Palmer Square Capital BDC Inc (PSBD) 2024 Q3 法說會逐字稿

Welcome to Palmer Square Capital BDC's Third Quarter 2024 Earnings Call.

歡迎參加 Palmer Square Capital BDC 2024 年第三季財報電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded.

（操作員指示）提醒一下，本次電話會議正在錄音。

At this time, I'd like to turn the call over to Andrew Wedderburn-Maxwell, Investor Relations.

現在，我想將電話轉給投資者關係部的安德魯‧韋德伯恩‧麥克斯韋爾 (Andrew Wedderburn-Maxwell)。

Andrew, you may begin.

安德魯，你可以開始啦。

Welcome to Palmer Square Capital BDC's Third Quarter 2024 Earnings Call.

歡迎參加 Palmer Square Capital BDC 2024 年第三季財報電話會議。

Joining me this afternoon are Chris Long, Chairman and Chief Executive Officer; Angie Long, Chief Investment Officer; Matt Bloomfield, President; and Jeff Fox, Chief Financial Officer, and Director.

今天下午與我一起出席的還有董事長兼執行長克里斯朗 (Chris Long)；安吉·朗 (Angie Long)，首席投資長；馬特·布魯姆菲爾德（Matt Bloomfield），總裁；以及財務長兼董事 Jeff Fox。

Palmer Square Capital BDC's Third 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.

Palmer Square Capital BDC 的 2024 年第三季財務表現已於今天稍早發布，也可以在 Palmer Square 的投資者關係網站 palmersquarebdc.com 上查閱。我們還安排了今天活動的重播，可在接下來的六個月內在我們的網站上觀看。

During this call, I want to remind you that the forward-looking statements we make are based on current expectations.

在這次電話會議中，我想提醒您，我們所做的前瞻性陳述是基於目前的預期。

The statements on this call that are not purely historical are forward-looking statements.

本次電話會議中非純歷史性的陳述均為前瞻性陳述。

These forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements, including and without limitation, market conditions caused by uncertainty surrounding interest rates, changing economic conditions and other factors we identified in our filings with the SEC.

這些前瞻性陳述並不能保證未來的業績，並且受不確定性和其他因素的影響，這些因素可能導致實際結果與前瞻性陳述中表達的結果存在重大差異，包括但不限於由利率不確定性、經濟狀況變化和我們向美國證券交易委員會提交的文件中確定的其他因素所導致的市場條件。

Although we believe the assumptions on which these forward-looking statements are based on 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.

儘管我們相信這些前瞻性聲明所基於的假設是合理的，但任何假設都可能被證明是不準確的，因此，基於這些假設的前瞻性陳述可能是不正確的。

You should not place undue reliance on these forward-looking statements.

您不應過度依賴這些前瞻性陳述。

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.

本次電話會議中所做的前瞻性陳述截至本電話會議之日為止，除非法律要求，Palmer Square Capital BDC 不承擔更新前瞻性陳述的義務。

To obtain copies of SEC related filings, please visit our website at palmersquarebdc.com.

若要取得 SEC 相關文件的副本，請造訪我們的網站 palmersquarebdc.com。

With that, I will now turn the call over to Chris Long.

說完這些，我現在將電話轉給克里斯朗。

Good afternoon, everyone.

大家下午好。

Thank you for joining us today for Palmer Square Capital BDC's Third Quarter 2024 Conference Call.

感謝您今天參加 Palmer Square Capital BDC 2024 年第三季電話會議。

Today, I will begin by providing an overview of the quarterly highlights, then turn the call to the team to discuss our market outlook, portfolio, and financial performance.

今天，我將首先概述季度亮點，然後與團隊討論我們的市場前景、投資組合和財務表現。

PSBD delivered strong third quarter earnings results, supported by healthy credit performance across our portfolio.

由於我們整個投資組合的健康信貸表現，PSBD 第三季度取得了強勁的獲利業績。

During the third quarter, our team deployed $66 million of capital and generated total net investment income of $37.3 million and $15.7 million, marking 30% and 6% year-over-year growth, respectively.

第三季度，我們的團隊部署了 6,600 萬美元的資本，產生了 3,730 萬美元和 1,570 萬美元的總淨投資收益，分別年增 30% 和 6%。

We delivered net investment income of $0.48 per share and paid a $0.47 per share third quarter total dividend, including a $0.05 supplemental distribution.

我們實現了每股 0.48 美元的淨投資收益，並支付了每股 0.47 美元的第三季總股息，其中包括 0.05 美元的補充分配。

As a reminder, PSBD is the only publicly traded BDC that discloses monthly NAV to the Street, providing real-time visibility into the health and value of the portfolio.

提醒一下，PSBD 是唯一一家向華爾街披露每月資產淨值的公開交易 BDC，可即時顯示投資組合的健康狀況和價值。

In line with our commitment to industry-leading transparency, we recently announced our September 30 NAV per share of $16.61, a 1% decrease from the end of Q2 by some mild mark-to-market and realized losses in the quarter.

為了履行我們對行業領先透明度的承諾，我們最近宣布 9 月 30 日的每股資產淨值為 16.61 美元，較第二季度末下降 1%，原因是本季度出現了一些輕微的按市價計價和已實現損失。

Our commitment to driving shareholder value while delivering exceptional credit quality across the diversified opportunistic portfolio that has differentiated in its breadth and ability underpins our third quarter results.

我們致力於提高股東價值，同時透過多元化機會型投資組合提供卓越的信貸質量，該投資組合在廣度和能力上均有差異，這支撐了我們第三季度的業績。

Palmer Square is providing investors with strong and consistent returns and opportunities for capital growth in a wide variety of economic and market conditions.

