パーマー・スクエア・キャピタルBDC (PSBD) 2026年第3四半期決算説明会：NAV上昇、レバレッジ低下

主要な要点

• パーマー・スクエア・キャピタルBDC（NYSE: PSBD）の2026年第3四半期の総投資収益は2,660万ドル、純投資収益は1,160万ドル（1株当たり0.38ドル）となりました。純投資収益は前年同期の1,360万ドル（1株当たり0.43ドル）から減少しました。
• 純資産価値（NAV）は、2026年第2四半期末の1株当たり13.21ドルから13.34ドルに増加しました。同社は、2025年第3四半期の1,030万ドルの損失に対し、計240万ドルの純実現・未実現利益を記録しました。
• PSBDは第3四半期に、普通配当0.36ドルと特別配当0.02ドルで構成される1株当たり計0.38ドルの配当を支払いました。取締役会は2026年第4四半期の普通配当を1株当たり0.36ドルとすることを発表しました。
• 同社は当四半期中に520万ドルの自社株買いを実施しました。経営陣によると、四半期末時点で自社株買いの承認枠は残額約2,480万ドルとなっており、自社株買いは引き続き短期的な資本配分の優先事項です。
• レバレッジは、債務返済とNAV上昇を反映し、第2四半期の1.71倍から1.63倍に低下しました。2026年9月30日時点の利用可能な流動性は約1億9,500万ドルでした。
• 経営陣は現在、広範なシンジケートローンよりもプライベート・クレジットの方が相対的な価値が高いと見ており、シンジケートローン市場内では新規発行よりもセカンダリー市場での機会を選好しています。

主要財務データ

事業およびポートフォリオの業績

PSBDのポートフォリオは引き続きシニア担保付債権に集中しています。四半期末時点でポートフォリオの97%がシニア担保付であり、45の産業に分散されています。上位10件の投資案件がポートフォリオ全体の10.92%を占め、平均ポジション規模は約410万ドルでした。

負債および収益発生証券の加重平均最終利回りは、公正価値ベースで11.99%、償却原価ベースで8.38%でした。第一抵当権設定（ファースト・リエン）借入人の公正価値加重平均EBITDAは4億8,300万ドル、シニア担保付レバレッジは5.71倍、インタレスト・カバレッジ・レシオは2.38倍でした。

新規のプライベート・クレジット・ローンは当四半期の投資活動の12.2%を占め、参照金利に対する加重平均スプレッドは659ベース・ポイントでした。経営陣によると、プライベート・クレジットはポートフォリオ全体のおよそ15%に拡大したとのことです。

不払計上（ノンアクルーアル）資産は、公正価値ベースで1ベース・ポイント未満、取得原価ベースで96ベース・ポイントにとどまりました。経営陣はポートフォリオの信用力に自信を示し、借入人は追加の利上げを吸収するのに十分な利息補償能力を維持していると述べました。

資金調達面では、PSBDは自社のBDC CLOの条件改定（リセット）と期間延長を行いました。この取引により、負債の加重平均コストはSOFR＋172ベース・ポイントからSOFR＋139ベース・ポイントに低下し、再投資期間は2031年7月まで延長され、満期は2039年7月に変更されました。同社はまた、未消化手数料を削減するため、バンク・オブ・アメリカの広範なシンジケートローン・ファシリティにおける余剰枠を減額しました。

経営陣の見通し

経営陣は、2027年に向けて1株当たり0.36ドルの普通配当の持続可能性に引き続き自信を示しています。普通配当を上回る利益については、同社の既存方針に基づき特別配当として分配される見込みです。

同社は、最近のリファイナンス活動および市場が織り込む基準金利の予想が収益力を下支えすると予想しています。経営陣はまた、CLOのリファイナンスと信用枠の余剰枠減少を受け、調達コストは比較的安定して推移すると見込んでいますが、融資枠自体は変動基準金利の変動に引き続き晒されています。

PSBDは、高水準の金利変動性と地政学的不確実性が第4四半期の案件活動の重荷となり続けると予想しています。経営陣によると、スポンサー主導の取引プロセスにはより時間がかかっているものの、スポンサーは最終的に取引を行う必要があり、活動は波を伴いながらも時間をかけて改善する見込みです。

