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  4. [8-K] Palmer Square Capital BDC Inc. Reports Material Event

Palmer Square Capital BDC (NYSE: PSBD) cuts credit commitments to $350M

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Palmer Square Capital BDC Inc., through its wholly owned subsidiary Palmer Square BDC Funding I LLC, reduced aggregate commitments under its revolving credit facility to $350 million from $525 million.

The change was made under existing terms of the facility with Bank of America and other lenders, and no other provisions were amended. The reduction became effective on July 1, 2026. Because the SPV pays commitment fees on unused capacity, this lower commitment is expected to cut those fees while still leaving what the company views as an appropriate level of unused borrowing capacity to support future portfolio growth.

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Insights

PSBD trims credit facility commitments to cut unused-fee costs.

Palmer Square Capital BDC is lowering its credit facility commitments from $525 million to $350 million while leaving all other terms unchanged. The structure with Bank of America and other lenders remains in place.

This step aligns committed capital more closely with current utilization. Because the SPV pays commitment fees on undrawn amounts, a smaller commitment can lower ongoing financing costs without necessarily constraining lending, assuming existing headroom is ample.

The company explicitly positions this as balancing sufficient unused capacity for portfolio growth with avoiding unnecessary fees. The actual impact on leverage and origination capacity will depend on future deployment levels disclosed in subsequent 2026 and later reports.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
New credit facility commitment $350 million Aggregate commitments after reduction under Credit Facility
Prior credit facility commitment $525 million Aggregate commitments before reduction
Commitment reduction amount $175 million Difference between prior $525 million and new $350 million commitments
Effective date of reduction July 1, 2026 Date commitment reduction became effective
Common stock listing PSBD Trading symbol on New York Stock Exchange
Material Definitive Agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Credit Facility financial
"that certain credit facility (the “Credit Facility”) among the SPV, as borrower"
A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.
aggregate commitments financial
"reduce the amount of aggregate commitments to $350 million from $525 million"
commitment fees financial
"The SPV pays commitment fees on the unused capacity of the Credit Facility"
administrative agent financial
"Bank of America, N.A., as administrative agent"
An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

FAQ

What credit facility change did Palmer Square Capital BDC (PSBD) disclose?
Palmer Square Capital BDC’s SPV reduced aggregate commitments on its credit facility to $350 million from $525 million. The facility’s other terms remained unchanged, and the reduction took effect on July 1, 2026.

Why did Palmer Square Capital BDC (PSBD) reduce its credit facility commitments?
The company states the reduction helps maintain an appropriate level of unused capacity while cutting commitment fees on undrawn amounts. Management views this as balancing support for future portfolio growth with avoiding unnecessary financing costs.

Who are the lenders in Palmer Square Capital BDC’s credit facility?
The credit facility involves Palmer Square BDC Funding I LLC as borrower, Bank of America, N.A. as administrative agent, BofA Securities, Inc. as sole lead arranger and book manager, and other lenders that may be party to the agreement.

When did Palmer Square Capital BDC’s reduced credit commitment become effective?
The lower $350 million aggregate commitment under the credit facility became effective on July 1, 2026. The change followed a formal commitment reduction notice delivered by the SPV under the existing facility terms.

Did Palmer Square Capital BDC (PSBD) change any other terms of its credit facility?
No other terms of the credit facility were changed. Only the total aggregate commitments were reduced, with the company emphasizing this as a cost-management step while preserving borrowing capacity for portfolio growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): June 22, 2026

 

 

 

PALMER SQUARE CAPITAL BDC INC.

(Exact name of Registrant as Specified in Its Charter)

 

maryland   814-01334   84-3665200
(State or Other Jurisdiction
 of Incorporation)		   (Commission File Number)   (IRS Employer
Identification No.)

 

1900 Shawnee Mission Parkway, Suite 315,

Mission Woods, KS

  66205
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (816) 994-3200

 

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 
Title of each class   Trading Symbol   Name of each exchange on which registered
Common Stock, par value $0.001 per share   PSBD   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b- 2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

Palmer Square BDC Funding I LLC (the “SPV”), a wholly owned subsidiary of Palmer Square Capital BDC Inc. (the “Company”), provided written notice (the “Commitment Reduction Notice”) of its intent to reduce the amount of aggregate commitments to $350 million from $525 million in accordance with and as permitted under that certain credit facility (the “Credit Facility”) among the SPV, as borrower, Bank of America, N.A., as administrative agent, BofA Securities, Inc., as sole lead arranger and sole book manager, and the lenders from time to time a party thereto. The other terms of the Credit Facility were not changed. Such reduction in the aggregate commitment of the SPV under the Credit Facility pursuant to the Commitment Reduction Notice was effective as of July 1, 2026. The SPV pays commitment fees on the unused capacity of the Credit Facility and the reduction of commitments will reduce this unused capacity. The Company believes this is a tool to maintain an appropriate amount of unused capacity to support future portfolio growth while also reducing unnecessary costs.

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, Palmer Square Capital BDC Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  PALMER SQUARE CAPITAL BDC INC.
     
Date:  June 25, 2026 By: /s/ Jeffrey D. Fox
  Name:  Jeffrey D. Fox
  Title: Chief Financial Officer

 

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Source: View Original Filing on SEC EDGAR

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