Q1 2024 Palmer Square Capital BDC Inc Earnings Call
Operator: Welcome to Palmer Square Capital PDC's first quarter 2024 earnings call. At this time, all participants are in listen-only mode.
Welcome to Palmer Square capital Bdc's first quarter 2020 earnings call.
Operator: At this time all participants are in a listen only mode. A question and answer session will be following the prepared remarks as a ric.
Operator: A question and answer session will be followed by preferred remarks. As a reminder, this conference call is being recorded. At this time, I'd like to turn the call over to Andrew Weatherburn-Maxwell, Investor Relations. You may begin.
Andrew Weatherburn-Maxwell: A minder this conference call is being recorded at this time I'd like to turn the call operator, Andrew Weatherbird Maxwell Investor Relations you may begin.
Andrew Weatherburn-Maxwell: Welcome to Palmer Square Capital BDC's first quarter 2024 earnings call. Joining me this morning are Chris Long, Chairman and Chief Executive Officer, Angie Long, Chief Investment Officer, Matt Bloomfield, President, and Jeff Fox, Chief Financial Officer and Director. Palmer Square Capital BDC's first quarter 2024 financial results were released earlier today and can also be accessed on Palmer Square's investor relations website at palmersquarebdc.com. We have also arranged for a replay of today's event that can be accessed on our website for the next six months.
Andrew Weatherburn-Maxwell: Welcome to the problem of square capital BDC first quarter 2020 for any call. Joining me. This morning are Chris long, Chairman and Chief Executive Officer, Andrew <unk>, Chief Investment Officer, Matt Greenfield, President and Jeff <unk>, Chief Financial Officer and director.
Andrew Weatherburn-Maxwell: Palmer Square capital BDC first quarter 2024 financial results were released earlier today and can also be accessed on polymers glass Investor Relations website at <unk> Dot com.
Andrew Weatherburn-Maxwell: We have also arranged for a replay of today's event that can be accessed on our website for the next six months.
Andrew Weatherburn-Maxwell: During this call, I want to remind you that the forward-looking statements we make are based on current expectations. The statements on this call that are not purely historical are forward-looking statements. These forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements, including, without limitation, market conditions caused by uncertainty surrounding interest rates, changing economic conditions, and other factors we identify in our filings with the SEC.
Andrew Weatherburn-Maxwell: During this call I want to remind you that the forward looking statements. We make are based on current expectations.
Andrew Weatherburn-Maxwell: On this call that are not purely historical are forward looking statements. These forward looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward looking statements, including without limitation market condition caused by.
Andrew Weatherburn-Maxwell: The uncertainty surrounding interest rates changing economic conditions and other factors, we identified in our filings with the SEC.
Andrew Weatherburn-Maxwell: Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions can prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions can be incorrect. You should not rely on these forward-looking statements. The forward-looking statements made during this call are made as of the date hereof, and Palmer Square Capital BDC assumes no obligation to update the forward-looking statements unless required by law.
Andrew Weatherburn-Maxwell: Although we believe that the assumptions on which these forward looking statements are based on a reasonable any of those assumptions can prove to be inaccurate and as a result, the forward looking statements based on those assumptions can be incorrect.
Andrew Weatherburn-Maxwell: You should not place undue reliance on these forward looking statements.
Andrew Weatherburn-Maxwell: Forward looking statements made during this call are made as of the date hereof and promised square capital BDC assumes no obligation to update the forward looking statements unless required by law.
Andrew Weatherburn-Maxwell: Copies of <unk> SEC related filings. Please visit our website at Palmer square BDC Dot com.
Chris Long: That I will now turn the call over to Chris long.
Chris Long: Good afternoon, everyone. We're very excited to have you with us. Thank you for joining us today for Palmers Fair Capital BDC's first quarter 2024 conference call. I will begin by providing an overview of the quarterly highlights, then turn the call over to the team to discuss our market outlook, portfolio, and financial performance. I am pleased to report strong quarterly earnings results, solid credit performance across the portfolio, and continued net asset value expansion. During the first quarter, our team deployed $346 million of capital and generated net investment income of $16.3 million.
Speaker Change: Good afternoon, everyone. We're very excited to have you with us. Thank you for joining us today for Palmerston capital Bdc's first quarter 2024 conference call I will begin by providing an overview of the quarterly highlights then turn the call to the team to discuss our market outlook portfolio.
Chris Long: In mid-April, we announced our NAV per share as of March 31, 2024 of $17.16. On the heels of our successful IPO in January, these first quarter operating results serve as a testament to PFBD's differentiated investment strategy that provides the ability to capitalize on investment opportunities across the syndicated and private credit markets. In March, our board approved a formal base and supplemental dividend policy that reinforces our commitment to enhance transparency and shareholder alignment. Going forward, we expect to declare a quarterly base distribution of $0.42 per share, as well as a supplemental dividend each quarter of at least 50% of net investment income above the base distribution.
Chris Long: And financial performance.
Chris Long: I am pleased to report strong quarterly earnings results solid credit performance across the portfolio and continued net asset value expansion.
Chris Long: During the first quarter, our team deployed $346 million of capital and generated net investment income of $16 3 million.
Chris Long: In mid April we announced our NAV per share as of March 31, 2024, a $17 and 16.
Chris Long: On the heels of our successful IPO in January these first quarter operating results to serve as a testament to PSB. These differentiated investment strategy.
Chris Long: Provides the ability to capitalize on investment opportunities across the syndicated and private credit market.
Chris Long: In March our board approved a formal basis and supplemental dividend policy that reinforces our commitment to enhance transparency and shareholder alignment.
Chris Long: Going forward, we expect to declare a quarterly base distribution of <unk> 42 per share as well as a supplemental dividend each quarter of at least 50% of net investment income above the base distribution.
Chris Long: This framework speaks to our board's confidence in our liquid and diversified investment strategy as we focus on delivering long-term total returns through dividends and NAV expansion. Since our inception in 2019, our mission has been to deliver a truly unique public vehicle that offers investors attractive, risk-adjusted returns through a highly liquid and transparent strategy and shareholder-friendly fee structure. We believe that Palmer Square Capital BDC remains well positioned for upside in this dynamic operating environment.
Chris Long: This framework speaks to our boards confidence in our liquid and diversified investment strategy as we focus on delivering long term total returns through dividends and NAV expansion.