資本配分は引き続き、新規投資、負債削減、および自社株買いのバランスを取っていきます。経営陣はレバレッジがさらに低下する可能性を示唆しましたが、単に新規の投下機会を追求する目的だけで、現在の水準からレバレッジを大幅に引き上げる予定はないと述べました。

リスクおよび注視事項

• 基準金利の上昇はPSBDの変動金利ポートフォリオの利回りを下支えするものの、持続的なインフレやさらなる利上げの可能性により、借入人の資金調達コストが増加する可能性があります。
• 軽油価格の上昇を含む中東や欧州での地政学的緊張は、経済成長にさらなる不確実性をもたらします。
• 広範なシンジケートローンのスプレッドは第3四半期の多くの期間でタイトな水準にとどまり、プライマリー市場の一部でリスク調整後のリターン可能性が制限されました。
• 9月下旬から10月にかけて信用市場の変動性が高まり、これが短期的なポートフォリオ評価額やNAVの安定性に圧力をかける可能性があります。
• AI関連の債券発行が投資家資金を巡って競合しているほか、データセンターの許認可や建設に対する反対意見がAIインフラ開発に影響を与える可能性があります。
• M&A活動の停滞や取引期間の長期化により、短期的な投下機会が制約される可能性があります。

アナリスト質疑応答のハイライト

プライベート・クレジット対シンジケート・ローン：経営陣は、プライベート・クレジットにおける機会の改善について、一部は非上場BDCからの資金流出に伴う緩やかなスプレッド拡大によるものと説明しました。広範なシンジケートローンにおいて、PSBDは現在、新規発行よりもセカンダリー市場でより魅力的な機会を見出しています。

配当カバー率：経営陣は、クレジット・スプレッドの拡大、9月の利上げ、および市場の予想に織り込まれた追加利上げがポートフォリオ利回りを下支えする可能性があると述べました。ポートフォリオのインタレスト・カバレッジ・レシオが2.4倍近くにあることから、経営陣は借入人がさらなる利上げを吸収するクッションを有していると考えており、普通配当のカバー率についても安心感を持っています。

ポートフォリオの回転率の上昇：リファイナンス活動の結果、スプレッドがもはやPSBDにとってリスクに見合うものではないと経営陣が判断した資金回収が行われました。同社はまた、より魅力的なスプレッドとリスク調整後リターンを提供する機会に資本を充当するため、CLOメザニン投資の相当部分を売却しました。

新規投資における満期の短期化：経営陣によると、一部のリファイナンスでは、丸々7年の取引ではなく2〜3年の延長にとどまりました。PSBDはまた、短期間での額面での返済やリファイナンスを目指し、額面に対してディスカウントで取引されている満期の短いセカンダリー・ローンを選別して買い付けました。

NAVの安定性：経営陣は、ポートフォリオ内の流動性ローンのエクスポージャーが短期的な評価変動を引き起こす可能性があることを認めました。しかし、市場の下落は高品質な債権を額面以下で取得する機会であり、長期的なポートフォリオの価値拡大を支える可能性があると見ています。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Hello, everyone. Welcome to Palmer Square Capital BDC's Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder this conference call is being recorded. At this time, I'd like to turn the call over to Jeremy Goff, Managing Director. You may begin.

Jeremy Goff

Welcome to Palmer Square Capital BDC's Third Quarter 2026 Earnings Call. Joining me this afternoon are Chris Long, Chairman and Chief Executive Officer; Matt Bloomfield, President; and Jeff Fox, Chief Financial Officer and Director. Palmer Square Capital BDC's Third Quarter 2026 financial results were released earlier today and can also be accessed on Palmer Square's Investor Relations website at palmersquarebdc.com. We also arranged for a replay of today's event that can be accessed on our website.

During this call, I want to remind you that the forward-looking statements we make are based on current expectations. The statements on this call that are not purely historical are forward-looking statements. These forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including and without limitation, market conditions, caught by uncertainty surrounding interest rates, changing economic conditions and other factors we identified in our filings with the SEC.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions can prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions can be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements made during this call are made as of the date hereof, and Palmer Square Capital BDC assumes no obligation to update the forward-looking statements unless required by law. To obtain copies of SEC related filings, please visit our website at palmersquarebdc.com. With that, I will now turn the call over to Chris Long.

