Palmer Square Capital BDC Inc (PSBD) 2025 Q3 法說會逐字稿

Welcome to Palmer Square Capital BDC's third-quarter 2025 earnings call. (Operator Instructions)

歡迎參加 Palmer Square Capital BDC 2025 年第三季財報電話會議。（操作說明）

As a reminder, this conference call is being recorded. At this time, I'd like to turn the call over to Jeremy Goff, Managing Director. Jeremy, you may begin.

再次提醒，本次電話會議正在錄音。此時，我想把電話交給總經理傑瑞米‧戈夫。傑里米，你可以開始了。

Welcome to Palmer Square Capital BDC's third-quarter 2025 earnings call. 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. Palmer Square Capital BDC's third-quarter 2025 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.

歡迎參加 Palmer Square Capital BDC 2025 年第三季財報電話會議。今天下午與我一同出席的有：董事長兼執行長克里斯·朗；首席投資官安吉·朗；總裁馬特·布魯姆菲爾德；以及首席財務官兼董事傑夫·福克斯。Palmer Square Capital BDC 2025 年第三季財務業績已於今日稍早發布，也可造訪 Palmer Square 投資者關係網站 palmersquarebdc.com 查看。我們也安排了今日活動的重播，可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. 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 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.

在本次通話中，我想提醒各位，我們所做的前瞻性陳述是基於目前的預期。本次電話會議中除純粹歷史事實外的所有陳述均為前瞻性陳述。這些前瞻性陳述並非對未來業績的保證，並且受到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，包括但不限於利率不確定性導致的市場狀況、不斷變化的經濟狀況以及我們在提交給美國證券交易委員會的文件中確定的其他因素。

Although we believe 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 place undue reliance on these forward-looking statements.

儘管我們認為這些前瞻性聲明所依據的假設是合理的，但任何一個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。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. To obtain copies of SEC related filings, please visit our website at palmersquarebdc.com.

本次電話會議中作出的前瞻性陳述僅代表截至本次會議之日的信息，除非法律要求，否則 Palmer Square Capital BDC 不承擔更新前瞻性陳述的義務。如需與美國證券交易委員會 (SEC) 相關的備案文件副本，請造訪我們的網站 palmersquarebdc.com。

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

接下來，我將把電話交給克里斯朗。

Good afternoon, everyone. Thank you for joining us today for Palmer Square Capital BDC's third-quarter 2025 conference call. On today's call, I will provide an overview of our third-quarter highlights, background on our broader credit platform, and touch on the benefits of our differentiated investment strategy, then turn the call to the team to discuss our market outlook and financial performance.

大家下午好。感謝您今天參加 Palmer Square Capital BDC 2025 年第三季電話會議。在今天的電話會議上，我將概述我們第三季度的亮點，介紹我們更廣泛的信貸平台的背景，並簡要介紹我們差異化投資策略的優勢，然後將電話會議交給團隊，討論我們的市場前景和財務業績。

During the third quarter, our team deployed $138.7 million of capital and generated total and net investment income of $31.7 million and $13.6 million, respectively. We delivered net investment income of $0.43 per share, well covering our $0.36 per share third-quarter base dividend and covering our $0.42 per share total dividend, which includes a $0.06 supplemental distribution.

第三季度，我們的團隊投入了 1.387 億美元的資金，分別產生了 3,170 萬美元的總投資收益和 1,360 萬美元的淨投資收益。我們實現了每股 0.43 美元的淨投資收益，足以支付第三季每股 0.36 美元的基本股息，並支付每股 0.42 美元的總股息（其中包括每股 0.06 美元的補充分配）。

Given interest rate expectations, we appreciate the recent market focus on dividend coverage by the BDC investor community. Unlike many peers, we decided from the outset to create a distribution strategy that maximizes cash returns to our investors sooner rather than later. In that spirit, we continue to pay out nearly all of our excess earnings in the form of a supplemental dividend, which we believe is the right thing to do for our investors.

鑑於利率預期，我們讚賞 BDC 投資者群體近期對股息覆蓋率的關注。與許多同行不同，我們從一開始就決定制定一項分配策略，以盡快最大限度地提高投資者的現金回報。本著這種精神，我們繼續將幾乎所有超額收益以補充股息的形式派發出去，我們認為這對我們的投資者來說是正確的做法。

Additionally, we recently announced our September NAV per share of $15.39. As the only publicly traded BDC to disclose NAV on a monthly basis, we believe we provide a unique level of transparency and accountability, giving shareholders regular insight into our performance. Angie will provide additional commentary on our market outlook, but I want to spend a moment addressing recent industry events.

此外，我們近期公佈了9月份每股淨值為15.39美元。作為唯一一家按月揭露淨資產值的上市商業發展公司，我們相信我們能夠提供獨特的透明度和問責制，讓股東定期了解我們的績效。Angie 將會對我們的市場前景提供更多評論，但我想花一點時間談談最近發生的行業事件。

There has been much debate around whether there are cracks in the payment of private credit and leveraged lending at large. We believe it is important for investors to understand that these idiosyncratic situations arrive in credit markets year in and year out and that does not indicate that there is any new systemic risk in private credit or liquid credit portfolios.

