The following is a summary of the Palmer Square Capital BDC Inc. (PSBD) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Palmer Square BDC reported a Q4 investment income of $29.8 million, marking a 25% increase from $23.8 million in the same period last year.

• The company had a net investment income for the quarter of $15.4 million or $0.57 per share, up from $12.4 million or $0.51 per share for the same period last year.

• The total investment portfolio had a fair value of around $1.1 billion, pointing to a robust financial year.

• There were total realized and unrealized gains of $6.6 million, signalling growth compared to a loss of $11.4 million in the fourth quarter of 2022.

• Net Asset Value (NAV) per share rose to $17.04, from $16.76 in Q3.

• The company's total assets were valued at $1.1 billion, and total net assets were $462 million by the end of 2023. Its debt-to-equity ratio stood at 1.39 times, a reduction from 1.42 times at the end of Q3.

Business Progress:

• The company managed to invest around $85 million across 30 new commitments during the fourth quarter and realized approximately $53 million through repayments.

• Each of the ten largest investments represents only 10.4% of the total portfolio, indicating high levels of diversification.

• The rapid deployment of initial public offering (IPO) proceeds in the secondary loan market indicates significant progress.

• Palmer Square Capital BDC believes that first lien senior secured loans offer strong relative value and hence will continue to focus primarily on these loans.

• The company has approved a stock repurchase program to buy up to $20 million of PSBD common stock. An additional $5 million has been authorized by Palmer Square Capital Management, culminating in a total authorization of up to $25 million.

• The loan non-accrual status reflects successful risk management, and they will continue to identify and capitalize on favorable opportunities.

• The management is exploring alternative financing options, including potential Collaterized Loan Obligation (CLO) issuance, and continues to evaluate a go-forward dividend policy.

• Palmer Square BDC has a unique and profitable investment strategy, focusing on stability and reduced risk for investors, which it plans to maintain going forward.

More details: Palmer Square Capital BDC IR

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