Palmer Square Capital Bdc Inc. · NYSE:PSBD
Palmer Square Capital Bdc — Q2 2026 Earnings Presentation
22 slides from Palmer Square Capital Bdc's earnings presentation, August 2026
Slide 1: Q2 2026 Earnings
Q2 2026 Earnings Palmer Square BDC Inc. (NYSE: PSBD) August 2026 1
Slide 2: Forward-looking Statements
Q2 2026 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
Q2 2026 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
Q2 2026 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 $3.7B $1.1B $463M 11.7% Invested Capital Fair Value Investment Weighted Average
Slide 5: Palmer Square Capital Management LLC Overview
Q2 2026 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 79 employees and $36.9 billion AUM across strategies, client base and product types Firm AUM Profile Founded 2009 5% Headquarters Miss
Slide 6: Research Biases and Philosophy
Q2 2026 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
Q2 2026 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
Q2 2026 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 Institutional Pro Rata $1,600
Slide 9: Second Quarter 2026 Highlights
Q2 2026 EARNINGS Second Quarter 2026 Highlights Earnings Portfolio Activity Balance Sheet Other Highlights Recent Developments $27.3M $1.1B $1.1B 1.37% • On August 3, 2026, PSBD’s Board of Directors declared a Total investment income Total portfolio of long-term investments Total assets PIK income a
Slide 10: Financial and Portfolio Highlights
Q2 2026 EARNINGS Financial and Portfolio Highlights ($ in thousands, except per share data) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net Investment Income Per Share 1 $0.43 $0.43 $0.41 $0.35 $0.39 Net Investment Income $13,842 $13,641 $13,068 $11,037 $12,041 Dividends Per Share Earned 2 $0.42 $0.42 $
Slide 11: New Portfolio and Investment Activity
Q2 2026 EARNINGS New Portfolio and Investment Activity ($ in thousands, except per share data) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 New Investments 1 Gross Investments $92,362 $138,666 $91,367 $109,363 $72,369 Less: Sold Investments $(133,282) $(156,028) $(148,308) $(79,940) $(109,836) Total New
Slide 12: Portfolio Overview – Asset Mix
Q2 2026 EARNINGS Portfolio Overview – Asset Mix Borrower Attributes2 First Lien Focused Portfolio $463M 5.6x 2.5x Weighted Average Weighted Average Weighted LTM EBITDA 1st Lien Leverage Average 4% 4% Interest 5% Coverage First Lien PSBD Portfolio Attributes 96% ~$4.2M 98% Second Lien Senior Secured
Slide 13: Portfolio Company EBITDA & Credit Statistics
Q2 2026 EARNINGS Portfolio Company EBITDA & Credit Statistics $452 $463 $421 $436 $412 5.6x 5.5x 5.5x 5.5x 5.6x 2.5x 2.6x 2.4x 2.5x 2.2x 2Q25 3Q25 4Q25 1Q26 2Q26 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
Q2 2026 EARNINGS Strong Value Creation Through Bouts of Uncertainty Industry Diversification Borrower Concentration Strategically focused on 45 resilient industries Top 10 positions represent 10.7% of the portfolio Nexus Buyer LLC 1.4% Gainwell Acquisition 11% Software Corp. 1.3% Infinite Bidco, LLC
Slide 15: PSBD Internal Rating System
Q2 2026 EARNINGS PSBD Internal Rating System Relative Value Scoring System Criteria As of June 30, 2026, two portfolio companies were on non-accrual ▪ Positions assigned a score of 5 to 1, status and the weighted average internal rating of the portfolio at fair updated on an ongoing basis value was
Slide 16: Net Asset Value Per Share Bridge
Q2 2026 EARNINGS Net Asset Value Per Share Bridge $13.30 $0.39 $(0.39) $13.21 $(0.09) Q1 2026 NAV Per Share Q2 2026 Net Investment Q2 2026 Regular & Change in Realized & Q2 2026 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
Q2 2026 EARNINGS Investment Fundings Since Inception Gross Investments Sold Investments Total Net Investments $855 $926 $774 $586 $525 $427 $279 $274 $305 $182 $27 $(35) $(8) $(155) $(190) $(268) $(314) $(247) $(402) $(469) $(582) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 1H 2026 Portfolio 181
Slide 18: Debt Obligations and Maturity Ladder
Q2 2026 EARNINGS Debt Obligations and Maturity Ladder Attractive 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 1.51x 1.53x 1.54x 1.70x 1.71x Committed Principal Interest Maturit
Slide 19: Historical Quarterly Earned Dividends & Yield
Q2 2026 EARNINGS Historical Quarterly Earned Dividends & Yield 17.1% 12.9% 13.1% 13.4% 12.7% 11.4% 11.3% 11.6% 11.6% 11.8% 11.2% 10.7% 10.9% 11.1% 9.8% $0.07 $0.05 $0.05 $0.06 $0.06 $0.06 $0.07 $0.01 $0.03 $0.03 $0.64 $0.54 $0.56 $0.54 $0.52 $0.42 $0.42 $0.42 $0.42 $0.36 $0.36 $0.36 $0.36 $0.36 $0.3
Slide 20: Quarterly Statements of Financial Condition
Q2 2026 EARNINGS Quarterly Statements of Financial Condition ($ in thousands, except per share data) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Assets Investments (At Fair Value) $1,279,793 $1,258,988 $1,203,640 $1,154,637 $1,113,377 Cash And Cash Equivalents $16,436 $4,201 $3,217 $1,489 $2,449 Receiva
Slide 21: Quarterly Operating Results Detail
Q2 2026 EARNINGS Quarterly Operating Results Detail ($ in thousands, except per share data) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Investment Income Interest Income $30,024 $30,432 $27,990 $25,099 $25,816 Dividend Income $481 $657 $566 $421 $358 Payment-In-Kind Interest Income $802 $361 $(24)1 $431
Slide 22: Palmer Square BDC Investor Relations
Palmer Square BDC Investor Relations investors@palmersquarebdc.com
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