10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-01334

Palmer Square Capital BDC Inc.

(Exact name of registrant as specified in its charter)

Maryland	84-3665200
(State or Other Jurisdiction of<br>Incorporation or Organization)	(I.R.S. Employer<br>Identification No.)
1900 Shawnee Mission Parkway, Suite 315,<br><br>Mission Woods, KS	66205
---	---
(Address of Principal Executive Offices)	(Zip Code)

(816) 994-3200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	PSBD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 5, 2025, the registrant had 32,125,732 shares of common stock, $0.001 par value per share, outstanding.

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements (Unaudited)	1
	Consolidated Statements of Assets and Liabilities as of June 30, 2025 (Unaudited) and December 31, 2024	1
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and June 30, 2024 (Unaudited)	2
	Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2025 and June 30, 2024 (Unaudited)	3
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and June 30, 2024 (Unaudited)	4
	Consolidated Schedules of Investments as of June 30, 2025 (Unaudited) and December 31, 2024	5
	Notes to Consolidated Financial Statements (Unaudited)	27
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57
Item 4.	Controls and Procedures	58
PART II	OTHER INFORMATION	59
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3.	Defaults Upon Senior Securities	60
Item 4.	Mine Safety Disclosures	60
Item 5.	Other Information	60
Item 6.	Exhibits	61
SIGNATURES		62

i

Palmer Square Capital BDC Inc.

Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Income:
Investment income from non-controlled, non-affiliated investments:
Interest income	$	30,023,842		$	35,278,431		$	59,843,505		$	68,486,203
Dividend income		481,501			805,031			1,055,837			2,059,727
Payment-in-kind interest income		801,918			182,116			1,309,768			234,303
Other income		369,659			283,918			682,089			554,206
Total investment income from non-controlled, non-affiliated investments		31,676,920			36,549,496			62,891,199			71,334,439
Total Investment Income		31,676,920			36,549,496			62,891,199			71,334,439
Expenses:
Incentive fees		1,940,079			2,249,954			3,782,785			4,174,706
Interest expense		12,576,374			14,997,028			25,546,131			28,175,858
Management fees		2,233,077			2,450,079			4,566,752			4,866,318
Professional fees		251,376			398,080			564,108			636,023
Directors fees		37,397			37,295			74,384			74,590
Other general and administrative expenses		797,088			659,209			1,602,359			1,381,375
Total Expenses		17,835,391			20,791,645			36,136,519			39,308,870
Less: Management fee waiver (Note 3)		—			—			—			(50,511	)
Net expenses		17,835,391			20,791,645			36,136,519			39,258,359
Net Investment Income (Loss)		13,841,529			15,757,851			26,754,680			32,076,080
Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses):
Non-controlled, non-affiliated investments		(5,745,139	)		(9,411,924	)		(11,639,632	)		(11,148,255	)
Total net realized gains (losses)		(5,745,139	)		(9,411,924	)		(11,639,632	)		(11,148,255	)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments		(926,414	)		(1,033,114	)		(16,334,283	)		7,265,128
Total net change in unrealized gains (losses)		(926,414	)		(1,033,114	)		(16,334,283	)		7,265,128
Total realized and unrealized gains (losses)		(6,671,553	)		(10,445,038	)		(27,973,915	)		(3,883,127	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,169,976		$	5,312,813		$	(1,219,235	)	$	28,192,953
Per Common Share Data:
Basic and diluted net investment income per common share	$	0.43		$	0.48		$	0.82		$	1.00
Basic and diluted net increase (decrease) in net assets resulting from operations	$	0.22		$	0.16		$	(0.04	)	$	0.88
Weighted Average Common Shares Outstanding - Basic and Diluted		32,349,999			32,569,280			32,475,330			32,081,916

The accompanying notes are an integral part of these consolidated financial statements.

Palmer Square Capital BDC Inc.

Consolidated Statements of Changes in Net Assets

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss)	$	13,841,529		$	15,757,851		$	26,754,680		$	32,076,080
Net realized gains (losses) on investments and foreign currency<br>   transactions		(5,745,139	)		(9,411,924	)		(11,639,632	)		(11,148,255	)
Net change in unrealized gains (losses) on investments, foreign currency<br>translations, and foreign currency exchange contracts		(926,414	)		(1,033,114	)		(16,334,283	)		7,265,128
Net Increase (Decrease) in Net Assets Resulting from Operations		7,169,976			5,312,813			(1,219,235	)		28,192,953
Decrease in Net Assets Resulting from Stockholder Distributions
Dividends and distributions to stockholders		(13,533,770	)		(15,306,680	)		(26,224,859	)		(31,257,549	)
Net Decrease in Net Assets Resulting from Stockholder Distributions		(13,533,770	)		(15,306,680	)		(26,224,859	)		(31,257,549	)
Increase in Net Assets Resulting from Capital Share Transactions
Issuance of common shares		—			—			—			89,652,500
Shares issued in connection with dividend reinvestment plan (Note 7)		—			593,206			514,649			593,206
Repurchase of common shares		(4,230,020	)		(346,272	)		(5,702,084	)		(346,272	)
Net Increase in Net Assets Resulting from Capital Share Transactions		(4,230,020	)		246,934			(5,187,435	)		89,899,434
Total Increase (Decrease) in Net Assets		(10,593,814	)		(9,746,933	)		(32,631,529	)		86,834,838
Net Assets, Beginning of Period		515,807,254			558,537,164			537,844,969			461,955,393
Net Assets, End of Period	$	505,213,440		$	548,790,231		$	505,213,440		$	548,790,231

The accompanying notes are an integral part of these consolidated financial statements.

Palmer Square Capital BDC Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended June 30,
	2025			2024
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(1,219,235	)	$	28,192,953
Adjustments to reconcile net increase (decrease) in net assets resulting from<br>   operations to net cash used in operating activities:
Net realized (gains)/losses on investments		11,639,632			11,148,255
Net change in unrealized (gains)/losses on investments		16,334,283			(7,265,128	)
Net accretion of discount on investments		(948,788	)		(914,811	)
Payment-in-kind interest		(1,309,768	)		(234,303	)
Purchases of short-term investments		(261,034,788	)		(547,865,017	)
Purchases of portfolio investments		(196,684,831	)		(535,784,227	)
Proceeds from sale of short-term investments		281,691,311			548,565,867
Proceeds from sale of portfolio investments		277,651,090			209,583,349
Amortization of deferred financing cost		854,144			698,939
Increase/(decrease) in operating assets and liabilities:
(Increase)/decrease in receivable for sales of investments		(177,309	)		82,093
(Increase)/decrease in interest and dividends receivable		1,972,065			(2,820,622	)
(Increase)/decrease in due from investment adviser		(364,725	)		1,679,371
(Increase)/decrease in receivable for paydowns of investments		1,136,903			(292,633	)
(Increase)/decrease in prepaid expenses and other assets		(6,827	)		(137,001	)
Increase/(decrease) in interest payable on credit facilities		(1,592,376	)		736,352
Increase/(decrease) in payable for investments purchased		(40,026,606	)		53,529,859
Increase/(decrease) in management fees payable		(180,721	)		198,004
Increase/(decrease) in incentive fee payable		(209,053	)		2,249,954
Increase/(decrease) in accrued other general and administrative expenses		(125,937	)		245,862
Net cash provided by (used in) operating activities		87,398,464			(238,402,884	)
Cash Flows from Financing Activities:
Borrowings on the credit facilities		37,100,000			187,900,000
Payments on the credit facilities		(77,300,000	)		(305,319,060	)
Borrowings on the notes		—			300,000,000
Payments of debt issuance costs		—			(5,454,956	)
Distributions paid in cash		(28,341,014	)		(15,950,869	)
Proceeds from issuance of common shares, net of change in subscriptions receivable		—			89,652,500
Purchase of common shares for dividend reinvestment plan		514,649			593,206
Repurchase of common shares		(5,702,084	)		(346,272	)
Net cash provided by (used in) financing activities		(73,728,449	)		251,074,549
Net increase/(decrease) in cash and cash equivalents		13,670,015			12,671,665
Cash and cash equivalents, beginning of period		2,766,409			2,117,109
Cash and cash equivalents, end of period	$	16,436,424		$	14,788,774
Supplemental and Non-Cash Information:
Interest paid during the period	$	27,138,507		$	27,439,506
Distributions declared during the period	$	26,224,859		$	31,257,549
Distributions payable	$	13,533,770		$	15,306,680

The accompanying notes are an integral part of these consolidated financial statements.