帕爾默廣場在各種經濟和市場條件下為投資者提供強勁而穩定的回報和資本成長機會。

As we begin to see non-accruals tick up across the BDC sector overall, we remain confident that our portfolio of large, high-quality borrowers is positioned to outperform on a credit basis while still generating attractive levels of total and relative return compared to other floating rate investment options.

當我們開始看到整個 BDC 行業的非應計項目不斷上升時，我們仍然相信，我們的大型優質借款人投資組合將在信貸基礎上表現出色，同時與其他浮動利率投資選擇相比仍能產生具有吸引力的總體回報和相對回報。

We continue to see very strong credit performance across the vast majority of the portfolio and notably, our portfolio benefits from some of the lowest levels in the sector of PIK income.

我們繼續看到絕大多數投資組合的信貸表現非常強勁，值得注意的是，我們的投資組合受益於 PIK 收入領域的一些最低水平。

We believe this will be a differentiator for PSBD in the near future as some managers grapple with an evolving rate environment and lower cash pay in their portfolios.

我們相信，這將成為 PSBD 在不久的將來的差異化因素，因為一些經理正在努力應對不斷變化的利率環境和投資組合中較低的現金支付。

I do want to acknowledge that we had our second and third ever non-accruals in the PSBD portfolio this quarter.

我確實想承認，本季我們 PSBD 投資組合中出現了第二次和第三次不計息的情況。

That being said, neither loan was material from a size and income perspective.

話雖如此，從規模和收入角度來看，這兩筆貸款都不算重要。

We are monitoring both situations closely and the Palmer Square team is working to ensure an optimal resolution for our shareholders.

我們正在密切關注這兩種情況，帕爾默廣場團隊正在努力確保為我們的股東提供最佳解決方案。

I'd like to reiterate the benefit of PSBD's opportunistic credit investment strategy, which enables us to act quickly across liquid and private markets.

我想重申 PSBD 機會主義信貸投資策略的好處，它使我們能夠在流動市場和私人市場上迅速採取行動。

We believe our mandate is differentiated and positioning within our portfolio of predominantly high-quality BSLs which are purchased in both the primary and secondary markets, large private credit loans and select structured credit investments enables more upside through NAV appreciation and total return.

我們相信，我們的任務是差異化的，並且在我們的投資組合中定位主要為高品質的 BSL，這些 BSL 在一級市場和二級市場購買，大型私人信貸貸款和精選結構化信貸投資能夠透過資產淨值升值和總回報實現更多的上行空間。

As a reminder, given our experience in past tightening cycles, we tend to see a pickup in new M&A and deal activity across both the private credit and broadly syndicated loan markets.

提醒一下，根據我們在過去緊縮週期中的經驗，我們傾向於看到私人信貸和廣泛銀團貸款市場的新併購和交易活動有所回升。

We believe this could enable PSBD to have multiple options and avenues to find attractive new credit but also to potentially see an increase in accelerated OID income flowing through the income statement.

我們相信，這可以使 PSBD 擁有多種選擇和途徑來尋找有吸引力的新信貸，同時也有可能看到流經損益表的加速 OID 收入的增加。

I will now hand the call over to Angie to discuss our outlook heading into 2025.

現在我將把電話交給安吉，討論我們對 2025 年的展望。

Thank you, Chris.

謝謝你，克里斯。

In the third quarter, PSBD continued to deliver an attractive yield opportunity for our investors, despite the spread tightening environment that was taking place across credit markets.

第三季度，儘管信貸市場利差收緊，但 PSBD 仍繼續為我們的投資者提供具有吸引力的收益機會。

I'll now offer more color on our views of the current market environment.

現在我將進一步闡述我們對當前市場環境的看法。

As you all know, in the third quarter, the Federal Reserve initiated its first interest rate cut in four years.

眾所周知，第三季聯準會啟動了四年來首次降息。

While we expect the Federal Reserve to take a measured, data-driven approach to additional rate cuts over the coming months, we believe our borrowers have adjusted well to the higher rate environment over the past few years and can operate successfully in any of the potential scenarios extrapolated by the dot plot or forward curve.

雖然我們預計聯準會將在未來幾個月採取審慎的、數據驅動的方式進一步降息，但我們相信，我們的借款人在過去幾年中已經很好地適應了更高的利率環境，並且可以在點圖或遠期曲線推斷出的任何潛在情景下成功運作。

Moreover, when you look at the interest coverage ratios of the broadly syndicated loan market, we believe most investors and analysts would say they remain higher than many would have assumed.

此外，當你觀察廣泛銀團貸款市場的利息覆蓋率時，我們相信大多數投資者和分析師會說，這個數字仍高於許多人的預期。

Today, we believe the trough and coverage ratios is likely behind us.

今天，我們相信低谷和覆蓋率可能已經過去。

Against the current market backdrop, we are diligent in maintaining our disciplined underwriting standards with a 96% senior secured loan portfolio and spreads at pre-COVID levels of tightness, we are still able to provide investors with an 11.3% yield as of September 30, which is very attractive by historical measures and relative to current yields in the BDC sector.

在當前市場背景下，我們勤奮地維持嚴格的承保標準，擁有 96% 的優先擔保貸款組合，利差保持在新冠疫情之前的緊張水平，截至 9 月 30 日，我們仍然能夠為投資者提供 11.3% 的收益率，按歷史標準衡量，相對於 BDC 行業的當前收益率，這一收益率非常有吸引力。

While we continue to hunt for pockets of value across liquids, private and structured credit, primary and secondary markets, we are very well positioned to move more aggressively if or when the opportunity set becomes more attractive overall.

雖然我們將繼續在流動性、私人和結構性信貸、一級和二級市場中尋找價值，但如果機會整體變得更具吸引力，我們完全有能力採取更積極的行動。

As a reminder, Palmer Square Capital Management celebrated its 15 anniversary this summer.