Christopher Long

Good afternoon, everyone. Thank you for joining us today for Palmer Square Capital BDC's Third Quarter 2026 Conference Call. On today's call, I will provide an overview of our third quarter results touch on our market outlook, the current industry dynamics at play and then turn the call to the team to discuss our portfolio activity and financial results. PSDT delivered solid financial performance in the third quarter, supported by a disciplined capital allocation strategy.

We prioritize share repurchases during the quarter buying back $5.2 million of PSBB shares under the expanded repurchase program that was announced last quarter. This underscores our continued commitment to allocating capital in a way that prioritizes shareholder value while remaining selective in a moderate deal environment. During the third quarter, our team deployed $115 million of capital and generated total and net investment income of $26.6 million and $11.6 million, respectively.

We delivered net investment income of $0.38 per share and paid a $0.38 per share total dividend, which includes a $0.02 supplemental distribution above our base dividend. Notably, our dividend payout represents an attractive 11.4% yield on NAV and 15.3% yield on the stock price as of October 30. In further alignment with the priorities and approach I've just discussed, our Board has declared a fourth quarter base dividend of $0.36 per share, with the supplemental dividends determined in the normal course.

Turning to net asset value. Our NAV per share as of September 30, 2026, was $13.34, reflecting fair value adjustments resulting from pricing moves within the broadly syndicated loan market and an increase of $0.13 per share from the end of the second quarter. Now we'll provide additional color on our broader outlook for credit and how it specifically relates to PSBD's portfolio momentarily. But at a high level, we see a similar dynamic on what we discussed at the close of the second quarter.

A multifaceted market environment that remains fluid. In the third quarter, specifically, we experienced heightened interest rate volatility late in the quarter with a 10-year treasury yield recording 1 of its largest quarterly moves in history and the 30-year yield reaching multi-decade highs. Inflation remained persistent prompting the Fed Act in September as economic data reinforced the need for a rate hike with the potential for additional increases in the months ahead.

As I shared in previous quarters, the Palmer Square platform was built for markets like these. While the macro challenges we see today create a more complex investing environment, it is this kind of complexity that highlights the capabilities and experience of the platform behind PSBD and our ability to find opportunities and create shareholder value. As Matt will discuss, we continue to see and evaluate deals across our opportunity set in floating rate bank loans and private credit, which have continued to outperform traditional fixed income and corporate credit during the quarter.

We believe the yields across the broader BDC sector, particularly given current discount NAV are becoming increasingly difficult for investors to ignore. As we look at the opportunities set in front of us, we are further reassured by the resilience of corporate earnings and the relative stability of underlying credit performance and are optimistic that attractive opportunities can arise even a deal activity remains muted by rate volatility and broader sentiment.

Turning to AI and software for a moment. AI-related debt issuances continue to accelerate during the third quarter, competing with other income-generating products for investor capital. At the same time, we're closely monitoring growing opposition to data center permitting and construction, which could impact the pace of AI infrastructure development. This remains an important trend to watch, particularly given the AI infrastructure investment represents a meaningful portion of GDP and corporate earnings growth trajectories.

As we have previously discussed, we remain confident in our software portfolio, which is strategically focused on AI beneficiaries and management teams who have demonstrated an ability to adapt and innovate. As I conclude my remarks, I'd like to reiterate Palmer Square Capital Management's competitive advantage is 1 of the industry's leading global CLO managers. The breadth of our platform, which provides extensive visibility across the entire broadly syndicated loan landscape enables us to act selectively, and we believe the combined benefits to PSBD from our scale, long-standing relationships and significant sourcing capabilities within the syndicated loan market continue to be underappreciated by the market.

We remain focused on delivering the best possible outcomes for our portfolio and most importantly, our shareholders. We believe the flexibility of our liquid portfolio, combined with our active management approach and line of sight across the leveraged loan market, positions us well to execute as market conditions evolve. Looking ahead, if interest rate volatility and geopolitical uncertainty remain elevated, we expect it to continue weighing on deal activity in the fourth quarter.

From our recent conversations with sponsors, we've heard anecdotally that transaction processes are taking longer to complete and deal time lines are increasingly being extended. That said, sponsors ultimately need to transact, and we expect activity to improve over time, although the pace of that improvement may be uneven. With that, I will hand the call over to Matt.