關於私人信貸和槓桿貸款的支付是否存在漏洞，一直存在著許多爭論。我們認為，投資者必須明白，這些特殊情況每年都會在信貸市場出現，但這並不意味著私人信貸或流動性信貸組合中存在任何新的系統性風險。

Default rates in private and public credit have been running at consistent levels for the past couple of years, non-accrual rates in BDCs remain below historical levels on average and underlying portfolio company performance continues to show strength.

過去幾年，私人和公共信貸的違約率一直保持在穩定水平，商業發展公司 (BDC) 的非應計率平均仍低於歷史水平，而基礎投資組合公司的業績繼續保持強勁勢頭。

As a concrete example, through EBITDA growth and lower base rates, PSBD's interest coverage ratio increased sequentially to 2.5 times from 2.1 times last quarter, a meaningful improvement that demonstrates companies can better service their debt. When you couple these patterns with PSBD's current yields and the discount to NAV, we continue to believe that the opportunity set is compelling for investors and PSBD common stock is undervalued.

舉例來說，透過 EBITDA 成長和較低的基準利率，PSBD 的利息保障倍數從上季度的 2.1 倍環比增長至 2.5 倍，這是一個顯著的改善，表明公司能夠更好地償還債務。結合這些模式以及 PSBD 目前的收益率和相對於淨資產值的折價，我們仍然認為，對於投資者而言，這是一個極具吸引力的機會，PSBD 普通股被低估了。

To that end, our Board recently approved an additional $5 million of open market share repurchases, which Matt and Jeff will discuss in further detail. We have confidence in our strategy and believe that our emphasis on senior secured liquid credit and the optionality to deploy into private credit position us to remain agile and adjust to various market environments. This agility is further enhanced by our specialized and seasoned investment team and strong alignment with our shareholders.

為此，我們的董事會最近批准了額外 500 萬美元的公開市場股票回購計劃，Matt 和 Jeff 將對此進行更詳細的討論。我們對我們的策略充滿信心，並相信我們對高級擔保流動信貸的重視以及對私募信貸的選擇權，使我們能夠保持敏捷並適應各種市場環境。我們專業的資深投資團隊以及與股東的緊密合作進一步增強了這種靈活性。

To put a finer point on this, our investment team is incentivized in a way that promotes a clear focus on investor outcomes and experience, which by definition, creates strong alignment through the investment process to make decisions that maximize risk-adjusted performance.

更確切地說，我們的投資團隊受到激勵，從而更加專注於投資者的收益和體驗，這從定義上講，在整個投資過程中實現了高度一致，從而做出能夠最大限度提高風險調整後收益的決策。

At the heart of our investment philosophy is the conviction that active management and credit when executed properly, can generate attractive total returns in excess yield. We believe our focus on higher-quality assets, minimizing interest rate duration, and maintaining liquidity where possible, combined with our core competency of locating relative value has helped drive strong outcomes for our portfolio.

我們投資理念的核心是堅信，如果積極管理和信貸運用得當，就能產生可觀的超額收益總回報。我們相信，我們專注於更高品質的資產、盡可能縮短利率久期並保持流動性，再加上我們尋找相對價值的核心競爭力，這些都幫助我們的投資組合取得了強勁的業績。

Looking ahead, we continue to lean into our strengths and prioritize synergies across our platform strategies, which we believe will ultimately benefit the BDC. For instance, our CLO issuance volume informs our BDC by enabling us to see nearly all the deal flow in the bank loan space and act on it when appropriate.

展望未來，我們將繼續發揮自身優勢，優先考慮平台策略的協同效應，我們相信這最終將使 BDC 受益。例如，我們的 CLO 發行量為我們的 BDC 提供了信息，使我們能夠看到銀行貸款領域幾乎所有的交易流，並在適當的時候採取行動。

We believe this quality is often underappreciated by equity investors, particularly given that our presence and recognition in the global CLO space exceeds many other well-known alternative asset managers. Since our last earnings call, we've had the opportunity to connect with both existing and new investors, reiterating our position as a deeply experienced corporate and structured credit manager.

我們認為，股票投資者往往低估了這一品質，尤其考慮到我們在全球 CLO 領域的影響力和知名度超過了許多其他知名另類資產管理公司。自上次財報電話會議以來，我們有機會與現有投資者和新投資者進行交流，並重申了我們作為經驗豐富的企業和結構性信貸管理公司的地位。

We believe our differentiated story is resonating, but it's still in the early innings for the public life of PSBD, with our listing taking place less than two years ago. We look forward to continuing these conversations in 2026 as we remain steadfast in our commitment to shareholder alignment and transparency.

我們相信我們與眾不同的故事正在引起共鳴，但對於 PSBD 的公眾生活而言，它仍處於早期階段，因為我們上市至今還不到兩年。我們期待在 2026 年繼續進行這些對話，因為我們將繼續堅定不移地致力於股東利益一致和透明度。

With that, I will hand the call over to Angie.

