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Item 9A. Controls and Procedures

2024-02-28 compared with 2023-03-10 · 630 added, 548 removed, 133 unchanged (90% of the section changed)

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation

of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures

(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end

of the period covered by this Annual Report on Form 10-K.

Based on such evaluation, our Chief Executive Officer and Chief Financial Officer

have concluded that, as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.

Internal Control Over Financial Reporting

Our management, including

our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over

financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

Our internal control over financial

reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of

our financial statements for external reporting purposes in accordance with GAAP.

Internal control over financial reporting includes those

policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions

and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in

accordance with authorizations of management and directors of the company;

and (iii) provide reasonable assurance regarding prevention

or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on

the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because

of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

Management (with the participation

of our Chief Executive Officer and Chief Financial Officer) conducted an evaluation of the effectiveness of our internal control over

financial reporting based on the framework in Internal Control — Integrated Framework issued in 2013 by the Committee of

Sponsoring Organizations of the Treadway Commission.

Based on this evaluation, management concluded that our internal control over financial

reporting was effective as of December 31, 2022.

Changes in Internal Control over Financial

There have been no changes

in our internal control over financial reporting during our fiscal quarter ended December 31, 2022 that have materially affected, or are

reasonably likely to materially affect, our internal control over financial reporting.

of Disclosure Controls and Procedures

management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our

disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended,

or the Exchange Act), as of the end of the period covered by this Annual Report on Form 10-K.

Based on such evaluation, our Chief Executive

Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were effective at a

reasonable assurance level.

Control Over Financial Reporting

management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate

internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of our financial statements for external reporting purposes in accordance with GAAP.

Internal control over financial

reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detail accurately

and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions

are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of

the company are being made only in accordance with authorizations of management and directors of the company;

and (iii) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that

could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting

may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk

that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may

(with the participation of our Chief Executive Officer and Chief Financial Officer) conducted an evaluation of the effectiveness of our

internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued in 2013

by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on this evaluation, management concluded that our internal

control over financial reporting was effective as of December 31, 2023.

in Internal Control over Financial Reporting

have been no changes in our internal control over financial reporting during our fiscal quarter ended December 31, 2023 that have materially

affected, or are reasonably likely to materially affect, our internal control over financial reporting.

OTHER INFORMATION

REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

DIRECTORS, EXECUTIVE OFFICERS AND

CORPORATE GOVERNANCE

Certain information with respect

to the directors of the Company is set forth below, including their names, ages, a brief description of their recent business experience,

including present occupations and employment, certain directorships that each person holds, and the year in which each person became a

For purposes of this presentation,

our directors have been divided into two groups – independent directors and interested directors.

Interested directors are “interested

persons” as defined in the 1940 Act.

Christopher D.

Long and Jeffrey D.

Fox are interested directors of the Company because they

are officers of the Company and/or the Investment Advisor.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Board oversees our management.

Our Board currently consists of five members, three of whom are not “interested persons” as

defined in Section 2(a)(19) of the 1940 Act.

Our Board elects our officers, who serve at the discretion of our Board until the next election

of officers or until his or her successor is duly elected and qualifies, or until his or her death, resignation, retirement, disqualification

The responsibilities of our Board include the quarterly valuation of our assets and the oversight of our investment activity,

corporate governance activities and financing arrangements.

Oversight of our investment activities extends to oversight of the risk management

processes employed by our Investment Advisor as part of its day-to-day management of our investment activities.

Our Board reviews risk

management processes at both regular and special board meetings throughout the year, consulting with appropriate representatives of our

Investment Advisor as necessary and periodically requesting the production of risk management reports or presentations.

The goal of our

Board’s risk oversight function is to ensure that the risks associated with our investment activities are accurately identified,

thoroughly investigated and responsibly addressed.

However, our Board’s oversight function cannot eliminate all risks or ensure

that particular events do not adversely affect the value of investments.

Board has also established an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee, and may

establish additional committees in the future.

of Directors and Officers

Board is presently composed of five directors.

Under our charter and bylaws, our directors are divided into three classes.

At each annual

meeting, directors are elected for a term expiring at the third succeeding annual meeting, with the term of office of only one of these

three classes of directors expiring each year.

Each director will hold office for the term to which he or she is elected and until his

or her successor is duly elected and qualifies, or until his or her death, resignation, retirement, disqualification or removal.

Name, Address and Age

Term of Office and Length

of Time Served

Term of Office and

Length of Time Served

Principal Occupation(s)

5 unchanged sentences

Class II Director since November 2019;

Term Expires 2023

Wealth Advisor at SeaCrest Wealth Management, a financial advisory firm, since May 2018.

Vice President at Enterprise Trust Company, an investment management firm, from February 2013 to February 2018.

Wealth Advisor at SeaCrest

Wealth Management, a financial advisory firm, since May 2018.

Vice President at Enterprise Trust Company, an investment management

firm, from February 2013 to February 2018.

Class I Director since November 2019;

Term Expires 2025

Financial Reporting Manager at The Anschutz Corporation, a private holding company.

Member of the Board of Trustees of Palmer Square Opportunistic Income Fund since August 2014.

Member of the Board of Trustees of Montage Managers Trust, a registered investment company (ceased operations in 2017).

of Investment Reporting at The Anschutz Corporation, a private holding company.

Member of the Board of Trustees

of Palmer Square Opportunistic Income Fund since August 2014.

Member of the Board of Trustees of Montage Managers Trust, a registered

investment company (ceased operations in 2017).

Class III Director since November

Term Expires 2024

Proprietary trader and investor.

Proprietary trader

and investor.

Portfolio Manager at Great Plains Principal Trading, an asset management firm, from January 2012 through June 2019.

Member of the Board of Trustees of Palmer Square Opportunistic Income Fund since August 2014.

Member of the Board of Trustees of Montage Managers Trust, a registered investment company (ceased operations in 2017).

Member of the Board

of Trustees of Palmer Square Opportunistic Income Fund since August 2014.

Member of the Board of Trustees of Montage Managers Trust,

a registered investment company (ceased operations in 2017).

Interested Director

2 unchanged sentences

Class I Director since November 2019;

Term Expires 2025

Chief Executive Officer of Palmer Square Capital Management LLC.

Member of the Board of Trustees of Palmer Square Opportunistic Income Fund from August 2014 to October 2018.

Chief Executive Officer of

Palmer Square Capital Management LLC.

Member of the Board of Trustees

of Palmer Square Opportunistic Income Fund from August 2014 to October 2018.

Chief Financial Officer and Director

Class III Director since November 2019;

Term Expires 2024

President of Palmer Square Capital Management LLC since March 2020.

President of Palmer Square

Capital Management LLC since March 2020.

Managing Director of Palmer Square Capital Management LLC from April 2013 to March 2020.

The business address of each of our directors is c/o Palmer Square Capital BDC Inc., 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, Kansas 66205.

No director otherwise serves as a director of an investment company subject to the 1940 Act.

Executive Officers Who Are Not Directors

Information regarding our

executive officers who do not serve on the Board is as follows:

Name, Address and Age (1)

Positions held with Company

Principal Occupation(s) During the Past 5 Years

Chief Investment Officer

The business address of

each of our directors is c/o Palmer Square Capital BDC Inc., 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, Kansas 66205.

No director otherwise serves

as a director of an investment company subject to the 1940 Act.

Officers Who Are Not Directors

regarding our executive officers who do not serve on the Board is as follows:

Address and Age (1)

held with Company

Occupation(s) During the Past 5 Years

Investment Officer

Long was appointed as our Chief Investment Officer in 2019.

4 unchanged sentences

in New York for 13 years.

Long held many senior roles including Deputy Head of North American Credit Trading, Head of

High Yield Trading, and Head of Credit Derivatives Trading.

Long held many senior roles including Deputy Head of North American Credit Trading, Head

of High Yield Trading, and Head of Credit Derivatives Trading.

Long has been a trader of many products including high yield bonds,

high yield credit derivatives, distressed debt, capital structure arbitrage, and structured credit.

In addition, she worked with the

Global Head of Credit Trading to help oversee risk management for the High Yield and High Grade credit trading books.

married to Christopher D.

In addition, she worked with

the Global Head of Credit Trading to help oversee risk management for the High Yield and High Grade credit trading books.

is married to Christopher D.

Long, our Chairman and Chief Executive Officer.

Long received an AB degree in Economics

from Princeton University and is also a CFA® charterholder.

Long received an AB degree in Economics from Princeton

University and is also a CFA® charterholder.

Bloomfield – 43

Bloomfield was appointed as our President in 2022.

Bloomfield is the Portfolio Manager for PSCM’s US CLO management platform

and has key responsibilities for all of PSCM’s leveraged loan product offerings and risk management.

He is a member of both the

US and European CLO investment committees, as well as a member of the Company’s Investment Committee.

Prior to joining PSCM in

Bloomfield worked at Golub Capital in Chicago, most recently as an Associate Portfolio Manager within the Broadly Syndicated

Loan Group where he focused on investing in leveraged loans via CLOs and separately managed accounts.