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
Debt Investments
First Lien Senior Secured(2)
888 Holdings PLC (4)(8)	Hotels, Restaurants and Leisure	9.63% (S +CSA + 5.25%)	7/8/2028		5,912,115		5,802,351		5,687,926		1.0	%
AccentCare, Inc. (6)(8)	Healthcare Providers and Services	8.30% (S + 4.00%)	9/20/2028		5,820,886		5,821,404		5,104,189		0.9	%
Accession Risk Management Group, Inc.	Insurance	9.05% (S + 4.75%)	11/1/2029		2,959,487		2,959,487		2,959,486		0.5	%
Accession Risk Management Group, Inc.	Insurance	9.05% (S +CSA + 4.75%)	11/1/2029		785,949		769,304		785,948		0.1	%
Accession Risk Management Group, Inc. (7)	Insurance	9.05% (S + 4.75%)	11/1/2029		6,035,622		6,003,817		6,035,621		1.2	%
Acrisure, LLC (8)	Insurance	7.33%(S+3.00%)	11/6/2030		3,970,050		3,962,506		3,965,384		0.8	%
Ahlstrom Holding 3 OY (4)(6)(8)	Containers and Packaging	8.48% (S +CSA + 4.00%)	5/23/2030		7,000,000		6,895,000		6,991,249		1.4	%
Aimbridge Acquisition Co., Inc. (8)	Hotels, Restaurants and Leisure	9.93% (S +CSA + 5.50%)	3/11/2030		735,010		735,010		735,928		0.1	%
Aimbridge Acquisition Co., Inc. (6)(8)	Hotels, Restaurants and Leisure	11.93% (S +CSA + 7.50%)	3/11/2030		746,462		737,532		741,330		0.1	%
Albion Financing 3 S.a r.l. (Albion Financing LLC) (4)(8)	Diversified Consumer Services	7.32% (S + 3.00%)	8/16/2029		2,970,075		2,970,075		2,978,436		0.6	%
Allied Universal Holdco LLC (6)(8)	Professional Services	8.18% (S +CSA + 3.75%)	5/12/2028		9,691,464		9,678,932		9,748,596		1.9	%
American Rock Salt Company LLC (6)	Metals and Mining	11.59% (S +CSA + 7.00%)	6/9/2028		887,999		830,192		894,659		0.2	%
American Rock Salt Company LLC (6)	Metals and Mining	8.59% (S +CSA + 4.00%)	6/9/2028		5,764,824		5,764,019		4,737,607		0.9	%
Amynta Agency Borrower Inc. (Amynta Warranty Borrower Inc.) (8)	Insurance	7.33% (S + 3.00%)	12/6/2031		2,977,538		2,949,903		2,980,723		0.6	%
Ankura Consulting Group, LLC (6)	Professional Services	7.80% (S + 3.50%)	12/17/2031		7,348,591		7,337,399		7,353,184		1.4	%
Anticimex Global AB (4)(8)	Commercial Services and Supplies	7.66% (S + 3.40%)	11/16/2028		3,780,907		3,780,907		3,800,757		0.8	%
Aptean Acquiror Inc. (7)	Software	9.05% (S + 4.75%)	1/30/2031		6,670,828		6,629,921		6,653,601		1.3	%
Aramsco, Inc. (7)	Machinery	9.05% (S + 4.75%)	10/10/2030		5,981,083		5,918,226		4,844,677		1.0	%
ARC Falcon I Inc. (6)(8)	Chemicals	7.93% (S +CSA + 3.50%)	8/31/2028		4,062,419		4,052,811		4,081,472		0.8	%
Arcline FM Holdings LLC (8)	Industrial Conglomerates	7.58% (S + 3.50%)	6/24/2030		3,000,000		2,992,665		3,017,280		0.6	%
Aretec Group, Inc. (6)(8)	Diversified Financial Services	7.83% (S + 3.50%)	8/9/2030		10,865,462		10,770,746		10,897,407		2.1	%
Aruba Investments, Inc. (6)(8)	Chemicals	8.43% (S +CSA + 4.00%)	10/28/2027		7,892,386		7,866,741		7,458,305		1.5	%
Ascend Learning, LLC (6)(8)	Professional Services	7.33% (S + 3.00%)	12/11/2028		8,239,084		8,200,711		8,247,199		1.6	%
Aspire Bakeries Holdings, LLC (6)(8)	Food Products	7.82% (S + 3.50%)	12/23/2030		10,556,683		10,554,542		10,611,103		2.1	%
AssuredPartners, Inc (6)(8)	Insurance	7.83% (S + 3.50%)	2/14/2031		9,875,000		9,867,937		9,910,896		2.0	%
Athletico Management, LLC (6)	Healthcare Providers and Services	8.70% (S +CSA + 4.25%)	2/2/2029		7,008,250		6,990,802		4,842,701		1.0	%
Autokiniton US Holdings, Inc. (6)(7)(8)	Auto Components	8.44% (S +CSA + 4.00%)	4/6/2028		9,915,803		9,915,680		9,596,663		1.9	%
Aveanna Healthcare LLC (4)(6)(8)	Healthcare Providers and Services	8.18% (S +CSA + 3.75%)	6/30/2028		9,561,012		9,495,213		9,378,779		1.8	%
BarBri Holdings, Inc (7)	Professional Services	9.32% (S + 5.00%)	4/30/2030		7,213,795		7,213,795		7,239,044		1.4	%
Barracuda Networks, Inc. (6)(8)	Software	8.78% (S + 4.50%)	8/15/2029		10,267,045		10,074,930		8,556,299		1.7	%
Bending Spoons Operations Spa (4)(7)(8)	Interactive Media Services	9.56% (S + 5.25%)	2/19/2031		7,406,250		7,287,999		7,466,426		1.5	%
B'laster Holdings, LLC (7)	Chemicals	9.07% (S + 4.75%)	10/25/2029		1,625,167		1,611,038		1,612,978		0.3	%
B'laster Holdings, LLC (7)	Chemicals	9.03% (S + 4.75%)	10/25/2029		4,366,834		4,296,307		4,257,663		0.8	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
Boxer Parent Company Inc. (6)(8)	Software	7.33% (S + 3.00%)	7/30/2031		9,925,125		9,886,745		9,874,854		2.0	%
Carriage Purchaser, Inc. (7)(8)	Road and Rail	8.33% (S + 4.00%)	10/2/2028		8,749,554		8,752,273		8,788,927		1.7	%
Carroll County Energy LLC (6)	Independent Power and Renewable Electricity Producers	7.55% (S + 3.25%)	6/24/2031		6,323,848		6,303,844		6,353,886		1.3	%
Castle US Holding Corporation (7)	Professional Services	10.33% (S + 6.00% incl. 1.00% PIK)	4/29/2030		1,068,669		1,018,951		1,075,348		0.2	%
Castle US Holding Corporation (7)	Professional Services	8.84% (S +CSA + 4.25%)	5/31/2030		1,758,120		1,758,120		968,065		0.2	%
Castle US Holding Corporation (6)(7)	Professional Services	9.09% (S +CSA + 4.50%)	5/31/2030		5,375,874		5,375,874		2,935,227		0.6	%
Cengage Learning, Inc. (6)(8)	Diversified Consumer Services	7.82% (S + 3.50%)	3/24/2031		5,940,150		5,903,388		5,961,297		1.2	%
Century De Buyer LLC (8)	Media	7.78% (S + 3.50%)	10/30/2030		1,980,050		1,965,206		1,993,663		0.4	%
Congruex Group LLC (7)	Construction and Engineering	10.93% (S + 6.50% incl. 5.00% PIK)	4/28/2029		6,370,983		6,278,834		5,583,911		1.1	%
Connectwise LLC (6)	IT Services	8.06% (S +CSA + 3.50%)	9/29/2028		5,738,020		5,734,343		5,774,485		1.1	%
Corelogic, Inc. (6)(8)	Internet Software and Services	7.94% (S +CSA + 3.50%)	6/29/2028		9,669,309		9,623,285		9,583,204		1.9	%
CP Atlas Buyer, Inc (6)(8)	Building Products	8.18% (S +CSA + 3.75%)	11/23/2027		6,716,844		6,668,639		6,709,153		1.3	%
CPM Holdings, Inc. (6)(8)	Machinery	8.82% (S + 4.50%)	9/27/2028		7,929,250		7,890,858		7,777,484		1.5	%
Creation Technologies Inc. (4)(6)(7)(8)	Electronic Equipment, Instruments and Components	10.05% (S +CSA + 5.50%)	10/5/2028		9,791,424		9,621,465		9,693,510		1.9	%
Crown Subsea Communications Holding, Inc. (6)(8)	Construction and Engineering	8.33% (S + 4.00%)	1/30/2031		9,375,425		9,345,568		9,447,709		1.9	%
Deerfield Dakota Holding, LLC (6)(8)	Diversified Financial Services	8.05%(S+3.75%)	4/9/2027		4,750,000		4,730,000		4,626,643		0.9	%
Delta Topco, Inc. (6)	IT Services	7.07% (S + 2.75%)	11/30/2029		9,900,250		9,884,603		9,840,997		1.9	%
DIRECTV Financing, LLC (4)(8)	Media	9.54% (S +CSA + 5.00%)	8/2/2027		671,657		669,384		675,069		0.1	%
Dwyer Instruments, LLC (7)	Electronic Equipment, Instruments and Components	9.05% (S + 4.75%)	7/21/2029		8,268,307		8,268,307		8,228,235		1.6	%
Dwyer Instruments, LLC (7)(11)	Electronic Equipment, Instruments and Components	9.17% (S + 3.75%)	7/21/2029		165,613		155,113		166,092		0.0	%
ECL Entertainment, LLC (7)	Hotels, Restaurants and Leisure	7.83% (S + 3.50%)	8/30/2030		4,925,250		4,848,694		4,932,170		1.0	%
ECO Material Tech INC (8)	Construction Materials	7.47% (S + 3.25%)	2/12/2032		1,500,000		1,496,947		1,510,943		0.3	%
Edgewater Generation, L.L.C. (8)	Independent Power and Renewable Electricity Producers	7.33% (S + 3.00%)	8/1/2030		3,866,813		3,915,410		3,886,495		0.8	%
EFS Cogen Holdings I, LLC (6)(7)(8)	Independent Power and Renewable Electricity Producers	7.80% (S + 3.50%)	10/3/2031		6,571,419		6,575,423		6,609,073		1.3	%
Endurance International Group, Inc., The (6)(8)	Professional Services	7.93% (S +CSA + 3.50%)	2/10/2028		4,567,236		4,533,363		2,472,017		0.5	%
Enverus Holdings, Inc. (7)(12)	Software	9.82% (S + 5.50%)	12/22/2029		34,215		28,901		34,972		0.0	%
Enverus Holdings, Inc. (7)	Software	9.83% (S + 5.50%)	12/22/2029		6,330,734		6,257,598		6,330,734		1.3	%
EP Purchaser, LLC (6)(8)	Professional Services	9.06% (S +CSA + 4.50%)	11/6/2028		10,086,118		10,041,269		9,960,041		2.0	%
Everest SubBidCo (4)(7)(8)	IT Services	8.78% (S + 4.50%)	12/8/2031		2,646,717		2,622,311		2,600,399		0.5	%
Everest SubBidCo (4)(7)(8)	IT Services	8.78% (S + 4.50%)	12/8/2031		5,313,333		5,264,000		5,220,350		1.0	%
First Brands Group, LLC (6)(8)	Auto Components	9.54% (S +CSA + 5.00%)	3/30/2027		8,583,892		8,590,537		8,133,538		1.6	%
Flash Charm, Inc. (6)(8)	IT Services	7.78%(S+3.50%)	3/2/2028		9,577,875		9,562,100		9,008,183		1.8	%
Flexera Software LLC (7)	Software	7.31%(S+3.00%)	3/3/2028		4,783,205		4,789,114		4,792,604		0.9	%
Forest City Enterprises, L.P. (8)	Real Estate Management and Development	7.94% (S +CSA + 3.50%)	12/8/2025		4,000,000		3,926,414		3,888,260		0.8	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
Fortis 333 Inc (8)	Chemicals	7.80% (S + 3.50%)	3/29/2032		3,000,000		2,993,079		3,003,285		0.6	%
Frozen Bakery Acquisition LLC (7)	Food Products	9.18% (S +CSA + 4.75%)	7/9/2029		6,467,500		6,412,102		6,467,500		1.3	%
Fugue Finance, LLC (4)(8)	Diversified Consumer Services	7.58% (S + 3.25%)	1/9/2032		5,880,848		5,830,631		5,923,131		1.2	%
Gainwell Acquisition Corp. (6)(8)	Healthcare Providers and Services	8.40% (S +CSA + 4.00%)	10/1/2027		8,651,903		8,571,554		8,355,576		1.7	%
Galway Borrower LLC (7)(13)	Insurance	8.78% (S + 4.50%)	9/29/2028		720,220		688,796		731,320		0.1	%
Galway Borrower LLC (7)(14)	Insurance	8.80% (S + 4.50%)	9/29/2028		175,509		172,354		172,319		0.0	%
Gategroup Fin Luxembourg SA (4)(8)	Commercial Services and Supplies	8.56% (S + 4.50%)	5/28/2032		3,000,000		2,985,000		3,010,320		0.6	%
GC Ferry Acquisition Inc (4)(6)(8)	Diversified Financial Services	7.83% (S + 3.50%)	6/2/2032		5,979,167		5,889,479		5,864,779		1.2	%
Genuine Financial Holdings LLC (6)(8)	Professional Services	7.58% (S + 3.25%)	9/27/2030		10,332,913		10,287,975		9,847,266		1.9	%
Global Medical Response, Inc. (6)	Healthcare Providers and Services	9.83% (S + 5.50% incl. 0.75% PIK)	10/31/2028		9,019,256		9,004,634		9,043,067		1.8	%
Gloves Buyer Inc (6)(8)	Industrial Conglomerates	8.32% (S + 4.00%)	1/16/2032		8,000,000		7,960,967		7,860,000		1.6	%
Great Outdoors Group, LLC (8)	Specialty Retail	7.58% (S + 3.25%)	1/23/2032		4,936,731		4,927,536		4,937,521		1.0	%
Grinding Media Inc. (Molycop Ltd.) (6)(7)(8)	Metals and Mining	7.83% (S + 3.50%)	10/12/2028		10,725,460		10,702,578		10,658,426		2.1	%
HAH Group Holding Company LLC (6)(8)	Healthcare Providers and Services	9.33% (S + 5.00%)	9/24/2031		10,161,546		10,050,266		9,898,413		2.0	%
Help/Systems Holdings, Inc. (6)(8)	Software	8.38% (S +CSA + 4.00%)	11/19/2026		6,673,231		6,661,842		6,374,838		1.3	%
Highline Aftermarket Acquisition, LLC (8)	Automotive	7.83% (S + 3.50%)	2/13/2030		3,980,000		3,971,649		4,009,850		0.8	%
Holding Socotec (4)(6)	Construction and Engineering	8.04% (S + 3.75%)	6/30/2028		3,960,000		3,950,773		3,979,800		0.8	%
HP PHRG BORROWER, LLC (6)(8)	Household Durables	8.33% (S + 4.00%)	2/20/2032		10,000,000		9,903,183		9,975,000		2.0	%
Hunter Douglas Inc (8)	Household Durables	7.55% (S + 3.25%)	1/16/2032		1,990,000		1,981,052		1,985,443		0.4	%
Hunterstown Generation, LLC (8)	Independent Power and Renewable Electricity Producers	7.80% (S + 3.50%)	11/6/2031		2,977,500		2,964,747		2,982,026		0.6	%
Hyperion Refinance S.a.r.l. (4)(8)	Insurance	7.83% (S + 3.50%)	4/18/2030		1,989,822		1,989,822		2,002,945		0.4	%
Idemia Group S.A.S. (4)(6)(8)	Internet Software and Services	8.55% (S + 4.25%)	9/30/2028		6,912,500		6,931,061		6,938,422		1.4	%
IMA Financial Group, Inc. (7)	Insurance	7.33% (S + 3.00%)	11/1/2028		4,838,656		4,827,671		4,843,712		1.0	%
IMC Financing LLC (8)	Diversified Financial Services	7.81% (S + 3.50%)	6/2/2032		2,000,000		1,990,071		2,015,000		0.4	%
Inception Finco S.a r.l. (4)(6)(7)	Healthcare Providers and Services	8.05% (S + 3.75%)	4/9/2031		5,949,950		5,932,395		6,009,479		1.2	%
Ineos Quattro Holdings UK Limited (4)(6)	Chemicals	8.68% (S +CSA + 4.25%)	4/2/2029		2,977,387		2,987,134		2,780,135		0.6	%
Ineos Quattro Holdings UK Limited (4)(8)	Chemicals	8.58% (S + 4.25%)	10/7/2031		3,990,000		4,004,601		3,655,838		0.7	%
Ineos US Finance LLC (4)(8)	Chemicals	7.33% (S + 3.00%)	2/7/2031		3,960,075		3,928,345		3,787,812		0.7	%
Infinite Bidco, LLC	Electronic Equipment, Instruments and Components	10.57% (S + 6.25%)	3/2/2028		2,925,000		2,922,046		2,851,875		0.6	%
Infinite Bidco, LLC (6)(8)	Electronic Equipment, Instruments and Components	8.29% (S +CSA + 3.75%)	3/2/2028		6,249,677		6,226,209		5,916,350		1.2	%
Inmar, Inc. (6)(7)(8)	Professional Services	8.80%(S+4.50%)	10/30/2031		9,656,067		9,584,627		9,748,621		1.9	%
International Entertainment JJCo 3 Limited (4)(8)	Entertainment	8.03% (S + 3.75%)	4/19/2032		3,000,000		2,985,448		3,015,000		0.6	%
Invenergy Thermal Operating I LLC (7)(8)	Independent Power and Renewable Electricity Producers	7.82% (S +CSA + 3.50%)	5/6/2032		400,000		396,069		403,550		0.1	%
Invenergy Thermal Operating I LLC (7)(8)	Independent Power and Renewable Electricity Producers	7.82% (S +CSA + 3.50%)	5/6/2032		6,000,000		5,941,030		6,053,250		1.2	%
Ivanti Software, Inc. (6)(8)	Software	10.02% (S + 5.75%)	6/1/2029		2,396,704		2,373,416		2,471,601		0.5	%
Ivanti Software, Inc. (6)(8)	Software	9.02% (S + 4.75%)	6/1/2029		9,942,146		9,942,146		8,292,396		1.6	%
IVC Acquisition, Ltd. (4)(6)(8)	Professional Services	8.05% (S + 3.75%)	12/12/2028		7,521,769		7,454,013		7,569,984		1.5	%
Jack Ohio Finance LLC (7)	Hotels, Restaurants and Leisure	8.33% (S + 4.00%)	1/28/2032		6,982,500		6,968,168		6,958,515		1.4	%
Kleopatra Finco S.a.r.l (4)(8)	Containers and Packaging	9.23% (S +CSA + 4.73%)	2/4/2026		1,915,000		1,915,000		1,776,842		0.4	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
LBM Acquisition, LLC (6)(7)(8)	Building Products	8.16% (S +CSA + 3.75%)	6/6/2031		10,434,289		10,344,933		9,782,145		1.9	%
Lifescan Global Corporation (6)(9)	Healthcare Equipment and Supplies	10.92% (S +CSA + 6.50%)	12/31/2026		3,626,311		3,622,701		2,400,618		0.5	%
Lightstone Holdco LLC (6)(8)	Independent Power and Renewable Electricity Producers	10.03%(S+5.75%)	2/1/2027		13,733,402		13,362,434		13,769,109		2.7	%
Lightstone Holdco LLC (6)(8)	Independent Power and Renewable Electricity Producers	10.03%(S+5.75%)	2/1/2027		776,810		755,833		778,830		0.2	%
LogMeIn, Inc. (6)	IT Services	9.16% (S +CSA + 4.75%)	4/28/2028		4,089,453		4,064,213		1,482,427		0.3	%
LogMeIn, Inc. (6)	IT Services	9.16% (S +CSA + 4.75%)	4/28/2028		4,089,453		4,066,344		3,572,423		0.7	%
Logrhythm, Inc. (7)	IT Services	11.83% (S + 7.50%)	7/2/2029		6,363,636		6,363,636		6,128,755		1.2	%
LSF12 Crown US Commercial Bidco, LLC (6)(8)	Construction and Engineering	8.57% (S + 4.25%)	12/2/2031		10,000,000		9,989,872		10,065,650		2.0	%
Magenta Security Holdings LLC (6)	Software	10.53% (S + 6.25%)	7/27/2028		949,963		940,384		963,025		0.2	%
Magenta Security Holdings LLC (6)	Software	11.29% (S +CSA + 6.75%)	7/27/2028		641,850		639,006		539,334		0.1	%
Magenta Security Holdings LLC (6)	Software	11.54% (S + CSA + 7.00% incl. 5.50% PIK)	7/27/2028		6,257,796		6,242,954		1,543,611		0.3	%
Magenta Security Holdings LLC (6)	Software	11.54% (S +CSA + 7.00%)	7/27/2028		1,174,081		1,170,414		555,927		0.1	%
Majco LLC (7)(15)	Automotive	9.44% (S + 5.00%)	3/11/2032		3,816,454		3,804,848		3,829,925		0.8	%
Maverick 1, LLC	Software	8.79% (S +CSA + 4.25%)	5/18/2028		4,900,000		4,745,573		4,921,438		1.0	%
Medical Solutions Holdings, Inc. (6)(7)(8)	Healthcare Providers and Services	7.88% (S +CSA + 3.50%)	11/1/2028		7,796,266		7,581,728		4,201,057		0.8	%
Michael Baker International, LLC (7)(8)	Construction and Engineering	8.28% (S + 4.00%)	12/1/2028		9,025,953		8,992,374		9,076,724		1.8	%
Micro Holding Corp. (6)(8)	IT Services	8.58% (S + 4.25%)	5/3/2028		5,754,523		5,330,895		5,409,252		1.1	%
Micro Holding Corp. (6)(8)	IT Services	8.58%(S+4.25%)	12/31/2031		3,894,758		3,821,520		3,394,535		0.7	%
Minotaur Acquisition, Inc. (7)	Diversified Financial Services	9.33% (S + 5.00%)	5/10/2030		6,904,429		6,904,429		6,910,849		1.4	%
Minotaur Acquisition, Inc.	Diversified Financial Services	9.33% (S + 5.00%)	5/10/2030		1,136,220		1,136,220		1,134,743		0.2	%
Momentive Performance Materials Inc. (6)(8)	Chemicals	8.33% (S + 4.00%)	3/29/2028		5,409,090		5,317,306		5,436,135		1.1	%
MRI Software LLC (7)(16)	Software	9.05% (S + 4.75%)	2/10/2027		35,354		33,536		35,354		0.0	%
MRI Software LLC (7)	Software	9.05% (S + 4.75%)	2/10/2027		6,310,756		6,279,495		6,287,091		1.2	%
NAPA Management Services Corporation (6)(8)	Healthcare Providers and Services	9.68% (S +CSA + 5.25%)	2/23/2029		9,711,978		9,598,968		7,866,702		1.6	%
Natgasoline LLC (7)(8)	Chemicals	9.83% (S + 5.50%)	3/25/2030		6,923,879		6,827,571		6,897,914		1.4	%
National Mentor Holdings, Inc. (6)(8)	Healthcare Providers and Services	8.15% (S +CSA + 3.75%)	2/18/2028		8,901,743		8,892,132		8,623,563		1.7	%
National Mentor Holdings, Inc. (6)(8)	Healthcare Providers and Services	8.15% (S +CSA + 3.75%)	2/18/2028		291,993		291,650		282,869		0.1	%
New WPCC Parent, LLC (6)	Healthcare Providers and Services	13.80% (S + 9.50% cash)/S + 11.50% incl. 8.00% PIK)	5/9/2030		1,223,831		1,223,831		1,128,984		0.2	%
Nexus Buyer LLC (6)(8)	Diversified Financial Services	7.83% (S + 3.50%)	7/31/2031		9,925,187		9,725,103		9,965,285		2.0	%
Nielsen Consumer Inc. (6)(8)	Media	7.83% (S + 3.50%)	3/6/2028		12,686,309		12,190,546		12,714,092		2.5	%
Northstar Group Services, Inc. (7)(8)	Construction and Engineering	8.88% (S + 4.75%)	5/8/2030		11,246,425		11,251,749		11,328,467		2.2	%
NSM Top Holdings Corp. (6)(8)	Healthcare Equipment and Supplies	9.15% (S +CSA + 4.75%)	5/14/2029		6,808,686		6,790,899		6,857,028		1.4	%
Nvent Electric Public Limited Company (4)(8)	Electrical Equipment	7.83% (S + 3.50%)	1/30/2032		2,000,000		1,990,823		2,015,130		0.4	%
Ontario Gaming GTA Limited Partnership (4)(6)(8)	Hotels, Restaurants and Leisure	8.55% (S + 4.25%)	8/1/2030		8,300,349		8,301,109		8,231,623		1.6	%
Optimizely North America Inc. (7)	Software	9.33% (S + 5.00%)	10/30/2031		4,530,313		4,525,729		4,519,170		0.9	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
Orchid Merger Sub II, LLC (6)	Software	9.23% (S +CSA + 4.75%)	7/27/2027		3,695,997		3,612,444		1,888,026		0.4	%
Oregon Clean Energy, LLC (6)	Independent Power and Renewable Electricity Producers	7.80% (S + 3.50%)	7/12/2030		2,201,990		2,193,144		2,223,735		0.4	%
Osmosis Buyer Limited (6)(7)	Food Products	7.32% (S + 3.00%)	7/31/2028		8,493,235		8,497,469		8,490,772		1.7	%
Outcomes Group Holdings, Inc. (6)(8)	Healthcare Providers and Services	8.08% (S + 3.75%)	5/6/2031		4,504,585		4,487,620		4,536,951		0.9	%
Padagis, LLC (6)(8)	Pharmaceuticals	9.27% (S +CSA + 4.75%)	7/31/2028		8,983,493		8,923,471		8,444,484		1.7	%
Pasadena Performance Products LLC (8)	Independent Power and Renewable Electricity Producers	7.80% (S + 3.50%)	3/1/2032		3,990,000		3,970,798		4,018,269		0.8	%
Patriot Growth Insurance Services, LLC (7)	Insurance	9.45% (S +CSA + 5.00%)	10/16/2028		1,994,875		1,985,499		1,994,875		0.4	%
Patriot Growth Insurance Services, LLC (7)(17)	Insurance	9.30% (S + 5.00%)	10/16/2028		4,191,368		4,136,679		4,195,699		0.8	%
Peraton Corp. (7)(8)	Aerospace and Defense	8.18% (S +CSA + 3.75%)	2/1/2028		8,640,009		8,646,024		7,651,808		1.5	%
Petco Health and Wellness Company Inc (4)(6)	Specialty Retail	7.81% (S +CSA + 3.25%)	3/3/2028		4,000,000		3,741,500		3,695,360		0.7	%
Plano Holdco, Inc. (8)	Diversified Financial Services	7.80% (S + 3.50%)	8/30/2031		4,987,500		4,965,880		4,750,594		0.9	%
Pluto Acquisition I, Inc. (6)	Healthcare Providers and Services	9.82% (S + 5.50%)	6/20/2028		1,331,311		1,331,311		1,351,280		0.3	%
PMHC II Inc. (6)(8)	Chemicals	8.64% (S +CSA + 4.25%)	4/23/2029		10,860,007		10,717,984		9,512,280		1.9	%
Precisely Software Incorporated (6)(8)	IT Services	8.54% (S +CSA + 4.00%)	4/24/2028		10,609,655		10,594,986		10,100,391		2.0	%
Pretium PKG Holdings, Inc.	Containers and Packaging	9.26% (S + 5.00% incl. 1.25% PIK)	10/2/2028		1,530,506		1,492,687		1,531,325		0.3	%
Pretium PKG Holdings, Inc. (6)(7)	Containers and Packaging	8.86% (S + 4.60% incl. 0.70% PIK)	10/2/2028		5,620,441		5,590,259		2,739,965		0.5	%
Project Alpha Intermediate Holding, Inc. (6)(8)	Software	7.55% (S + 3.25%)	10/26/2030		7,885,400		7,798,151		7,931,411		1.6	%
PROOFPOINT INC (8)	Software	7.33% (S + 3.00%)	8/31/2028		3,979,849		3,977,515		3,986,973		0.8	%
PT Intermediate Holdings III, LLC (7)	Machinery	9.30% (S + 5.00% incl. 1.75% PIK)	4/9/2030		9,878,494		9,830,326		9,852,082		2.0	%
PVKG Investment Holdings Inc. (6)(7)	IT Services	8.61% (S + 4.25%)	6/4/2030		1,737,165		1,705,036		1,072,699		0.2	%
Radiology Partners Inc (6)(8)	Healthcare Providers and Services	8.80% (S + 4.50%)	6/25/2032		8,000,000		7,920,000		7,945,000		1.6	%
RC Buyer, Inc. (8)	Auto Components	7.94% (S +CSA + 3.50%)	7/28/2028		2,010,009		2,008,827		1,971,296		0.4	%
RealPage, Inc. (6)	Real Estate Management and Development	8.05% (S + 3.75%)	4/24/2028		5,985,000		5,961,090		6,002,027		1.2	%
RealTruck Group, Inc.	Auto Components	9.44% (S +CSA + 5.00%)	1/31/2028		1,975,000		1,943,509		1,806,138		0.4	%
RealTruck Group, Inc. (6)	Auto Components	8.19% (S +CSA + 3.50%)	1/20/2028		6,803,050		6,802,403		6,115,091		1.2	%
Recovery Solutions Parent, LLC	Healthcare Providers and Services	11.80% (S + 7.50/S + 8.50% incl. 5.00% PIK)	1/28/2030		2,378,029		2,378,029		2,360,193		0.5	%
Red Planet Borrower, LLC (6)(8)	Internet Software and Services	9.58% (S + 5.25%)	10/2/2028		2,593,500		2,525,291		2,609,165		0.5	%
Red Planet Borrower, LLC (6)(8)	Internet Software and Services	8.18% (S +CSA + 3.75%)	10/2/2028		10,407,801		10,349,952		10,302,630		2.0	%
Redstone Holdco 2 LP (6)(7)	IT Services	9.29% (S +CSA + 4.75%)	4/14/2028		4,892,258		4,876,494		2,666,281		0.5	%
Renaissance Holding Corp. (6)(8)	Software	8.28% (S + 4.00%)	4/5/2030		11,556,799		11,442,354		10,527,493		2.1	%
Rocket Software, Inc. (6)(8)	Software	8.58% (S + 4.25%)	11/28/2028		12,167,970		11,985,508		12,209,949		2.4	%
Rohm Holding GmbH (4)(6)(7)	Chemicals	9.74% (S + 5.50% incl. 0.25bp PIK)	1/31/2029		8,645,527		8,541,062		8,353,740		1.7	%
Rohm Holding GmbH (4)(8)	Chemicals	9.74% (S + 5.50% incl. 0.25bp PIK)	1/31/2029		1,978,349		1,975,049		1,911,580		0.4	%
Ryan, LLC (7)	Professional Services	7.83% (S + 3.50%)	11/8/2030		5,335,052		5,258,116		5,348,816		1.1	%
Sitel Group (4)	IT Services	8.19% (S +CSA + 3.75%)	8/28/2028		2,969,152		2,376,620		1,643,396		0.3	%
Solina Group Services SAS (4)(8)	Food products	7.57% (S + 3.25%)	3/12/2029		1,995,000		1,995,000		2,009,035		0.4	%
Sovos Compliance, LLC (7)	Software	8.33% (S + 4.00%)	8/13/2029		3,863,530		3,863,084		3,887,137		0.8	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>Net Assets
Specialty Building Products Holdings, LLC (6)(7)(8)	Building Products	8.18% (S +CSA + 3.75%)	10/5/2028		9,675,000		9,669,121		9,269,859		1.8	%
Star Holding LLC (8)	Energy Equipment and Services	8.83% (S + 4.50%)	7/31/2031		3,970,000		3,978,864		3,795,082		0.8	%
Starlight Parent LLC (8)	Software	8.26% (S + 4.00%)	4/16/2032		4,000,000		3,883,307		3,920,840		0.8	%
Stepstone Group MidCo 2 GmbH, The (4)(6)(8)	Interactive Media Services	8.63% (S + 4.50%)	12/4/2031		10,000,000		9,904,394		9,725,000		1.9	%
Summer BC Holdco B LLC (4)(6)(7)(8)	Media	9.56% (S +CSA + 5.00%)	2/12/2029		11,734,274		11,676,594		11,807,613		2.3	%
Tank Holding Corp.	Containers and Packaging	10.18% (S +CSA + 5.75%)	3/31/2028		2,449,495		2,416,349		2,336,965		0.5	%
Tank Holding Corp.	Containers and Packaging	10.43% (S +CSA + 6.00%)	3/31/2028		2,052,750		2,026,312		1,954,608		0.4	%
Tank Holding Corp.	Containers and Packaging	10.42% (S +CSA + 6.00%)	3/31/2028		889,793		878,766		847,252		0.2	%
TCP Sunbelt Acquisition Co. (6)(8)	Electronic Equipment, Instruments and Components	8.58% (S + 4.25%)	10/16/2031		9,950,000		9,922,214		9,987,313		2.0	%
The E.W. Scripps Company (4)(6)	Media	10.18% (S +CSA + 5.75%)	6/30/2028		5,806,440		5,432,206		5,641,914		1.1	%
Thryv, Inc. (4)(6)	Professional Services	11.08% (S + 6.75%)	5/1/2029		5,600,000		5,554,837		5,631,528		1.1	%
TMC Buyer, Inc. (6)(8)	Construction and Engineering	9.03% (S + 5.00%)	11/1/2030		6,571,875		6,527,192		6,600,283		1.3	%
Tosca Services, LLC (8)	Containers and Packaging	9.82% (S + 5.50%)	11/30/2028		1,372,991		1,372,991		1,398,735		0.3	%
Tosca Services, LLC (6)	Containers and Packaging	9.17% (S + CSA + 4.75% incl. 3.25% PIK)	11/30/2028		6,967,041		6,937,800		6,268,595		1.2	%
Transnetwork LLC (7)	Diversified Financial Services	9.05% (S + 4.75%)	12/29/2030		5,122,000		5,049,178		5,144,434		1.0	%
U.S. Renal Care, Inc. (6)(7)(8)	Healthcare Providers and Services	9.44% (S +CSA + 5.00%)	6/20/2028		7,718,802		7,657,294		7,326,417		1.5	%
Univision Communications Inc (8)	Media	8.55% (S + 4.25%)	6/25/2029		1,989,744		1,975,393		1,986,431		0.4	%
US Fertility Enterprises, LLC (6)(8)	Healthcare Providers and Services	8.80% (S + 4.50%)	10/11/2031		4,758,696		4,716,174		4,794,386		0.9	%
US Fertility Enterprises, LLC (6)(8)	Healthcare Providers and Services	8.82% (S + 4.50%)	10/10/2031		217,391		215,416		219,022		0.0	%
US Radiology Specialists, Inc. (6)(8)	Healthcare Providers and Services	9.05% (S + 4.75%)	12/15/2027		12,388,094		12,348,075		12,430,709		2.5	%
USIC Holdings, Inc. (7)	Construction and Engineering	9.83% (S + 5.50%)	9/10/2031		2,516,354		2,494,633		2,506,792		0.5	%
USIC Holdings, Inc. (7)(18)	Construction and Engineering	9.83% (S + 5.50%)	9/10/2031		50,377		50,377		50,273		0.0	%
USIC Holdings, Inc. (7)(19)	Construction and Engineering	9.58% (S + 5.25%)	9/10/2031		147,142		147,142		146,949		0.0	%
Veracode (6)(8)	Software	8.88% (S +CSA + 4.50%)	4/20/2029		8,558,000		8,535,376		5,818,370		1.2	%
Verifone Systems Inc (6)	Commercial Services and Supplies	10.21% (S +CSA + 5.50%)	8/18/2028		8,128,384		8,128,384		7,628,489		1.5	%
Vocus Group (4)(8)	Diversified Telecommunication Services	8.09% (S +CSA + 3.50%)	7/20/2028		1,945,000		1,934,232		1,955,542		0.4	%
WarHorse Gaming, LLC	Hotels, Restaurants and Leisure	13.48% (S +CSA + 9.25%)	6/30/2028		4,952,519		4,793,182		5,163,001		1.0	%
Waterbridge NDB Operating LLC (6)(8)	Energy Equipment and Services	8.30% (S + 4.00%)	5/10/2029		9,925,000		9,920,949		9,937,406		2.0	%
Watlow Electric Manufacturing Company (8)	Electrical Equipment	7.28% (S + 3.00%)	3/2/2028		3,748,571		3,748,028		3,765,964		0.7	%
Xplor T1, LLC (7)	Professional Services	7.80% (S + 3.50%)	6/24/2031		7,195,625		7,166,267		7,222,609		1.4	%
Zayo Group Holdings, Inc. (6)(8)	Diversified Telecommunication Services	8.58% (S + 4.25%)	3/9/2027		4,956,463		4,747,135		4,773,173		0.9	%
Zayo Group Holdings, Inc. (6)	Diversified Telecommunication Services	7.44%(S+CSA+3.00%)	3/9/2027		3,000,000		2,886,827		2,861,385		0.6	%
Total First Lien Senior Secured					1,162,089,663		1,152,451,190		1,104,986,930		218.7	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>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	11.84% (S +CSA + 7.25%)	6/4/2029		2,750,000		2,766,809		2,034,999		0.4	%
ARC Falcon I Inc. (8)	Chemicals	11.43% (S +CSA + 7.00%)	9/24/2029		2,427,315		2,350,770		2,354,495		0.5	%
Aruba Investments, Inc. (6)(8)	Chemicals	12.18% (S +CSA + 7.75%)	10/27/2028		3,350,000		3,324,989		3,168,547		0.6	%
Asurion, LLC (6)(8)	Insurance	9.69% (S +CSA + 5.25%)	1/19/2029		9,000,000		8,875,678		8,373,510		1.6	%
Barracuda Networks, Inc.	Software	11.28% (S + 7.00%)	8/15/2030		4,000,000		3,894,964		2,485,000		0.5	%
Delta Topco, Inc. (6)	IT Services	9.57% (S + 5.25%)	12/24/2030		4,500,000		4,481,305		4,532,333		0.9	%
Edelman Financial Engines Center, LLC, The (8)	Diversified Financial Services	9.58% (S + 5.25%)	10/20/2028		2,500,000		2,495,813		2,513,438		0.5	%
Ellucian Holdings Inc.	Software	9.08% (S + 4.75%)	11/15/2032		2,000,000		1,996,120		2,045,000		0.4	%
First Brands Group, LLC	Auto Components	13.04% (S +CSA + 8.50%)	3/24/2028		3,000,000		2,989,791		2,715,000		0.5	%
Flash Charm, Inc.	IT Services	11.18% (S +CSA + 6.75%)	2/5/2029		3,353,659		3,365,593		2,976,372		0.6	%
Gainwell Acquisition Corp.	Healthcare Providers and Services	12.38% (S +CSA + 8.00%)	10/2/2028		2,400,000		2,292,107		2,028,000		0.4	%
Gainwell Acquisition Corp.	Healthcare Providers and Services	12.38% (S +CSA + 8.00%)	10/2/2028		3,000,000		2,971,024		2,535,000		0.5	%
Help/Systems Holdings, Inc.	Software	11.13% (S +CSA + 6.75%)	11/19/2027		3,656,217		3,657,717		2,769,584		0.5	%
Infinite Bidco, LLC (6)(8)	Electronic Equipment, Instruments and Components	11.54% (S +CSA + 7.00%)	2/24/2029		2,729,999		2,728,173		2,393,881		0.5	%
Ivanti Software, Inc.	Software	11.78% (S +CSA + 7.25%)	6/1/2029		3,030,000		3,030,000		1,833,150		0.4	%
Mitchell International, Inc. (6)(8)	Software	9.58% (S + 5.25%)	6/7/2032		7,500,000		7,468,674		7,408,125		1.5	%
Nexus Buyer LLC	Diversified Financial Services	10.68% (S +CSA + 6.25%)	11/1/2029		5,000,000		4,961,447		4,979,450		1.0	%
OneDigital Borrower LLC (8)	Insurance	9.58% (S + 5.25%)	7/2/2032		5,000,000		4,979,529		5,018,750		1.0	%
Peraton Corp.	Aerospace and Defense	12.18% (S +CSA + 7.75%)	2/26/2029		2,898,876		2,939,059		2,066,899		0.4	%
Pretium PKG Holdings, Inc. (6)	Containers and Packaging	11.31% (S +CSA + 6.75%)	9/30/2029		2,000,000		1,988,114		347,000		0.1	%
Project Boost Purchaser, LLC (8)	Professional Services	9.55% (S + 5.25%)	7/16/2032		2,500,000		2,488,948		2,526,038		0.5	%
Vision Solutions, Inc. (8)	IT Services	11.79% (S +CSA + 7.25%)	4/23/2029		5,500,000		5,449,005		5,123,030		1.0	%
Total Second Lien Senior Secured					82,096,066		81,495,629		72,227,601		14.3	%
Corporate Bonds
Altice Financing S.A. (4)	Diversified Telecommunication Services	5.00%	1/15/2028		3,000,000		2,737,188		2,276,250		0.5	%
KOBE US Midco 2 Inc	Chemicals	9.25% Cash/10.00% PIK	11/1/2026		2,309,462		2,303,371		2,061,195		0.4	%
Total Corporate Bonds					5,309,462		5,040,559		4,337,445		0.9	%
Total Debt Investments				$	1,249,495,191	$	1,238,987,378	$	1,181,551,976		233.9	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

