Palmer Square BDC: Q3 2024 Debt Investments Detailed

TL;DR

Palmer Square BDC's Q3 10-Q shows diverse debt investments with rates around 9-10% maturing through 2028.

AI Summary

Palmer Square Capital BDC Inc. filed its 10-Q for the period ending September 30, 2024. The company reported various debt investments, including a first lien senior secured loan to Filtration Group Corp. with a 9.72% interest rate maturing in October 2028, and a similar loan to MLN US HoldCo LLC at 9.41% interest maturing in December 2025. The filing also details investments in Amynta Agency Borrower Inc. and Sophia, L.P., among others.

Why It Matters

This filing provides insight into Palmer Square BDC's investment portfolio, revealing specific debt holdings, interest rates, and maturity dates, which are crucial for assessing the company's financial health and risk exposure.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to its focus on debt investments, which carry interest rate and credit risks, as indicated by the varying interest rates and maturity dates of its portfolio.

Key Numbers

• 9.72% — Interest Rate (Filtration Group Corp. debt investment)
• 9.41% — Interest Rate (MLN US HoldCo LLC debt investment)
• 2028-10-23 — Maturity Date (Filtration Group Corp. debt investment)
• 2025-12-31 — Maturity Date (MLN US HoldCo LLC debt investment)

Key Players & Entities

• Palmer Square Capital BDC Inc. (company) — Filer
• Filtration Group Corp. (company) — Debt Investment Borrower
• MLN US HoldCo LLC (company) — Debt Investment Borrower
• Amynta Agency Borrower Inc. (company) — Debt Investment Borrower
• Sophia, L.P. (company) — Debt Investment Borrower
• 9.72% (dollar_amount) — Interest Rate for Filtration Group Corp.
• 9.41% (dollar_amount) — Interest Rate for MLN US HoldCo LLC
• 2028-10-23 (date) — Maturity Date for Filtration Group Corp.
• 2025-12-31 (date) — Maturity Date for MLN US HoldCo LLC

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share PSBD New York Stock Excha

Filing Documents

• psbd-20240930.htm (10-Q) — 7142KB
• psbd-ex31_1.htm (EX-31.1) — 14KB
• psbd-ex31_2.htm (EX-31.2) — 14KB
• psbd-ex32_1.htm (EX-32.1) — 7KB
• psbd-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-121066.txt ( ) — 23964KB
• psbd-20240930.xsd (EX-101.SCH) — 976KB
• psbd-20240930_htm.xml (XML) — 6773KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 29 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 4.

Controls and Procedures

Controls and Procedures 59 PART II. OTHER INFORMATION 60 Item 1.

Legal Proceedings

Legal Proceedings 60 Item 1A.

Risk Factors

Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3. Defaults Upon Senior Securities 61 Item 4. Mine Safety Disclosures 61 Item 5. Other Information 61 Item 6. Exhibits 62

—FINANCIA L INFORMATION

PART I—FINANCIA L INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements. Palmer Square Capital BDC Inc. Consolidated Statement s of Assets and Liabilities (Unaudited) September 30, 2024 (Unaudited) December 31, 2023 Assets: Non-controlled, non-affiliated investments, at fair value (amortized cost of $ 1,433,876,560 and $ 1,159,135,422 , respectively) $ 1,389,801,144 $ 1,108,810,753 Cash and cash equivalents 1,785,799 2,117,109 Receivables: Receivable for sales of investments 8,647,655 97,141 Receivable for paydowns of investments 840,486 344,509 Due from investment adviser 108,225 1,718,960 Dividend receivable 158,001 301,637 Interest receivable 12,071,303 8,394,509 Prepaid expenses and other assets 139,514 30,100 Total Assets $ 1,413,552,127 $ 1,121,814,718 Liabilities: Credit facilities (net of deferred financing costs of $ 5,775,000 and $ 3,211,510 , respectively) (Note 6) $ 518,483,459 $ 641,828,805 Notes (net of deferred financing costs of $ 1,783,958 ) (Note 6) 305,928,313 — Payables: Payable for investments purchased 26,123,384 14,710,524 Distributions payable 15,333,270 — Management fee payable 2,424,412 2,252,075 Incentive fee payable 2,229,576 — Accrued other general and administrative expenses 1,092,558 1,067,921 Total Liabilities $ 871,614,972 $ 659,859,325 Commitments and contingencies (Note 9) Net Assets: Common Shares, $ 0.001 par value; 450,000,000 shares authorized; 32,623,502 and 27,102,794 as of September 30, 2024 and December 31, 2023, respectively issued and outstanding $ 32,624 $ 27,103 Additional paid-in capital 611,482,028 520,663,106 Total distributable earnings (accumulated deficit) ( 69,577,497 ) ( 58,734,816 ) Total Net Assets $ 541,937,155 $ 461,955,393 Total Liabilities and Net Assets $ 1,413,552,127 $ 1,121,814,718 Net Asset Value Per Common Share $ 16.61 $ 17.04 The acc

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View this 10-Q filing on SEC EDGAR