Prior to joining Golub Capital,

Bloomfield worked at Giuliani Capital Advisors in Chicago as an Analyst and subsequently Associate in the Investment Banking Group

where he focused on special situations and restructuring mandates.

Bloomfield earned an MBA in Finance from Northwestern University’s

Kellogg School of Management, as well as a BS and BGS in Business Administration and Economics, respectively, from the University of

Chief Compliance Officer

Bloomfield was appointed

as our President in 2022.

Bloomfield is the Portfolio Manager for PSCM’s US CLO management platform and has key responsibilities

for all of PSCM’s leveraged loan product offerings and risk management.

He is a member of both the US and European CLO investment

committees, as well as a member of the Company’s Investment Committee.

Prior to joining PSCM in 2015, Mr.

Bloomfield worked

at Golub Capital in Chicago, most recently as an Associate Portfolio Manager within the Broadly Syndicated Loan Group where he focused

on investing in leveraged loans via CLOs and separately managed accounts.

Prior to joining Golub Capital, Mr.

Bloomfield worked at

Giuliani Capital Advisors in Chicago as an Analyst and subsequently Associate in the Investment Banking Group where he focused on

special situations and restructuring mandates.

Bloomfield earned an MBA in Finance from Northwestern University’s Kellogg

School of Management, as well as a BS and BGS in Business Administration and Economics, respectively, from the University of Kansas.

Compliance Officer

Betz was appointed as our Chief Compliance Officer in 2019.

Prior to joining in 2019, Mr.

Betz worked for over 14 years at Scout Investments, most recently as Chief Operating Officer, Chief Compliance Officer and Treasurer.

Prior to joining Scout Investments, Mr.

Betz worked for over six years at UMB Bank as a Performance Measurement Specialist and subsequently as Investment Technology Officer.

Betz also serves as Chief Operating Officer of PSCM and previously

served as Chief Compliance Officer of PSCM from March 2018 to March 2021.

Prior to joining in March 2018, Mr.

Betz worked for over

14 years at Scout Investments, most recently as Chief Operating Officer, Chief Compliance Officer and Treasurer.

Prior to joining

Scout Investments, Mr.

Betz worked for over six years at UMB Bank as a Performance Measurement Specialist and subsequently as Investment

Technology Officer.

Betz received an MBA degree and a BA degree in Political Science from the University of Missouri-Kansas City.

The business address of each of our officers is c/o Palmer Square Capital BDC Inc., 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, Kansas 66205.

Information About Each Director’s Experience, Qualifications,

Attributes or Skills

The Board believes that, collectively,

the directors have balanced and diverse experience, qualifications, attributes and skills, which allow the Board to operate effectively

in governing the Company and protecting the interests of its stockholders.

Below is a description of the various experiences, qualifications,

attributes and/or skills with respect to each director considered by the Board.

Interested Directors

Christopher D.

Long was appointed as

our Chairman and Chief Executive Officer in 2019 and has served on our Board since November 2019.

Long has also served as Chief Executive

Officer of our Investment Advisor since 2019 and Chief Executive Officer of PSCM since 2009 and is responsible for managing our Investment

Advisor’s and PSCM’s overall business.

Long also served as our President from November 2019 to March 2022 and as President

of PSCM from 2009 to March 2020.

The business address of

each of our officers is c/o Palmer Square Capital BDC Inc., 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, Kansas 66205.

About Each Director’s Experience, Qualifications, Attributes or Skills

Board believes that, collectively, the directors have balanced and diverse experience, qualifications, attributes and skills, which allow

the Board to operate effectively in governing the Company and protecting the interests of its stockholders.

Below is a description of

the various experiences, qualifications, attributes and/or skills with respect to each director considered by the Board.

Long was appointed as our Chairman and Chief Executive Officer in 2019 and has served on our Board since November 2019.

also served as Chief Executive Officer of our Investment Advisor since 2019 and Chief Executive Officer of PSCM since 2009 and is responsible

for managing our Investment Advisor’s and PSCM’s overall business.

Long also served as our President from November 2019

to March 2022 and as President of PSCM from 2009 to March 2020.

Since PSCM’s inception, Mr.

Long has been successful in not only building a highly-experienced

investment team, but also an integrated credit investment platform that manages mutual fund offerings, private funds and separately managed

PSCM has a client list that spans not only institutions and family offices, but also registered investment advisers, banks/trusts,

and broker-dealers.

Long’s previous work experience includes key investment roles at Prairie Capital and Sandell Asset Management

as well as working at Morgan Stanley in the Credit Derivatives and Distressed Securities Group focused on the firm’s proprietary

Before Morgan Stanley, he worked at TH Lee Putnam Ventures, a private equity fund sponsored by Thomas H Lee Partners and

Putnam Investments.

Long has been successful in not only

building a highly-experienced investment team, but also an integrated credit investment platform that manages mutual fund offerings,

private funds and separately managed accounts.

PSCM has a client list that spans not only institutions and family offices, but also registered

investment advisers, banks/trusts, and broker-dealers.

Long’s previous work experience includes key investment roles at Prairie

Capital and Sandell Asset Management as well as working at Morgan Stanley in the Credit Derivatives and Distressed Securities Group focused

on the firm’s proprietary investments.

Before Morgan Stanley, he worked at TH Lee Putnam Ventures, a private equity fund sponsored

by Thomas H Lee Partners and Putnam Investments.

In that role, he also served on the Board of Directors of Avero, Inc.

and was a Board Observer for Parago, Inc.

started his career at JPMorgan & Co.

in Leveraged Finance and Mergers & Acquisitions (FIG Group) advising corporations and private

equity firms on investment banking and capital markets.

Long previously served on the board of trustees of Palmer Square Opportunistic

Income Fund (Nasdaq) from August 2014 to October 2018.

and was a Board

Observer for Parago, Inc.

He started his career at JPMorgan & Co.

in Leveraged Finance and Mergers & Acquisitions (FIG Group)

advising corporations and private equity firms on investment banking and capital markets.

Long previously served on the board of

trustees of Palmer Square Opportunistic Income Fund (Nasdaq) from August 2014 to October 2018.

Long is married to Angie K.

Long, our Chief Investment Officer.

an MBA degree from the Harvard Business School and an AB degree in Economics cum laude from Princeton University.

The Board believes that

Long’s strong investment and operating leadership experience qualifies him to serve on the Board.

Fox was appointed as our

Chief Financial Officer in 2019 and has served on our board since November 2019.

Fox has also served as Chief Financial Officer of

our Investment Advisor since 2019 and as President of PSCM since March 2020.

Fox previously served as our Treasurer from November

2019 to March 2022 and as Managing Director of PSCM from April 2013 to March 2020.

Prior to joining Palmer Square in April 2013, Mr.

worked for Sandler O’Neill and Partners from September 2011 to March 2013 where he was a Managing Director within Fixed Income where

he was involved in the structuring and sales of many products including Collateralized Loan Obligations.

Before Sandler O’Neill,

Fox worked for Société Générale as a Director within Global Markets Advisory where he was instrumental

in the US CDO/CLO and RMBS Credit Advisory effort.

His work included the restructuring of various structured credit legacy positions for

European institutions as well as the modeling behind the corporate rating and pricing for various structured products.

Prior to Société

Générale, Mr.

Fox was employed by JPMorgan Chase & Co/Bear Stearns, where he was an Associate Director in the FAST organization

focusing on the structuring of Trust Preferred CDOs and CLOs.

Also while at Bear Stearns, Mr.

Fox managed the global CDO analytics desk

which included intensive credit modeling of various asset classes.

Fox received a MS degree in Computer Information Systems from Arizona

State University and a BS degree in Mathematics and Geology from Northern Arizona University.

Fox holds the Series 7 and 63 licenses.

our Chief Investment Officer.

He received an MBA degree from the Harvard Business School and an AB degree in Economics cum laude from

Princeton University.

The Board believes that Mr.

Fox’s strong operational and financial experience qualifies him to serve on the Board.

Independent Directors

Webber has served on our

Board since November 2019.

Webber is a Financial Reporting Manager at The Anschutz Corporation, where she has worked for over 19 years.

Prior to Anschutz Corporation, she was a Supervising Audit Senior at KPMG, LLP from 1997 to 2000.

Webber has served on the board of

trustees of Palmer Square Opportunistic Income Fund (Nasdaq) since 2014, and previously served on the board of trustees of Montage Managers

Trust from July 2015 to March 2017.

Long’s strong investment and operating leadership experience qualifies him to

serve on the Board.

Fox was appointed as our Chief Financial Officer in 2019 and has served on our Board since November 2019.

Fox has also served as

Chief Financial Officer of our Investment Advisor since 2019 and as President of PSCM since March 2020.

Fox previously served as

our Treasurer from November 2019 to March 2022 and as Managing Director of PSCM from April 2013 to March 2020.

Prior to joining PSCM

in April 2013, Mr.

Fox worked for Sandler O’Neill and Partners from September 2011 to March 2013 where he was a Managing Director

within Fixed Income where he was involved in the structuring and sales of many products including Collateralized Loan Obligations.

Sandler O’Neill, Mr.