Portfolio Company(3)	Industry	Interest Rate	Maturity Date	Principal / Par		Amortized Cost(1)(5)		Fair Value		Percentage of Net Assets
CLO Mezzanine(2)
APID 2013-12A ER (4)	Structured Note	9.92% (S + 5.40%)	4/15/2031		2,425,000		2,427,194		2,406,198		0.6	%
APID 2016-24A DR (4)	Structured Note	10.33% (S +CSA + 5.80%)	10/20/2030		2,200,000		2,147,173		2,187,770		0.4	%
BABSN 2022-2A ER (4)	Structured Note	11.16% (S + 6.90%)	7/15/2039		3,000,000		3,057,478		3,051,180		0.6	%
CBAMR 2018-8A E1R (4)	Structured Note	11.66% (S + 7.40%)	7/15/2037		1,000,000		1,021,409		1,013,946		0.2	%
CGMS 2020-2A ER (4)	Structured Note	13.07% (S + 8.53%)	1/25/2035		4,000,000		3,912,534		3,730,301		0.7	%
CIFC 2023-2A E (4)	Structured Note	12.24% (S + 7.97%)	1/21/2037		2,700,000		2,764,055		2,744,500		0.5	%
ELM20 2022-7A ER (4)	Structured Note	10.28% (S + 6.00%)	1/17/2037		2,400,000		2,434,177		2,393,987		0.5	%
ELMW8 2021-1X ER (4)	Structured Note	10.52% (S + 6.25%)	4/20/2037		2,250,000		2,295,441		2,271,077		0.4	%
GLM 2020-7A FR (4)	Structured Note	12.28% (S + 7.75%)	4/20/2034		2,000,000		1,918,473		1,968,584		0.4	%
GLM 2021-9A FR (4)	Structured Note	12.73% (S + 8.46%)	4/20/2037		3,000,000		2,918,249		2,990,958		0.6	%
GOST 2024-1A E (4)	Structured Note	10.77% (S + 6.50%)	4/20/2033		2,500,000		2,500,000		2,500,000		0.5	%
HLM 2023-18A E (4)	Structured Note	13.24% (S + 8.97%)	7/20/2036		3,400,000		3,540,106		3,436,967		0.7	%
MORGN 2020-6A F (4)	Structured Note	12.58% (S + 8.04%)	10/23/2034		2,800,000		2,740,057		2,701,173		0.5	%
THAYR 2017-1A ER (4)	Structured Note	13.40% (S +CSA + 8.87%)	4/20/2034		1,300,000		1,270,789		1,201,913		0.2	%
Total CLO Mezzanine					34,975,000		34,947,135		34,598,554		6.8	%
CLO Equity
BABSN 2018-4A SUB (4)	Structured Subordinated Note	NA	10/15/2030		4,000,000		1,249,520		1,221,497		0.2	%
DRSLF 2020-86A SUB (4)	Structured Subordinated Note	NA	7/17/2030		6,000,000		3,551,498		1,771,515		0.4	%
HLM 12A-18 SUB (4)	Structured Subordinated Note	NA	7/18/2031		7,500,000		42,659		48,000		0.0	%
LNGPT 2017-1A SUB (4)	Structured Subordinated Note	NA	1/17/2030		6,358,000		2,094,548		1,124,344		0.2	%
REG12 2019-1A SUB (4)	Structured Subordinated Note	NA	10/15/2032		6,000,000		3,159,484		2,952,849		0.6	%
SPEAK 2017-4A SUB (4)	Structured Subordinated Note	NA	10/26/2034		5,000,000		1,904,457		974,308		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		12,002,166		8,096,713		1.6	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

		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		4,586,465		0.9	%
Mitel Networks	Diversified Telecommunication Services		3,061		30,610		7,683		0.0	%
New WPCC Parent, LLC (6)	Healthcare Providers and Services		62,372		23,390		31,186		0.0	%
New WPCC Parent, LLC	Healthcare Providers and Services		59,068		699,109		354,408		0.1	%
PVKG Investments Holdings Inc	IT Services		89,288		1,258,194		357,152		0.1	%
Recovery Solutions Parent, LLC (6)	Healthcare Providers and Services		98,983		2,229,831		1,435,254		0.3	%
Total Equity Investments			383,333		8,898,160		6,772,148		1.4	%
Total Equity and Other Investments			72,216,333	$	55,847,461	$	49,467,415		9.8	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of June 30, 2025

(Unaudited)

	Number of Shares		Cost		Fair Value			Percentage of<br>Net Assets
Short-Term Investments
Fidelity Investments Money Market Government Portfolio - Institutional Class, 4.27% (6)(7)(10)		27,287,786		27,287,786		27,287,786			5.4	%
Morgan Stanley Liquidity Funds US Dollar Treasury Liquidity Fund - Institutional Class, 4.16% (8)(10)		21,485,627		21,485,627		21,485,627			4.2	%
Total Short-Term Investments		48,773,413		48,773,413		48,773,413			9.6	%
Total Investments	$	1,370,484,937	$	1,343,608,252	$	1,279,792,804			253.3	%
Liabilities in Excess of Other Assets						(774,579,364	)		(153.3	)%
Net Assets					$	505,213,440			100.0	%

• 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.

• 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 June 30, 2025 that have S+CSA as the base rate, the credit spread adjustment ranges from 0.1 bps to 43 bps.

• As of June 30, 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.

• 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 June 30, 2025, 16.6% of the Company’s total assets were in non-qualifying investments.

• As of June 30, 2025, the tax cost of the Company’s investments approximates their amortized cost.

• 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).

• 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).

• 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).

• Loan was on non-accrual status as of June 30, 2025.

• 7-day effective yield as of June 30, 2025.

• Of the $1,197,934 commitment to Dwyer Instruments, LLC, $1,032,321 was unfunded as of June 30, 2025.

• Of the $472,973 commitment to Enverus Holdings, $438,758 was unfunded as of June 30, 2025.

• Of the $4,439,672 commitment to Galway Borrower, LLC, $3,719,452 was unfunded as of June 30, 2025.

• Of the $559,500 commitment to Galway Borrower, LLC, $383,991 was unfunded as of June 30, 2025.

• Of the $4,989,149 commitment to Majco, LLC, $1,172,695 was unfunded as of June 30, 2025.

• Of the $636,370 commitment to MRI Software, LLC, $601,016 was unfunded as of June 30, 2025.

• Of the $4,979,078 commitment to Patriot Growth Insurance Services LLC, $787,710 was unfunded as of June 30, 2025.

• Of the $148,920 commitment to USIC Holdings, Inc., $98,543 was unfunded as of June 30, 2025.

• Of the $321,873 commitment to USIC Holdings, Inc., $174,731 was unfunded as of June 30, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of December 31, 2024

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>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	%

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	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of December 31, 2024

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>Date	Principal / Par		Amortized<br>Cost(1)(5)		Fair Value		Percentage of<br>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	%

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	%

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	%

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	%

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	%

Palmer Square Capital BDC Inc.

Consolidated Schedules of Investments

As of December 31, 2024

Portfolio Company(3)	Industry	Interest Rate	Maturity<br>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	%

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	%

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	%

• 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.

• 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.

• 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.

• 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.

• As of December 31, 2024, the tax cost of the Company’s investments approximates their amortized cost.

• 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).

• 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).

• 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).

• Loan was on non-accrual status as of December 31, 2024.

• 7-day effective yield as of December 31, 2024.

• Of the $759,217.68 commitment to American Rock Salt Company LLC, $571,090.84 was unfunded as of December 31, 2024.

• Of the $323,562.39 commitment to Aptean Inc., $238,414.39 was unfunded as of December 31, 2024.

• Of the $472,972.96 commitment to Enverus Holdings, Inc., $458,884.40 was unfunded as of December 31, 2024.

• Of the $559,500 commitment to Galway Borrower LLC., $512,697.72 was unfunded as of December 31, 2024.

• Of the $4,440,500 commitment to Galway Borrower LLC, $4,360,571 was unfunded as of December 31, 2024.

• Of the $1,583,120 commitment to GS AcquisitionCo, Inc., $1,232,000 was unfunded as of December 31, 2024.

• Of the $636,370 commitment to MRI Software LLC, $601,016.11 was unfunded as of December 31, 2024.

• Of the $4,993,300 commitment to Patriot Growth Insurance Services, LLC, $1,480,000 was unfunded as of December 31, 2024.

• Of the $894,292.50 commitment to Tank Holding Corp., $135,000 was unfunded as of December 31, 2024.

• Of the $149,128.65 commitment to USIC Holdings, Inc., $139,276.09 was unfunded as of December 31, 2024.

• 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.

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 six months ended June 30, 2025 and the years ended December 31, 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.

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 June 30, 2025, the balance of debt issuance costs was $(0.3) million, representing deferred financing costs of $6.3 million less accrued interest of $6.6 million, included in BoA Credit Facility, WF Credit Facility and CLO Transaction (each as defined below), and is presented on a net basis of $461.1 million for the BoA and WF Credit Facilities and $302.2 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 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.

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 June 30, 2025, the Company had one loan on non-accrual status. As of June 30, 2025, loans on non-accrual status represented 0.19% of the total investments at fair value (or 0.27% at amortized cost). As of December 31, 2024, the Company had two loans 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).

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.

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.

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. Prior to the Company’s engagement of Equiniti upon the closing of the IPO, U.S. Bank served as the Company’s transfer agent, distribution paying agent and registrar.

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.

Subsequent to the IPO, 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.

Prior to the IPO, the base management fee was 2.00% 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 Investment Advisor, however, during any period prior to the IPO, agreed to waive its right to receive management fees in excess of an annual rate of 1.75% of the average value of the weighted average total net assets at the end of each of our two most recently completed calendar quarters. The Investment Advisor will not be permitted to recoup any base management fees waived for any period of time prior to the IPO.

Additionally, pursuant to the Advisory Agreement, the Investment Advisor is not entitled to an incentive fee prior to the IPO because the Advisory Agreement provides that no incentive fee is payable prior to the listing of the Company’s common stock on a national securities exchange. Effective upon completion of the IPO, 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 will be calculated and payable quarterly in arrears commencing with the first calendar quarter following the IPO. 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.

Effective upon completion of the IPO, 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 has 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.

Note 4. Investments

The following table presents the composition of the Company’s investment portfolio at amortized cost and fair value as of June 30, 2025 and December 31, 2024:

	June 30, 2025				December 31, 2024
	Ammortized Cost		Fair Value		Ammortized Cost		Fair Value
First-lien senior secured debt	$	1,152,451,190	$	1,104,986,930	$	1,243,362,037	$	1,206,603,630
Second-lien senior secured debt		81,495,629		72,227,601		84,821,531		77,650,130
Corporate Bonds		5,040,559		4,337,445		4,883,315		4,214,315
CLO Mezzanine		34,947,135		34,598,554		37,827,370		38,147,753
CLO Equity		12,002,166		8,096,713		13,029,085		10,003,685
Equity		8,898,160		6,772,148		1,258,194		1,081,497
Short-term investments		48,773,413		48,773,413		69,429,935		69,429,935
Total Investments	$	1,343,608,252	$	1,279,792,804	$	1,454,611,467	$	1,407,130,945

As of June 30, 2025, approximately 17.3% of the long-term investment portfolio at amortized cost and 17.7% 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, 16.6% 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 June 30, 2025 and December 31, 2024, respectively.