接下來，我將把電話交給安吉。

Thank you, Chris. We are pleased with PSBD's third-quarter results despite shipping rate expectations, uneven economic data and a more recent rebound in tariff concerns. Our portfolio is constructed to perform consistently through periods of uncertainty, and we're proud of the efforts we've made to deliver both attractive risk-adjusted returns and transparency to PSBD shareholders.

謝謝你，克里斯。儘管航運費率預期、經濟數據不穩定以及最近關稅擔憂有所反彈，但我們對PSBD第三季的業績感到滿意。我們的投資組合旨在在不確定時期保持穩定的業績，我們為在為 PSBD 股東提供具有吸引力的風險調整後收益和透明度方面所做的努力感到自豪。

Taking a step back, while capital market conditions this quarter felt similar to recent quarters in some respects, we are beginning to see signs of gradual improvement in deal activity. Although overall M&A volumes remain relatively subdued, there has been encouraging progress over the past few months, which has continued through October. We've seen a healthier mix of opportunities filtering through both the broadly syndicated and private credit markets, and deal flow appears to be building momentum each month.

退一步講，雖然本季資本市場狀況在某些方面與最近幾季類似，但我們開始看到交易活動逐步改善的跡象。儘管整體併購交易量仍然相對低迷，但過去幾個月來取得了令人鼓舞的進展，這一趨勢一直延續到 10 月。我們看到，無論是在廣泛的銀團貸款市場還是私募信貸市場，都有更健康的融資機會湧現，而且交易量似乎每個月都在增加。

Overall, sponsor engagement is rising. The recently announced $55 billion take-private of Electronic Arts, which represents the largest LBO on record will require approximately $20 billion in debt financing. Even more recently, the approximately $18 billion take-private of Hologic will include over $12 billion of financing. These announcements underscore the market's appetite for high-quality transactions, and we believe there could be more announcements to come. We also continue to see elevated refinancing activity during the third quarter, helping to provide incremental income generation.

總體而言，贊助商的參與度正在上升。最近宣布的以 550 億美元收購 Electronic Arts 的交易（這是有史以​​來最大的槓桿收購）將需要約 200 億美元的債務融資。就在不久前，Hologic 的私有化交易總額約為 180 億美元，其中超過 120 億美元的融資將用於收購該公司。這些公告凸顯了市場對高品質交易的需求，我們相信未來可能會有更多公告發布。第三季度，我們也看到再融資活動持續活躍，這有助於增加收入。

This is in line with the syndicated loan market, which saw record levels of activity driven largely by refinancings and repricings. While we can't forecast the pace of refinancing activity going forward, we expect at least some continuation of that trend.

這與銀團貸款市場的情況一致，該市場活動創下歷史新高，這主要是由再融資和重新定價所推動的。雖然我們無法預測未來再融資活動的步伐，但我們預期這種趨勢至少會持續一段時間。

Turning to Private Credit. Competition remains elevated and spreads have compressed meaningfully over the past year. Even so, we continue to find relative value in certain instances versus new broadly syndicated loans, and we expect private transactions to remain an important source of incremental spread and diversification for PSBD.

轉向私人信貸。競爭依然激烈，過去一年來價差已顯著收窄。即便如此，我們仍然發現，在某些情況下，與新的廣泛銀團貸款相比，私人交易具有相對價值，我們預計私人交易仍將是 PSBD 增加利差和多元化的重要來源。

Notably, in our Private Credit book, tuck-in activity is accelerating. We view Private Credit as a complementary lever to our BSL strategy, particularly in today's environment where deals are moving between the two markets. Spread compression has been a recurring theme over the past several quarters and has remained near all-time types across credit markets.

值得注意的是，在我們的私人信貸帳簿中，追加投資活動正在加速。我們認為私募信貸是我們 BSL 策略的補充手段，尤其是在當今交易在兩個市場之間流動的環境下。在過去的幾個季度裡，利差收窄一直是反覆出現的主題，並且在信貸市場中一直保持在接近歷史最高水平的水平。

Despite this, we're committed to our disciplined approach in deploying capital and playing a long game. As we've stated on previous earnings calls, we will not chase growth when risk-adjusted returns do not meet our standards. We think this is very important for investors to understand, especially later in credit cycles.

儘管如此，我們仍堅持以嚴謹的態度部署資本，並著眼長遠。正如我們在先前的財報電話會議上所說，如果風險調整後的回報不符合我們的標準，我們將不會追求成長。我們認為這對投資者來說非常重要，尤其是在信貸週期的後期。

As expected, the Fed cut base rates by 25 basis points in September and another 25 basis points in October, and the market is anticipating additional easing in 2026, given the softening labor market. While declining base rates will be beneficial to borrowers' cash flows and should spur M&A activity, we believe pressure from inflation and tariffs may continue to test the Fed as they balance their dual mandate.

正如預期，聯準會在9月將基準利率下調了25個基點，10月又下調了25個基點，鑑於勞動市場疲軟，市場預計2026年將進一步放鬆貨幣政策。雖然基準利率下降有利於借款人的現金流，並應刺激併購活動，但我們認為，通膨和關稅帶來的壓力可能會繼續考驗聯準會，因為聯準會在平衡其雙重使命時仍面臨挑戰。

That said, we are not macro forecasters, and our forecast remains squarely on the credit side of the equation, where we believe our expertise and disciplined approach to underwriting continue to differentiate both PSBD and our platform at large.

