Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q1 2024 Earnings Presentation
20 slides from Palmer Square Capital Bdc's earnings presentation, May 2024
Slide 1: Q1 2024 Earnings Presentation
Palmer Square Capital BDC Inc. Q1 2024 Earnings Presentation May 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 $2.7B $1.4B $452M 12.8% 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 $1,500 $250 $1,400 $2
Slide 7: First Quarter 2024 Highlights
First Quarter 2024 Highlights • Total investment income of $34.8 million for the first quarter of 2024 compared to $26.2 million for the prior year period. • Net investment income of $16.3 million or $0.52 per share1 for the first quarter of 2024 as compared to $13.6 million or $0.55 Earnings per sh
Slide 8: Financial and Portfolio Highlights
Financial and Portfolio Highlights ($ in thousands, except per share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net Investment Income Per Share 1 $0.55 $0.56 $0.57 $0.58 $0.52 Net Investment Income $13,593 $14,200 $14,804 $15,391 $16,318 2 Dividends Per Share Earned $0.52 $0.54 $0.56 $0.54 $0.49
Slide 9: New Portfolio and Investment Activity
New Portfolio and Investment Activity ($ in thousands, except per share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 New Investments 1 Gross Investments $63,458 $46,673 $78,272 $85,331 $346,483 Less: Sold Investments ($102,139) ($33,815) ($58,481) ($52,648) ($69,556) Total New Investments ($38,681)
Slide 10: Portfolio Overview – Asset Mix
Portfolio Overview – Asset Mix Borrower Attributes2 4% $452M 5.3x 2.2x 5% 4% 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 Hold4 Floating Rate3 Investments3 87% Focus on liquid lo
Slide 11: Portfolio Highlights – Diversification
Portfolio Highlights – Diversification Industry Diversification Borrower Concentration Software 11% Healthcare 9% Strategically focused Professional Top 10 positions Services on 38 resilient 8% represent 9.7% of Other (33 industries the portfolio Industries) IT Services 60% 6% Insurance 6% Highly di
Slide 12: PSBD Internal Rating System
PSBD Internal Rating System • As of March 31, 2024, zero investments were on non-accrual status and the weighted average internal rating of the portfolio at fair value was 3.6. Relative Value Scoring System Criteria Rating 5 0.8% Rating 2 7.2% • Positions assigned a score of 5 to 1, updated on an on
Slide 13: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.52 $17.16 $17.04 $0.09 ($0.49) Q4 2023 NAV Per Share Q1 2024 Net Investment Q1 2024 Regular & Change in Realized & Q1 2024 NAV Per Share Income Supplemental Dividend Unrealized Gain (Loss) Palmer Square Capital BDC Inc. Page 13
Slide 14: Investment Fundings Since Inception
Investment Fundings Since Inception Portfolio companies 181 212 176 191 211 $926 $855 $586 $525 $346 $279 $274 $277 $27 ($35) ($70) ($268) ($247) ($314) ($402) FY 2020 FY 2021 FY 2022 FY 2023 Q1 2024 Gross Investments Sold Investments Total Net Investments Liquid nature of the portfolio preserves op
Slide 15: Palmer Square BDC CLO I – $400.5 Million
Palmer Square BDC CLO I – $400.5 Million • On April 24, 2024, PSBD along with Bank of America as arranging partner, priced Palmer Square BDC CLO I (“PSBD CLO”), a $400.5 million CLO secured by broadly syndicated loans held by PSBD. • Represents the first BDC CLO secured by broadly syndicated loans (
Slide 16: Debt Obligations and Maturity Ladder
Debt Obligations and Maturity Ladder • Attractive non-mark to market financing terms with high-quality financing partners and substantial capacity to invest. Debt Schedule and Maturities Liquidity and Leverage Profile Committed Principal Interest Maturity D/E3 ($ in millions) Amount Outstanding Rate
Slide 17: Historical Quarterly Earned Dividends & Yield
Historical Quarterly Earned Dividends & Yield 17.1% 13.1% 13.4% 12.9% 12.7% 11.4% 11.0% 10.5% $0.07 7.4% $0.64 $0.54 $0.56 $0.54 $0.52 $0.44 $0.44 $0.42 $0.37 3 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 1 1, 2 Regular Dividend Supplemental Dividend Dividend Yield Note: As of 3/31/2024. 1
Slide 18: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Assets Investments (At Fair Value) $1,042,644 $1,062,844 $1,104,713 $1,108,811 $1,393,192 Cash And Cash Equivalents $6,242 $6,737 $3,411 $2,117 $8,255 Receivables And Other $11
Slide 19: Quarterly Operating Results Detail
Quarterly Operating Results Detail ($ in thousands, except per share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Investment Income Interest Income $25,453 $26,167 $27,324 $28,796 $33,260 Dividend Income $677 $1,142 $1,297 $951 $1,255 Other Income $56 $133 $153 $76 $270 Total Investment Income $26,
Slide 20: Investor Relations
Investor Relations Investors@palmersquarebdc.com
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