Palmer Square Capital BDC Inc. Announces First Quarter 2025 Supplemental Dividend of $0.03

Rhea-AI Summary

Palmer Square Capital BDC (NYSE: PSBD) has declared a supplemental dividend of $0.03 per share for the first quarter 2025, in addition to its base dividend of $0.36 per share. Both dividends will be payable on April 10, 2025, to shareholders of record as of March 28, 2025.

The supplemental dividend will be funded from excess undistributed net investment income above the Q1 2025 base dividend. PSBD, an externally managed business development company, focuses on corporate debt loans, particularly in large private U.S. companies within the broadly syndicated loan market and direct large cap private credit market.

Positive

• Announced supplemental dividend of $0.03 per share on top of base dividend
• Demonstrates excess undistributed net investment income above regular dividend

Negative

• None.

Insights

Financial Analyst

Palmer Square Capital BDC's supplemental dividend announcement represents a meaningful enhancement to shareholder returns. The $0.03 supplemental payment increases the Q1 dividend by 8.3% over the $0.36 base dividend, bringing the total distribution to $0.39 per share. At the current market price of $14.49, this equates to a quarterly yield of 2.69% or approximately 10.77% annualized.

The supplemental nature of this dividend is particularly significant for a BDC, as it indicates the company is generating investment income in excess of what's needed to cover its already substantial base dividend. BDCs operate under regulations requiring distribution of at least 90% of taxable income, making dividend policy a direct reflection of portfolio performance.

The explicit statement that this supplemental dividend comes from excess quarterly undistributed net investment income suggests the loan portfolio is performing well. This distribution method is preferable to dividends sourced from capital gains or return of capital, as it represents recurring operational performance rather than one-time events or capital depletion.

For yield-oriented investors in the BDC sector, this supplemental dividend enhances PSBD's competitive position and signals portfolio health in the current credit environment. The record date of March 28, 2025, is approaching quickly, making this announcement timely for potential investors considering a position in PSBD.

MISSION WOODS, Kan.--(BUSINESS WIRE)-- Palmer Square Capital BDC Inc. (NYSE: PSBD) (“PSBD” or the “Company”), an externally managed business development company, today announced that its Board of Directors has declared a first quarter 2025 supplemental dividend of $0.03 per share. Shareholders of record as of March 28, 2025, will receive the supplemental dividend, payable on April 10, 2025.

The supplemental dividend will be paid out of the excess of the Company’s quarterly undistributed net investment income, above the first quarter 2025 base dividend of $0.36 per share, payable on April 10, 2025, to shareholders of record as of March 28, 2025.

About Palmer Square Capital BDC Inc.

Palmer Square Capital BDC Inc. (NYSE: PSBD) is an externally managed, non-diversified closed-end management investment company that primarily lends to and invests in corporate debt loans, including but not limited to large private U.S. companies in the broadly syndicated loan market, as well as the direct large cap private credit market. PSBD has elected to be regulated as a business development company under the Investment Company Act of 1940. PSBD’s investment objective is to maximize total return, comprised of current income and capital appreciation. PSBD’s current investment focus is guided by two strategies that facilitate its investment opportunities and core competencies: (1) investing in corporate debt loans and, to a lesser extent, (2) investing in other debt securities which may include collateralized loan obligation debt and equity. PSBD’s investment activities are managed by its investment adviser, Palmer Square BDC Advisor LLC, an affiliate of Palmer Square Capital Management LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250321045684/en/

Investors

Matt Bloomfield and Jeremy Goff

Palmer Square Capital BDC Inc.

Investors@palmersquarebdc.com



Media

Josh Clarkson

Prosek Partners

PSBD@prosek.com

Source: Palmer Square Capital BDC Inc.

FAQ

What is the total dividend payment for PSBD shareholders in Q1 2025?

PSBD shareholders will receive a total of $0.39 per share, consisting of a $0.36 base dividend plus a $0.03 supplemental dividend.

When is the record date for PSBD's Q1 2025 dividend payment?

The record date is March 28, 2025, for both the base and supplemental dividends.

What are PSBD's main investment strategies?

PSBD primarily invests in corporate debt loans to large private U.S. companies and focuses on broadly syndicated loans and direct large cap private credit markets.

How is PSBD's supplemental dividend funded?

The supplemental dividend is funded from excess undistributed net investment income above the Q1 2025 base dividend of $0.36 per share.