值得一提的是，Palmer Square Capital Management 今年夏天慶祝了其成立 15 週年。

We have managed our strategies through multiple spread tightening cycles.

我們透過多個利差收緊週期來管理我們的策略。

When we see spreads near recent types, we move our portfolios up in quality.

當我們看到利差接近近期類型時，我們就會提高投資組合的品質。

Our management of the BDC has and will follow this time-tested strategy, which allows our liquid strategy to be differentiated from traditional middle-market private credit lenders.

我們對 BDC 的管理已經並將繼續遵循這一久經考驗的策略，這使我們的流動性策略有別於傳統的中端市場私人信貸貸款機構。

History has shown that in tight spread environments, stretching for incremental yield further out on the credit spectrum can lead to mistakes.

歷史表明，在利差緊張的環境下，進一步擴大信貸範圍內的增量收益可能會導致錯誤。

We believe that remaining disciplined and patient tends to provide investors with a better long-term risk-adjusted returns.

我們相信，保持紀律和耐心往往為投資者提供更好的長期風險調整回報。

And with the liquid portion of our portfolios, we should have plenty of capacity to move when opportunities arise.

而且，憑藉我們投資組合中的流動性部分，當機會出現時，我們應該有足夠的能力採取行動。

The broader deal pipeline is evenly split across both the BSL and private credit markets.

更廣泛的交易管道均勻分佈在 BSL 和私人信貸市場。

Much of the refinancing activity we saw over the past quarter involved loans shifting from one part of the market to the other.

我們在過去一個季度看到的大部分再融資活動涉及貸款從市場的一個部分轉移到另一個部分。

We've seen private credit lenders move spreads to within 100 basis points of the BSL market, to remain more competitive.

我們已經看到私人信貸機構將利差移至 BSL 市場的 100 個基點以內，以保持更強的競爭力。

We believe current spreads are more a function of demand than supply at this point, and we anticipate they could widen as M&A gradually begins to pick back up.

我們認為，目前的利差更多是由需求而非供應決定的，我們預計，隨著併購活動逐漸回暖，利差可能會擴大。

Additionally, we are confident that deal activity should continue to pick up in the near term as we receive clarity around the election and the rate environment stabilizes.

此外，隨著選舉情勢明朗且利率環境趨於穩定，我們相信交易活動將在短期內繼續回升。

This, in turn, could drive spreads modestly higher as there are more attractive opportunities for investors, including PSBD to deploy capital.

反過來，這可能會推動利差小幅走高，因為對投資者來說，包括 PSBD 在內的資本配置機會更具吸引力。

We are beginning to see some new money deals on both sides of the market, but the rate cut in September has not opened the floodgates for deal activity yet.

我們開始看到市場雙方都有一些新的資金交易，但 9 月的降息尚未打開交易活動的閘門。

Activity within the broadly syndicated loan and private credit markets over the past quarter was driven largely by refinancings and dividend recapitalization in addition to a stream of repricing’s within the loan market.

過去一個季度，廣泛銀團貸款和私人信貸市場的活動主要受到再融資和股息資本重組以及貸款市場內部的一系列重新定價的推動。

Although we cannot precisely predict how quickly M&A activity will accelerate, given the numerous factors involved, we believe sponsors have grown to appreciate the flexibility provided by having the opportunity to finance in either the syndicated or private markets.

儘管我們無法準確預測併購活動將加速到何種速度，但考慮到所涉及的眾多因素，我們相信發起人已經逐漸認識到在銀團或私人市場融資機會所提供的靈活性。

We anticipate both markets will be well supported over the long term as sponsors prefer multiple tools.

我們預計，由於贊助商更喜歡多種工具，這兩個市場都將得到長期的良好支持。

It's important to reiterate that our differentiated strategy allows us to manage the portfolio in different market environments.

值得重申的是，我們的差異化策略使我們能夠在不同的市場環境中管理投資組合。

Despite the spread tightening environment that we've mentioned, we were able to maneuver the portfolio in a manner to reduce lower spread syndicated loans and rotate into higher spread private credit opportunities, thus only reducing the overall spread of the portfolio by one basis point.

儘管我們提到了利差收緊的環境，但我們仍能夠調整投資組合，以減少利差較低的銀團貸款，並轉向利差較高的私人信貸機會，從而僅將投資組合的整體利差降低一個基點。

Additionally, as we did deploy into new opportunities, we have been doing so in smaller overall position weights, thus increasing the diversity of the portfolio.

此外，當我們部署新的機會時，我們一直以較小的整體持倉權重進行部署，從而增加了投資組合的多樣性。

Palmer Square has a long track record of generating total return for shareholders through attractive investments with optimal risk profiles.

帕爾默廣場 (Palmer Square) 長期以來一直致力於透過具有最佳風險狀況的有吸引力的投資為股東創造總回報。

While the current rate environment will surely impact portfolios across the sector, we're confident that it will present meaningful opportunities for managers that specialize in ROE generation.

雖然目前的利率環境肯定會影響整個產業的投資組合，但我們相信，它將為專門從事 ROE 生成的管理者帶來有意義的機會。

Palmer Square has a proven track record of being one of those managers and we believe we are well positioned for continued performance for the rest of 2024 and beyond.

帕爾默廣場 (Palmer Square) 有著出色管理業績的記錄，我們相信，我們有能力在 2024 年剩餘時間及以後繼續保持良好的業績。

With that, I'd like to hand the call over to Matt, who will discuss our portfolio and investment activity.

說完這些，我想把電話交給馬特，他將討論我們的投資組合和投資活動。

Thank you, Angie.

謝謝你，安吉。

Turning to our portfolio and investment activity for the third quarter.