Fox worked for Société Générale as a Director within Global Markets Advisory where

he was instrumental in the US CDO/CLO and RMBS Credit Advisory effort.

His work included the restructuring of various structured credit

legacy positions for European institutions as well as the modeling behind the corporate rating and pricing for various structured products.

Prior to Société Générale, Mr.

Fox was employed by JPMorgan Chase & Co/Bear Stearns, where he was an

Associate Director in the FAST organization focusing on the structuring of Trust Preferred CDOs and CLOs.

Also while at Bear Stearns,

Fox managed the global CDO analytics desk which included intensive credit modeling of various asset classes.

Fox received a MS

degree in Computer Information Systems from Arizona State University and a BS degree in Geology with a minor in Mathematics from Northern

Arizona University.

The Board believes that Mr.

Fox’s strong operational and financial experience qualifies him to serve on the

Webber has served on our Board since November 2019.

is a Director of Investment Reporting at The Anschutz Corporation, where she has worked for over 23 years.

Prior to Anschutz Corporation,

she was a Supervising Audit Senior at KPMG, LLP from 1997 to 2000.

Webber has served on the board of trustees of Palmer Square Opportunistic

Income Fund (Nasdaq) since 2014, and previously served on the board of trustees of Montage Managers Trust from July 2015 to March 2017.

Webber received a BS in Accounting from Indiana University and received her CPA license in 1997.

The Board believes that Ms.

Webber’s strong financial and audit experience qualifies her to serve on the Board.

Neville has served on

our Board since November 2019.

strong financial and audit experience qualifies her to serve on the Board.

Neville has served on our Board since November 2019.

Neville is an active proprietary trader and investor.

He was a Portfolio Manager at Great Plains Principal

Trading from January 2012 through June 2019.

He was a Portfolio Manager

at Great Plains Principal Trading from January 2012 through June 2019.

Prior to Great Plains Principal Trading, Mr.

Neville served as a proprietary trader for over

23 years, focusing on agriculture futures and options as well as stock index futures and energy.

Neville has served on the board of

directors of Palmer Square Opportunistic Income Fund (Nasdaq) since 2014.

Neville served as

a proprietary trader for over 23 years, focusing on agriculture futures and options as well as stock index futures and energy.

has served on the board of directors of Palmer Square Opportunistic Income Fund (Nasdaq) since 2014.

The Board believes that Mr.

Neville’s strong investment

management and trading experience qualifies him to serve on the Board.

Christopher C.

Nelson has served on our

Board since November 2019.

Nelson is a Wealth Advisor at SeaCrest Wealth Management, where he has worked since May 2018.

SeaCrest Wealth Management, Mr.

Nelson was a Vice President at Enterprise Trust Company from February 2013 to February 2018, where he

led the Kansas City team.

strong investment management and trading experience qualifies him to serve on the Board.

Nelson has served on our Board since November 2019.

Nelson is a Wealth Advisor at SeaCrest Wealth Management, where he has worked

since May 2018.

Prior to SeaCrest Wealth Management, Mr.

Nelson was a Vice President at Enterprise Trust Company from February 2013 to

February 2018, where he led the Kansas City team.

Prior to that, Mr.

Nelson held investment management roles at The Private Bank, Kornitzer Capital Management,

and The Bank of New York.

Nelson received a Bachelor of Arts in English from Gettysburg College in Gettysburg, Pennsylvania.

believes that Mr.

Nelson held investment management roles at The Private Bank, Kornitzer

Capital Management, and The Bank of New York.

Nelson received a Bachelor of Arts in English from Gettysburg College in Gettysburg,

Pennsylvania.

The Board believes that Mr.

Nelson’s strong investment management experience qualifies him to serve on the Board.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the

Exchange Act requires the Company’s officers and directors, and persons who own more than 10% of our Common Stock, to file reports

of securities ownership and changes in such ownership with the SEC.

Officers, directors, and greater than 10% stockholders also are required

by SEC rules to furnish the Company with copies of all Section 16(a) forms they file.

Based solely on the Company’s

review of Forms 3, 4 and 5 filed by such persons and information provided by the Company’s directors and officers, the Company

believes that during the year ended December 31, 2022, all Section 16(a) filing requirements applicable to such persons were met

in a timely manner, with the following inadvertent exception:

Bloomfield, one of our executive officers, filed late one

Form 3 with respect to one transaction in shares of Common Stock during the reporting period.

Code of Conduct, Code of Ethics and Insider Trading Policy

We expect each of our officers

and directors, as well as any person affiliated with our operations, to act in accordance with the highest standards of personal and professional

integrity at all times and to comply with the Company’s policies and procedures and all laws, rules and regulations of any applicable

international, federal, provincial, state or local government.

To this effect, the Board has adopted a Code of Ethics.

The Code of Ethics

applies to all of the Company’s directors and officers.

As required by the 1940 Act

and the Advisers Act, we and our Investment Advisor have each adopted a Code of Ethics that establishes procedures that apply to our directors,

executive officers, officers, their respective staffs and the employees of our Investment Advisor with respect to their personal investments

and investment transactions.

Our Code of Ethics generally does not permit investments by our directors, officers or any other covered

person in securities that may be purchased or held by us.

Nomination of Directors

There have been no material

changes to the procedures by which stockholders may recommend nominees to our Board since the filing of our Proxy Statement for our 2022

Annual Meeting of Stockholders.

Audit Committee

The members of our Audit Committee

of the Board of Directors

Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee have been established by our Board.

members of our Audit Committee are Megan L.

Webber, James W.

and Christopher C.

Nelson, each of whom meets the independence standards established by the

SEC for audit committees and is independent for purposes of the 1940 Act.

Webber serves as Chair of our Audit Committee.

has determined that Ms.

Nelson, each of whom meets the independence

standards established by the SEC for audit committees and is independent for purposes of the 1940 Act.

Webber serves as Chair of

our Audit Committee.

Our Board has determined that Ms.

Webber is an “audit committee financial expert” under SEC rules.

Our Audit Committee’s responsibilities

include selecting our independent registered public accounting firm;

reviewing with such independent registered public accounting firm

the planning, scope and results of their audit of our financial statements;

pre-approving the fees for services performed;

in consultation with the independent registered public accounting firm, the adequacy of internal control systems;

reviewing our annual

financial statements;

Audit Committee’s responsibilities include selecting our independent registered public accounting firm;

reviewing with such independent

registered public accounting firm the planning, scope and results of their audit of our financial statements;

pre-approving the fees

for services performed;

reviewing, in consultation with the independent registered public accounting firm, the adequacy of internal control

reviewing our annual financial statements;

overseeing internal audit staff, if any, and periodic filings;

and receiving our audit reports and financial statements.

and receiving our

audit reports and financial statements.

and Corporate Governance Committee

members of the Nominating and Corporate Governance Committee are Megan L.

Webber, James W.

Neville and Christopher C.

Nelson, each of

whom is an independent director.

Nelson serves as Chairman of the Nominating and Corporate Governance Committee.

The Nominating and

Corporate Governance Committee operates pursuant to a charter approved by our Board.

The Nominating and Corporate Governance Committee

is responsible for selecting, researching and nominating qualified nominees to be elected to the Board by our stockholders at the annual

stockholder meeting, selecting qualified nominees to fill any vacancies on our Board or a committee of our Board (consistent with criteria

approved by our board of directors), developing and recommending to our Board a set of corporate governance principles applicable to

us and overseeing the evaluation of our Board and our management.

members of our Compensation Committee are Megan L.

Webber, James W.

Neville and Christopher C.

Nelson, each of whom is an independent

Neville serves as Chairman of the Compensation Committee.

The Compensation Committee is responsible for determining,

or recommending to the Board for determination, the compensation, if any, of our chief executive officer and all other executive officers.

The Compensation Committee also assists the Board with matters related to compensation generally, except with respect to compensation

of the directors.

It is the responsibility of the independent directors to review their own compensation and recommend to all of the

directors the appropriate level of compensation.

As none of our executive officers currently is compensated by us, the Compensation Committee

does not produce and/or review a report on executive compensation practices.

16(a) Beneficial Ownership Reporting Compliance

Section 16(a)

of the Exchange Act requires the Company’s officers and directors, and persons who own more than 10% of our Common Stock, to file

reports of securities ownership and changes in such ownership with the SEC.

Officers, directors, and greater than 10% stockholders also

are required by SEC rules to furnish the Company with copies of all Section 16(a) forms they file.

solely on the Company’s review of Forms 3, 4 and 5 filed by such persons and information provided by the Company’s directors

and officers, the Company believes that during the year ended December 31, 2023, all Section 16(a) filing requirements applicable

to such persons were met in a timely manner.

Conduct, Code of Ethics and Insider Trading Policy

expect each of our officers and directors, as well as any person affiliated with our operations, to act in accordance with the highest

standards of personal and professional integrity at all times and to comply with the Company’s policies and procedures and all

laws, rules and regulations of any applicable international, federal, provincial, state or local government.

To this effect, the Board

has adopted a Code of Ethics.

The Code of Ethics applies to all of the Company’s directors and officers.

required by the 1940 Act and the Advisers Act, we and our Investment Advisor have each adopted a Code of Ethics that establishes procedures

that apply to our directors, executive officers, officers, their respective staffs and the employees of our Investment Advisor with respect

to their personal investments and investment transactions.

