MISSION WOODS, Kan.--(BUSINESS WIRE)--Palmer Square Capital Management (together with its affiliates, “Palmer Square”), a credit-focused asset management firm with over $30 billion in assets, has announced the pricing of Palmer Square BDC CLO 1, a $400.5 million collateralized loan obligation (“CLO”). The vehicle is secured by broadly syndicated loans held by Palmer Square Capital BDC Inc. (NYSE: PSBD) and will be managed by Palmer Square Capital BDC Inc. Palmer Square BDC CLO 1 is the first CLO transaction to be issued out of New York Stock Exchange-traded PSBD, which invests meaningfully in broadly syndicated loans as part of its opportunistic credit / total return investment strategy. With the pricing of this CLO, the Palmer Square platform is actively managing 46 CLOs outstanding, totaling over $20 billion in assets (as of 4/8/24).
The deal was arranged by Bank of America and has a 5-year reinvestment period running through July 15, 2029, and a final maturity of July 15, 2037. Palmer Square has issued 71 CLO transactions since inception. Year to date, Palmer Square has issued approximately $3.2 billion in CLOs including 2 new issue CLOs, 3 reset CLOs, and 1 refinanced CLO.
Palmer Square Chairman and CEO Christopher Long said, “On the heels of the successful IPO in January of our business development company, we are excited to announce PSBD’s first CLO transaction. The issuance’s innovative structure, which consists entirely of broadly syndicated loans, demonstrates PSBD’s ability to utilize the CLO market as a way to diversify its financing sources as well as lock-in term rate financing at an attractive cost. With PSBD’s disciplined credit selection and active portfolio management, we believe we are well-positioned to drive continued growth and deliver long-term total return.”
About Palmer Square Capital Management
Founded in 2009 by Chris Long with major offices in Kansas City and London, Palmer Square Capital Management manages over $30 billion in fixed income/credit investments on behalf of a diverse client base inclusive of institutional investors, wealth management firms, and high net worth individuals (as of 3/31/24). The firm primarily focuses on Opportunistic Credit, Income Strategies, Private Credit, and CLOs while offering many product opportunities including mutual funds, separately managed accounts, private partnerships (including investments focused on the CLO market), CLOs, and a publicly-listed Business Development Company, Palmer Square Capital BDC (NYSE: PSBD).
About Palmer Square Capital BDC Inc.
Palmer Square Capital BDC Inc. (NYSE: PSBD) is an externally managed, non-diversified closed-end management investment company that primarily lends to and invests in corporate debt loans, including but not limited to large private U.S. companies in the broadly syndicated loan market, as well as the direct large cap private credit market. PSBD has elected to be regulated as a business development company under the Investment Company Act of 1940. PSBD’s investment objective is to maximize total return, comprised of current income and capital appreciation. PSBD’s current investment focus is guided by two strategies that facilitate its investment opportunities and core competencies: (1) investing in corporate debt loans and, to a lesser extent, (2) investing in other debt securities which may include collateralized loan obligation debt and equity. PSBD’s investment activities are managed by its investment adviser, Palmer Square BDC Advisor LLC, an affiliate of Palmer Square Capital Management LLC.
