Declares Fourth Quarter 2025 Base Dividend of $0.36 Per Share with Supplemental Dividend
Expected to be Announced in December
MISSION WOODS, Kan.--(BUSINESS WIRE)--November 05, 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 third quarter ended September 30, 2025.
Financial and Operating Highlights
-- Total investment income of $31.7 million for the third quarter of 2025,
compared to $37.3 million for the prior year period
-- Net investment income of $13.6 million or $0.43 per share for the third
quarter of 2025, as compared to $15.7 million or $0.48 per share for the
comparable period last year
-- Net asset value of $15.39 per share as of September 30, 2025, compared to
$15.68 per share as of June 30, 2025
-- Total net realized and unrealized losses of $10.3 million for the third
quarter of 2025, compared to losses of $8.2 million in the third quarter
of 2024
-- As of September 30, 2025, total assets were $1.3 billion and total net
assets were $490.4 million
-- Debt-to-equity as of September 30, 2025 was 1.53x, compared to 1.51x as
of June 30, 2025
-- Paid cash distributions to stockholders totaling $0.42 per share for the
third quarter of 2025
-- Declared a fourth quarter regular base dividend distribution of $0.36 per
share, payable on January 14, 2026, to shareholders of record as of
December 29, 2025. In accordance with our dividend policy, we expect to
announce a supplemental dividend in December
-- In the third quarter, we had only $360.9 thousand of PIK income, or 1.14%
of total investment income
"We are very pleased with our financial performance in the third quarter, supported by our focus on high quality assets and prudent portfolio construction," said Christopher D. Long, Chairman and Chief Executive Officer of Palmer Square Capital BDC. "Our team is encouraged by the acceleration in deal activity, yet remains committed to disciplined capital deployment with the goal of maximizing long-term value for investors. The depth of our experience across primary and secondary syndicated loan markets, combined with our ability to pursue attractive private credit opportunities, positions us well to take advantage of a dynamic market environment. This agility is further enhanced by our seasoned investment team and strong alignment with shareholders."
$ in thousands,
except per
share data For the Quarter Ended
---------------------------------------------
9/30/25 6/30/25 9/30/2024
-------------- -------------- --------------
Financial
Highlights
Net Investment
Income Per
Share(1) $ 0.43 $ 0.43 $ 0.48
Net Investment
Income $ 13,641 $ 13,842 $ 15,729
NAV Per Share $ 15.39 $ 15.68 $ 16.61
Dividends Earned
Per Share(2) $ 0.42 $ 0.42 $ 0.47
9/30/25 6/30/25 9/30/2024
------------- ------------- -------------
Portfolio
Highlights
Total Fair Value
of Investments $1,258,988 $1,279,793 $1,389,801
Number of
Industries 42 39 39
Number of
Portfolio
Companies 209 206 212
Portfolio
Yield(3) 10.07% 10.10% 10.48%
Senior Secured
Loan(4) 95% 96% 96%
Investments on
Non-Accrual(5) 0.40% 0.19% 0.26%
Total Return(6) 1.41% 1.85% 1.43%
Debt-to-Equity 1.53x 1.51x 1.52x
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 September 30, 2025, we had 262 investments in 209 portfolio companies with an aggregate fair value of approximately $1.2 billion. Based on a total fair value of $1.3 billion, including short term investments, the portfolio consisted of 86.10% first lien senior secured debt investments, 4.90% second lien senior secured debt investments, 4.30% short-term investments, 3.60% collateralized loan obligation structured credit funds ("CLOs") mezzanine and equity investments, 0.60% corporate bond investments, and 0.50% equity investments.
As of September 30, 2025, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of the third quarter, 99.60% of the portfolio at fair value was income producing. There were two portfolio companies on non-accrual status. As of September 30, 2025, the weighted average total yield to maturity of debt and income producing securities at fair value was 10.07%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.00%. For the third quarter of 2025, the principal amount of new investments funded was $138.7 million which included 28 investments at an average value of approximately $4.8 million. For this period, the Company had $156.0 million aggregate principal amount in sales and repayments.
Liquidity and Capital Resources
As of September 30, 2025, the Company had $4.2 million in cash and cash equivalents and approximately $752.4 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 $252.8 million compared to $16.4 million of unfunded investment commitments as of September 30, 2025.
Recent Developments
On November 05, 2025, PSBD's Board of Directors announced that it had declared a fourth quarter regular base dividend distribution of $0.36 per share, payable on January 14, 2026, to shareholders of record as of December 29, 2025. We expect to announce an additional quarterly supplemental dividend distribution for the fourth quarter of 2025 in December.