Our Code of Ethics generally does not permit investments by our directors,

officers or any other covered person in securities that may be purchased or held by us.

have been no material changes to the procedures by which stockholders may recommend nominees to our Board since the filing of our Proxy

Statement for our 2022 Annual Meeting of Stockholders.

EXECUTIVE COMPENSATION

None of our officers receives

direct compensation from us.

of our officers receives direct compensation from us.

However, Messrs.

Long, Fox and Bloomfield and Ms.

Long, through their indirect financial interests in

our Investment Advisor, have an indirect pecuniary interest in the investment advisory fees paid by us under the Advisory Agreement.

addition, the Company is responsible for expenses incurred by the Administrator in connection with administering the Company’s business,

including making payments to the Administrator based upon the Company’s allocable portion of the Administrator’s overhead

and other expenses associated with performing its obligations under the Administration Agreement, including rent, the fees and expenses

associated with performing compliance functions and the allocable portion of the costs of compensation and related expenses of the Company’s

Chief Compliance Officer and Chief Financial Officer and their respective administrative support staffs.

Compensation of Directors

The Independent Directors

receive an annual fee of $25,000.

They also receive reimbursement of reasonable out-of-pocket expenses incurred in connection with

attending each regular Board meeting, each special meeting and each committee meeting attended.

We have obtained directors’ and

officers’ liability insurance on behalf of our directors and officers.

Betz, Long, Fox and Bloomfield and Ms.

Long, through their

indirect financial interests in our Investment Advisor, have an indirect pecuniary interest in the investment advisory fees paid by us

under the Advisory Agreement.

In addition, the Company is responsible for expenses incurred by the Administrator in connection with administering

the Company’s business, including making payments to the Administrator based upon the Company’s allocable portion of the

Administrator’s overhead and other expenses associated with performing its obligations under the Administration Agreement, including

rent, the fees and expenses associated with performing compliance functions and the allocable portion of the costs of compensation and

related expenses of the Company’s Chief Compliance Officer and Chief Financial Officer and their respective administrative support

Independent Directors receive an annual fee of $25,000.

They also receive reimbursement of reasonable out-of-pocket expenses incurred

in connection with attending each regular Board meeting, each special meeting and each committee meeting attended.

We have obtained directors’

and officers’ liability insurance on behalf of our directors and officers.

No compensation is paid to directors who are “interested

persons.” The Board reviews and determines the compensation of Independent Directors.

The following table shows

information regarding the compensation earned by our directors for the year ended December 31, 2022.

No compensation is paid by us to

any interested director or executive officer of the Company.

following table shows information regarding the compensation earned by our directors for the year ended December 31, 2023.

No compensation

is paid by us to any interested director or executive officer of the Company.

from Palmer Square Capital BDC Inc.

2 unchanged sentences

Capital BDC Inc.

to Director (1)

Independent Directors

2 unchanged sentences

Christopher D.

For a description of the Independent Directors’ compensation, see above.

We do not have a profit-sharing or retirement plan, and directors do not receive any pension or retirement benefits.

Compensation Committee

The Company does not have

a compensation committee because its executive officers do not receive compensation from us.

The Board, as a whole, is responsible for

reviewing the reimbursement by the Company to the Administrator of the allocable portion of the cost of the Company’s Chief Financial

Officer and Chief Compliance Officer and their respective staffs on an annual basis and also participates in the consideration of director

compensation.

Decisions on director compensation are based on a review of data of comparable BDCs.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL

OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table shows

information as of the February 28, 2023, unless otherwise indicated, regarding the beneficial ownership of our Common Stock by:

person known to the Company to beneficially own more than 5% of the outstanding shares of Common Stock;

(ii) each director of the

For a description of the

Independent Directors’ compensation, see above.

We do not have a profit-sharing

or retirement plan, and directors do not receive any pension or retirement benefits.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

following table shows information as of February 28, 2024, unless otherwise indicated, regarding the beneficial ownership of our Common

(i) each person known to the Company to beneficially own more than 5% of the outstanding shares of Common Stock;

director of the Company;

(iii) each executive officer of the Company;

and (iv) all directors and executive officers as a group.

to persons known to the Company to beneficially own more than 5% of the outstanding shares of Common Stock, the Company bases such knowledge

on beneficial ownership filings made by the holders with the SEC and other information known to the Company.

The percentage ownership

is based on 24,408,165 shares of our Common Stock issued and outstanding as of February 28, 2023.

Unless otherwise indicated, all persons

named as beneficial owners of our Common Stock have sole voting power and sole investment power with respect to the shares indicated

as beneficially owned.

None of the shares of Common Stock beneficially owned by our officers or directors has been pledged as security

for an obligation.

In addition, unless otherwise indicated, the address for each person named below is c/o Palmer Square Capital BDC

Inc., Attention:

Secretary, 1900 Shawnee Mission Parkway, Suite 315, Mission Woods, Kansas 66205.

Name and Address

With respect to persons known to the Company to beneficially own more than 5% of the outstanding shares of Common Stock, the Company

bases such knowledge on beneficial ownership filings made by the holders with the SEC and other information known to the Company.

The percentage ownership is based on 32,552,794 shares of our Common

Stock issued and outstanding as of February 28, 2024.

Unless otherwise indicated, all persons named as beneficial owners of our Common

Stock have sole voting power and sole investment power with respect to the shares indicated as beneficially owned.

None of the shares

of Common Stock beneficially owned by our officers or directors has been pledged as security for an obligation.

In addition, unless otherwise

indicated, the address for each person named below is c/o Palmer Square Capital BDC Inc., Attention:

Secretary, 1900 Shawnee Mission Parkway,

Suite 315, Mission Woods, Kansas 66205.

Percentage of

2 unchanged sentences

Christopher C.

All directors and executive officers as a group (8 persons)

All directors and executive officers as a group

Excelsior Holdings D2 LLC (4)

1 unchanged sentence

Caravel Holdings LLC (6)

Chinquapin Trust Company (8)

Represents less than 1.0% of the issued and outstanding shares of our Common Stock as of the Record Date.

(1) Beneficial

ownership has been determined in accordance with Rule 13d-3 under the Exchange Act.

First Trust Capital Management L.P.

Represents less than 1.0%

of the issued and outstanding shares of our Common Stock as of the Record Date.

Beneficial ownership has

been determined in accordance with Rule 13d-3 under the Exchange Act.

on a total of 32,552,794 shares of Common Stock issued and outstanding as of February 28,

98,005 shares of Common Stock indirectly held by the Angie K.

Long Irrevocable Trust, for which Mr.

Long disclaim beneficial

ownership except to the extent of his or her pecuniary interests therein.

of February 28, 2023, Excelsior Holdings D2 LLC (“Excelsior”) owned 3,288,139 shares of our Common Stock.

Long Irrevocable Trust, for

Long disclaim beneficial ownership except to the extent of his or

her pecuniary interests therein.

February 28, 2024, Excelsior Holdings D2 LLC (“Excelsior”) owned 3,730,065 shares of our Common Stock.

Excelsior Holdings

D LLC, a Delaware limited liability company (“Holdings LLC”) is the managing member of Excelsior.

As managing member of Excelsior,

Holdings LLC exercises dispositive and voting power over the shares beneficially owned by Excelsior.

The principal business address of

each of Excelsior and Holdings LLC is 6000 France Ave.

As managing member

of Excelsior, Holdings LLC exercises dispositive and voting power over the shares beneficially owned by Excelsior.

The principal

business address of each of Excelsior and Holdings LLC is 6000 France Ave.

S., Suite 550, Minneapolis, Minnesota, 55435.

of February 28, 2023, Alaris Master Fund LP owned 3,268,139 shares of our Common Stock.

February 28, 2024, Alaris Master Fund LP owned 3,707,377 shares of our Common Stock.

Alaris Capital, LLC is the general partner of

Alaris Master Fund LP and may be deemed to be an indirect beneficial owner of the shares.

The principal business address of each of Alaris

Master Fund LP and Alaris Capital, LLC is 4900 Main Street, Suite 600, Kansas City, Missouri 64112.

on information provided in a Schedule 13G/A filed on October 18, 2021 and a Form 4 filed on October 18, 2021, Caravel Holdings LLC reported

shared voting and dispositive power with respect to 3,983,290 shares of our Common Stock.

The shares are owned directly by Caravel Holdings

LLC, which is a wholly owned subsidiary of Seaboard Foods LLC, which is a wholly owned subsidiary of Seaboard Corporation.

Seaboard Foods

LLC and Seaboard Corporation may each be deemed to be an indirect beneficial owner of the shares.

The principal business address of each

of Caravel Holdings LLC, Seaboard Foods LLC and Seaboard Corporation is 9000 West 67th Street, Merriam, Kansas 66202.

of February 28, 2023, Martin Christopher Bicknell beneficially owned 2,346,812 shares of our Common Stock.

1,562,896 shares are owned

directly by 1248 Holdings, LLC and 783,915 shares are owned directly by BFFV19, LLC.