Matthew Bloomfield

Thank you, Chris. As Chris alluded to, credit performance remains consistent despite a volatile macro backdrop, which has been further compounded by inflationary pressures in the Fed increasing interest rates in September. Rising diesel prices resulted from ongoing geopolitical tensions in the Middle East and Europe pose additional uncertainties related to the outlook for economic growth. Growing concerns about the cost of AI-related build-outs and the resulting impact rising AI debt levels have had on credit spreads has further added to recent credit volatility.

In light of these dynamics and consistent with our expectations through the summer, the BSL market saw a relatively subdued but steady activity during the quarter, with a pickup in deal flow following Labor Day, followed by a notable pullback as we moved into the fourth quarter. As spreads remain tight, partly driven by market technicals, we saw several private credit borrowers refinance into the BSL market to take advantage of more attractive pricing.

Encouragingly, we have also seen a modest pickup in sponsor-backed M&A activity across the software sector. This momentum, coupled with multiple high-profile software refinancing including Proofpoint, which priced in July and Sophos, which priced in September demonstrates the market's willingness to underwrite risk in the sector even if lenders remain increasingly risk-averse. As we have discussed in the past, for the right opportunities in the software sector, such as these and cybersecurity, we believe there will continue to be strong relative value and total return opportunities for those willing to do the work.

During the quarter, we also observed that some lenders were able to secure more favorable terms, including stronger credit documentation, wider spreads, and in 1 instance, additional junior capital support, which we view as a constructive development for lenders. Turning to the portfolio. We are pleased with performance during the third quarter. generating net investment income of $0.38 per share, $0.02 above our base dividend, along with modest NAV accretion compared to the second quarter.

We also continue to focus efforts on optimizing the right side of the balance sheet, and we're able to reduce leverage while simultaneously returning capital to our shareholders through our share repurchase program. These results reflect our active and disciplined approach to managing both our investments and balance sheet. As discussed on our last earnings call, during the quarter, we reset and extended our BDC CLO lowering the weighted average cost of debt to SOFR plus 139 from SOFR plus 172, while extending the reinvestment period to July 2031 and maturity to July 2039.

Given the lower cost of financing to our CLO, we also reduced excess capacity under our Bank of America BSL funding facility to reduce associated unused fees. Together, these actions help enhance our funding efficiency and reduced carrying costs while preserving liquidity and financial flexibility should M&A activity accelerate. Notably, we reduced our leverage from 1.71x in the second quarter of 2026 to 1.63x in the third quarter of 2026.

This was driven by a combination of debt paydown and NAV appreciation during the quarter. We are pleased with the strength and flexibility of our balance sheet, which positions us to capitalize on attractive investment opportunities as they arise. Importantly, share repurchases remain a top near-term priority as we evaluate capital allocation opportunities against our broader investment mandate. Tactically, we currently see better relative value in private credit compared to the syndicated loan market given prevailing spread dynamics. And within the BSL market, we see more attractive risk-adjusted returns in the secondary market compared to new issuance.

Our team continues to actively evaluate these opportunities and allocate where we see the most compelling value and while these are how we currently see the opportunity set, given the fluidity of the market, that can certainly change. Our investment portfolio as of September 30, 2026, had a fair value of approximately $1.09 billion, diversified across 45 industries that demonstrate strong credit quality, industry and company-specific tailwinds in a variety of end markets.

This compares to a fair value of $1.11 billion at the end of the second quarter of 2026, reflecting a decrease of approximately 2.3%. In the third quarter, we invested $115 million of capital, which included 31 new investment commitments at an average value of approximately $3.5 million. During the same period, we realized approximately $165.8 million through repayments and sales.

To recap key portfolio highlights, at the end of the third quarter, our weighted average total yield to maturity of debt and income producing securities at fair value was 11.99% and our weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.38%. We believe our focus on first lien loans, combined with diversification across industries and company size contributes to a strong credit profile with exposure to 45 different industries.

Further, our 10 largest investments account for just 10.92% of the overall portfolio, and our portfolio is 97% senior secured with an average hold size of approximately $4.1 million. On a fair value-added basis, our first lien borrowers have a weighted average EBITDA of $483 million, senior secured leverage of 5.71x and interest coverage of 2.38x. Additionally, new private credit loans comprised 12.2% of overall new investments at a weighted average spread of 659 basis points over the reference rate.