The industry composition of investments based on fair value, as a percentage of total investments at fair value, as of June 30, 2025 and December 31, 2024 was as follows:

	June 30, <br>2025			December 31, <br>2024
Software		10.9	%		10.2	%
Healthcare Providers and Services		9.5	%		9.4	%
Professional Services		7.7	%		7.7	%
IT Services		6.3	%		6.7	%
Chemicals		5.5	%		5.1	%
Construction and Engineering		4.6	%		4.5	%
Diversified Financial Services		4.6	%		3.9	%
Insurance		4.2	%		5.0	%
Short-Term Investments		3.8	%		4.9	%
Independent Power and Renewable Electricity Producers		3.7	%		3.3	%
Electronic Equipment, Instruments and Components		3.1	%		2.8	%
Hotels, Restaurants and Leisure		2.9	%		3.1	%
Media		2.7	%		3.1	%
Structured Note		2.7	%		2.7	%
Auto Components		2.4	%		2.2	%
Internet Software and Services		2.3	%		1.9	%
Food Products		2.1	%		1.9	%
Containers and Packaging		2.1	%		1.5	%
Building Products		2.0	%		1.9	%
Machinery		1.8	%		1.8	%
Metals and Mining		1.4	%		1.4	%
Interactive Media Services		1.3	%		0.7	%
Diversified Consumer Services		1.2	%		2.6	%
Commercial Services and Supplies		1.1	%		0.6	%
Energy Equipment and Services		1.1	%		1.7	%
Diversified Telecommunication Services		0.9	%		2.2	%
Household Durables		0.9	%		0.2	%
Industrial Conglomerates		0.9	%		0.7	%
Real Estate Management and Development		0.8	%		0.6	%
Aerospace and Defense		0.8	%		0.7	%
Healthcare Equipment and Supplies		0.7	%		0.6	%
Road and Rail		0.7	%		0.6	%
Specialty Retail		0.7	%		0.5	%
Pharmaceuticals		0.7	%		0.6	%
Structured Subordinated Note		0.6	%		0.7	%
Automotive		0.6	%		—
Electrical Equipment		0.4	%		0.7	%
Entertainment		0.2	%		—
Construction Materials		0.1	%		—
Wireless Telecommunication Services		—			0.7	%
Electric Utilities		—			0.6	%
Total		100.0	%		100.0	%

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 June 30, 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 June 30, 2025:

	Fair Value Hierarchy as of June 30, 2025
Investments:	Level 1		Level 2		Level 3		Total
First-lien senior secured debt	$	—	$	1,104,986,930	$	—	$	1,104,986,930
Second-lien senior secured debt		—		72,227,601		—		72,227,601
Corporate Bonds		—		4,337,445		—		4,337,445
CLO Mezzanine		—		34,598,554		—		34,598,554
CLO Equity		—		8,096,713		—		8,096,713
Equity		—		6,772,148		—		6,772,148
Short Term Investments		48,773,413		—		—		48,773,413
Total Investments	$	48,773,413	$	1,231,019,391	$	—	$	1,279,792,804

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 six months ended June 30, 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 six months ended June 30, 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 June 30, 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 June 30, 2025, the Company’s asset coverage ratio was 166%.

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”).

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. On March 29, 2024, the Company entered into a fourth amendment to the BoA Credit Facility to, among other things: (i) extend the facility maturity date from February 18, 2025 to February 18, 2028; (ii) update arrangements for the calculation of the fee on unused commitments from 1.30% to a range from 0.50% to 1.40%, depending on the amount of commitments utilized, and (iii) payment of an extension fee. As the Company raises additional capital, we may enter into additional credit agreements to expand our borrowing capacity.

Debt obligations under the BoA Credit Facility consisted of the following as of June 30, 2025:

	June 30, 2025
	Aggregate<br>Principal<br>Committed		Outstanding<br>Principal		Amount<br>Available(1)		Net<br>Carrying<br>Value(2)
BoA Credit Facility	$	525,000,000	$	308,625,850	$	216,374,150	$	305,843,823
Total debt	$	525,000,000	$	308,625,850	$	216,374,150	$	305,843,823

• The amount available reflects any limitations related to the BoA Credit Facility’s borrowing base.
• The carrying value of the BoA Credit Facility is presented net of deferred financing costs of $2.9 million and accrued interest of $82.1 thousand.

Debt obligations under the BoA Credit Facility consisted of the following as of December 31, 2024:

	December 31, 2024
	Aggregate<br>Principal<br>Committed		Outstanding<br>Principal		Amount<br> Available(1)		Net<br>Carrying<br>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

• The amount available reflects any limitations related to the BoA Credit Facility’s borrowing base.
• 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 six months ended June 30, 2025 and the year ended December 31, 2024, was $331.6 million $479.1 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 includes fallback language in the event that SOFR becomes unavailable. Interest pursuant to base rate loans is payable quarterly in arrears, and interest pursuant to SOFR loans is payable either quarterly or monthly, as specified by the Borrowers in a loan notice pertaining thereto. The Credit Agreement requires the payment of a commitment fee of 0.50% for unused Commitments until the four-month anniversary of the Second Amendment to the Credit Agreement. Thereafter, the commitment fee is 0.50% on unused Commitments up to 30% of the BoA Credit Facility, and 1.30% on unused Commitments in excess of 30% of the BoA Credit Facility. 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 three and six months ended June 30, 2025 and 2024, the components of interest expense with respect to the BoA Credit Facility were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Interest expense	$	4,917,607		$	9,554,544		$	10,205,886		$	19,685,201
Amortization of debt issuance costs		270,647			270,636			538,320			436,236
Total interest expense	$	5,188,254		$	9,825,180		$	10,744,206		$	20,121,437
Average interest rate		5.73	%		6.72	%		5.73	%		6.73	%

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 December 18, 2023, the Company entered into an amendment to the WF Credit Facility (the “WF Credit Facility Fourth Amendment”) that amends the WF Credit Facility to, among other things: (i) increase the amount available for borrowing under the WF Credit Facility from $150,000,000 to $175,000,000, (ii) extend the facility maturity date from December 18, 2025 to December 18, 2028 and (iii) extend the reinvestment period from December 18, 2023 to December 18, 2026 (subject to other provisions of the WF Credit Facility).

Debt obligations under the WF Credit Facility consisted of the following as of June 30, 2025:

	June 30, 2025
	Aggregate<br>Principal<br>Committed		Outstanding<br>Principal		Amount<br>Available(1)		Net<br>Carrying<br>Value(2)
WF Credit Facility	$	175,000,000	$	154,279,239	$	20,720,761	$	155,214,583
Total debt	$	175,000,000	$	154,279,239	$	20,720,761	$	155,214,583

• The amount available reflects any limitations related to the WF Credit Facility’s borrowing base.
• The carrying value of the WF Credit Facility is presented net of deferred financing costs of $1.7 million and accrued interest of $2.7 million.

Debt obligations under the WF Credit Facility consisted of the following as of December 31, 2024:

	December 31, 2024
	Aggregate <br>Principal <br>Committed		Outstanding<br>Principal		Amount<br>Available(1)		Net<br>Carrying<br>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

• The amount available reflects any limitations related to the WF Credit Facility’s borrowing base.
• 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 six months ended June 30, 2025 and the year ended December 31, 2024 was $155.1 million and $139.1 million, respectively.

Prior to April 10, 2023, the loans under the WF Credit Facility may have been Broadly Syndicated Loans or Middle Market loans and were eurocurrency rate loans unless such rate was unavailable, in which case the loans were base rate loans until such rate was available. Broadly Syndicated Loans bore interest at the LIBOR or base rate, as applicable, plus 1.85%, and Middle Market Loans bore interest at LIBOR or base rate, as applicable, plus 2.35%. The “base rate” was equal to the highest of (a) the federal funds rate plus 0.50% and (b) the prime rate. On April 10, 2023, the Company entered into an amendment to the WF Credit Facility that, among other things: (i) transferred and assigned U.S. Bank’s rights and obligations as collateral agent and as a secured party to U.S. Bank Trust Company, National Association, (ii) referenced SOFR instead of LIBOR and (iii) removed LIBOR transition language.

As of April 10, 2023, 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 2.50%, 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 includes fallback language in the event that Daily Simple SOFR becomes unavailable. Interest is payable quarterly, as determined by the WFB as the administrative agent. Following an amendment to the WF Credit Facility on October 13, 2021, the Loan Agreement requires the payment of a non-usage fee of (x) during the first thirteen months following the closing of the WF Credit Facility, 0.50% multiplied by daily unused Facility Amounts, (y) between thirteen and sixteen months following the closing of the WF Credit Facility, 0.50% multiplied by the lesser of (1) daily unused Facility Amounts and (2) 50% of the Facility Amount plus 2.00% multiplied by the greater of (i) the difference between the daily unused Facility Amount and 50% of the Facility Amount and (ii) zero and, (z) thereafter, 0.50% multiplied by the lesser of (1) daily unused Facility Amounts and (2) 20% of the Facility Amount plus 2.00% multiplied by the greater of (i) the difference between the daily unused Facility Amount and 20% of the Facility Amount and (ii) zero. Such fee is payable quarterly in arrears. The WF Credit Facility includes the option to downsize the facility by paying a Commitment Reduction Fee. The Fee is equal to 2.00% of the facility reduction amount prior to the one-year anniversary of the WF Credit Facility Fourth Amendment, and 1.00% thereafter. The applicable percentage for the advance rate on PS BDC Funding II’s Eligible Loans ranges from 67.5% for Middle Market Loans to 70% for Broadly Syndicated Loans (as each such term is defined in the Loan Agreement).

For the three and six months ended June 30, 2025 and 2024, the components of interest expense with respect to the WF Credit Facility were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Interest expense	$	2,692,429		$	2,754,510		$	5,392,344		$	5,513,053
Amortization of debt issuance costs		124,029			124,029			246,696			248,059
Total interest expense	$	2,816,458		$	2,878,539		$	5,639,040		$	5,761,112
Average interest rate		6.82	%		7.82	%		6.83	%		7.82	%

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.”

The following table presents information on the Notes issued in the CLO Transaction as of June 30, 2025:

		June 30, 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

• 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

• 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 three and six months ended June 30, 2025 and 2024, the components of interest expense with respect to the Notes were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Interest expense	$	4,536,907		$	2,278,665		$	9,093,757		$	2,278,665
Amortization of debt issuance costs		34,755			14,644			69,128			14,644
Total interest expense	$	4,571,662		$	2,293,309		$	9,162,885		$	2,293,309
Average interest rate		5.99	%		7.01	%		6.03	%		7.01	%

Note 7. Share Transactions

Offering Proceeds

During the six months ended June 30, 2025 and 2024, the Company issued and sold 32,662 shares at an aggregate purchase price of $0.5 million and 5,485,963 shares at an aggregate purchase price of $90.2 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 withholding tax, if any) automatically reinvested in additional shares of the Company’s common stock, rather than receiving cash dividends and distributions.

Prior to the IPO, the Board primarily used newly-issued shares of the Company’s common stock to implement the dividend reinvestment plan. The number of shares of common stock to be issued to a participant prior to the IPO would be equal to the quotient determined by dividing the cash value of the dividend payable to such stockholder by the NAV per share as of the date such dividend was declared.

After the IPO, 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 six months ended June 30, 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 will terminate upon the earliest to occur of (i) 12 months from the date of the Extended Company Rule 10b5-1 Stock Repurchase Plan, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased under the Extended Company Rule 10b5-1 Stock Repurchase Plan equals $20 million less any repurchases made pursuant to the Company Rule 10b5-1 Stock Repurchase Plan and (iii) the occurrence of certain other events described in the Extended Company Rule 10b5-1 Stock Repurchase Plan.

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.

For the six months ended June 30, 2025, the Company repurchased 413,444 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 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 six months ended June 30, 2025, PSCM purchased 21,573 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 six months ended June 30, 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	$	11,714,851	12,507	$	161,965	(1)
3/24/2025	3/28/2025	4/10/2025		0.030		976,238	1,042		13,497	(1)
5/7/2025	6/27/2025	7/14/2025		0.360		11,600,374	—		—
6/23/2025	6/27/2025	7/14/2025		0.060		1,933,396	—		—

• 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.

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		13,693,684	110,129		1,735,280	(4)
12/23/2024	12/27/2024	1/13/2025		0.060		1,956,241	15,733		247,897	(4)

• 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.
• 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.
• 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.
• 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 June 30, 2025 and December 31, 2024, the Company had an aggregate of $15.7 million and $21.6 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of June 30, 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 June 30, 2025 is shown in the table below:

	Expiration Date (1)	As of <br>June 30, <br>2025
American Rock Salt Company LLC	9/19/2026	$571,091
Aptean Inc	1/30/2031	528,261
B'laster Holdings, LLC	10/25/2025	466,666
Dwyer Instruments, LLC	11/20/2026	492,210
Dwyer Instruments, LLC	7/21/2029	1,032,321
Enverus Holdings, Inc.	12/22/2025	118,108
Enverus Holdings, Inc.	12/24/2029	438,758
Galway Borrower LLC	2/7/2026	3,719,452
Galway Borrower LLC	9/30/2028	383,991
GC Ferry Acquisition Inc	7/31/2027 (2)	1,020,833
Logrhythm, Inc.	7/2/2029	636,364
Majco LLC	3/11/2027	1,172,695
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	787,710
PT Intermediate Holdings III, LLC	4/8/2026	686,119
TMC Buyer, Inc.	11/1/2026	416,667
USIC Holdings, Inc.	9/10/2026	98,543
USIC Holdings, Inc.	9/10/2031	174,731
Total unfunded commitments		$15,664,334

• 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.
• Date estimated based on an expected closing date of July 31, 2025.

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 <br>December 31,<br>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	7/25/2026	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

• 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 June 30, 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 June 30, 2025 and June 30, 2024, there were no dilutive shares.

The following table sets forth the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2025 and 2024:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025			2024
Net increase (decrease) in net assets resulting from operations	$	7,169,976	$	5,312,813	$	(1,219,235	)	$	28,192,953
Weighted average shares of common stock outstanding - basic and diluted		32,349,999		32,569,280		32,475,330			32,081,916
Earnings (loss) per share of common stock - basic and diluted	$	0.22	$	0.16	$	(0.04	)	$	0.88

Note 11. 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 six months ended June 30, 2025 and 2024:

	For the Six Months Ended
	June 30,
	2025			2024
Per Common Share Operating Performance
Net Asset Value, Beginning of Period	$	16.50		$	17.04
Results of Operations:
Net Investment Income(1)		0.82			1.00
Net Realized and Unrealized Gain (Loss) on Investments(4)		(0.83	)		(0.23	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(0.01	)		0.77
Distributions to Common Stockholders
Distributions from Net Investment Income		(0.81	)		(0.96	)
Net Decrease in Net Assets Resulting from Distributions		(0.81	)		(0.96	)
Net Asset Value, End of Period	$	15.68		$	16.85
Shares Outstanding, End of Period		32,218,966			32,567,405
Ratio/Supplemental Data
Net assets, end of period	$	505,213,440		$	548,790,231
Weighted-average shares outstanding		32,475,330			32,081,916
Total Return(3)		0.78	%		4.73	%
Portfolio turnover		15	%		17	%
Ratio of operating expenses to average net assets without waiver(2)		13.85	%		14.28	%
Ratio of operating expenses to average net assets with waiver(2)		13.85	%		14.26	%
Ratio of net investment income (loss) to average net assets without waiver(2)		10.25	%		11.64	%
Ratio of net investment income (loss) to average net assets with waiver(2)		10.25	%		11.66	%

• The per common share data was derived by using weighted average shares outstanding.

• The ratios reflect an annualized amount.

• 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.

• 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 12. 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.

Note 13. 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 July 14, 2025, the Company paid a distribution in the amount of $13,533,770, or $0.42 per share, to shareholders on record as of June 27, 2025.