談談我們第三季的投資組合和投資活動。

Our total investment portfolio as of September 30, 2024, had a fair value of approximately $1.39 billion across 39 industries that demonstrate both strong credit quality and a diverse mix of core service offerings.

截至 2024 年 9 月 30 日，我們的總投資組合在 39 個產業中的公允價值約為 13.9 億美元，這些產業都具有強大的信用品質和多樣化的核心服務產品組合。

This compares to a fair value of $1.43 billion at the end of the second quarter of 2024, reflecting a small decline of approximately 3%.

相較之下，2024 年第二季末的公允價值為 14.3 億美元，小幅下降約 3%。

In the third quarter, we invested $66 million of capital, which included 21 new investment commitments at an average value of approximately $2.7 million.

第三季度，我們投資了 6,600 萬美元的資本，其中包括 21 項新的投資承諾，平均價值約 270 萬美元。

During the same period, we realized approximately $83 million through repayments and sales.

同一時期，我們透過還款和銷售實現了約 8,300 萬美元。

As Angie mentioned, overall spreads have tightened in both the broadly syndicated loan and private credit markets, which is especially true for existing borrowers refinancing their capital structures.

正如安吉所提到的，廣泛銀團貸款和私人信貸市場的整體利差都有所收緊，對於現有借款人進行資本結構再融資的情況尤其如此。

That being said, we continue to look across both markets to find appropriate risk-adjusted spreads for the PSBD portfolio.

話雖如此，我們仍會繼續關注兩個市場，為 PSBD 投資組合找到合適的風險調整利差。

And given the size of these markets, we remain confident we will find appropriate investments to meet these thresholds.

考慮到這些市場的規模，我們仍然有信心找到合適的投資來滿足這些門檻。

Additionally, as spreads in the large-cap private credit market continue to offer a premium to the syndicated market in most circumstances, we have continued to build a large cap private credit allocation to the PSBD portfolio, which is now approaching 10% of the portfolio and could grow from there as we look forward into next year.

此外，由於大型私人信貸市場利差在大多數情況下繼續為銀團市場提供溢價，我們繼續為 PSBD 投資組合建立大型私人信貸配置，現在該配置已接近投資組合的 10%，並且展望明年，這一比例可能會繼續增長。

As a reminder, our team is organized by industry, which is intentional due to our core belief that deep sector knowledge, experience and market engagement are essential to driving the best possible credit outcomes.

提醒一下，我們的團隊是按行業組織的，這是有意為之，因為我們堅信深厚的行業知識、經驗和市場參與對於實現最佳信貸結果至關重要。

We use this industry expertise and deep continuous underwriting to monitor not just our portfolio but essentially all the relevant issuers in the market so that they have been proactively evaluated by our investment committee, and we can move quickly on new transactions and especially important when those issuers loans trade down to below what we believe to be fair value.

我們利用這種行業專業知識和深度持續承保來監控不僅僅是我們的投資組合，而且基本上是市場上所有相關的發行人，以便我們的投資委員會主動評估它們，並且我們可以快速開展新的交易，尤其當這些發行人的貸款交易價格低於我們認為的公允價值時。

We believe our ability to capture discounts in the secondary market as well as pursue the broadest range of opportunities in the primary market, offers our shareholders meaningful upside compared to the broader direct lending universe.

我們相信，我們在二級市場獲取折扣以及在一級市場尋求最廣泛機會的能力，與更廣泛的直接貸款領域相比，為我們的股東帶來了有意義的上升空間。

Looking back at the third quarter, I wanted to highlight key portfolio statistics, which underscore our belief that PSBD represents one of the most compelling investment opportunities in the sector.

回顧第三季度，我想強調關鍵的投資組合統計數據，這強調了我們的信念，即 PSBD 代表了該領域最引人注目的投資機會之一。

As of September 30, PSBD shares offered an annualized dividend yield of 11.3% on a portfolio focused on first lien, predominantly floating rate liquid securities.

截至 9 月 30 日，PSBD 股票的投資組合以第一留置權、主要為浮動利率流動證券為主，其年化股息殖利率為 11.3%。

In our opinion, this provides investors access to a flexible investment strategy with more upside to NAV appreciation and total return.

我們認為，這為投資者提供了一種靈活的投資策略，可以提高淨值升值和總回報的潛力。

At the end of the third quarter, our weighted average total yield to maturity of debt and income-producing securities at fair value was 10.48% and our weighted average total yield to maturity of debt and income-producing securities at amortized cost was 9.41%.

第三季末，我們以公允價值計算的債務和創收證券的加權平均總到期收益率為 10.48%，以攤銷成本計算的債務和創收證券的加權平均總到期收益率為 9.41%。

Our investors benefit from a highly diverse portfolio of high-quality sectors and borrowers.

我們的投資者受益於高​​品質產業和借款人的高度多元化投資組合。

Based on industry, our largest portfolio exposure at the end of the third quarter of 2024 included software, healthcare, professional services, IT services and insurance, which is mostly brokerage or services, not balance sheet risk all industries that we believe offer highly stable and growing income profiles.

根據行業，截至 2024 年第三季末，我們最大的投資組合曝險包括軟體、醫療保健、專業服務、IT 服務和保險，其中大部分是經紀或服務，而非資產負債表風險，我們認為所有行業都提供高度穩定和不斷增長的收入狀況。

Further, the 10 largest investments only account for 10.1% of the overall portfolio.

此外，10 項最大的投資僅佔整體投資組合的 10.1%。

We believe these factors point to industry-leading diversification, which will continue to drive strong credit performance across market cycles.

我們認為這些因素顯示行業領先多樣化，這將繼續推動整個市場週期內強勁的信貸表現。

Our portfolio is 96% senior secured with an average hold size of approximately $6 million.

我們的投資組合中有 96% 是優先擔保資產，平均持有規模約 600 萬美元。

On a fair value rated basis, our first lien borrowers have a weighted average EBITDA of $457 million, senior secured leverage of 5.5 times and interest coverage of 2.0 times

以公允價值計算，我們的第一留置權借款人的加權平均 EBITDA 為 4.57 億美元，優先擔保槓桿率為 5.5 倍，利息覆蓋率為 2.0 倍

.

。

Both the weighted average EBITDA and senior secured leverage reflects small increases quarter-over-quarter while interest coverage ticked down by 10 basis points.

加權平均 EBITDA 和優先擔保槓桿率均較上一季小幅增長，而利息覆蓋率則下降了 10 個基點。

We believe these metrics compare favourably with the best-in-class portfolios trading at a premium in the public markets.

我們相信，這些指標與公開市場上溢價交易的最佳投資組合相比具有優勢。

During the third quarter, we moved two loans to nonaccrual status, representing just 0.26% of fair value, well below reported BDC market averages.

在第三季度，我們將兩筆貸款轉為不計息狀態，僅佔公允價值的 0.26%，遠低於報告的 BDC 市場平均值。

As Chris mentioned, we view these as idiosyncratic, event-driven situations and will remain diligent in our pursuit of an optimal outcome for our shareholders.

正如克里斯所提到的，我們認為這些都是特殊的、事件驅動的情況，並將繼續努力為我們的股東追求最佳結果。

In the quarter, new private credit loans comprised 12% of overall new investments and were funded at a weighted average spread of 530 basis points over the reference rate.

本季度，新的私人信貸貸款佔整體新投資的 12%，其融資金額以高於參考利率 530 個基點的加權平均利差計算。

In addition, we have approximately $15 million of existing private credit commitments outstanding at an average spread of 483 basis points that are expected to close later in the fourth quarter.

此外，我們目前還有約 1500 萬美元的私人信貸承諾未償還，平均利差為 483 個基點，預計將在第四季稍後完成。

Finally, I want to again highlight that our PIK income as a percentage of overall total investment income remains very low relative to the industry at approximately 0.5%.

最後，我想再次強調，我們的 PIK 收入佔整體投資收入的比例相對於產業而言仍然非常低，約為 0.5%。

While this may pick up as we use PIK as a tool on certain new private credit opportunities we see in the market, we anticipate PSBD to remain on the lower end of the industry in terms of percentages of overall NII.

隨著我們將 PIK 用作市場上看到的某些新的私人信貸機會的工具，這一情況可能會有所好轉，但我們預計，就整體 NII 的百分比而言，PSBD 仍將處於行業較低水平。

Our focus on liquid loans to larger companies with strong fundamentals, senior in the capital structure produces what we believe to be the most attractive risk-adjusted returns.

我們專注於向具有強勁基本面、資本結構優先的大型公司提供流動性貸款，以產生我們認為最具吸引力的風險調整回報。

This is represented by an average internal rating of 3.6% on a fair value weighted basis for all loan investments.

這表示所有貸款投資的公允價值加權平均內部評級為 3.6%。

As a reminder, we have a unique relative value-based scoring system that allows our team to ascertain where we believe the best relative value resides and reflect that in our portfolio.

提醒一下，我們有一個獨特的基於相對價值的評分系統，使我們的團隊能夠確定我們認為最佳相對價值的位置，並將其反映在我們的投資組合中。

It's a dynamic system that is updated quarterly, but given the size of the markets we participate in, the scores are updated in real time when warranted.

這是一個每季更新一次的動態系統，但考慮到我們參與的市場的規模，分數會在必要時即時更新。

Now I'd like to turn it over to Jeff, who will review our third quarter 2024 financial results.

現在，我想把麥克風交給傑夫，他將審查我們 2024 年第三季的財務表現。

Thank you, Matt.

謝謝你，馬特。

PSBD delivered strong third quarter results.

PSBD 第三季業績強勁。

Total investment income was $37.3 million for the third quarter of 2024, up 30% from $28.8 million for the prior year period.

2024 年第三季的總投資收入為 3,730 萬美元，較去年同期的 2,880 萬美元成長 30%。

The increase was primarily driven by the growth in our portfolio as well as the interest income from our investments.

成長主要得益於我們投資組合的成長以及投資的利息收入。

Total net expenses for the third quarter were $21.6 million compared with $14 million for the prior year period.

第三季的總淨支出為 2,160 萬美元，去年同期為 1,400 萬美元。

The increase in expenses compared to the prior year was driven by the higher interest expense in line with our portfolio expansion.

與前一年相比，費用的增加是由於我們的投資組合擴張導致的利息支出增加。

Net investment income for the third quarter of 2024 was $15.7 million or $0.48 per share compared to $14.8 million or $0.57 per share for the comparable period last year.

2024 年第三季的淨投資收入為 1,570 萬美元或每股 0.48 美元，去年同期為 1,480 萬美元或每股 0.57 美元。

During the third quarter of 2024, the company had total net realized and unrealized losses of $8.2 million compared to the net realized and unrealized gains of $19.0 million in the third quarter of 2023.

2024 年第三季度，該公司的淨已實現和未實現虧損總額為 820 萬美元，而 2023 年第三季的淨已實現和未實現收益為 1,900 萬美元。

For the three months ended September 30, 2024, this consisted of net unrealized depreciation of $10 million related to existing portfolio investments and net unrealized depreciation of $8.9 million related to exited portfolio investments, a portion of which has been reclassified to realized gains.

截至 2024 年 9 月 30 日的三個月，這包括與現有投資組合相關的 1,000 萬美元淨未實現折舊和與退出投資組合相關的 890 萬美元淨未實現折舊，其中一部分已重新分類為已實現收益。

At the end of the third quarter, NAV per share was $16.61 compared to $16.85 at the end of the second quarter of 2024, driven by realized and mild mark-to-market losses in the quarter.

第三季末，每股資產淨值為 16.61 美元，而 2024 年第二季末為 16.85 美元，這主要受本季已實現且溫和的以市價計價損失的影響。

As a reminder, the September NAV also reflects the payment of a $0.47 quarterly distribution comprised of a base dividend of $0.42 and a supplemental dividend of $0.05 per share.

提醒一下，9 月的資產淨值還反映了 0.47 美元的季度分配，其中包括每股 0.42 美元的基本股息和每股 0.05 美元的補充股息。

Now moving to our balance sheet.

現在轉到我們的資產負債表。

As of September 30, 2024, total assets were $1.4 billion and total net assets were $541.9 million.

截至 2024 年 9 月 30 日，總資產為 14 億美元，總淨資產為 5.419 億美元。

At the end of Q3, our debt-to-equity ratio was 1.52 times compared to 1.49 times at the end of Q2.

第三季末，我們的負債權益比為 1.52 倍，而第二季末為 1.49 倍。

Available liquidity, consisting of cash and undrawn capacity on our credit facilities was approximately $181 million.

可用流動資金（包括現金和未動用信貸額度）約為 1.81 億美元。

This compares to approximately $20 million of undrawn investment commitments, as a reminder, our Board of Directors approved a stock repurchase plan to acquire up to $20 million of PSBD common stock.

相較之下，未動用的投資承諾約為 2,000 萬美元，提醒一下，我們的董事會批准了一項股票回購計劃，以收購高達 2,000 萬美元的 PSBD 普通股。

The program expires on January 17, 2025, in the third quarter, we repurchased 9,312 shares at an average price of $16.16 for a total purchase cost of $150,000.

該計劃將於2025年1月17日到期，第三季度，我們以平均16.16美元的價格回購了9,312股，總購買成本為150,000美元。

On November 5, the Board of Directors declared a fourth quarter 2024 base dividend of $0.42 per share, in line with our formalized dividend policy.

11 月 5 日，董事會宣布 2024 年第四季基本股利為每股 0.42 美元，符合我們正式的股利政策。

Given the liquid nature of the portfolio, we plan to announce the supplemental dividend in December, which allows for repayments to settle.

鑑於投資組合的流動性，我們計劃在 12 月宣布補充股息，以便償還債務。

This supplemental distribution will be paid out of the excess of PSBD's quarterly undistributed net investment income above the base quarterly distribution.

此補充分配將從 PSBD 季度未分配淨投資收益超出基本季度分配的部分中支付。

With that, I'd now like to open up the call for questions.

現在，我想開始提問。

(Operator Instructions) Doug Harter, UBS Financial.

(操作員指示) Doug Harter，瑞銀金融。

Can you just talk about -- you talked a little bit about moving into slightly more private credit, kind of how you would think about kind of a maximum for the portfolio in order to keep the liquid nature of the portfolio?

您能否談談——您談到了轉向更多私人信貸，您如何考慮投資組合的最大值以保持投資組合的流動性？

Doug, it's Matt.

道格，我是馬特。

Thanks for the question.

謝謝你的提問。

It's a very fair question.

這是一個非常公平的問題。

I mean I think the way we've always looked at it is everything on a relative value basis.

我的意思是，我認為我們看待事物的方式一直是從相對價值的角度來看一切。

Obviously, over the past couple of years, as the markets have evolved, these borrowers and sponsors have been utilizing both markets.

顯然，在過去幾年中，隨著市場的發展，這些借款人和發起人一直在利用這兩個市場。

So for us, I don't think we necessarily have a hard cap per se, but we certainly want to maintain a meaningful portion of the liquid pool to have that currency for opportunities when they arise.

因此對我們來說，我認為我們不一定具有硬性上限，但我們當然希望保留流動資金池中有意義的一部分，以便在機會出現時擁有該貨幣。

But I think realistically, we're seeing attractive transactions in both markets.

但我認為，現實地看，我們看到兩個市場都有具有吸引力的交易。

And obviously, the portfolio has continued to migrate up on a percentage basis.

顯然，投資組合的百分比持續上升。

And I think that could continue in similar cadence to how it's looked over the past few quarters, if I kind of had to guess on conversations that we're having with sponsors at the current time.

如果我必須猜測我們目前與贊助商的對話情況的話，我認為這種情況可能會繼續以與過去幾個季度類似的節奏發展。

And just given your seat in the market, are you seeing any difference in underwriting quality or covenants as you look at the two markets?

鑑於您在市場中所處的位置，您是否發現這兩個市場在承保品質或契約方面有任何差異？

Yes.

是的。

I think what we're seeing, whether it's on the liquid or private side, I'd say our overall hit ratio, frankly, remains still relatively low.

我認為，我們看到的，無論是在流動性還是私人方面，坦白說，我們的整體命中率仍然相對較低。

I think when you look at the markets and supply/demand, there's obviously still a meaningful demand for floating rate loans, whether that's in the private markets or in the syndicated market.

我認為，當你觀察市場和供需情況時，顯然對浮動利率貸款仍有相當大的需求，無論是在私人市場還是在銀團市場。

So borrowers certainly have that advantage.

因此藉款人肯定具有這種優勢。

And I think you've seen that reflected in spreads coming in most credit markets, not just on the secured lending side, so I think for us, I think we're trying to be pretty prudent.

我想你已經看到這反映在大多數信貸市場的利差上，而不僅僅是在擔保貸款方面，所以我認為對我們來說，我們正在努力保持相當謹慎。

I think when you look back over the past 10, 20 years in these markets, tighter spread markets I think warrants being a bit more careful and prudent on where you're extending financing to.

