PSBD 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  

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

• Total investment income of $31.2 million for the first quarter of 2025, compared to $34.8 million for the prior year period
• Net investment income of $12.9 million or $0.40 per share for the first quarter of 2025, as compared to $16.3 million or $0.52 per share for the comparable period last year
• Net asset value of $15.85 per share as of March 31, 2025, compared to $16.50 per share as of December 31, 2024
• Total net realized and unrealized losses of $21.3 million for the first quarter of 2025, compared to gains of $6.6 million in the first quarter of 2024
• As of March 31, 2025, total assets were $1.4 billion and total net assets were $515.8 million
• Debt-to-equity as of March 31, 2025 was 1.50x, unchanged from 1.50x as of December 31, 2024
• Paid cash distributions to stockholders totaling $0.39 per share for the first quarter of 2025
• 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. In accordance with our dividend policy, we expect to announce a supplemental dividend in June
• In the first quarter, we had only $507.9 thousand of PIK income, or 1.63% of total investment income

“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.”

$ in thousands, except per share data

 

 

For the Quarter Ended

 

 

 

3/31/25

 

12/31/24

 

3/31/24

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

Net Investment Income Per Share1

 

$

0.40

 

$

0.45

 

$

0.52

 

Net Investment Income

 

$

12,913

 

$

14,796

 

$

16,318

 

NAV Per Share

 

$

15.85

 

$

16.50

 

$

17.16

 

Dividends Earned Per Share2

 

$

0.39

 

$

0.48

 

$

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/25

 

 

12/31/24

 

 

3/31/24

 

Portfolio Highlights

 

 

 

 

 

 

 

 

 

 

Total Fair Value of Investments

 

$

1,334,314

 

$

1,407,131

 

$

1,393,192

 

Number of Industries

 

 

39

 

 

38

 

 

39

 

Number of Portfolio Companies

 

 

209

 

 

207

 

 

211

 

Portfolio Yield3

 

 

10.37%

 

 

10.65%

 

 

10.11%

 

Senior Secured Loan4

 

 

96%

 

 

96%

 

 

96%

 

Investments on Non-Accrual5

 

 

0.24%

 

 

0.08%

 

 

0.00%

 

Total Return6

 

 

(1.05)%

 

 

2.36%

 

 

3.70%

 

Debt-to-Equity

 

 

1.50x

 

 

1.50x

 

 

1.42x

 

1. Net investment income for the period divided by the weighted average share count for the period.
2. Dividend amount reflects dividend earned in period.
3. Weighted average total yield of debt and income producing securities at fair value.
4. As a percentage of long-term investments, at fair value.
5. As a percentage of total investments, at fair value.
6. 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.

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:

• United States: +1 (888) 596-4144
• International: +1 (646) 968-2525
• Event Plus Entry Passcode: 1803382#
• Live Audio Webcast

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.

Financial Highlights

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

2024

 

Per Common Share Operating Performance

 

 

 

 

 

Net Asset Value, Beginning of Period

 

$16.50

 

$17.04

 

 

 

 

 

 

 

Results of Operations:

 

 

 

 

 

Net Investment Income(1)

 

0.40

 

0.52

 

Net Realized and Unrealized Gain (Loss) on Investments(4)

 

(0.66)

 

0.09

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

(0.26)

 

0.61

 

 

 

 

 

 

 

Distributions to Common Stockholders

 

 

 

 

 

Distributions from Net Investment Income

 

(0.39)

 

(0.49)

 

Net Decrease in Net Assets Resulting from Distributions

 

(0.39)

 

(0.49)

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$15.85

 

$17.16

 

 

 

 

 

 

 

Shares Outstanding, End of Period

 

32,534,040

 

32,552,794

 

 

 

 

 

 

 

Ratio/Supplemental Data

 

 

 

 

 

Net assets, end of period

 

$515,807,254

 

$558,537,164

 

Weighted-average shares outstanding

 

32,602,053

 

31,594,552

 

Total Return(3)

 

(1.05)%

 

3.70%

 

Portfolio turnover

 

8%

 

6%

 

Ratio of operating expenses to average net assets without waiver(2)

 

13.72%

 

13.70%

 

Ratio of operating expenses to average net assets with waiver(2)

 

13.72%

 

13.66%

 

Ratio of net investment income (loss) to average net assets without waiver(2)

 

9.68%

 

12.03%

 

Ratio of net investment income (loss) to average net assets with waiver(2)

 

9.68%

 

12.07%

 

(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.

Palmer Square Capital BDC Inc.

