Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Palmer Square Capital BDC Inc. Announces Fourth Quarter and Fiscal Year Ended 2023 Financial Results By: Palmer Square Capital BDC Inc. via Business Wire February 28, 2024 at 07:10 AM EST 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, 2023. Financial and Operating Highlights Total investment income of $29.8 million for the fourth quarter of 2023, compared to $23.8 million for the prior year period Net investment income of $15.4 million or $0.57 per share for the fourth quarter of 2023, as compared to $12.4 million or $0.51 per share for the comparable period last year Net asset value of $17.04 per share as of December 31, 2023, compared to $16.76 per share as of September 30, 2023 Total realized and unrealized gains of $6.6 million for the fourth quarter of 2023, compared to total realized and unrealized losses of $11.4 million in the fourth quarter of 2022 As of December 31, 2023, total assets were $1.1 billion and total net assets were $462 million Debt-to-equity as of December 31, 2023 was 1.39x, compared to 1.42x as of September 30, 2023 Paid cash distributions to stockholders totaling $0.54 per share for the fourth quarter of 2023 January 31, 2024 net asset value of $17.17 per share “I am pleased to report that Palmer Square Capital BDC Inc. delivered strong fourth quarter and fiscal 2023 results, closing out the year well-positioned to continue to capitalize on opportunities in the liquid debt and private credit markets,” said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. “We are incredibly excited about PSBD’s differentiated investment strategy, which we believe will deliver a compelling yield and long-term total return while mitigating risk due to our active management, higher quality approach, and finally the more liquid nature of the portfolio. We are also incredibly proud of PSBD’s commitment to enhanced transparency and greater shareholder alignment. We look forward to executing our opportunistic credit strategy and delivering shareholder value in the years to come.” $ in thousands, except per share data For the Quarter Ended Financial Highlights 12/31/23 9/30/23 12/31/22 Net Investment Income Per Share1 $0.57 $0.56 $0.51 Net Investment Income $15,391 $14,804 $12,408 NAV Per Share $17.04 $16.76 $14.96 Dividends Earned Per Share2 $0.54 $0.56 $0.64 Portfolio Highlights 12/31/23 9/30/23 12/31/22 Total Fair Value of Investments $1,108,811 $1,104,713 $1,017,212 Number of Industries 38 40 41 Number of Portfolio Companies 191 184 176 Portfolio Yield3 10.51% 11.27% 11.47% Senior Secured Loan4 96% 97% 96% Investments on Non-Accrual 0% 0% 0% Total Return5 4.88% 7.97% 0.21% Debt-to-Equity 1.39x 1.42x 1.76x 1. Net investment income for the period divided by end of period share count. 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. 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 December 31, 2023, we had 227 investments in 191 portfolio companies with an aggregate fair value of approximately $1.0 billion. Based on total fair value of $1.1 billion including short term investments, the portfolio consisted of 85.9% first lien senior secured debt investments, 5.0% second lien senior secured debt investments, 0.4% corporate bond investments, 2.9% CLO mezzanine and equity investments, and 5.8% short-term investments. As of December 31, 2023, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of fiscal year 2023, all debt and short-term investments were income producing, and there were no loans on non-accrual status. As of December 31, 2023, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.51%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.93%. For the fourth quarter of 2023, the principal amount of new investments funded was $85.3 million across 30 new investments. For this period, the Company had $52.6 million aggregate principal amount in sales and repayments. For the full year ended December 31, 2023, the principal amount of new investments funded was $273.7 million across 67 investments. For this period, the Company had $247 million aggregate principal amount in sales and repayments. Liquidity and Capital Resources As of December 31, 2023, the Company had $2.1 million in cash and cash equivalents and approximately $640 million in total aggregate principal amount of debt outstanding. Subject to borrowing base and other restrictions, the Company has available liquidity, consisting of cash and undrawn capacity on credit facilities of approximately $262 million compared to $20.1 million dollars of undrawn investment commitments. Recent Developments On January 17, PSBD priced its initial public offering of approximately 5.5 million shares on the New York Stock Exchange at a price of $16.45 per share. Gross proceeds from the IPO totaled approximately $90 million. Earnings Conference Call The Company will host a conference call on Wednesday, February 28, 2024 at 11:00 am 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. 