NYSE: PSBD
Palmer Square Capital BDC Inc.CIK 0001794776
Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,294,556,070 and $1,454,611,467, respectively) About this business →
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Palmer Square Capital BDC prices $300M CLO refinancing, lowers senior debt spreads
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Palmer Square Capital BDC reports estimated NAV of $13.63 per share as of May 31
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Palmer Square Capital BDC authorizes $30M stock repurchase expansion through June 2027
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Palmer Square Capital BDC reports estimated NAV of $13.59 per share as of April 30
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Palmer Square Capital BDC reports Q1 NAV decline to $13.30/share, cuts Q2 dividend to $0.36
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Portfolio marks down $100M as unrealized losses double; yields rise 136bp amid credit stress
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About Palmer Square Capital BDC Inc.
Source: Item 1 (Business) from the 10-K filed February 26, 2026. Description as filed by the company with the SEC.
Item 1. Consolidated Financial Statements.
Palmer Square Capital BDC Inc.
Consolidated Statements of Assets and Liabilities
December 31,
2025
December 31,
2024
Assets:
Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,294,556,070 and $1,454,611,467, respectively)
$
1,203,640,318
$
1,407,130,945
Cash and cash equivalents
3,217,449
2,766,409
Receivables:
Receivable for sales of investments
2,821,628
7,799,523
Receivable for paydowns of investments
233,930
1,347,516
Due from investment adviser
616,715
248,110
Dividend receivable
195,710
259,625
Interest receivable
8,608,563
11,458,267
Prepaid expenses and other assets
41,446
32,364
Total Assets
$
1,219,375,759
$
1,431,042,759
Liabilities:
Credit facilities (net of deferred financing costs of $5,030,068 and $5,375,986, respectively) (Note 6)
$
414,438,758
$
501,650,602
Notes (net of deferred financing costs of $1,609,420 and $1,748,822, respectively) (Note 6)
302,075,353
302,505,057
Payables:
Payable for investments purchased
20,366,967
67,460,523
Distributions payable
13,442,214
15,649,925
Management fee payable
2,129,141
2,413,798
Incentive fee payable
1,866,531
2,149,132
Accrued other general and administrative expenses
933,623
1,368,753
Total Liabilities
$
755,252,587
$
893,197,790
Commitments and contingencies (Note 9)
Net Assets:
Common Shares, $0.001 par value; 450,000,000 shares authorized; 31,260,963 and 32,600,193 as of December 31, 2025 and December 31, 2024, respectively issued and outstanding
Read full description ↓
$
31,261
$
32,600
Additional paid-in capital
593,643,044
611,122,164
Total distributable earnings (accumulated deficit)
(129,551,133
)
(73,309,795
)
Total Net Assets
$
464,123,172
$
537,844,969
Total Liabilities and Net Assets
$
1,219,375,759
$
1,431,042,759
Net Asset Value Per Common Share
$
14.85
$
16.50
The accompanying notes are an integral part of these consolidated financial statements.
F - 3
Palmer Square Capital BDC Inc.
Consolidated Statements of Operations
For the Year Ended December 31,
2025
2024
2023
Income:
Investment income from non-controlled, non-affiliated investments:
Interest income
$
118,265,930
$
137,508,964
$
107,739,382
Dividend income
2,279,271
3,315,849
4,066,745
Payment-in-kind interest income
1,647,034
1,123,611
—
Other income
2,202,527
1,564,875
417,480
Total investment income from non-controlled, non-affiliated investments
124,394,762
143,513,299
112,223,607
Total Investment Income
124,394,762
143,513,299
112,223,607
Expenses:
Incentive fees
7,599,716
8,553,414
—
Interest expense
50,057,703
58,006,112
44,483,152
Management fees
8,938,527
9,704,528
8,408,074
Professional fees
1,113,938
1,451,419
792,645
Directors fees
150,000
150,000
75,000
Other general and administrative expenses
3,071,298
3,097,955
1,528,225
Total Expenses
70,931,182
80,963,428
55,287,096
Less: Management fee waiver (Note 3)
—
(50,511
)
(1,051,009
)
Net expenses
70,931,182
80,912,917
54,236,087
Net Investment Income (Loss)
53,463,580
62,600,382
57,987,520
Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses):
Non-controlled, non-affiliated investments
(13,198,727
)
(17,778,119
)
(2,715,413
)
Total net realized gains (losses)
(13,198,727
)
(17,778,119
)
(2,715,413
)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
(43,434,583
)
2,843,502
52,563,544
Total net change in unrealized gains (losses)
(43,434,583
)
2,843,502
52,563,544
Total realized and unrealized gains (losses)
(56,633,310
)
(14,934,617
)
49,848,131
Net Increase (Decrease) in Net Assets Resulting from Operations
$
(3,169,730
)
$
47,665,765
$
107,835,651
Per Common Share Data:
Basic and diluted net investment income per common share
$
1.66
$
1.93
$
2.26
Basic and diluted net increase (decrease) in net assets resulting from operations
$
(0.10
)
$
1.47
$
4.20
Weighted Average Common Shares Outstanding - Basic and Diluted
32,133,879
32,353,615
25,700,603
The accompanying notes are an integral part of these consolidated financial statements.
F - 4
Palmer Square Capital BDC Inc.
Consolidated Statements of Changes in Net Assets
For the Year Ended December 31,
2025
2024
2023
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss)
$
53,463,580
$
62,600,382
$
57,987,520
Net realized gains (losses) on investments and foreign currency
transactions
(13,198,727
)
(17,778,119
)
(2,715,413
)
Net change in unrealized gains (losses) on investments, foreign currency
translations, and foreign currency exchange contracts
(43,434,583
)
2,843,502
52,563,544
Net Increase (Decrease) in Net Assets Resulting from Operations
(3,169,730
)
47,665,765
107,835,651
Decrease in Net Assets Resulting from Stockholder Distributions
Dividends and distributions to stockholders
(53,071,608
)
(62,240,744
)
(56,068,285
)
Net Decrease in Net Assets Resulting from Stockholder Distributions
(53,071,608
)
(62,240,744
)
(56,068,285
)
Increase in Net Assets Resulting from Capital Share Transactions
Issuance of common shares
—
89,652,500
17,654,225
Shares issued in connection with dividend reinvestment plan (Note 7)
514,649
2,073,866
29,090,320
Repurchase of common shares
(17,995,108
)
(1,261,811
)
—
Net Increase in Net Assets Resulting from Capital Share Transactions
(17,480,459
)
90,464,555
46,744,545
Total Increase (Decrease) in Net Assets
(73,721,797
)
75,889,576
98,511,911
Net Assets, Beginning of Period
537,844,969
461,955,393
363,443,482
Net Assets, End of Period
$
464,123,172
$
537,844,969
$
461,955,393
The accompanying notes are an integral part of these consolidated financial statements.
F - 5
Palmer Square Capital BDC Inc.
Consolidated Statements of Cash Flows
For the Year Ended December 31,
2025
2024
2023
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations
$
(3,169,730
)
$
47,665,765
$
107,835,651
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash used in operating activities:
Net realized (gains)/losses on investments
13,198,727
17,778,119
2,715,413
Net change in unrealized (gains)/losses on investments
43,434,583
(2,843,502
)
(52,563,544
)
Net accretion of discount on investments
(2,659,729
)
(1,417,318
)
(1,851,339
)
Payment-in-kind interest and other income
(2,465,697
)
(1,123,611
)
—
Purchases of short-term investments
(600,824,218
)
(868,013,259
)
(578,708,751
)
Purchases of portfolio investments
(426,717,345
)
(773,809,544
)
(273,733,424
)
Proceeds from sale of short-term investments
597,537,884
862,346,328
565,459,502
Proceeds from sale of portfolio investments
581,986,420
468,762,595
247,083,117
Amortization of deferred financing cost
1,732,352
1,567,449
1,005,799
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in receivable for sales of investments
4,977,895
(7,702,382
)
30,917,215
(Increase)/decrease in interest and dividends receivable
2,913,619
(3,021,746
)
(2,088,555
)
(Increase)/decrease in due from investment adviser
(368,605
)
1,470,850
(1,484,858
)
(Increase)/decrease in receivable for paydowns of investments
1,113,586
(1,003,007
)
(208,390
)
(Increase)/decrease in prepaid expenses and other assets
(9,082
)
(2,264
)
568,233
Increase/(decrease) in interest payable on credit facilities
(1,926,868
)
3,385,063
2,326,070
Increase/(decrease) in payable for investments purchased
(47,093,556
)
52,749,999
(28,040,224
)
Increase/(decrease) in management fees payable
(284,657
)
161,723
379,260
Increase/(decrease) in incentive fee payable
(282,601
)
2,149,132
—
Increase/(decrease) in accrued other general and administrative expenses
(435,130
)
300,832
(67,579
)
Net cash provided by (used in) operating activities
160,657,848
(200,598,778
)
19,543,596
Cash Flows from Financing Activities:
Borrowings on the credit facilities
45,100,000
241,079,239
27,500,000
Payments on the credit facilities
(131,300,000
)
(378,224,150
)
(28,500,000
)
Borrowings on the notes
—
300,000,000
—
Payments of debt issuance costs
(1,247,030
)
(5,480,747
)
(1,812,482
)
Distributions paid in cash
(55,279,319
)
(46,590,819
)
(33,919,031
)
Proceeds from issuance of common shares, net of change in subscriptions receivable
—
89,652,500
17,654,225
Purchase of common shares for dividend reinvestment plan
514,649
2,073,866
—
Repurchase of common shares
(17,995,108
)
(1,261,811
)
—
Net cash provided by (used in) financing activities
(160,206,808
)
201,248,078
(19,077,288
)
Net increase/(decrease) in cash and cash equivalents
451,040
649,300
466,308
Cash and cash equivalents, beginning of period
2,766,409
2,117,109
1,650,801
Cash and cash equivalents, end of period
$
3,217,449
$
2,766,409
$
2,117,109
Supplemental and Non-Cash Information:
Interest paid during the period
$
51,984,571
$
54,621,049
$
42,157,082
Distributions declared during the period
$
53,071,608
$
62,240,744
$
56,068,285
Reinvestment of distributions during the period
$
—
$
—
$
29,090,320
Distributions payable
$
13,442,214
$
15,649,925
$
—
The accompanying notes are an integral part of these consolidated financial statements.
F - 6
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Debt Investments
First Lien Senior Secured(2)
888 Holdings PLC (4)(8)
Hotels, Restaurants and Leisure
9.05% (S +CSA + 5.25%)
7/8/2028
$
5,881,718
$
5,859,029
$
5,074,836
1.2
%
AccentCare, Inc. (6)(8)
Healthcare Providers and Services
7.87% (S + 4.00%)
9/20/2028
5,791,339
5,792,293
4,854,590
1.1
%
Acrisure, LLC (8)
Insurance
6.72% (S + 3.00%)
11/6/2030
3,950,100
3,942,882
3,951,957
1.0
%
Acrisure, LLC (6)
Insurance
6.97% (S + 3.25%)
6/21/2032
4,987,469
5,005,942
4,999,937
1.2
%
Ahlstrom Holding 3 OY (4)(6)(8)
Containers and Packaging
8.18% (S +CSA + 4.25%)
5/23/2030
6,965,044
6,866,658
7,020,555
1.6
%
Aimbridge Acquisition Co., Inc. (8)
Hotels, Restaurants and Leisure
9.35% (S +CSA + 5.50%)
3/11/2030
735,010
735,010
738,685
0.2
%
Aimbridge Acquisition Co., Inc. (6)(8)
Hotels, Restaurants and Leisure
17.35% (S+ 13.61% incl. 6% PIK)
3/11/2030
770,159
760,585
770,640
0.2
%
Allied Universal Holdco LLC (6)(8)
Commercial Services and Supplies
6.97% (S + 3.25%)
8/20/2032
9,975,000
9,962,854
10,038,890
2.2
%
American Rock Salt Company LLC (6)
Metals and Mining
7.94% (S +CSA + 4.00%)
6/9/2028
5,734,799
5,734,672
4,450,787
1.0
%
American Rock Salt Company LLC (6)
Metals and Mining
11.08% (S +CSA + 7.00%)
6/9/2028
1,148,702
1,099,647
1,140,087
0.2
%
Amynta Agency Borrower Inc. (Amynta Warranty Borrower Inc.) (8)
Insurance
6.47% (S + 2.75%)
12/29/2031
2,970,094
2,944,043
2,980,296
0.6
%
Ankura Consulting Group, LLC (6)
Professional Services
7.37% (S + 3.50%)
12/17/2031
7,311,802
7,301,319
7,166,882
1.5
%
Anticimex Global AB (4)(8)
Commercial Services and Supplies
6.56% (S + 2.90%)
11/17/2031
2,900,708
2,900,708
2,918,837
0.6
%
Aptean Acquiror Inc. (7)
Software
8.57% (S + 4.75%)
1/30/2031
6,641,965
6,607,574
6,641,965
1.4
%
Aptean Inc. (7)(11)
Software
10.75% (S + 4.75%)
1/30/2031
150,932
147,762
137,725
0.0
%
Aramsco, Inc. (7)
Machinery
8.42% (S + 4.75%)
10/10/2030
5,950,799
5,891,207
4,035,445
0.9
%
ARC Falcon I Inc. (6)(8)
Chemicals
7.32% (S +CSA + 3.50%)
9/30/2028
4,041,398
4,032,787
4,044,550
0.9
%
Arcline FM Holdings LLC (8)
Aerospace and Defense
6.42% (S + 2.75%)
6/24/2030
2,985,019
2,978,388
3,001,108
0.6
%
Aruba Investments, Inc. (6)(8)
Chemicals
7.82% (S +CSA + 4.00%)
11/24/2027
7,851,387
7,830,194
7,233,090
1.6
%
Aspire Bakeries Holdings, LLC (6)(8)
Food Products
7.22% (S + 3.50%)
12/23/2030
10,503,900
10,500,968
10,577,480
2.3
%
Astro Acquisition, LLC (8)
Energy Equipment and Services
7.12% (S + 3.25%)
8/16/2032
3,990,000
3,980,698
4,026,568
0.9
%
Athletico Management, LLC (6)
Healthcare Providers and Services
8.19% (S +CSA + 4.25%)
2/2/2029
6,972,125
6,954,862
5,219,856
1.1
%
Autokiniton US Holdings, Inc. (6)(7)(8)
Auto Components
7.83% (S +CSA + 4.00%)
4/6/2028
9,865,469
9,863,512
9,798,482
2.1
%
Aveanna Healthcare LLC (4)(6)(8)
Healthcare Providers and Services
7.47% (S + 3.75%)
9/10/2032
9,585,975
9,570,912
9,658,445
2.1
%
B&G Foods Inc (4)(6)
Food Products
7.22% (S + 3.50%)
10/10/2029
2,474,937
2,297,844
2,394,502
0.5
%
BarBri Holdings, Inc (7)
Professional Services
8.69% (S + 5.00%)
4/30/2030
7,177,500
7,177,500
7,177,500
1.5
%
Barracuda Networks, Inc. (6)(8)
Software
8.34% (S + 4.50%)
8/15/2029
10,214,394
10,043,582
8,361,452
1.8
%
Bending Spoons Operations Spa (4)(7)(8)
Interactive Media Services
9.03% (S + 5.25%)
2/19/2031
4,812,500
4,726,004
4,698,203
1.0
%
Bending Spoons Operations Spa (4)(8)
Interactive Media Services
9.57% (S + 5.88%)
3/7/2031
2,000,000
1,920,000
1,945,000
0.4
%
B'laster Holdings, LLC (7)
Chemicals
8.47% (S + 4.75%)
10/25/2029
4,344,667
4,280,394
4,212,355
0.9
%
B'laster Holdings, LLC (7)
Chemicals
8.47% (S + 4.75%)
10/25/2029
1,617,000
1,604,005
1,588,703
0.3
%
Boxer Parent Company Inc. (6)(8)
Software
6.82% (S + 3.00%)
7/30/2031
9,875,375
9,839,448
9,861,303
2.1
%
Calabrio, Inc. (8)
Professional Services
7.84% (S + 4.00%)
11/26/2032
2,425,000
2,304,882
2,291,625
0.5
%
F - 7
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Canada Goose Inc (4)(6)(8)
Textiles, Apparel & Luxury Goods
7.37% (S + 3.50%)
8/23/2032
$
7,000,000
$
6,982,500
$
7,001,470
1.5
%
Carriage Purchaser, Inc. (7)(8)
Road and Rail
7.22% (S + 3.50%)
9/25/2028
8,705,807
8,707,562
8,765,659
1.9
%
Castle US Holding Corporation (6)(7)
Professional Services
8.33% (S +CSA + 4.50%)
5/31/2030
5,348,927
5,348,927
2,845,629
0.6
%
Castle US Holding Corporation (7)
Professional Services
9.92% (S + 6.00% incl. 1.00% PIK)
4/29/2030
1,069,763
1,024,198
1,089,319
0.2
%
Castle US Holding Corporation (7)
Professional Services
8.08% (S +CSA + 4.25%)
5/31/2030
1,749,307
1,749,307
940,253
0.2
%
Cengage Learning, Inc. (6)(8)
Diversified Consumer Services
7.23% (S + 3.50%)
3/24/2031
5,910,300
5,875,964
5,941,565
1.3
%
Century De Buyer LLC (8)
Media
6.84% (S + 3.00%)
10/30/2030
1,975,100
1,961,039
1,974,181
0.4
%
Congruex Group LLC (7)
Construction and Engineering
10.49% (S + 6.50% incl. 5.00% PIK)
4/28/2029
6,534,837
6,451,232
5,374,969
1.2
%
Connectwise LLC (6)
IT Services
7.43% (S +CSA + 3.50%)
9/29/2028
5,708,290
5,704,801
5,619,126
1.2
%
Cooper's Hawk Intermediate Holding LLC (7)
Restaurants
9.32% (S + 5.50%)
7/29/2031
4,052,632
4,052,632
4,058,421
0.9
%
Cooper's Hawk Intermediate Holding LLC (7)(12)
Restaurants
9.23% (S + 5.50%)
7/29/2031
52,632
52,632
52,632
0.0
%
Corelogic, Inc. (6)(8)
IT Services
7.33% (S +CSA + 3.50%)
6/2/2028
9,619,079
9,579,493
9,640,915
2.1
%
Cotiviti, Inc. (6)(8)
Healthcare Technology
7.63% (S + 7.63%)
5/1/2031
5,000,000
4,926,514
4,856,275
1.0
%
CPM Holdings, Inc. (6)(8)
Machinery
8.34% (S + 4.50%)
9/27/2028
7,889,000
7,854,663
7,862,690
1.7
%
Creation Technologies Inc. (4)(7)(8)
Electronic Equipment, Instruments and Components
9.70% (S +CSA + 5.50%)
10/5/2028
8,763,776
8,626,355
8,774,730
1.9
%
Crown Subsea Communications Holding, Inc. (6)(8)
Construction and Engineering
7.22% (S + 3.50%)
1/30/2031
9,375,425
9,346,374
9,459,803
2.0
%
Deerfield Dakota Holding, LLC (7)
Diversified Financial Services
9.42% (S + 5.75% incl. 2.75% PIK)
9/13/2032
9,219,683
9,219,683
9,242,404
2.0
%
Delta Topco, Inc. (6)
IT Services
6.44% (S + 2.75%)
11/30/2029
4,850,500
4,843,468
4,833,475
1.0
%
Directv Financing LLC (8)
Media
9.10% (S +CSA + 5.00%)
8/2/2027
235,624
234,945
236,361
0.1
%
Directv Financing LLC (8)
Media
9.35% (S +CSA + 5.25%)
8/2/2029
2,843,931
2,836,821
2,857,326
0.6
%
Dwyer Instruments, LLC (7)
Electronic Equipment, Instruments and Components
8.42% (S + 4.75%)
7/21/2029
8,226,757
8,226,757
8,165,057
1.8
%
Dwyer Instruments, LLC (7)
Electronic Equipment, Instruments and Components
8.42% (S + 1.00%)
7/21/2029
490,980
490,980
487,297
0.1
%
Dwyer Instruments, LLC (7)(13)
Electronic Equipment, Instruments and Components
8.42% (S + 4.75%)
7/20/2029
429,214
420,017
420,229
0.1
%
Edition Holdings Inc (7)
Professional Services
8.20% (S + 4.50%)
12/20/2032
6,589,974
6,561,940
6,589,974
1.4
%
EFS Cogen Holdings I, LLC (6)(7)(8)
Independent Power and Renewable Electricity Producers
6.67% (S + 3.00%)
10/3/2031
6,312,283
6,316,647
6,370,325
1.4
%
EP Purchaser, LLC (6)(8)
Professional Services
8.44% (S +CSA + 4.50%)
11/6/2028
8,710,784
8,676,007
6,288,141
1.4
%
Everest SubBidCo (4)(7)(8)
IT Services
8.44% (S + 4.50%)
12/8/2031
2,633,500
2,610,472
2,613,748
0.6
%
Everest SubBidCo (4)(7)(8)
IT Services
8.44% (S + 4.50%)
12/8/2031
5,286,800
5,240,305
5,247,149
1.1
%
First Brands Group, LLC (8)(9)
Auto Components
13.84% (S + 10.00% incl. 8.45% PIK)
6/29/2026
3,063,291
2,520,588
605,000
0.1
%
First Brands Group, LLC (6)(8)(9)
Auto Components
10.84% (S + 7.00%)
6/29/2026
6,548,937
6,472,339
114,606
0.0
%
First Brands Group, LLC (6)(8)(9)
Auto Components
10.99% (S +CSA + 7.11%)
3/30/2027
2,347,195
2,118,610
12,651
0.0
%
Flash Charm, Inc. (6)(8)
IT Services
7.35% (S + 3.50%)
3/2/2028
9,529,198
9,517,058
8,916,423
1.9
%
Flexera Software LLC (7)
Software
8.60% (S + 4.75%)
8/16/2032
6,791,141
6,791,141
6,732,262
1.5
%
Fortis 333 Inc (8)
Chemicals
7.17% (S + 3.50%)
3/29/2032
2,985,000
2,978,325
2,964,105
0.6
%
F - 8
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Frozen Bakery Acquisition LLC (7)
Food Products
8.69% (S +CSA + 4.75%)
7/9/2029
$
6,435,000
$
6,385,701
$
6,370,650
1.4
%
Fugue Finance, LLC (4)(8)
Diversified Consumer Services
6.57% (S + 2.75%)
1/9/2032
5,851,443
5,804,234
5,879,238
1.3
%
Gainwell Acquisition Corp. (6)(8)
Healthcare Providers and Services
7.77% (S +CSA + 4.00%)
10/1/2027
8,606,605
8,540,519
8,471,051
1.8
%
Galway Borrower LLC (7)(14)
Insurance
8.19% (S + 4.50%)
9/29/2028
97,859
95,195
94,670
0.0
%
Galway Borrower LLC (7)(15)
Insurance
8.17% (S + 4.50%)
9/29/2028
905,781
879,024
916,871
0.2
%
Gategroup Fin Luxembourg SA (4)(8)
Commercial Services and Supplies
7.19% (S + 3.50%)
6/10/2032
2,985,000
2,971,229
3,008,014
0.6
%
GC Ferry Acquisition Inc (6)(8)
Diversified Financial Services
7.17% (S + 3.50%)
8/16/2032
7,687,500
7,578,649
7,686,915
1.7
%
Genuine Financial Holdings LLC (6)(8)
Professional Services
6.97% (S + 3.25%)
9/27/2030
10,280,989
10,239,089
8,759,968
1.9
%
Global Medical Response, Inc. (6)
Healthcare Providers and Services
7.38% (S + 3.50%)
10/1/2032
9,036,939
9,036,939
9,104,038
2.0
%
Gloves Buyer Inc (6)(8)
Industrial Conglomerates
7.72% (S + 4.00%)
5/21/2032
8,000,000
7,962,104
7,975,000
1.7
%
Great Outdoors Group, LLC (6)(8)
Specialty Retail
6.97% (S + 3.25%)
1/23/2032
6,906,885
6,910,398
6,956,097
1.5
%
Grinding Media Inc. (Molycop Ltd.) (7)(8)
Metals and Mining
7.34% (S + 3.50%)
10/12/2028
8,935,262
8,914,817
8,952,016
1.9
%
HAH Group Holding Company LLC (6)(8)
Healthcare Providers and Services
8.72% (S + 5.00%)
9/24/2031
10,110,483
10,004,127
8,908,296
1.9
%
Help/Systems Holdings, Inc. (6)(8)
Software
12.22% (S +CSA + 6.00%)
5/21/2029
4,872,649
4,872,649
4,426,509
1.0
%
Highline Aftermarket Acquisition, LLC (8)
Automotive
7.32% (S + 3.50%)
2/13/2030
3,960,000
3,951,795
3,987,245
0.9
%
Holding Socotec (4)(6)
Construction and Engineering
6.91% (S + 3.25%)
6/2/2031
3,960,000
3,951,412
3,996,511
0.9
%
HP PHRG BORROWER, LLC (6)(8)
Household Durables
7.67% (S + 4.00%)
2/20/2032
9,950,000
9,856,745
9,908,558
2.1
%
Hunter Douglas Inc (8)
Household Durables
6.67% (S + 3.00%)
1/16/2032
3,969,950
3,967,700
3,996,886
0.9
%
Hunterstown Generation, LLC (8)
Independent Power and Renewable Electricity Producers
6.67% (S + 3.00%)
11/6/2031
2,817,711
2,808,245
2,825,262
0.6
%
Hyperion Refinance S.a.r.l. (4)(8)
Insurance
6.49% (S + 2.75%)
4/18/2030
1,984,733
1,984,733
1,992,463
0.4
%
Idemia Group S.A.S. (4)(6)(8)
IT Services
7.92% (S + 4.25%)
9/30/2028
6,877,500
6,891,381
6,937,678
1.5
%
IMA Financial Group, Inc. (7)
Insurance
6.72% (S + 3.00%)
11/1/2028
4,814,401
4,804,266
4,832,094
1.0
%
IMC Financing LLC (8)
Diversified Financial Services
7.23% (S + 3.50%)
6/2/2032
1,990,000
1,980,821
2,008,666
0.4
%
Inception Finco S.a r.l. (4)(7)
Healthcare Providers and Services
6.92% (S + 3.25%)
4/18/2031
3,950,100
3,933,043
3,988,376
0.9
%
Ineos Quattro Holdings UK Limited (4)(8)
Chemicals
7.97% (S + 4.25%)
10/7/2031
3,970,000
3,982,307
2,677,269
0.6
%
Ineos Quattro Holdings UK Limited (4)(6)
Chemicals
8.07% (S +CSA + 4.25%)
4/2/2029
2,962,312
2,969,873
2,103,241
0.5
%
Ineos US Finance LLC (4)(8)
Chemicals
6.72% (S + 3.00%)
2/7/2031
3,940,125
3,909,934
3,174,263
0.7
%
Infinite Bidco, LLC (6)(8)
Electronic Equipment, Instruments and Components
7.85% (S +CSA + 3.75%)
3/2/2028
6,217,627
6,198,964
6,158,031
1.3
%
Infinite Bidco, LLC
Electronic Equipment, Instruments and Components
10.14% (S + 6.25%)
3/2/2028
2,910,000
2,907,930
2,917,275
0.6
%
Inmar, Inc. (6)(7)(8)
Professional Services
8.22% (S + 4.50%)
10/30/2031
9,607,666
9,539,117
9,511,589
2.0
%
International Entertainment JJCo 3 Limited (4)(8)
Entertainment
6.84% (S + 3.00%)
4/30/2032
2,985,019
2,971,111
2,973,825
0.6
%
Ivanti Software, Inc. (6)(8)
Software
9.64% (S + 5.75%)
6/1/2029
2,384,720
2,364,546
2,467,697
0.5
%
Ivanti Software, Inc. (6)(8)
Software
8.64% (S + 4.75%)
6/1/2029
9,892,310
9,892,310
8,269,378
1.8
%
IVC Acquisition, Ltd. (4)(6)(8)
Professional Services
7.42% (S + 3.75%)
12/12/2028
7,483,685
7,424,613
7,537,006
1.6
%
Jack Ohio Finance LLC (7)
Hotels, Restaurants and Leisure
7.72% (S + 4.00%)
1/28/2032
6,947,500
6,934,119
6,942,289
1.5
%
Jones DesLauriers Insurance Management Inc (4)(8)
Insurance
6.83% (S + 3.00%)
12/9/2032
2,000,000
1,995,000
2,005,000
0.4
%
Kestra Advisor Services Holdings A Inc (8)
Diversified Financial Services
6.72% (S + 3.00%)
3/24/2031
1,271,788
1,271,788
1,275,763
0.3
%
Kleopatra Finco S.a.r.l (4)(8)(9)
Containers and Packaging
9.04% (S +CSA + 4.73%)
2/4/2026
1,262,549
1,256,236
220,946
0.0
%
Kleopatra Finco S.a.r.l (4)(8)
Containers and Packaging
9.78% (S + 6.00% incl. 3.00% PIK)
8/7/2026
643,281
641,980
578,152
0.1
%
F - 9
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Kleopatra Finco S.a.r.l (4)(8)
Containers and Packaging
9.78% (S + 6.00% incl. 3.00% PIK)
8/7/2026
$
653,723
$
649,562
$
587,537
0.1
%
Lackawanna Energy Center LLC (6)(8)
Independent Power and Renewable Electricity Producers
6.78% (S + 3.00%)
7/23/2032
3,086,973
3,079,423
3,112,826
0.7
%
Lavender Dutch BorrowerCo BV (4)(6)(8)
Household Products
6.93% (S + 3.25%)
12/2/2032
3,000,000
2,992,500
3,028,125
0.7
%
LBM Acquisition, LLC (6)(7)(8)
Building Products
7.58% (S +CSA + 3.75%)
6/6/2031
10,381,590
10,296,986
9,766,221
2.1
%
Leia Finco US LLC (8)
Software
7.19% (S + 3.25%)
10/9/2031
1,994,975
1,985,127
2,004,780
0.4
%
Lifescan Global Corporation (6)
Healthcare Equipment and Supplies
9.24% (S + 5.50%)
12/8/2030
2,137,644
2,137,644
2,137,644
0.5
%
LogMeIn, Inc. (6)
IT Services
8.79% (S +CSA + 4.75%)
4/28/2028
4,068,746
4,048,887
3,627,959
0.8
%
LogMeIn, Inc. (6)
IT Services
8.79% (S +CSA + 4.75%)
4/28/2028
4,068,746
4,047,112
1,598,427
0.3
%
Logrhythm, Inc. (7)
IT Services
11.34% (S + 7.50%)
7/2/2029
6,363,636
6,363,636
5,471,136
1.2
%
LSF12 Crown US Commercial Bidco, LLC (6)(8)
Construction and Engineering
7.37% (S + 3.50%)
12/2/2031
9,715,258
9,703,616
9,788,123
2.1
%
Magenta Security Holdings LLC (6)
Software
11.10% (S +CSA + 7.00%)
7/27/2028
1,174,081
1,170,511
516,596
0.1
%
Magenta Security Holdings LLC (6)
Software
10.35% (S + CSA + 7.00% incl. 5.50% PIK)
7/27/2028
6,355,448
6,341,288
1,493,530
0.3
%
Magenta Security Holdings LLC (6)
Software
10.85% (S +CSA + 6.75%)
7/27/2028
641,850
639,195
489,411
0.1
%
Magenta Security Holdings LLC (6)
Software
10.09% (S + 6.25%)
7/27/2028
949,963
941,441
953,526
0.2
%
Medical Solutions Holdings, Inc. (6)(7)(8)
Healthcare Providers and Services
7.44% (S +CSA + 3.50%)
11/1/2028
9,745,900
8,763,014
7,017,048
1.5
%
Mermaid Bidco Inc (6)(8)
Professional Services
7.15% (S + 3.25%)
7/3/2031
4,477,330
4,466,512
4,499,717
1.0
%
Metropolis Technologies Inc (7)(8)
Software
8.98% (S + 5.25%)
11/3/2032
7,500,000
7,453,125
7,443,750
1.6
%
Michael Baker International, LLC (7)(8)
Construction and Engineering
7.84% (S + 4.00%)
12/1/2028
8,980,596
8,952,333
9,012,388
1.9
%
Micro Holding Corp. (6)(8)
IT Services
7.97% (S + 4.25%)
5/3/2028
5,725,164
5,618,169
5,340,146
1.2
%
Micro Holding Corp. (6)(8)
IT Services
7.97% (S + 4.25%)
12/31/2031
3,875,186
3,805,193
3,334,482
0.7
%
Minotaur Acquisition, Inc.
Diversified Financial Services
8.72% (S + 5.00%)
5/10/2030
1,112,964
1,112,964
1,107,399
0.2
%
Minotaur Acquisition, Inc.
Diversified Financial Services
8.72% (S + 1.00%)
5/10/2030
1,162,791
1,162,791
1,156,977
0.2
%
Minotaur Acquisition, Inc. (7)
Diversified Financial Services
8.72% (S + 5.00%)
5/10/2030
6,869,545
6,869,545
6,831,709
1.5
%
MRI Software LLC (7)
Software
8.42% (S + 4.75%)
2/10/2027
6,277,469
6,233,999
6,277,469
1.4
%
MRI Software LLC (7)(16)
Software
8.44% (S + 4.75%)
10/2/2028
127,274
124,038
124,092
0.0
%
NAPA Management Services Corporation (6)(8)
Healthcare Providers and Services
9.07% (S +CSA + 5.25%)
2/23/2029
9,661,787
9,560,760
6,745,908
1.5
%
Natgasoline LLC (7)(8)
Chemicals
9.22% (S + 5.50%)
3/25/2030
6,836,786
6,748,909
6,907,991
1.5
%
National Mentor Holdings, Inc. (6)(8)
Healthcare Providers and Services
9.72% (S + 6.00%)
12/5/2030
6,300,000
6,111,752
6,329,565
1.4
%
New WPCC Parent, LLC (6)
Healthcare Providers and Services
13.22% (S + 9.50% cash)/S + 11.50% incl. 8.00% PIK)
5/9/2030
1,081,051
1,081,051
1,032,404
0.2
%
NewFold Digital Holdings Gr (6)(8)
Professional Services
7.38% (S +CSA + 3.50%)
4/30/2029
3,407,396
3,407,396
2,857,953
0.6
%
NewFold Digital Holdings Gr (6)(8)
Professional Services
7.38% (S +CSA + 3.50%)
4/30/2029
601,305
601,305
383,332
0.1
%
Nexus Buyer LLC (6)(8)
Diversified Financial Services
7.22% (S + 3.50%)
7/31/2031
9,875,437
9,686,019
9,752,537
2.1
%
Nexus Buyer LLC
Diversified Financial Services
9.47% (S + 5.75%)
1/30/2032
6,000,000
5,941,330
5,957,820
1.3
%
Northstar Group Services, Inc. (7)(8)
Construction and Engineering
8.59% (S + 4.75%)
5/31/2030
11,189,625
11,193,722
11,296,262
2.4
%
NSM Top Holdings Corp (6)(8)
Healthcare Equipment and Supplies
8.02% (S +CSA + 4.25%)
5/14/2029
6,774,643
6,757,163
6,822,743
1.5
%
F - 10
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Nvent Electric Public Limited Company (4)(8)
Electrical Equipment
6.84% (S + 3.00%)
1/30/2032
$
1,995,000
$
1,986,233
$
2,010,591
0.4
%
Ontario Gaming GTA Limited Partnership (4)(6)(8)
Hotels, Restaurants and Leisure
7.92% (S + 4.25%)
8/1/2030
8,258,216
8,256,463
7,662,427
1.7
%
Optimizely North America Inc. (7)
Software
8.72% (S + 5.00%)
10/30/2031
4,507,604
4,507,604
4,483,731
1.0
%
Orchid Merger Sub II, LLC (6)
Software
8.57% (S +CSA + 4.75%)
7/27/2027
3,559,154
3,498,095
1,739,537
0.4
%
Oregon Clean Energy, LLC (6)
Independent Power and Renewable Electricity Producers
7.17% (S + 3.50%)
7/12/2030
1,934,435
1,926,796
1,946,893
0.4
%
Osaic Holdings, Inc (8)
Diversified Financial Services
6.60% (S + 3.00%)
8/2/2032
3,000,000
2,992,801
3,016,020
0.6
%
Osmosis Buyer Limited (6)(7)
Food Products
6.87% (S + 3.00%)
7/31/2028
8,450,662
8,453,393
8,478,803
1.8
%
Outcomes Group Holdings, Inc. (8)
Healthcare Providers and Services
6.72% (S + 3.00%)
5/6/2031
2,955,206
2,944,458
2,977,577
0.6
%
Padagis, LLC (6)(8)
Pharmaceuticals
8.95% (S +CSA + 4.75%)
7/6/2028
8,983,493
8,929,106
8,511,860
1.8
%
Park River Holdings, Inc. (8)
Building Products
8.49% (S + 4.50%)
3/17/2031
3,000,000
2,956,646
3,021,405
0.7
%
Patriot Growth Insurance Services, LLC (7)
Insurance
8.82% (S +CSA + 5.00%)
10/16/2028
1,984,624
1,975,962
1,967,357
0.4
%
Patriot Growth Insurance Services, LLC (7)
Insurance
8.67% (S + 5.00%)
10/16/2028
4,959,747
4,911,315
4,929,740
1.1
%
Peraton Corp. (7)(8)
Aerospace and Defense
7.69% (S +CSA + 3.75%)
2/1/2028
8,593,896
8,596,681
7,993,871
1.7
%
Petco Health and Wellness Company Inc (4)(6)(8)
Specialty Retail
7.18% (S +CSA + 3.25%)
3/3/2028
5,811,942
5,480,509
5,762,191
1.2
%
Pioneer AcquisitionCo LLC (8)
Construction and Engineering
6.94% (S + 3.25%)
10/27/2032
2,500,000
2,493,791
2,514,063
0.5
%
Plano Holdco, Inc. (8)
Diversified Financial Services
7.17% (S + 3.50%)
10/2/2031
4,962,500
4,941,063
4,826,031
1.0
%
Pluto Acquisition I, Inc. (6)
Healthcare Providers and Services
9.19% (S + 5.50%)
6/20/2028
1,331,311
1,331,311
1,351,280
0.3
%
PMHC II Inc. (6)(8)
Chemicals
8.33% (S +CSA + 4.25%)
4/23/2029
10,804,172
10,677,252
6,053,361
1.3
%
Precisely Software Incorporated (6)(8)
IT Services
8.10% (S +CSA + 4.00%)
4/24/2028
10,554,540
10,541,028
9,850,024
2.1
%
Pretium PKG Holdings, Inc.
Containers and Packaging
8.90% (S + 5.00% incl. 1.25% PIK)
10/2/2028
1,538,541
1,505,623
1,552,249
0.3
%
Pretium PKG Holdings, Inc. (6)(7)
Containers and Packaging
8.50% (S + 5.30% incl. 0.70% PIK)
10/2/2028
5,636,990
5,608,618
2,311,166
0.5
%
Project Alpha Intermediate Holding, Inc. (6)(8)
Software
6.92% (S + 3.25%)
10/26/2030
7,845,675
7,763,855
7,842,301
1.7
%
Proofpoint Inc. (8)
Software
6.67% (S + 3.00%)
8/31/2028
3,959,698
3,958,123
3,986,643
0.9
%
PT Intermediate Holdings III, LLC (7)
Machinery
8.67% (S + 5.00% incl. 1.75% PIK)
4/9/2030
10,070,315
10,023,758
10,043,681
2.2
%
PVKG Investment Holdings Inc. (6)(7)
IT Services
9.52% (S + 5.75%)
6/4/2030
1,737,165
1,707,660
739,381
0.2
%
Radar Bidco SARL (4)(8)
Diversified Consumer Services
7.19% (S + 3.25%)
4/4/2031
1,995,000
1,995,000
2,010,800
0.4
%
Radiology Partners Inc (6)(8)
Healthcare Providers and Services
8.17% (S + 4.50%)
6/25/2032
7,980,000
7,903,664
7,975,651
1.7
%
Raven Acquisition Holdings LLC (8)
Healthcare Technology
6.72% (S + 3.00%)
11/19/2031
2,585,032
2,792,227
2,798,683
0.6
%
RC Buyer, Inc. (8)
Auto Components
7.33% (S +CSA + 3.50%)
7/28/2028
1,509,787
1,509,168
1,506,013
0.3
%
RealPage, Inc. (6)
Real Estate Management and Development
7.42% (S + 3.75%)
4/24/2028
5,955,000
5,933,718
5,981,678
1.3
%
RealTruck Group, Inc.
Auto Components
8.83% (S +CSA + 5.00%)
1/31/2028
1,965,000
1,938,534
1,538,595
0.3
%
RealTruck Group, Inc. (6)
Auto Components
7.58% (S +CSA + 3.75%)
1/31/2028
6,767,524
6,767,007
5,244,831
1.1
%
Recovery Solutions Parent, LLC
Healthcare Providers and Services
11.17% (S + 7.50/S + 8.50% incl. 5.00% PIK)
1/28/2030
2,366,370
2,366,370
2,369,328
0.5
%
Red Planet Borrower LLC (6)(8)
IT Services
7.72% (S + 4.00%)
9/8/2032
13,000,000
12,873,097
13,040,625
2.8
%
Redstone Holdco 2 LP (6)(7)
IT Services
8.85% (S +CSA + 4.75%)
4/14/2028
4,892,258
4,878,227
2,052,302
0.4
%
Renaissance Holding Corp. (6)(8)
Software
7.72% (S + 4.00%)
4/5/2030
11,498,135
11,391,380
10,074,608
2.2
%
F - 11
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Rithum Holdings Inc (6)(8)
IT Services
8.42% (S + 4.75%)
7/21/2032
$
4,987,500
$
4,890,635
$
4,995,281
1.1
%
Rocket Software, Inc. (6)(8)
Software
7.47% (S + 3.75%)
11/28/2028
12,107,130
11,947,759
12,119,721
2.6
%
Rohm Holding GmbH (4)(6)(7)(8)
Chemicals
9.70% (S + 5.50% incl. 0.25bp PIK)
1/31/2029
10,583,568
10,475,309
9,926,540
2.1
%
Ryan, LLC (7)(8)
Professional Services
7.22% (S + 3.50%)
11/5/2032
7,321,546
7,238,466
7,239,178
1.6
%
SCIL IV LLC (4)(7)(8)
Chemicals
7.79% (S + 4.00%)
11/8/2032
7,000,000
6,966,411
7,024,080
1.5
%
Sitel Group (4)
IT Services
7.68% (S +CSA + 3.75%)
8/28/2028
2,953,727
2,441,050
1,993,766
0.4
%
Solina Group Services SAS (4)(8)
Food Products
6.98% (S + 3.25%)
3/12/2029
1,985,000
1,985,000
2,003,193
0.4
%
Specialty Building Products Holdings, LLC (6)(7)(8)
Building Products
7.57% (S +CSA + 3.75%)
10/5/2028
9,625,000
9,619,674
9,010,203
1.9
%
Star Holding LLC (6)(8)
Energy Equipment and Services
8.22% (S + 4.50%)
7/31/2031
6,934,887
6,912,805
6,830,863
1.5
%
Starlight Parent LLC (8)
Software
7.70% (S + 4.00%)
4/16/2032
2,493,750
2,424,488
2,495,309
0.5
%
Stepstone Group MidCo 2 GmbH, The (4)(6)(8)
Interactive Media Services
8.20% (S + 4.50%)
12/4/2031
9,950,000
9,871,014
9,336,384
2.0
%
Summer BC Holdco B LLC (4)(6)(7)(8)
Media
8.93% (S +CSA + 5.00%)
2/12/2029
11,675,010
11,616,379
10,949,000
2.4
%
Tank Holding Corp.
Containers and Packaging
9.57% (S +CSA + 5.75%)
3/31/2028
2,436,869
2,408,278
2,249,534
0.5
%
Tank Holding Corp.
Containers and Packaging
9.82% (S +CSA + 6.00%)
3/31/2028
2,042,250
2,019,375
1,884,823
0.4
%
Tank Holding Corp.
Containers and Packaging
9.82% (S +CSA + 6.00%)
3/31/2028
885,293
875,754
817,050
0.2
%
TCP Sunbelt Acquisition Co. (6)(8)
Electronic Equipment, Instruments and Components
8.07% (S + 4.25%)
10/16/2031
9,900,000
9,872,661
10,017,612
2.2
%
team.Blue Finco Sarl (4)(6)(8)
IT Services
6.92% (S + 3.25%)
7/12/2032
4,975,000
4,950,209
5,007,661
1.1
%
The E.W. Scripps Company (4)(6)
Media
9.60% (S +CSA + 5.75%)
6/30/2028
3,001,441
2,834,218
3,043,251
0.7
%
Thryv, Inc. (6)
Professional Services
10.47% (S + 6.75%)
5/1/2029
5,400,000
5,358,758
5,400,000
1.2
%
TMC Buyer, Inc. (6)(8)
Construction and Engineering
8.57% (S + 4.75%)
10/25/2030
6,542,181
6,507,584
6,580,027
1.4
%
Tosca Services, LLC (8)
Containers and Packaging
9.22% (S + 5.50%)
11/30/2028
1,372,991
1,372,991
1,394,877
0.3
%
Tosca Services, LLC (6)
Containers and Packaging
8.57% (S + CSA + 4.75% incl. 3.25% PIK)
11/30/2028
8,099,646
8,021,862
7,657,527
1.6
%
Transnetwork LLC (7)
Diversified Financial Services
8.42% (S + 4.75%)
12/29/2030
5,096,000
5,028,765
4,841,200
1.0
%
U.S. Renal Care, Inc. (6)(7)(8)
Healthcare Providers and Services
8.83% (S +CSA + 5.00%)
6/20/2028
7,679,420
7,626,133
7,252,253
1.6
%
US Fertility Enterprises, LLC (6)(8)
Healthcare Providers and Services
7.24% (S + 3.50%)
12/10/2032
4,342,105
4,319,079
4,367,105
0.9
%
USIC Holdings, Inc. (7)
Construction and Engineering
9.32% (S + 5.50%)
9/10/2031
2,503,709
2,483,414
2,491,190
0.5
%
USIC Holdings, Inc. (7)(17)
Construction and Engineering
9.32% (S + 5.50%)
9/10/2031
84,964
84,964
84,221
0.0
%
USIC Holdings, Inc. (7)(18)
Construction and Engineering
9.04% (S + 5.25%)
9/10/2031
150,820
150,820
149,211
0.0
%
Vacation Rental Brands, LLC (7)
Real Estate Management and Development
8.92% (S + 5.25%)
5/6/2032
1,385,417
1,385,417
1,341,697
0.3
%
Veracode (6)(8)
Software
8.69% (S +CSA + 4.75%)
5/2/2029
8,514,000
8,492,190
5,565,389
1.2
%
Verifone Systems Inc (6)
Commercial Services and Supplies
9.35% (S +CSA + 5.25%)
8/18/2028
8,087,742
8,087,742
7,682,223
1.7
%
Watlow Electric Manufacturing Company (8)
Electrical Equipment
6.84% (S + 3.00%)
3/2/2028
3,727,235
3,727,037
3,756,941
0.8
%
Xplor T1, LLC (7)
Professional Services
7.29% (S + 3.50%)
12/1/2032
7,159,556
7,132,236
7,177,455
1.5
%
Zayo Group Holdings, Inc. (6)(8)
Diversified Telecommunication Services
7.33% (S + CSA + 3.50% incl. 0.50% PIK)
3/11/2030
6,835,133
6,788,086
6,505,816
1.4
%
Total First Lien Senior Secured
1,097,380,089
1,088,644,221
1,014,924,713
218.6
%
F - 12
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
Second Lien Senior Secured(2)
American Rock Salt Company LLC
Metals and Mining
11.33% (S +CSA + 7.25%)
6/4/2029
$
2,750,000
$
2,764,708
$
1,623,654
0.4
%
ARC Falcon I Inc. (8)
Chemicals
10.82% (S +CSA + 7.00%)
9/24/2029
2,427,315
2,357,216
2,426,185
0.5
%
Aruba Investments, Inc. (6)(8)
Chemicals
11.57% (S +CSA + 7.75%)
11/24/2028
3,350,000
3,327,203
3,025,050
0.7
%
Asurion, LLC (6)(8)
Insurance
9.08% (S +CSA + 5.25%)
1/19/2029
9,000,000
8,888,879
8,863,740
1.9
%
Barracuda Networks, Inc.
Software
10.84% (S + 7.00%)
8/15/2030
4,000,000
3,901,527
2,165,360
0.5
%
Delta Topco, Inc. (6)
IT Services
8.94% (S + 5.25%)
12/24/2030
4,500,000
4,482,117
4,447,035
1.0
%
Edelman Financial Engines Center, LLC, The (8)
Diversified Financial Services
8.97% (S + 5.25%)
10/20/2028
2,500,000
2,496,114
2,501,050
0.5
%
First Brands Group, LLC (9)
Auto Components
14.49% (S +CSA + 10.61%)
3/24/2028
3,144,855
2,985,000
14,309
0.0
%
Flash Charm, Inc.
IT Services
10.75%(S+CSA+6.75%)
3/2/2029
3,353,659
3,363,458
2,951,220
0.6
%
Gainwell Acquisition Corp.
Healthcare Providers and Services
12.04% (S +CSA + 8.00%)
10/2/2028
3,000,000
2,973,544
2,925,000
0.6
%
Gainwell Acquisition Corp.
Healthcare Providers and Services
12.04% (S +CSA + 8.00%)
10/2/2028
2,400,000
2,304,764
2,340,000
0.5
%
Help/Systems Holdings, Inc.
Software
12.96% (S in cash, 9% PIK)
5/21/2029
3,729,341
3,729,341
2,517,305
0.5
%
Infinite Bidco, LLC (6)(8)
Electronic Equipment, Instruments and Components
11.10%(S+CSA+7.00%)
2/24/2029
2,729,999
2,727,786
2,619,952
0.6
%
Ivanti Software, Inc.
Software
11.40% (S +CSA + 7.25%)
6/1/2029
3,030,000
3,030,000
1,325,625
0.3
%
Mitchell International, Inc. (6)(8)
Software
8.97% (S + 5.25%)
6/7/2032
7,500,000
7,469,488
7,470,938
1.6
%
OneDigital Borrower LLC (8)
Insurance
8.97% (S + 5.25%)
7/2/2032
5,000,000
4,980,089
5,053,150
1.1
%
Peraton Corp.
Aerospace and Defense
11.67% (S +CSA + 7.75%)
2/1/2029
2,898,876
2,933,325
2,297,968
0.5
%
Pretium PKG Holdings, Inc. (6)(9)
Containers and Packaging
10.86% (S +CSA + 6.75%)
9/30/2029
2,000,000
1,980,000
76,430
0.0
%
Vision Solutions, Inc. (8)
IT Services
11.35% (S +CSA + 7.25%)
4/23/2029
5,500,000
5,452,413
5,225,000
1.1
%
Total Second Lien Senior Secured
72,814,045
72,146,972
59,868,971
12.9
%
Corporate Bonds
Altice Financing S.A. (4)
Diversified Telecommunication Services
5.00%
1/15/2028
3,000,000
2,784,520
2,115,000
0.4
%
KOBE US Midco 2 Inc
Chemicals
9.25% Cash/10.00% PIK
11/1/2026
2,424,935
2,421,049
2,091,506
0.4
%
National Mentor Holdings, Inc. (8)
Healthcare Providers and Services
10.50%
12/15/2030
700,000
686,884
704,375
0.2
%
Smyrna Ready Mix Concrete (8)
Construction Materials
6.00%
11/1/2028
3,000,000
3,000,000
3,018,750
0.7
%
Total Corporate Bonds
9,124,935
8,892,453
7,929,631
1.7
%
Total Debt Investments
$
1,179,319,069
$
1,169,683,646
$
1,082,723,315
233.2
%
F - 13
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
CLO Mezzanine(2)
AIMCO 2015-AA FR4 (4)
Structured Note
11.41% (S + 7.18%)
10/17/2038
$
2,000,000
$
1,960,985
$
1,939,899
0.5
%
AIMCO 2018-AA FR (4)
Structured Note
11.57% (S + 7.25%)
10/17/2037
3,000,000
2,971,246
2,882,172
0.7
%
APID 2016-24A DR (4)
Structured Note
9.95% (S +CSA + 5.80%)
10/20/2030
2,200,000
2,152,191
2,206,289
0.5
%
BABSN 2022-2A ER (4)
Structured Note
10.80% (S + 6.90%)
7/15/2039
3,000,000
3,055,415
3,004,815
0.6
%
CBAMR 2018-8A E1R (4)
Structured Note
11.30% (S + 7.40%)
7/15/2037
1,000,000
1,020,513
1,014,285
0.2
%
CGMS 2020-2A ER (4)
Structured Note
12.65% (S +CSA + 8.53%)
1/25/2035
4,000,000
3,917,139
3,727,602
0.8
%
CIFC 2023-2A E (4)
Structured Note
11.84% (S + 7.97%)
1/21/2037
2,700,000
2,761,264
2,760,819
0.6
%
ELM14 2022-1A FR (4)
Structured Note
12.28% (S + 8.01%)
10/20/2038
1,500,000
1,456,299
1,458,631
0.3
%
ELM20 2022-7A ER (4)
Structured Note
9.88% (S + 6.00%)
1/17/2037
2,400,000
2,432,686
2,404,159
0.5
%
ELMW2 2019-2A FRR (4)
Structured Note
12.15% (S + 7.82%)
10/20/2037
2,000,000
1,927,798
1,977,704
0.4
%
ELMW8 2021-1X ER (4)
Structured Note
10.13% (S + 6.25%)
4/20/2037
2,250,000
2,293,501
2,240,870
0.5
%
GLM 2021-9A FR (4)
Structured Note
12.34% (S + 8.46%)
4/20/2037
3,000,000
2,921,738
2,961,785
0.6
%
MORGN 2020-6A F (4)
Structured Note
12.16% (S +CSA + 8.04%)
10/23/2034
2,800,000
2,743,300
2,490,592
0.5
%
POST 2018-1X FR (4)
Structured Note
13.89% (S + 10.00%)
10/16/2037
2,070,000
1,977,462
2,064,202
0.4
%
THAYR 2017-1A ER (4)
Structured Note
13.02% (S +CSA + 8.87%)
4/20/2034
1,300,000
1,272,461
1,166,528
0.3
%
Total CLO Mezzanine
35,220,000
34,863,998
34,300,352
7.4
%
CLO Equity
BABSN 2018-4A SUB (4)
Structured Subordinated Note
NA
10/15/2030
4,000,000
164,605
153,200
0.0
%
DRSLF 2020-86A SUB (4)
Structured Subordinated Note
NA
7/17/2034
6,000,000
2,675,583
1,979,467
0.4
%
HLM 12A-18 SUB (4)
Structured Subordinated Note
NA
7/18/2031
7,500,000
28,943
25,500
0.0
%
LNGPT 2017-1A SUB (4)
Structured Subordinated Note
NA
1/17/2030
6,358,000
468,702
468,585
0.1
%
REG12 2019-1A SUB (4)
Structured Subordinated Note
NA
10/15/2032
6,000,000
3,159,484
2,572,372
0.6
%
SPEAK 2017-4A SUB (4)
Structured Subordinated Note
NA
10/26/2034
5,000,000
1,828,965
884,283
0.2
%
STRAS 2021-1A SUB (4)
Structured Subordinated Note
NA
12/29/2029
2,000,000
-
4,200
0.0
%
Total CLO Equity
36,858,000
8,326,282
6,087,607
1.3
%
F - 14
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Number of Shares
Cost
Fair Value
Percentage of Net Assets
Equity Investments
Aimbridge Acquisition Co., Inc. (6)(8)
Hotels, Restaurants and Leisure
70,561
$
4,657,026
$
4,762,868
1.0
%
Mitel Networks
Diversified Telecommunication Services
3,061
30,610
7,668
0.0
%
New WPCC Parent, LLC (6)
Healthcare Providers and Services
62,372
23,390
38,983
0.0
%
New WPCC Parent, LLC
Healthcare Providers and Services
60,894
766,824
426,258
0.1
%
PVKG Investments Holdings Inc
IT Services
89,288
1,258,194
424,118
0.1
%
Recovery Solutions Parent, LLC (6)
Healthcare Providers and Services
98,983
2,229,831
2,152,880
0.5
%
Total Equity Investments
385,159
8,965,875
7,812,775
1.7
%
Total Equity and Other Investments
72,463,159
52,156,155
48,200,734
10.4
%
F - 15
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2025
Number of Shares
Cost
Fair Value
Percentage of
Net Assets
Short-Term Investments
Fidelity Investments Money Market Government Portfolio - Institutional Class, 4.08% (6)(7)(10)
43,912,610
$
43,912,610
$
43,912,610
9.5
%
Morgan Stanley Liquidity Funds US Dollar Treasury Liquidity Fund - Institutional Class, 3.97% (8)(10)
28,803,659
28,803,659
28,803,659
6.2
%
Total Short-Term Investments
72,716,269
72,716,269
72,716,269
15.7
%
Total Investments
$
1,324,498,497
$
1,294,556,070
$
1,203,640,318
259.3
%
Liabilities in Excess of Other Assets
(739,517,146
)
(159.3
)%
Net Assets
$
464,123,172
100.0
%
(1)
The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(2)
Loan contains a variable rate structure, subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR” or “S”), SOFR + Credit Spread Adjustment (S+CSA), where the Credit Spread Adjustment is a defined additional spread amount based on the tenor of SOFR the borrower selects, the Euro Interbank Offered Rate (“Euribor” or “E”), the U.S. Prime Rate (“P”), or an alternate base rate (which can include the Federal Funds Effective Rate), at the borrower’s option, and which reset periodically based on the terms of the loan agreement. For the holdings as of December 31, 2025 that have S+CSA as the base rate, the credit spread adjustment ranges from 0.1 bps to 0.26 bps.
(3)
As of December 31, 2025, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
(4)
Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2025, 17.8% of the Company’s total assets were in non-qualifying investments.
(5)
As of December 31, 2025, the tax cost of the Company’s investments approximates their amortized cost.
(6)
Security or portion thereof held within Palmer Square BDC Funding I, LLC (“PS BDC Funding”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Bank of America, N.A. (“BofA N.A.”) (see Note 6 to the consolidated financial statements).
(7)
Security or portion thereof held within Palmer Square BDC Funding II, LLC (“PS BDC Funding II”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Wells Fargo Bank, National Association (“WFB”) (see Note 6 to the consolidated financial statements).
(8)
Security or portion thereof held within Palmer Square BDC CLO I, LLC (“PS BDC CLO I Funding”) and is pledged as collateral supporting the notes offered in the CLO Transaction (see Note 6 to the consolidated financial statements).
(9)
Loan was on non-accrual status as of December 31, 2025.
(10)
7-day effective yield as of December 31, 2025.
(11)
Of the $528,262 commitment to Aptean Inc, $377,330 was unfunded as of December 31, 2025.
(12)
Of the $368,421 commitment to Cooper's Hawk Intermediate LLC, $315,789 was unfunded as of December 31, 2025.
(13)
Of the $1,197,934 commitment to Dwyer Instruments LLC, $768,720 was unfunded as of December 31, 2025.
(14)
Of the $559,500 commitment to Galway Borrower, LLC, $461,641 was unfunded as of December 31, 2025.
(15)
Of the $4,436,067 commitment to Galway Borrower, LLC, $3,530,286 was unfunded as of December 31, 2025.
(16)
Of the $636,370 commitment to MRI Software, LLC, $509,096 was unfunded as of December 31, 2025.
(17)
Of the $148,535 commitment to USIC Holdings, Inc, $63,572 was unfunded as of December 31, 2025.
(18)
Of the $321,872 commitment to USIC Holdings, Inc, $171,052 was unfunded as of December 31, 2025.
The accompanying notes are an integral part of these consolidated financial statements.
F - 16
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Debt Investments
First Lien Senior Secured(2)
888 Holdings PLC (4)(8)
Hotels, Restaurants and Leisure
9.50% (S + 5.25%)
7/8/2028
$
7,299,910
$
7,148,457
$
7,064,961
1.2
%
AAdvantage Loyalty IP Ltd. (4)(8)
Insurance
9.63% (S + CSA + 4.75%)
4/20/2028
2,625,000
2,608,954
2,699,273
0.4
%
AccentCare, Inc. (8)
Healthcare Providers and Services
8.52% (S + 4.00%)
9/20/2028
5,850,434
5,851,160
5,358,002
0.9
%
Accession Risk Management Group, Inc. (6)
Insurance
9.30% (S + 4.75%)
11/1/2029
2,974,487
2,974,486
2,974,486
0.5
%
Accession Risk Management Group, Inc. (6)
Insurance
9.26% (S + 4.75%)
11/1/2029
790,047
771,398
791,034
0.0
%
Accession Risk Management Group, Inc. (7)
Insurance
9.15% (S + 4.75%)
11/1/2029
6,066,872
6,029,528
6,074,456
1.0
%
Acrisure, LLC (8)
Insurance
7.36% (S + 3.00%)
11/6/2030
6,919,034
6,904,897
6,939,030
1.2
%
Ahead DB Holdings, LLC (8)
IT Services
7.83% (S + 3.50%)
2/1/2031
4,447,650
4,408,272
4,483,787
0.8
%
Aimbridge Acquisition Co., Inc. (8)
Hotels, Restaurants and Leisure
8.60% (S + CSA + 3.75%)
2/2/2026
8,099,719
7,991,683
5,281,705
1.0
%
Albion Financing 3 S.a r.l. (Albion Financing LLC) (4)(8)
Diversified Consumer Services
9.10% (S + CSA + 4.25%)
8/16/2029
2,985,000
2,985,000
3,019,819
0.6
%
Alliance Laundry Systems LLC (8)
Machinery
7.84% (S + 3.50%)
8/19/2031
3,000,000
2,985,548
3,023,849
0.6
%
Allied Universal Holdco LLC (8)
Professional Services
8.21% (S + CSA + 3.75%)
5/12/2028
9,741,810
9,725,291
9,785,744
1.8
%
American Rock Salt Company LLC (6)
Metals and Mining
11.78% (S + CSA + 7.00%)
6/9/2028
704,345
638,293
714,323
0.1
%
American Rock Salt Company LLC (6)(11)
Metals and Mining
11.47% (S + CSA + 7.00%)
6/9/2028
188,127
188,127
198,881
0.0
%
American Rock Salt Company LLC (6)
Metals and Mining
8.78% (S + CSA + 4.00%)
6/9/2028
5,794,849
5,792,135
5,274,211
1.0
%
Amynta Agency Borrower Inc. (Amynta Warranty Borrower Inc.) (8)
Insurance
7.34% (S + 3.00%)
12/6/2031
10,491,160
10,331,015
10,504,274
2.0
%
Ankura Consulting Group, LLC (6)
Professional Services
7.84% (S + 3.50%)
12/17/2031
4,378,000
4,378,000
4,390,762
0.8
%
AP Gaming I, LLC (4)(8)
Hotels, Restaurants and Leisure
8.11% (S + 3.75%)
2/15/2029
8,285,870
8,205,740
8,367,030
1.6
%
Aptean Acquiror Inc. (7)(12)
Software
2.82% (S + 5.00%)
1/30/2031
85,148
82,254
86,271
0.0
%
Aptean Acquiror Inc. (7)
Software
9.58% (S + 5.00%)
1/30/2031
5,215,792
5,169,294
5,251,590
1.0
%
Aramsco, Inc. (7)
Machinery
9.08% (S + 4.75%)
10/10/2030
5,448,563
5,376,923
5,082,978
0.9
%
ARC Falcon I Inc. (8)
Chemicals
7.96% (S + CSA + 3.50%)
8/31/2028
7,083,440
7,062,793
7,136,601
1.3
%
Aretec Group, Inc. (8)
Diversified Financial Services
7.86% (S + 3.50%)
8/9/2030
10,920,063
10,815,659
10,956,754
2.0
%
Aruba Investments, Inc. (8)
Chemicals
8.46% (S + CSA + 4.00%)
10/28/2027
7,933,386
7,900,656
7,973,053
1.5
%
Ascend Learning, LLC (8)
Professional Services
7.96% (S + CSA + 3.50%)
11/18/2028
10,244,388
10,184,764
10,312,462
1.9
%
Aspire Bakeries Holdings, LLC (8)
Food Products
8.61% (S + 4.25%)
12/13/2030
10,583,342
10,578,140
10,702,404
2.0
%
AssuredPartners, Inc (8)
Insurance
7.86% (S + 3.50%)
2/14/2031
9,925,000
9,913,322
9,957,554
1.9
%
Athletico Management, LLC (6)
Healthcare Providers and Services
8.73% (S + CSA + 4.25%)
2/2/2029
7,044,375
7,021,551
5,462,913
1.0
%
Autokiniton US Holdings, Inc. (8)
Auto Components
8.47% (S + CSA + 4.00%)
4/6/2028
9,966,137
9,963,966
9,922,535
1.8
%
Aveanna Healthcare LLC (4)(8)
Healthcare Providers and Services
8.36% (S + CSA + 3.75%)
6/30/2028
9,610,655
9,532,100
9,546,407
1.8
%
Bach Finance Limited (4)(8)
Diversified Consumer Services
8.26% (S + 3.75%)
2/26/2031
1,990,000
1,985,781
2,006,169
0.4
%
BarBri Holdings, Inc. (7)
Professional Services
10.42% (S + CSA + 5.75%)
4/28/2028
7,250,000
7,250,000
7,250,000
1.3
%
Barracuda Networks, Inc. (8)
Software
9.09% (S + 4.50%)
8/15/2029
10,319,697
10,101,711
9,573,480
1.8
%
B'laster Holdings, LLC (7)
Chemicals
9.12% (S + 4.75%)
10/25/2029
1,633,334
1,633,334
1,614,909
0.3
%
F - 17
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
B'laster Holdings, LLC (6)
Chemicals
9.08% (S + 4.75%)
10/25/2029
$
4,389,000
$
4,310,310
$
4,339,477
0.8
%
Boxer Parent Company Inc. (8)
Software
8.34% (S + 3.75%)
7/30/2031
9,950,000
9,906,984
10,044,426
1.9
%
Carriage Purchaser, Inc. (8)
Road and Rail
8.36% (S + 4.00%)
10/2/2028
8,793,633
8,793,520
8,833,028
1.6
%
Carroll County Energy LLC (6)
Independent Power and Renewable Electricity Producers
8.33% (S + 4.00%)
6/30/2031
6,705,455
6,681,412
6,774,589
1.3
%
Castle US Holding Corporation (7)
Professional Services
8.53% (S + CSA + 3.75%)
1/27/2027
1,941,053
1,937,162
1,156,304
0.2
%
Castle US Holding Corporation (6)
Professional Services
8.78% (S + CSA + 4.00%)
1/31/2027
5,935,123
5,906,293
3,575,912
0.7
%
CCI Buyer, Inc. (8)
Wireless Telecommunication Services
8.33% (S + 4.00%)
12/17/2027
9,626,106
9,621,288
9,647,572
1.8
%
Cengage Learning, Inc. (8)
Diversified Consumer Services
8.01% (S + 3.50%)
3/24/2031
5,970,000
5,929,669
6,008,387
1.1
%
Century De Buyer LLC (8)
Media
7.90% (S + 3.50%)
10/30/2030
1,990,000
1,973,127
2,010,726
0.4
%
Congruex Group LLC (7)
Construction and Engineering
10.49% (S + 6.50% incl 5.00% PIK)
4/28/2029
6,218,118
6,113,609
4,838,473
0.9
%
Connectwise LLC (8)
IT Services
8.09% (S + CSA + 3.50%)
9/29/2028
10,729,388
10,720,742
10,813,238
2.0
%
Consolidated Communications, Inc. (4)(8)
Diversified Telecommunication Services
7.97% (S + CSA + 3.50%)
10/2/2027
8,428,009
8,052,013
8,357,256
1.6
%
ConvergeOne Holdings, Inc. (6)
IT Services
10.21% (S + 5.75%)
6/4/2030
1,737,165
1,702,593
1,679,621
0.3
%
Corelogic, Inc. (8)
Internet Software and Services
7.97% (S + CSA + 3.50%)
6/29/2028
9,719,540
9,664,400
9,614,520
1.8
%
CP Atlas Buyer, Inc (8)
Building Products
8.21% (S + CSA + 3.75%)
11/23/2027
6,757,888
6,698,726
6,602,356
1.2
%
CPM Holdings, Inc. (8)
Machinery
9.05% (S + 4.50%)
9/27/2028
7,969,500
7,925,726
7,749,223
1.4
%
Creation Technologies Inc. (4)(8)
Electronic Equipment, Instruments and Components
10.35% (S + CSA + 5.50%)
10/5/2028
9,841,895
9,645,638
9,681,964
1.8
%
Crown Subsea Communications Holding, Inc. (8)
Construction and Engineering
8.57% (S + 4.00%)
1/30/2031
7,417,737
7,394,854
7,547,548
1.4
%
Curia Global, Inc. (8)
Healthcare Providers and Services
8.44% (S + CSA + 3.75%)
8/30/2026
4,751,577
4,747,305
4,556,074
0.8
%
Deerfield Dakota Holding, LLC (8)
Diversified Financial Services
8.08% (S + 3.75%)
4/9/2027
4,775,000
4,746,893
4,681,004
0.9
%
Delivery Hero SE (4)(6)
Diversified Consumer Services
9.52% (S + 5.00%)
12/12/2029
5,453,775
5,430,162
5,492,415
1.0
%
Delta Topco, Inc. (6)
IT Services
8.20% (S + 3.50%)
11/30/2029
9,950,000
9,928,955
10,040,197
1.9
%
DIRECTV Financing, LLC (8)
Media
9.85% (S + CSA + 5.00%)
8/2/2027
2,151,993
2,142,142
2,162,957
0.4
%
Dotdash Meredith, Inc. (4)(8)
Media
8.05% (S + 3.50%)
12/1/2028
10,427,775
10,391,889
10,519,018
2.0
%
Dwyer Instruments, LLC (6)
Electronic Equipment, Instruments and Components
9.27% (S + 4.75%)
7/21/2029
8,309,856
8,298,075
8,247,361
1.5
%
ECL Entertainment, LLC (7)
Hotels, Restaurants and Leisure
7.86% (S + 3.50%)
8/30/2030
4,950,125
4,865,484
4,984,949
0.9
%
Edelman Financial Engines Center, LLC, The (6)
Diversified Financial Services
7.36% (S + 3.00%)
4/7/2028
3,735,657
3,735,657
3,762,890
0.7
%
Edgewater Generation, L.L.C. (8)
Independent Power and Renewable Electricity Producers
8.61% (S + 4.25%)
8/1/2030
8,282,051
8,291,034
8,409,264
1.6
%
EFS Cogen Holdings I, LLC (8)
Independent Power and Renewable Electricity Producers
8.11% (S + 3.50%)
10/3/2031
6,611,286
6,614,123
6,652,607
1.2
%
Endurance International Group, Inc., The (8)
Professional Services
8.14% (S + CSA + 3.50%)
2/10/2028
4,591,024
4,549,281
3,118,315
0.6
%
Enverus Holdings, Inc. (7)(13)
Software
9.86% (S + 5.50%)
12/22/2029
14,089
8,187
16,806
0.0
%
Enverus Holdings, Inc. (7)
Software
9.86% (S + 5.50%)
12/22/2029
6,169,595
6,086,741
6,185,913
1.2
%
EP Purchaser, LLC (8)
Professional Services
9.09% (S + CSA + 4.50%)
11/6/2028
10,146,882
10,093,302
10,210,300
1.9
%
EPIC Y-Grade Services, LP (8)
Energy Equipment and Services
10.34% (S + 5.75%)
6/29/2029
9,975,000
9,751,427
10,008,516
1.9
%
Everest SubBidCo (4)(8)
IT Services
8.90% (S + 4.50%)
12/8/2031
5,340,000
5,260,000
5,290,000
1.0
%
F - 18
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized
Cost(1)(5)
Fair Value
Percentage of
Net Assets
Filtration Group Corporation (8)
Industrial Conglomerates
7.97% (S + CSA + 3.50%)
10/21/2028
$
3,929,538
$
3,899,111
$
3,965,395
0.7
%
First Brands Group, LLC (8)
Auto Components
9.85% (S + CSA + 5.00%)
3/30/2027
8,628,717
8,637,079
8,125,404
1.5
%
Flash Charm, Inc. (8)
IT Services
8.07% (S + 3.50%)
3/2/2028
9,626,400
9,606,066
9,472,377
1.8
%
Flexera Software LLC (8)
Software
7.35% (S + 3.00%)
3/3/2028
8,644,408
8,633,517
8,713,304
1.6
%
Forest City Enterprises, L.P. (8)
Real Estate Management and Development
7.96% (S + CSA + 3.50%)
12/8/2025
3,000,000
2,894,740
2,947,500
0.5
%
Fugue Finance, LLC (4)(8)
Diversified Consumer Services
8.51% (S + 4.00%)
1/31/2028
3,905,587
3,852,802
3,947,494
0.7
%
Gainwell Acquisition Corp. (8)
Healthcare Providers and Services
8.43% (S + CSA + 4.00%)
10/1/2027
8,697,201
8,596,938
8,445,939
1.6
%
Galway Borrower LLC (7)(15)
Insurance
8.82% (S + 0.50%)
9/29/2028
79,929
43,839
98,681
0.0
%
Galway Borrower LLC (7)(14)
Insurance
4.50% (S + 4.50%)
9/29/2028
46,802
43,167
48,264
0.0
%
Garda World Security Corporation (4)(8)
Diversified Consumer Services
7.90% (S + 3.50%)
2/1/2029
9,824,873
9,630,569
9,880,187
1.8
%
Genuine Financial Holdings LLC (8)
Professional Services
8.36% (S + 4.00%)
9/27/2030
10,384,837
10,336,150
10,514,648
2.0
%
Global Medical Response, Inc. (6)
Healthcare Providers and Services
9.53% (S + 5.50% incl 0.75% PIK)
10/31/2028
9,040,777
9,021,793
9,083,178
1.7
%
Gloves Buyer, Inc. (8)
Industrial Conglomerates
8.47% (S + CSA + 4.00%)
1/20/2028
6,488,967
6,492,118
6,495,715
1.2
%
Great Outdoors Group, LLC (8)
Specialty Retail
8.22% (S + CSA + 3.75%)
3/6/2028
6,865,743
6,849,707
6,912,087
1.3
%
Grinding Media Inc. (Molycop Ltd.) (8)
Metals and Mining
8.02% (S + 3.50%)
10/12/2028
10,779,492
10,750,795
10,846,864
2.0
%
GS AcquisitionCo, Inc. (7)
Software
9.58% (S + 5.25%)
5/25/2028
3,198,883
3,193,992
3,206,357
0.6
%
GS AcquisitionCo, Inc. (7)(16)
Software
9.58% (S + 5.25%)
5/25/2028
351,120
347,795
354,164
0.1
%
HAH Group Holding Company LLC (8)
Healthcare Providers and Services
9.36% (S + 5.00%)
9/24/2031
10,212,609
10,090,154
10,228,133
1.9
%
Hamilton Projects Acquiror, LLC (6)
Electric Utilities
8.11% (S + 3.75%)
6/2/2031
7,832,000
7,813,852
7,902,958
1.5
%
Help/Systems Holdings, Inc. (8)
Software
8.69% (S + CSA + 4.00%)
11/19/2026
6,708,446
6,689,518
5,931,742
1.1
%
Holding Socotec (4)(6)
Construction and Engineering
8.36% (S + 3.75%)
6/30/2028
4,000,000
3,990,000
4,023,340
0.7
%
Hunterstown Generation, LLC (8)
Independent Power and Renewable Electricity Producers
7.83% (S + 3.50%)
11/6/2031
2,992,500
2,977,966
3,016,440
0.6
%
Idemia Group S.A.S. (4)(8)
Internet Software and Services
8.58% (S + 4.25%)
9/30/2028
6,947,500
6,966,861
7,034,344
1.3
%
IMA Financial Group, Inc. (7)
Insurance
7.37% (S + 3.00%)
11/1/2028
4,863,063
4,849,492
4,875,220
0.9
%
Imagefirst Holdings, LLC (7)
Healthcare Providers and Services
8.58% (S + 4.25%)
4/27/2028
6,912,281
6,819,210
6,929,561
1.3
%
Inception Finco S.a r.l. (4)(7)
Healthcare Providers and Services
8.83% (S + 4.50%)
4/18/2031
3,980,000
3,960,640
4,014,328
0.7
%
Ineos Quattro Holdings UK Limited (4)(8)
Chemicals
8.61% (S + 4.25%)
10/7/2031
4,000,000
4,015,000
4,045,000
0.8
%
Ineos Quattro Holdings UK Limited (4)(6)
Chemicals
8.71% (S + CSA + 4.25%)
4/2/2029
2,992,462
3,003,508
3,018,646
0.6
%
Ineos US Finance LLC (4)(8)
Chemicals
7.35% (S + 3.00%)
2/7/2031
4,975,031
4,930,699
5,021,697
0.9
%
Infinite Bidco, LLC (8)
Electronic Equipment, Instruments and Components
8.60% (S + CSA + 3.75%)
3/2/2028
6,281,726
6,253,394
6,244,036
1.2
%
Infinite Bidco, LLC (6)
Electronic Equipment, Instruments and Components
10.77% (S + CSA + 6.25%)
3/2/2028
2,940,000
2,935,545
2,947,350
0.5
%
Inmar, Inc. (8)
Professional Services
9.36% (S + 5.00%)
10/30/2031
7,704,590
7,585,665
7,739,492
1.4
%
Invenergy Thermal Operating I LLC (8)
Independent Power and Renewable Electricity Producers
8.06% (S + 3.75%)
8/14/2029
3,977,673
3,929,315
4,027,394
0.7
%
Invenergy Thermal Operating I LLC (8)
Independent Power and Renewable Electricity Producers
8.06% (S + 3.75%)
8/14/2029
387,823
383,155
392,670
0.1
%
Ivanti Software, Inc. (8)
Software
8.90% (S + CSA + 4.00%)
12/1/2027
962,500
961,859
667,734
0.1
%
Ivanti Software, Inc. (8)
Software
9.12% (S + CSA + 4.25%)
12/1/2027
8,762,831
8,668,910
6,079,214
1.1
%
IVC Acquisition, Ltd. (4)(8)
Professional Services
9.08% (S + 4.75%)
12/12/2028
7,559,854
7,482,496
7,629,556
1.4
%
Jack Ohio Finance LLC (7)
Hotels, Restaurants and Leisure
9.22% (S + CSA + 4.75%)
10/31/2028
4,842,223
4,844,727
4,864,013
0.9
%
Kleopatra Finco S.a.r.l (4)(8)
Containers and Packaging
9.72% (S + CSA + 4.73%)
2/4/2026
1,925,000
1,924,525
1,766,188
0.3
%
LBM Acquisition, LLC (8)
Building Products
8.30% (S + CSA + 3.75%)
6/6/2031
10,486,987
10,388,333
10,414,889
1.9
%
F - 19
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
Lifescan Global Corporation (6)
Healthcare Equipment and Supplies
11.12% (S + CSA + 6.50%)
12/31/2026
$
4,915,602
$
4,909,410
$
1,720,461
0.3
%
Lightstone Holdco LLC (8)
Independent Power and Renewable Electricity Producers
10.34% (S + 5.75%)
2/1/2027
13,815,952
13,328,042
13,997,287
2.6
%
Lightstone Holdco LLC (8)
Independent Power and Renewable Electricity Producers
10.34% (S + 5.75%)
2/1/2027
781,479
753,917
791,736
0.1
%
LogMeIn, Inc. (6)
IT Services
9.30% (S + CSA + 4.75%)
4/28/2028
4,110,159
4,082,690
3,755,657
0.7
%
LogMeIn, Inc. (6)
IT Services
9.30% (S + CSA + 4.75%)
4/28/2028
4,110,159
4,080,014
1,888,618
0.4
%
Logrhythm, Inc. (7)
IT Services
11.86% (S + 7.50%)
7/2/2029
6,363,636
6,363,636
6,218,582
1.2
%
LSF12 Crown US Commercial Bidco, LLC (8)
Construction and Engineering
8.80% (S + 4.25%)
12/2/2031
10,000,000
9,987,727
10,000,050
1.9
%
Magenta Security Holdings LLC (6)
Software
10.84% (S + 6.25%)
7/27/2028
949,963
938,743
969,262
0.2
%
Magenta Security Holdings LLC (6)
Software
11.60% (S + CSA + 6.75%)
7/27/2028
641,850
638,367
593,711
0.1
%
Magenta Security Holdings LLC (6)
Software
11.37% (S +CSA + 7.00 incl 6.25% PIK)
7/27/2028
1,153,421
1,148,852
693,973
0.1
%
Magenta Security Holdings LLC (6)
Software
10.62% (S +CSA + 6.25 incl 5.50% PIK)
7/27/2028
6,088,275
6,069,701
2,141,764
0.4
%
Maverick 1, LLC (6)
Software
9.10% (S + CSA + 4.25%)
5/18/2028
4,925,000
4,745,424
4,931,156
0.9
%
Max US Bidco Inc. (6)
Food Products
9.36% (S + 5.00%)
10/3/2030
5,682,063
5,432,014
5,547,114
1.0
%
Medical Solutions Holdings, Inc. (8)
Healthcare Providers and Services
8.19% (S + CSA + 3.50%)
11/1/2028
7,836,350
7,590,520
5,587,748
1.0
%
Michael Baker International, LLC (8)
Construction and Engineering
9.11% (S + 4.75%)
12/1/2028
9,071,309
9,029,932
9,122,381
1.7
%
Micro Holding Corp. (8)
IT Services
8.83% (S + 4.25%)
5/3/2028
5,798,563
5,680,945
5,808,131
1.1
%
Micro Holding Corp. (8)
IT Services
8.61% (S + 4.25%)
12/31/2031
3,914,330
3,834,932
3,920,788
0.7
%
Minotaur Acquisition, Inc. (6)
Diversified Financial Services
9.36% (S + 5.00%)
5/10/2030
1,162,791
1,162,791
1,150,257
0.2
%
Minotaur Acquisition, Inc. (7)
Diversified Financial Services
9.36% (S + 5.00%)
5/10/2030
6,959,302
6,959,302
6,875,815
1.3
%
MLN US HoldCo LLC (6)(9)
Diversified Telecommunication Services
8.95% (S + CSA + 4.50%)
12/31/2025
4,056,188
3,980,135
121,686
0.0
%
Momentive Performance Materials Inc. (8)
Chemicals
8.36% (S + 4.00%)
3/29/2028
3,807,188
3,697,971
3,854,777
0.7
%
MRI Software LLC (7)
Software
9.08% (S + 4.75%)
2/10/2027
6,344,043
6,300,467
6,305,437
1.2
%
MRI Software LLC (7)(17)
Software
9.08% (S + 4.75%)
2/10/2027
35,354
32,067
33,123
0.0
%
NAPA Management Services Corporation (8)
Healthcare Providers and Services
9.71% (S + CSA + 5.25%)
2/23/2029
9,762,169
9,632,454
9,127,677
1.7
%
Natgasoline LLC (8)
Chemicals
9.02% (S + CSA + 3.50%)
10/31/2025
4,359,454
4,340,609
4,337,657
0.8
%
National Mentor Holdings, Inc. (8)
Healthcare Providers and Services
8.18% (S + CSA + 3.75%)
2/18/2028
291,993
291,505
289,939
0.1
%
National Mentor Holdings, Inc. (8)
Healthcare Providers and Services
8.20% (S + CSA + 3.75%)
2/18/2028
8,948,227
8,934,664
8,885,276
1.7
%
Nexus Buyer LLC (8)
Diversified Financial Services
8.36% (S + 4.00%)
7/31/2031
9,950,063
9,733,624
9,998,669
1.9
%
Nielsen Consumer Inc. (8)
Media
9.11% (S + 4.75%)
3/6/2028
12,718,104
12,139,172
12,845,285
2.4
%
Northstar Group Services, Inc. (8)
Construction and Engineering
9.08% (S + 4.75%)
5/8/2030
11,303,225
11,304,691
11,389,186
2.1
%
NSM Top Holdings Corp. (8)
Healthcare Equipment and Supplies
9.98% (S + CSA + 5.25%)
5/14/2029
6,842,901
6,821,415
6,928,437
1.3
%
Nvent Electric Public Limited Company (4)(8)
Electrical Equipment
8.70% (S + 3.50%)
9/12/2031
2,000,000
1,990,000
2,024,380
0.4
%
OneDigital Borrower LLC (6)
Insurance
7.61% (S + 3.25%)
6/13/2031
7,960,000
7,921,609
7,990,089
1.5
%
Ontario Gaming GTA Limited Partnership (4)(8)
Hotels, Restaurants and Leisure
8.58% (S + 4.25%)
8/1/2030
8,342,483
8,340,478
8,370,055
1.6
%
Optimizely North America Inc. (7)
Software
9.36% (S + 5.00%)
10/30/2031
4,541,667
4,537,083
4,527,140
0.8
%
Orchid Merger Sub II, LLC (4)(6)
Software
9.21% (S + CSA + 4.75%)
7/27/2027
3,832,841
3,723,368
2,369,175
0.4
%
F - 20
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
Oregon Clean Energy, LLC (6)
Independent Power and Renewable Electricity Producers
8.32% (S + 4.00%)
6/26/2030
$
2,302,842
$
2,291,804
$
2,313,631
0.4
%
Osmosis Buyer Limited (8)
Food Products
8.05% (S + 3.50%)
7/31/2028
10,504,445
10,505,311
10,526,399
2.0
%
Outcomes Group Holdings, Inc. (8)
Healthcare Providers and Services
7.61% (S + 3.25%)
5/6/2031
4,527,278
4,507,395
4,581,606
0.9
%
Padagis, LLC (8)
Pharmaceuticals
9.60% (S + CSA + 4.75%)
7/31/2028
9,088,235
9,016,487
8,444,470
1.6
%
Patriot Growth Insurance Services, LLC (7)(18)
Insurance
9.33% (S + 5.00%)
10/16/2028
3,513,300
3,449,676
3,503,929
0.7
%
Peraton Corp. (8)
Aerospace and Defense
8.21% (S + CSA + 3.75%)
2/1/2028
8,686,121
8,694,473
8,104,325
1.5
%
Plano Holdco, Inc. (8)
Diversified Financial Services
7.83% (S + 3.50%)
8/30/2031
5,000,000
4,975,249
5,050,000
0.9
%
Pluto Acquisition I, Inc. (6)
Healthcare Providers and Services
9.84% (S + 5.50%)
6/20/2028
1,331,311
1,331,311
1,362,929
0.3
%
PMHC II Inc. (8)
Chemicals
9.06% (S + 4.25%)
4/23/2029
10,915,843
10,751,634
10,782,451
2.0
%
Precisely Software Incorporated (8)
IT Services
8.85% (S + CSA + 4.00%)
4/24/2028
10,664,770
10,644,552
10,520,795
2.0
%
Pretium PKG Holdings, Inc. (6)
Containers and Packaging
9.57% (S + 5.00% incl 1.25% PIK)
10/2/2028
1,520,722
1,477,604
1,572,054
0.3
%
Pretium PKG Holdings, Inc. (6)
Containers and Packaging
9.17% (S + 4.60% incl 0.70% PIK)
10/2/2028
5,600,234
5,566,370
4,478,423
0.8
%
Project Alpha Intermediate Holding, Inc. (8)
Software
7.58% (S + 3.25%)
10/26/2030
9,925,125
9,793,823
10,001,102
1.9
%
Project Boost Purchaser, LLC (8)
Professional Services
8.15% (S + 3.50%)
7/16/2031
10,793,890
10,796,628
10,884,073
2.0
%
Prometric Holdings, Inc. (8)
Diversified Consumer Services
9.22% (S + CSA + 4.75%)
1/31/2028
5,649,644
5,570,428
5,729,982
1.1
%
PT Intermediate Holdings III, LLC (6)
Machinery
9.60% (S + 5.00% incl 1.75% PIK)
4/9/2030
9,792,147
9,736,100
9,792,147
1.8
%
Radiology Partners, Inc. (8)
Healthcare Providers and Services
9.78% (S +CSA + 5.00 incl 1.50% PIK)
1/31/2029
5,360,361
5,358,229
5,310,778
1.0
%
RC Buyer, Inc. (8)
Auto Components
7.97% (S + CSA + 3.50%)
7/28/2028
2,031,514
2,029,270
2,024,435
0.4
%
RealPage, Inc. (6)
Real Estate Management and Development
8.08% (S + 3.75%)
4/24/2028
6,000,000
5,970,045
6,035,640
1.1
%
RealTruck Group, Inc. (6)
Auto Components
9.47% (S + CSA + 5.00%)
1/31/2028
1,985,000
1,947,123
1,992,444
0.4
%
RealTruck Group, Inc. (6)
Auto Components
7.97% (S + CSA + 3.50%)
1/20/2028
6,838,575
6,837,009
6,647,676
1.2
%
Red Planet Borrower, LLC (6)
Software
9.61% (S + 5.25%)
10/2/2028
2,000,000
1,921,897
2,007,500
0.4
%
Red Planet Borrower, LLC (8)
Internet Software and Services
7.96% (S + CSA + 3.50%)
10/2/2028
10,461,867
10,391,355
10,316,133
1.9
%
Redstone Holdco 2 LP (6)
IT Services
9.60% (S + CSA + 4.75%)
4/14/2028
4,892,258
4,872,862
2,963,314
0.6
%
Renaissance Holding Corp. (8)
Software
8.36% (S + 4.00%)
4/5/2030
11,615,463
11,488,587
11,601,757
2.2
%
Rocket Software, Inc. (8)
Software
8.61% (S + 4.25%)
11/28/2028
12,229,269
12,229,269
12,335,542
2.3
%
Rohm Holding GmbH (4)(6)
Chemicals
10.84% (S + 5.50% incl 0.25% PIK)
1/31/2029
8,678,106
8,557,334
8,341,830
1.6
%
Rohm Holding GmbH (4)(8)
Chemicals
10.84% (S + 5.50% incl 0.25% PIK)
1/31/2029
1,985,804
1,981,412
1,908,854
0.4
%
Runner Buyer Inc. (7)
Household Durables
10.11% (S + CSA + 5.50%)
10/20/2028
4,862,500
4,834,672
2,309,031
0.4
%
F - 21
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
Ryan, LLC (7)
Professional Services
7.86% (S + 3.50%)
11/8/2030
$
5,362,065
$
5,277,303
$
5,383,862
1.0
%
Sitel Group (4)(6)
IT Services
8.22% (S + CSA + 3.75%)
8/28/2028
2,984,576
2,317,145
2,022,050
0.4
%
Sovos Compliance, LLC (7)
Software
8.97% (S + CSA + 4.50%)
7/28/2028
3,882,945
3,880,904
3,916,261
0.7
%
Specialty Building Products Holdings, LLC (8)
Building Products
8.21% (S + CSA + 3.75%)
10/5/2028
9,725,000
9,715,033
9,694,123
1.8
%
Star Holding LLC (8)
Energy Equipment and Services
8.86% (S + 4.50%)
7/31/2031
3,990,000
3,999,776
3,987,087
0.7
%
Stepstone Group MidCo 2 GmbH, The (4)(8)
Interactive Media Services
8.98% (S + 4.50%)
12/4/2031
10,000,000
9,900,000
9,900,000
1.8
%
Summer BC Holdco B LLC (4)(8)
Media
9.59% (S + CSA + 5.00%)
2/12/2029
9,788,625
9,737,509
9,871,241
1.8
%
Tank Holding Corp. (6)(19)
Containers and Packaging
10.44% (S + CSA + 6.00%)
3/31/2028
759,293
746,145
746,437
0.1
%
Tank Holding Corp. (6)
Containers and Packaging
10.25% (S + CSA + 5.75%)
3/31/2028
2,462,121
2,423,916
2,427,762
0.5
%
Tank Holding Corp. (6)
Containers and Packaging
10.46% (S + CSA + 6.00%)
3/31/2028
2,063,250
2,031,599
2,033,591
0.4
%
TCP Sunbelt Acquisition Co. (8)
Electronic Equipment, Instruments and Components
8.77% (S + 4.25%)
10/16/2031
10,000,000
9,968,226
10,056,250
1.9
%
Tecta America Corp. (8)
Construction and Engineering
8.47% (S + CSA + 4.00%)
4/6/2028
8,410,775
8,400,155
8,466,832
1.6
%
Thryv, Inc. (4)(6)
Professional Services
11.11% (S + 6.75%)
5/1/2029
5,900,000
5,844,652
6,010,625
1.1
%
Titan US Finco, LLC (4)
Media
8.59% (S + CSA + 4.00%)
10/6/2028
5,835,000
5,826,234
5,867,851
1.1
%
TMC Buyer, Inc. (6)
Construction and Engineering
9.57% (S + 5.00%)
11/1/2030
4,583,333
4,534,059
4,645,833
0.9
%
Tosca Services, LLC (8)
Containers and Packaging
9.88% (S + 5.50%)
11/30/2028
1,372,991
1,372,991
1,423,620
0.3
%
Tosca Services, LLC (6)
Containers and Packaging
6.58% (S +CSA + 4.75 incl 3.25% PIK)
11/30/2028
6,850,574
6,817,288
5,947,155
1.1
%
Transnetwork LLC
Diversified Financial Services
9.08% (S + 4.75%)
12/29/2030
5,148,000
5,067,764
5,186,610
1.0
%
U.S. Renal Care, Inc. (8)
Healthcare Providers and Services
9.47% (S + CSA + 5.00%)
6/20/2028
7,758,184
7,686,796
7,286,641
1.4
%
US Fertility Enterprises, LLC (8)
Healthcare Providers and Services
8.78% (S + 4.50%)
10/11/2031
4,782,609
4,733,422
4,832,634
0.9
%
US Radiology Specialists, Inc. (8)
Healthcare Providers and Services
9.08% (S + 4.75%)
12/15/2027
12,450,502
12,401,186
12,548,550
2.3
%
USIC Holdings, Inc. (7)(20)
Construction and Engineering
10.09% (S + 5.50%)
9/10/2031
9,853
9,853
9,919
0.0
%
USIC Holdings, Inc. (7)(21)
Construction and Engineering
9.84% (S + 5.50%)
9/10/2031
2,528,999
2,504,805
2,530,124
0.5
%
USIC Holdings, Inc. (7)
Construction and Engineering
2.25% (S + 5.25%)
9/10/2031
73,571
73,571
73,805
0.0
%
Veracode (8)
Software
9.19% (S + CSA + 4.50%)
4/20/2029
8,602,000
8,572,892
8,042,397
1.5
%
VeriFone Systems, Inc. (6)
Commercial Services and Supplies
8.78% (S + CSA + 4.00%)
8/20/2025
9,069,121
8,973,066
8,532,229
1.6
%
Vocus Group (4)(8)
Diversified Telecommunication Services
8.26% (S + CSA + 3.50%)
7/20/2028
1,955,000
1,941,669
1,968,441
0.4
%
WarHorse Gaming, LLC (6)
Hotels, Restaurants and Leisure
13.71% (S + CSA + 9.25%)
6/30/2028
5,000,000
4,826,028
5,200,000
1.0
%
Waterbridge NDB Operating LLC (8)
Energy Equipment and Services
8.52% (S + 3.75%)
5/10/2029
9,975,000
9,966,314
10,095,249
1.9
%
Watlow Electric Manufacturing Company (8)
Electrical Equipment
8.09% (S + 3.50%)
3/2/2028
7,715,591
7,713,903
7,809,953
1.5
%
Wellpath (CCS-CMGC Holdings, Inc.) (6)(9)
Healthcare Providers and Services
10.28% (S + 7.50%)
10/1/2025
2,725,681
2,680,477
980,673
0.2
%
Wellpath Holdings, Inc. (6)
Healthcare Providers and Services
11.51% (S + 7.50% incl 1.00% PIK)
6/9/2025
640,109
640,109
640,109
0.1
%
Wellpath Holdings, Inc. (6)
Healthcare Providers and Services
11.65% (S + 7.50% incl 1.00% PIK)
6/9/2025
843,942
843,942
852,381
0.2
%
Wellpath Holdings, Inc. (6)
Healthcare Providers and Services
11.30% (S + 6.93% PIK)
6/9/2025
1,050,573
1,033,150
377,986
0.1
%
Wellpath Holdings, Inc. (6)
Healthcare Providers and Services
11.31% (S+6.93% PIK)
6/9/2025
228,276
224,776
82,131
0.0
%
Wellpath Holdings, Inc. (6)
Healthcare Providers and Services
11.31% (S+6.93% PIK)
6/9/2025
1,267,499
1,248,081
456,033
0.1
%
Xplor T1, LLC (7)
Professional Services
7.83% (S + 3.50%)
6/24/2031
7,231,875
7,198,471
7,304,194
1.4
%
Zayo Group Holdings, Inc. (8)
Diversified Telecommunication Services
8.61% (S + 4.25%)
3/9/2027
4,982,078
4,741,747
4,692,195
0.9
%
Zayo Group Holdings, Inc. (6)
Diversified Telecommunication Services
7.47% (S + CSA + 3.00%)
3/9/2027
3,000,000
2,857,500
2,816,370
0.5
%
Zegona Holdco Limited (4)(8)
Diversified Telecommunication Services
9.40% (S + 4.25%)
7/17/2029
9,975,000
9,939,443
10,062,281
1.9
%
Total First Lien Senior Secured
1,254,508,041
1,243,362,037
1,206,603,630
224.3
%
F - 22
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
Second Lien Senior Secured(2)
American Rock Salt Company LLC (6)
Metals and Mining
12.03% (S + CSA + 7.25%)
6/4/2029
$
2,750,000
$
2,768,242
$
1,934,158
0.3
%
ARC Falcon I Inc. (8)
Chemicals
11.46% (S + CSA + 7.00%)
9/24/2029
4,677,315
4,503,304
4,626,660
0.9
%
Aruba Investments, Inc. (8)
Chemicals
12.21% (S + CSA + 7.75%)
10/27/2028
3,350,000
3,320,618
3,299,047
0.6
%
Asurion, LLC (8)
Insurance
9.72% (S + CSA + 5.25%)
1/19/2029
9,000,000
8,858,052
8,713,800
1.6
%
Barracuda Networks, Inc. (6)
Software
11.59% (S + 7.00%)
8/15/2030
4,000,000
3,885,541
3,226,260
0.6
%
DCert Buyer, Inc. (8)
IT Services
11.36% (S + 7.00%)
2/19/2029
1,500,000
1,499,392
1,222,500
0.2
%
Delta Topco, Inc. (6)
IT Services
9.95% (S + 5.25%)
12/24/2030
4,500,000
4,479,629
4,572,000
0.9
%
Edelman Financial Engines Center, LLC, The (8)
Diversified Financial Services
9.61% (S + 5.25%)
10/20/2028
2,500,000
2,494,232
2,525,788
0.5
%
Ellucian Holdings Inc. (6)
Software
9.11% (S + 4.75%)
11/15/2032
2,000,000
1,995,000
2,043,340
0.4
%
First Brands Group, LLC (6)
Auto Components
13.35% (S + CSA + 8.50%)
3/24/2028
3,000,000
2,987,577
2,730,000
0.5
%
Flash Charm, Inc. (6)
IT Services
11.47% (S + CSA + 6.75%)
2/5/2029
3,353,659
3,366,584
3,265,625
0.6
%
Gainwell Acquisition Corp. (6)
Healthcare Providers and Services
12.68% (S + CSA + 8.00%)
10/2/2028
3,000,000
2,966,042
2,640,000
0.5
%
Gainwell Acquisition Corp. (6)
Healthcare Providers and Services
12.69% (S + CSA + 8.00%)
10/2/2028
2,400,000
2,278,143
2,112,000
0.4
%
Help/Systems Holdings, Inc. (6)
Software
11.44% (S + CSA + 6.75%)
11/19/2027
3,656,217
3,658,067
2,358,260
0.4
%
Infinite Bidco, LLC (8)
Electronic Equipment, Instruments and Components
11.85% (S + CSA + 7.00%)
2/24/2029
2,729,999
2,726,888
2,446,761
0.5
%
Ivanti Software, Inc. (6)
Software
12.12% (S + CSA + 7.25%)
12/1/2028
3,000,000
3,008,281
1,728,750
0.3
%
Mitchell International, Inc. (8)
Software
9.82% (S + 5.25%)
6/7/2032
7,500,000
7,463,299
7,437,525
1.4
%
Nexus Buyer LLC (6)
Diversified Financial Services
10.71% (S + CSA + 6.25%)
11/1/2029
5,000,000
4,955,382
5,003,550
0.9
%
OneDigital Borrower LLC (8)
Insurance
9.61% (S + 5.25%)
7/2/2032
5,000,000
4,975,745
4,989,075
0.9
%
Peraton Corp. (6)
Aerospace and Defense
12.36% (S + CSA + 7.75%)
2/26/2029
2,898,876
2,941,568
2,372,846
0.4
%
Pretium PKG Holdings, Inc. (6)
Containers and Packaging
11.53% (S + CSA + 6.75%)
9/30/2029
2,000,000
1,759,089
525,034
0.1
%
Project Boost Purchaser, LLC (8)
Professional Services
9.90% (S + 5.25%)
7/16/2032
2,500,000
2,487,762
2,555,213
0.5
%
Vision Solutions, Inc. (8)
IT Services
12.10% (S + CSA + 7.25%)
4/23/2029
5,500,000
5,443,094
5,321,938
1.0
%
Total Second Lien Senior Secured
85,816,066
84,821,531
77,650,130
14.4
%
Corporate Bonds
Altice Financing S.A. (4)(6)
Diversified Telecommunication Services
5.00%
1/15/2028
3,000,000
2,691,992
2,347,500
0.4
%
KOBE US Midco 2 Inc (6)
Chemicals
9.25% Cash/10.00% PIK
11/1/2026
2,199,488
2,191,323
1,866,815
0.3
%
Total Corporate Bonds
5,199,488
4,883,315
4,214,315
0.7
%
Total Debt Investments
$
1,345,523,595
$
1,333,066,883
$
1,288,468,075
239.4
%
F - 23
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Portfolio Company(3)
Industry
Interest Rate
Maturity
Date
Principal / Par
Amortized Cost(1)(5)
Fair Value
Percentage of Net Assets
CLO Mezzanine(2)
522 Funding CLO 2020-6, Ltd. (4)(6)
Structured Note
12.93% (S + 8.04%)
10/23/2034
$
2,800,000
$
2,736,867
$
2,756,209
0.4
%
APID 2013-12A ER (4)(6)
Structured Note
10.32% (S + 5.40%)
4/15/2031
2,425,000
2,427,381
2,441,897
0.5
%
APID 2016-24A (4)(6)
Structured Note
10.68% (S + 5.80%)
10/20/2030
2,200,000
2,142,236
2,213,839
0.4
%
BABSN 2022-2A ER (4)(6)
Structured Note
11.56% (S + 6.90%)
7/15/2039
3,000,000
3,059,507
3,085,172
0.6
%
Carlyle US CLO 2020-2, Ltd (4)(6)
Structured Note
13.42% (S + 8.53%)
1/25/2035
4,000,000
3,908,004
3,825,979
0.7
%
CBAM 2018-8A E1R (4)(6)
Structured Note
12.06% (S + 7.40%)
7/15/2037
1,000,000
1,022,291
1,021,185
0.2
%
CIFC 2018-4A (4)(6)
Structured Note
10.81% (S + 5.90%)
10/17/2031
2,900,000
2,887,060
2,922,476
0.5
%
CIFC 2023-2A (4)(6)
Structured Note
12.59% (S + 7.97%)
1/21/2037
2,700,000
2,766,801
2,805,246
0.5
%
ELM20 2022-7A ER (4)(6)
Structured Note
10.65% (S + 6.00%)
1/17/2037
2,400,000
2,435,643
2,442,516
0.5
%
ELMW8 2021-1X ER (4)(6)
Structured Note
10.87% (S + 6.25%)
4/20/2037
2,250,000
2,297,349
2,315,506
0.4
%
GLM 2021-9A FR (4)(6)
Structured Note
13.08% (S + 8.46%)
4/20/2037
3,000,000
2,914,817
3,023,304
0.6
%
GoldenTree Loan Management US 2020-7A (4)(6)
Structured Note
12.63% (S + 7.75%)
4/20/2034
2,000,000
1,913,883
1,999,945
0.4
%
GOST 2024-1A E (4)(6)
Structured Note
11.12% (S + 6.50%)
4/20/2033
2,500,000
2,500,000
2,522,556
0.5
%
HLM 2023-18A (4)(6)
Structured Note
13.59% (S + 8.97%)
7/20/2036
3,400,000
3,546,387
3,533,046
0.7
%
Thayer Park CLO, Ltd. (4)(6)
Structured Note
13.75% (S + 8.87%)
4/20/2034
1,300,000
1,269,144
1,238,877
0.2
%
Total CLO Mezzanine
37,875,000
37,827,370
38,147,753
7.1
%
CLO Equity
Babson CLO 2018-4A, Ltd. (4)(6)
Structured Subordinated Note
NA
10/15/2030
4,000,000
1,385,215
1,189,915
0.2
%
Dryden 86 CLO, Ltd. (4)(6)
Structured Subordinated Note
NA
7/17/2030
6,000,000
3,793,515
2,536,937
0.5
%
HPS Loan Management 12-2018, Ltd. (4)(6)
Structured Subordinated Note
NA
7/18/2031
7,500,000
219,750
219,750
0.0
%
Long Point Park CLO, Ltd. (4)(6)
Structured Subordinated Note
NA
1/17/2030
6,358,000
2,161,096
1,359,925
0.3
%
Regatta XII Funding Ltd. (4)(6)
Structured Subordinated Note
NA
10/15/2032
6,000,000
3,469,903
3,628,779
0.7
%
Signal Peak CLO, LLC (4)(6)
Structured Subordinated Note
NA
10/26/2034
5,000,000
1,999,606
1,067,179
0.2
%
Stratus CLO Series 2021-1A (4)(6)
Structured Subordinated Note
NA
12/29/2029
2,000,000
—
1,200
0.0
%
Total CLO Equity
36,858,000
13,029,085
10,003,685
1.9
%
F - 24
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Number of Shares
Cost
Fair Value
Percentage of Net Assets
Equity Investments
PVKG Investments Holdings Inc (4)(6)
IT Services
89,288
$
1,258,194
$
1,081,497
0.2
%
Total Equity Investments
89,288
1,258,194
1,081,497
0.2
%
Total Equity and Other Investments
74,822,288
$
52,114,649
$
49,232,935
9.2
%
F - 25
Palmer Square Capital BDC Inc.
Consolidated Schedules of Investments
As of December 31, 2024
Number of Shares
Cost
Fair Value
Percentage of Net Assets
Short-Term Investments
Fidelity Investments Money Market Government Portfolio - Institutional Class, 4.42% (10)
29,065,084
$
29,065,084
$
29,065,084
5.4
%
Morgan Stanley Liquidity Funds US Dollar Treasury Liquidity Fund - Institutional Class, 4.35% (10)
40,364,851
40,364,851
40,364,851
7.5
%
Total Short-Term Investments
69,429,935
69,429,935
69,429,935
12.9
%
Total Investments
$
1,454,611,467
$
1,407,130,945
261.5
%
Liabilities in Excess of Other Assets
(869,285,976
)
(161.5
)%
Net Assets
$
537,844,969
100.0
%
(1)
The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(2)
Loan contains a variable rate structure, subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the London Interbank Offered Rate (“LIBOR” or “L”) (which can include one-, two-, three- or six-month LIBOR), the Secured Overnight Financing Rate (“SOFR” or “S”), SOFR + Credit Spread Adjustment (S+CSA), where the Credit Spread Adjustment is a defined additional spread amount based on the tenor of SOFR the borrower selects, the Euro Interbank Offered Rate (“Euribor” or “E”), the U.S. Prime Rate (“P”), or an alternate base rate (which can include the Federal Funds Effective Rate), at the borrower’s option, and which reset periodically based on the terms of the loan agreement. For the holdings as of December 31, 2024 that have S+CSA as the base rate, the credit spread adjustment ranges from 0.1 bps to 26.2 bps.
(3)
As of December 31, 2024, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
(4)
Non-qualifying investment as defined by Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2024, 17.0% of the Company’s total assets were in non-qualifying investments.
(5)
As of December 31, 2024, the tax cost of the Company’s investments approximates their amortized cost.
(6)
Security or portion thereof held within Palmer Square BDC Funding I, LLC (“PS BDC Funding”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Bank of America, N.A. (“BofA N.A.”) (see Note 6 to the consolidated financial statements).
(7)
Security or portion thereof held within Palmer Square BDC Funding II, LLC (“PS BDC Funding II”) and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Wells Fargo Bank, National Association (“WFB”) (see Note 6 to the consolidated financial statements).
(8)
Security or portion thereof held within Palmer Square BDC CLO I, LLC (“PS BDC CLO I Funding”) and is pledged as collateral supporting the notes offered in the CLO Transaction (see Note 6 to the consolidated financial statements).
(9)
Loan was on non-accrual status as of December 31, 2024.
(10)
7-day effective yield as of December 31, 2024.
(11)
Of the $759,217.68 commitment to American Rock Salt Company LLC, $571,090.84 was unfunded as of December 31, 2024.
(12)
Of the $323,562.39 commitment to Aptean Inc., $238,414.39 was unfunded as of December 31, 2024.
(13)
Of the $472,972.96 commitment to Enverus Holdings, Inc., $458,884.40 was unfunded as of December 31, 2024.
(14)
Of the $559,500 commitment to Galway Borrower LLC., $512,697.72 was unfunded as of December 31, 2024.
(15)
Of the $4,440,500 commitment to Galway Borrower LLC, $4,360,571 was unfunded as of December 31, 2024.
(16)
Of the $1,583,120 commitment to GS AcquisitionCo, Inc., $1,232,000 was unfunded as of December 31, 2024.
(17)
Of the $636,370 commitment to MRI Software LLC, $601,016.11 was unfunded as of December 31, 2024.
(18)
Of the $4,993,300 commitment to Patriot Growth Insurance Services, LLC, $1,480,000 was unfunded as of December 31, 2024.
F - 26
(19)
Of the $894,292.50 commitment to Tank Holding Corp., $135,000 was unfunded as of December 31, 2024.
(20)
Of the $149,128.65 commitment to USIC Holdings, Inc., $139,276.09 was unfunded as of December 31, 2024.
(21)
Of the $321,872.57 commitment to USIC Holdings, Inc., $248,301.70 was unfunded as of December 31, 2024.
The accompanying notes are an integral part of these consolidated financial statements.
F - 27
Palmer Square Capital BDC Inc.
Notes to Consolidated Financial Statements
Note 1. Organization
Organization
Palmer Square Capital BDC Inc. (the “Company”) is a financial services company that primarily lends to and invests in corporate debt securities of companies, including small to large private U.S. companies. The Company was organized as a Maryland corporation on August 26, 2019 and is structured as an externally managed, non-diversified closed-end management investment company. The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Beginning with its taxable year ending December 31, 2020, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and expects to qualify as a RIC each year thereafter. The Company commenced operations on January 23, 2020. Palmer Square BDC Funding I, LLC (“PS BDC Funding”) was formed on January 21, 2020 and entered into a senior, secured revolving credit facility with Bank of America, N.A. (“BofA N.A.”) Palmer Square BDC Funding II LLC (“PS BDC Funding II”) was formed on September 8, 2020 and entered into a senior, secured credit facility with Wells Fargo, National Association (“WFB”).
The Company’s investment objective is to maximize total return, comprised of current income and capital appreciation. The Company’s current investment focus is guided by two strategies that facilitate its investment opportunities and core competencies: (1) investing in corporate debt securities and, to a lesser extent, (2) investing in collateralized loan obligation (“CLO”) structured credit funds that typically own corporate debt securities, including the equity and junior debt tranches of CLOs. To a limited extent, the Company may enter into derivatives transactions, which may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of the Company’s portfolio positions from changes in currency exchange rates and market interest rates or to earn income and enhance the Company’s total returns. The Company may receive or purchase warrants or rights to acquire equity or other securities in connection with making a debt investment in a company. During the years ended December 31, 2025, 2024 and 2023, the Company did not invest in any derivative contracts.
The Company is externally managed by Palmer Square BDC Advisor LLC (the “Investment Advisor”), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, pursuant to an investment advisory agreement between the Company and the Investment Advisor (the “Advisory Agreement”). The Investment Advisor is a majority-owned subsidiary of Palmer Square Capital Management LLC (“PSCM”) and an investment adviser registered under the Investment Advisors Act of 1940, as amended (the “Advisers Act”). The Investment Advisor, in its capacity as administrator (the “Administrator”), provides the administrative services necessary for the Company to operate pursuant to an administration agreement between the Company and the Administrator (the “Administration Agreement”). The Company’s fiscal year ends on December 31.
The Company has four wholly-owned subsidiaries: PS BDC Funding, a special purpose wholly-owned subsidiary established for utilizing the Company’s revolving credit facility with BofA N.A.; PS BDC Funding II, a special purpose wholly-owned subsidiary established for utilizing the Company’s credit facility with WFB; Palmer Square BDC CLO 1, Ltd., a special purpose wholly-owned subsidiary established to be the Issuer in connection with the CLO Transaction (as defined below); and Palmer Square BDC CLO 1, LLC a special purpose indirect wholly-owned subsidiary established to be the co-issuer in connection with the CLO Transaction. These subsidiaries are consolidated in the financial statements of the Company.
On January 22, 2024, the Company completed its initial public offering (“IPO”), issuing 5,450,000 shares of common stock, par value $0.001, at a public offering price of $16.45 per share. The Company’s common stock began trading on the New York Stock Exchange under the symbol “PSBD” on January 18, 2024.
Note 2. Significant Accounting Policies
The Company is an investment company and applies specific accounting and financial reporting requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Topic 946, Financial Services-Investment Companies. The Company’s functional currency is U.S. dollars (“USD”) and these consolidated financial statements have been prepared in that currency. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to Regulation S-X.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Company enters into contracts that contain a variety of representations which provide general indemnifications. The Company’s maximum exposure under these arrangements cannot be known; however, the Company expects any risk of loss to be remote.
Cash and Cash Equivalents
Cash is comprised of cash on deposit with major financial institutions. Cash equivalents consist of highly liquid investments with original maturities of three months or less. The Company places its cash with high credit quality institutions to minimize credit risk exposure.
F - 28
Debt Issuance Costs
The Company records origination and other expenses related to its debt obligations as deferred financing costs. These expenses are deferred and amortized over the life of the related debt instrument. Debt issuance costs are presented on the consolidated statements of assets and liabilities as a direct deduction from the debt liability. In circumstances in which there is not an associated debt liability amount recorded in the consolidated financial statements when the debt issuance costs are incurred, such debt issuance costs will be reported on the consolidated statements of assets and liabilities as an asset until the debt liability is recorded. As of December 31, 2025, the balance of debt issuance costs was $0.4 million, representing deferred financing costs of $6.6 million less accrued interest of $6.2 million, included in the BoA Credit Facility, WF Credit Facility and CLO Transaction (each as defined below), and is presented on a net basis of $414.4 million for the BoA and WF Credit Facilities and $302.1 million for the CLO Transaction on the consolidated statements of assets and liabilities. As of December 31, 2024, the balance of debt issuance costs was $(1.1) million, representing deferred financing costs of $7.1 million less accrued interest of $8.2 million, included in the BoA Credit Facility, WF Credit Facility, and CLO Transaction (each as defined below), and is presented on a net basis of $501.7 million for the BoA Credit Facility and WF Credit Facility and $302.5 million for the CLO Transaction on the consolidated statements of assets and liabilities.
Income Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code. So long as the Company maintains its status as a RIC, it generally will not pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends.
To qualify as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must distribute to its stockholders, for each taxable year, at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one year period ending October 31 in such calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years and on which the Company paid no federal income tax. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income.
The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.
Basis of Consolidation
As provided under ASC 946, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly owned investment company subsidiaries (PS BDC Funding, PS BDC Funding II, Palmer Square BDC CLO 1, Ltd., and Palmer Square BDC CLO 1, LLC) in its consolidated financial statements.
Interest and Dividend Income Recognition
Interest income is recorded on the accrual basis and includes amortization of premiums or accretion of discounts. Discounts and premiums to par value on securities purchased are accreted and amortized, respectively, into interest income over the contractual life of the respective security using the effective interest method. The amortized cost of investments represents the original cost adjusted for the amortization of premiums or accretion of discounts, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees, paydown gains/losses and unamortized discounts are recorded as interest income in the current period.
Dividend income on preferred equity securities is recorded on the accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities and money market funds is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.
Payment-in-Kind Interest Income
The Company has loans in its portfolio that contain payment-in-kind (“PIK”) provisions. PIK represents interest that is accrued and recorded as interest income at the contractual rates, increases the loan principal on the respective capitalization dates, and is generally due at maturity. Such income is included in Payment-in-kind interest income in the Consolidated Statements of Operations. If at any point the Company expects that PIK will not be realized, the investment generating PIK will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed through Payment-in-kind interest income.
Non-Accrual Status
Management reviews all loans that have principal or interest that is 90 days past due, or when there is reasonable doubt as to the collection of principal or interest to determine if a loan will be placed on non-accrual status. When a loan is placed on non-accrual status, the accrued interest and unpaid interest is generally reversed, and any discount (market or original) is no longer accreted to interest income. Interest payments received while a loan is on non-accrual status may be applied to principal or recognized as income, as determined by management’s judgment regarding collectability.
A loan may be taken off non-accrual status if past due payments are made, and if management determines the issuer is likely to remain current on future payments. Management may make exceptions to this policy if the loan has sufficient collateral value or is in the process of collection. Management may also leave a loan on accrual status while actively seeking recovery of past due payment. As of December 31, 2025, the Company had three portfolio companies on non-accrual status. As of December 31, 2025, loans on non-accrual status represented 0.09% of the total investments at fair value (or 1.34% at amortized cost). As of December 31, 2024, the Company had two portfolio companies on non-accrual status. As of December 31, 2024, loans on non-accrual status represented 0.08% of the total investments at fair value (or 0.46% at amortized cost).
F - 29
Other Income
From time to time, the Company may receive fees for services provided to portfolio companies. These fees are generally only available to the Company as a result of closing investments, are normally paid at the closing of the investments, are generally non-recurring and are recognized as revenue when earned upon closing of the investment. The services that the Investment Advisor provides vary by investment, but can include closing, work, diligence or other similar fees and fees for providing managerial assistance to the Company’s portfolio companies. In addition, the Company may generate revenue in the form of commitment, origination, structuring or diligence fees, monitoring fees and possibly consulting and performance-based fees. Other Income also includes amendment fees that are fixed based on contractual terms and are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the related transaction.
Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation
The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.
Segment Reporting
In accordance with ASC Topic 280 - Segment Reporting (“ASC 280”), the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation and additional details on income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted ASU 2023-09 effective December 31, 2025 and concluded that the application of this guidance did not have any material impact on its consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning with the first quarter ended March 31, 2028. Early adoption and retrospective application is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.
Note 3. Agreements and Related Party Transactions
Administration Agreement
The Company has entered into the Administration Agreement with the Administrator. Pursuant to the Administration Agreement, the Administrator furnishes office facilities and equipment and provides clerical, bookkeeping, compliance, recordkeeping and other administrative services at such facilities. Under the Administration Agreement, the Administrator performs, or oversees the performance of, required administrative services, which include being responsible for the financial and other records that the Company is required to maintain and preparing reports to stockholders and reports and other materials filed with the SEC. In addition, the Administrator assists the Company in determining and publishing the Company’s net asset value (“NAV”), overseeing the preparation and filing of tax returns and the printing and dissemination of reports and other materials to stockholders, and generally overseeing the payment of expenses and the performance of administrative and professional services rendered to the Company by others. Under the Administration Agreement, the Administrator also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the offer to provide such assistance.
Under the Administration Agreement, the Company reimburses the Administrator based upon its allocable portion of the Administrator’s overhead (including rent) in performing its obligations under the Administration Agreement, including the fees and expenses associated with performing compliance functions and the Company’s allocable portion of the cost of its officers (including the Company’s Chief Financial Officer and Chief Compliance Officer), and any of their respective staff who provide services to the Company, operations staff who provide services to the Company, and internal audit staff, if any, to the extent internal audit performs a role in the Company’s Sarbanes-Oxley internal control assessment. In addition, if requested to provide managerial assistance to portfolio companies, the Administrator is reimbursed based on the services provided. The Administration Agreement has an initial term of two years and may be renewed with the approval of the Company’s board of directors (the “Board”). The agreement was renewed during the year for an additional one-year period. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. To the extent that the Administrator outsources any of its functions, the Company pays the fees associated with such functions on a direct basis without any incremental profit to the Administrator.
In addition, the Administrator has, pursuant to a sub-administration agreement, engaged U.S. Bancorp Fund Services, LLC to act on behalf of the Company’s Administrator in the performance of certain other administrative services. The Company has also engaged Equiniti Trust Company, LLC or its affiliates (“Equiniti”) directly to serve as transfer agent, registrar and dividend disbursing agent and has engaged U.S. Bank National Association (“U.S. Bank”) or its affiliates directly to serve as custodian.
Investment Advisory Agreement
The Investment Advisor serves as the investment adviser of the Company and is registered as an investment adviser with the SEC. The Investment Advisor’s primary business is to provide a variety of investment management services, including an investment program for the Company. The Investment Advisor is responsible for all business activities and oversight of the investment decisions made for the Company.
In return for providing management services to the Company, the Company pays the Investment Advisor a base management fee, calculated and paid quarterly in arrears at an annual rate of 1.75% of the average value of the weighted average (based on the number of shares outstanding each day in the quarter) of the Company’s total net assets at the end of the two most recently completed calendar quarters. The base management fee for any partial quarter will be pro-rated based on the number of days actually elapsed in that quarter relative to the total number of days in such quarter.
F - 30
Additionally, the Investment Advisor is entitled to an incentive fee (the “Income Incentive Fee”) based on the Company’s pre-incentive fee net investment income for the then most recently completed calendar quarter, as adjusted downward (but not upward) if over the most recently completed and eleven preceding calendar quarters since the IPO (or if shorter, the number of calendar quarters since the IPO) (each such period is referred to herein as the “Trailing Twelve Quarters”) aggregate net realized losses on the Company’s investments exceed the Company’s aggregate net investment income over the same period, excluding the most recently completed quarter, as described in more detail below. In this regard, if the Company’s net realized losses over the Trailing Twelve Quarters since the IPO (or if shorter, the number of calendar quarters since the IPO) are greater than the Company’s net investment income over the same period, excluding the most recently completed quarter, then the pre-incentive fee net income used in the calculation of the Income Incentive Fee would be subject to a downward adjustment. The amount of the adjustment would be equal to the amount by which such net realized losses exceed such net investment income. On the other hand, if the Company’s net investment income over the Trailing Twelve Quarters since the IPO (or if shorter, the number of calendar quarters since the IPO) is equal to or greater than the Company’s net realized losses over the same period, excluding the most recently completed quarter, then no adjustment to pre-incentive fee net investment income would be made. The Income Incentive Fee is calculated and payable quarterly in arrears. The Company will pay the Investment Advisor an Income Incentive Fee with respect to its “adjusted net investment income” in each calendar quarter as follows:
•
no Income Incentive Fee in any calendar quarter in which the Company’s “adjusted net investment income” does not exceed an amount equal to a “hurdle rate” of 1.5% per quarter (6% annualized) of the Company’s total net assets at the end of that quarter (the “Hurdle Amount”);
•
100% of the Company’s “adjusted net investment income” with respect to that portion of such “adjusted net investment income,” if any, that exceeds the Hurdle Amount but is less than or equal to an amount (the “Catch-Up Amount”) determined on a quarterly basis by multiplying 1.7142% by the Company’s total NAV for the immediately preceding calendar quarter. The Catch-Up Amount is intended to provide the Investment Advisor with an incentive fee of 12.5% on all of the Company’s “adjusted net investment income” when the Company’s “adjusted net investment income” reaches the Catch-Up Amount in any calendar quarter; and
•
for any calendar quarter in which the Company’s “adjusted net investment income” exceeds the Catch-Up Amount, the Income Incentive Fee shall equal 12.5% of the amount of the Company’s “adjusted net investment income” for the calendar quarter.
“Adjusted net investment income” means the Company’s “pre-incentive fee net investment income” during the then most recently completed calendar quarter minus the difference, if positive, between (i) the Company’s “net realized losses” over the then Trailing Twelve Quarters (or if shorter, the number of calendar quarters that have occurred since the IPO) and (ii) the Company’s “net investment income” over the Trailing Twelve Quarters (excluding the then most recently completed calendar quarter). No adjustment (downward or upward) will be made to “pre-incentive fee net investment income” if the difference between clause (i) minus clause (ii) is zero or negative.
“Pre-incentive fee net investment income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement, and any interest expense and dividends paid on any outstanding preferred stock, but excluding the Income Incentive Fee). “Pre-incentive fee net investment income” includes, in the case of investments with a deferred interest feature such as market discount, original issue discount (“OID”), debt instruments with payment-in-kind (“PIK”) interest, preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash.
“Net realized losses” in respect of a particular period means the difference, if positive, between (i) the aggregate realized capital losses on the Company’s investments in such period and (ii) the aggregate realized capital gains on the Company’s investments in such period. “Net investment income” in respect of the particular period means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the particular period, minus operating expenses for the particular period (including the base management fee, the Income Incentive Fee, any expenses payable under the Administration Agreement, and any interest expense and dividends paid on any outstanding preferred stock). “Net investment income” includes, in the case of investments with a deferred interest feature such as market discount, OID, debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash.
The Income Incentive Fee amount, or the calculations pertaining thereto, as appropriate, will be pro-rated for any period less than a full calendar quarter.
The Investment Advisor has also agreed to use the most recently completed and three preceding calendar quarters (each such period is referred to herein as the “Trailing Four Quarters”) in addition to the Trailing Twelve Quarters to compute the incentive fee payable to it by the Company. In conjunction therewith, the Investment Advisor has agreed to calculate the incentive fee based on the Trailing Twelve Quarters and the Trailing Four Quarters and in the event that any Trailing Four Quarter period calculation produces a lower incentive fee as compared to the applicable Trailing Twelve Quarter period calculation for any quarterly period, then the Trailing Four Quarter Period will be used in connection with the calculation of the incentive fee payable to the Investment Advisor by the Company for such quarter.
The Investment Advisor agreed to pay all offering costs in connection with the IPO. These expenses consist primarily of legal fees and other costs incurred with the Company’s share offerings, the preparation of the Company’s registration statement, and registration fees. The Company is not obligated to repay any such offering costs paid by our Investment Advisor.
F - 31
Note 4. Investments
The following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of December 31, 2025 and December 31, 2024:
December 31, 2025
December 31, 2024
Amortized Cost
Fair Value
Amortized Cost
Fair Value
First-lien senior secured debt
$
1,088,644,221
$
1,014,924,713
$
1,243,362,037
$
1,206,603,630
Second-lien senior secured debt
72,146,972
59,868,971
84,821,531
77,650,130
Corporate Bonds
8,892,453
7,929,631
4,883,315
4,214,315
CLO Mezzanine
34,863,998
34,300,352
37,827,370
38,147,753
CLO Equity
8,326,282
6,087,607
13,029,085
10,003,685
Equity
8,965,875
7,812,775
1,258,194
1,081,497
Short-term investments
72,716,269
72,716,269
69,429,935
69,429,935
Total Investments
$
1,294,556,070
$
1,203,640,318
$
1,454,611,467
$
1,407,130,945
As of December 31, 2025, approximately 18.6% of the long-term investment portfolio at amortized cost and 19.2% of the long-term investment portfolio measured at fair value, respectively, were invested in non-qualifying assets. As of December 31, 2024, approximately 17.8% of the long-term investment portfolio at amortized cost and 18.1% of the long-term investment portfolio measured at fair value, respectively, were invested in non-qualifying assets. With respect to the Company’s total assets, 17.8% and 17.0% of the Company’s total assets were in non-qualifying assets as defined by Section 55(a) of the 1940 Act as of December 31, 2025 and December 31, 2024, respectively.
F - 32
The industry composition of investments based on fair value, as a percentage of total investments at fair value, as of December 31, 2025 and December 31, 2024 was as follows:
December 31, 2025
December 31, 2024
Software
10.7
%
10.2
%
IT Services
9.6
%
6.7
%
Healthcare Providers and Services
8.8
%
9.4
%
Professional Services
7.3
%
7.7
%
Short-Term Investments
6.0
%
4.9
%
Chemicals
5.4
%
5.1
%
Diversified Financial Services
5.0
%
3.9
%
Construction and Engineering
5.0
%
4.5
%
Insurance
3.5
%
5.0
%
Electronic Equipment, Instruments and Components
3.3
%
2.8
%
Structured Note
2.8
%
2.7
%
Food Products
2.5
%
1.9
%
Hotels, Restaurants and Leisure
2.2
%
3.1
%
Containers and Packaging
2.2
%
1.5
%
Commercial Services and Supplies
2.0
%
0.6
%
Building Products
1.8
%
1.9
%
Machinery
1.8
%
1.8
%
Auto Components
1.6
%
2.2
%
Media
1.6
%
3.1
%
Metals and Mining
1.3
%
1.4
%
Interactive Media Services
1.3
%
0.7
%
Independent Power and Renewable Electricity Producers
1.2
%
3.3
%
Household Durables
1.2
%
0.2
%
Diversified Consumer Services
1.1
%
2.6
%
Specialty Retail
1.1
%
0.5
%
Aerospace and Defense
1.1
%
0.7
%
Energy Equipment and Services
0.9
%
1.7
%
Industrial Conglomerates
0.7
%
0.7
%
Healthcare Equipment and Supplies
0.7
%
0.6
%
Road and Rail
0.7
%
0.6
%
Diversified Telecommunication Services
0.7
%
2.2
%
Pharmaceuticals
0.7
%
0.6
%
Real Estate Management and Development
0.6
%
0.6
%
Textiles, Apparel & Luxury Goods
0.6
%
—
Healthcare Technology
0.6
%
—
Structured Subordinated Note
0.5
%
0.7
%
Electrical Equipment
0.5
%
0.7
%
Automotive
0.3
%
—
Restaurants
0.3
%
—
Household Products
0.3
%
—
Construction Materials
0.3
%
—
Entertainment
0.2
%
—
Internet Software and Services
—
1.9
%
Wireless Telecommunication Services
—
0.7
%
Electric Utilities
—
0.6
%
Total
100
%
100
%
F - 33
Note 5. Fair Value of Investments
Fair value is defined as the price that the Company would receive upon selling an investment or paying to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. Accounting guidance emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs.
Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the investment as of the measurement date. The three levels are defined as follows:
Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2 — Valuations based on inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable at the measurement date. This category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in non-active markets including actionable bids from third parties for privately held assets or liabilities, and observable inputs other than quoted prices such as yield curves and forward currency rates that are entered directly into valuation models to determine the value of derivatives or other assets or liabilities.
Level 3 — Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date.
Investments in private investment companies measured based upon NAV as a practical expedient to determine fair value are not required to be categorized in the fair value hierarchy. As of December 31, 2025 and as of December 31, 2024, there were no investments accounted for using the practical expedient.
The inputs for the determination of fair value may require significant management judgment or estimation and are based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, beta and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiples. The information may also include pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.
Pricing inputs and weightings applied to determine fair value require subjective determination. Accordingly, valuations do not necessarily represent the amounts that may eventually be realized from sales or other dispositions of investments.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The following table presents the fair value hierarchy of investments as of December 31, 2025:
Fair Value Hierarchy as of December 31, 2025
Investments:
Level 1
Level 2
Level 3
Total
First-lien senior secured debt
$
—
$
1,014,924,713
$
—
$
1,014,924,713
Second-lien senior secured debt
—
59,868,971
—
59,868,971
Corporate Bonds
—
7,929,631
—
7,929,631
CLO Mezzanine
—
34,300,352
—
34,300,352
CLO Equity
—
6,087,607
—
6,087,607
Equity
—
7,812,775
—
7,812,775
Short Term Investments
72,716,269
—
—
72,716,269
Total Investments
$
72,716,269
$
1,130,924,049
$
—
$
1,203,640,318
F - 34
The following table presents the fair value hierarchy of investments as of December 31, 2024:
Fair Value Hierarchy as of December 31, 2024
Investments:
Level 1
Level 2
Level 3
Total
First-lien senior secured debt
$
—
$
1,206,603,630
$
—
$
1,206,603,630
Second-lien senior secured debt
—
77,650,130
—
77,650,130
Corporate Bonds
—
4,214,315
—
4,214,315
CLO Mezzanine
—
38,147,753
—
38,147,753
CLO Equity
—
10,003,685
—
10,003,685
Equity
—
1,081,497
—
1,081,497
Short Term Investments
69,429,935
—
—
69,429,935
Total Investments
$
69,429,935
$
1,337,701,010
$
—
$
1,407,130,945
The following table shows the changes in the fair value of our Level 3 investments during the twelve months ended December 31, 2025. The Company did not hold any Level 3 positions at the year ended December 31, 2024.
Equity
Fair value, beginning of period
$
—
Purchases of investments, net
6,886,857
Proceeds from principal payments and sales of investments, net
—
Net change in unrealized gain (loss)
(865,138
)
Net accretion of discount on investments
—
Transfers into (out of) Level 3
(6,021,719
)
Fair value, end of period
$
—
For the year ended December 31, 2025, two equity investments were transferred out of Level 3 and into Level 2 of the fair value hierarchy as a result of changes in the observability of significant inputs for the portfolio companies. There were no transfers to or from Level 3 investments for the year ended December 31, 2024.
Debt Not Carried at Fair Value
The fair value of the BoA Credit Facility, WF Credit Facility and CLO Transaction, which would be categorized as Level 3 within the fair value hierarchy as of December 31, 2025, approximates their respective carrying values because the BoA Credit Facility, WF Credit Facility and CLO Transaction each have variable interest based on selected short-term rates.
Note 6. Borrowings
In accordance with the 1940 Act, with certain limitations, BDCs are permitted to borrow amounts such that their asset coverage ratios, as defined in the 1940 Act, are at least 150% after such borrowing. As of December 31, 2025, the Company’s asset coverage ratio was 165%.
Bank of America Credit Facility
On February 18, 2020, the Company, through a special purpose wholly-owned subsidiary, PS BDC Funding (together with the Company, the “Borrowers”) entered into a Credit Agreement (as amended, the “Credit Agreement”), with certain financial institutions as lenders (“Lenders”), BofA N.A. as the Administrative Agent and BofA Securities, Inc. (“BofA Securities”), as Lead Arranger and Sole Book Manager, pursuant to which the Lenders agreed to provide the Company with a revolving line of credit (the “BoA Credit Facility”).
On March 29, 2024, the Company entered into a fourth amendment to the BoA Credit Facility (the “BoA Credit Facility Fourth Amendment”) that amends the BoA Credit Facility to, among other things: (i) extend the facility maturity date; (ii) update arrangements for the calculation of the fee on unused commitments, and (iii) payment of an extension fee. The following describes the terms of the BoA Credit Facility as amended by the BoA Credit Facility Fourth Amendment.
Under the BoA Credit Facility, the Lenders have agreed to extend credit to PS BDC Funding in an aggregate amount up to the Commitment (as defined in the Credit Agreement) amount. The Commitment amount for the BoA Credit Facility was $200.0 million as of the closing date of the Credit Agreement, increased to $400.0 million on the one-month anniversary of the closing date, further increased to $475.0 million on October 12, 2020, further increased to $725.0 million on September 29, 2021, and decreased to $525.0 million on June 13, 2024. The Borrowers’ ability to draw under the BoA Credit Facility is scheduled to terminate on February 11, 2028. All amounts outstanding under the BoA Credit Facility are required to be repaid by February 18, 2028.
Debt obligations under the BoA Credit Facility consisted of the following as of December 31, 2025:
December 31, 2025
Aggregate
Principal
Committed
Outstanding
Principal
Amount
Available(1)
Net
Carrying
Value(2)
BoA Credit Facility
$
525,000,000
$
262,625,850
$
262,374,150
$
260,430,340
Total debt
$
525,000,000
$
262,625,850
$
262,374,150
$
260,430,340
(1)
The amount available reflects any limitations related to the BoA Credit Facility’s borrowing base.
(2)
The carrying value of the BoA Credit Facility is presented net of deferred financing costs of $2.3 million and accrued interest of $121 thousand.
F - 35
Debt obligations under the BoA Credit Facility consisted of the following as of December 31, 2024:
December 31, 2024
Aggregate
Principal
Committed
Outstanding
Principal
Amount
Available(1)
Net
Carrying
Value(2)
BoA Credit Facility
$
525,000,000
$
352,325,850
$
172,674,150
$
350,123,183
Total debt
$
525,000,000
$
352,325,850
$
172,674,150
$
350,123,183
(1)
The amount available reflects any limitations related to the BoA Credit Facility’s borrowing base.
(2)
The carrying value of the BoA Credit Facility is presented net of deferred financing costs of $3.4 million and accrued interest of $1.2 million.
Average debt outstanding under the BoA Credit Facility during the twelve months ended December 31, 2025, December 31, 2024, and December 31, 2023 was $316.1 million, $479.1 million, and $498.3 million, respectively.
The loans under the BoA Credit Facility may be base rate loans or SOFR loans. The base rate loans will bear interest at the base rate plus 1.40%, and the SOFR loans will bear interest at 1-month SOFR plus 1.40% or 3-month SOFR plus 1.45%. The “base rate” will be equal to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate, and (c) 1-month or 3-month SOFR plus 0.10%. The Credit Agreement requires the payment of a commitment fee in a range of 0.50% to 1.40% depending on the amount of Commitments utilized. Such fee is payable quarterly in arrears. The advance rate for PS BDC Funding’s Eligible Collateral Assets ranges from 40% for Second Lien Bank Loans to 70% for First Lien Bank Loans that are B Assets to 100% for Cash (excluding Excluded Amounts) (as each such term is defined in the Credit Agreement).
For the years ended December 31, 2025, 2024, and 2023, the components of interest expense with respect to the BoA Credit Facility were as follows:
For the Year Ended December 31,
2025
2024
2023
Interest expense
$
19,659,624
$
32,828,946
$
33,703,442
Amortization of debt issuance costs
1,085,563
983,478
646,738
Total interest expense
$
20,745,187
$
33,812,424
$
34,350,180
Average interest rate
5.66
%
6.60
%
6.42
%
PS BDC Funding has pledged all of its assets to BofA N.A., in its capacity as Administrative Agent, to secure its obligations under the BoA Credit Facility. Both the Company and PS BDC Funding have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the BoA Credit Facility is subject to the leverage restrictions contained in the 1940 Act and PS BDC Funding complies with 1940 Act provisions relating to affiliated transactions and custody. The custodian of the assets pledged to BofA N.A. pursuant to the BoA Credit Facility is U.S. Bank. The obligations under the Credit Agreement may be accelerated upon the occurrence of an event of default under the Credit Agreement, including in the event of a change of control of PS BDC Funding or if the Investment Advisor ceases to serve as investment adviser to the Company.
Wells Fargo Credit Facility
On December 18, 2020, the Company, through a special purpose wholly-owned subsidiary, PS BDC Funding II (together with the Company, the “WF Borrowers”) entered into a Loan and Security Agreement (the “Loan Agreement”) with certain financial institutions as lenders (“WF Lenders”), WFB as the administrative agent and U.S. Bank, as Collateral Agent and Custodian, pursuant to which the WF Lenders agreed to provide the Company with a line of credit (the “WF Credit Facility”).
On November 4, 2025, the Company entered into a fifth amendment to the WF Credit Facility (the “WF Credit Facility Fifth Amendment”) that amends the WF Credit Facility to, among other things: (i) increase the amount available for borrowing under the WF Credit Facility, (ii) extend the facility maturity date, (iii) extend the reinvestment period, (iv) update the applicable spread, and (v) update the non-usage fee.
Debt obligations under the WF Credit Facility consisted of the following as of December 31, 2025:
December 31, 2025
Aggregate
Principal
Committed
Outstanding
Principal
Amount
Available(1)
Net
Carrying
Value(2)
WF Credit Facility
$
200,000,000
$
154,279,239
$
45,720,761
$
154,008,418
Total debt
$
200,000,000
$
154,279,239
$
45,720,761
$
154,008,418
(1)
The amount available reflects any limitations related to the WF Credit Facility’s borrowing base.
(2)
The carrying value of the WF Credit Facility is presented net of deferred financing costs of $2.7 million and accrued interest of $2.4 million.
F - 36
Debt obligations under the WF Credit Facility consisted of the following as of December 31, 2024:
December 31, 2024
Aggregate
Principal
Committed
Outstanding
Principal
Amount
Available(1)
Net
Carrying
Value(2)
WF Credit Facility
$
175,000,000
$
150,779,239
$
24,220,761
$
151,527,419
Total debt
$
175,000,000
$
150,779,239
$
24,220,761
$
151,527,419
(1)
The amount available reflects any limitations related to the WF Credit Facility’s borrowing base.
(2)
The carrying value of the WF Credit Facility is presented net of deferred financing costs of $2.0 million and accrued interest of $2.7 million.
Average debt outstanding under the WF Credit Facility during the years ended December 31, 2025, 2024, and 2023 was $154.7 million, $139.1 million, and $131.4 million, respectively.
The amount available for borrowing under the WF Credit Facility is currently $200 million. The facility maturity date of the WF Credit Facility is November 4, 2030 and the reinvestment period ends on November 3, 2028 (subject to other provisions of the WF Credit Facility). The loans under the WF Credit Facility may be Broadly Syndicated Loans or Middle Market Loans and will bear interest at Daily Simple SOFR, or base rate (to the extent Daily Simple SOFR is unavailable), plus 1.95%, with an interest rate floor of 0.0%. The “base rate” will be equal to the highest of (a) the federal funds rate plus 0.50% and (b) the prime rate. The Loan Agreement requires the payment of a non-usage fee ranging from 0.50% to 1.45%, depending on the utilization levels of the facility.
For the years ended December 31, 2025, 2024, and 2023, the components of interest expense with respect to the WF Credit Facility were as follows:
For the Year Ended December 31,
2025
2024
2023
Interest expense
$
10,587,741
$
11,026,836
$
9,773,911
Amortization of debt issuance costs
507,387
498,844
359,061
Total interest expense
$
11,095,128
$
11,525,680
$
10,132,972
Average interest rate
6.67
%
7.66
%
7.20
%
PS BDC Funding II has pledged all of its assets to U.S. Bank, in its capacity as Collateral Agent, to secure its obligations under the WF Credit Facility and U.S. Bank acts as the custodian of such assets. Both the Company and PS BDC Funding II have made customary representations and warranties and are required to comply with various covenants, reporting requirements, and other customary requirements for similar credit facilities. Borrowing under the WF Credit Facility is subject to the leverage restrictions contained in the 1940 Act and PS BDC Funding II complies with 1940 Act provisions relating to affiliated transactions and custody. The obligations under the Loan Agreement may be accelerated upon the occurrence of an event of default under the Loan Agreement, including in the event of a change of control of PS BDC Funding II, if the Investment Advisor ceases to serve as investment adviser to the Company, or if PSCM or its affiliates cease to directly or indirectly own a majority of the membership interests of the Investment Advisor.
CLO Transaction
On May 23, 2024 (the “Closing Date”), the Company completed a $400.5 million term debt securitization (the “CLO Transaction”), also known as a collateralized loan obligation, in connection with which a wholly-owned indirect subsidiary of the Company issued the Notes (as defined below). The CLO Transaction functions as a source of long-term balance sheet financing for a portion of the Company’s portfolio investments and, as a result, the Notes issued in connection with the CLO Transaction are subject to the Company’s regulatory asset coverage requirement.
The notes offered in the CLO Transaction were issued by Palmer Square BDC CLO 1, Ltd. (the “Issuer”), an exempted company incorporated with limited liability under the laws of the Cayman Islands and a wholly-owned indirect subsidiary of the Company, and consist of (i) $232 million of Class A Notes (the “Class A Notes”); (ii) $58.0 million Class B-1 Notes, (the “Class B-1 Notes”); and (iii) $10 million of Class B-2 Notes (the “Class B-2 Notes” and, together with the Class A Notes and the Class B-1 Notes, the “Secured Notes”). Additionally, on the Closing Date the Issuer issued $100.5 million of Subordinated Notes (the “Subordinated Notes”), which do not bear interest but are entitled to all of the principal and interest payments made on the loan portfolio held by the Issuer, net of interest and principal payments distributed to the holders of the Secured Notes. The Secured Notes together with the Subordinated Notes are collectively referred to herein as the “Notes.”
F - 37
The following table presents information on the Notes issued in the CLO Transaction as of December 31, 2025:
December 31, 2025
Description
Type
Principal Outstanding
Interest Rate
Credit Rating
Class A Notes
Senior Secured Floating Rate
$
232,000,000
SOFR + (1.60)%
AAA
Class B-1 Notes
Senior Secured Floating Rate
58,000,000
SOFR + (2.15)%
AA
Class B-2 Notes
Senior Secured Fixed Rate
10,000,000
(6.33)%
AA
Total Secured Notes
$
300,000,000
Subordinated Notes (1)
100,500,000
None
Not rated
Total Notes
$
400,500,000
(1)
The Company retained all of the Subordinated Notes issued in the CLO Transaction which are eliminated in consolidation.
The following table presents information on the Notes issued in the CLO Transaction as of December 31, 2024:
December 31, 2024
Description
Type
Principal Outstanding
Interest Rate
Credit Rating
Class A Notes
Senior Secured Floating Rate
$
232,000,000
SOFR + (1.60)%
AAA
Class B-1 Notes
Senior Secured Floating Rate
58,000,000
SOFR + (2.15)%
AA
Class B-2 Notes
Senior Secured Fixed Rate
10,000,000
(6.33)%
AA
Total Secured Notes
$
300,000,000
Subordinated Notes (1)
100,500,000
None
Not rated
Total Notes
$
400,500,000
(1)
The Company retained all of the Subordinated Notes issued in the CLO Transaction which are eliminated in consolidation.
On the Closing Date and in connection with the CLO Transaction, the Issuer and the Company entered into a note purchase agreement (the “Purchase Agreement”) with BofA Securities, Inc., as the initial purchaser (the “Initial Purchaser”), pursuant to which the Initial Purchaser purchased the Secured Notes issued pursuant to an indenture as part of the CLO Transaction.
The CLO Transaction is backed by a diversified portfolio of senior secured loans or participation interests therein with the potential for investment in second lien loans or participation interests therein, corporate bonds or loans made to a debtor-in-possession pursuant to Section 364 of the Bankruptcy Code having the priority allowed by either Section 364(c) or 364(d) of the Bankruptcy Code and fully secured by senior liens or participation interests therein, which is managed by the Company as collateral manager pursuant to a collateral management agreement entered into with the Issuer on the Closing Date (the “Collateral Management Agreement”). The Company has agreed to irrevocably waive all collateral management fees payable to it so long as it is the collateral manager under the Collateral Management Agreement. The Notes are scheduled to mature on July 15, 2037; however, the Notes may be redeemed by the Issuer, at the written direction of (i) a majority of the Subordinated Notes (with the consent of the Company, in the case of the Secured Notes) or (ii) the Company, in each case, on any business day on or after July 15, 2026.
The Secured Notes are the secured obligations of the Issuer, the Subordinated Notes are the unsecured obligations of the Issuer, and the indenture governing the Notes includes customary covenants and events of default. The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended, or any state securities or “blue sky” laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from registration.
For the years ended December 31, 2025 and December 31, 2024, the components of interest expense with respect to the Notes were as follows:
For the Year Ended December 31,
2025
2024
Interest expense
$
18,077,986
$
12,582,881
Amortization of debt issuance costs
139,402
85,127
Total interest expense
$
18,217,388
$
12,668,008
Average interest rate
5.95
%
6.78
%
Note 7. Share Transactions
Offering Proceeds
During the years ended December 31, 2025, 2024, and 2023, the Company issued and sold 32,662 shares at an aggregate purchase price of $0.5 million, 5,576,363 shares at an aggregate purchase price of $91.7 million, and 2,816,166 shares at an aggregate purchase price of $46.7 million, respectively. These amounts include shares issued in reinvestment.
Distribution Reinvestment Plan
The Company has adopted a dividend reinvestment plan that provides for reinvestment of its dividends and other distributions on behalf of the Company’s stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s Board authorizes, and the Company declares, a cash dividend or other distribution, then stockholders who do not “opt out” of the Company’s dividend reinvestment plan will have their cash dividends and distributions (net of applicable withholding tax) automatically reinvested in additional shares of the Company’s common stock, rather than receiving cash dividends and distributions.
F - 38
The Board intends to primarily use newly-issued shares to implement the dividend reinvestment plan, whether or not the shares are trading at a price per share at, below or above NAV. However, the Board reserves the right to purchase shares in the open market in connection with the implementation of the dividend reinvestment plan. The Board will examine the full facts and circumstances of each such dividend to determine the approach (i.e., to use newly issued shares or effectuate open market purchases to implement the dividend reinvestment plan) that is in the best interests of stockholders taking into account the Board’s fiduciary duties to stockholders, including by weighing the potential dilution in connection with such issuance to be incurred by the Company’s stockholders against the Company’s need and usage of reinvested funds, and, if the Company uses newly issued shares to implement the dividend reinvestment plan at a time when the shares are trading at a price below NAV, the stockholders’ receipt of fewer shares than they would have if the Company had effectuated open market purchases. The number of newly issued shares to be issued to a participant would be determined by dividing the total dollar amount of the dividend payable to such stockholder by the market price per share of the Company’s common stock at the close of regular trading on a national securities exchange on the dividend payment date. Shares purchased in open market transactions by Equiniti, the plan administrator and the Company’s transfer agent, registrar and dividend disbursing agent, will be allocated to a participant based upon the average purchase price, excluding any brokerage charges or other charges, of all shares of the Company’s common stock purchased with respect to the dividend.
A registered stockholder may elect to receive an entire distribution in cash by notifying Equiniti in writing so that such notice is received by the plan administrator no later than the record date for distributions to stockholders. The plan administrator will set up an account for shares acquired through the plan for each stockholder who has not elected to receive dividends or other distributions in cash and hold such shares in noncertificated form.
There will be no brokerage charges or other charges to stockholders who participate in the plan. The plan administrator’s fees will be paid by the Company.
Stockholders who receive dividends and other distributions in the form of stock are generally subject to the same U.S. federal, state and local tax consequences as are stockholders who elect to receive their distributions in cash. However, since a participating stockholder’s cash dividends will be reinvested, such stockholder will not receive cash with which to pay any applicable taxes on reinvested dividends. A stockholder’s basis for determining gain or loss upon the sale of stock received in a dividend or other distribution from the Company will generally be equal to the total dollar amount of the distribution payable to the stockholder. Any stock received in a dividend or other distribution will have a new holding period for tax purposes commencing on the day following the day on which the shares are credited to the U.S. stockholder’s account.
Participants may terminate their accounts under the plan by so notifying the plan administrator by submitting a letter of instruction terminating the participant’s account under the plan to Equiniti. The plan may be terminated by the Company upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend by the Company.
If participants withdraw from the plan or the plan is terminated, the plan administrator will cause the shares held for the participant under the plan to be delivered to the participant. If an investor holds common stock with a brokerage firm that does not participate in the plan, such investor will not be able to participate in the plan and any dividend reinvestment may be affected on different terms than those described above.
For the year ended December 31, 2025, the Company issued 32,662 shares of its common stock pursuant to the Company dividend reinvestment plan.
Open Market Share Repurchase Plan
The Board authorized the Company to repurchase shares of its common stock through an open-market share repurchase program for up to $20 million in the aggregate of shares of the Company’s common stock through 12 months from the date of the IPO. Pursuant to such authorization and concurrently with the closing of the IPO, the Company entered into a share repurchase plan (the “Company Rule 10b5-1 Stock Repurchase Plan”) to acquire up to $15 million in the aggregate of shares of its common stock, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Exchange Act. The Company Rule 10b5-1 Stock Repurchase Plan commenced on March 23, 2024, beginning 60 calendar days following the end of the “restricted period” under Regulation M, and terminated upon the effectiveness of the Extended Company Rule 10b5-1 Stock Repurchase Plan (as defined below).
The Board subsequently authorized the Company to enter into an extended share repurchase plan. On December 19, 2024, the Company entered into a share repurchase plan (the “Extended Company Rule 10b5-1 Stock Repurchase Plan”) to acquire up to $20 million in the aggregate of shares of the Company’s common stock less any repurchases made pursuant to the Company Rule 10b5-1 Stock Repurchase Plan, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Exchange Act. The Extended Company Rule 10b5-1 Stock Repurchase Plan commenced on January 22, 2025 and terminated on January 22, 2026.
The Company Rule 10b5-1 Stock Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan are intended to allow the Company to repurchase shares of its common stock at times when it otherwise might be prevented from doing so under insider trading laws. The Company Rule 10b5-1 Stock Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan will require the Company’s agent to repurchase shares of the Company’s common stock on the Company’s behalf when the market price per share of the Company’s common stock is below the most recently reported NAV per share of common stock. Under the Company Rule 10b5-1 Stock Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan, the agent will increase the volume of purchases made as the price of the Company’s common stock declines, subject to volume restrictions.
The repurchase of shares pursuant to the Company Rule 10b5-1 Stock Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan are intended to satisfy the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act and will otherwise be subject to applicable law, including Regulation M, which may prohibit purchases under certain circumstances.
On November 3, 2025 the Board authorized the Company to repurchase an additional $5 million of shares of its common stock through its open-market share repurchase program and extended the Company’s open-market share repurchase program to expire on January 22, 2027. Pursuant to the program, the Company may, from time to time, purchase shares of its common stock in the open market, subject to market conditions and other factors. The Company will determine the timing and amount of repurchases based on its evaluation of market conditions and other factors.
For the year ended December 31, 2025, the Company repurchased 1,371,447 shares of its common stock pursuant to the Company Rule 10b5-1 Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan.
PSCM Rule 10b5-1 Stock Purchase Plan
In addition, PSCM agreed to purchase up to $5 million in the aggregate of shares of the Company’s common stock in the open market within one year of the IPO date if the Company’s shares of common stock trade below a specific level of NAV per share following the IPO. Concurrently with the closing of the IPO, PSCM entered into a share purchase plan (the “PSCM Rule 10b5-1 Stock Purchase Plan”) to permit the purchase of up to $2.5 million shares of the
F - 39
Company’s common stock, in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act. The PSCM Rule 10b5-1 Stock Purchase Plan commenced on April 22, 2024 and terminated upon the effectiveness of the Extended PSCM Rule 10b5-1 Stock Purchase Plan (as defined below).
On April 22, 2025, PSCM entered into a share purchase plan (the “Extended PSCM Rule 10b5-1 Stock Purchase Plan”) to acquire up to $2.5 million in the aggregate of shares of the Company’s common stock less any purchases made pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Exchange Act. The Extended PSCM Rule 10b5-1 Stock Purchase Plan commenced on May 22, 2025 and will terminate upon the earliest to occur of (i) 12 months from the commencement of the Extended PSCM Rule 10b5-1 Stock Purchase Plan, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased under the Extended PSCM Rule 10b5-1 Stock Purchase Plan equals $2.5 million less any purchases made pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan and (iii) the occurrence of certain other events described in the Extended PSCM Rule 10b5-1 Stock Purchase Plan.
The PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan are intended to allow PSCM to purchase shares of the Company’s common stock at times when it otherwise might be prevented from doing so under insider trading laws. The PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan will require PSCM’s agent to purchase shares of common stock on PSCM’s behalf when the market price per share of the Company’s common stock is trading below the most recently reported NAV per share of common stock. Under the PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan, the agent will increase the volume of purchases made as the price of the Company’s common stock declines, subject to volume restrictions.
The purchase of shares pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan are intended to satisfy the conditions of Rule 10b5-1 and Rule 10b-18 under the Exchange Act, and will otherwise be subject to applicable law, including Regulation M, which may prohibit purchases under certain circumstances.
For the year ended December 31, 2025, PSCM purchased 136,255 shares of the Company’s common stock pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan.
Note 8. Dividends and Distributions
The Company’s dividends and distributions are recorded on the ex-dividend date. The following table summarizes the Company’s dividend declarations and distributions during the year ended December 31, 2025:
Date Declared
Record Date
Payment Date
Amount Per Share
Cash Distribution
DRIP Shares Issued
DRIP Shares Value
2/27/2025
3/28/2025
4/10/2025
$
0.360
$
11,552,886
12,507
$
161,965
(1)
3/24/2025
3/28/2025
4/10/2025
0.030
962,741
1,042
13,497
(1)
5/7/2025
6/27/2025
7/14/2025
0.360
11,573,928
1,857
26,446
(2)
6/23/2025
6/27/2025
7/14/2025
0.060
1,928,988
310
4,408
(2)
8/6/2025
9/26/2025
10/14/2025
0.360
11,462,765
2,119
26,836
(3)
9/23/2025
9/26/2025
10/14/2025
0.060
1,910,460
353
4,473
(3)
11/5/2025
12/29/2025
1/14/2026
0.360
11,253,948
-
-
12/23/2025
12/29/2025
1/14/2026
0.070
2,188,267
-
-
(1)
In accordance with the Company’s dividend reinvestment plan, 13,549 shares of the Company’s stock were purchased in the open market at an average price of $12.95 and such shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
(2)
In accordance with the Company’s dividend reinvestment plan, 2,167 shares of the Company’s stock were purchased in the open market at an average price of $14.24 and such shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
(3)
In accordance with the Company's dividend reinvestment plan, 2,472 shares of the Company's stock were purchased in the open market at an average price of $12.66 and such shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
F - 40
The following table summarizes the Company’s dividend declarations and distributions during the year ended December 31, 2024:
Date Declared
Record Date
Payment Date
Amount Per Share
Cash Distribution
DRIP Shares Issued
DRIP Shares Value
3/20/2024
3/28/2024
4/10/2024
$
0.490
$
12,893,635
185,345
$
3,057,234
(1)
5/7/2024
6/28/2024
7/16/2024
0.420
11,093,012
157,231
2,585,298
(2)
6/20/2024
6/28/2024
7/16/2024
0.050
1,320,596
18,718
307,774
(2)
8/7/2024
9/27/2024
10/14/2024
0.420
11,552,807
132,571
2,149,264
(3)
9/23/2024
9/27/2024
10/14/2024
0.050
1,375,334
15,782
255,865
(3)
11/5/2024
12/27/2024
1/13/2025
0.420
11,958,404
110,129
1,735,280
(4)
12/23/2024
12/27/2024
1/13/2025
0.060
1,708,344
15,733
247,897
(4)
(1)
In accordance with the Company’s dividend reinvestment plan, 149,382 shares of the Company’s stock were purchased in the open market for an average price of $16.49. The Company issued the remaining 35,963 shares of common stock at the average open market price and shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
(2)
In accordance with the Company’s dividend reinvestment plan, 110,540 shares of the Company’s stock were purchased in the open market for an average price of $16.44. The Company issued the remaining 65,409 shares of common stock at the average open market price and shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
(3)
In accordance with the Company’s dividend reinvestment plan, 123,362 shares of the Company’s stock were purchased in the open market for an average price of $16.21. The Company issued the remaining 24,991 shares of common stock at the average open market price and shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
(4)
In accordance with the Company’s dividend reinvestment plan, 93,200 shares of the Company’s stock were purchased in the open market for an average price of $15.76. The Company issued the remaining 32,662 shares of common stock at the average open market price and shares were allocated to stockholders of the Company participating in the dividend reinvestment plan.
Note 9. Commitments and Contingencies
As of December 31, 2025 and December 31, 2024, the Company had an aggregate of $21.5 million and $21.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of December 31, 2025 and December 31, 2024, there were no capital calls or draw requests made by the portfolio companies to fund these commitments. Such commitments are generally up to the Company’s discretion to approve or are subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.
A summary of the composition of the unfunded commitments as of December 31, 2025 is shown in the table below:
Expiration Date (1)
As of
December 31,
2025
American Rock Salt Company LLC
9/19/2026
$
304,582
Aptean Inc
1/30/2031
377,330
Cooper's Hawk Intermediate Holding LLC
7/29/2027
578,947
Cooper's Hawk Intermediate Holding LLC
7/29/2031
315,789
Deerfield Dakota Holding, LLC
9/12/2032
857,143
Dwyer Instruments, LLC
7/21/2029
768,720
Edition Holdings Inc
12/20/2027
1,786,600
Edition Holdings Inc
12/20/2027
953,466
Galway Borrower LLC
9/30/2028
461,641
Galway Borrower LLC
2/7/2026
3,530,286
GC Ferry Acquisition Inc
8/16/2027
1,312,500
Logrhythm, Inc.
7/2/2029
636,364
Minotaur Acquisition, Inc.
5/10/2030
697,674
MRI Software LLC
2/10/2027
509,096
National Mentor Holdings, Inc.
12/14/2026
2,700,000
Optimizely North America Inc.
10/30/2031
458,333
PT Intermediate Holdings III, LLC
4/8/2026
583,313
Raven Acquisition Holdings LLC
11/19/2026
200,468
US Fertility Enterprises, LLC
12/30/2027
657,895
USIC Holdings, Inc.
9/10/2026
63,572
USIC Holdings, Inc.
9/10/2031
171,052
Vacation Rental Brands, LLC
10/15/2027
3,611,111
Total unfunded commitments
$
21,535,882
(1)
Commitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which may be shorter than its maturity.
F - 41
A summary of the composition of the unfunded commitments as of December 31, 2024 is shown in the table below:
Expiration Date (1)
As of
December 31,
2024
American Rock Salt Company LLC
9/19/2026
$
571,091
Aptean Inc.
1/30/2031
436,880
Aptean Inc.
1/30/2026
238,414
Aramsco, Inc.
10/10/2025
561,386
B'Laster Holdings, LLC
10/25/2025
466,666
Dwyer Instruments, LLC
11/20/2026
492,210
Dwyer Instruments, LLC
7/21/2029
1,197,934
Enverus Holdings, Inc.
12/22/2025
310,811
Enverus Holdings, Inc.
12/24/2029
458,884
Everest SubBidCo
9/24/2025
2,660,000
Galway Borrower LLC
9/30/2028
512,698
Galway Borrower LLC
2/7/2026
4,360,571
GS AcquisitionCo, Inc.
3/26/2026
1,232,000
GS AcquisitionCo, Inc.
5/25/2028
1,200,000
Logrhythm, Inc.
7/2/2029
636,364
Minotaur Acquisition, Inc.
5/10/2026
1,162,791
Minotaur Acquisition, Inc.
5/10/2030
697,674
MRI Software LLC
2/10/2027
601,016
Optimizely North America Inc.
10/30/2031
458,333
Patriot Growth Insurance Services, LLC
11/17/2025
1,480,000
PT Intermediate Holdings III, LLC
4/8/2026
686,119
Tank Holding Corp.
11/22/2025
135,000
TMC Buyer, Inc.
11/1/2026
416,667
US Fertility Enterprises, LLC
10/14/2026
217,391
USIC Holdings, Inc.
9/10/2026
139,276
USIC Holdings, Inc.
9/10/2031
248,302
Total unfunded commitments
$
21,578,478
(1)
Commitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which may be shorter than its maturity.
From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of December 31, 2025, management is not aware of any pending or threatened litigation.
Note 10. Earnings Per Share
In accordance with the provisions of ASC Topic 260, Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of each of December 31, 2025, 2024, and 2023, there were no dilutive shares.
The following table sets forth the computation of basic and diluted earnings per share of common stock for the years ended December 31, 2025, 2024, and 2023:
For the Year Ended December 31,
2025
2024
2023
Net increase (decrease) in net assets resulting from operations
$
(3,169,730
)
$
47,665,765
$
107,835,651
Weighted average shares of common stock outstanding - basic and diluted
32,133,879
32,353,615
25,700,603
Earnings (loss) per share of common stock - basic and diluted
$
(0.10
)
$
1.47
$
4.20
Note 11. Income Taxes
The Company intends to continue to qualify annually as a RIC under the Internal Revenue Code (“Code”). As a RIC, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed currently to its stockholders as a dividend. The Company anticipates distributing substantially all of its taxable income and gains, within the Subchapter M rules, and thus the Company anticipates that it will not incur any federal or state income tax at the RIC level. As a RIC, the Company is also subject to a nondeductible federal excise tax based on distributive requirements of its taxable income on a calendar year basis. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a 4% excise tax on such income, to the extent required.
F - 42
The permanent differences for tax purposes from distributable earnings to additional paid in capital were reclassified for tax purposes for the tax years ended December 31, 2025, 2024, and 2023. These reclassifications have no impact on net assets.
Year Ended December 31,
2025
2024
2023
Increase (decrease) in distributable earnings
$
—
$
—
$
—
Increase (decrease) in capital in excess of par value
$
—
$
—
$
—
The following reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2025, 2024, and 2023:
Year Ended December 31,
2025
2024
2023
Net increase (decrease) in net assets resulting from operations
$
(3,169,730
)
$
47,665,765
$
107,835,651
Net change in unrealized appreciation (depreciation) from investments
43,434,583
(2,843,502
)
(52,563,544
)
Other book tax differences
13,193,914
17,994,974
1,677,010
Taxable income before deductions for distributions
$
53,458,767
$
62,817,237
$
56,949,117
Year Ended December 31,
2025
2024
2023
Distributions paid from:
Ordinary income
$
53,071,608
$
62,240,744
$
56,068,285
Capital gains
—
—
—
Return of Capital
—
—
—
Total
$
53,071,608
$
62,240,744
$
56,068,285
For the years ended December 31, 2025, 2024, and 2023, the components of accumulated earnings on a tax basis were as follows:
Year Ended December 31,
2025
2024
2023
Undistributed net investment income (loss)
$
522,762
$
725,106
$
148,613
Undistributed capital gains
—
—
—
Capital loss carryforward
(38,388,260
)
(26,055,895
)
(9,042,947
)
Other accumulated gain (loss)
(70,320
)
(78,134
)
(85,947
)
Net unrealized appreciation (depreciation)
(91,598,329
)
(47,900,872
)
(49,754,535
)
Total
$
(129,534,147
)
$
(73,309,795
)
$
(58,734,816
)
Capital losses can be carried forward indefinitely to offset future capital gains. As of December 31, 2025, 2024 and 2023, the Company had $38,388,260, $26,055,895 and $9,042,947 in capital loss carryforwards, respectively.
As of December 31, 2025, 2024, and 2023, the Company’s aggregate unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes was as follows:
Year Ended December 31,
2025
2024
2023
Tax cost
$
1,295,238,647
$
1,455,014,184
$
1,158,548,300
Gross unrealized appreciation
6,386,163
13,752,795
9,383,672
Gross unrealized depreciation
(97,984,492
)
(61,653,667
)
(59,138,207
)
Net unrealized appreciation/(depreciation) on investments
$
(91,598,329
)
$
(47,900,872
)
$
(49,754,535
)
The Company adopted FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes (“ASC 740”) as of January 23, 2020, commencement of operations. ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. As of December 31, 2025, management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the Company’s current year tax return. The Company identifies its major tax jurisdiction as U.S. Federal. The 2022-2025 tax years remain subject to examination by U.S. federal, state and local authorities. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof.
F - 43
Note 12. Financial Highlights
The following per share of common stock data has been derived from information provided in the consolidated financial statements. The following is a schedule of financial highlights for the years ended December 31, 2025, 2024, 2023, 2022, and 2021:
For the Year Ended December 31,
2025
2024
2023
2022
2021
Per Common Share Operating Performance
Net Asset Value, Beginning of Period
$
16.50
$
17.04
$
14.96
$
20.06
$
20.15
Results of Operations:
Net Investment Income(1)
1.66
1.93
2.26
1.78
1.47
Net Realized and Unrealized Gain (Loss) on Investments(4)
(1.65
)
(0.56
)
1.98
(5.00
)
(0.18
)
Net Increase (Decrease) in Net Assets Resulting from Operations
0.01
1.37
4.24
(3.22
)
1.29
Distributions to Common Stockholders
Distributions from Net Investment Income
(1.66
)
(1.91
)
(2.16
)
(1.85
)
(1.01
)
Distributions from Realized Gains
—
—
—
(0.03
)
(0.37
)
Net Decrease in Net Assets Resulting from Distributions
(1.66
)
(1.91
)
(2.16
)
(1.88
)
(1.38
)
Net Asset Value, End of Period
$
14.85
$
16.50
$
17.04
$
14.96
$
20.06
Shares Outstanding, End of Period
31,260,963
32,600,193
27,102,794
24,286,628
22,750,331
Ratio/Supplemental Data
Net assets, end of period
$
464,123,172
$
537,844,969
$
461,955,393
$
363,443,482
$
452,797,588
Weighted-average shares outstanding
32,133,879
32,353,615
25,700,603
23,130,666
15,494,614
Total Return(3)
2.11
%
8.74
%
29.21
%
(16.51
)%
8.10
%
Portfolio turnover
35
%
36
%
25
%
27
%
53
%
Ratio of operating expenses to average net assets without waiver(2)
13.89
%
14.68
%
13.15
%
8.28
%
5.54
%
Ratio of operating expenses to average net assets with waiver(2)
13.89
%
14.67
%
12.90
%
8.03
%
5.29
%
Ratio of net investment income (loss) to average net assets without waiver(2)
10.47
%
11.34
%
13.54
%
9.61
%
6.92
%
Ratio of net investment income (loss) to average net assets with waiver(2)
10.47
%
11.35
%
13.79
%
9.86
%
7.17
%
(1)
The per common share data was derived by using weighted average shares outstanding.
(2)
The ratios reflect an annualized amount.
(3)
Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. Total return is not annualized. Assumes reinvestment of distributions.
(4)
Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Consolidated Statements of Operations due to share transactions during the period.
Note 13. Segment Reporting
The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation through debt and equity investments. The Chief Operating Decision Maker (“CODM”) is the Company’s chief executive officer, and the CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase in net assets resulting from operations (“net income”). Net income is comprised of total investment income (‘segment revenues’) and total expenses (‘significant segment expenses’), which are considered the key segment measures of profit or loss reviewed by the CODM. In addition to numerous other factors and metrics, the CODM utilizes net income as a key metric in determining the amount of dividends to be distributed to the Company’s stockholders, implementing investment policy decisions, strategic initiatives, managing the Company’s portfolio, allocating assets, and assessing the performance of the portfolio. As the Company’s operations are comprised solely of the Investment Management Segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities as “total assets” and the significant segment expenses are listed on the accompanying consolidated statement of operations.
F - 44
Note 14. Selected Quarterly Financial Data (Unaudited)
The following are the quarterly results of operations for the years ended December 31, 2025, 2024, and 2023. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
For the Three Months Ended
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
Investment income
$
31,214,279
$
31,676,920
$
31,685,269
$
29,818,294
Net expenses
18,301,128
17,835,391
18,044,199
16,750,464
Net investment income (loss)
12,913,151
13,841,529
13,641,070
13,067,830
Net realized gain (loss) on investments, and foreign currency transactions
(5,894,493
)
(5,745,139
)
(1,243,620
)
(315,475
)
Net change in unrealized gain (loss) on investments, foreign currency translations, and foreign currency contracts
(15,407,869
)
(926,414
)
(9,044,026
)
(18,056,274
)
Increase (decrease) in net assets resulting from operations
$
(8,389,211
)
$
7,169,976
$
3,353,424
$
(5,303,919
)
Net asset value per share as of the end of the quarter
$
15.85
$
15.68
$
15.39
$
14.85
For the Three Months Ended
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
Investment income
$
34,784,943
$
36,549,496
$
37,306,001
$
34,872,859
Net expenses
18,466,714
20,791,645
21,577,270
20,077,288
Net investment income (loss)
16,318,229
15,757,851
15,728,731
14,795,571
Net realized gain (loss) on investments, and foreign currency transactions
(1,736,331
)
(9,411,924
)
(7,119,299
)
489,435
Net change in unrealized gain (loss) on investments, foreign currency translations, and foreign currency contracts
8,298,242
(1,033,114
)
(1,054,247
)
(3,367,379
)
Increase (decrease) in net assets resulting from operations
$
22,880,140
$
5,312,813
$
7,555,185
$
11,917,627
Net asset value per share as of the end of the quarter
$
17.16
$
16.85
$
16.61
$
16.50
For the Three Months Ended
March 31, 2023
June 30, 2023
September 30, 2023
December 31, 2023
Investment income
$
26,185,502
$
27,441,864
$
28,773,690
$
29,822,551
Net expenses
12,592,823
13,241,745
13,969,777
14,431,742
Net investment income (loss)
13,592,679
14,200,119
14,803,913
15,390,809
Net realized gain (loss) on investments, and foreign currency transactions
(317,446
)
(2,570
)
(2,103,618
)
(291,779
)
Net change in unrealized gain (loss) on investments, foreign currency translations, and foreign currency contracts
14,813,089
9,743,113
21,152,793
6,854,549
Increase (decrease) in net assets resulting from operations
$
28,088,322
$
23,940,662
$
33,853,088
$
21,953,579
Net asset value per share as of the end of the quarter
$
16.12
$
16.55
$
16.76
$
17.04
F - 45
Note 15. Subsequent Events
The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that require recognition or disclosure in these consolidated financial statements, except for the following:
Distributions
On January 14, 2026, the Company paid a distribution in the amount of $13,442,214, or $0.43 per share, to shareholders on record as of December 29, 2025.
Unfunded Capital Commitments
On January 12, 2026, $36,785.44 was paid down on the USIC Holdings, Inc. facility. On January 21, 2026, $36,785.44 of the outstanding commitment to USIC Holdings, Inc. was funded. On February 17, 2026, $55,178.15 of the outstanding commitment to USIC Holdings, Inc. was funded. The balance of the remaining unfunded commitment was $115,874.13 as of such date.
On January 12, 2026, $52,631.58 of the outstanding commitment to Cooper's Hawk Intermediate Holding LLC was funded. The balance of the remaining unfunded commitment was $263,157.89 as of such date.
On January 14, 2026, $204,263.00 of the outstanding commitment to Galway Borrower LLC was funded. On February 7, 2026, the outstanding commitment to Galway Borrower LLC expired. The balance of the remaining unfunded commitment was $0 as of such date.
On January 23, 2026, $31,818.50 of the outstanding commitment to MRI Software LLC was funded. The balance of the remaining unfunded commitment was $477,277.50 as of such date.
On January 30, 2026, $30,186.37 was paid down on the Aptean Inc. facility. The balance of the remaining unfunded commitment was $407,516.01 as of such date.
On January 30, 2026, $36,165.40 was paid down on the Galway Borrower LLC facility. On February 6, 2026, $17,019.01 was paid down on the Galway Borrower LLC facility. The balance of the remaining unfunded commitment was $514,825.09 as of such date.
On February 12, 2026, $85,555.56 of the outstanding commitment to Vacation Rental Brands, LLC was funded. On February 19, 2026, $283,333.33 of the outstanding commitment to Vacation Rental Brands, LLC was funded. The balance of the remaining unfunded commitment was $3,242,222.22 as of such date.
On February 17, 2026, $175,186.06 of the outstanding commitment to Edition Holdings Inc was funded. The balance of the remaining unfunded commitment was $1,611,413.94 as of such date.
On February 24, 2026, $71,428.57 of the outstanding commitment to Deerfield Dakota Holding, LLC was funded. The balance of the remaining unfunded commitment was $785,714.28 as of such date.
Company Rule 10b5-1 Stock Repurchase Plan
From January 1, 2026 to February 25, 2026, the Company repurchased 61,796 shares of its common stock pursuant to the Extended Company Rule 10b5-1 Stock Repurchase Plan at an aggregate price of $750,392.
F - 46