Cuộc họp công bố kết quả kinh doanh Quý 3/2026 của Palmer Square Capital BDC (PSBD): NAV tăng, đòn bẩy giảm

Điểm tin chính

• Palmer Square Capital BDC (NYSE: PSBD) ghi nhận tổng thu nhập đầu tư quý 3 năm 2026 đạt 26,6 triệu USD và thu nhập đầu tư ròng đạt 11,6 triệu USD, tương đương 0,38 USD/cổ phiếu. Thu nhập đầu tư ròng giảm từ mức 13,6 triệu USD, tương đương 0,43 USD/cổ phiếu, của cùng kỳ năm trước.
• Giá trị tài sản ròng (NAV) tăng lên 13,34 USD/cổ phiếu từ mức 13,21 USD vào cuối quý 2 năm 2026. Công ty đã ghi nhận tổng lãi ròng đã thực hiện và chưa thực hiện là 2,4 triệu USD, so với khoản lỗ 10,3 triệu USD trong quý 3 năm 2025.
• PSBD đã chi trả tổng mức cổ tức quý 3 là 0,38 USD/cổ phiếu, bao gồm cổ tức cơ bản 0,36 USD và khoản phân phối bổ sung 0,02 USD. Hội đồng quản trị đã công bố mức cổ tức cơ bản quý 4 năm 2026 là 0,36 USD/cổ phiếu.
• Công ty đã mua lại 5,2 triệu USD cổ phiếu trong quý. Ban lãnh đạo cho biết khoảng 24,8 triệu USD vẫn còn lại theo hạn mức ủy quyền mua lại vào cuối quý, với việc mua lại cổ phiếu tiếp tục là ưu tiên phân bổ vốn trong ngắn hạn.
• Tỷ lệ đòn bẩy giảm xuống 1,63 lần từ mức 1,71 lần trong quý 2, phản ánh việc trả nợ và gia tăng NAV. Thanh khoản khả dụng đạt khoảng 195 triệu USD vào ngày 30 tháng 9 năm 2026.
• Ban lãnh đạo hiện thấy giá trị tương đối ở mảng tín dụng tư nhân tốt hơn so với các khoản vay hợp vốn diện rộng, đồng thời ưu tiên các cơ hội trên thị trường thứ cấp hơn là phát hành mới trong thị trường vay hợp vốn.

Dữ liệu tài chính cốt lõi

Hiệu quả kinh doanh và danh mục đầu tư

Danh mục đầu tư của PSBD tiếp tục tập trung vào tín dụng bảo đảm ưu tiên. Vào cuối quý, 97% danh mục đầu tư là nợ bảo đảm ưu tiên và được đa dạng hóa trên 45 ngành. 10 khoản đầu tư lớn nhất chiếm 10,92% danh mục, trong khi quy mô vị thế trung bình là khoảng 4,1 triệu USD.

Lợi suất đến hạn tổng hợp bình quân gia quyền của các khoản nợ và chứng khoán sinh lời đạt 11,99% theo giá trị hợp lý và 8,38% theo giá trị phân bổ. Các bên vay bảo đảm quyền ưu tiên thứ nhất (first-lien) có EBITDA bình quân gia quyền là 483 triệu USD, đòn bẩy bảo đảm ưu tiên là 5,71 lần và tỷ lệ khả năng thanh toán lãi vay là 2,38 lần trên cơ sở trọng số giá trị hợp lý.

Các khoản vay tín dụng tư nhân mới chiếm 12,2% hoạt động đầu tư trong quý và có biên độ bình quân gia quyền là 659 điểm cơ bản trên lãi suất tham chiếu. Ban lãnh đạo cho biết tín dụng tư nhân đã tăng lên khoảng 15% tổng danh mục đầu tư.

Tỷ lệ nợ không dồn tích tiếp tục ở mức dưới 1 điểm cơ bản theo giá trị hợp lý và là 96 điểm cơ bản theo giá gốc. Ban lãnh đạo thể hiện sự tự tin vào hiệu quả tín dụng của danh mục đầu tư và cho biết các bên vay vẫn duy trì đủ khả năng thanh toán lãi vay để hấp thụ các đợt tăng lãi suất tiếp theo.

Về phía nguồn vốn, PSBD đã tái thiết lập và gia hạn hợp đồng CLO BDC của mình. Giao dịch này giúp giảm chi phí nợ bình quân gia quyền xuống SOFR cộng 139 điểm cơ bản từ mức SOFR cộng 172 điểm cơ bản, kéo dài thời gian tái đầu tư đến tháng 7 năm 2031 và chuyển ngày đáo hạn sang tháng 7 năm 2039. Công ty cũng giảm hạn mức dư thừa theo hạn mức vay hợp vốn diện rộng tại Bank of America để giảm phí không sử dụng.

Triển vọng từ Ban lãnh đạo

Ban lãnh đạo cho biết vẫn tự tin vào tính bền vững của mức cổ tức cơ bản 0,36 USD/cổ phiếu khi bước sang năm 2027. Bất kỳ khoản lợi nhuận nào vượt mức cổ tức cơ bản dự kiến sẽ được phân phối thông qua cổ tức bổ sung theo chính sách hiện hành của công ty.

Công ty kỳ vọng hoạt động tái cơ cấu nợ gần đây và kỳ vọng của thị trường về lãi suất cơ sở sẽ hỗ trợ khả năng sinh lời. Ban lãnh đạo cũng dự báo chi phí tài trợ sẽ tương đối ổn định sau khi tái cơ cấu nợ CLO và cắt giảm hạn mức tín dụng dư thừa, mặc dù các hạn mức này vẫn chịu tác động từ sự thay đổi của lãi suất cơ sở thả nổi.

PSBD dự báo biến động lãi suất ở mức cao và sự không chắc chắn về địa chính trị sẽ tiếp tục gây áp lực lên hoạt động giao dịch trong quý 4. Ban lãnh đạo cho biết các quy trình giao dịch do các quỹ bảo trợ dẫn dắt đang mất nhiều thời gian hơn, mặc dù các quỹ bảo trợ cuối cùng vẫn cần thực hiện giao dịch và hoạt động sẽ cải thiện theo thời gian với tốc độ không đồng đều.

Việc phân bổ vốn sẽ tiếp tục cân bằng giữa các khoản đầu tư mới, giảm nợ và mua lại cổ phiếu. Ban lãnh đạo chỉ ra rằng tỷ lệ đòn bẩy có thể giảm thêm nhưng khẳng định không có kế hoạch tăng đòn bẩy đáng kể từ mức hiện tại chỉ để theo đuổi các cơ hội giải ngân mới.

Rủi ro và yếu tố theo dõi

• Lạm phát dai dẳng và khả năng tiếp tục tăng lãi suất có thể làm tăng chi phí tài trợ của bên vay, ngay cả khi lãi suất cơ sở cao hơn hỗ trợ lợi suất từ danh mục đầu tư lãi suất thả nổi của PSBD.
• Căng thẳng địa chính trị ở Trung Đông và Châu Âu, bao gồm giá dầu diesel tăng cao, tạo thêm sự không chắc chắn cho tăng trưởng kinh tế.
• Biên độ chênh lệch của các khoản vay hợp vốn diện rộng vẫn ở mức hẹp trong phần lớn quý 3, làm hạn chế tiềm năng lợi nhuận đã điều chỉnh theo rủi ro ở một số phân khúc của thị trường sơ cấp.
• Biến động thị trường tín dụng gia tăng vào cuối tháng 9 và tháng 10, điều này có thể gây áp lực lên định giá danh mục đầu tư trong ngắn hạn và sự ổn định của NAV.
• Việc phát hành nợ liên quan đến AI đang cạnh tranh nguồn vốn đầu tư, trong khi sự phản đối đối với việc cấp phép và xây dựng trung tâm dữ liệu có thể ảnh hưởng đến việc phát triển hạ tầng AI.
• Hoạt động M&A trầm lắng và thời gian giao dịch kéo dài có thể hạn chế các cơ hội giải ngân trong ngắn hạn.

Điểm nhấn phần Hỏi & Đáp với nhà phân tích

Tín dụng tư nhân so với khoản vay hợp vốn: Ban lãnh đạo cho rằng các cơ hội tín dụng tư nhân cải thiện một phần là do biên độ chênh lệch mở rộng khiêm tốn liên quan đến dòng vốn rút khỏi các BDC không niêm yết. Trong mảng cho vay hợp vốn diện rộng, PSBD hiện thấy nhiều cơ hội hấp dẫn hơn trên thị trường thứ cấp so với việc phát hành mới trên thị trường sơ cấp.

Khả năng chi trả cổ tức: Ban lãnh đạo cho biết biên độ tín dụng rộng hơn, đợt tăng lãi suất vào tháng 9 và các đợt tăng lãi suất bổ sung được phản ánh vào kỳ vọng của thị trường có thể hỗ trợ lợi suất danh mục đầu tư. Với tỷ lệ khả năng thanh toán lãi vay của danh mục đầu tư tiệm cận mức 2,4 lần, ban lãnh đạo tin rằng các bên vay có đệm dự phòng để hấp thụ các đợt tăng lãi suất tiếp theo và tiếp tục an tâm về khả năng chi trả cổ tức cơ bản.

Tốc độ quay vòng danh mục đầu tư cao hơn: Hoạt động tái cơ cấu nợ dẫn đến các khoản hoàn trả khi ban lãnh đạo nhận thấy biên độ chênh lệch không còn bù đắp tương xứng cho rủi ro của PSBD. Công ty cũng đã bán một phần đáng kể các khoản đầu tư tầng mezzanine CLO để giải phóng vốn cho các cơ hội mang lại biên độ chênh lệch và lợi nhuận điều chỉnh theo rủi ro hấp dẫn hơn.

Kỳ hạn ngắn hơn đối với các khoản đầu tư mới: Ban lãnh đạo cho biết một số khoản tái cơ cấu nợ chỉ gia hạn thêm từ hai đến ba năm thay vì các giao dịch trọn vẹn bảy năm. PSBD cũng đã mua các khoản vay thứ cấp có kỳ hạn ngắn hơn được chọn lọc với mức chiết khấu so với mệnh giá, nhằm tìm kiếm khả năng hoàn trả hoặc tái cơ cấu nợ theo mệnh giá trong thời gian ngắn hơn.

Sự ổn định của NAV: Ban lãnh đạo thừa nhận rằng tỷ trọng tiếp xúc của danh mục đầu tư với các khoản vay thanh khoản cao có thể tạo ra biến động định giá trong ngắn hạn. Tuy nhiên, họ coi sự sụt giảm của thị trường là cơ hội để mua các khoản tín dụng chất lượng cao dưới mệnh giá, điều này có thể hỗ trợ sự tăng trưởng của danh mục đầu tư trong dài hạn.

Toàn văn biên bản cuộc họp kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

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.

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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.