Bicknell is the Elected Manager of each of the

entities that collectively own all of the outstanding membership interests of BFFV19, LLC, and has sole voting and dispositive power

over the shares owned by 1248 Holdings, LLC, and thus, Mr.

of Alaris Master Fund LP and Alaris Capital, LLC is 4900 Main Street, Suite 600, Kansas City, Missouri 64112.

on information provided in a Schedule 13G/A filed on October 18, 2021 and a Form 4 filed on October 18, 2021, Caravel Holdings LLC

reported shared voting and dispositive power with respect to 3,983,290 shares of our Common Stock.

The shares are owned directly

by Caravel Holdings LLC, which is a wholly owned subsidiary of Seaboard Foods LLC, which is a wholly owned subsidiary of Seaboard

Seaboard Foods LLC and Seaboard Corporation may each be deemed to be an indirect beneficial owner of the shares.

principal business address of each of Caravel Holdings LLC, Seaboard Foods LLC and Seaboard Corporation is 9000 West 67th Street,

Merriam, Kansas 66202.

of February 28, 2024, Martin Christopher Bicknell beneficially owned 2,954,714 shares of

our Common Stock.

1,562,896 shares are owned directly by 1248 Holdings, LLC and 1,391,817

shares are owned directly by BFFV19, LLC.

Bicknell is the Elected Manager of each of

the entities that collectively own all of the outstanding membership interests of BFFV19,

LLC, and has sole voting and dispositive power over the shares owned by 1248 Holdings, LLC,

and thus, Mr.

Bicknell may be deemed to be an indirect beneficial owner of the shares owned

by each of BFFV19, LLC and 1248 Holdings, LLC.

The principal business address of each of BFFV19, LLC, 1248 Holdings, LLC and Mr.

is 5700 W 112th Street, Suite 500, Overland Park, Kansas 66211.

of February 28, 2023, Chinquapin Trust Company owned 1,407,445 shares of our Common Stock.

The shares are held of record by Limit &

Co., which serves as nominee for Chinquapin Trust Company.

Chinquapin Trust Company has sole voting and dispositive power over the shares

and is deemed to be the beneficial owner of the shares.

The principal business address for Chinquapin Trust Company is 2480 Pershing

Rd, Suite 600, Kansas City, Missouri 64108.

CERTAIN RELATIONSHIPS AND RELATED

TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Transactions with Related Persons

Investment Advisory Agreement

We have entered into the Advisory

Agreement with our Investment Advisor pursuant to which we pay the Investment Advisor a base management fee and incentive fee (which incentive

fee is only payable following a listing of the Company’s Common Stock on a national securities exchange) in exchange for the Investment

Advisor’s services sourcing, reviewing and structuring investment opportunities for us, underwriting and performing diligence on

our investments and monitoring our investment portfolio on an ongoing basis.

Our Board initially approved the Advisory Agreement at an

in-person meeting in November 2019, and the Company entered into the Advisory Agreement in January 2020.

The principal business address of each of

BFFV19, LLC, 1248 Holdings, LLC and Mr.

Bicknell is 5700 W 112th Street, Suite 500, Overland

Park, Kansas 66211.

on information provided in a Schedule 13G filed on January 25, 2024, First Trust Capital

Management L.P.

(“FTCM”), First Trust Capital Solutions L.P.

and FTCS Sub GP LLC (“Sub GP”) reported sole dispositive and voting power with

respect to 2,122,165 shares of our Common Stock.

FTCS and Sub GP may be deemed to control

FTCM and therefore may be deemed to be beneficial owners of the Common Stock reported in

the Schedule 13G.

The principal business address of FTCM, FTCS and Sub GP is 225 W.

Drive, 21st Floor, Chicago, IL 60606.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

with Related Persons

Advisory Agreement

have entered into the Advisory Agreement with our Investment Advisor pursuant to which we pay the Investment Advisor a base management

fee and incentive fee (which incentive fee is only payable following the completion of the IPO) in exchange for the Investment Advisor’s

services sourcing, reviewing and structuring investment opportunities for us, underwriting and performing diligence on our investments

and monitoring our investment portfolio on an ongoing basis.

Our Board initially approved the Advisory Agreement at an in-person meeting

in November 2019, and the Company entered into the Advisory Agreement in January 2020.

Unless terminated earlier as described below,

the Advisory Agreement will remain in effect from year to year if approved annually by our Board or by the affirmative vote of the holders

of a majority of our outstanding voting securities, and, in either case, if also approved by a majority of our Independent Directors.

At a meeting held on March 10, 2022, our Board approved an amended and restated Advisory Agreement, to be effective upon completion of

Our Board most recently determined to re-approve the Advisory Agreement for an additional one-year term ending January 13, 2025

at a meeting held on November 9, 2023.

Long, Fox, Bloomfield and Betz and Ms.

Long, through their indirect financial interests

in our Investment Advisor, have an indirect pecuniary interest in the investment advisory fees paid by us under the Advisory Agreement.

Under the incentive fee structure, our adjusted net investment income for purposes thereof will be computed and paid on income that may

include interest income that has been accrued but not yet received in cash.

This fee structure may give rise to a conflict of interest

for our Investment Advisor to the extent that it encourages the Investment Advisor to favor debt financings that provide for deferred

interest, rather than current cash payments of interest.

Additionally, in the Investment Advisor’s capacity as our valuation designee

pursuant to Rule 2a-5 under the 1940 Act, we rely on investment professionals from the Investment Advisor in connection with the valuation

of our portfolio investments.

While the valuation for each portfolio investment that constitutes a material portion of our portfolio

and that does not have a readily available market quotation will be reviewed by an independent valuation firm at least once annually,

the ultimate determination of fair value will be made by our Investment Advisor (subject to the Board’s oversight) and not by such

third-party valuation firm.

The participation of the Investment Advisor’s investment professionals in our valuation process could

result in a conflict of interest as the Investment Advisor’s management fee is based, in part, on the value of our total net assets.

For the year ended December 31, 2023, the Investment Advisor earned a base management fee of $8.4 million, offset by $1.1 million in

management fee waiver from the Investment Advisor, and did not earn an incentive fee, as our Common Stock was not listed on a national

securities exchange.

Administration

have entered into the Administration Agreement with the Administrator pursuant to which the Administrator furnishes us with office facilities

and equipment and provides us with clerical, bookkeeping, recordkeeping and other administrative services.

Our Board approved the Administration

Agreement in November 2019, and the Company entered into the Administration Agreement in January 2020.

Our Board most recently determined

to re-approve the Advisory Agreement for an additional one-year term at a meeting held in November 2022.

Long, Fox and Bloomfield

Long, through their indirect financial interests in our Investment Advisor, have an indirect pecuniary interest in the investment

advisory fees paid by us under the Advisory Agreement.

Under the incentive fee structure, our adjusted net investment income for purposes

thereof will be computed and paid on income that may include interest income that has been accrued but not yet received in cash.

fee structure may give rise to a conflict of interest for our Investment Advisor to the extent that it encourages the Investment Advisor

to favor debt financings that provide for deferred interest, rather than current cash payments of interest.

Additionally, in the Investment

Advisor’s capacity as our valuation designee pursuant to Rule 2a-5 under the 1940 Act, we rely on investment professionals from

the Investment Advisor in connection with the valuation of our portfolio investments.

While the valuation for each portfolio investment

that constitutes a material portion of our portfolio and that does not have a readily available market quotation will be reviewed by an

independent valuation firm at least once annually, the ultimate determination of fair value will be made by our Investment Advisor (subject

to the Board’s oversight) and not by such third-party valuation firm.

The participation of the Investment Advisor’s investment

professionals in our valuation process could result in a conflict of interest as the Investment Advisor’s management fee is based,

in part, on the value of our total net assets.

For the year ended December 31, 2022, the Investment Advisor earned a base management fee

of $8.3 million, offset by $1.0 million in management fee waiver from the Investment Advisor, and did not earn an incentive fee, as our

Common Stock was not listed on a national securities exchange.

Administration Agreement

We have entered into the Administration

Agreement with the Administrator pursuant to which the Administrator furnishes us with office facilities and equipment and provides us

with clerical, bookkeeping, recordkeeping and other administrative services.

Our Board approved the Administration Agreement in November

2019, and the Company entered into the Administration Agreement in January 2020.

Our Board most recently determined to re-approve the

Administration Agreement for an additional one-year term at a meeting held in November 2022.

Under the Administration Agreement, the Administrator

performs, or oversees the performance of, our required administrative services, which include, among other things, being responsible for

the financial records which we are required to maintain and preparing reports to our stockholders and reports filed with the SEC.

Resource Sharing Agreement

The Investment Advisor is

an affiliate of PSCM, with whom it has entered into a resource sharing agreement (the “Resource Sharing Agreement”).

this agreement, PSCM provides the Investment Advisor experienced investment professionals and access to the senior investment personnel

to re-approve the Administration Agreement for an additional one-year term ending January 13, 2025 at a meeting held on November 9, 2023.

Under the Administration Agreement, the Administrator performs, or oversees the performance of, our required administrative services,

which include, among other things, being responsible for the financial records which we are required to maintain and preparing reports

to our stockholders and reports filed with the SEC.