Chris Long: Since our inception in 2019, our mission has been to deliver a truly unique public vehicle that offers investors attractive risk adjusted returns through a highly liquid and transparent strategy and shareholder friendly fee structure, we believe that Palmer square capital BDC remains well positioned for.
Chris Long: Upside in this dynamic operating environment.
Chris Long: While credit across the sector has shown resilience this past year in the face of recessionary fears, we expect to see a divergence between managers as idiosyncratic credit issues arise given the illiquid nature and concentration of certain assets. We have intentionally constructed the PSBD portfolio to emphasize high quality, shorter duration, and liquid credits that we believe will enable us to opportunistically rotate investments with agility as the macroeconomic environment changes. We remain very pleased with the credit quality of our portfolio.
Chris Long: While credit across the sector has shown resilience this past year in the face of recessionary fears, we expect to see a divergence between managers at idiosyncratic credit issues arise given the illiquid nature and concentration of certain assets, we haven't intentionally constructed the PSB portfolio to emphasize.
Chris Long: High quality shorter duration and liquid credits that we believe will enable us to opportunistically rotate investments with agility as the macroeconomic environment changes.
Chris Long: We remain very pleased with the credit quality of our portfolio, we attribute our strong credit performance to Psb's rigorous investment process.
Chris Long: We attribute our strong credit performance to PFBD's rigorous investment process. Focusing on larger companies with strong fundamentals in positions that are senior in the capital structure, In the past, we have discussed utilizing the strength of the Palmer Square platform to drive value for the BDC and its investors; having a differentiated source of financing capabilities was at the forefront of those conversations. Our credit facilities were always part of that equation and remain so today.
Chris Long: Focusing on larger companies with strong fundamentals and positions that are senior in the capital structure.
Chris Long: In the past we have discussed utilizing the strength of the Palmer square platform to drive value for the BDC and its investors.
Chris Long: Having a differentiated source of financing capabilities with at the forefront of those conversations our credit facilities were always part of that equation and remains so today.
Chris Long: Given the attractive nature of term-based financing in the CLO market, utilizing Palmer Square's relationships and expertise in the global CLO market could be another way to secure attractive financing for PSBD. With that, we are extremely pleased to report that on April 24th, Palmer Square Capital BDC through Palmer Square BDC CLO1, a wholly owned indirect subsidiary of PSBD, along with Bank of America as a ranging partner, priced a $400 million CLO secured by broadly syndicated loans held by PSBD.
Chris Long: Given the attractive nature of term based financing in the CLO market utilizing palmers congratulation chip and expertise in the global CLO market could be another way to secure attractive financing for <unk>.
Chris Long: With that we are extremely pleased to report that on April 24th Palmer Square capital BDC through Palmer Square BDC CLO, one our wholly owned indirect subsidiary of PSB, along with Bank of America is there any <unk> partner price, a 400 spot $5 million CLO secured by broadly syndicated loans.
Chris Long: <unk>.
Chris Long: We believe this unique issuance demonstrates our value proposition and ability to utilize the broader strength of the Palmer Square platform across the globe to execute innovative and attractive financing transactions to drive enhanced returns for shareholders. This CLO has a reinvestment period through 2029 and does not mature until 2037. With additional flexibility to refinance, its spreads will continue to tighten in the future. The offering is scheduled to close on May 23rd. We are incredibly excited about the long-term opportunity for our strategy, especially at this present moment in time, giving the compelling risk return we see in today's market. I will now hand the call over to Angie to discuss our outlook for the year.
Chris Long: We believe this unique issuance demonstrates our value proposition and ability to utilize the broader strength of the Palmer square platform across the globe to execute innovative and attractive financing transactions to drive enhanced returns for shareholders.
Angie: This CLO has a reinvestment period through 2029 and does not mature until 2037 with additional flexibility to refinance it spreads continued to tighten in the future. The offering is scheduled to close on May 23rd we're incredibly excited about the long term opportunity for our strategy.
Chris Long: Especially at this present moment in time, given the compelling risk return we see in today's market I will now hand, the call over to Angie to discuss our outlook for the year.
Angie Long: Thank you, Chris. While this call marks our second quarter as a public company, Palmer Square has a long track record of developing strategies and products that generate attractive yield and return opportunities for its clients. Sitting here today, broader equity indices continue to trade at or near all-time highs, despite macro and inflationary pressures. Investment-grade corporates, high-yield bonds, and other traditional credit instruments are trading near their 10-year tights on a spread basis, which means they're not attractive at all relative to history.
Angie: Thank you Chris well this call marks our second quarter as a public company Palmer square has a long track record of developing strategies and products that manufacturer attractive yield and return opportunities for its clients.
Angie Long: Sitting here today broader equity indices continue to trade at or near all time highs, despite macro and inflationary pressures.
Angie Long: That's a great corporate high yield bonds and other traditional credit instruments are trading near their 10 year tightened on a spread basis, which means they're not attractive at all relative to history.
Angie Long: On the other hand, with current base rates and continued attractive spreads in the broadly syndicated loan and larger private credit markets, PSVD continues to offer a compelling yield and total return profile, in our opinion, which makes us increasingly excited about managing PSVD in this type of environment. Looking across the broader credit universe, we strongly believe PSBD is strategically positioned to offer investors stable, risk-adjusted returns for the foreseeable future. With an approximate 12% annualized dividend yield at quarter end, PSVD, in our opinion, provides tremendous value for investors.
Angie Long: On the other hand with current base rates and continued attractive spreads in the broadly syndicated loan and larger private credit markets.
Angie Long: Phebe continues to offer a compelling yield and total return profile and our opinion, which makes us increasingly excited about managing PSV in this type of environment.
Angie Long: Looking across the broader credit universe, we strongly believe PSB is strategically positioned to offer investors stable risk adjusted returns for the foreseeable future.
Angie Long: With an approximate 12% annualized dividend yield at quarter end PSV in our opinion provide tremendous value for investors.
Angie Long: As mentioned on our last call in February, capital markets activity continued to pick up its pace in the first quarter of 2024, with refinancing activity leading the way. In the broadly syndicated market, companies were met with healthy demand, which allowed many borrowers to refinance their debt and push out maturities. In many cases, we saw borrowers from the private debt space return to the syndicated markets to refinance parts of their capital structure. In our view, these are all healthy signs of the capital markets working efficiently.