我認為，當你回顧這些市場過去 10 年、20 年的情況時，你會發現，利差收窄的市場需要你對融資範圍更加謹慎和審慎。

So I think credit quality has been okay, but I think we'll try to be disciplined and make sure we've got plenty of capacity for transactions that we think make the most sense.

因此，我認為信用品質還不錯，但我認為我們會盡量嚴守紀律，確保我們有足夠的能力進行我們認為最合理的交易。

And that might not necessarily just be in the primary market that might also be in the secondary market as well.

這可能不一定只發生在一級市場，也可能發生在二級市場。

(Operator Instructions) Melissa Wedel, JPMorgan.

（操作員指示）摩根大通的梅麗莎·韋德爾。

First, I wanted to just touch on the portfolio yield.

首先，我想談談投資組合收益率。

I noticed that has jumped around a little bit over the last couple of quarters, perhaps a bit more than sort of the change in base rates.

我注意到，在過去幾季中，這數字略有波動，或許比基準利率的變動幅度還要大。

I'm just curious if there's anything to read into that.

我只是好奇是否有任何值得解讀的內容。

I'm not sure if that's just a function of it being a measure on fair value or if there's something else going on?

我不確定這是否只是衡量公允價值的功能，還是有其他原因？

Melissa, it's Matt again.

梅麗莎，又是馬特。

Thanks for the question.

謝謝你的提問。

Yes, I mean, there's certainly been a lot going on just from a market standpoint outside of base rates, which obviously kind of really only came into play there, right, towards the end of September.

是的，我的意思是，從市場角度來看，除了基準利率之外，肯定發生了很多事情，而基準利率顯然只是在 9 月底才真正發揮作用。

I'd say, first and foremost, as we mentioned in the prepared remarks, refinancing activity has been the bulk of what we've seen across the markets to date.

我想說，首先，正如我們在準備好的評論中提到的那樣，迄今為止，再融資活動佔據了整個市場的主要活動。

So there's certainly been some repricing and refinancing activity, where relative value standpoint, those yields might not make sense for the PSBD portfolio.

因此肯定存在一些重新定價和再融資活動，從相對價值的角度來看，這些收益率對於 PSBD 投資組合來說可能沒有意義。

So we've let some of those loans go.

因此我們免除了部分貸款。

We mentioned a bit of an increase in the private credit allocation.

我們提到私人信貸分配略有增加。

I mentioned in the prepared remarks, spreads there are certainly wider obviously, than in the syndicated market.

我在準備好的評論中提到過，那裡的利差顯然比銀團市場更大。

So we've had some benefit there.

因此我們在那裡獲得了一些好處。

And then also, to your point, from a fair value standpoint as well, a little bit of movement as well.

而且，正如您所說，從公允價值的角度來看，也存在一些變動。

So I'd say all those things kind of come into play.

所以我想說所有這些事情都會發揮作用。

But the biggest piece of it for sure has been just kind of from the refinancing, repricing activity and how we've moved the portfolio around during the quarter to try to maintain yield within the pool.

但其中最大的部分肯定來自於再融資、重新定價活動以及我們如何在本季度調整投資組合以試圖維持資金池內的收益率。

Okay.

好的。

I appreciate that.

我很感激。

And is there any sort of -- was there -- given the repricing activity that took place, was there any sort of accelerated OID that's embedded in there -- in the interest income that we're -- maybe isn't separately broken out?

並且，考慮到已經發生的重新定價活動，是否存在任何類型的加速 OID 嵌入其中——在我們的利息收入中——可能沒有單獨列出？

I'd say for this quarter, it wasn't overly robust when you look across in the Q from where we break out the various sources of income that other income line encompasses part of it.

我想說，就本季度而言，當您縱觀整個季度，我們列出各種收入來源，其中其他收入線涵蓋了其中的一部分，這時的表現並不是非常強勁。

I do think we'll continue to see some of that over the next couple of quarters just as there undoubtedly will continue to be refinancing activity.

我確實認為，未來幾季我們將繼續看到這種情況，就像再融資活動無疑將繼續一樣。

But I don't think from an OID acceleration or accretion standpoint, it was overly material in the quarter.

但我不認為從 OID 加速或成長的角度來看，它在本季過於重要。

Okay.

好的。

And if I could, one last question.

如果可以的話，我還有最後一個問題。

Thinking about the fourth quarter.

思考第四季。

I know that in -- traditionally in BDC portfolios and in the private credit space, in particular, there tends to be sort of a seasonal burst of activity in the fourth quarter as companies are trying to get some deals done.

我知道，傳統上，在 BDC 投資組合和私人信貸領域，尤其是在第四季度，由於公司試圖完成一些交易，往往會出現季節性活動激增。

You guys have obviously have a little bit of a different focus, sort of with the more liquid portfolio.

你們的關注點顯然有些不同，有點像是更流動的投資組合。

I'm curious if we should adjust our expectations for sort of portfolio activity or churn in the fourth quarter just because you guys do have a different focus than there might be a little bit less the seasonality in investment activity and exits?

我很好奇，我們是否應該調整對第四季度投資組合活動或客戶流失的預期，只是因為你們的關注點不同，投資活動和退出的季節性可能會少一點？

Or do you think it should be directionally similar to what we see in the rest of the private credit space.

或者您認為它的方向上應該與我們在其他私人信貸領域看到的情況相似。

Yes.

是的。

No, that's a really good question.

不，這是一個非常好的問題。

And I think in this particular year being be an election year, I guess today is kind of a very important date.

我認為今年是選舉年，所以今天是一個非常重要的日子。

So we have seen things slow down, certainly in the syndicated market over the last week.

