial and Portfolio Highlights
Q4 2025 EARNINGS Financial and Portfolio Highlights ($ in thousands, except per share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net Investment Income Per Share 1 $0.45 $0.40 $0.43 $0.43 $0.41 Net Investment Income $14,796 $12,913 $13,842 $13,641 $13,068 Dividends Per Share Earned 2 $0.483 $0.39
Slide 11: New Portfolio and Investment Activity
Q4 2025 EARNINGS New Portfolio and Investment Activity ($ in thousands, except per share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 New Investments 1 Gross Investments $171,785 $104,323 $92,362 $138,666 $91,367 Less: Sold Investments $(176,357) $(144,369) $(133,282) $(156,028) $(148,308) Total Ne
Slide 12: Portfolio Overview – Asset Mix
Q4 2025 EARNINGS Portfolio Overview – Asset Mix Borrower Attributes2 First Lien Focused Portfolio $436M 5.5x 2.6x Weighted Average Weighted Average Weighted LTM EBITDA 1st Lien Leverage Average 5% 6% Interest First Lien Coverage 5% PSBD Portfolio Attributes 95% ~$4.7M 98% Second Lien Senior Secured
Slide 13: Portfolio Company EBITDA & Credit Statistics
Q4 2025 EARNINGS Portfolio Company EBITDA & Credit Statistics $422 $421 $436 $399 $412 5.4x 5.5x 5.6x 5.5x 5.5x 2.5x 2.6x 2.0x 2.1x 2.2x 4Q24 1Q25 2Q25 3Q25 4Q25 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
Q4 2025 EARNINGS Strong Value Creation Through Bouts of Uncertainty Industry Diversification Borrower Concentration Strategically focused on 42 resilient industries Top 10 positions represent 10.9% of the portfolio Nexus Buyer LLC 1.4% Gainwell Acquisition 11% Software Corp. 1.2% Red Planet Borrower
Slide 15: PSBD Internal Rating System
Q4 2025 EARNINGS PSBD Internal Rating System Relative Value Scoring System Criteria As of December 31, 2025, three 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 val
Slide 16: Net Asset Value Per Share Bridge
Q4 2025 EARNINGS Net Asset Value Per Share Bridge $15.39 $0.41 $14.85 $(0.43) $(0.52) Q3 2025 NAV Per Share Q4 2025 Net Investment Q4 2025 Regular & Change in Realized & Q4 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
Q4 2025 EARNINGS Investment Fundings Since Inception Gross Investments Sold Investments Total Net Investments $855 $926 $774 $586 $525 $427 $279 $274 $305 $27 $(35) $(155) $(268) $(314) $(247) $(402) $(469) $(582) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Portfolio companies 181 212 176 191 20
Slide 18: Debt Obligations and Maturity Ladder
Q4 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 1.50x 1.50x 1.51x 1.53x 1.54x Committed Principal Interest Mat
Slide 19: Historical Quarterly Earned Dividends & Yield
Q4 2025 EARNINGS Historical Quarterly Earned Dividends & Yield 17.1% 12.9% 13.1% 13.4% 12.7% 11.4% 11.2% 11.3% 11.6% 11.6% 10.5% 11.0% 10.7% 10.9% 9.8% $0.07 $0.05 $0.05 $0.06 $0.06 $0.06 $0.07 $0.03 $0.64 $0.54 $0.56 $0.54 $0.52 $0.44 $0.44 $0.42 $0.42 $0.42 $0.42 $0.36 $0.36 $0.36 $0.36 2Q22 3Q22
Slide 20: Quarterly Statements of Financial Condition
Q4 2025 EARNINGS Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Assets Investments (At Fair Value) $1,407,131 $1,334,314 $1,279,793 $1,258,988 $1,203,640 Cash And Cash Equivalents $2,766 $2,872 $16,436 $4,201 $3,217 Receiva
Slide 21: Quarterly Operating Results Detail
Q4 2025 EARNINGS Quarterly Operating Results Detail ($ in thousands, except per share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Investment Income Interest Income $33,248 $29,820 $30,024 $30,432 $27,990 Dividend Income $656 $574 $481 $657 $566 Payment-In-Kind Interest Income $685 $508 $802 $361 $
Slide 22: Palmer Square BDC Investor Relations
Palmer Square BDC Investor Relations investors@palmersquarebdc.com
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