Angie Long: As mentioned on our last call in February capital markets activity continue to pick up its pace in the first quarter of 2024 with refinancing activity leading the way.
Angie Long: In the broadly syndicated market companies were met with healthy demand, which allowed many borrowers to refinance their debt and push out maturities and many cases, we saw borrowers from the private debt space return to the syndicated market to refinance parts of their capital structure and our view. These are all healthy signs of the <unk>.
Angie Long: Capital markets working efficiently.
Matt Bloomfield: Sponsor conversations around new LBO activity have also continued to pick up, which we think bodes well for an overall increase in new financing activity throughout 2024. We view the resurgence of the broadly syndicated loan market as another positive catalyst that will likely help jumpstart sponsor-related M&A activities. This further highlights the importance of having a nimble, opportunistic approach that can find attractive investment opportunities across market environments. The last three months saw the most robust first quarter of CLO activity since the global financial crisis and was 45% ahead of the first quarter of 2020.
Angie Long: Sponsor conversations around new LBO activity have also continued to pick up which we think bodes well for an overall increase in new financing activity throughout 2024.
Matt Bloomfield: We view the resurgence of the broadly syndicated loan market as another positive catalyst that will likely help jumpstart sponsor related M&A activity.
Matt Bloomfield: This further highlights the importance of having a nimble opportunistic approach that can find attractive investment opportunities across market environments.
Matt Bloomfield: Last three months southern most robust first quarter of CLO activity since the global financial crisis and was 45% ahead of the first quarter of 'twenty three.
Matt Bloomfield: In the first quarter of 2024, Palmer Square, as a firm, continued to be active in the CLL markets in both the U.S. and Europe. And, as Chris mentioned in his opening remarks, we used our strength in the market to secure attractive term-based financing for the BDC with our inaugural BDC CLL. Overall, we remain confident that the reopening of the syndicated market, record-high PE dry powder, and increasing demands from LPs for return of capital all point to a pickup in M&A activity over the medium term.
Matt Bloomfield: In the first quarter of 'twenty for Palmer square as a firm continues to be active in the CLO markets in both the U S and Europe.
Matt Bloomfield: And as Chris mentioned in his opening remarks, we used our strength in the market to secure attractive term based financing for the BDC with our inaugural BDC CLO.
Matt Bloomfield: Overall, we remain confident that the reopening of the syndicated market record high p/e dry powder and increasing demands from Lps for return of capital all point to a pickup in M&A activity over the medium term.
Matt Bloomfield: We see a robust need and market for both syndicated and direct loans, which positions Palmer Square Capital BDC as a lender of choice. With that said, I'd like to hand the call over to Matt, who will discuss our portfolio and investment activities.
Matt Bloomfield: We see a robust need end market for both syndicated and direct loans, which positions Palmer square capital BDC as a lender of choice.
Matt Bloomfield: Turning to our portfolio and investment activity for the first quarter, our total investment portfolio had a fair value at March 31, 2024, of approximately $1.4 billion across 39 industries that demonstrate strong credit quality, as well as our focus on having one of the most diverse portfolios among our peers. This compares to a fair value of $1.1 billion at the end of fiscal year 2023, reflecting sequential growth of approximately 26%. In the first quarter, we invested $346 million of capital, which included 54 investment commitments at an average value of approximately $4.7 million. During the same period, we realized approximately $70 million through repayments and sales. This speed of deployment can be attributed to PSBD's differentiation in the markup.
Matt Bloomfield: With that I'd like to hand, the call over to Matt, who will discuss our portfolio and investment activity.
Speaker Change: Thank you Andy.
Matt Bloomfield: Turning to our portfolio and investment activity for the first quarter.
Matt Bloomfield: Our total investment portfolio had a fair value at March 31, 2024 of approximately $1 4 billion across 39 industries that demonstrates strong credit quality as well as our focus of having one of the most diverse portfolios among our peers.
Matt Bloomfield: This compares to a fair value of $1 1 billion at the end of fiscal year 2023, reflecting sequential growth of approximately 26%.
Matt Bloomfield: In the first quarter, we invested $346 million of capital, which included 54 investment commitments at an average value of approximately $4 7 million during.
Matt Bloomfield: During the same period, we realized approximately $70 million through repayments and sales.
Matt Bloomfield: This speed of deployment can be attributed to PSB differentiation in the marketplace. As a reminder, our strategy focuses on large companies with stable recurring revenue streams, while underwriting cyclical industries.
Matt Bloomfield: As a reminder, our strategy focuses on large companies with stable recurring revenue streams while underweighting cyclical investments. Our analysts are organized by industry, which is intentional due to our core beliefs that trends come by industry and not credit rating. Because of this deliberate strategy, we have a large pool of accessible loans that have been proactively evaluated by our Investment Committee, and the liquid nature of our portfolio allows us to deploy capital with extraordinary efficiency, as opposed to waiting to source and originate new deals.
Matt Bloomfield: Our analysts are organized by industry, which is intentional due to our core beliefs, the trends come by industry and not credit ratings.
Matt Bloomfield: Because of this deliberate strategy, we have a large pool of accessible loans that have been proactively evaluated by our investment committee and the liquid nature of our portfolio allows us to deploy capital with extraordinary efficiency as opposed to waiting to source and originate new deals.
Matt Bloomfield: We believe that the ability to execute with speed while remaining disciplined and mitigating risk offers our shareholders meaningful upside compared to the broader direct lending universe. Looking back at the first quarter, I wanted to highlight key portfolio statistics that underscore our belief that PSBD represents one of the most compelling investment opportunities in the sector. As of March 31st, PSBD shares offered an annualized dividend yield of 12% on a portfolio focused on first lien, floating rate, liquid security.
Matt Bloomfield: We believe that the ability to execute with speed, while remaining disciplined and mitigating risk offers our shareholders meaningful upside compared to the broader direct lending universe.
Matt Bloomfield: Looking back at the first quarter I wanted to highlight key portfolio statistics, which underscore our belief at PSB represents one of the most compelling investment opportunities in the sector.
Matt Bloomfield: As of March 31, <unk> shares offered an annualized dividend yield of 12% on a portfolio focused on first lien floating rate liquid securities and.