Unfunded Capital Commitments

On July 7, 2025, $27,589.08 was paid down on the USIC Holdings Inc. facility. On July 11, 2025, $18,392.72 of the outstanding commitment to USIC Holdings Inc. was funded. On July 25, 2025, $18,392.72 was paid down on the USIC Holdings Inc. facility. On July 28, 2025, $14,714.18 was paid down on the USIC Holdings Inc. facility. The balance of the remaining unfunded commitment was $217,034.07 as of such date.

On July 17, 2025, $20,126.51 was paid down on the Enverus Holdings, Inc. facility. On July 29, 2025, $26,164.46 of the outstanding commitment to Enverus Holdings, Inc. was funded. The balance on the remaining unfunded commitment was $432,719.94 as of such date.

On July 18, 2025, $1,172,694.53 of the outstanding commitment to Majco LLC was funded. The balance of the remaining unfunded commitment was $0 as of such date.

On July 18 2025, $273,740.00 of the outstanding commitment to Patriot Growth Insurance Services, LLC was funded. The balance of the remaining unfunded commitment was $513,970 as of such date.

On July 18, 2025, $44,674.90 was paid down on the Galway Borrower LLC facility. On July 31, 2025 $30,846.96 was paid down on the Galway Borrower LLC facility. The balance of the remaining unfunded commitment was $459,513.30 as of such date.

Company Rule 10b5-1 Stock Repurchase Plan

From July 1, 2025 to August 5, 2025, the Company repurchased 93,234 shares of its common stock pursuant to the Extended Company Rule 10b5-1 Stock Repurchase Plan at an aggregate price of $1,310,461.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. Except as otherwise specified, references to “we,” “us,” “our,” or the “Company” refer to Palmer Square Capital BDC Inc.

Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

• our future operating results;
• our business prospects and the prospects of our portfolio companies;
• changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, including the liquidity of certain banks;
• uncertainty surrounding the financial and political stability of the United States, the United Kingdom, the European Union and China, and the war between Russia and Ukraine;
• disruptions related to tariffs and other trade or sanctions issues, which may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade;
• the impact of fluctuations in interest rates and foreign exchange rates on our business and our portfolio companies;
• rising levels of inflation, and its impact on us, on our portfolio companies and on the industries in which we invest;
• the ability of the Investment Advisor to locate suitable investments for us and to monitor and administer our investments;
• the ability of the Investment Advisor and its affiliates to attract and retain highly talented professionals;
• risk associated with possible disruptions in our operations or the economy generally, including a possible slowdown in the economy and risk of recession;
• the timing of cash flows, if any, from the operations of the companies in which we invest;
• the ability of the companies in which we invest to achieve their objectives;
• our ability to continue to effectively manage our business due to the disruptions caused by global political and economic instability;
• the dependence of our future success on the general economy and its effect on the industries in which we invest;
• our ability to maintain our qualification as a BDC and as a RIC under the Code;
• the use of borrowed money to finance a portion of our investments;
• the adequacy, availability and pricing of our financing sources and working capital;
• actual or potential conflicts of interest with the Investment Advisor and its affiliates;
• our contractual arrangements and relationships with third parties;
• loss of key personnel, and the illiquid nature of our investments; and
• the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in this quarterly report on Form 10-Q.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this quarterly report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled “Item 1A. Risk Factors” and elsewhere in this quarterly report on Form 10-Q. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this quarterly report on Form 10-Q. Moreover, we assume no duty and do not undertake to update the forward-looking statements.

Overview

We are a financial services company that primarily lends to and invests in corporate debt securities of companies, including small to large private U.S. companies. We were organized as a Maryland corporation on August 26, 2019 and are structured as an externally managed, non-diversified closed-end management investment company. We have elected to be regulated as a BDC under the 1940 Act and, beginning with our taxable year ended December 31, 2020, we have elected to be treated as a RIC under Subchapter M of the Code, and we expect to qualify as a RIC annually.

On January 22, 2024, we completed our IPO, issuing 5,450,000 shares of common stock, par value $0.001, at a public offering price of $16.45 per share. Our common stock began trading on the New York Stock Exchange under the symbol “PSBD” on January 18, 2024.

We are externally managed by the Investment Advisor, an investment adviser that is registered with the SEC under the Advisers Act, pursuant to the Advisory Agreement. Subject to the supervision of our Board, a majority of which is made up of Independent Directors, our Investment Advisor manages our day-to-day operations and provides us with investment advisory and management services and certain administrative services. The Investment Advisor, in its capacity as Administrator, provides the administrative services necessary for us to operate pursuant to the Administration Agreement. The Administrator has entered into the Sub-Administration Agreement to delegate certain administrative functions to the Sub-Administrator. Our Investment Advisor is a majority-owned subsidiary of PSCM, which is a privately held firm specializing in global alternative (non-traditional) investments with a total return orientation.

Our investment objective is to maximize total return, comprised of current income and capital appreciation. However, no assurance can be given that our investment objective will be achieved, and investment results may vary substantially on a monthly, quarterly and annual basis. The Company’s current investment focus is guided by two strategies that facilitate our investment opportunities and core competencies: (1) investing in corporate debt securities and, to a lesser extent, (2) investing in CLO structured credit funds that typically own corporate debt securities, including the equity and junior debt tranches of CLOs. We seek to invest in credit and other assets that the Investment Advisor believes have strong structural protections, limited downside, and low long-term beta, or volatility, in comparison to systemic risk within the broader credit and equity markets. A significant portion of the loans in which we may invest or obtain exposure to through our investments in structured securities may be deemed “Covenant-Lite Loans,” which means the loans contain fewer or no maintenance covenants compared to other loans and do not include terms which allow the lender to declare a default if certain covenants are breached.

Revenues

We generate revenue primarily in the form of interest and fee income on debt investments we hold and capital gains, if any, on investments. Our debt investments generally bear interest at a floating rate usually determined on the basis of a benchmark. Interest on debt securities is generally payable quarterly or semi-annually. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments is expected to fluctuate significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees.

Expenses

Our primary operating expenses include the payment of fees to the Investment Advisor under the Advisory Agreement, our allocable portion of overhead and rental expenses under the Administration Agreement and other operating costs described below. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

• interest expense and other costs associated with our indebtedness;
• the cost of calculating our NAV, including the cost of any third-party valuation services;
• the cost of effecting sales and repurchases of shares of our common stock and other securities;
• fees payable to third parties relating to making investments, including our Investment Advisor’s or its affiliates’ travel expenses, research costs and out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments;
• transfer agent and custodial fees;
• operating costs incurred prior to the commencement of our operations;
• out-of-pocket fees and expenses associated with marketing efforts;
• federal and state registration fees and any stock exchange listing fees;
• U.S. federal, state and local taxes;
• Independent Directors’ fees and expenses;
• brokerage commissions and markups;
• fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;
• direct costs, such as printing, mailing, long distance telephone and staff;
• fees and expenses associated with independent audits and outside legal costs;
• costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; and
• other expenses incurred by the Administrator or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion (subject to the review and approval of our Board) of overhead, including rental expenses.

Portfolio and Investment Activity

As of June 30, 2025, our weighted average total yield to maturity of debt and income producing securities at fair value was 10.10%, and our weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.27%.

As of December 31, 2024, our weighted average total yield to maturity of debt and income producing securities at fair value was 10.65%, and our weighted average total yield to maturity of debt and income producing securities at amortized cost was 9.06%.

As of June 30, 2025, we had 263 debt and equity investments in 206 portfolio companies with an aggregate fair value of approximately $1.2 billion.

As of December 31, 2024, we had 262 debt and equity investments in 207 portfolio companies with an aggregate fair value of approximately $1.3 billion.

Our investment activity for the three and six months ended June 30, 2025 and 2024 is presented below (information presented herein is at amortized cost unless otherwise indicated).

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2025	2024	2025	2024
New investments:
Gross investments	$92,361,724	$189,301,404	$196,684,831	$535,784,227
Less: sold investments	(133,281,726)	(140,027,013)	(277,651,090)	(209,583,349)
Total new investments	(40,920,002)	49,274,391	(80,966,259)	326,200,878
Principal amount of investments funded:
First-lien senior secured debt investments	$84,724,520	$152,521,210	$182,160,770	$464,632,921
Second-lien senior secured debt investments	4,990,000	31,427,000	4,990,000	42,224,500
Corporate bonds	1,998,573	4,095,000	1,998,573	4,095,000
Convertible bonds	—	—	—	—
Collateralized securities and structured products - debt	—	—	—	23,573,612
CLO Equity	—	—	—	—
Common stock	50,158	1,258,194	6,937,015	1,258,194
Preferred Stock	598,473	—	598,473	—
Total principal amount of investments funded	92,361,724	189,301,404	196,684,831	535,784,227
Principal amount of investments sold or repaid:
First-lien senior secured debt investments	$125,479,304	$122,980,773	$263,482,677	$177,972,549
Second-lien senior secured debt investments	5,032,501	9,394,359	8,236,495	18,454,359
Corporate Bonds	2,005,000	—	2,005,000	—
Convertible bonds	—	—	—	—
Collateralized securities and structured products - debt	—	4,000,068	2,900,000	5,250,000
CLO Equity	764,921	3,651,813	1,026,918	7,906,441
Common Stock	—	—	—	—
Preferred Stock	—	—	—	—
Total principal amount of investments sold or repaid	133,281,726	140,027,013	277,651,090	209,583,349

Our investment activity for the three and six months ended June 30, 2025 and 2024 is presented below (information presented herein is at par unless otherwise indicated). New investment commitment refers to long-term funded commitments in new securities made during the period that remained outstanding as of June 30, 2025 and June 30, 2024, respectively.

	For the Three Months<br>Ended June 30,						For the Six Months<br>Ended June 30,
	2025			2024			2025			2024
Number of new investment commitments		23			24			46			59
Average new investment commitment amount	$	3,145,736		$	5,575,295		$	3,513,716		$	4,718,311
Weighted average maturity for new investment commitments	5.16 years			6.05 years			5.27 years			5.98 years
Percentage of new debt investment commitments at floating rates		100.00	%		97.01	%		100.00	%		98.56	%
Percentage of new debt investment commitments at fixed rates		0.00	%		2.99	%		0.00	%		1.44	%
Weighted average interest rate of new investment commitments(1)		8.93	%		9.96	%		8.75	%		10.07	%
Weighted average spread over reference rate of new floating rate investment commitments(2)		4.56	%		4.68	%		4.38	%		4.75	%
Weighted average interest rate on long-term investments sold or paid down		8.65	%		10.69	%		8.47	%		10.53	%

• New CLO equity investments do not have an ascribed interest rate and are therefore excluded from the calculation.
• Variable rate loans bear interest at a rate that may be determined by reference to either a) LIBOR (which can include one-, two-, three- or six-month LIBOR) or b) the CME Term Secured Overnight Financing Rate (“SOFR” or “S”) (which can include one-, three-, or six-month SOFR), which resets periodically based on the terms of the loan agreement. At the borrower’s option, loans may instead reference an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate), which also resets periodically based on the terms of the loan agreements. Loans that reference SOFR may include a Credit Spread Adjustment (“CSA”), where the CSA is a defined additional spread amount based on the tenor of SOFR the borrower selects (making the reference rate S+CSA).

As of June 30, 2025 and December 31, 2024, our investments consisted of the following:

	June 30, 2025				December 31, 2024
	Ammortized Cost		Fair Value		Ammortized Cost		Fair Value
First-lien senior secured debt	$	1,152,451,190	$	1,104,986,930	$	1,243,362,037	$	1,206,603,630
Second-lien senior secured debt		81,495,629		72,227,601		84,821,531		77,650,130
Corporate Bonds		5,040,559		4,337,445		4,883,315		4,214,315
CLO Mezzanine		34,947,135		34,598,554		37,827,370		38,147,753
CLO Equity		12,002,166		8,096,713		13,029,085		10,003,685
Equity		8,898,160		6,772,148		1,258,194		1,081,497
Short-term investments		48,773,413		48,773,413		69,429,935		69,429,935
Total Investments	$	1,343,608,252	$	1,279,792,804	$	1,454,611,467	$	1,407,130,945

The table below describes investments by industry composition based on fair value as of June 30, 2025 and December 31, 2024:

	June 30, <br>2025			December 31, <br>2024
Software		10.9	%		10.2	%
Healthcare Providers and Services		9.5	%		9.4	%
Professional Services		7.7	%		7.7	%
IT Services		6.3	%		6.7	%
Chemicals		5.5	%		5.1	%
Construction and Engineering		4.6	%		4.5	%
Diversified Financial Services		4.6	%		3.9	%
Insurance		4.2	%		5.0	%
Short-Term Investments		3.8	%		4.9	%
Independent Power and Renewable Electricity Producers		3.7	%		3.3	%
Electronic Equipment, Instruments and Components		3.1	%		2.8	%
Hotels, Restaurants and Leisure		2.9	%		3.1	%
Media		2.7	%		3.1	%
Structured Note		2.7	%		2.7	%
Auto Components		2.4	%		2.2	%
Internet Software and Services		2.3	%		1.9	%
Food Products		2.1	%		1.9	%
Containers and Packaging		2.1	%		1.5	%
Building Products		2.0	%		1.9	%
Machinery		1.8	%		1.8	%
Metals and Mining		1.4	%		1.4	%
Interactive Media Services		1.3	%		0.7	%
Diversified Consumer Services		1.2	%		2.6	%
Commercial Services and Supplies		1.1	%		0.6	%
Energy Equipment and Services		1.1	%		1.7	%
Diversified Telecommunication Services		0.9	%		2.2	%
Household Durables		0.9	%		0.2	%
Industrial Conglomerates		0.9	%		0.7	%
Real Estate Management and Development		0.8	%		0.6	%
Aerospace and Defense		0.8	%		0.7	%
Healthcare Equipment and Supplies		0.7	%		0.6	%
Road and Rail		0.7	%		0.6	%
Specialty Retail		0.7	%		0.5	%
Pharmaceuticals		0.7	%		0.6	%
Structured Subordinated Note		0.6	%		0.7	%
Automotive		0.6	%		—
Electrical Equipment		0.4	%		0.7	%
Entertainment		0.2	%		—
Construction Materials		0.1	%		—
Wireless Telecommunication Services		—			0.7	%
Electric Utilities		—			0.6	%
Total		100.0	%		100.0	%

The table below shows the weighted average yields and interest rate of our debt investments at fair value as of June 30, 2025 and December 31, 2024:

	June 30, <br>2025			December 31, <br>2024
Weighted average total yield of debt and income producing securities		10.10	%		10.65	%
Weighted average interest rate of debt and income producing securities(1)		8.83	%		8.93	%
Weighted average spread over reference rate of all floating rate investments (2)		4.49	%		4.48	%

• CLO equity securities are considered income producing securities but do not have an ascribed interest rate, and therefore are excluded from the calculation.
• Variable rate loans bear interest at a rate that may be determined by reference to either a) LIBOR (which can include one-, two-, three- or six-month LIBOR) or b) the CME Term Secured Overnight Financing Rate (“SOFR” or “S”) (which can include one-, three-, or six-month SOFR), which resets periodically based on the terms of the loan agreement. At the borrower’s option, loans may instead reference an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate), which also resets periodically based on the terms of the loan agreements. Loans that reference SOFR may include a Credit Spread Adjustment (“CSA”), where the CSA is a defined additional spread amount based on the tenor of SOFR the borrower selects (making the reference rate S+CSA).