也就是說，我們並非宏觀預測者，我們的預測仍然完全側重於信貸方面，我們相信，我們在信貸方面的專業知識和嚴謹的承保方法將繼續使 PSBD 和我們的整個平台脫穎而出。

Looking ahead, we're cautiously optimistic about the environment. Early signs of improving deal flow, both in our pipeline and the market more broadly suggests that a more active M&A environment could take hold in coming quarters. However, PSBD's flexibility across both liquid and private markets means we are not dependent on the pace of that recovery, and it allows us to adapt quickly and position the portfolio for attractive opportunities as they arise.

展望未來，我們對環境持謹慎樂觀態度。無論是我們自身的交易項目還是更廣泛的市場，交易量的改善跡像都表明，未來幾季併購環境可能會更加活躍。然而，PSBD 在流動性市場和私募市場都具有靈活性，這意味著我們並不依賴經濟復甦的速度，這使我們能夠快速調整併根據出現的有吸引力的機會調整投資組合。

As of October 31, PSBD was yielding 13.6%, an attractive yield in any market, but particularly compelling given today's tight spreads and the conservative positioning of our portfolio. We believe we've been able to achieve this in large part due to the power of our platform.

截至 10 月 31 日，PSBD 的收益率為 13.6%，在任何市場中都是一個有吸引力的收益率，但考慮到目前利差較小以及我們投資組合的保守配置，這一收益率尤其具有吸引力。我們相信，我們能夠取得這樣的成就，很大程度上要歸功於我們平台的強大功能。

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

接下來，我將把電話交給馬特，他將討論我們的投資組合和投資活動。

Thank you, Angie. Turning to our portfolio and investment activity for the third quarter. Our total investment portfolio as of September 30, 2025, had a fair value of approximately $1.26 billion across 42 industries that demonstrate strong credit quality, industry and company-specific tailwinds and a diverse mix of end markets. This compares to a fair value of $1.28 billion at the end of the second quarter of 2025, reflecting a decrease of approximately 1.6%. In the third quarter, we invested $138.7 million of capital, which included 28 new investment commitments at an average value of approximately $4.8 million.

謝謝你，安吉。接下來，讓我們來看看第三季的投資組合和投資活動。截至 2025 年 9 月 30 日，我們的投資組合總價值約為 12.6 億美元，涵蓋 42 個產業，這些產業展現出強勁的信用品質、產業和公司特有的利好因素以及多元化的終端市場組合。相較之下，截至 2025 年第二季末，其公允價值為 12.8 億美元，下降了約 1.6%。第三季度，我們投入了 1.387 億美元的資金，其中包括 28 項新的投資承諾，平均每項投資價值約為 480 萬美元。

During the same period, we realized approximately $156.0 million through repayments and sales. As you will notice, we continue to think about diversification as we allocate new capital in the portfolio. As Angie mentioned, third-quarter activity demonstrates early signs of improvement with M&A gradually picking up after a subdued period. That said, we maintain a cautious approach for the balance of the year as the BDC sector at large absorbed the impact of rate cuts and a potentially cooling economy.

同期，我們透過償還貸款和出售資產實現了約 1.56 億美元。如您所見，我們在為投資組合注入新資金時，始終會考慮多元化。正如安吉所提到的那樣，第三季的活動顯示出初步改善跡象，併購活動在經歷了一段低迷期後逐漸回升。儘管如此，由於 BDC 行業整體上已經吸收了降息和經濟可能降溫的影響，我們對今年剩餘時間仍將保持謹慎的態度。

To recap key portfolio highlights, at the end of the third quarter, our weighted average total yield to maturity of debt and income-producing securities at fair value was 10.07%, and our weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.00%.

回顧投資組合的主要亮點，截至第三季末，我們以公允價值計算的債務和收益證券的加權平均到期總收益率為 10.07%，以攤餘成本計算的債務和收益證券的加權平均到期總收益率為 8.00%。

We believe our focus on first lien loans and diversification by industry and size contribute to a strong credit profile with 42 different industries represented in our investment mix. Further, our 10 largest investments account for just 10.6% of the overall portfolio, and our portfolio is 95% senior secured with an average hold size of approximately $5.0 million.

我們相信，我們專注於優先擔保貸款以及按行業和規模進行多元化投資，有助於我們建立強大的信用狀況，我們的投資組合涵蓋 42 個不同的行業。此外，我們最大的 10 項投資僅佔整個投資組合的 10.6%，我們的投資組合中有 95% 是優先擔保投資，平均持有規模約為 500 萬美元。

Again, we believe this position in sizing is an important risk management tool for PSBD. On a fair valuated basis, our first lien borrowers have a weighted average EBITDA of $421 million, senior secured leverage of 5.5 times, and interest coverage of 2.5 times. Additionally, new private credit loans comprised 20.9% of overall new investments and were funded at a weighted average spread of 536 basis points over the reference rate.

