Palmer Square Capital BDC Inc. Announces First Quarter 2025 Financial Results

About this update from Palmer Square Capital Bdc Inc.

Declares Second Quarter 2025 Base Dividend of $0.36 Per Share with Supplemental Dividend Expected to be Announced in June   MISSION WOODS, Kansas, May 07, 2025 --( BUSINESS WIRE )--Palmer Square Capital BDC Inc. (NYSE: PSBD) ("PSBD" or the "Company"), an externally managed business development company, today announced its financial results for the first quarter ended March 31, 2025. Financial and Operating Highlights "In the first quarter of 2025, Palmer Square Capital BDC demonstrated the strength and flexibility of its investment strategy, rooted in both liquid credit opportunities and senior-secured private credit investments," said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. "While macro uncertainty persists, Palmer Square was purpose built to perform during times of volatility. We founded Palmer Square Capital Management in the wake of the Great Financial Crisis, and we’ve since scaled the broader platform to more than $34 billion in assets under management. Similarly, we established PSBD with a focus on shareholder alignment, providing a differentiated fee structure and prioritizing transparency in our monthly NAV and quarterly portfolio disclosure. We believe the current discount to NAV provides for great value. And, importantly, Palmer Square’s investment team is continuing to find opportunities, which we believe preserve our BDC’s leading credit quality while delivering attractive yield and creating long-term value for our fellow shareholders." Portfolio and Investment Activity As of March 31, 2025, we had 260 investments in 209 portfolio companies with an aggregate fair value of approximately $1.3 billion. Based on a total fair value of $1.3 billion, including short term investments, the portfolio consisted of 86.2% first lien senior secured debt investments, 5.4% second lien senior secured debt investments, 4.3% short-term investments, 3.3% collateralized loan obligation structured credit funds ("CLOs") mezzanine and equity investments, 0.3% corporate bond investments, and 0.5% equity investments. As of March 31, 2025, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of the first quarter, 99.76% of the portfolio at fair value was income producing. There were three loans on non-accrual status. As of March 31, 2025, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.37%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.48%. For the first quarter of 2025, the principal amount of new investments funded was $104.3 million which included 23 investments at an average value of approximately $3.9 million. For this period, the Company had $144.4 million aggregate principal amount in sales and repayments. Liquidity and Capital Resources As of March 31, 2025, the Company had $2.9 million in cash and cash equivalents and approximately $774.5 million in total aggregate principal amount of debt outstanding. Subject to borrowing base and other restrictions, the Company had available liquidity, consisting of cash and undrawn capacity on credit facilities of approximately $229.5 million compared to $20.2 million of undrawn investment commitments as of March 31, 2025. Recent Developments On May 07, 2025, PSBD’s Board of Directors announced that it had declared a second quarter regular base dividend distribution of $0.36 per share payable on July 14, 2025, to shareholders of record as of June 27, 2025. We expect to announce an additional quarterly supplemental dividend distribution for the second quarter of 2025 in June. Earnings Conference Call The Company will host a conference call on Wednesday, May 07, 2025, at 1:00 pm ET to review its financial performance and conduct a question-and-answer session. To participate in the earnings call, participants should register online at the Palmer Square Investor Relations website. To avoid potential delays, please join at least 10 minutes prior to the start of the call. The conference call can be accessed through the following links: A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Palmer Square Investor Relations website. About Palmer Square Capital BDC Inc. Palmer Square Capital BDC Inc. (NYSE: PSBD) is an externally managed, non-diversified closed-end management investment company that primarily lends to and invests in corporate debt loans, including but not limited to large private U.S. companies in the broadly syndicated loan market, as well as the direct large cap private credit market. PSBD has elected to be regulated as a business development company under the Investment Company Act of 1940. PSBD’s investment objective is to maximize total return, comprised of current income and capital appreciation. PSBD’s current investment focus is guided by two strategies that facilitate its investment opportunities and core competencies: (1) investing in corporate debt loans and, to a lesser extent, (2) investing in other debt securities which may include collateralized loan obligation debt and equity. PSBD’s investment activities are managed by its investment adviser, Palmer Square BDC Advisor LLC, an affiliate of Palmer Square Capital Management LLC. Forward-Looking Statements Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. The forward-looking statements may include statements as to our future base and supplemental dividend distributions and the prospects of our portfolio companies. These and other forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "project," "estimate," "intend," "continue," "target," or "believe" or the negatives thereof or other variations thereon or comparable terminology. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in PSBD’s filings with the SEC. PSBD undertakes no duty to update any forward-looking statement made herein unless required by law. All forward-looking statements speak only as of the date of this press release. Although PSBD undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that PSBD may make directly to you or through reports that in the future may be filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. (1) The per common share data was derived by using weighted average shares outstanding. (2) The ratios reflect an annualized amount. (3) Total return is calculated as the change in net asset value ("NAV") per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. Total return is not annualized. Assumes reinvestment of distributions. (4) Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Consolidated Statements of Operations due to share transactions during the period. The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial statements. (1) New CLO equity investments do not have an ascribed interest rate and are therefore excluded from the calculation. (2) Variable rate loans bear interest at a rate that may be determined by reference to either a) LIBOR (which can include one-, two-, three- or six-month LIBOR) or b) the CME Term Secured Overnight Financing Rate ("SOFR" or "S") (which can include one-, three-, or six-month SOFR), which resets periodically based on the terms of the loan agreement. At the borrower’s option, loans may instead reference an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate), which also resets periodically based on the terms of the loan agreements. Loans that reference SOFR may include a Credit Spread Adjustment ("CSA"), where the CSA is a defined additional spread amount based on the tenor of SOFR the borrower selects (making the reference rate S+CSA). View source version on businesswire.com: https://www.businesswire.com/news/home/20250506424843/en/ Contacts Investors Matt Bloomfield and Jeremy Goff Palmer Square Capital BDC Inc. [email protected] Media Josh Clarkson Prosek Partners [email protected]

View stock analysis, news, and events for Palmer Square Capital Bdc Inc.