Palmer Square Capital BDC Inc.

Welcome to Palmer Square Capital's, excuse me, let's try that again. Welcome to Palmer Square Capital BDC's third quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference call is being recorded. At this time, I'd like to turn the call over to Andrew Wedderburn Maxwell, Investor Relations. Andrew, you may begin.

Welcome to Palmer Square Capital BDC's third quarter 2024 earnings call. Joining me this afternoon are Chris Long, Chairman and Chief Executive Officer, Angie Long, Chief Investment Officer, Matt Bloomfield, President, and Jeff Fox, Chief Financial Officer and Director. Palmer Square Capital BDC's third quarter 2024 financial results were released earlier today and can also be accessed on Palmer Square's investor relations website at palmersquarebdc.com. We have also arranged for a replay of today's event that can be accessed on our website for the next six months. During this call, I want to remind you that the forward-looking statements we make are based on current expectations. The statements on this call that are not purely historical are forward-looking statements. These forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements, including and without limitation market conditions caused by uncertainty surrounding interest rates, changing economic conditions, and other factors we identified in our filings with the SEC. Although we believe the assumptions on which these forward-looking statements are based on are reasonable, Any of those assumptions can prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions can be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements made during this call are made as of the date hereof, and Palmer Square Capital BDC assumes no obligation to update the forward-looking statements unless required by law. To obtain copies of SEC-related filings, please visit our website at palmersquarebdc.com. With that, I will now turn the call over to Chris Long.

Good afternoon, everyone. Thank you for joining us today for Palmer Square Capital BDC's third quarter 2024 conference call. Today, I will begin by providing an overview of the quarterly highlights, then turn the call to the team to discuss our market outlook, portfolio, and financial performance. PFBD delivered strong third quarter earnings results supported by healthy credit performance across our portfolio. During the third quarter, our team deployed 66 million of capital and generated total net investment income of 37.3 million and 15.7 million, marking 30% and 6% year-over-year growth, respectively. We delivered net investment income of 48 cents per share and paid a $0.47 per share third quarter total dividend, including a $0.05 supplemental distribution. As a reminder, PSBD is the only publicly traded BDC that discloses monthly NAV to the street, providing real-time visibility into the health and value of the portfolio. In line with our commitment to industry leading transparency, We recently announced our September 30th NAV per share of $16.61, a 1% decrease from the end of Q2 by some mild mark-to-market and realized losses in the quarter. Our commitment to driving shareholder value while delivering exceptional credit quality across a diversified, opportunistic portfolio that is differentiated in its breadth and ability underpins our third quarter results. Palmer Square is providing investors with strong and consistent returns and opportunities for capital growth in a wide variety of economic and market conditions. As we begin to see non-accruals tick up across the BDC sector overall, we remain confident that our portfolio of large, high-quality borrowers is positioned to outperform on a credit basis while still generating attractive levels of total returns and relative return compared to other floating rate investment options. We continue to see very strong credit performance across the vast majority of the portfolio, and notably, our portfolio benefits from some of the lowest levels in the sector of PIC income. We believe this will be a differentiator for PSVD in the near future as some managers grapple with an evolving rate environment and lower cash pay in their portfolios. I do want to acknowledge that we had our second and third ever non-accruals in the PSBD portfolio this quarter. That being said, neither loan was material from a size and income perspective. We are monitoring both situations closely, and the Palmer Square team is working to ensure optimal resolution for our shareholders. I'd like to reiterate the benefit of PSBD's opportunistic credit investment strategy, which enables us to act quickly across liquid and private markets. We believe our mandate is differentiated and positioning within our portfolio of predominantly high-quality BSLs, which are purchased in both the primary and secondary markets, large private credit loans, and select structured credit investments, enables more upsize through NAV appreciation and total return. As a reminder, given our experience in past tightening cycles, we tend to see a pickup in new M&A and deal activity across both the private credit and broadly syndicated loan markets. We believe this could enable PSBD to have multiple options and avenues to find attractive new credit, but also to potentially see an increase in accelerated OID income flowing through the income statement. I will now hand the call over to Angie to discuss our outlook heading into 2025. Thank you, Chris.