我們再次認為，這種規模定位是 PSBD 的重要風險管理工具。以公允價值計算，我們的第一順位借款人的加權平均 EBITDA 為 4.21 億美元，優先擔保槓桿率為 5.5 倍，利息保障倍數為 2.5 倍。此外，新增私人信貸貸款佔新增投資總額的 20.9%，其加權平均利差為參考利率加 536 個基點。

While credit quality is a top concern across the sector, non-accruals continue to be low at PSBD. On a fair value basis, it is only 40 basis points and on an at-cost basis, only 101 basis points. Our PIK income as a percentage of total investment income remains well below our largest peers and below the industry at approximately 1.14%.

儘管信貸品質是整個行業最關注的問題，但PSBD的非應計貸款仍然很低。以公允價值計算，僅 40 個基點；以成本計算，僅 101 個基點。我們的 PIK 收入佔總投資收入的比例仍然遠低於我們最大的同行，也低於行業平均水平，約為 1.14%。

We take pride in knowing our shareholders do not have to wonder about the quality of our disclosed investment income. We've maintained an average internal rating of 3.6 on a fair valuated basis for all loan investments. Our rating is derived from a unique relative value-based scoring system.

我們引以為傲的是，我們的股東無需對我們所揭露的投資收益的品質產生任何疑慮。我們所有貸款投資的平均內部評級（以公允估值計算）一直保持在 3.6 分。我們的評分系統採用獨特的相對價值評分體系。

Generally speaking, we believe that the credit performance within the portfolio remains strong. Our non-accruals remain very low by industry standards and the underlying credit metrics of our borrowers are encouraging. We continue to see stability in both leverage levels and loan-to-value ratios across our portfolio companies.

總的來說，我們認為該投資組合的信貸表現依然強勁。以業界標準來看，我們的非應計負債仍然非常低，而且我們借款人的基本信用指標也令人鼓舞。我們看到，我們投資組合公司的槓桿水準和貸款價值比率都保持穩定。

While we did add Klöckner Pentaplast and First Brands to non-accrual, to echo Chris, we view these as isolated events rather than indicative of broader stress in the portfolio. LifeScan, a previous nonaccrual loan for the past several quarters, was removed from non-accrual status and is currently trading back into the high 90s, and we believe will likely result in a full par recovery. This is a testament to our ability to work through individual credit issues and maximize recoveries for the portfolio.

雖然我們確實將 Klöckner Pentaplast 和 First Brands 納入了非應計範圍，但正如 Chris 所說，我們認為這些是孤立事件，而不是表明投資組合中存在更廣泛的壓力。LifeScan 先前幾季一直屬於非應計貸款，現已解除非應計狀態，目前交易價格已回升至 90 多美元，我們相信它很可能會完全收回本金。這證明了我們有能力解決個別信貸問題，並最大限度地提高投資組合的回收率。

Subsequent to quarter end, we took further strides in optimizing the right side of our balance sheet by refinancing the Wells Fargo credit facility, tightening the spread by 55 basis points. Additionally, we extended the maturity of the facility to November 2030 and increased the facility amount to $200 million from $175 million. We believe this exemplifies our focus on driving earnings power to the BDC even in a falling rate environment through active balance sheet management in addition to active portfolio management.

季度末之後，我們透過對富國銀行信貸安排進行再融資，進一步優化了資產負債表的右側，將利差收窄了 55 個基點。此外，我們將貸款期限延長至 2030 年 11 月，並將貸款金額從 1.75 億美元增加到 2 億美元。我們相信，這反映了我們致力於在利率下降的環境下，透過積極的資產負債表管理和積極的投資組合管理，提升 BDC 的獲利能力。

To add to Chris' point earlier on shareholder alignment, I'd like to reiterate that we charge a management fee based on net asset value instead of gross assets. The reason being, we don't want to get paid simply for taking on leverage. Further, our incentive fee of 12.5% is below the 15% to 20% of other peers in the sector, and we incorporate a net realized loss look back on a one- to three-year basis. So if we underperform on the credit side, we should earn lower fees.

關於 Chris 之前提到的股東利益一致性問題，我想補充一點，我們收取的管理費是基於淨資產價值而不是總資產。原因在於，我們不想因為承擔槓桿作用就獲得報酬。此外，我們的激勵費用為 12.5%，低於業內其他同行的 15% 至 20%，並且我們採用一至三年的淨已實現虧損回顧期。因此，如果我們信貸業務表現不佳，我們應該獲得較低的費用。

Additionally, for further alignment with our shareholders, the Board has approved an additional $5 million of open market share repurchases at PSBD. This is in addition to the ongoing 10b5-1 share buyback plan that PSBD currently has in place. Given the market level discounts to NAV in the BDC space, we believe this could be an accretive tool to further shareholder return.

此外，為了進一步與股東利益保持一致，董事會已批准在 PSBD 進行額外 500 萬美元的公開市場股票回購。這是對 PSBD 目前正在實施的 10b5-1 股票回購計畫的補充。鑑於 BDC 領域的市場水準與 NAV 有折價，我們認為這可能是增加股東回報的工具。

As we navigate current market dynamics, we are in lockstep with the priorities of our shareholders, and we'll continue to provide transparent visibility into our performance, which includes monthly NAV disclosure. Now I'd like to turn the call over to Jeff, who will review our third-quarter 2025 financial results.

