Palmer Square Capital BDC Inc. Reports Financial Results for Q3 2024, with Increased Assets and Interest Income

Palmer Square Capital BDC Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $1.41 billion, up from $1.12 billion at the end of 2023. This growth was driven by a rise in non-controlled, non-affiliated investments, which reached $1.39 billion at fair value, compared to $1.11 billion previously.

For the three months ended September 30, 2024, Palmer Square generated interest income of $35.8 million, a notable increase from $27.3 million in the same period of 2023. Total investment income also rose to $37.3 million from $28.8 million year-over-year. However, total expenses surged to $21.6 million, up from $14.2 million, primarily due to increased interest expenses and management fees. Consequently, net investment income for the quarter was $15.7 million, slightly higher than $14.8 million in the prior year.

The company experienced a net increase in net assets resulting from operations of $7.6 million for the quarter, a significant decline from $33.9 million in the same quarter of 2023. For the nine months ended September 30, 2024, net investment income totaled $47.8 million, compared to $42.6 million in the previous year, while the net increase in net assets from operations dropped to $35.7 million from $85.9 million.

Palmer Square's net asset value per share decreased to $16.61 from $17.04 at the end of 2023. The company’s net realized losses on investments for the three months ended September 30, 2024, were $(7.1) million, compared to $(2.1) million in the same period last year. The total realized and unrealized losses for the nine months were $(12.1) million, a stark contrast to gains of $43.3 million in the prior year.

Strategically, Palmer Square completed a $400.5 million term debt securitization (CLO Transaction) in May 2024, which included the issuance of various classes of notes. The company also amended its credit facilities, extending maturity dates and increasing borrowing amounts, which reflects a proactive approach to managing its debt obligations.

As of September 30, 2024, the company had 32.6 million shares of common stock outstanding and reported cash and cash equivalents of $1.8 million, down from $3.4 million a year earlier. The company’s asset coverage ratio stood at 166%, exceeding the regulatory requirement of 150%.