因此，我們看到事態放緩，尤其是過去一周在聯合市場中。

I think there was probably, frankly, a little bit of pull forward throughout the summer months, which a lot of cases historically would maybe be a bit slower but there was a lot of that activity going on.

坦白說，我認為整個夏季可能會出現一點拉動，從歷史上看，很多情況下可能會慢一點，但目前有很多這樣的活動在進行。

Again, more skewed towards refinancing, but some of the new deal activity over the summer versus, I think, whether it's sponsors or companies wanting to kind of see how things play out this next few days.

再次，更偏向再融資，但我認為，夏季的一些新交易活動，無論是贊助商還是公司，都想看看接下來幾天的情況如何。

Undoubtedly though, I do think we will see, as we get kind of into the middle and end of November and early December, some activity.

毫無疑問，我確實認為，隨著我們進入 11 月中旬、月底和 12 月初，我們會看到一些活動。

But net-net, just from conversations and what we're seeing now, I think it will be a little bit more muted to your point.

但總體而言，僅從對話和我們現在看到的情況來看，我認為你的觀點會更加溫和。

Derek Hewett, Bank of America.

美國銀行的德里克休伊特 (Derek Hewett)。

So what percentage of the decline in one-month SOFR was reflected in third quarter results?

那麼，一個月期 SOFR 的下降有多少比例反映在第三季的業績中呢？

And more importantly, kind of as rates -- if rates continue to trend lower, kind of how quickly does the portfolio reprice?

更重要的是，如果利率繼續走低，投資組合重新定價的速度會有多快？

No.

不。

Good question, Derek.

好問題，德瑞克。

I'd say for this quarter, given when the Fed moved at that September meeting, and most borrowers, if they're paying on one month kind of locking in those contracts in advance, it was pretty de minimis, quite frankly, from the third quarter standpoint.

我想說，就本季度而言，考慮到美聯儲在 9 月份會議上採取的行動，以及大多數借款人，如果他們按月付款，提前鎖定這些合同，那麼坦率地說，從第三季度的角度來看，這種影響相當小。

So not much in the way of kind of a read-through for this particular quarter.

因此，對於本季而言，沒有太多可讀的內容。

Obviously, on a go-forward basis, we kind of list out in the back of the 10-Q what a 25 basis point decrease in rates would look like from an investment income, all else being equal, obviously, right, with no other portfolio moves.

顯然，從未來的角度來看，我們在 10-Q 的後面列出了利率下降 25 個基點對投資收益的影響，當然，其他條件相同，沒有其他投資組合變動。

But I think to your -- the latter point of your question on how, from a borrower standpoint, a lot of that kind of repricing activity has been baked in on kind of what is available from a market standpoint on what a borrower can actually achieve from an all-in spread basis.

但我認為，對於你問題的後一點，從借款人的角度來看，許多此類重新定價活動都是根據市場角度提供的條件而定的，即藉款人實際上可以從全包利差中獲得什麼。

So I think we're through the thick of the repricing activity in the market.

所以我認為我們已經度過了市場重新定價活動的高峰期。

And I think we have seen kind of spreads stabilize here over the past few weeks to months.

我認為，在過去幾週至幾個月內，我們已經看到利差趨於穩定。

And that's a comment in both the syndicated and the private credit market.

這是銀團信貸市場和私人信貸市場的評論。

I think there's just a natural floor on what makes sense from a risk-reward standpoint.

我認為，從風險回報的角度來看，有一個自然的底線。

To the extent to Melissa's question earlier, is we do expect deal activity to continue to pick up into 2025.

正如梅麗莎之前提出的問題一樣，我們確實預計交易活動將在 2025 年持續升溫。

And just from a supply/demand standpoint, as that activity hopefully does pick up from what we're seeing that could certainly lead to hopefully a little bit more of spread widening.

僅從供需角度來看，隨著這種活動有望從我們所看到的情況中回升，這肯定有望導致價差進一步擴大。

As things have gotten in a lot of cases to kind of 10-year types on a spread basis overall.

在很多情況下，整體而言，利差已經達到了 10 年期的程度。

Okay.

好的。

And then short-term investments were down meaningfully this past quarter.

上個季度短期投資大幅下降。

I'm assuming it's an important source of liquidity.

我認為它是流動性的重要來源。

But how should we -- should we expect kind of more runoff going forward, which would be kind of reinvested in kind of in higher-yielding strategies?

但是，我們是否應該預期未來會出現更多的資金流失，這些資金將被重新投資於更高效益的策略？

Yes, good question.

是的，好問題。

So that has been kind of cash that had been earmarked for potential investments or actually investments that we'd already committed to.

所以，這些現金是專門用於潛在投資或我們已經承諾的投資。

So I think that's kind of gotten into a more normalized range at this point.

所以我認為現在這已經進入了更正常化的範圍。

It's certainly been a bit elevated.

它確實有點升高了。

And I think I also mentioned in my prepared remarks, we've got about $15 million or so commitments on the private credit side that had not been funded yet that will be funded in the fourth quarter.

我想我也在準備好的發言中提到過，我們在私人信貸方面獲得了大約 1500 萬美元的承諾，這些承諾尚未到位，將在第四季度到位。

So that's a use of some of that short-term capacity as well.

所以這也是部分短期產能的運用。

So I think we're kind of probably finally in a bit of a more normalized range for that bucket.

所以我認為我們可能最終會進入一個更正常的範圍。

(Operator Instructions) All right.

（操作員指令）好的。

It looks like there are no further questions.

看起來好像沒有其他問題了。

So I will go ahead and conclude today's call.

因此我將繼續並結束今天的電話會議。

Thank you all for joining, and you may now disconnect.

感謝大家加入，現在可以斷開連線了。