在應對當前市場動態的過程中，我們始終與股東的優先事項保持一致，並將繼續提供透明的業績信息，包括每月披露淨資產值。現在我想把電話交給傑夫，他將回顧我們2025年第三季的財務表現。

Thank you, Matt. Switching to the financial results. Total investment income was $31.7 million for the third quarter of 2025, down 15.1% from $37.3 million for the comparable prior year period. Total net expenses for the third quarter were $18 million compared to $21.6 million in the prior year period. Net investment income for the third quarter of 2025 was $13.6 million or $0.43 per share compared to $15.7 million or $0.48 per share for the comparable period last year.

謝謝你，馬特。接下來查看財務業績。2025 年第三季總投資收益為 3,170 萬美元，比去年同期的 3,730 萬美元下降了 15.1%。第三季淨支出總額為 1,800 萬美元，而上年同期為 2,160 萬美元。2025 年第三季淨投資收益為 1,360 萬美元，即每股 0.43 美元，去年同期為 1,570 萬美元，即每股 0.48 美元。

During the third quarter of 2025, the company had total net realized and unrealized losses of $10.3 million compared to total net realized and unrealized losses of $8.2 million in the third quarter of 2024. This consisted of net unrealized depreciation of $7.9 million related to existing portfolio investments and net unrealized depreciation of $1.1 million related to exited portfolio investments. At the end of the third quarter, NAV per share was $15.39 compared to $15.68 at the end of the second quarter of 2025.

2025 年第三季度，該公司淨已實現和未實現虧損總額為 1,030 萬美元，而 2024 年第三季淨已實現和未實現虧損總額為 820 萬美元。這包括與現有投資組合相關的未實現淨折舊 790 萬美元和與已退出投資組合相關的未實現淨折舊 110 萬美元。第三季末，每股淨資產值為 15.39 美元，而 2025 年第二季末為 15.68 美元。

Moving to our balance sheet. Total assets were $1.3 billion and total net assets were $490.4 million as of September 30, 2025. At the end of the third quarter, our debt-to-equity ratio was 1.53 times, slightly up from the 1.51 times at the end of the second quarter of 2025. Available liquidity consisting of cash and undrawn capacity on our credit facilities was approximately $252.8 million. This compares to approximately $253.5 million at the end of the second quarter of 2025.

接下來來看看我們的資產負債表。截至 2025 年 9 月 30 日，總資產為 13 億美元，淨資產總額為 4.904 億美元。第三季末，我們的負債權益比率為 1.53 倍，略高於 2025 年第二季末的 1.51 倍。可用流動資金（包括現金和未提取的信貸額度）約為 2.528 億美元。相較之下，到 2025 年第二季末，這一數字約為 2.535 億美元。

As part of our existing stock repurchase plan, which commenced on January 22, 2025, and expires on January 22, 2026, during the third quarter, we purchased 343,064 shares at an average price of $13.75 for a total purchase cost of $4.72 million.

作為我們現有的股票回購計畫的一部分（該計畫於 2025 年 1 月 22 日開始，將於 2026 年 1 月 22 日到期），在第三季度，我們以平均每股 13.75 美元的價格購買了 343,064 股股票，總購買成本為 472 萬美元。

As Matt previously mentioned, the Board also approved an additional $5 million of open market share repurchases, which is in addition to the existing stock repurchase plan mentioned. On November 5, the Board of Directors declared a fourth-quarter 2025 base dividend of $0.36 per share, in line with our formalized dividend policy.

正如 Matt 之前提到的，董事會還批准了額外 500 萬美元的公開市場股票回購計劃，這是在先前提到的現有股票回購計劃之外的額外計劃。11 月 5 日，董事會宣布 2025 年第四季基本股利為每股 0.36 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. The supplemental distribution will be paid out of the excess of PSBD's quarterly undistributed net investment income above the base quarterly distribution.

鑑於投資組合的流動性，我們計劃在 12 月宣布派發補充股息，以便償還債務。補充分配將從 PSBD 季度未分配淨投資收益超過基本季度分配的部分中支付。

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

接下來，我想開放提問環節。

(Operator Instructions) Kenneth Lee, RBC Capital Markets.

（操作員說明）Kenneth Lee，加拿大皇家銀行資本市場。

Just the investments associated with First Brands. Wonder if you could just talk a little bit more about what's the current outlook for the path to recovery there. And perhaps if you could just talk about why was there a decision made to hold on versus sell the investments in the quarter there?

僅指與First Brands相關的投資。不知道您能否再詳細談談目前該地區的復甦前景如何？或許您能談談為什麼當季決定持有而不是出售這些投資嗎？

Ken, it's Matt. Thanks for the question. Yeah, so I'd say it's obviously an incredibly complex situation, which I think, quite frankly, is going to take quite some time to work through the bankruptcy courts. So from our perspective, we're essentially taking it on a day-by-day basis as we work with legal counsel and advisers on really trying to understand the ins and outs of what's taking place.

肯，我是馬特。謝謝你的提問。是的，所以我認為這顯然是一個極其複雜的情況，坦白說，我認為透過破產法庭解決這個問題需要相當長的時間。所以從我們的角度來看，我們基本上是每天跟進，與法律顧問和諮商師一起努力，真正了解正在發生的事情的來龍去脈。

Our view on staying involved, we're obviously part of the group that put together a pretty sizable debtor in possession financing for the company, which came with a lot of benefits to our existing position, including kind of the 3:1 roll up to kind of put us at the top of the capital structure. Obviously, some pretty outsized economics as part of that.

對於我們繼續參與的看法是，我們顯然是為該公司籌集了相當可觀的破產保護融資的團隊的一部分，這為我們現有的地位帶來了很多好處，包括 3:1 的股權整合，使我們處於資本結構的頂端。顯然，這其中包含一些相當巨大的經濟因素。

Our view is that there's still pretty good tangible brand value across that portfolio. So that is kind of the rationale for staying involved to date. On a go-forward basis, we'll continue to evaluate what we think makes the most sense to ultimately improving recoveries. And I think as we alluded to with the LifeScan situation coming off, that was a tough situation for many, many quarters, and you're kind of working through that process, it is ultimately going to result in most likely a par recovery for us.

我們認為，該品牌組合仍然具有相當不錯的實際品牌價值。這就是我至今仍參與其中的理由。展望未來，我們將繼續評估我們認為最有利於最終提高康復率的措施。我認為，正如我們之前提到的 LifeScan 事件一樣，這對很多方面來說都是一個艱難的局面，而你現在正在努力克服這個問題，最終很可能會讓我們恢復到正常水平。

So I think we want to be patient. We want to kind of see the process through. But it's obviously an incredibly complex situation that is going to take quite a long time to work through.

所以我覺得我們應該要保持耐心。我們想把整個過程看完。但這顯然是一個極其複雜的情況，需要很長時間才能解決。

Got you. And just one follow up, if I may. One of the advantages of the private credit side is that potentially there's more documentation, more ability to due diligence. For the liquid credit side, do you anticipate any changes in the investment process in terms of evaluating the adequateness of collateral go forward just based on the experiences you had with First Brands there.

抓到你了。如果可以的話，我還有一個後續問題。私人信貸方面的優點之一是，可能有更多文件資料，更有利於進行盡職調查。就流動性信貸方面而言，根據您在 First Brands 的經驗，您是否預計未來在評估抵押品充足性方面的投資流程會有任何變化？

No, I think we continue to do everything we can from a documentation standpoint, whether it's on the liquid side or on the private credit side. Obviously, in the First Brands situation, everything that's kind of being reported that was done kind of on an off-balance sheet basis kind of hidden from most lenders vantage points. So I'd say that is a much different situation than a typical restructuring where like whether it's LifeScan or Klöckner that we've talked about, given kind of what transpired kind of behind the scenes and, if you will, on First Brands.

不，我認為我們會繼續盡一切努力做好文件準備工作，無論是在流動資金方面還是在私人信貸方面。顯然，在 First Brands 的案例中，所有被報導出來的事情都是在資產負債表外進行的，從大多數貸款機構的角度來看，這些事情都是隱藏的。所以我認為這與典型的重組情況大不相同，無論是我們之前討論過的 LifeScan 還是 Klöckner，考慮到幕後發生的事情，以及 First Brands 的情況。

But yes, I think documentation certainly is a very, very important thing that we always look at and try to push as hard as we can to make sure as tight as can be, and there's lots of situations where we ultimately will not invest in a transaction if there are certain provisions within the credit agreement that we aren't able to get.

是的，我認為文件絕對是一件非常非常重要的事情，我們總是會仔細查看，並盡最大努力確保文件盡可能嚴密。在許多情況下，如果信貸協議中存在我們無法獲得的某些條款，我們最終將不會投資該交易。

Got you. Very helpful there. Thanks, again.

抓到你了。那方面很有幫助。再次感謝。

Melissa Wedel, JPMorgan.

梅麗莎‧韋德爾，摩根大通。

First thing, I wanted to clarify the total repurchase capacity in light of the $5 million that was just approved. It seems like you're running at a little bit below that on a quarterly basis right now. And so I'm wondering how many -- assuming a sort of steady repurchase level, where is that capacity right now on a total basis?

首先，我想澄清一下，鑑於剛剛批准的 500 萬美元，總回購能力是多少。目前看來，你們的季度業績似乎略低於這個水準。所以我想知道——假設回購水準保持穩定——目前總產能是多少？

Yeah. So we've still got several million of existing capacity from the existing 10b5-1 that was kind of reinstituted earlier this year. So there's no changes to that. This is just an additional five in the form of an open market purchase plan. So kind of just gives us additional firepower.

