Palmer Square Capital BDC Inc. 8-K

What Happened Palmer Square Capital BDC Inc. (the "Company") filed an 8‑K (Item 1.01) reporting that its wholly owned subsidiary, Palmer Square BDC Funding I LLC (the "SPV"), delivered a Commitment Reduction Notice to reduce the aggregate commitments under its credit facility from $525 million to $350 million. The Credit Facility involves 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 party thereto. The reduction was effective July 1, 2026, and no other terms of the Credit Facility were changed.

Key Details

• Commitments reduced: from $525 million to $350 million (effective July 1, 2026).
• Parties: SPV borrower; Bank of America, N.A. as administrative agent; BofA Securities, Inc. as sole lead arranger/book manager; lenders party thereto.
• Fees impact: SPV pays commitment fees on unused capacity; lowering aggregate commitments reduces unused capacity and associated fees.
• Purpose stated: Company views the change as a tool to balance maintaining unused capacity for future portfolio growth while reducing unnecessary costs.

Why It Matters This change reduces the SPV’s available backstop liquidity but also lowers ongoing commitment fees, which can reduce financing costs. For investors, the action signals management is actively managing financing capacity and expense — preserving enough unused capacity to support new investments while trimming unneeded costs. Importantly, the modification was permitted under the existing Credit Facility and did not alter other covenants or terms.