Earnings Conference Call
The Company will host a conference call on Wednesday, November 05, 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 Nine Months Ended
September 30,
------------------------------
2025 2024
------------ ------------
Per Common Share Operating
Performance
---------------------------------
Net Asset Value, Beginning of
Period $ 16.50 $ 17.04
Results of Operations:
Net Investment Income(1) 1.25 1.48
Net Realized and Unrealized Gain
(Loss) on Investments(4) (1.13) (0.48)
----------- -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations 0.12 1.00
----------- -----------
Distributions to Common
Stockholders
Distributions from Net
Investment Income (1.23) (1.43)
----------- -----------
Net Decrease in Net Assets
Resulting from Distributions (1.23) (1.43)
----------- -----------
Net Asset Value, End of Period $ 15.39 $ 16.61
=========== ===========
Shares Outstanding, End of Period 31,875,902 32,623,502
Ratio/Supplemental Data
---------------------------------
Net assets, end of period $490,445,213 $541,937,155
Weighted-average shares
outstanding 32,343,757 32,260,537
Total Return(3) 2.20% 6.23%
Portfolio turnover 27% 23%
Ratio of operating expenses to
average net assets without
waiver(2) 13.92% 14.72%
Ratio of operating expenses to
average net assets with
waiver(2) 13.92% 14.70%
Ratio of net investment income
(loss) to average net assets
without waiver(2) 10.38% 11.54%
Ratio of net investment income
(loss) to average net assets with
waiver(2) 10.38% 11.55%
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
September 30,
2025 December 31,
(Unaudited) 2024
-------------- --------------
Assets:
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of
$1,331,847,439 and
$1,454,611,467, respectively) $1,258,987,964 $1,407,130,945
Cash and cash equivalents 4,200,782 2,766,409
Receivables:
Receivable for sales of
investments 7,615,716 7,799,523
Receivable for paydowns of
investments 1,113,301 1,347,516
Due from investment adviser 616,715 248,110
Dividend receivable 197,582 259,625
Interest receivable 8,682,326 11,458,267
Prepaid expenses and other
assets 107,407 32,364
------------- -------------
Total Assets $1,281,521,793 $1,431,042,759
------------- -------------
Liabilities:
Credit facilities (net of
deferred financing costs of
$4,191,957 and $5,375,986,
respectively) (Note 6) $ 450,064,588 $ 501,650,602
Notes (net of deferred financing
costs of $1,644,557 and
$1,748,822, respectively) (Note
6) 302,285,474 302,505,057
Payables:
Payable for investments
purchased 19,973,880 67,460,523
Distributions payable 13,404,534 15,649,925
Management fee payable 2,242,634 2,413,798
Incentive fee payable 1,950,400 2,149,132
Accrued other general and
administrative expenses 1,155,070 1,368,753
------------- -------------
Total Liabilities $ 791,076,580 $ 893,197,790
------------- -------------
Commitments and contingencies
(Note 9)
Net Assets:
Common Shares, $0.001 par value;
450,000,000 shares authorized;
31,875,902 and 32,600,193 as of
September 30, 2025 and December
31, 2024, respectively issued
and outstanding $ 31,876 $ 32,600
Additional paid-in capital 601,218,336 611,122,164
Total distributable earnings
(accumulated deficit) (110,804,999) (73,309,795)
------------- -------------
Total Net Assets $ 490,445,213 $ 537,844,969
------------- -------------
Total Liabilities and Net
Assets $1,281,521,793 $1,431,042,759
------------- -------------
Net Asset Value Per Common
Share $ 15.39 $ 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 September 30, 2025 and December 31, 2024, the Company had an
aggregate of $16.4 million and $21.6 million, respectively, of
unfunded commitments to provide debt financing to its portfolio
companies. As of each of September 30, 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 For the Nine Months Ended
September 30, September 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------------ ----------- ------------ ------------
Income:
Investment income
from
non-controlled,
non-affiliated
investments:
Interest income $ 30,432,071 $35,775,337 $ 90,275,576 $104,261,540
Dividend income 657,248 599,667 1,713,085 2,659,394
Payment-in-kind
interest income 360,941 204,826 1,670,709 439,129
Other income 235,009 726,171 917,098 1,280,377
----------- ---------- ----------- -----------
Total investment
income from
non-controlled,
non-affiliated
investments 31,685,269 37,306,001 94,576,468 108,640,440
----------- ---------- ----------- -----------
Total Investment
Income 31,685,269 37,306,001 94,576,468 108,640,440
Expenses:
Incentive fees 1,950,400 2,229,576 5,733,185 6,404,282
Interest expense 12,757,494 15,670,636 38,303,625 43,846,496
Management fees 2,242,634 2,424,412 6,809,386 7,290,730
Professional fees 229,116 318,504 793,224 954,527
Directors fees 37,808 37,705 112,192 112,295
Other general and
administrative
expenses 826,747 896,437 2,429,106 2,277,810
----------- ---------- ----------- -----------