是的。因此，我們仍然擁有數百萬的現有產能，這些產能來自今年稍早重新啟用的 10b5-1 計畫。所以這方面沒有任何變化。這只是以公開市場購買計劃的形式額外增加的五倍。這相當於為我們增加了額外的火力。

I think if there are certain days when the markets are more volatile for us to be able to continue to be active at what we think are pretty attractive levels for buybacks. So it's just an additional plan, and then we'll continue -- the Board will continue to reevaluate on a go-forward basis the existing 10b5-1, and that's also in addition to the plan that's still in place at the management company level. And all that's in the 10-Q in more detail.

我認為，在某些市場波動較大的日子裡，我們可以繼續在我們認為相當有吸引力的價位進行回購。所以這只是一個額外的計劃，然後我們將繼續進行——董事會將繼續向前重新評估現有的 10b5-1，這也是管理公司層面仍然有效的計劃的補充。所有這些內容在 10-Q 表格中有更詳細的說明。

Okay. Thank you. Following up on one of the slides in your slide deck, it looks like interest coverage picked up a little bit more than normal quarter over quarter jumping to 2.5 times from 2.2 times last quarter. I'm curious if that's just a function of lower borrowing costs or if that's also reflective of general top line or EBITDA growth within the portfolio.

好的。謝謝。根據您幻燈片中的一張投影片，利息保障倍數環比似乎略有成長，從上季的 2.2 倍躍升至 2.5 倍。我很好奇這只是藉貸成本降低的結果，還是也反映了投資組合中整體營收或 EBITDA 的成長。

Yeah, we agree. It was a nice move quarter over quarter. I think it was a mix of continued EBITDA growth within the portfolio, which again, we think shows a lot of strength in the underlying borrowers across the portfolio. And then also, to your point, as spreads have compressed, some of these borrowers have had the ability to kind of refinance and reprice their facilities. So their all-in cash interest costs have come down as well.

是的，我們同意。這是一個不錯的季度環比增長。我認為這是投資組合中 EBITDA 持續成長的綜合結果，我們認為這再次顯示了投資組合中各借款人的強大實力。另外，正如您所說，隨著利差收窄，一些借款人已經能夠對他們的貸款進行再融資和重新定價。因此，他們的全部現金利息成本也隨之下降了。

So the combination of both of those, the EBITDA growth and the lower interest burden has caused that to increase, which again, we're very pleased with, but it certainly seems to be accelerating, which is good.

因此，EBITDA 成長和利息負擔降低這兩方面的因素結合起來，導致了這一成長，對此我們非常滿意，而且成長速度似乎正在加快，這是件好事。

Thank you.

謝謝。

Douglas Harter, UBS.

道格拉斯‧哈特，瑞銀集團。

This is Cory Johnson on for Doug. Just a question, can you help me to understand the internal rating system? And I guess, just the decision of why First Brands will not be considered [really] one, because I guess there were no one ratings during this quarter.

這裡是科里·約翰遜，替道格報道。請問您能幫我理解一下內部評分系統嗎？我猜，之所以決定不將 First Brands 視為 [真正] 一家公司，是因為我猜本季沒有進行任何評級。

Yeah. So our rating system is more relative value focused versus kind of pure credit metrics that a lot of private credit lenders use. So for us, it's really about when we look across the name, whether we think it's kind of fair value at a level 2 would be 1 that we would obviously be worried about and looking to reduce.

是的。因此，我們的評級系統更注重相對價值，而不是像許多私人信貸機構那樣採用純粹的信用指標。所以對我們來說，關鍵在於當我們審視這個名字時，我們是否認為它的價值在 2 級水平上是合理的，如果是 1 級水平，我們顯然會感到擔憂並尋求降低它的價值。

So First Brands kind of falls in that category. But a 4 for us, right, is more, we think it's attractive, whether it's on a dollar price, on a spread basis where on the liquid side of the portfolio, we would be looking to buy that loan in the secondary market if you will.

所以，First Brands 也算是屬於這一類。但對我們來說，4 美元更有吸引力，無論是以美元價格還是按利差計算，在投資組合的流動性方面，我們都會考慮在二級市場購買該貸款。

So it's more relative value based versus just pure underlying credit metrics on how we score it. And so those ratings move around intra-quarter based on company performance, industry dynamics, and kind of secondary trading levels.

所以，我們的評分方式比較​​是基於相對價值，而不是單純的基礎信用指標。因此，這些評級會根據公司業績、產業動態和二級市場交易水準在季度內進行調整。

Thank you.

謝謝。

And that appears to be all the questions we have. So I will now turn the call back to Jeremy Goff for closing remarks. Jeremy?

看來這就是我們所有的問題了。現在我將把電話轉回給傑里米·戈夫，請他作總結發言。傑里米？

Thank you, operator. We wish everyone a happy and healthy holiday season, and we look forward to updating you on our fourth-quarter 2025 financial results in the new year. Thank you, everybody, for joining.

謝謝接線生。我們祝福大家節日快樂，身體健康，並期待在新的一年向大家報告我們 2025 年第四季的財務表現。謝謝大家的參與。

Thanks, Jeremy, and this concludes today's conference call. You may now disconnect. Have a great day, everyone.

謝謝傑里米，今天的電話會議到此結束。您現在可以斷開連線了。祝大家今天過得愉快。