Sharing Agreement

Investment Advisor is an affiliate of PSCM, with whom it has entered into a resource sharing agreement (the “Resource Sharing Agreement”).

Under this agreement, PSCM provides the Investment Advisor experienced investment professionals and access to the senior investment personnel

and other resources of PSCM and its affiliates.

6 unchanged sentences

The Resource Sharing Agreement may be terminated by either party on 60 days’ notice.

License Agreement

We have also entered into

a license agreement (the “License Agreement”) with Palmer Square under which Palmer Square has granted us a non-exclusive,

have also entered into a license agreement (the “License Agreement”) with PSCM under which PSCM has granted us a non-exclusive,

royalty-free license to use the name “Palmer Square” for specified purposes in our business.

Under the License Agreement,

we have a right to use the “Palmer Square” name, subject to certain conditions, for so long as our Investment Advisor or one

of its affiliates remains our investment adviser.

Other than with respect to this limited license, we will have no legal right to the

“Palmer Square” name.

Policies and Procedures for Managing Conflicts;

we have a right to use the “Palmer Square” name, subject to certain conditions, for so long as our Investment Advisor or

one of its affiliates remains our investment adviser.

Other than with respect to this limited license, we will have no legal right to

the “Palmer Square” name.

and Procedures for Managing Conflicts;

Co-investment Opportunities

We have procedures in place

for the review, approval and monitoring of transactions involving the Company and certain persons related to the Company.

As a BDC, the

1940 Act restricts us from participating in certain transactions with certain persons affiliated with the Company, including our officers,

directors, and employees and any person controlling or under common control with us.

In addition, each of our directors and executive

officers is required to complete questionnaire on an annual basis designed to elicit information about any potential related-party transactions.

In order to ensure that we do not engage in any prohibited transactions with any persons affiliated with the Company, our officers screen

each of our transactions for any possible affiliations, close or remote, between the proposed portfolio investment, the Company, companies

controlled by us and our employees and directors.

We will not enter into any transactions unless and until we are satisfied that the transaction

is not prohibited by the 1940 Act or, if such prohibitions exist, we have taken appropriate actions to seek Board review and approval

or exemptive relief from the SEC for such transaction.

The Investment Advisor, Palmer

Square, and their affiliates, partners and employees (collectively, “PSCM Affiliates”) may engage in any other business and

furnish investment management and advisory services and other types of services to others which may include, without limitation, serving

as investment manager or sponsor of other collective investment vehicles or managed accounts that acquire interests in, provide financing

to or otherwise deal in securities or other investments that would be suitable investments for us.

PSCM Affiliates furnish investment

management or advisory services to other persons with investment policies similar or different to those of us.

Such persons may own securities

or other instruments of the same class or type or which may be senior to those held by us, and they have incentives, financial or otherwise,

to favor certain accounts or vehicles over others.

There is no assurance that accounts with similar strategies or investment objectives

will hold the same investments or perform in a similar manner.

This and other future activities of PSCM Affiliates may give rise to additional

conflicts of interest.

Subject to certain 1940 Act

restrictions on co-investments with affiliates or in accordance with the conditions of the co-investment exemptive relief provided by

the SEC (as discussed below), the Investment Advisor offers us the right to participate in all investment opportunities that it determines

are appropriate for us in view of our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements

and other relevant factors.

Such offers are subject to the exception that, in accordance with the Investment Advisor’s code of ethics

and allocation policies, we might not participate in each individual opportunity but, on an overall basis, the Investment Advisor will

seek to allocate investments across applicable client accounts in a manner that is fair and equitable on an overall basis.

We, the Investment Advisor

and Palmer Square have been granted exemptive relief from the SEC to permit greater flexibility to negotiate the terms of co-investments

if our Board determines that it would be advantageous for us to co-invest with investment funds, accounts and investment vehicles managed

by Palmer Square in a manner consistent with our investment objectives, positions, policies, strategies and restrictions as well as regulatory

requirements and other pertinent factors.

We believe that co-investment by us and investment funds, accounts and investment vehicles managed

by the Investment Advisor and its affiliates, including Palmer Square, may afford us additional investment opportunities and an ability

to achieve greater diversification.

Accordingly, our exemptive order permits us to invest with these investment funds, accounts and investment

vehicles managed in the same portfolio companies under circumstances in which such investments would otherwise not be permitted by the

Our exemptive relief permitting co-investments applies only if our independent directors review and approve each co-investment.

The exemptive relief imposes other constraints on co-investments that limit the number of instances when the Company may rely on its protections.

The Investment Advisor and

its affiliates have both subjective and objective policies and procedures in place that are designed to manage the potential conflicts

of interest between the Investment Advisor’s fiduciary obligations to us and its similar fiduciary obligations to other clients.

To the extent that we compete with entities sponsored or managed by the Investment Advisor or its affiliates for a particular investment

opportunity, the Investment Advisor will allocate investment opportunities across the entities for which such opportunities are appropriate,

consistent with (1) its internal conflict of interest and allocation policies, (2) the requirements of the Advisers Act, and (3) certain

restrictions under the 1940 Act regarding co-investments with affiliates.

The Investment Advisor’s allocation policies are intended

to ensure that, over time, we may generally share equitably with other accounts sponsored or managed by the Investment Advisor or its

affiliates in investment opportunities, particularly those involving a security with limited supply or involving differing classes of

securities of the same issuer which may be suitable for us and such other accounts.

There can be no assurance that the Investment Advisor’s

or its affiliates’ efforts to allocate any particular investment opportunity fairly among all clients for whom such opportunity

is appropriate will result in an allocation of all or part of such opportunity to us.

Not all conflicts of interest can be expected to

be resolved in our favor.

Director Independence

The 1940 Act requires that

at least a majority of the Company’s directors not be “interested persons” (as defined in the 1940 Act) of the Company.

On an annual basis, each member of our Board is required to complete an independence questionnaire designed to provide information to

assist the Board in determining whether the director is independent under the 1940 Act and our corporate governance guidelines.

has determined that each of our directors, other than Mr.

have procedures in place for the review, approval and monitoring of transactions involving the Company and certain persons related to

As a BDC, the 1940 Act restricts us from participating in certain transactions with certain persons affiliated with the

Company, including our officers, directors, and employees and any person controlling or under common control with us.

In addition, each

of our directors and executive officers is required to complete questionnaire on an annual basis designed to elicit information about

any potential related-party transactions.

In order to ensure that we do not engage in any prohibited transactions with any persons affiliated

with the Company, our officers screen each of our transactions for any possible affiliations, close or remote, between the proposed portfolio

investment, the Company, companies controlled by us and our employees and directors.

We will not enter into any transactions unless and

until we are satisfied that the transaction is not prohibited by the 1940 Act or, if such prohibitions exist, we have taken appropriate

actions to seek Board review and approval or exemptive relief from the SEC for such transaction.

Investment Advisor, PSCM, and their affiliates, partners and employees (collectively, “PSCM Affiliates”) may engage in any

other business and furnish investment management and advisory services and other types of services to others which may include, without

limitation, serving as investment manager or sponsor of other collective investment vehicles or managed accounts that acquire interests

in, provide financing to or otherwise deal in securities or other investments that would be suitable investments for us.

PSCM Affiliates

furnish investment management or advisory services to other persons with investment policies similar or different to those of us.

persons may own securities or other instruments of the same class or type or which may be senior to those held by us, and they have incentives,

financial or otherwise, to favor certain accounts or vehicles over others.

There is no assurance that accounts with similar strategies

or investment objectives will hold the same investments or perform in a similar manner.

This and other future activities of PSCM Affiliates

may give rise to additional conflicts of interest.

to certain 1940 Act restrictions on co-investments with affiliates or in accordance with the conditions of the co-investment exemptive

relief provided by the SEC (as discussed below), the Investment Advisor offers us the right to participate in all investment opportunities

that it determines are appropriate for us in view of our investment objective, positions, policies, strategies and restrictions as well

as regulatory requirements and other relevant factors.

Such offers are subject to the exception that, in accordance with the Investment

Advisor’s code of ethics and allocation policies, we might not participate in each individual opportunity but, on an overall basis,

the Investment Advisor will seek to allocate investments across applicable client accounts in a manner that is fair and equitable on

an overall basis.

the Investment Advisor and PSCM have been granted exemptive relief from the SEC to permit greater flexibility to negotiate the terms

of co-investments if our Board determines that it would be advantageous for us to co-invest with investment funds, accounts and investment

vehicles managed by PSCM in a manner consistent with our investment objectives, positions, policies, strategies and restrictions as well

as regulatory requirements and other pertinent factors.

We believe that co-investment by us and investment funds, accounts and investment

vehicles managed by the Investment Advisor and its affiliates, including PSCM, may afford us additional investment opportunities and

an ability to achieve greater diversification.

Accordingly, our exemptive order permits us to invest with these investment funds, accounts

and investment vehicles managed in the same portfolio companies under circumstances in which such investments would otherwise not be

permitted by the 1940 Act.

Our exemptive relief permitting co-investments applies only if our independent directors review and approve

each co-investment.

