Palmer Square Capital BDC Inc. Announces Fourth Quarter and Full Year 2024 Financial Results

Declares First Quarter 2025 Base Dividend of $0.36 Per Share with Supplemental Dividend Expected to be Announced in March

MISSION WOODS, Kan.--(BUSINESS WIRE)--February 27, 2025-- 

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, 2024.

Financial and Operating Highlights

   -- 
 Total investment income of $34.9 million for the fourth quarter of 
      2024, compared to $29.8 million for the prior year period 
 
 
   -- 
 Net investment income of $14.8 million or $0.45 per share for the 
      fourth quarter of 2024, as compared to $15.4 million or $0.58 per share 
      for the comparable period last year 
 
 
   -- 
 Net asset value of $16.50 per share as of December 31, 2024, compared 
      to $16.61 per share as of September 30, 2024 
 
 
   -- 
 Total net realized and unrealized losses of $2.9 million for the fourth 
      quarter of 2024, compared to gains of $6.6 million in the fourth quarter 
      of 2023 
 
 
   -- 
 As of December 31, 2024, total assets were $1.4 billion and total net 
      assets were $537.8 million 
 
 
   -- 
 Debt-to-equity as of December 31, 2024 was 1.50x, compared to 1.52x as 
      of September 30, 2024 
 
 
   -- 
 Paid cash distributions to stockholders totaling $0.48 per share for 
      the fourth quarter of 2024 
 
 
   -- 
 Declared a first quarter regular base dividend distribution of $0.36 
      per share payable on April 10, 2025, to shareholders of record as of 
      March 28, 2025. In accordance with our dividend policy, we expect to 
      announce a supplemental dividend in March 
 
 
   -- 
 In the fourth quarter, we had only $685 thousand of PIK income, or 
      1.96% of total investment income 
 

"In 2024, Palmer Square Capital BDC drove strong financial performance through its differentiated portfolio strategy composed of both liquid and private credit investments," said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. "Against a market backdrop characterized by ongoing rate uncertainty and tightening credit spreads, we grew our portfolio of broadly syndicated public debt and large private credit borrowers in a disciplined, credit-specific fashion. Looking ahead, we believe the PSBD portfolio will continue to deliver attractive returns while maintaining exceptional credit quality."

 
$ in thousands, except per 
share data                           For the Quarter Ended 
                               --------------------------------- 
                               12/31/24    9/30/24     12/31/23 
Financial Highlights 
Net Investment Income Per 
 Share(1)                     $     0.45  $     0.48  $     0.58 
Net Investment Income         $   14,796  $   15,729  $   15,391 
NAV Per Share                 $    16.50  $    16.61  $    17.04 
Dividends Earned Per 
 Share(2)                     $     0.48  $     0.47  $     0.54 
 
                               12/31/24     9/30/24    12/31/23 
                               ---------   ---------   --------- 
Portfolio Highlights 
Total Fair Value of 
 Investments                  $1,407,131  $1,389,801  $1,108,811 
Number of Industries                  38          39          38 
Number of Portfolio 
 Companies                           207         212         191 
Portfolio Yield(3)                10.65%      10.48%      10.51% 
Senior Secured Loan(4)               96%         96%         96% 
Investments on 
 Non-Accrual(5)                    0.08%       0.26%       0.00% 
Total Return(6)                    2.36%       1.43%       4.88% 
Debt-to-Equity                     1.50x       1.52x       1.39x 
 
 
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 December 31, 2024, we had 262 investments in 207 portfolio companies with an aggregate fair value of approximately $1.3 billion. Based on a total fair value of $1.4 billion, including short term investments, the portfolio consisted of 85.7% first lien senior secured debt investments, 5.5% second lien senior secured debt investments, 4.9% short-term investments, 3.4% collateralized loan obligation structured credit funds ("CLOs") mezzanine and equity investments, 0.3% corporate bond investments, and 0.1% equity investments.

As of December 31, 2024, 99% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of the fourth quarter, 99.92% of the portfolio at fair value was income producing. There were two loans on non-accrual status. As of December 31, 2024, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.65%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 9.06%. For the fourth quarter of 2024, the principal amount of new investments funded was $171.8 million which included 28 investments at an average value of approximately $4.5 million. For this period, the Company had $176.4 million aggregate principal amount in sales and repayments.

Liquidity and Capital Resources

As of December 31, 2024, the Company had $2.8 million in cash and cash equivalents and approximately $804.2 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 $199.7 million compared to $21.6 million of undrawn investment commitments as of December 31, 2024.

Recent Developments

On February 27, 2025, 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 10, 2025, to shareholders of record as of March 28, 2024. We expect to announce an additional quarterly supplemental dividend distribution for the first quarter of 2025 in March.

Earnings Conference Call

The Company will host a conference call on Thursday, February 27, 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

(MORE TO FOLLOW) Dow Jones Newswires

February 27, 2025 07:00 ET (12:00 GMT)