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 Period January 23, 2020 (Commencement of Operations) through For the Year Ended December 31, December 31, 2023 2022 2021 2020 Per Common Share Operating Performance Net Asset Value, Beginning of Period $ 14.96 $ 20.06 $ 20.15 $ 20.00 Results of Operations: Net Investment Income(1) 2.26 1.78 1.47 1.32 Net Realized and Unrealized Gain (Loss) on Investments(4) 1.98 (5.00 ) (0.18 ) (0.19 ) Net Increase (Decrease) in Net Assets Resulting from Operations 4.24 (3.22 ) 1.29 1.13 Distributions to Common Stockholders Distributions from Net Investment Income (2.16 ) (1.85 ) (1.01 ) (0.98 ) Distributions from Realized Gains - (0.03 ) (0.37 ) - Net Decrease in Net Assets Resulting from Distributions (2.16 ) (1.88 ) (1.38 ) (0.98 ) Net Asset Value, End of Period $ 17.04 $ 14.96 $ 20.06 $ 20.15 Shares Outstanding, End of Period 27,102,794 24,286,628 22,570,331 12,562,805 Ratio/Supplemental Data Net assets, end of period $ 461,955,393 $ 363,443,482 $ 452,797,588 $253,144,971 Weighted-average shares outstanding 25,700,603 23,130,666 15,494,614 11,156,932 Total Return(3) 29.21 % (16.51 %) 8.10 % 4.29 % Portfolio turnover 25 % 27 % 53 % 63 % Ratio of operating expenses to average net assets without waiver(2) 13.15 % 8.28 % 5.54 % 5.69 % Ratio of operating expenses to average net assets with waiver(2) 12.90 % 8.03 % 5.29 % 5.44 % Ratio of net investment income (loss) to average net assets without waiver(2) 13.54 % 9.61 % 6.92 % 7.18 % Ratio of net investment income (loss) to average net assets with waiver(2) 13.79 % 9.86 % 7.17 % 7.43 % 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 December 31, 2023 December 31, 2022 Assets: Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,159,135,422 and $1,120,099,935, respectively) $ 1,108,810,753 $ 1,017,211,732 Cash and cash equivalents 2,117,109 1,650,801 Receivables: Receivable for sales of investments 97,141 31,014,356 Receivable for paydowns of investments 344,509 136,119 Due from investment adviser 1,718,960 234,102 Dividend receivable 301,637 141,997 Interest receivable 8,394,509 6,465,594 Prepaid expenses and other assets 30,100 598,327 Total Assets $ 1,121,814,718 $ 1,057,453,028 Liabilities: Credit facilities, net(1) $ 641,828,805 $ 641,309,417 Payables: Payable for investments purchased 14,710,524 42,750,748 Distributions payable - 6,941,066 Management fee payable 2,252,075 1,872,815 Accrued other general and administrative expenses 1,067,921 1,135,500 Total Liabilities $ 659,859,325 $ 694,009,546 Commitments and contingencies(2) Net Assets: Common Shares, $0.001 par value; 450,000,000 shares authorized; 27,102,794 and 24,286,628 as of December 31, 2023 and December 31, 2022, respectively issued and outstanding $ 27,103 $ 24,287 Additional paid-in capital 520,663,106 473,921,377 Total distributable earnings (accumulated deficit) (58,734,816 ) (110,502,182 ) Total Net Assets $ 461,955,393 $ 363,443,482 Total Liabilities and Net Assets $ 1,121,814,718 $ 1,057,453,028 Net Asset Value Per Common Share $ 17.04 $ 14.96 The accompanying notes are an integral part of these consolidated financial statements. 1. Security or portion thereof held within Palmer Square BDC Funding I, LLC (“PS BDC Funding”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Bank of America, N.A. (“BofA N.A.”) (see Note 6 to the consolidated financial statements). 2. As of December 31, 2023 and December 31, 2022, the Company had an aggregate of $20.1 million and $2.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of December 31, 2023 and December 31, 2022, 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 statement of assets and liabilities. Palmer Square Capital BDC Inc. Consolidated Statement of Operations For the Year Ended December 31 2023 2022 2021 Income: Investment income from non-controlled, non-affiliated investments: Interest income $ 107,739,382 $ 73,705,450 $ 38,897,216 Dividend income 4,066,745 610,203 9,597 Other income 417,480 184,247 778,840 Total investment income from non-controlled, non-affiliated investments 112,223,607 74,499,900 39,685,653 Total Investment Income 112,223,607 74,499,900 39,685,653 Expenses: Interest expense 44,483,152 23,452,169 8,616,661 Management fees 8,408,074 8,328,713 6,369,583 Professional fees 792,645 741,961 758,435 Directors fees 75,000 75,000 75,000 Other general and administrative expenses 1,528,225 1,862,314 1,827,931 Total Expenses 55,287,096 34,460,157 17,647,610 Less: Management fee waiver (1) (1,051,009 ) (1,041,089 ) (796,198 ) Net expenses 54,236,087 33,419,068 16,851,412 Net Investment Income (Loss) 57,987,520 41,080,832 22,834,241 Realized and unrealized gains (losses) on investments and foreign currency transactions Net realized gains (losses): Non-controlled, non-affiliated