The exemptive relief imposes other constraints on co-investments that limit the number of instances when the Company

may rely on its protections.

Investment Advisor and its affiliates have both subjective and objective policies and procedures in place that are designed to manage

the potential conflicts of interest between the Investment Advisor’s fiduciary obligations to us and its similar fiduciary obligations

to other clients.

To the extent that we compete with entities sponsored or managed by the Investment Advisor or its affiliates for a

particular investment opportunity, the Investment Advisor will allocate investment opportunities across the entities for which such opportunities

are appropriate, consistent with (1) its internal conflict of interest and allocation policies, (2) the requirements of the Advisers

Act, and (3) certain restrictions under the 1940 Act regarding co-investments with affiliates.

The Investment Advisor’s allocation

policies are intended to ensure that, over time, we may generally share equitably with other accounts sponsored or managed by the Investment

Advisor or its affiliates in investment opportunities, particularly those involving a security with limited supply or involving differing

classes of securities of the same issuer which may be suitable for us and such other accounts.

There can be no assurance that the Investment

Advisor’s or its affiliates’ efforts to allocate any particular investment opportunity fairly among all clients for whom

such opportunity is appropriate will result in an allocation of all or part of such opportunity to us.

Not all conflicts of interest

can be expected to be resolved in our favor.

1940 Act requires that at least a majority of the Company’s directors not be “interested persons” (as defined in the

1940 Act) of the Company.

On an annual basis, each member of our Board is required to complete an independence questionnaire designed

to provide information to assist the Board in determining whether the director is independent under the 1940 Act and our corporate governance

Our Board has determined that each of our directors, other than Mr.

Christopher D.

Fox, is independent under the 1940 Act.

Our governance guidelines require any director who has previously been determined to be independent to inform the Chairman of the Board

and our Secretary of any change in circumstance that may cause his or her status as an Independent Director to change.

The Board limits

membership on the Audit Committee to Independent Directors.

Fox, is independent

under the 1940 Act.

Our governance guidelines require any director who has previously been determined to be independent to inform the

Chairman of the Board and our Secretary of any change in circumstance that may cause his or her status as an Independent Director to

The Board limits membership on the Audit Committee, Nominating and Corporate Governance Committee and Compensation Committee

to Independent Directors.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following aggregate fees

by PricewaterhouseCoopers LLP, the Company’s independent registered accounting firm for the fiscal years ended December 31, 2022

and December 31, 2021, were billed to the Company for work attributable to audit, tax and other services provided to the Company for such

Audit-Related Fees

All Other Fees

Audit fees consist of fees

billed for professional services rendered for the audit of our year-end financial statements and services that were provided by PwC for

the fiscal years ended December 31, 2022 and December 31, 2021 in connection with statutory and regulatory filings.

The following aggregate fees by PricewaterhouseCoopers LLP (“PwC”),

the Company’s independent registered accounting firm for the fiscal years ended December 31, 2023, 2022, and 2021, were billed to

the Company for work attributable to audit, tax and other services provided to the Company for such fiscal year.

Audit-Related Fees

Audit-related services consist

of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial

statements and are not reported under “Audit Fees.” These services include attest services that are not required by statute

or regulation and consultations concerning financial accounting and reporting standards.

Tax fees consist of fees billed

for professional services for tax compliance and filings.

These services include assistance regarding federal, state, and local tax compliance

All Other Fees

Other fees would include fees

billed for products and services other than the services reported above.

The Audit Committee has established

a pre-approval policy that describes the permitted audit, audit-related, tax and other services to be provided by PwC, the Company’s

independent auditor.

The policy requires that the Audit Committee pre-approve the audit and permissible non-audit services performed by

the independent auditor in order to assure that the provision of such service does not impair the auditor’s independence.

Any requests for audit, audit-related,

tax and other services that have not received general pre-approval must be submitted to the Audit Committee for specific pre-approval,

and cannot commence until such approval has been granted.

Normally, pre-approval is provided at regularly scheduled meetings of the Audit

However, the Audit Committee may delegate pre-approval authority to one or more of its members.

The member or members to whom

such authority is delegated must report any pre-approval decisions to the Audit Committee at its next scheduled meeting.

The Audit Committee

does not delegate its responsibilities to pre-approve services performed by the independent auditor to management.

fees consist of fees billed for professional services rendered for the audit of our year-end financial statements and services that were

provided by PwC for the fiscal years ended December 31, 2023, 2022, and 2021 in connection with statutory and regulatory filings.

Audit-Related

Audit-related

services consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review

of our financial statements and are not reported under “Audit Fees.” These services include attest services that are not

required by statute or regulation and consultations concerning financial accounting and reporting standards.

fees consist of fees billed for professional services for tax compliance and filings.

These services include assistance regarding federal,

state, and local tax compliance and filings.

fees would include fees billed for products and services other than the services reported above.

Audit Committee has established a pre-approval policy that describes the permitted audit, audit-related, tax and other services to be

provided by PwC, the Company’s independent auditor.

The policy requires that the Audit Committee pre-approve the audit and permissible

non-audit services performed by the independent auditor in order to assure that the provision of such service does not impair the auditor’s

independence.

requests for audit, audit-related, tax and other services that have not received general pre-approval must be submitted to the Audit

Committee for specific pre-approval, and cannot commence until such approval has been granted.

Normally, pre-approval is provided at

regularly scheduled meetings of the Audit Committee.

However, the Audit Committee may delegate pre-approval authority to one or more

of its members.

The member or members to whom such authority is delegated must report any pre-approval decisions to the Audit Committee

at its next scheduled meeting.

The Audit Committee does not delegate its responsibilities to pre-approve services performed by the independent

auditor to management.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) DOCUMENTS FILED AS PART OF THIS REPORT

The following is a list of

our consolidated financial statements included in this Annual Report on Form 10-K under Item 8 of Part II hereof:

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

Consolidated Statement of Assets and Liabilities as of December 31, 2022 and December 31, 2021

Consolidated Statement of Operations for the years ended December 31, 2022 and December 31, 2021

Consolidated Statement of Changes in Net Assets for the years ended December 31, 2022 and December 31, 2021

Consolidated Statement of Cash Flows for the years ended December 31, 2022 and December 31, 2021

Consolidated Schedule of Investments as of December 31, 2022 and December 31, 2021

Notes to Consolidated Financial Statements

Form of Articles of Amendment and Restatement (Incorporated by reference to Exhibit 3.1 to Registrant’s Amendment No.

1 to Registration Statement on Form 10 (File No.

DOCUMENTS FILED AS PART OF THIS REPORT

following is a list of our consolidated financial statements included in this Annual Report on Form 10-K under Item 8 of Part II hereof:

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

to Consolidated Financial Statements

of Independent Registered Public Accounting Firm

Statement of Assets and Liabilities as of December 31, 2023 and 2022

Statement of Operations for the years ended December 31, 2023, 2022, and 2021

Statement of Changes in Net Assets for the years ended December 31, 2023, 2022, and 2021

Statement of Cash Flows for the years ended December 31, 2023, 2022, and 2021

Schedule of Investments as of December 31, 2023 and 2022

to Consolidated Financial Statements

of Amendment and Restatement, dated January 17, 2020 (Incorporated by reference to Exhibit 3.1 to Registrant’s Amendment No.

1 to the Registration Statement on Form 10 (File No.

000-56126) filed on January 16, 2020).

Bylaws (Incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form 10 (File No.

of Amendment to the Articles of Amendment and Restatement, dated December 27, 2023 (Incorporated by reference to Exhibit (a)(2)

to Registrant’s Amendment No.

2 to the Registration Statement on Form N-2 (File No.

333-274967) filed on January 8, 2024).

(Incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form 10 (File No.

000-56126) filed on November

Description of securities (Incorporated by reference to Exhibit 4.1 to Registrant’s Annual Report on Form 10-K (File No.

000-56126) filed on March 12, 2021)

Investment Advisory Agreement, dated as of January 14, 2020, by and between the Registrant and Palmer Square BDC Advisor LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q (File No.

of securities (Incorporated by reference to Exhibit 4.1 to Registrant’s Annual Report on Form 10-K (File No.

000-56126) filed

on March 12, 2021)

Advisory Agreement, dated as of January 14, 2020, by and between the Registrant and Palmer Square BDC Advisor LLC (Incorporated by

reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q (File No.

000-56126) filed on May 15, 2020)

Form of Administration Agreement (Incorporated by reference to Exhibit 10.2 to Registrant’s Registration Statement on Form 10 (File No.

and Restated Investment Advisory Agreement by and between the Registrant and Palmer Square BDC Advisor LLC (Incorporated by reference

to Exhibit (g)(2) to Registrant’s Registration Statement on Form N-2 (File No.

333-274967) filed on October 13, 2023).

of Administration Agreement (Incorporated by reference to Exhibit 10.2 to Registrant’s Registration Statement on Form 10 (File

000-56126) filed on November 27, 2019)

Form of Advisory Agreement Waiver Letter (Incorporated by reference to Exhibit 10.3 to Registrant’s Registration Statement on Form 10 (File No.

of Advisory Agreement Waiver Letter (Incorporated by reference to Exhibit 10.3 to Registrant’s Registration Statement on Form

000-56126) filed on November 27, 2019)

Custody Agreement, dated as of December 17, 2019, by and between the Registrant and U.S.