On a fair value basis, nonaccruals represent less than 1 basis points and on an at-cost basis, only 96 basis points. Our fixed income represents approximately 2.18% of total investment income well below our peers in the industry average. We've maintained an average internal rating of 3.6 on a fair valuated basis for all loan investments. Our rating is derived from a unique relative value-based scoring system. Stepping back, the line between syndicated and direct lending continues to blur with borrower relationships increasingly expanding both markets. We believe our ability to invest across these financing channels is a competitive advantage, allowing us to maintain and expand incumbent relationships while leveraging knowledge of these borrowers to identify attractive investment opportunities.

At the same time, we remain disciplined in our approach to capital allocation, weighing new investments against other opportunities, including share repurchases with the goal of maximizing value for shareholders. As we closed out the year, we remain confident in the credit performance of our portfolio and the sustainability of the base dividend heading into 2027. We expect recent refinancing activity to be additive to earnings power and market implied base rate expectations to be supportive as well. Now I'd like to turn the call over to Jeff, who will review our third quarter 2026 financial results.

Jeffrey Fox

Thank you, Matt. Total investment income was $26.6 million for the third quarter of 2026, down 16.1% from the $31.7 million for the comparable prior year period. Income generation during the quarter reflected contractual interest income from our investments, which was impacted by lower base rates versus the prior year as well as a modest amount of paydown related income and fee income. Total net expenses for the third quarter were $14.9 million compared to $18 million for the prior year period.

Net investment income for the third quarter of 2026 was $11.6 million or $0.38 per share compared to $13.6 million or $0.43 per share for the comparable period last year. During the third quarter of 2026, the company had a total net realized and unrealized gains of $2.4 million compared to total net realized and unrealized losses of $10.3 million in the third quarter of 2025.

This consisted of net unrealized depreciation of $2.2 million related to existing portfolio investments and net unrealized appreciation of $9.2 million related to exited portfolio investments. At the end of the third quarter, NAV per share was $13.34 and increasing from $13.21 at the end of the second quarter of 2026. Moving to our balance sheet. Total assets were $1.1 billion and total net assets were $403.4 million as of September 30, 2026.

At the end of the third quarter, our debt-to-equity ratio was 1.63x compared to 1.71x at the end of the second quarter of 2026. Available liquidity, consisting of cash and undrawn capacity on our credit facilities was approximately $195 million. This compares to approximately $331 million at the end of the second quarter of 2026, and finally, on November 4, the Board of Directors declared a fourth quarter 2026 base dividend of $0.36 per share, in line with our dividend policy. Furthermore, our policy continues to distribute excess earnings in the form of a quarterly supplemental distribution. And with that, I'd now like to open the call up for questions.

Operator

[Operator Instructions]

Your first question comes from the line of Kenneth Lee with RBC Capital Markets.

質疑応答

Kenneth Lee

Just 1 on the liquid loan markets there, and you mentioned in the prepared remarks that you're preferring private credit versus the more liquid side right now. And you also mentioned that spreads remain tight. Just wondered if you could give a little bit more color in terms of some of the terms and documentation that you're seeing in the BSL markets right now?

Matthew Bloomfield

Yes. Ken, it's Matt. Thank you for the question. Yes, that's right. I mean I think on the margin, we do see a little bit better relative value, particularly from a spread perspective. on the private credit portion of the market. I think with some continued outflows in non-traded BDCs that's led to, I'd say, modest spread widening in that market. And so net-net, we think there continue to be some interesting opportunities there throughout most of the third quarter, spreads remained relatively tight on the broadly syndicated side of things, talking about kind of the primary market there, especially with some of the deal flow post Labor Day but certainly, what we've seen over the month of October with a lot of increased rate volatility in general, there's certainly some more, I'd say, interesting opportunities in the broadly syndicated second, broadly syndicated secondary market, as we mentioned in the prepared remarks.

To be quite frank, we have seen a whole host of kind of new issues coming to the market here recently as well. So I think net-net, from our vantage point, we think there'll be some better things to do on the secondary side of things versus primary. And as we move into early next year, that tends to be a slower quarter in general from M&A activity and deal flow. But we'll have to see how things evolve over the next few months.