Consolidated Statement of Assets and Liabilities

 

 

 

March 31, 2025 (Unaudited)

 

 

December 31, 2024

 

Assets:

 

 

 

 

 

 

Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,397,203,293 and $1,454,611,467, respectively)

 

$

1,334,314,263

 

 

$

1,407,130,945

 

Cash and cash equivalents

 

 

2,872,420

 

 

 

2,766,409

 

Receivables:

 

 

 

 

 

 

Receivable for sales of investments

 

 

14,162,616

 

 

 

7,799,523

 

Receivable for paydowns of investments

 

 

846,451

 

 

 

1,347,516

 

Due from investment adviser

 

 

462,835

 

 

 

248,110

 

Dividend receivable

 

 

200,827

 

 

 

259,625

 

Interest receivable

 

 

10,007,932

 

 

 

11,458,267

 

Prepaid expenses and other assets

 

 

62,378

 

 

 

32,364

 

Total Assets

 

$

1,362,929,722

 

 

$

1,431,042,759

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Credit facilities (net of deferred financing costs of $4,985,647 and $5,375,986, respectively) (Note 6)

 

$

472,325,212

 

 

$

501,650,602

 

Notes (net of deferred financing costs of $1,714,449 and $1,748,822, respectively) (Note 6)

 

 

302,126,552

 

 

 

302,505,057

 

Payables:

 

 

 

 

 

 

Payable for investments purchased

 

 

54,828,596

 

 

 

67,460,523

 

Distributions payable

 

 

12,691,089

 

 

 

15,649,925

 

Management fee payable

 

 

2,333,675

 

 

 

2,413,798

 

Incentive fee payable

 

 

1,842,706

 

 

 

2,149,132

 

Accrued other general and administrative expenses

 

 

974,638

 

 

 

1,368,753

 

Total Liabilities

 

$

847,122,468

 

 

$

893,197,790

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

Common Shares, $0.001 par value; 450,000,000 shares authorized; 32,534,040 and 32,600,193 as of March 31, 2025 and December 31, 2024, respectively issued and outstanding

 

$

32,534

 

 

$

32,600

 

Additional paid-in capital

 

 

610,164,815

 

 

 

611,122,164

 

Total distributable earnings (accumulated deficit)

 

 

(94,390,095

)

 

 

(73,309,795

)

Total Net Assets

 

$

515,807,254

 

 

$

537,844,969

 

Total Liabilities and Net Assets

 

$

1,362,929,722

 

 

$

1,431,042,759

 

Net Asset Value Per Common Share

 

$

15.85

 

 

$

16.50

 

The accompanying notes are an integral part of these consolidated financial statements.

(Note 6)

 

See Note 6 to the consolidated financial statements for a description of the Company’s borrowings, including its revolving credit facility with Bank of America, N.A., its credit facility with Wells Fargo Bank, National Association, and its term debt securitization (CLO transaction).

(Note 9)

 

As of March 31, 2025 and December 31, 2024, the Company had an aggregate of $20.2 million and $21.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of March 31, 2025 and December 31, 2024, there were no capital calls or draw requests made by the portfolio companies to fund these commitments. Such commitments are generally up to the Company’s discretion to approve or are subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

Palmer Square Capital BDC Inc.

Consolidated Statement of Operations

 

 

 

For the Three Months Ended March 31,

 

 

2025

 

 

2024

 

 

Income:

 

 

 

 

 

 

 

Investment income from non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

Interest income

 

$

29,819,663

 

 

$

33,259,959

 

 

Dividend income

 

 

574,336

 

 

 

1,254,696

 

 

Payment-in-kind interest income

 

 

507,850

 

 

 

-

 

 

Other income

 

 

312,430

 

 

 

270,288

 

 

Total investment income from non-controlled, non-affiliated investments

 

 

31,214,279

 

 

 

34,784,943

 

 

Total Investment Income

 

 

31,214,279

 

 

 

34,784,943

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Incentive fees

 

 

1,842,706

 

 

 

1,924,752

 

 

Interest expense

 

 

12,969,757

 

 

 

13,178,830

 

 

Management fees

 

 

2,333,675

 

 

 

2,416,239

 

 

Professional fees

 

 

312,732

 

 

 

237,943

 

 

Directors fees

 

 

36,987

 

 

 

37,295

 

 

Other general and administrative expenses

 

 

805,271

 

 

 

722,166

 

 

Total Expenses

 

 

18,301,128

 

 

 

18,517,225

 

 

Less: Management fee waiver (Note 3)

 

 

—

 

 

 

(50,511

)

 

Net expenses

 

 

18,301,128

 

 

 

18,466,714

 

 

Net Investment Income (Loss)

 

 

12,913,151

 

