Palmer Square Capital BDC Inc.

Welcome to Palmer Square Capital BDC's second quarter 2025 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 second quarter 2025 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. 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 that the assumptions on which these forward-looking statements are based 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. And with that, I will turn the call over to Chris Long.

Good afternoon, everyone. Thank you for joining us today for Palmer Square Capital BDC's second quarter 2025 conference call. On today's call, I will provide an overview of the second quarter highlights and touch on our proprietary investment strategy, then turn the call to the team to discuss our market outlook, positioning, portfolio and investment activity, and financial results. During the second quarter, our team deployed $92.4 million of capital and generated total and net investment income of $31.7 million and $13.8 million, respectively. We delivered net investment income of 43 cents per share and paid a 42 cent per share second quarter total dividend, which includes a 6 cent supplemental distribution. We recently announced our June NAV per share of $15.68. Let me now spend a moment on our platform and strategy. As we navigate today's macro environment, it is critical to emphasize the strength of our platform and the differentiated nature of our investment strategy. GSBD, our flagship BDC, is a marquee vehicle on our platform, which includes one of the world's best known CLO platforms, as well as a variety of seasoned opportunistic credit type strategies. GSBD benefits from our most senior team members, all of which have been together managing money for over a decade. We believe our focus on senior secured liquid credit and the optionality we have to deploy into private credit offers a unique value proposition that is uncommon across the BDC sector. It allows us to be agile during times of volatility and adjust to various market environments. We believe this strategy is well-suited for the shifting macro landscape we face today. And as Angie will discuss in more detail, DSBD shares can offer new investors a very attractive yield and a clear line of sight on the go-forward opportunity when compared to other income-generating investment options. At our core, we are a shareholder-driven organization and we structured PSBD to be the best of our ability to uphold this value. First, we disclosed an enhanced level of transparency highlighted by our monthly net asset value disclosure. We are the only publicly traded BDC to provide this and allow our shareholders to see underlying portfolio performance on an intra-quarter basis. Second, we believe our fee structure is more attractive than peers. We only charge a manager fee on net assets, not gross assets. We want to be rewarded when we attract more equity capital that grows NAV, not for taking leverage. Additionally, our incentive fee is at the lower end of the sector. We combine the size and scale of our position as a growing global alternative asset manager with our local roots. Clients and investors choose to partner with Palmer Square because we have a global footprint and offer unique level of accessibility. We believe our LPs and investors know that Palmer Square is a team they want to be part of, and we have maintained a high-touch approach to client service since our founding. Since our last earnings call, we have had the pleasure of speaking with many investors who share our excitement in the path forward for PFBD and the unique value we believe it offers. We look forward to continuing these conversations in the quarters to come as we execute on opportunities that we expect to drive optimal returns for our shareholders. I will now hand the call over to Angie.

Thank you, Chris. In the second quarter, PSBD's results proved durable through episodes of heightened volatility induced by tariff policy and geopolitical risk. To echo Chris, at Palmer Square, we construct our portfolios to generate attractive risk-adjusted returns and weather times of uncertainty. We are committed to this approach as we seek to deliver value for PSBD shareholders. Stepping back and looking at broader market dynamics, in many ways, we are back to where we started the year. Although we avoided a freeze in M&A activity as the most onerous tariff scenarios came off the table, deal volume remains compressed. Loan prices tracked broader risk assets, dropping following Liberation Day and then subsequently recovering. While there was a bit of spread widening during that brief period in April, spreads quickly returned close to prior levels. As of the end of July, PSBD was yielding 12.12%, an attractive yield in any market, but particularly so if you consider how tight spreads are today and the conservative positioning of the portfolio. PSBD's positioning today reflects our view that spreads this tight may not fully account for the lack of clarity related to policy and geopolitical events or the ongoing risks from various sectors. Our ability to be nimble with the PFBD portfolio, combined with a disciplined process and a deeply experienced credit team, positions PFBD well to exploit opportunities when spreads widen and returns justify adding incremental risk. That said, And as we'll continue to reiterate, with a backdrop like we have today, the SBD is delivering attractive yield on an absolute basis and relative to other parts of the liquid credit market. Further, we have the ability to actively adjust the portfolio to take advantage of changing conditions when we feel that it is warranted. There are reasons to be optimistic as we move through the third quarter. We have seen more early look transactions in July. And we're hopeful this indicates at least a modest pickup in overall deal activity. Although a strengthening M&A market would be beneficial, it is not our only avenue to deploy capital. In contrast to BDCs that purely focus on private credit, PSBD can transact in a deeply liquid secondary market for broadly syndicated loans as opportunities present themselves. Another constructive sign is that credit remains relatively resilient against opaque macro dynamics. We are encouraged by the portfolio's current composition. Non-accruals declined during the quarter as we worked through previous situations, and we're hopeful about the remaining non-accrual as the current recovery outcome appears better than we were previously modeling. As we look ahead, we will maintain our rigorous approach to underwriting and believe the conservative approach that has supported our strong credit quality up to this point will continue to serve our fellow shareholders well. At Palmer Square, we manage over $34 billion in corporate and structured credit, and we bring the full benefit of the size and scale of our entire platform to the BDC. By leveraging this expertise, we believe we are well positioned to evaluate an array of opportunities and identify where the best relative value lies. To close, we believe PSBD shares continue to offer attractive yields for exposure to first lien senior secured loans in the BSL market. As of July 31st, PSBD's yield of 12.12% compares to the leveraged loan index yielding 7.97, the high yield index yielding 7.08, and the 10-year treasury yielding 4.37. It is difficult to find the premium yield that PSBD shares currently imply across liquid credit markets, and particularly, within an actively managed platform. With that, I'd like to hand the call over to Matt, who will discuss our portfolio and investment activity.