Bank National Association (Incorporated by reference to Exhibit 10.4 to Registrant’s Amendment No.

Agreement, dated as of December 17, 2019, by and between the Registrant and U.S.

Bank National Association (Incorporated by reference

to Exhibit 10.4 to Registrant’s Amendment No.

1 to Registration Statement on Form 10 (File No.

000-56126) filed on January

Form of Indemnification Agreement for Directors and Officers (Incorporated by reference to Exhibit 10.5 to Registrant’s Registration Statement on Form 10 (File No.

of Indemnification Agreement for Directors and Officers (Incorporated by reference to Exhibit 10.5 to Registrant’s Registration

Statement on Form 10 (File No.

000-56126) filed on November 27, 2019)

Form of Trademark Licensing Agreement (Incorporated by reference to Exhibit 10.6 to Registrant’s Amendment No.

1 to Registration Statement on Form 10 (File No.

of Trademark Licensing Agreement (Incorporated by reference to Exhibit 10.6 to Registrant’s Amendment No.

1 to Registration

Statement on Form 10 (File No.

000-56126) filed on January 16, 2020)

Form of Subscription Agreement (Incorporated by reference to Exhibit 10.7 to Registrant’s Amendment No.

1 to Registration Statement on Form 10 (File No.

of Subscription Agreement (Incorporated by reference to Exhibit 10.7 to Registrant’s Amendment No.

1 to Registration Statement

on Form 10 (File No.

000-56126) filed on January 16, 2020)

Dividend Reinvestment Plan (Incorporated by reference to Exhibit 10.8 to Registrant’s Amendment No.

1 to Registration Statement on Form 10 (File No.

Reinvestment Plan (Incorporated by reference to Exhibit 10.8 to Registrant’s Amendment No.

1 to Registration Statement on Form

000-56126) filed on January 16, 2020)

Credit Agreement, dated February 18, 2020, by and among Palmer Square BDC Funding I LLC, as the borrower, Bank of America, N.A., as administrative agent and as lender, and BofA Securities, Inc., as sole lead arranger and sole book manager (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K (File No.

Agreement, dated February 18, 2020, by and among Palmer Square BDC Funding I LLC, as the borrower, Bank of America, N.A., as administrative

agent and as lender, and BofA Securities, Inc., as sole lead arranger and sole book manager (Incorporated by reference to Exhibit

10.1 to Registrant’s Current Report on Form 8-K (File No.

814-01334) filed on February 20, 2020)

Sale and Contribution Agreement, dated February 18, 2020, by and between the Registrant, as the seller, and Palmer Square BDC Funding I LLC, as the purchaser (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K (File No.

and Contribution Agreement, dated February 18, 2020, by and between the Registrant, as the seller, and Palmer Square BDC Funding

I LLC, as the purchaser (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K (File No.

filed on February 20, 2020)

Loan and Security Agreement, dated December 18, 2020, by and among the Registrant, as the collateral manager, Palmer Square BDC Funding II LLC, as the borrower, Wells Fargo Bank, National Association, as the administrative agent, U.S.

Bank National Association, as the collateral agent and custodian, and the lenders party thereto (Incorporated by reference to Exhibit 10.11 to Registrant’s Annual Report on Form 10-K (File No.

000-56126) filed on March 12, 2021)

Loan Sale Agreement, dated December 18, 2020, by and between the Registrant, as the seller, and Palmer Square BDC Funding II LLC, as the purchaser (Incorporated by reference to Exhibit 10.12 to Registrant’s Annual Report on Form 10-K (File No.

and Security Agreement, dated December 18, 2020, by and among the Registrant, as the collateral manager, Palmer Square BDC Funding

II LLC, as the borrower, Wells Fargo Bank, National Association, as the administrative agent, U.S.

Bank National Association, as

the collateral agent and custodian, and the lenders party thereto (Incorporated by reference to Exhibit 10.11 to Registrant’s

Annual Report on Form 10-K (File No.

000-56126) filed on March 12, 2021)

First Amendment to Credit Agreement, dated October 12, 2020, by and among Palmer Square BDC Funding I LLC, as the borrower, and Bank of America, N.A., as administrative agent and as lender (Incorporated by reference to Exhibit 10.13 to Registrant’s Annual Report on Form 10-K (File No.

Sale Agreement, dated December 18, 2020, by and between the Registrant, as the seller, and Palmer Square BDC Funding II LLC, as the

purchaser (Incorporated by reference to Exhibit 10.12 to Registrant’s Annual Report on Form 10-K (File No.

000-56126) filed

on March 12, 2021)

Amendment to Credit Agreement, dated October 12, 2020, by and among Palmer Square BDC Funding I LLC, as the borrower, and Bank of

America, N.A., as administrative agent and as lender (Incorporated by reference to Exhibit 10.13 to Registrant’s Annual Report

on Form 10-K (File No.

000-56126) filed on March 11, 2022)

Second Amendment to Credit Agreement, dated September 29, 2021, by and among Palmer Square BDC Funding I LLC, as the borrower, and Bank of America, N.A., as administrative agent and as lender (Incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q (File No.

Amendment to Credit Agreement, dated September 29, 2021, by and among Palmer Square BDC Funding I LLC, as the borrower, and Bank

of America, N.A., as administrative agent and as lender (Incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly

Report on Form 10-Q (File No.

814-01334) filed on November 15, 2021)

Omnibus Amendment to Loan Documents, dated February 3, 2023, by and among Palmer Square BDC Funding I LLC, as the borrower, Bank of America, N.A., as administrative agent and as lender, U.S.

Bank Trust Company, National Association, as the collateral administrator, and U.S.

Bank National Association, as the intermediary (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K (File No.

Amendment to Loan Documents, dated February 3, 2023, by and among Palmer Square BDC Funding I LLC, as the borrower, Bank of America,

N.A., as administrative agent and as lender, U.S.

Bank Trust Company, National Association, as the collateral administrator, and

Bank National Association, as the intermediary (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report

on Form 8-K (File No.

814-01334) filed on February 9, 2023)

Subsidiaries of Registrant

Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Chief Executive Officer pursuant to 18 U.S.C.

3 to Loan and Security Agreement, dated April 10, 2023, by and among Palmer Square BDC Funding II LLC, as the borrower, Palmer

Square Capital BDC Inc., as the collateral manager and equityholder, and Wells Fargo Bank, National Association, as administrative

agent and as lender.

(Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K (File No.

filed on April 13, 2023).

4 to Loan and Security Agreement, dated December 18, 2023, by and among Palmer Square BDC Funding II LLC, as the borrower, Palmer

Square Capital BDC Inc., as the collateral manager and equityholder, Wells Fargo Bank, National Association, as administrative agent

and as lender, U.S.

Bank Trust Company, National Association, as collateral agent, and U.S.

Bank National Association, as custodian

(Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K (File No.

814-01334) filed on December

Agency and Registrar Services Agreement by and between the Registrant and Equiniti Trust Company, LLC (Incorporated by reference

to Exhibit (k)(1) to Registrant’s Amendment No.

1 to the Registration Statement on Form N-2 (File No.

333-274967) filed on

November 20, 2023)

of Registrant

Certification

of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley

Certification

of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley

Certification

of Chief Executive Officer pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Certification of Chief Executive Officer pursuant to 18 U.S.C.

Certification

of Chief Executive Officer pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Palmer Square Capital BDC Inc.

Clawback Policy*

Inline XBRL Instance Document.*

Inline XBRL Taxonomy Extension Schema Document.*

Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

Inline XBRL Taxonomy Extension Definition Linkbase Document.*

Inline XBRL Taxonomy Extension Calculation Linkbase

Inline XBRL Taxonomy Extension Definition Linkbase

Inline XBRL Taxonomy Extension Label Linkbase Document.*

Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Inline XBRL Taxonomy Extension Presentation Linkbase

Cover Page Interactive Data File (formatted as Inline

XBRL and contained in Exhibit 101).

Filed herewith

FORM 10-K SUMMARY

The Registrant has elected not to provide summary

Registrant has elected not to provide summary information.

Pursuant to the requirements

of section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by

the undersigned, thereunto duly authorized.

of section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf

by the undersigned, thereunto duly authorized.

Palmer Square Capital BDC Inc.

March 10, 2023

February 28, 2024

/s/ Christopher D.

5 unchanged sentences

the capacities and on the dates indicated.

Christopher D.

Chief Executive Officer and Chairman of the Board

March 10, 2023

/s/ Christopher D.

Chief Executive Officer and Chairman of the Board of Directors

February 28, 2024

Christopher D.

(Principal Executive

(Principal Executive Officer)

/s/ Jeffrey D.

Chief Financial Officer and Director

March 10, 2023

February 28, 2024

(Principal Financial and Accounting Officer)

March 10, 2023

/s/ Christopher

March 10, 2023

February 28, 2024

/s/ Christopher C.

February 28, 2024

Christopher C.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures