[Management View]
Key metrics: $138.7 million deployed during Q3 2025, total investment income of $31.7 million, net investment income of $13.6 million, NAV per share of $15.39.
Strategic priorities: Focus on senior secured investments, portfolio diversification across 42 industries, maintaining liquidity, and active balance sheet management.

[Outlook]
Performance guidance: Board declared a base dividend of $0.36 per share for Q4 2025, with a supplemental dividend announcement expected in December.
Future plans: Continued emphasis on shareholder returns through supplemental dividends and share repurchases, leveraging private credit opportunities, and maintaining transparency with monthly NAV disclosures.

[Financial Performance]
YoY trends: Total investment income decreased by 15.1% from $37.3 million in 2024 to $31.7 million in 2025. Net investment income decreased from $15.7 million to $13.6 million.
QoQ trends: Interest coverage ratio improved from 2.2x to 2.5x sequentially.

[Q&A Highlights]
Question 1: Just the investments associated with First Brands, wonder if you could just talk a little bit more about what's the current outlook for the path to recovery there? And perhaps you could just talk about why was there a decision made to hold on versus sell the investments in the quarter there? Thanks.
Answer: It's an incredibly complex situation that will take time to work through the bankruptcy courts. We are taking it day-by-day with legal counsel and advisers. We are part of a sizable debtor in possession financing, which benefits our position. We believe there is still tangible brand value in the portfolio. We aim to improve recoveries and see the process through, similar to the LifeScan situation, which is likely to result in a par recovery.

Question 2: One of the advantages of the private credit side is that there's more documentation, more ability to due diligence. With the liquid credit side, do you anticipate any changes in the investment process and evaluating the adequateness of collateral go forward just based on the experiences you had with First Brands? Thanks.
Answer: We continue to prioritize documentation on both the liquid and private credit sides. The First Brands situation involved off-balance sheet activities hidden from lenders. We push for tight documentation and may avoid transactions with unfavorable credit agreement provisions.

Question 3: First thing, I wanted to clarify the total repurchase capacity in light of the $5 million that was just approved. It seems like you're running at a little bit below that on a quarterly basis right now. And so I'm wondering how many assuming the sort of steady repurchase level where is that capacity right now on a total basis?
Answer: We still have several million of existing capacity from the 10b5-1 plan. The additional $5 million is for open market purchases, providing extra firepower during market volatility. The board will continue to reevaluate the 10b5-1 plan and the management company level plan.

Question 4: Following up on one of the slides in your slide deck, it looks like interest coverage picked up a little bit more than normal quarter over quarter, jumping to two and a half times and 2.2 times last quarter. I'm curious if that's just a function of lower borrowing costs or if that's also reflective of general top line or EBITDA growth within the portfolio.
Answer: The increase is due to a mix of continued EBITDA growth within the portfolio and lower borrowing costs as spreads have compressed. This combination has led to improved interest coverage.

Question 5: Can you maybe help me to understand the internal rating system and I guess, you know, just the decision of why First Brands would not be considered grade one because I guess there were no one ratings during this quarter.
Answer: Our rating system is relative value-focused rather than purely credit metrics-based. First Brands falls into the category of loans we are concerned about and looking to reduce. A four rating indicates attractiveness on a dollar price or spread basis, where we would consider buying the loan in the secondary market.

[Sentiment Analysis]
Tone of analysts: Inquisitive and focused on understanding the complexities of specific investments and the company's strategic decisions.
Tone of management: Transparent, confident in their strategy, and committed to shareholder alignment and transparency.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|---------------|---------------|
| Total Investment Income | $31.7 million | $37.3 million |
| Net Investment Income | $13.6 million | $15.7 million |
| NAV per Share | $15.39 | $15.68 |
| Debt-to-Equity Ratio | 1.53x | 1.51x |
| Interest Coverage Ratio | 2.5x | 2.2x |

[Risks and Concerns]
- Complex situations like First Brands may take time to resolve and could impact recoveries.
- Spread compression in private credit markets may affect future returns.
- Economic uncertainties, including interest rate changes and inflation, could impact portfolio performance.

[Final Takeaway]
Palmer Square BDC demonstrated strong capital deployment and maintained a diversified portfolio in Q3 2025. Despite a decline in total investment income, the company covered its dividends and showed improved interest coverage ratios. Management remains focused on shareholder returns through supplemental dividends and share repurchases. The company continues to prioritize transparency with monthly NAV disclosures and active balance sheet management. While challenges like the First Brands situation exist, the management's disciplined approach and strategic positioning provide confidence in navigating future market conditions.