investments (2,715,413 ) (8,130,187 ) 4,753,263 Total net realized gains (losses) (2,715,413 ) (8,130,187 ) 4,753,263 Net change in unrealized gains (losses): Non-controlled, non-affiliated investments 52,563,544 (107,432,980 ) (8,527,786 ) Total net change in unrealized gains (losses) 52,563,544 (107,432,980 ) (8,527,786 ) Total realized and unrealized gains (losses) 49,848,131 (115,563,167 ) (3,774,523 ) Net Increase (Decrease) in Net Assets Resulting from Operations $ 107,835,651 $ (74,482,335 ) $ 19,059,718 Per Common Share Data: Basic and diluted net investment income per common share $ 2.26 $ 1.78 $ 1.47 Basic and diluted net increase (decrease) in net assets resulting from operations $ 4.20 $ (3.22 ) $ 1.23 Weighted Average Common Shares Outstanding - Basic and Diluted 25,700,603 23,130,666 15,494,614 The accompanying notes are an integral part of these consolidated financial statements. 1. As of December 31, 2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Palmer Square Capital BDC Inc. Portfolio and Investment Activity For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 New investments: Gross investments $ 273,733,424 $ 278,951,054 $ 926,351,937 Less: sold investments (247,083,117 ) (314,355,643 ) (401,760,802 ) Total new investments 26,650,307 (35,404,589 ) 524,591,135 Principal amount of investments funded: First-lien senior secured debt investments $ 267,272,174 $ 247,233,397 $ 829,591,637 Second-lien senior secured debt investments 3,858,750 19,102,118 57,492,916 Corporate bonds 2,602,500 - 2,883,300 Convertible bonds - 3,728,288 1,025,000 Collateralized securities and structured products - debt - - 14,757,907 CLO Equity - 8,887,251 20,101,177 Common stock - - 500,000 Total principal amount of investments funded 273,733,424 278,951,054 926,351,937 Principal amount of investments sold or repaid: First-lien senior secured debt investments 233,535,659 292,852,517 380,386,061 Second-lien senior secured debt investments 8,013,549 11,938,325 12,583,308 Corporate Bonds - 987,500 - Convertible bonds - 4,504,808 3,026 CLO Equity 2,533,909 1,976,080 - Collateralized securities and structured products - debt 3,000,000 1,501,875 8,788,407 Common Stock - 594,538 - Total principal amount of investments sold or repaid 247,083,117 314,355,643 401,760,802 The information presented above is at amortized cost unless otherwise indicated. For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Number of new investment commitments 67 38 155 Average new investment commitment amount $ 3,802,624 $ 4,784,093 $ 4,521,355 Weighted average maturity for new investment commitments 5.19 years 5.95 years 5.85 years Percentage of new debt investment commitments at floating rates 98.82 % 100.00 % 99.42 % Percentage of new debt investment commitments at fixed rates 1.18 % 0.00 % 0.58 % Weighted average interest rate of new investment commitments 10.22 % 9.17 % 4.80 % Weighted average spread over reference rate of new floating rate investment commitments 4.87 % 4.80 % 4.39 % Weighted average interest rate on investment sold or paid down 9.56 % 5.45 % 4.40 % 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/20240227258463/en/Contacts Investors Andy Wedderburn-Maxwell Palmer Square Capital BDC Inc. +1 (913)-386-9006 Investors@palmersquarebdc.com Media Josh Clarkson Prosek Partners PSBD@prosek.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Palmer Square Capital BDC Inc. Announces Fourth Quarter and Fiscal Year Ended 2023 Financial Results By: Palmer Square Capital BDC Inc. via Business Wire February 28, 2024 at 07:10 AM EST 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, 2023. Financial and Operating Highlights Total investment income of $29.8 million for the fourth quarter of 2023, compared to $23.8 million for the prior year period Net investment income of $15.4 million or $0.57 per share for the fourth quarter of 2023, as compared to $12.4 million or $0.51 per share for the comparable period last year Net asset value of $17.04 per share as of December 31, 2023, compared to $16.76 per share as of September 30, 2023 Total realized and unrealized gains of $6.6 million for the fourth quarter of 2023, compared to total realized and unrealized losses of $11.4 million in the fourth quarter of 2022 As of December 31, 2023, total assets were $1.1 billion and total net assets were $462 million Debt-to-equity as of December 31, 2023 was 1.39x, compared to 1.42x as of September 30, 2023 Paid cash distributions to stockholders totaling $0.54 per share for the fourth quarter of 2023 January 31, 2024 net asset value of $17.17 per share “I am pleased to report that Palmer Square Capital BDC Inc. delivered strong fourth quarter and fiscal 2023 results, closing out the year well-positioned to continue to capitalize on opportunities in the liquid debt and private credit markets,” said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. “We are incredibly excited about PSBD’s differentiated investment strategy, which we believe will deliver a compelling yield and long-term total return while mitigating risk due to our active management, higher quality approach, and finally the more liquid nature of the portfolio. We are also incredibly proud of PSBD’s commitment to enhanced transparency and greater shareholder alignment. We look forward to executing our opportunistic credit strategy and delivering shareholder value in the years to come.” $ in thousands, except per share data For the Quarter Ended Financial Highlights 12/31/23 9/30/23 12/31/22 Net Investment Income Per Share1 $0.57 $0.56 $0.51 Net Investment Income $15,391 $14,804 $12,408 NAV Per Share $17.04 $16.76 $14.96 Dividends Earned Per Share2 $0.54 $0.56 $0.64 Portfolio Highlights 12/31/23 9/30/23 12/31/22 Total Fair Value of Investments $1,108,811 $1,104,713 $1,017,212 Number of Industries 38 40 41 Number of Portfolio Companies 191 184 176 Portfolio Yield3 10.51% 11.27% 11.47% Senior Secured Loan4 96% 97% 96% Investments on Non-Accrual 0% 0% 0% Total Return5 4.88% 7.97% 0.21% Debt-to-Equity 1.39x 1.42x 1.76x 1. Net investment income for the period divided by end of period share count. 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. 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 December 31, 2023, we had 227 investments in 191 portfolio companies with an aggregate fair value of approximately $1.0 billion. Based on total fair value of $1.1 billion including short term investments, the portfolio consisted of 85.9% first lien senior secured debt investments, 5.0% second lien senior secured debt investments, 0.4% corporate bond investments, 2.9% CLO mezzanine and equity investments, and 5.8% short-term investments. As of December 31, 2023, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of fiscal year 2023, all debt and short-term investments were income producing, and there were no loans on non-accrual status. As of December 31, 2023, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.51%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.93%. For the fourth quarter of 2023, the principal amount of new investments funded was $85.3 million across 30 new investments. For this period, the Company had $52.6 million aggregate principal amount in sales and repayments. For the full year ended December 31, 2023, the principal amount of new investments funded was $273.7 million across 67 investments. For this period, the Company had $247 million aggregate principal amount in sales and repayments. Liquidity and Capital Resources As of December 31, 2023, the Company had $2.1 million in cash and cash equivalents and approximately $640 million in total aggregate principal amount of debt outstanding. Subject to borrowing base and other restrictions, the Company has available liquidity, consisting of cash and undrawn capacity on credit facilities of approximately $262 million compared to $20.1 million dollars of undrawn investment commitments. Recent Developments On January 17, PSBD priced its initial public offering of approximately 5.5 million shares on the New York Stock Exchange at a price of $16.45 per share. Gross proceeds from the IPO totaled approximately $90 million. Earnings Conference Call The Company will host a conference call on Wednesday, February 28, 2024 at 11:00 am 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. 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 Period January 23, 2020 (Commencement of Operations) through For the Year Ended December 31, December 31, 2023 2022 2021 2020 Per Common Share Operating Performance Net Asset Value, Beginning of Period $ 14.96 $ 20.06 $ 20.15 $ 20.00 Results of Operations: Net Investment Income(1) 2.26 1.78 1.47 1.32 Net Realized and Unrealized Gain (Loss) on Investments(4) 1.98 (5.00 ) (0.18 ) (0.19 ) Net Increase (Decrease) in Net Assets Resulting from Operations 4.24 (3.22 ) 1.29 1.13 Distributions to Common Stockholders Distributions from Net Investment Income (2.16 ) (1.85 ) (1.01 ) (0.98 ) Distributions from Realized Gains - (0.03 ) (0.37 ) - Net Decrease in Net Assets Resulting from Distributions (2.16 ) (1.88 ) (1.38 ) (0.98 ) Net Asset Value, End of Period $ 17.04 $ 14.96 $ 20.06 $ 20.15 Shares Outstanding, End of Period 27,102,794 24,286,628 22,570,331 12,562,805 Ratio/Supplemental Data Net assets, end of period $ 461,955,393 $ 363,443,482 $ 452,797,588 $253,144,971 Weighted-average shares outstanding 25,700,603 23,130,666 15,494,614 11,156,932 Total Return(3) 29.21 % (16.51 %) 8.10 % 4.29 % Portfolio turnover 25 % 27 % 53 % 63 % Ratio of operating expenses to average net assets without waiver(2) 13.15 % 8.28 % 5.54 % 5.69 % Ratio of operating expenses to average net assets with waiver(2) 12.90 % 8.03 % 5.29 % 5.44 % Ratio of net investment income (loss) to average net assets without waiver(2) 13.54 % 9.61 % 6.92 % 7.18 % Ratio of net investment income (loss) to average net assets with waiver(2) 13.79 % 9.86 % 7.17 % 7.43 % 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 December 31, 2023 December 31, 2022 Assets: Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,159,135,422 and $1,120,099,935, respectively) $ 1,108,810,753 $ 1,017,211,732 Cash and cash equivalents 2,117,109 1,650,801 Receivables: Receivable for sales of investments 97,141 31,014,356 Receivable for paydowns of investments 344,509 136,119 Due from investment adviser 1,718,960 234,102 Dividend receivable 301,637 141,997 Interest receivable 8,394,509 6,465,594 Prepaid expenses and other assets 30,100 598,327 Total Assets $ 1,121,814,718 $ 1,057,453,028 Liabilities: Credit facilities, net(1) $ 641,828,805 $ 641,309,417 Payables: Payable for investments purchased 14,710,524 42,750,748 Distributions payable - 6,941,066 Management fee payable 2,252,075 1,872,815 Accrued other general and administrative expenses 1,067,921 1,135,500 Total Liabilities $ 659,859,325 $ 694,009,546 Commitments and contingencies(2) Net Assets: Common Shares, $0.001 par value; 450,000,000 shares authorized; 27,102,794 and 24,286,628 as of December 31, 2023 and December 31, 2022, respectively issued and outstanding $ 27,103 $ 24,287 Additional paid-in capital 520,663,106 473,921,377 Total distributable earnings (accumulated deficit) (58,734,816 ) (110,502,182 ) Total Net Assets $ 461,955,393 $ 363,443,482 Total Liabilities and Net Assets $ 1,121,814,718 $ 1,057,453,028 Net Asset Value Per Common Share $ 17.04 $ 14.96 The accompanying notes are an integral part of these consolidated financial statements. 1. Security or portion thereof held within Palmer Square BDC Funding I, LLC (“PS BDC Funding”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Bank of America, N.A. (“BofA N.A.”) (see Note 6 to the consolidated financial statements). 2. As of December 31, 2023 and December 31, 2022, the Company had an aggregate of $20.1 million and $2.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of December 31, 2023 and December 31, 2022, 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 statement of assets and liabilities. Palmer Square Capital BDC Inc. Consolidated Statement of Operations For the Year Ended December 31 2023 2022 2021 Income: Investment income from non-controlled, non-affiliated investments: Interest income $ 107,739,382 $ 73,705,450 $ 38,897,216 Dividend income 4,066,745 610,203 9,597 Other income 417,480 184,247 778,840 Total investment income from non-controlled, non-affiliated investments 112,223,607 74,499,900 39,685,653 Total Investment Income 112,223,607 74,499,900 39,685,653 Expenses: Interest expense 44,483,152 23,452,169 8,616,661 Management fees 8,408,074 8,328,713 6,369,583 Professional fees 792,645 741,961 758,435 Directors fees 75,000 75,000 75,000 Other general and administrative expenses 1,528,225 1,862,314 1,827,931 Total Expenses 55,287,096 34,460,157 17,647,610 Less: Management fee waiver (1) (1,051,009 ) (1,041,089 ) (796,198 ) Net expenses 54,236,087 33,419,068 16,851,412 Net Investment Income (Loss) 57,987,520 41,080,832 22,834,241 Realized and unrealized gains (losses) on investments and foreign currency transactions Net realized gains (losses): Non-controlled, non-affiliated investments (2,715,413 ) (8,130,187 ) 4,753,263 Total net realized gains (losses) (2,715,413 ) (8,130,187 ) 4,753,263 Net change in unrealized gains (losses): Non-controlled, non-affiliated investments 52,563,544 (107,432,980 ) (8,527,786 ) Total net change in unrealized gains (losses) 52,563,544 (107,432,980 ) (8,527,786 ) Total realized and unrealized gains (losses) 49,848,131 (115,563,167 ) (3,774,523 ) Net Increase (Decrease) in Net Assets Resulting from Operations $ 107,835,651 $ (74,482,335 ) $ 19,059,718 Per Common Share Data: Basic and diluted net investment income per common share $ 2.26 $ 1.78 $ 1.47 Basic and diluted net increase (decrease) in net assets resulting from operations $ 4.20 $ (3.22 ) $ 1.23 Weighted Average Common Shares Outstanding - Basic and Diluted 25,700,603 23,130,666 15,494,614 The accompanying notes are an integral part of these consolidated financial statements. 