Kenneth Lee

Great. Very helpful there. And just 1 follow-up, if I may. You you briefly referenced the dividend outlook there or at least the coverage. I wonder if you could just further expand upon that, thoughts on dividend coverage, especially given the current rate outlook and some of the potential deal activity that you see coming up?

Unknown Executive

Sure. Yes, I think as we kind of look forward and model out kind of where the portfolio sits today from a spread perspective, obviously, I alluded to my comments on some more attractive spreads on the private credit side. And certainly have seen some spread widening across most credit markets, if not all credit markets in October. So feel net-net better just about where spreads are at. Obviously, base rates, we saw an increase from the Fed in September I think the market is trying to decide which way we're headed on a go-forward basis, but certainly, there's been a little bit more rate hikes priced in throughout next year.

Which from our vantage point, we would certainly view as a bit of a tailwind for yields on the portfolio. All within the fact that borrowers are still in a very good shape from an interest coverage standpoint. We said at 2.4x and just coverage across our portfolio. So we feel like there's a good cushion for those borrowers to absorb some more rate hikes without causing too much in the way of stress from a cash flow standpoint. So all that put together, again, we feel pretty good about where we sit from a base dividend standpoint on the go forward and certainly anticipate paying out any of the additional excess income generated through the supplementals.

Operator

Your next question comes from the line of Melissa Wedel with UBS. Your next question comes from the line of Ethan Kaye with Lucid Capital Markets.

Ethan Kaye

Just wanted to ask about interest costs going forward. I know there were maybe some puts and takes here this quarter as it relates to kind of the CLO refinancing and the excess capacity removal. Can you talk about kind of like run rate if you expect this to be kind of a good run rate going forward, what we saw in 3Q here?

Matthew Bloomfield

Ethan, it's Matt. Thank you for that question. Yes, I think we feel pretty good about kind of where the right side of the balance sheet is now post the refinancing and extension on the CLO and the downsizing of the BofA facility. All of those are obviously floating rate based, so they all kind of matriculate wherever base rates go. But from the spreads on those perspective, we feel really good about where those are at.

But we got very nice execution kind of took advantage of all the comments we've made over the past several quarters about spreads being tight across most credit markets. And so we certainly look to take advantage of that in the third quarter as well by tightening those up. So I think on a go-forward basis, those should be pretty steady state, and we feel good for the kind of medium to longer term with those facilities in place.

Ethan Kaye

Great. And then I guess 1 more on the portfolio turnover a little bit higher this quarter, certainly relative to 1H and seemingly relative to kind of what some peers have shown so far this quarter. Anything that kind of drove the elevated exit levels?

Christopher Long

I think we as we look across the portfolio during the quarter, we did see a fair amount of refinancing activity on the broadly syndicated side of things. As we alluded to in some prior calls, spreads remain pretty tight and in some cases, kept tightening throughout the quarter. We just thought from a relative value standpoint and a risk-adjusted return standpoint that we weren't necessarily being compensated for some of those. So we just took the paydowns in those cases. We also, as you'll probably see in the 10-Q, we sold a lot of our CLO mezz investments in the quarter.

Again, as we've talked about, spreads being really tight across most credit markets, we just thought there'll be better opportunities from a capital deployment and from a spread perspective in other asset classes on a go-forward basis. So those are kind of the 2 I would highlight as being kind of ones to note in the quarter. But again, we also think we've got a lot of capacity now should volatility persist and more interesting opportunities arise on the secondary side of things on the syndicated loan side.

And certainly, as we've talked about in the prepared remarks, continue to think share repurchases make a lot of sense given where discounts are and where kind of the return on equity sits from those buybacks. And debt pay down as well. We mentioned in the quarter, we paid down some of our debt facilities to continue to manage the overall leverage level. So those are all things that I think look pretty consistent as we sit here today in the fourth quarter.

Ethan Kaye

And 1 more quick one, if I may. Noticed the weighted average maturity on new investment commitments this quarter looks significantly lower, simply less than previous quarters. Does that have to do with kind of more secondary opportunities? Or I guess what's driving that?

Christopher Long

Yes, good catch and noted on that. I think the main thing we've seen there is we alluded to a couple of the refinancings that got done in the quarter most of those or some of those that we've seen and certainly ones that we participated in, in this quarter tended to be kind of 2- to 3-year extensions versus full 7-year refinancing so that's part of it. I think those -- when it's a shorter wall, those tend to be more attractive in certain situations, not every situation.