Results of Operations

The following table represents the operating results for the three and six months ended June 30, 2025 and 2024.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Total investment income	$	31,676,920		$	36,549,496		$	62,891,199		$	71,334,439
Less: Net expenses		17,835,391			20,791,645			36,136,519			39,258,359
Net investment income		13,841,529			15,757,851			26,754,680			32,076,080
Net realized gains (losses) on investments		(5,745,139	)		(9,411,924	)		(11,639,632	)		(11,148,255	)
Net change in unrealized gains (losses) on investments		(926,414	)		(1,033,114	)		(16,334,283	)		7,265,128
Net increase (decrease) in net assets resulting from operations	$	7,169,976		$	5,312,813		$	(1,219,235	)	$	28,192,953

Investment Income

Investment income for the three and six months ended June 30, 2025 and 2024 was as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Interest from investments	$	30,023,842	$	35,278,431	$	59,843,505	$	68,486,203
Dividend income		481,501		805,031		1,055,837		2,059,727
Payment-in-kind interest income		801,918		182,116		1,309,768		234,303
Other income		369,659		283,918		682,089		554,206
Total investment income	$	31,676,920	$	36,549,496	$	62,891,199	$	71,334,439

For the six months ended June 30, 2025 and 2024, total investment income was driven by interest income from our investment portfolio. Total investment income is lower for the six months ended June 30, 2025 compared to the prior year period due to the investment portfolio primarily consisting of floating rate loans in a falling rate environment. The size of our investment portfolio at fair value decreased from $1.3 billion as of December 31, 2024 to $1.2 billion as of June 30, 2025. The size of our investment portfolio at fair value increased from $1.0 billion as of December 31, 2023 to $1.4 billion as of June 30, 2024. As of June 30, 2025, loans on non-accrual status represented 0.19% of the total investments at fair value (or 0.27% at amortized cost). 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).

Expenses

Operating expenses for the three and six months ended June 30, 2025 and 2024 were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Interest expense	$	12,576,374	$	14,997,028	$	25,546,131	$	28,175,858
Management fees		2,233,077		2,450,079		4,566,752		4,866,318
Incentive fees		1,940,079		2,249,954		3,782,785		4,174,706
Other operating expenses		1,048,464		1,057,289		2,166,467		2,017,398
Directors fees		37,397		37,295		74,384		74,590
Management fee waiver		—		—		—		(50,511	)
Net expenses	$	17,835,391	$	20,791,645	$	36,136,519	$	39,258,359

Net expenses for the three months ended June 30, 2025 were $17.8 million, which consisted of $12.6 million in interest expense, $2.2 million in management fees, $1.9 million in incentive fees, $1.0 million in other operating expenses, and $37 thousand in directors fees. Net expenses for the six months ended June 30, 2025 were $36.1 million, which consisted of $25.5 million in interest and debt financing, $4.6 million in management fees, $3.8 million in incentive fees, $2.2 million in other operating expenses, and $74 thousand in directors fees.

Net expenses for the three months ended June 30, 2024 were $20.8 million, which consisted of $15.0 million in interest expense, $2.5 million in management fees, $2.2 million in incentive fees, $1.1 million in other operating expenses, and $37 thousand in directors fees. Net expenses for the six months ended June 30, 2024 were $39.3 million, which consisted of $28.2 million in interest expense, $4.9 million in management fees, $4.2 million in incentive fees, $2.0 million in other operating expenses, and $75 thousand in directors fees offset by $51 thousand in management fee waiver from the Investment Advisor.

Interest expense decreased during the six months ended June 30, 2025 compared to the prior year period primarily due to the average interest rate on debt decreasing from 6.95% at June 30, 2024 to 6.06% at June 30, 2025 (average debt outstanding increased from $770.9 million to $786.7 million during the same period) under our BoA Credit Facility, WF Credit Facility and CLO Transaction. Incentive fees and management fees decreased compared to the prior year period due to lower net investment income and average net assets, respectively.

Net Change in Unrealized Gains (Losses) on Investments

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. During the three and six months ended June 30, 2025 and 2024, net unrealized gains (losses) on our investment portfolio were comprised of the following:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Unrealized gains on investments	$	22,624,193		$	21,190,332		$	28,668,154		$	33,732,798
Unrealized (losses) on investments		(23,550,607	)		(22,223,446	)		(45,002,437	)		(26,467,670	)
Net change in unrealized gains (losses) on investments	$	(926,414	)	$	(1,033,114	)	$	(16,334,283	)	$	7,265,128

The change in unrealized appreciation (depreciation) for the three months ended June 30, 2025 and 2024 totaled $(0.9) million and $(1.0) million, respectively. For the three months ended June 30, 2025, this consisted of net unrealized depreciation of $13.3 million related to existing portfolio investments, and net unrealized appreciation of $12.4 million related to exited portfolio investments (a portion of which has been reclassified to realized losses). For the three months ended June 30, 2024, this consisted of net unrealized depreciation of $8.1 million related to existing portfolio investments, and net unrealized appreciation of $7.1 million related to exited portfolio investments (a portion of which has been reclassified to realized losses).

The change in unrealized appreciation (depreciation) for the six months ended June 30, 2025 and 2024 totaled $(16.3) million and $7.3 million, respectively. For the six months ended June 30, 2025, this consisted of net unrealized depreciation of $35.0 million related to existing portfolio investments and net unrealized appreciation of $18.7 million related to exited portfolio investments (a portion of which has been reclassified to realized losses). For the six months ended June 30, 2024, this consisted of net unrealized depreciation of $6.9 million related to existing portfolio investments and net unrealized appreciation of $14.2 million related to exited portfolio investments (a portion of which has been reclassified to realized losses).

Financial Condition, Liquidity and Capital Resources

We anticipate cash to be generated from registered offerings of our common stock and other future offerings of equity and debt securities (including on-balance sheet CLO financings), and cash flows from operations, including interest earned from the temporary investment of cash in cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less. On January 14, 2020, our sole stockholder approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the 1940 Act to us effective as of such date. As a result of the reduced asset coverage requirement, we are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. If we are unable to obtain leverage or raise equity capital on terms that are acceptable to us, our ability to grow our portfolio could be substantially impacted. Furthermore, while any indebtedness and senior securities remain outstanding, we may be required to prohibit any distribution to our stockholders or the repurchase of shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. In connection with borrowings, our lenders, including under the BoA Credit Facility and the WF Credit Facility, may require us to pledge assets, investor commitments to fund capital calls and/or the proceeds of those capital calls. In addition, such lenders may ask us to comply with positive or negative covenants that could have an effect on our operations.

During the six months ended June 30, 2025, we experienced a net increase in cash and cash equivalents of $13.7 million. During the period, net cash provided by operating activities was $87.4 million, primarily as a result of proceeds received from sale of investments of $277.7 million, offset by fundings of portfolio investments (excluding investments in short-term investments) of $196.7 million. We funded short-term investments during the period, and as of the end of the period we held $48.8 million in fair value of short-term investments. During the same period, net cash used in financing activities was $73.7 million, primarily consisting of $40.2 million net repayments under the BoA Credit Facility and WF Credit Facility, distributions paid in cash of $28.3 million and payment for the repurchase of common shares of $5.7 million, partially increased by proceeds from the issuance of common stock of $0.5 million.

During the six months ended June 30, 2024, we experienced a net increase in cash and cash equivalents of $12.7 million. During the period, net cash used in operating activities was $238.4 million, primarily as a result of fundings of portfolio investments (excluding investments in short-term investments) of $535.8 million, partially offset by proceeds received from sale of investments of $209.6 million. We funded short-term investments during the period, and as of the end of the period we held $63.1 million in fair value of short-term investments. During the same period, net cash provided by financing activities was $251.1 million, primarily consisting of $300.0 million in proceeds from the CLO Transaction (as defined below), offset by $117.4 million of net repayments under the BoA Credit Facility and WF Credit Facility, partially increased by proceeds from the issuance of common stock of $89.7 million.

As of June 30, 2025 and June 30, 2024, we had cash and cash equivalents of $16.4 million and $14.8 million, respectively. As of June 30, 2025, we had $216.4 million in undrawn capacity under the BoA Credit Facility and $20.7 million in undrawn capacity under the WF Credit Facility. As of June 30, 2024, we had $138.4 million in undrawn capacity under the BoA Credit Facility and $38.8 million in undrawn capacity under the WF Credit Facility.

As a BDC, we are required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all of our borrowings and any preferred stock that we may issue in the future, of at least 150%. If this ratio declines below 150%, we cannot incur additional debt and could be required to sell a portion of our investments to repay some debt when it is disadvantageous to do so. As of June 30, 2025, our asset coverage ratio was 166%.

Capital Contributions

During the six months ended June 30, 2025 and 2024, the Company issued and sold 32,662 shares at an aggregate purchase price of $0.5 million, and 5,485,963 shares at an aggregate purchase price of $90.2 million, respectively. These amounts include shares issued in reinvestment.

Company Rule 10b5-1 Stock Repurchase Plan

Concurrently with the closing of the IPO, on January 22, 2024, we entered into a share repurchase plan (the “Company Rule 10b5-1 Repurchase Plan”) to acquire up to $15 million in the aggregate of shares of our common stock, if the market price per share of our common stock is below the most recently reported NAV per share, subject to certain limitations. Under the Company Rule 10b5-1 Stock Repurchase Plan, the agent will increase the volume of purchases made as the price of our common stock declines, subject to volume restrictions. The Company Rule 10b5-1 Repurchase Plan commenced on March 23, 2024 and terminated upon the effectiveness of the Extended Company Rule 10b5-1 Stock Repurchase Plan (as defined below).

On December 19, 2024, we entered into an extended share repurchase plan (the “Extended Company Rule 10b5-1 Repurchase Plan”) to acquire up to $20 million in the aggregate of shares of our common stock less any repurchases made pursuant to the Company Rule 10b5-1 Repurchase Plan, if the market price per share of our common stock is below the most recently reported NAV per share, subject to certain limitations. Under the Extended Company Rule 10b5-1 Stock Repurchase Plan, the agent will increase the volume of purchases made as the price of our common stock declines, subject to volume restrictions. The Extended Company Rule 10b5-1 Repurchase Plan commenced on January 22, 2025 and will terminate upon the earliest to occur of (i) 12 months from the date of the Extended Company Rule 10b5-1 Stock Repurchase Plan, (ii) the end of the trading day on which the aggregate purchase price for all shares purchased under the Extended Company Rule 10b5-1 Stock Repurchase Plan equals $20 million less any repurchases made pursuant to the Company Rule 10b5-1 Stock Repurchase Plan and (iii) the occurrence of certain other events described in the Extended Company Rule 10b5-1 Stock Repurchase Plan.

For the six months ended June 30, 2025, we repurchased 413,444 shares of our 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 our common stock in the open market within one year of the IPO date if shares of our 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 our common stock, if the market price per share of our common stock is below the most recently reported NAV per share, subject to certain limitations. 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.

On April 22, 2025, PSCM entered into a share purchase plan (the “Extended PSCM Rule 10b5-1 Stock Purchase Plan”) to permit the purchase of up to $2.5 million in the aggregate of shares of our common stock less any purchases made pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan, if the market price per share of our common stock is below the most recently reported NAV per share, subject to certain limitations. 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.

For the six months ended June 30, 2025, PSCM purchased 21,573 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.

Financing Arrangements

Bank of America Credit Facility

On February 18, 2020, we, through a special purpose wholly-owned subsidiary, PS BDC Funding, entered into the Credit Agreement with the Lenders, BofA N.A. as the administrative agent and BofA Securities, as Lead Arranger and Sole Book Manager, pursuant to which the Lenders agreed to provide us with a revolving line of credit.

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 is currently $525 million. 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. On March 29, 2024, we entered into a fourth amendment to the BoA Credit Facility to, among other things: (i) extend the facility maturity date from February 18, 2025 to February 18, 2028; (ii) update arrangements for the calculation of the fee on unused commitments from 1.30% to a range from 0.50% to 1.40%, depending on the amount of commitments utilized, and (iii) payment of an extension fee.

Prior to February 3, 2023, the loans under the BOA Credit Facility may have been base rate loans or euro currency loans. The base rate loans bore interest at the base rate plus 1.30%, and the eurocurrency rate loans bore interest at 1-month or 3-month LIBOR plus 1.30%. The “base rate” was equal to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate, and (c) 1-month or 3-month LIBOR. On February 3, 2023, the Company entered into an omnibus amendment to the BoA Credit Facility that, among other things: (i) removed LIBOR transition language and (ii) replaced eurocurrency rate loans with SOFR loans.

As of February 3, 2023, 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 includes fallback language in the event that SOFR becomes unavailable. Interest pursuant to base rate loans is payable quarterly in arrears, and interest pursuant to SOFR loans is payable either quarterly or monthly, as specified by the Borrowers in a loan notice pertaining thereto. The Credit Agreement requires the payment of a commitment fee of 0.50% for unused Commitments until the four-month anniversary of the Second Amendment to the Credit Agreement. Thereafter, the commitment fee is 0.50% on unused Commitments up to 30% of the BoA Credit Facility, and 1.30% on unused Commitments in excess of 30% of the BoA Credit Facility. 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).

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 (Section 17, as modified by Section 57, of the 1940 Act). 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.

As of June 30, 2025, we had $308.6 million principal outstanding and $216.4 million of available Commitments under the BoA Credit Facility, and PS BDC Funding was in compliance with the applicable covenants in the BoA Credit Facility on such date.

Wells Fargo Credit Facility

On December 18, 2020, we, through a special purpose wholly-owned subsidiary, PS BDC Funding II, entered into the Loan Agreement with the 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 us with a line of credit.

On December 18, 2023, we entered into the WF Credit Facility Fourth Amendment, which amends the WF Credit Facility to, among other things: (i) increase the amount available for borrowing under the WF Credit Facility from $150,000,000 to $175,000,000, (ii) extend the facility maturity date from December 18, 2025 to December 18, 2028 and (iii) extend the reinvestment period from December 18, 2023 to December 18, 2026 (subject to other provisions of the WF Credit Facility).

Prior to April 10, 2023, the loans under the WF Credit Facility may have been Broadly Syndicated Loans or Middle Market loans and were eurocurrency rate loans unless such rate was unavailable, in which case the loans were base rate loans until such rate was available. Broadly Syndicated Loans bore interest at the LIBOR or base rate, as applicable, plus 1.85%, and Middle Market Loans bore interest at LIBOR or base rate, as applicable, plus 2.35%. The “base rate” was equal to the highest of (a) the federal funds rate plus 0.50% and (b) the prime rate. On April 10, 2023, the Company entered into an amendment to the WF Credit Facility that, among other things: (i) transferred and assigned U.S. Bank National Association’s rights and obligations as collateral agent and as a secured party to U.S. Bank Trust Company, National Association, (ii) referenced SOFR instead of LIBOR and (iii) removed LIBOR transition language.