1. As of December 31, 2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Palmer Square Capital BDC Inc. Portfolio and Investment Activity For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 New investments: Gross investments $ 273,733,424 $ 278,951,054 $ 926,351,937 Less: sold investments (247,083,117 ) (314,355,643 ) (401,760,802 ) Total new investments 26,650,307 (35,404,589 ) 524,591,135 Principal amount of investments funded: First-lien senior secured debt investments $ 267,272,174 $ 247,233,397 $ 829,591,637 Second-lien senior secured debt investments 3,858,750 19,102,118 57,492,916 Corporate bonds 2,602,500 - 2,883,300 Convertible bonds - 3,728,288 1,025,000 Collateralized securities and structured products - debt - - 14,757,907 CLO Equity - 8,887,251 20,101,177 Common stock - - 500,000 Total principal amount of investments funded 273,733,424 278,951,054 926,351,937 Principal amount of investments sold or repaid: First-lien senior secured debt investments 233,535,659 292,852,517 380,386,061 Second-lien senior secured debt investments 8,013,549 11,938,325 12,583,308 Corporate Bonds - 987,500 - Convertible bonds - 4,504,808 3,026 CLO Equity 2,533,909 1,976,080 - Collateralized securities and structured products - debt 3,000,000 1,501,875 8,788,407 Common Stock - 594,538 - Total principal amount of investments sold or repaid 247,083,117 314,355,643 401,760,802 The information presented above is at amortized cost unless otherwise indicated. For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Number of new investment commitments 67 38 155 Average new investment commitment amount $ 3,802,624 $ 4,784,093 $ 4,521,355 Weighted average maturity for new investment commitments 5.19 years 5.95 years 5.85 years Percentage of new debt investment commitments at floating rates 98.82 % 100.00 % 99.42 % Percentage of new debt investment commitments at fixed rates 1.18 % 0.00 % 0.58 % Weighted average interest rate of new investment commitments 10.22 % 9.17 % 4.80 % Weighted average spread over reference rate of new floating rate investment commitments 4.87 % 4.80 % 4.39 % Weighted average interest rate on investment sold or paid down 9.56 % 5.45 % 4.40 % 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/20240227258463/en/Contacts Investors Andy Wedderburn-Maxwell Palmer Square Capital BDC Inc. +1 (913)-386-9006 Investors@palmersquarebdc.com Media Josh Clarkson Prosek Partners PSBD@prosek.com
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, 2023. Financial and Operating Highlights Total investment income of $29.8 million for the fourth quarter of 2023, compared to $23.8 million for the prior year period Net investment income of $15.4 million or $0.57 per share for the fourth quarter of 2023, as compared to $12.4 million or $0.51 per share for the comparable period last year Net asset value of $17.04 per share as of December 31, 2023, compared to $16.76 per share as of September 30, 2023 Total realized and unrealized gains of $6.6 million for the fourth quarter of 2023, compared to total realized and unrealized losses of $11.4 million in the fourth quarter of 2022 As of December 31, 2023, total assets were $1.1 billion and total net assets were $462 million Debt-to-equity as of December 31, 2023 was 1.39x, compared to 1.42x as of September 30, 2023 Paid cash distributions to stockholders totaling $0.54 per share for the fourth quarter of 2023 January 31, 2024 net asset value of $17.17 per share “I am pleased to report that Palmer Square Capital BDC Inc. delivered strong fourth quarter and fiscal 2023 results, closing out the year well-positioned to continue to capitalize on opportunities in the liquid debt and private credit markets,” said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. “We are incredibly excited about PSBD’s differentiated investment strategy, which we believe will deliver a compelling yield and long-term total return while mitigating risk due to our active management, higher quality approach, and finally the more liquid nature of the portfolio. We are also incredibly proud of PSBD’s commitment to enhanced transparency and greater shareholder alignment. We look forward to executing our opportunistic credit strategy and delivering shareholder value in the years to come.” $ in thousands, except per share data For the Quarter Ended Financial Highlights 12/31/23 9/30/23 12/31/22 Net Investment Income Per Share1 $0.57 $0.56 $0.51 Net Investment Income $15,391 $14,804 $12,408 NAV Per Share $17.04 $16.76 $14.96 Dividends Earned Per Share2 $0.54 $0.56 $0.64 Portfolio Highlights 12/31/23 9/30/23 12/31/22 Total Fair Value of Investments $1,108,811 $1,104,713 $1,017,212 Number of Industries 38 40 41 Number of Portfolio Companies 191 184 176 Portfolio Yield3 10.51% 11.27% 11.47% Senior Secured Loan4 96% 97% 96% Investments on Non-Accrual 0% 0% 0% Total Return5 4.88% 7.97% 0.21% Debt-to-Equity 1.39x 1.42x 1.76x 1. Net investment income for the period divided by end of period share count. 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. 