Total Expenses 18,044,199 21,577,270 54,180,718 60,886,140
Less: Management
fee waiver (Note
3) -- -- -- (50,511)
----------- ---------- ----------- -----------
Net expenses 18,044,199 21,577,270 54,180,718 60,835,629
----------- ---------- ----------- -----------
Net Investment
Income (Loss) 13,641,070 15,728,731 40,395,750 47,804,811
----------- ---------- ----------- -----------
Realized and
unrealized gains
(losses) on
investments and
foreign currency
transactions
Net realized gains
(losses):
Non-controlled,
non-affiliated
investments (1,243,620) (7,119,299) (12,883,252) (18,267,554)
----------- ---------- ----------- -----------
Total net realized
gains (losses) (1,243,620) (7,119,299) (12,883,252) (18,267,554)
----------- ---------- ----------- -----------
Net change in
unrealized gains
(losses):
Non-controlled,
non-affiliated
investments (9,044,026) (1,054,247) (25,378,309) 6,210,881
----------- ---------- ----------- -----------
Total net change in
unrealized gains
(losses) (9,044,026) (1,054,247) (25,378,309) 6,210,881
----------- ---------- ----------- -----------
Total realized and
unrealized gains
(losses) (10,287,646) (8,173,546) (38,261,561) (12,056,673)
----------- ---------- ----------- -----------
Net Increase
(Decrease) in Net
Assets Resulting
from Operations $ 3,353,424 $ 7,555,185 $ 2,134,189 $ 35,748,138
----------- ---------- ----------- -----------
Per Common Share
Data:
-------------------
Basic and diluted
net investment
income per common
share $ 0.43 $ 0.48 $ 1.25 $ 1.48
----------- ---------- ----------- -----------
Basic and diluted
net increase
(decrease) in net
assets resulting
from operations $ 0.10 $ 0.23 $ 0.07 $ 1.11
----------- ---------- ----------- -----------
Weighted Average
Common Shares
Outstanding - Basic
and Diluted 32,084,902 32,613,897 32,343,757 32,260,537
=========== ========== =========== ===========
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 For the Nine Months Ended
September 30, September 30,
---------------------------- -----------------------------
2025 2024 2025 2024
------------- ------------ ------------- -------------
New investments:
Gross
investments $ 138,665,631 $ 66,239,961 $ 335,350,462 $ 602,024,188
Less: sold
investments (156,027,427) (82,822,220) (433,678,517) (292,405,569)
------------ ----------- ------------ ------------
Total new
investments (17,361,796) (16,582,259) (98,328,055) 309,618,619
Principal amount
of investments
funded:
First-lien
senior secured
debt
investments $ 121,385,632 $ 62,171,592 $ 303,546,402 $ 526,804,513
Second-lien
senior secured
debt
investments 5,970,000 4,068,369 10,960,000 46,292,869
Corporate bonds 2,999,999 -- 4,998,572 4,095,000
Collateralized
securities and
structured
products -
debt 8,310,000 -- 8,310,000 23,573,612
CLO Equity -- -- -- --
Common stock -- -- 6,937,015 1,258,194
Preferred Stock -- -- 598,473 --
------------ ----------- ------------ ------------
Total principal
amount of
investments
funded 138,665,631 66,239,961 335,350,462 602,024,188
Principal amount
of investments
sold or repaid:
First-lien
senior secured
debt
investments $ 140,963,220 $ 75,231,088 $ 404,445,897 $ 253,203,637
Second-lien
senior secured
debt
investments 7,499,999 1,200,000 15,736,494 19,654,359
Corporate Bonds -- 4,020,000 2,005,000 4,020,000
Collateralized
securities and
structured
products -
debt 5,900,000 1,250,000 8,800,000 6,500,000
CLO Equity 1,664,208 1,121,132 2,691,126 9,027,573
Common Stock -- -- -- --
Preferred Stock -- -- -- --
------------ ----------- ------------ ------------
Total principal
amount of
investments sold
or repaid $ 156,027,427 $ 82,822,220 $ 433,678,517 $ 292,405,569
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
------------------------------ ------------------------------
2025 2024 2025 2024
--------- --------- --------- ---------
Number of new
investment
commitments 28 21 69 78
Average new
investment
commitment
amount $4,760,375 $2,717,288 $4,182,689 $4,157,481
Weighted
average
maturity for
new investment
commitments 6.75 years 5.29 years 5.80 years 5.60 years
Percentage of
new debt
investment
commitments at
floating rates 97.75% 100.00% 98.96% 100.00%
Percentage of
new debt
investment
commitments at
fixed rates 2.25% 0.00% 1.04% 0.00%
Weighted average
interest rate
of new
investment
commitments(1) 8.48% 9.07% 8.54% 9.58%
Weighted average
spread over
reference rate
of new floating
rate investment
commitments(2) 4.30% 4.17% 4.32% 4.63%
Weighted average
interest rate
on long-term
investments
sold or paid
down 8.64% 9.50% 8.53% 10.22%
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 determined by reference to
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/20251104264621/en/
CONTACT: Investors
Matt Bloomfield and Jeremy Goff
Palmer Square Capital BDC Inc.
Investors@palmersquarebdc.com
Media
Josh Clarkson
Prosek Partners
PSBD@prosek.com
(END) Dow Jones Newswires
November 05, 2025 07:00 ET (12:00 GMT)