As of April 10, 2023, 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 2.50%, 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 includes fallback language in the event that Daily Simple SOFR becomes unavailable. Interest is payable quarterly, as determined by the WFB as the administrative agent. Following an amendment to the WF Credit Facility on October 13, 2021, the Loan Agreement requires the payment of a non-usage fee of (x) during the first thirteen months following the closing of the WF Credit Facility, 0.50% multiplied by daily unused Facility Amounts, (y) between thirteen and sixteen months following the closing of the WF Credit Facility, 0.50% multiplied by the lesser of (1) daily unused Facility Amounts and (2) 50% of the Facility Amount plus 2.00% multiplied by the greater of (i) the difference between the daily unused Facility Amount and 50% of the Facility Amount and (ii) zero, and, (z) thereafter, 0.50% multiplied by the lesser of (1) daily unused Facility Amounts and (2) 20% of the Facility Amount plus 2.00% multiplied by the greater of (i) the difference between the daily unused Facility Amount and 20% of the Facility Amount and (ii) zero. Such fee is payable quarterly in arrears. The WF Credit Facility includes the option to downsize the facility by paying a Commitment Reduction Fee. The Fee is equal to 2.00% of the facility reduction amount prior to the one-year anniversary of the WF Credit Facility Fourth Amendment, and 1.00% thereafter. The applicable percentage for the advance rate on PS BDC Funding II’s Eligible Loans ranges from 67.5% for Middle Market Loans to 70% for Broadly Syndicated Loans (as each such term is defined in the Loan Agreement).

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 (Section 17, as modified by Section 57, of the 1940 Act). 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.

As of June 30, 2025, we had $154.3 million outstanding and $20.7 million of available Commitments under the WF Credit Facility, and PS BDC Funding II was in compliance with the applicable covenants in the WF Credit Facility on such date.

CLO Transaction

On May 23, 2024, we completed a $400.5 million term debt securitization (the “CLO Transaction”), also known as a collateralized loan obligation (“CLO”), in connection with which our wholly-owned indirect subsidiary issued the Notes (as defined below). The CLO Transaction functions as a source of long-term balance sheet financing for a portion of our portfolio investments and, as a result, the Notes issued in connection with the CLO Transaction are subject to our 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 our wholly-owned subsidiary, and consist of (i) $232 million of Class A Notes (the “Class A Notes”); (ii) $58 million of 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, 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.”

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 us as collateral manager pursuant to a collateral management agreement entered into with the Issuer (the “Collateral Management Agreement”). We have agreed to irrevocably waive all collateral management fees payable to us so long as we are 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 us, in the case of the Secured Notes) or (ii) us, in each case, on any business day on or after July 15, 2026.

As of June 30, 2025, we had outstanding indebtedness under the CLO Transaction of $300.0 million.

Distribution Policy

To the extent that we have income available, we intend to distribute quarterly dividends to our stockholders. Our quarterly dividends, if any, will be determined by our Board. Any dividends to our stockholders will be declared out of assets legally available for distribution.

We have elected to be treated, and intend to operate in a manner so as to continuously qualify, as a RIC under the Code. To obtain and maintain RIC tax treatment, among other things, we must distribute dividends to our stockholders in respect of each taxable year of an amount at least equal to 90% of the sum of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses (“investment company taxable income”), determined without regard to any deduction for dividends paid. In order to avoid certain excise taxes imposed on RICs, we currently intend to distribute dividends to our stockholders in respect of each calendar year of an amount at least equal to the sum of: (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for such calendar year; (2) 98.2% of our capital gains in excess of capital losses (“capital gain net income”), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year; and (3) any net ordinary income and capital gain net income for preceding years that were not distributed during such years and on which we previously paid no U.S. federal income tax. Under certain applicable provisions of the Code and U.S. Treasury regulations, distributions payable in cash or in shares of stock at the election of the stockholders are treated as taxable dividends. The Internal Revenue Service has published guidance indicating that this rule will apply even where the total amount of cash that may be distributed is limited to no more than 20% of the total distribution. Under this guidance, if too many stockholders elect to receive their distributions in cash, the cash available for distribution must be allocated among the stockholders electing to receive cash (with the balance of the distribution paid in stock). If we decide to make any distributions consistent with this guidance that are payable in part in stock, taxable stockholders receiving such dividends will be required to include the full amount of the dividend (whether received in cash, shares of our stock, or a combination thereof) as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the value of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, the Company may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock.

For these excise tax purposes, we will be deemed to have distributed any net ordinary taxable income or capital gain net income on which we have paid U.S. federal income tax. Depending on the level of taxable income earned in a calendar year, we may choose to carry forward taxable income for distribution in the following calendar year, and pay any applicable U.S. federal excise tax. We may not be able to achieve results that will permit the payment of cash distributions.

We currently intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we may decide in the future to retain such capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to our stockholders. If this happens, our stockholders will be treated for U.S. federal income tax purposes as if they had received an actual distribution of the capital gains that we retain and reinvested the net after tax proceeds in us. In this situation, our stockholders would be eligible to claim a tax credit equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. We may not be able to achieve operating results that will permit us to pay any cash distributions, and if we issue senior securities, we will be prohibited from making distributions if doing so would cause us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if such distributions are limited by the terms of any of our borrowings.

We have adopted a dividend reinvestment plan that provides for reinvestment of our dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board authorizes, and we declare, 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 withholding tax, if any) automatically reinvested in additional shares of our common stock, rather than receiving cash dividends and distributions.

Prior to the IPO, the Board primarily used newly-issued shares of our common stock to implement the dividend reinvestment plan. The number of shares of common stock to be issued to a participant prior to the IPO would be equal to the quotient determined by dividing the cash value of the dividend payable to such stockholder by the NAV per share as of the date such dividend was declared.

After the IPO, 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 our stockholders against our need and usage of reinvested funds, and, if we use 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 we 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 our 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 our 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 our 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.

Critical Accounting Estimates

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.

Critical accounting estimates are those that require the application of management’s most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. The preparation of these financial statements will require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. In addition to the discussion below, we have described our critical accounting estimates in the notes to our consolidated financial statements.

Valuation of Portfolio Investments

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC’s board of directors to either (i) choose to continue to determine fair value in good faith, or (ii) designate its investment adviser as the valuation designee tasked with determining fair value in good faith, subject to the board’s oversight. Our Board has designated the Investment Advisor to serve as our valuation designee effective August 11, 2022.

Under procedures established by our Board, we value investments for which market quotations are readily available at such market quotations. Assets listed on an exchange will be valued at their last sales prices as reported to the consolidated quotation service at 4:00 P.M. Eastern Time on the date of determination. If no such sales of such securities occurred, such securities will be valued at the mean between the last available bid and ask prices as reported by an independent, third-party pricing service on the date of determination (unless the prices provided by the pricing service is believed by the Investment Advisor to be unreliable or a significant event has occurred subsequent to the provision of the prices that the Investment Advisor determines will affect the fair value of the securities). Debt and equity securities that are not publicly traded or whose market prices are not readily available (or for which either of the events noted in the parenthetical immediately above occur) are valued at fair value by the Investment Advisor. Such determination of fair values may involve subjective judgments and estimates, although we will also engage independent valuation providers to review the valuation of each portfolio investment that constitutes a material portion of our portfolio and that does not have a readily available market quotation at least once annually. With respect to unquoted securities, our Investment Advisor will value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. With respect to Level 3 assets, we intend to retain one or more independent providers of financial advisory services to assist the Investment Advisor by performing certain limited third-party valuation services. We may appoint additional or different third-party valuation firms in the future.

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs with respect to a fair-valued portfolio company or comparable company, the Investment Advisor will use the pricing indicated by the external event in connection with its fair valuation determination process. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by the Investment Advisor using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had readily available market quotations existed for such investments, and the differences could be material.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

We measure 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. Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the identified cost basis method for financial reporting.

Related Party Transactions

We have entered into the Advisory Agreement with the Investment Advisor and the Administration Agreement with the Investment Advisor (in such capacity, the Administrator). Mr. Christopher D. Long and Mr. Jeffrey D. Fox, each an executive officer of ours and an interested member of our Board, and Angie K. Long, Matthew L. Bloomfield and Scott A. Betz, each an executive officer of ours, have an indirect pecuniary interest in the Investment Advisor. The Investment Advisor is a registered investment adviser under the Advisers Act that is majority-owned by PSCM. See “Note 3. Agreements and Related Party Transactions – Administration Agreement” and “– Investment Advisory Agreement” in the notes to the accompanying consolidated financial statements.

Contractual Obligations

We have certain contracts under which we have material future commitments. We have entered into the Advisory Agreement with the Investment Advisor in accordance with the 1940 Act. Payments for investment advisory services under the Advisory Agreement are equal to (a) a base management fee calculated at an annual rate of 1.75% of the average value of the weighted average of our total net assets at the end of the two most recently completed quarters and (b) an incentive fee based on our performance. The Investment Advisor agreed to waive its right to receive management fees in excess of 1.75% of the total net assets during any period prior to the IPO. We have entered into an Administration Agreement with the Administrator to serve as our administrator. Pursuant to the Administration Agreement, the Administrator furnishes us with office facilities and equipment, provides us with clerical, bookkeeping and recordkeeping services at such facilities, and provides us with other services necessary for us to operate or has engaged a third-party firm to perform some or all of these functions.

A summary of our significant contractual payment obligations related to the repayment of our outstanding indebtedness at June 30, 2025 is as follows:

	Contractual Obligations Payments Due by Period
	Less than<br>1 year		1-3 years		3-5 years		More than<br>5 years		Total
BoA Credit Facility, Net	$	-	$	305,843,823	$	-	$	-	$	305,843,823
WF Credit Facility, Net		-		-		155,214,583		-		155,214,583
CLO Transaction, Net		-		-		-		302,159,021		302,159,021
Total contractual obligations	$	-	$	305,843,823	$	155,214,583	$	302,159,021	$	763,217,427

Off-Balance Sheet Arrangements

Unfunded commitments to provide funds to portfolio companies are not recorded on our consolidated statements of assets and liabilities. Our unfunded commitments may be significant from time to time. Unfunded commitments may expire without being drawn upon and the total commitment amount does not necessarily represent future cash requirements. As of June 30, 2025 and December 31, 2024, we had 21 unfunded commitments totaling $15.7 million and 26 unfunded commitments totaling $21.6 million, respectively. See “Note 9. Commitments and Contingencies” in the notes to the accompanying consolidated financial statements for specific identification of the unfunded commitments. We believe we maintain sufficient liquidity in the form of cash (including restricted cash, if any), receivables and borrowing capacity to fund these unfunded commitments should the need arise. See Financial Condition, Liquidity and Capital Resources above.

Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance sheet financings or liabilities.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are subject to financial market risks, including changes in interest rates. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Assuming that the consolidated statements of assets and liabilities as of June 30, 2025 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rate.

Change in Interest Rates	Increase<br>(Decrease) in<br>Interest Income			Increase (Decrease)<br>in Interest Expense			Net Increase (Decrease)<br>in Net Investment<br>Income
Down 300 basis points	$	(38,607,427	)	$	(22,887,153	)	$	(15,720,274	)
Down 200 basis points		(25,679,614	)		(15,258,102	)		(10,421,512	)
Down 100 basis points		(12,846,472	)		(7,629,051	)		(5,217,421	)
Up 100 basis points		12,846,472			7,629,051			5,217,421
Up 200 basis points		25,679,614			15,258,102			10,421,512
Up 300 basis points		38,607,427			22,887,153			15,720,274

The data in the table are based on our current statements of assets and liabilities. As of June 30, 2025, the Company had $19.5 million in net purchases that had not yet settled and $15.7 million in unfunded commitments. After settlement of these purchases, the change in interest expense will be larger as a result of the increase in the amount borrowed under the BoA Credit Facility, WF Credit Facility or CLO Transaction, as applicable. The table does not include any change in dividend income from our money market investments.

In addition, any investments we make that are denominated in a foreign currency will be subject to risks associated with changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls, and potential illiquidity in the secondary market. These risks will vary depending upon the currency or currencies involved.

We measure exposure to interest rate and currency exchange rate fluctuations on an ongoing basis and may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as futures, options, swaps and forward contracts and credit hedging contracts, such as credit default swaps, in each case, subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our fiscal quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PSCM Rule 10b5-1 Stock Purchase Plan

During the six months ended June 30, 2025, PSCM purchased 21,573 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.

Period	Total<br>Number<br>of Shares<br>Purchased		Average<br>Price<br>Paid<br>Per Share		Total Number<br>of Shares<br>Purchased as<br>Part of<br>Publicly<br>Announced<br>Plans or<br>Programs (1)		Maximum (or Approximate Dollar Value) of Shares that may Yet Be Purchased Under the Plans or Programs (Dollars in Thousands) (1)
January 1, 2025 through January 31, 2025		—	$	—		—	$	2,500
February 1, 2025 through February 28, 2025		—		—		—		2,500
March 1, 2025 through March 31, 2025		1,631		14.13		1,631		2,477
April 1, 2025 through April 30, 2025		19,942		13.16		21,573		2,215
May 1, 2025 through May 31, 2025		—		—		21,573		2,215
June 1, 2025 through June 30, 2025		—		—		21,573		2,215
Total		21,573	$	13.23		21,573	$	2,215

(1) Concurrently with the closing of the IPO, PSCM entered into the PSCM Rule 10b5-1 Stock Purchase Plan to permit the purchase of up to $2.5 million shares of our common stock, if the market price per share of our common stock is below the most recently reported NAV per share, subject to certain limitations. Under the 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 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. On April 22, 2025, PSCM entered into a share purchase plan (the “Extended PSCM Rule 10b5-1 Stock Purchase Plan”) to permit the purchase of up to $2.5 million in the aggregate of shares of our common stock less any purchases made pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan, on substantially similar terms and conditions as the PSCM Rule 10b5-1 Stock Purchase Plan. 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.

Item 3. Default Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

The exhibits required by this item are set forth in the Exhibit Index attached hereto and are filed or incorporated as part of this Report.

Exhibit Index

3.1	Form of Articles of Amendment and Restatement (Incorporated by reference to Exhibit 3.1 to Registrant’s Amendment No. 1 to Registration Statement on Form 10 (File No. 000-56126) filed on January 16, 2020)
3.2	Bylaws (Incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form 10 (File No. 000-56126) filed on November 27, 2019)
31.1*	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104*	Cover page formatted as Inline XBRL and contained in Exhibit 101

* Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Palmer Square Capital BDC Inc.
Date: August 6, 2025	/s/ Christopher D. Long
	Name:	Christopher D. Long
	Title:	Chief Executive Officer and Director<br>(Principal Executive Officer)
Date: August 6, 2025	/s/ Jeffrey D. Fox
	Name:	Jeffrey D. Fox
	Title:	Chief Financial Officer and Director<br>(Principal Financial and Accounting Officer)

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

I, Christopher D. Long, Chief Executive Officer of Palmer Square Capital BDC Inc., certify that:

• I have reviewed this quarterly report on Form 10-Q of Palmer Square Capital BDC Inc.;
• Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
• Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
• The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
• Designed such disclosure controls and procedures, or caused sucha disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
• Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
• Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
• Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
• The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
• All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
• Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 6th day of August 2025.

By:	/s/ Christopher D. Long
	Christopher D. Long
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

I, Jeffrey D. Fox, Chief Financial Officer of Palmer Square Capital BDC Inc., certify that:

• I have reviewed this quarterly report on Form 10-Q of Palmer Square Capital BDC Inc.;
• Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
• Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
• The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
• Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
• Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
• Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
• Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
• The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
• All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
• Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 6th day of August 2025.

By:	/s/ Jeffrey D. Fox
	Jeffrey D. Fox
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

In connection with the Quarterly Report on Form 10-Q for the three months ended June 30, 2025 (the “Report”) of Palmer Square Capital BDC Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Christopher D. Long, the Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that:

• The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
• The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

	/s/ Christopher D. Long
Name:	Christopher D. Long
Date:	August 6, 2025

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

In connection with the Quarterly Report on Form 10-Q for the three months ended June 30, 2025 (the “Report”) of Palmer Square Capital BDC Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Jeffrey D. Fox, the Chief Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that:

• The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
• The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

	/s/ Jeffrey D. Fox
Name:	Jeffrey D. Fox
Date:	August 6, 2025