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 December 31, 2023, we had 227 investments in 191 portfolio companies with an aggregate fair value of approximately $1.0 billion. Based on total fair value of $1.1 billion including short term investments, the portfolio consisted of 85.9% first lien senior secured debt investments, 5.0% second lien senior secured debt investments, 0.4% corporate bond investments, 2.9% CLO mezzanine and equity investments, and 5.8% short-term investments. As of December 31, 2023, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of fiscal year 2023, all debt and short-term investments were income producing, and there were no loans on non-accrual status. As of December 31, 2023, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.51%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.93%. For the fourth quarter of 2023, the principal amount of new investments funded was $85.3 million across 30 new investments. For this period, the Company had $52.6 million aggregate principal amount in sales and repayments. For the full year ended December 31, 2023, the principal amount of new investments funded was $273.7 million across 67 investments. For this period, the Company had $247 million aggregate principal amount in sales and repayments. Liquidity and Capital Resources As of December 31, 2023, the Company had $2.1 million in cash and cash equivalents and approximately $640 million in total aggregate principal amount of debt outstanding. Subject to borrowing base and other restrictions, the Company has available liquidity, consisting of cash and undrawn capacity on credit facilities of approximately $262 million compared to $20.1 million dollars of undrawn investment commitments. Recent Developments On January 17, PSBD priced its initial public offering of approximately 5.5 million shares on the New York Stock Exchange at a price of $16.45 per share. Gross proceeds from the IPO totaled approximately $90 million. Earnings Conference Call The Company will host a conference call on Wednesday, February 28, 2024 at 11:00 am 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. 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 Period January 23, 2020 (Commencement of Operations) through For the Year Ended December 31, December 31, 2023 2022 2021 2020 Per Common Share Operating Performance Net Asset Value, Beginning of Period $ 14.96 $ 20.06 $ 20.15 $ 20.00 Results of Operations: Net Investment Income(1) 2.26 1.78 1.47 1.32 Net Realized and Unrealized Gain (Loss) on Investments(4) 1.98 (5.00 ) (0.18 ) (0.19 ) Net Increase (Decrease) in Net Assets Resulting from Operations 4.24 (3.22 ) 1.29 1.13 Distributions to Common Stockholders Distributions from Net Investment Income (2.16 ) (1.85 ) (1.01 ) (0.98 ) Distributions from Realized Gains - (0.03 ) (0.37 ) - Net Decrease in Net Assets Resulting from Distributions (2.16 ) (1.88 ) (1.38 ) (0.98 ) Net Asset Value, End of Period $ 17.04 $ 14.96 $ 20.06 $ 20.15 Shares Outstanding, End of Period 27,102,794 24,286,628 22,570,331 12,562,805 Ratio/Supplemental Data Net assets, end of period $ 461,955,393 $ 363,443,482 $ 452,797,588 $253,144,971 Weighted-average shares outstanding 25,700,603 23,130,666 15,494,614 11,156,932 Total Return(3) 29.21 % (16.51 %) 8.10 % 4.29 % Portfolio turnover 25 % 27 % 53 % 63 % Ratio of operating expenses to average net assets without waiver(2) 13.15 % 8.28 % 5.54 % 5.69 % Ratio of operating expenses to average net assets with waiver(2) 12.90 % 8.03 % 5.29 % 5.44 % Ratio of net investment income (loss) to average net assets without waiver(2) 13.54 % 9.61 % 6.92 % 7.18 % Ratio of net investment income (loss) to average net assets with waiver(2) 13.79 % 9.86 % 7.17 % 7.43 % 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 December 31, 2023 December 31, 2022 Assets: Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,159,135,422 and $1,120,099,935, respectively) $ 1,108,810,753 $ 1,017,211,732 Cash and cash equivalents 2,117,109 1,650,801 Receivables: Receivable for sales of investments 97,141 31,014,356 Receivable for paydowns of investments 344,509 136,119 Due from investment adviser 1,718,960 234,102 Dividend receivable 301,637 141,997 Interest receivable 8,394,509 6,465,594 Prepaid expenses and other assets 30,100 598,327 Total Assets $ 1,121,814,718 $ 1,057,453,028 Liabilities: Credit facilities, net(1) $ 641,828,805 $ 641,309,417 Payables: Payable for investments purchased 14,710,524 42,750,748 Distributions payable - 6,941,066 Management fee payable 2,252,075 1,872,815 Accrued other general and administrative expenses 1,067,921 1,135,500 Total Liabilities $ 659,859,325 $ 694,009,546 Commitments and contingencies(2) Net Assets: Common Shares, $0.001 par value; 450,000,000 shares authorized; 27,102,794 and 24,286,628 as of December 31, 2023 and December 31, 2022, respectively issued and outstanding $ 27,103 $ 24,287 Additional paid-in capital 520,663,106 473,921,377 Total distributable earnings (accumulated deficit) (58,734,816 ) (110,502,182 ) Total Net Assets $ 461,955,393 $ 363,443,482 Total Liabilities and Net Assets $ 1,121,814,718 $ 1,057,453,028 Net Asset Value Per Common Share $ 17.04 $ 14.96 The accompanying notes are an integral part of these consolidated financial statements. 