But for those select refinancings we participated in, that was a dynamic at play there. And then, yes, to your other comment, secondary transactions where we can find credits that we feel very comfortable in from a credit quality standpoint and a repayment perspective, to the extent we can pick those up at discounts to par and those that have shorter maturity profiles we think that kind of pulled the par or the ability to get refinanced out at par on a shorter basis and makes a lot of sense for the portfolio as well.

Operator

[Operator Instructions]

Your next question comes from the line of Melissa Wedel with UBS.

Melissa Wedel

Hopefully, you can hear me this time. I appreciate you taking my question. Wanted to touch on the repurchase activity. Can you remind us if I missed it, I apologize, remind us how much remaining capacity is on that plan?

Matthew Bloomfield

Yes. Of course, Melissa. This is Matt again. We have -- as of the end of the third quarter, about $24.8 million left on that plan. So quite a bit of capacity left even after the $5.2 million this quarter.

Melissa Wedel

Got it. And then, of course, leverage did come down during the quarter, and you had net exits just wondering how you're feeling about 1.63x at the end of the third quarter? And how much room do you think that -- how you balance the additional attractive potential repurchases you could continue to do going forward versus new capital deployment? And basically should -- are you managing to maintain leverage at that level? Or how are you thinking about it?

Matthew Bloomfield

Yes. I mean I think we talked last quarter, we were comfortable at the 1.71x. We certainly didn't want to go much higher than that. But given our ability to managed leverage from a debt paydown perspective, from the liquidity in our underlying portfolio. We felt really good about that. I'd say during the quarter, as we saw those opportunities come up that I just talked about on the prior question, we didn't think it made sense to stay involved at some of those spread levels.

So we took those paydowns, certainly paid down some debt with that. As we sit here in the fourth quarter, we'll kind of make those same judgments if things aren't attractive from a relative value standpoint, we're happy to continue to take the financings and deploy that into some debt paydown and to share buybacks. But as I noted, in October with some of the activity we've seen in the broader markets, on the margin, things are getting a little bit more interesting from a deployment standpoint.

So we'll balance all of those things, but we feel good about where we sit from a leverage standpoint. Certainly, that can come down. I don't know that we'll take it too much higher from an opportunity deployment that, but it's something that we feel very comfortable managing and we'll just kind of see where the opportunity set lies as we move forward through the rest of this quarter and beyond.

Melissa Wedel

I think I meant the end of the Queue, so I'll ask 1 more. This was a good quarter also in terms of sort of sending the outflows on NAV or the NAV depreciation and had not just stabilization but a slight uptick quarter-over-quarter can you talk about how you're thinking about NAV stability going forward? Because it's definitely an area we get questions about.

Matthew Bloomfield

Yes. I mean I think it was kind of to unpack the third quarter on a monthly basis. I'd say July and August were pretty steady kind of loan prices matriculated higher in general in the syndicated loan market. as things were pretty stable. The back half of September got a little volatile. As we just talked about October in general, it was a pretty volatile market in credit at large, especially with everything going on in broader rates and inflation and what not.

But we would ultimately like to see more stability across the market. I think it's just good from a portfolio stabilization level. I think we've obviously increased our private credit allocation over the past couple of years to roughly 15% of the portfolio now. So there are things, I think we've looked to do to, hopefully, make things a little bit more stable. But as I mentioned, that volatility unlocks a lot of opportunities as well when you can execute in the secondary market at discounts to par.

Over the long term, we think that should lead to accretiveness across the portfolio. And sometimes there's a little bit more volatility in the short term. But when you see good credits that go from par and trade down a few points to the extent you can take advantage of that, we think that should build things back into the portfolio and lead to good returns on a go-forward basis, too. So that's kind of how we think about it. We're cognizant of it, but also with the liquid nature of our portfolio or at least the majority of the portfolio, that's something that's a little bit part of it, I suppose.

Operator

We have reached the end of our Q&A session. I will now turn the call back to Jeremy Goff, Managing Director, for closing remarks.

Jeremy Goff

Thank you, operator, and thank you all for your time today. We look forward to updating everyone on our fourth quarter and 2026 full year results in the New Year. Have a great rest of your day.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.