Palmer Square Capital BDC Inc. Announces Fourth Quarter and Full Year 2025 Financial Results

About this update from Palmer Square Capital Bdc Inc.

Declares First Quarter 2026 Base Dividend of $0.36 Per Share with Supplemental Dividend Expected to be Announced in March MISSION WOODS, Kan., February 26, 2026 --( 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 fourth quarter and full year ended December 31, 2025. Financial and Operating Highlights "We are pleased with Palmer Square Capital BDC’s steady execution throughout 2025 amid dynamic market conditions," said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. "While it appears the market remains some distance from a sustained increase in transaction volumes, sponsor engagement continues to build, and pipelines across both the broadly syndicated and private credit markets are healthier than a year ago. We believe our credit performance within the portfolio remains solid, reflected in our low non-accrual rate in a normalizing environment. Looking ahead, we believe our disciplined underwriting and highly diversified portfolio position us to deliver strong outcomes for shareholders over the long term." Portfolio and Investment Activity As of December 31, 2025, we had 264 investments in 205 portfolio companies with an aggregate fair value of approximately $1.1 billion. Based on a total fair value of $1.2 billion, including short term investments, the portfolio consisted of approximately 84.3% first lien senior secured debt investments, 5.0% second lien senior secured debt investments, 6.0% short-term investments, 3.4% collateralized loan obligation structured credit funds ("CLOs") mezzanine and equity investments, 0.7% corporate bond investments, and 0.6% equity investments. As of December 31, 2025, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of the fourth quarter, 99.91% of the portfolio at fair value was income producing. There were three portfolio companies on non-accrual status. As of December 31, 2025, the weighted average total yield to maturity of debt and income producing securities at fair value was 11.30%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.15%. For the fourth quarter of 2025, the principal amount of new investments funded was $91.4 million which included 24 investments at an average value of approximately $3.4 million. For this period, the Company had $148.3 million aggregate principal amount in sales and repayments. Liquidity and Capital Resources As of December 31, 2025, the Company had $3.2 million in cash and cash equivalents and approximately $716.5 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 $311.3 million compared to $21.5 million of unfunded investment commitments as of December 31, 2025. Recent Developments On February 26, 2026, PSBD’s Board of Directors announced that it had declared a first quarter regular base dividend distribution of $0.36 per share, payable on April 9, 2026, to shareholders of record as of March 27, 2026. We expect to announce an additional quarterly supplemental dividend distribution for the first quarter of 2026 in March. Earnings Conference Call The Company will host a conference call on Thursday, February 26, 2026, 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. The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial statements.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260225458868/en/ Contacts Investors Matt Bloomfield and Jeremy Goff Palmer Square Capital BDC Inc. [email protected] Media Josh Clarkson Prosek Partners [email protected]

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