 

 

16,318,229

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gains (losses) on investments and foreign currency transactions

 

 

 

 

 

 

 

Net realized gains (losses):

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(5,894,493

)

 

 

(1,736,331

)

 

Total net realized gains (losses)

 

 

(5,894,493

)

 

 

(1,736,331

)

 

Net change in unrealized gains (losses):

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(15,407,869

)

 

 

8,298,242

 

 

Total net change in unrealized gains (losses)

 

 

(15,407,869

)

 

 

8,298,242

 

 

Total realized and unrealized gains (losses)

 

 

(21,302,362

)

 

 

6,561,911

 

 

 

 

 

 

 

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

(8,389,211

)

 

$

22,880,140

 

 

 

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

 

 

Basic and diluted net investment income per common share

 

$

0.40

 

 

$

0.52

 

 

Basic and diluted net increase (decrease) in net assets resulting from operations

 

$

(0.26

)

 

$

0.72

 

 

Weighted Average Common Shares Outstanding - Basic and Diluted

 

 

32,602,053

 

 

 

31,594,552

 

 

The accompanying notes are an integral part of these consolidated financial statements.

(Note 3)

 

Prior to the IPO, the base management fee was 2.00% of the average value of the weighted average (based on the number of shares outstanding each day in the quarter) of the Company’s total net assets at the end of the two most recently completed calendar quarters. The Investment Advisor, however, during any period prior to the IPO, agreed to waive its right to receive management fees in excess of an annual rate of 1.75% of the average value of the weighted average total net assets at the end of each of our two most recently completed calendar quarters. The Investment Advisor will not be permitted to recoup any base management fees waived for any period of time prior to the IPO.

Palmer Square Capital BDC Inc.

Portfolio and Investment Activity

 

 

 

For the Three Months Ended March 31,

 

 

 

 

2025

 

 

2024

 

 

New investments:

 

 

 

 

 

 

 

Gross investments

 

$

104,323,107

 

 

$

346,482,823

 

 

Less: sold investments

 

 

(144,369,364

)

 

 

(69,556,336

)

 

Total new investments

 

 

(40,046,257

)

 

 

276,926,487

 

 

 

 

 

 

 

 

 

 

Principal amount of investments funded:

 

 

 

 

 

 

 

First-lien senior secured debt investments

 

$

97,436,250

 

 

$

312,111,711

 

 

Second-lien senior secured debt investments

 

 

—

 

 

 

10,797,500

 

 

Corporate bonds

 

 

—

 

 

 

—

 

 

Convertible bonds

 

 

—

 

 

 

—

 

 

Collateralized securities and structured products - debt

 

 

—

 

 

 

23,573,612

 

 

CLO Equity

 

 

—

 

 

 

—

 

 

Common stock

 

 

6,886,857

 

 

 

—

 

 

Total principal amount of investments funded

 

 

104,323,107

 

 

 

346,482,823

 

 

 

 

 

 

 

 

 

 

Principal amount of investments sold or repaid:

 

 

 

 

 

 

 

First-lien senior secured debt investments

 

$

138,003,373

 

 

$

54,991,776

 

 

Second-lien senior secured debt investments

 

 

3,203,994

 

 

 

9,060,000

 

 

Corporate Bonds

 

 

—

 

 

 

—

 

 

Convertible bonds

 

 

—

 

 

 

—

 

 

Collateralized securities and structured products - debt

 

 

2,900,000

 

 

 

1,249,932

 

 

CLO Equity

 

 

261,997

 

 

 

4,254,628

 

 

Common Stock

 

 

—

 

 

 

—

 

 

Total principal amount of investments sold or repaid

 

 

144,369,364

 

 

 

69,556,336

 

 

 

 

For the Three Months Ended March 31,

 

 

2025

 

2024

Number of new investment commitments

 

23

 

36

Average new investment commitment amount

 

$3,855,336

 

$4,052,057

Weighted average maturity for new investment commitments

 

5.59 years

 

6.18 years

Percentage of new debt investment commitments at floating rates

 

100.00%

 

100.00%

Percentage of new debt investment commitments at fixed rates

 

0.00%

 

0.00%

Weighted average interest rate of new investment commitments(1)

 

8.52%

 

10.19%

Weighted average spread over reference rate of new floating rate investment commitments(2)

 

4.21%

 

4.81%

Weighted average interest rate on long-term investments sold or paid down

 

8.33%

 

7.99%

(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/

Investors Matt Bloomfield and Jeremy Goff Palmer Square Capital BDC Inc. Investors@palmersquarebdc.com Media Josh Clarkson Prosek Partners PSBD@prosek.com