1. Security or portion thereof held within Palmer Square BDC Funding I, LLC (“PS BDC Funding”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Bank of America, N.A. (“BofA N.A.”) (see Note 6 to the consolidated financial statements). 2. As of December 31, 2023 and December 31, 2022, the Company had an aggregate of $20.1 million and $2.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of December 31, 2023 and December 31, 2022, 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 statement of assets and liabilities. Palmer Square Capital BDC Inc. Consolidated Statement of Operations For the Year Ended December 31 2023 2022 2021 Income: Investment income from non-controlled, non-affiliated investments: Interest income $ 107,739,382 $ 73,705,450 $ 38,897,216 Dividend income 4,066,745 610,203 9,597 Other income 417,480 184,247 778,840 Total investment income from non-controlled, non-affiliated investments 112,223,607 74,499,900 39,685,653 Total Investment Income 112,223,607 74,499,900 39,685,653 Expenses: Interest expense 44,483,152 23,452,169 8,616,661 Management fees 8,408,074 8,328,713 6,369,583 Professional fees 792,645 741,961 758,435 Directors fees 75,000 75,000 75,000 Other general and administrative expenses 1,528,225 1,862,314 1,827,931 Total Expenses 55,287,096 34,460,157 17,647,610 Less: Management fee waiver (1) (1,051,009 ) (1,041,089 ) (796,198 ) Net expenses 54,236,087 33,419,068 16,851,412 Net Investment Income (Loss) 57,987,520 41,080,832 22,834,241 Realized and unrealized gains (losses) on investments and foreign currency transactions Net realized gains (losses): Non-controlled, non-affiliated investments (2,715,413 ) (8,130,187 ) 4,753,263 Total net realized gains (losses) (2,715,413 ) (8,130,187 ) 4,753,263 Net change in unrealized gains (losses): Non-controlled, non-affiliated investments 52,563,544 (107,432,980 ) (8,527,786 ) Total net change in unrealized gains (losses) 52,563,544 (107,432,980 ) (8,527,786 ) Total realized and unrealized gains (losses) 49,848,131 (115,563,167 ) (3,774,523 ) Net Increase (Decrease) in Net Assets Resulting from Operations $ 107,835,651 $ (74,482,335 ) $ 19,059,718 Per Common Share Data: Basic and diluted net investment income per common share $ 2.26 $ 1.78 $ 1.47 Basic and diluted net increase (decrease) in net assets resulting from operations $ 4.20 $ (3.22 ) $ 1.23 Weighted Average Common Shares Outstanding - Basic and Diluted 25,700,603 23,130,666 15,494,614 The accompanying notes are an integral part of these consolidated financial statements. 1. As of December 31, 2023, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Palmer Square Capital BDC Inc. Portfolio and Investment Activity For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 New investments: Gross investments $ 273,733,424 $ 278,951,054 $ 926,351,937 Less: sold investments (247,083,117 ) (314,355,643 ) (401,760,802 ) Total new investments 26,650,307 (35,404,589 ) 524,591,135 Principal amount of investments funded: First-lien senior secured debt investments $ 267,272,174 $ 247,233,397 $ 829,591,637 Second-lien senior secured debt investments 3,858,750 19,102,118 57,492,916 Corporate bonds 2,602,500 - 2,883,300 Convertible bonds - 3,728,288 1,025,000 Collateralized securities and structured products - debt - - 14,757,907 CLO Equity - 8,887,251 20,101,177 Common stock - - 500,000 Total principal amount of investments funded 273,733,424 278,951,054 926,351,937 Principal amount of investments sold or repaid: First-lien senior secured debt investments 233,535,659 292,852,517 380,386,061 Second-lien senior secured debt investments 8,013,549 11,938,325 12,583,308 Corporate Bonds - 987,500 - Convertible bonds - 4,504,808 3,026 CLO Equity 2,533,909 1,976,080 - Collateralized securities and structured products - debt 3,000,000 1,501,875 8,788,407 Common Stock - 594,538 - Total principal amount of investments sold or repaid 247,083,117 314,355,643 401,760,802 The information presented above is at amortized cost unless otherwise indicated. For the Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Number of new investment commitments 67 38 155 Average new investment commitment amount $ 3,802,624 $ 4,784,093 $ 4,521,355 Weighted average maturity for new investment commitments 5.19 years 5.95 years 5.85 years Percentage of new debt investment commitments at floating rates 98.82 % 100.00 % 99.42 % Percentage of new debt investment commitments at fixed rates 1.18 % 0.00 % 0.58 % Weighted average interest rate of new investment commitments 10.22 % 9.17 % 4.80 % Weighted average spread over reference rate of new floating rate investment commitments 4.87 % 4.80 % 4.39 % Weighted average interest rate on investment sold or paid down 9.56 % 5.45 % 4.40 % 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/20240227258463/en/
Investors Andy Wedderburn-Maxwell Palmer Square Capital BDC Inc. +1 (913)-386-9006 Investors@palmersquarebdc.com Media Josh Clarkson Prosek Partners PSBD@prosek.com
