Palmer Square Capital BDC Inc. (NYSE: PSBD)

Palmer Square Capital BDC Inc. (PSBD) is a financial services company operating in the lending and investment sector, with a focus on corporate debt securities of private U.S. companies. The company was established in 2019 and structured as an externally managed, non-diversified closed-end management investment company, regulated under the Investment Company Act of 1940. With approximately $29.5 billion in assets under management as of December 31, 2023, Palmer Square Capital Management (PSCM) serves as the company's investment adviser, responsible for managing day-to-day operations and providing investment advisory and management services.

The company's primary business activities involve the investment in corporate debt securities, collateralized loan obligation (CLO) structured credit funds, and derivatives transactions. Palmer Square Capital BDC Inc. primarily caters to private companies, including small to large private U.S. firms. The company generates revenue by investing in these instruments and offering its expertise in the alternative credit investing market. With an average of 22 years of experience, senior members of the investment team have built strong relationships with private equity sponsors, banks, and financial intermediaries.

Palmer Square Capital BDC Inc.'s investment portfolio is diverse, comprising 227 debt and equity investments in 191 portfolio companies, with total assets of approximately $1.0 billion as of December 31, 2023. The top ten portfolio companies and industries represented as a percentage of total assets as of December 31, 2023, include Idera, Inc., Aptean Inc, Vision Solutions, Inc., Minotaur Acquisition, Inc., Gainwell Acquisition Corp., Infinite Bidco, LLC, Acrisure, LLC, Delta Topco, Inc., Barracuda Networks, Inc., and Ivanti Software, Inc. These investments span across various industries such as software, healthcare providers and services, professional services, IT services, insurance, and hotels, restaurants, and leisure.

In the competitive landscape, Palmer Square Capital BDC Inc. boasts a strong competitive advantage due to its vast experience in analyzing and investing in corporate and structured credit. This expertise distinguishes the company from other lenders with more limited experience in these markets. The investment approach is centered on maximizing total return, comprised of current income and capital appreciation. The Investment Advisor employs a blend of top-down and granular, bottom-up fundamental credit analysis to identify investment opportunities.

The company's CLO debt and equity investment strategy focuses on three main areas: structure and documentation of the CLO, the underlying portfolio of the CLO, and the collateral manager of the CLO. Additionally, the senior secured loan investment strategy prioritizes downside protection and overall credit quality when evaluating each loan borrower.

Regulated as a BDC under the Investment Company Act of 1940, Palmer Square Capital BDC Inc. is subject to the leverage restrictions contained in the 1940 Act and the reporting requirements and other customary requirements for similar credit facilities. As of December 31, 2023, the company had approximately $504.0 million principal outstanding and $221.0 million of available Commitments under the BoA Credit Facility, with PS BDC Funding in compliance with the applicable covenants in the BoA Credit Facility on such date. The company also had $136.3 million principal outstanding and $38.7 million of available Commitments under the WF Credit Facility, with PS BDC Funding II in compliance with the applicable covenants in the WF Credit Facility on such date.