Matt Bloomfield: In our opinion, this provides investors with a very attractive total return opportunity in a market where spreads are tightening, and our NAV has further upside potential. At the end of the first quarter, our weighted average total yield to maturity of debt and income-producing securities at fair value was 10.1%, and our weighted average total yield to maturity of debt and income-producing securities at amortized cost was 9.1%. Our investors benefit from our highly diversified portfolio of high-quality sectors and borrowers.
Matt Bloomfield: In our opinion this provides investors with a very attractive total return opportunity in a market where spreads are tightening and our NAV has further upside potential.
Matt Bloomfield: At the end of the first quarter, our weighted average total yield to maturity of debt and income producing securities at fair value was 10, 1% and our weighted average total yield to maturity of debt and income producing securities at amortized cost was nine 1%.
Matt Bloomfield: Our investors benefit from our highly diversified portfolio of high quality sectors and borrowers.
Matt Bloomfield: At the end of the first quarter of 2024, our largest portfolio exposures based on industry included software, healthcare, professional services, and insurance, all industries that we believe offer highly stable and growing income profiles. Furthermore, the 10 largest investments account for only 9.7% of the overall portfolio.
Matt Bloomfield: At the end of the first quarter of 2024, our largest portfolio exposures based on industry included software healthcare professional services and insurance.
Matt Bloomfield: All industries that we believe offer highly stable and growing income profiles.
Matt Bloomfield: Furthermore, the 10 largest investment account for only nine 7% of the overall portfolio. We believe these factors point to industry, leading diversification, which will continue to drive strong credit performance across market cycles.
Matt Bloomfield: We believe these factors point to industry-leading diversification, which will continue to drive strong credit performance across market cycles. Our portfolio is 96% senior secured, with an average hold size of approximately $5 million. On a fair value-weighted basis, our first lien borrowers have a weighted average EBITDA of $452 million, senior secured leverage of 5.3 times, and interest coverage of 2.2 times. We believe that these metrics compare very favorably with the best in class portfolios trading at a premium in public markets.
Matt Bloomfield: Our portfolio is 96% senior secured with an average hold size of approximately $5 million.
Matt Bloomfield: On a fair value weighted basis, our first lien borrowers have a weighted average EBITDA of $452 million.
Matt Bloomfield: <unk> secured leverage of five three times and interest coverage of two two times we.
Matt Bloomfield: We believe that these metrics compare very favorably with the best in class portfolio is trading at a premium and public markets.
Matt Bloomfield: Our focus on liquid loans to larger companies with solid fundamentals in positions that are senior in the capital structure has yielded strong credit outcomes, including an average internal rating of 3.6 on a fair value-weighted basis for all loan investors and no debt investments on non-approved status as of the end of the first quarter. Unlike traditional middle market risk systems, we have a unique relative value-based scoring system that allows our team to ascertain where the best relative value resides in the portfolio.
Matt Bloomfield: Our focus on liquid loans to larger companies with solid fundamentals and positions that are senior in the capital structure has yielded strong credit outcomes, including an average internal rating of three 6% on a fair value weighted basis for all loan investments and no debt investments on nonaccrual status as of the end.
Matt Bloomfield: The first quarter.
Matt Bloomfield: Unlike traditional middle market risk systems, we have a unique relative value based scoring system that allows our team to ascertain where the best relative value resides and to reflect that in the portfolio. It's.
Matt Bloomfield: It's a dynamic system that's updated quarterly, but given the size of the markets we participate in, the scores are updated in real time when warranted. Subsequent to quarter end, one loan, representing approximately 15 basis points of our total investments at fair value, has been moved to non-approval status. We believe this to be an idiosyncratic event and remain in active dialogue with management to resolve the situation. In the first quarter, we also removed three names from our watch list as credit performance continued to improve. Now I'd like to turn it over to Jeff, who will review our first quarter 2024 financial results.
Matt Bloomfield: It's a dynamic system, that's updated quarterly but given the size of the markets. We participate in the scores are updated in real time when warranted.
Jeff: Subsequent to quarter end, one loan representing approximately 15 basis points of our total investments at fair value has been moved to non accrual status. We believe this to be an idiosyncratic event and remain in active dialogue with management to resolve the situation.
Jeff: In the first quarter. We also removed three names from our watch list as credit performance continues to improve.
Matt Bloomfield: Now I'd like to turn it over to Jeff who will review, our first quarter 2024 financial results.
Jeff Fox: Thank you, Matt. We were very pleased with our first quarter results. The total investment income was $34.8 million for the first quarter of 2024, up 33% from $26.2 million for the prior year period. This increase was primarily driven by growth in our portfolio, as well as interest income from our investments. Total net expenses for the first quarter were $18.5 million, compared with $12.6 million for the prior year period. The increase in expenses compared to the prior year was driven by higher interest expense in line with our portfolio expansion, as well as the implementation of our management incentive fee at the time of the IPO.
Jeff: Thank you, Matt we were very pleased with our first quarter results.
Jeff Fox: The total investment income was $34 8 million for the first quarter of 2024 up 33% from $26 2 million for the prior year period.
Jeff Fox: This increase was primarily driven by the growth in our portfolio as well as the interest income from our investments.
Jeff Fox: Total net expenses for the first quarter were $18 5 million compared with $12 6 million for the prior year period.
Jeff Fox: The increase in expenses compared to the prior year was driven by higher interest expense in line with our portfolio expansion as well as the implementation of our management incentive fee at the time of the IPO.
Jeff Fox: Net investment income for the first quarter of 2024 was $16.3 million, or $0.52 per share, compared to $13.6 million or $0.55 per share for the comparable period last year. During the first quarter of 2024, the company had total net realized and unrealized gains of $6.6 million, compared with $14.5 million in the first quarter of 2023. NAF per share was $17.16, up from $17.04 at the end of the fourth quarter, representing a 0.7 percent increase sequentially.
Jeff Fox: Net investment income for the first quarter of 2024 was $16 3 million or <unk> 52 per share compared to $13 6 million or <unk> 55 per share for the comparable period last year.
Jeff Fox: During the first quarter of 2024, the company had total net realized and unrealized gains of $6 $6 million compared with $14 5 million in the first quarter of 2023.
Jeff Fox: NAV per share was $17 16.
Jeff Fox: Up from $17 <unk> at the end of the fourth quarter, representing a 7% increase sequentially.
Jeff Fox: As a reminder, the March NAF also reflects the payment of a 49-cent dividend in line with the dividend policy we announced in late March. The quarterly distribution is comprised of a base dividend of 42 cents and a supplemental dividend of 7 cents per share. Moving on to our balance sheet, As of March 31st, 2024, total assets were $1.4 billion, and total net assets were $559 million. At the end of Q1, our debt-to-equity ratio was 1.42 times, compared with 1.39 times at the end of Q4. Available liquidity, consisting of cash and undrawn capacity on our credit facilities, was approximately $110 million. This compares to $30.8 million of undrawn investment commitment.
Jeff Fox: As a reminder, the March snap also reflects the payment of a 49% dividend in line with the dividend policy, we announced in late March the.
Jeff Fox: Quarterly distribution is comprised of a base dividend of <unk> 42.
Jeff Fox: And a supplemental dividend of <unk> <unk> per share.
Jeff Fox: Moving to our balance sheet.
Jeff Fox: As of March 31, 2024, total assets were $1 4 billion in total net assets were $559 million.
Jeff Fox: At the end of Q1, our debt to equity ratio was 142 times compared with $1 three nine times at the end of Q4.
Jeff Fox: Available liquidity, consisting of cash and Undrawn capacity on our credit facilities was approximately $110 million. This compares to $38 million of Undrawn investment commitments.
Jeff Fox: On March 29, 2024, we entered into an amendment of the B of A credit facility to extend the maturity to February of 2028. Further details of this transaction can be found in our 10-Q. As a reminder, our Board of Directors approved a stock repurchase plan to acquire up to $20 million of PSBD common stock. This program expires on January 17, 2025.
Jeff Fox: On March 29, 2024, we entered into an amendment of the Bofa credit facility to extend the maturity to February of 2028.
Jeff Fox: Further details for this transaction can be found in our 10-Q.
Jeff Fox: As a reminder, our board of directors approved a stock repurchase plan to acquire up to $20 million of <unk> common stock. This program expires on January 17th 2025. Additionally, Palmer square capital management, but the authorized an incremental $5 million repurchase program that will raise the total authorization up to.
Jeff Fox: Additionally, Palmer Square Capital Management has authorized an incremental $5 million repurchase program that will raise the total authorization up to $25 million moving forward. On May 7th, the Board of Directors announced that it declared a second quarter 2024 base dividend of $0.42 per share. In line with the dividend policy we formalized during the first quarter, we plan to announce the supplemental component of the dividend in June. Given the liquid nature of our loans in the portfolio, calculating this portion of the dividend requires an extended period to allow for repayment settlement.
Jeff Fox: $25 million moving forward.
Jeff Fox: On May seven the board of directors announced that it declared a second quarter 2024 base dividend of <unk> 42 per share in line with the dividend policy. We formalized during the first quarter, we plan to announce the supplemental component of the dividend in June.
Jeff Fox: The liquid nature of our loans in the portfolio calculating this portion of the dividend requires an extended period to allow for repayment settlements.
Jeff Fox: The supplemental distribution will be paid out of the excess of PFBD's quarterly undistributed net investment income above the base quarterly distribution amount of $0.42 per share. We are positioned to demonstrate high and attractive levels of investment income across our portfolio and strong credit performance across our borrowers, while mitigating risk wherever possible. With that, I'd like to open up the call to questions.
Jeff Fox: The supplemental distribution will be paid out of the excess of Psb's quarterly undistributed net investment income above the base quarterly distribution amount of <unk> 42 per share.
Jeff Fox: We are positioned to demonstrate high and attractive levels of investment income across our portfolio and strong credit performance across our borrowers while mitigating risks wherever possible.
Speaker Change: With that I'd like to open up the call for questions.
Operator: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via the loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue, and your first question comes from Melissa Wendel on behalf of J.P. Morgan. Please go ahead.
Speaker Change: We will now begin the question and answer session.
Melissa Wendel: You'd have to ask Ian would like to ask a question. Please.
Operator: Please press star one on your telephone keypad to raise their hand and joined the queue. If you would like to withdraw your question simply press Star. One again, if you are called upon to a straight question that are in listen only biologic regarding on device. Please pick up your handset and ensured that you're falling snap on mute when asking a question again press star one to join the queue.
Melissa Wendel: And your first question comes from the line ultimately user window with Jpmorgan. Please go ahead.
Operator: Yeah.
Melissa Wendel: Thanks for taking my questions today. First, I wanted to clarify or just notice the decline in portfolio yield. I think it was roughly maybe 40 base points or so, quarter over quarter, with base rates being changed a little bit less than that. I was just wondering if there was maybe a little bit of drag on yield from the timing of cash flows during the quarter and proceeds from the IPO. Or was that really a function of some spread narrowing during the quarter?
Melissa Wendel: Thanks for taking my questions today.
Melissa Wendel: First wanted to clarify.
Melissa Wendel: The decline in portfolio yield I think that's wrong.
Melissa Wendel: Rob 40, maybe 40 basis points or so.
Melissa Wendel: Quarter over quarter.
Melissa Wendel: Base rates being changed a little bit less than that I was just wondering if there was maybe a little bit of drag on yield.
Melissa Wendel: The timing of cash flows during the quarter and proceeds from the IPO.
Melissa Wendel: Or was that really a function of some spread narrowing during the quarter.
Melissa Wendel: Okay.
Matt Bloomfield: Hey Melissa, it's Matt. Thanks for the question. Yeah, I think to the first part of your question, we raised the funds kind of late January, so there was certainly, you know, just deploying those while we were, you know, pretty quick and had a lot of assets already identified to work. There was certainly a little bit of incremental drag from that. You know, base rates, I'd say, are a very small piece of that puzzle.
Melissa Wendel: Hey, Melissa it's Matt. Thanks for the question, Yes, I think to the first party of your.
Matt Bloomfield: Question.
Matt Bloomfield: Raised the proceeds.
Matt Bloomfield: Kind of late January so there was certainly just the.
Matt Bloomfield: Pulling those while we were.
Matt Bloomfield: Pretty pretty quick and had a lot of assets already identified.
Matt Bloomfield: The three-month SOFR, you know, did come off a few basis points during the quarter, and then on the margin, there was also just a small amount of spread compression, I'd say. That wasn't a huge percentage, just a couple of basis points in total, but the kind of time to deploy those assets made up the bulk of that.
Matt Bloomfield: The work there was certainly a little bit of incremental drag from that.
Matt Bloomfield: Base rates I would say very small piece of that puzzle. The three month Sofer did come up a few basis points during the quarter.
Matt Bloomfield: And then on the margin also just a small amount of spread compression I would say that wasn't.
Matt Bloomfield: A huge percentage of just a couple of basis points in total but the.
Matt Bloomfield: Kind of the time to deploy those assets, making up the bulk of that.
Melissa Wendel: OK, that's that's very helpful. Thank you.
Matt Bloomfield: Okay.
Speaker Change: Very helpful. Thank you and then.
Speaker Change: Secondly, I was hoping that you could touch on even though it's small the non accrual that you announced post quarter end.
Speaker Change: Hi, Thank you your prepared comments referenced working with management through that situation.
Melissa Wendel: Yes.
Melissa Wendel: Guys have had really low non accruals.
Speaker Change: Since formation or not maybe.
Speaker Change: Going forward is this is this indicative of sort of how you approach working through any sort of non performing assets or.
Speaker Change: The curse me that because you guys have more exposure to more liquid investments that you could rotate.
Melissa Wendel: Any nonperforming assets, a little bit faster than maybe some other bdcs.
Melissa Wendel: Okay.
Speaker Change: How should we think about you guys managing through scenarios like that in the future. Thank you.
Melissa Wendel: And then secondly, I was hoping that you could touch on, even though it's small, the non-accrual that you announced post-quarter end. I think your prepared comments reference working with management through that situation. I guess, you know, you guys have had really low non-accrual. You know, since formation or not, maybe going forward, is this indicative of sort of how you approach working through any sort of non-performing assets or, you know, it occurs to me that because you guys have more exposure to more liquid investments, you could rotate out of any non-performing assets a little bit faster than maybe some others. But how should we think about you guys managing real scenarios like that in the future? Thank you.
Melissa Wendel: Let's say, it's Chris long. Thank you for the Great question and thank you for also recognizing highlighting we have had a zero percent non accrual rate.
Chris Long: Melissa, it's Chris Long. Thank you for the great question. I think, thank you for also recognizing and highlighting that we have had a 0% non-accrual rate since inception. We, from a management perspective, you know, believe that that's really a hallmark of what we do, so I just want to put that on the record that that's sort of the expectation of how we think about things. To the second part of your question, pass it over to Matt to address that one specifically. Yeah, I think, you know.
Chris Long: Since inception, we from a management perspective believe that that really is a hallmark of what we do so I just want to put that on the record that thats sort of the expectation of how we think about things and then to the second part of your question her pass it over to Matt to address that one specifically, yes, I think we certainly do have the ability.
Matt Bloomfield: Yeah, I think we certainly do have the ability, from the liquidity standpoint, to rotate out when it makes sense, but I'd say, historically speaking, across our platforms, when we do come into these situations, it's always an asset-by-asset evaluation, and we're looking to maximize the ultimate recovery for our funds. And so in this case, as well as others that may arise, we think there's significant upside value to this business on a go-forward basis with a bit of a restructured capital structure.
Matt Bloomfield: From a liquidity standpoint.
Matt Bloomfield: To rotate out when it makes sense, but I would say historically.
Matt Bloomfield: Speaking across our platforms when we do come into these situations, that's always an asset by asset evaluation.
Matt Bloomfield: And where we're looking to maximize the ultimate recovery for our funds and so this case as well as other that may arise.
Matt Bloomfield: We think there's significant upside value to this business on a go forward basis with a bit of a restructured capital capital structure. So in this particular instance, we do think there is incremental.
Matt Bloomfield: So in this particular instance, we do think there's incremental recovery to be had by working through the process. So that's what we're doing here in real time, and how we evaluate each situation on its own merits going forward, and if we think that something's priced rich for its recovery, we can certainly then utilize the liquidity of our markets to rotate out of that. But in this situation, we think there's more value to be had, so we're kind of going through that process.
Matt Bloomfield: Recovery to be had by kind of working through the process. So that's kind of what we're what we're doing here in real time and.
Matt Bloomfield: And how we evaluate each each situation on its own merits on a go forward and if we if we think that somethings priced rich to its recovery. We can certainly then utilize the liquidity of our markets.
Matt Bloomfield: Rotate out of that but in this situation. We think there is more value to be had so we're kind of going through that process.
Melissa Wendel: I appreciate that. Thanks, you guys.
Speaker Change: I appreciate that thank you guys.
Operator: Again, if you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. Your next question comes from the line of Kenneth Lee with RBC Capital Markets. Please go ahead.
Melissa Wendel: Again, if you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.
Operator: During a question simply press star one again.
Operator: Your next question comes from the line of Kenneth Lee with RBC capital markets. Please go ahead.
Kenneth Lee: Hey, good afternoon. Just one on the new investments activity in the quarter. I saw some activity within the collateralized security structured products area. Wondering if you could just talk a little bit more about the relative value that you're seeing within that category. Thanks.
Kenneth Lee: Hey, good afternoon. Thanks for taking my question just one on the new investment activity in the quarter.
Kenneth Lee: Saw some activity within the collateralized securities structured products area wondering if you could just talk a little bit more about the relative value that youre seeing within that category. Thanks.
Kenneth Lee: Okay.
Matt Bloomfield: Yeah, hi Ken, it's Matt. Thanks for the question.
Kenneth Lee: Yes, Hi, Ken it's Matt. Thanks for the question, yes. So when we went into the IPO, we had our kind of model portfolio of assets that we wanted to target.
Matt Bloomfield: Yeah, so, when we went into the IPO, we had our, you know, kind of model portfolio of assets that we wanted to target. But I would say, you know, we did see some pretty strong relative value in the BB mezzanine market for CLO tranches, really, you know, starting in the back half of last year and continuing in the first quarter of this year. You know, as you've probably seen, the CLO market has been incredibly robust to start this year.
Matt Bloomfield: But I would say, we did see some pretty strong relative value in the double b mezzanine market for CLO tranches really starting in the back half of last year and continuing in the first quarter of this year.
Matt Bloomfield: And so we found some value in some new issue BBs, as well as some very attractively priced secondary mezz. So we did take advantage of that a little bit in the quarter and took that up, but, you know, small percentage, but certainly when you look at all yields in that market relative to what you're seeing on some of the corporate side, you know, certainly utilized our platform across the Palmer Square organization to take advantage of some of that.
Matt Bloomfield: And as you've probably seen the CLO market has been incredibly robust to start this year and so we found some value and some new issue <unk> as well as some some very attractively.
Matt Bloomfield: Secondary.
Matt Bloomfield: So we did take advantage of that a little bit in the quarter and took that up a small percentage, but certainly when you look at all in yields.
Matt Bloomfield: And that market relative to what youre seeing on some of the corporate side.
Matt Bloomfield: Certainly utilize our platform across the Palmer square organization to take advantage of some of that.
Kenneth Lee: Gotcha. Very helpful there. And just one follow-up, if I may, on the broadly syndicated loan markets. Thanks again for the color and the prepared remarks. I wonder if you could just share your thoughts around the relative attractiveness between the primary and secondary markets within the BSLs right now.
Speaker Change: Got you very helpful. There and just one follow up.
Kenneth Lee: In terms of the broadly syndicated loan markets. Thanks again for the color in the prepared remarks I Wonder if you just share your thoughts around the relative attractiveness between the primary and secondary markets within the sales right now thanks.
Matt Bloomfield: Yeah, you bet. I'd say, you know, a lot of what we're seeing in the primary market still has been more, frankly, on the refinancing side of things than on pure new issue. You know, there are certainly a lot of conversations going on, and a lot of early looks. And so we do expect, you know, pure new issue activity to continue to increase throughout the year. But the bulk of the first quarter and kind of what you saw in our repayment activity was more so on the refinancing side of things.
Speaker Change: Yes, you bet I would say.
Kenneth Lee: Lot of what we're seeing in the primary market still has been more frankly on the refinancing side of things than on pure new issue.
Matt Bloomfield: There are certainly a lot of conversations going on a lot of early looks and so we do expect pure new issue activity to continue to increase throughout the year, but the bulk of the first quarter and kind of what you saw in our repayment activity was more so on the refinancing side of things. So theres been some some good companies to kind of stay involved in through that refinancing.
Matt Bloomfield: So there are some good companies to kind of stay involved with through that refinancing activity. But to the other part of your question, you know, there's still some very interesting things to do in the secondary market. You know, it's a $1.4 trillion market that we're navigating through. And so, just by the nature of that size, there are just a lot of interesting things to continue to do from a secondary standpoint. So with our deployment in the first quarter, you know, the vast majority of that was secondary. And we still think there are some good things to do there as well.
Matt Bloomfield: <unk>.
Matt Bloomfield: To the other part of your question there is still some some very interesting things to do in the secondary market.
Matt Bloomfield: It's a one four trillion market that we navigate through and so just by the nature of that size. There's just a lot of interesting things to continue to do from a secondary standpoint, so with our deployment in the first quarter. The vast majority of that was secondary.
Matt Bloomfield: And we still think there is some some good things to do there as well.
Matt Bloomfield: Okay.
Kenneth Lee: Great. Very helpful there. Thanks again.
Speaker Change: Great very helpful. There. Thanks again.
Kenneth Lee: Okay.
Operator: Again, if you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. Our next question comes from the line of Phyllis Abraham with UBS. Please go ahead.
Kenneth Lee: Again, if you would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Phyllis Abraham: Our next question comes from the line of.
Phyllis Abraham: Zebra with UBS. Please go ahead.
Operator: Okay.
Phyllis Abraham: Hey, everybody. Thanks for the question. Just on spreads, you know, you touched on spreads getting a little bit tighter as we've been seeing and hearing. Can you talk a little bit specifically, though, about kind of what you know what levels are now and just put that into a little bit of context in terms of what you've seen over the years and just kind of how you think that plays out throughout this year?
Phyllis Abraham: Hey, everybody. Thanks for the question.
Phyllis Abraham: Just on spread you know you touched on spreads getting a little bit tighter as we've.
Phyllis Abraham: Are you seeing and hearing can you talk a little bit specifically, though about kind of what you know what levels are now and just put that into a little bit of context.
Phyllis Abraham: In terms of what you've seen over over the years.
Phyllis Abraham: Kind of how you think that plays out throughout throughout this year.
Phyllis Abraham: Yes.
Matt Bloomfield: Yeah, certainly. It's Matt again.
Speaker Change: Yes, certainly.
Matt Bloomfield: It's Matt again.
Matt Bloomfield: I would say in the broadly syndicated market.
Matt Bloomfield: Frankly speaking, we've seen less spread compression.
Matt Bloomfield: And we've seen in the upper end of the private credit space.
Matt Bloomfield: And that private credit arena.
Matt Bloomfield: Year to year and a half ago, you were looking at so for 600 to 650 type spreads.
Matt Bloomfield: Yes, we're kind of down the fairway of unit tranche.
Matt Bloomfield: You've seen some pretty meaningful spread tightening going on there were some deals have now gotten done below 500.
Matt Bloomfield: You know, I'd say in the broadly syndicated market, you know, frankly speaking, we've seen less spread compression than we've seen in the upper end of the private credit space, you know, in that private credit arena, you know, you know, year, year and a half ago, you were looking at, you know, so for 600 to 650 type spreads, you know, for kind of a down the fairway unit tranche, you know, you've seen some pretty meaningful spread tightening going on there, where some deals have now gotten done below 500. So pretty, pretty dramatic, you know, from a spread compression perspective there.
Matt Bloomfield: So pretty pretty dramatic.
Matt Bloomfield: Spread compression perspective, there on the syndicated loan side of things.
Matt Bloomfield: Spreads are still a bit why do their 10 year average.
Matt Bloomfield: When you look across all other credit arenas, whether it's high yield.
Matt Bloomfield: Spreads in some cases testing through their 10 year type loans still screen pretty attractive to us, especially with the floating base rate perspective now.
Matt Bloomfield: On the syndicated loan side of things, you know, spreads are still a bit wide of their 10 year average. So when you look across all other credit arenas, whether it's IG, high yield, you know, with spreads, you know, in some cases, you know, testing through their 10 year types, loans still screen pretty attractive to us, especially with the floating base rate perspective. Now, that being said, even in April, we have started to see some repricing activity hit our market, you know, akin to what some of the larger private credit structures have seen as well. So, you know, certainly not immune to that. But still, I think on a relative basis, you're still pretty attractive in our view relative to its long-term history.
