Palmer Square Capital BDC Reports Strong Q1 2024 Earnings

Palmer Square Capital BDC Inc. reported strong Q1 2024 results, deploying $346 million of capital and generating $16.3 million of net investment income. The company also priced a $400.5 million collateralized loan obligation and introduced a formal dividend policy.

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Bijay Laxmi
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Palmer Square Capital BDC Reports Strong Q1 2024 Earnings

Palmer Square Capital BDC Reports Strong Q1 2024 Earnings

Palmer Square Capital BDC Inc. (NYSE: PSBD) has reported impressive financial results for the first quarter of 2024. The company deployed $346 million of capital during the quarter and generated $16.3 million of net investment income. As of March 31, 2024, Palmer Square Capital BDC's net asset value (NAV) per share stood at $17.16.

Why this matters: The strong earnings report from Palmer Square Capital BDC Inc. has implications for the broader business development company landscape, as it demonstrates the company's ability to navigate dynamic market conditions and deliver returns to shareholders. This performance may also influence investor confidence in the industry as a whole.

Commenting on the strong quarterly performance, Chris Long, Chairman and Chief Executive Officer, stated, "I am pleased to report strong quarterly earnings results, solid credit performance across the portfolio, and continued net asset value expansion." Long added, "We believe that Palmer Square Capital BDC remains well-positioned for upside in this dynamic operating environment."

In March 2024, Palmer Square Capital BDC's Board approved a formal base and supplemental dividend policy. The company will pay a quarterly base distribution of $0.42 per share, with a supplemental dividend of at least 50% of net investment income above the base distribution. This policy reflects the company's commitment to delivering attractive returns to shareholders.

Palmer Square Capital BDC's investment strategy focuses on high-quality, shorter-duration, and liquid credits. The company's differentiated financing capabilities, including its credit facilities, provide flexibility in executing its strategy. "We attribute our strong credit performance to PSBD's rigorous investment process, focusing on larger companies with strong fundamentals in positions that are senior in the capital structure," Long explained.

On April 24, 2024, Palmer Square Capital BDC priced a $400.5 million collateralized loan obligation (CLO) secured by broadly syndicated loans held by the company. Bank of America served as the arranging partner for this transaction. The CLO issuance showcases Palmer Square Capital BDC's ability to leverage the broader strength of the Palmer Square platform to execute innovative and attractive financing transactions that drive enhanced returns for shareholders.

Palmer Square Capital BDC Inc.'s strong first quarter 2024 results, with $346 million of capital deployed, $16.3 million of net investment income generated, and a $400.5 million CLO issuance, demonstrate the company's solid performance and effective investment strategy. With a commitment to delivering attractive shareholder returns and a well-positioned portfolio, Palmer Square Capital BDC appears poised for continued success in the dynamic business development company landscape.

Key Takeaways

  • Palmer Square Capital BDC reports $346M capital deployment in Q1 2024.
  • Net investment income reaches $16.3M, with NAV per share at $17.16.
  • Company announces formal base and supplemental dividend policy.
  • $400.5M collateralized loan obligation (CLO) issuance showcases financing capabilities.
  • Strong Q1 results demonstrate effective investment strategy and commitment to shareholder returns.