In This Article:
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Total Investment Income: $31.2 million for Q1 2025, down 10.3% from $34.8 million in the prior year period.
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Net Investment Income: $12.9 million or $0.40 per share for Q1 2025, compared to $16.3 million or $0.52 per share in the prior year period.
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Net Realized and Unrealized Losses: $21.3 million for Q1 2025, compared to gains of $6.6 million in Q1 2024.
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NAV per Share: $15.85 at the end of Q1 2025, down from $16.50 at the end of Q4 2024.
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Total Assets: $1.4 billion as of March 31, 2025.
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Total Net Assets: $515.8 million as of March 31, 2025.
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Debt-to-Equity Ratio: 1.50 times at the end of Q1 2025.
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Available Liquidity: $229.5 million as of March 31, 2025.
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Capital Deployment: $104.3 million deployed in Q1 2025.
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Dividend: $0.39 per share for Q1 2025, including a $0.03 supplemental distribution.
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Stock Repurchase: 98,399 shares repurchased at an average price of $14.89, totaling $1.5 million.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Palmer Square Capital BDC Inc (NYSE:PSBD) deployed $104.3 million of capital in the first quarter, demonstrating active investment management.
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The company generated a total investment income of $31.2 million and net investment income of $12.9 million, reflecting strong financial performance.
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PSBD paid a $0.39 per share dividend, including a $0.03 supplemental distribution, showcasing its commitment to returning capital to shareholders.
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The company maintains a diversified portfolio with 96% senior secured loans, indicating a focus on high-quality investments.
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PSBD's investment strategy is designed to perform well during periods of market volatility, leveraging its nimble portfolio structure.
Negative Points
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Total investment income decreased by 10.3% compared to the prior year, attributed to a falling rate environment impacting the predominantly floating rate loan portfolio.
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The company experienced net realized and unrealized losses of $21.3 million in the first quarter, reflecting market challenges.
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Net asset value (NAV) per share declined from $16.50 at the end of the fourth quarter of 2024 to $15.85 at the end of the first quarter of 2025.
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The portfolio's fair value decreased by approximately 5.2% from the end of the fourth quarter of 2024.
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PSBD's cautious approach to deploying capital in the current volatile market environment may limit immediate growth opportunities.
Q & A Highlights
Q: Can you provide an updated outlook on leverage and the possibility of deleveraging in the near term? A: Matthew Bloomfield, President: We feel comfortable with our current leverage levels. We'll assess opportunities in both primary and secondary markets, but given the current backdrop, we're satisfied with where we stand.