Filing Summary
Business Context and Reporting Period
Palmer Square Capital BDC Inc. filed a Form 8-K dated February 9, 2023, reporting an event occurring on February 3, 2023. The filing concerns an amendment to a senior, secured revolving credit facility of Palmer Square BDC Funding I LLC, a wholly owned subsidiary of the Company.
Material Agreement and Debt Facility
- On February 3, 2023, Funding entered into an omnibus amendment to its credit facility with Bank of America, N.A., as administrative agent and lender.
- The amendment replaces references to the London Interbank Offered Rate (LIBOR) with the Secured Overnight Financing Rate (SOFR).
- The amendment removes LIBOR transition language from the credit facility.
- The filing states that the credit facility is senior, secured, and revolving. The filing text does not provide a clear facility size, borrowing balance, interest-rate spread, maturity date, or collateral details.
Financial Results and Liquidity
The filing does not report revenue, net investment income, net income, cash flow, margins, assets, leverage, liquidity balances, or other operating results. It also does not quantify any financial impact from the amendment.
Outlook, Risks, and Unusual Items
The amendment reflects the transition from LIBOR to SOFR and may affect the applicable interest-rate calculation for borrowings under the facility. The filing provides no management guidance, forecast, contingency discussion, or assessment of the amendment’s expected financial impact.
Key Facts to Verify
- Review Exhibit 10.1 for the amended benchmark rate mechanics, applicable spreads, floors, fees, maturity, covenants, and other borrowing terms.
- Confirm the credit facility’s total commitments and outstanding borrowings as of the amendment date.
- Assess any changes in borrowing costs, leverage capacity, collateral requirements, or covenant compliance resulting from the amendment.
- Note that the Form 8-K report date is February 9, 2023, while the earliest reported event date is February 3, 2023.