Matt Bloomfield: Now that being said even in April we have started to see some some repricing activity hit our market.
Matt Bloomfield: Akin to what some of the larger private credit structures have seen as well, so certainly not immune to that but still I think on a relative basis.
Matt Bloomfield: There is still pretty attractive in our view relative to its long term history.
Phyllis Abraham: Okay. And then going forward this year, would you say that just the volume of deal activity is probably the biggest driver here of which direction spreads go?
Speaker Change: Okay, and then going forward. This year would you say that just the volume of deal activity is probably the biggest driver here on which direction spreads go.
Matt Bloomfield: Yeah, I think that's right. You know, supply and demand is always going to be, you know, a big part of what kind of drives the market and, certainly, credit quality and how companies are performing. And so I think, you know, we continue to be pleased with the overall trajectory of credit performance. And in some cases, that will warrant some tightening, but I'd say more so to your point on capital markets activity, you know, as new issue does pick up, which we do expect to happen, that will put, you know, a natural cap on how tight, you know, spreads can tighten just from a volume of issuance standpoint, which, you know, is pretty, pretty typical from what we've seen, historically speaking.
Speaker Change: Yes, I think thats right supply demand is always going to be a big part of what kind of drives the market and certainly credit quality and how companies are performing and so I think we continue to be pleased with the overall trajectory of credit performance and in some cases that will warrant some some tightening but I'd say more so to your to.
Matt Bloomfield: Your point on capital markets activity.
Matt Bloomfield: As new issue does pick up.
Matt Bloomfield: We do expect to happen that will put.
Matt Bloomfield: A natural cap on how tight spreads can tighten just from from a volume of issuance standpoint, which is pretty pretty typical from from what we've seen historically speaking.
Angie Long: This is Angie. I do think, you know, spread tightening for our existing portfolio, which is still, you know, several assets trading at a discount that does represent price appreciation, which will, you know..., those price depreciations will improve the NAB. So I think, you know, thread tightening, while on anything we may buy that's new is not favorable, spread tightening for anything that we already own is great.
Matt Bloomfield: This is Andrew I do think also.
Angie Long: Spread tightening for our existing portfolio, which is still.
Angie Long: Several assets trading at a discount.
Angie Long: Does represent a price appreciation.
Angie Long: Yes.
Angie Long: Those price depreciations will improve the math, so I think.
Angie Long: Spread tightening.
Angie Long: We may buy that that's new.
Angie Long: Is not.
Angie Long: Not favorable spread tightening for anything that was already on its great.
Phyllis Abraham: Got it. Makes sense. And just one more, just on leverage, any latest thoughts there? It looks like you guys are comfortably in your range, but anything new that you'd add to how you're thinking about that?
Speaker Change: Got it makes sense and just one more just on on leverage any any latest thoughts there.
Phyllis Abraham: Looks like you guys are comfortably in your in your range, but.
Phyllis Abraham: Anything new that you would add to how youre thinking about that.
Matt Bloomfield: No, you know, as Angie mentioned last call, the current environment is kind of this range where we feel comfortable, but we can certainly, with the type of portfolio that we have and some of the liquidity that we can utilize, we can toggle that up and down pretty quickly. So I'd say nothing's really changed from last quarter in our view on that other than, you know, we did announce the CLO issuance from a capital structure diversification standpoint, you know, that'll be leveraged neutral to the BDC, but did take advantage of a lot of the spread tightening that we're talking about on the liability side of things to put some really nice term-based financing into the capital structure for the BDC. Yeah, I understand you again just now.
Speaker Change: No I think.
Phyllis Abraham: As Andy had mentioned last call in the current environment is kind of this range is where we feel comfortable.
Matt Bloomfield: But we can certainly with the.
Matt Bloomfield: The type of portfolio that we have in some of the liquidity that we can utilize.
Matt Bloomfield: And we can toggle that up and down pretty quickly. So I would say nothing has really changed from last quarter and our view on that other than we did announce the CLO issuance.
Matt Bloomfield: From a from a capital structure diversification standpoint.
Matt Bloomfield: That will be leverage neutral to the BDC, but did take advantage of a lot of the spread tightening that we're talking about on the liability side of things too to put some really nice term based financing.
Matt Bloomfield: Into the capital structure for the BDC.
Angie Long: Again, just to add, we feel comfortable with where the leverage is now. We are obviously nimble and able to move, but the most important thing we've been focusing on is the structure of that borrowing and extending terms on existing facilities and then, obviously, doing a very significant term out with the CLO issuance.
Matt Bloomfield: Sanjay again, just just to add.
Angie Long: We're comfortable with where the leverage is now.
Phyllis Abraham: Got it. Very helpful. Thank you.
Angie Long: We are obviously nimble and able to can move but the most important thing we've been focusing on is the structure of that borrowing and extending terms on existing facilities and then obviously doing a various significant term out with the CLO issuance.
Phyllis Abraham: Got it very helpful. Thank you.
Phyllis Abraham: Okay.
Operator: Again, if you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. There are no more questions at this time, and that concludes our Q&A session. I will now turn the conference back over to Chris Long for closing remarks.
Speaker Change: Again, if you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.
Operator: Okay.
Chris Long: There are no more questions at this time and that concludes our Q&A session. I will now turn the conference back over to Chris <unk> for closing remarks.
Chris Long: On behalf of the management team, we greatly appreciate your support of Palmer Square Capital BDC. As we look to the remainder of the year, PSBD has a clear, differentiated investment strategy that we believe will deliver strong, risk-adjusted returns and shareholder value amid any market environment. We look forward to providing an update on our second quarter 2024 earnings call in August. Thank you so much.
Chris Long: On behalf of the management team we greatly appreciate your support of Palmer Square capital BDC as we look to the remainder of the year <unk> has a clear differentiated investment strategy, which we believe will deliver strong risk adjusted returns and shareholder value amid any market environment, we look forward to.
Chris Long: Adding an update on our second quarter 2024 earnings call in August.
Chris Long: So much.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.
Operator: Please wait. The conference will begin shortly.
Speaker Change: Please wait the conference will begin shortly.
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