HOUSTON, March 13, 2026 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fiscal quarter and year ended December 31, 2025.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated "We are pleased to report solid operating results in the fourth quarter in which we generated $0.34 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $42 million of investments and received $18 million of repayments, bringing the total portfolio to $400 million at fair value. On January 16, 2026, we declared our 2026 first quarter monthly dividend of $0.35 per share in the aggregate."
FINANCIAL
HIGHLIGHTS
----------------
($ in millions,
except data
relating to per
share amounts
and shares
outstanding)
Three Months Ended Years Ended
---------------------------------------- ----------------------------------------
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Amount Per Share Amount Per Share Amount Per Share Amount Per Share
------- ---------- -------- --------- ------- ---------- -------- ---------
Net investment
income $4.17 $0.34 $3.49 $0.37 $15.10 $1.33 $15.57 $1.80
Net realized gain
on investments 1.42 0.11 0.01 -- 1.52 0.14 0.03 --
Net unrealized
(depreciation)
appreciation
included in
earnings (1.67) (0.12) 1.39 0.14 0.40 0.04 0.88 0.11
Provision for
taxes on net
unrealized
appreciation on
investments (0.07) (0.02) (0.08) (0.01) (0.08) (0.01) (0.09) (0.01)
Net increase in
net assets
resulting from
operations $3.85 $0.31 $4.81 $0.50 $16.94 $1.50 $16.39 $1.90
Distributions (4.47) (0.36) (4.53) (0.47) (16.51) (1.46) (16.96) (1.96)
Other weighted
average share
adjustments(1) -- -- -- (0.01) -- 0.01 -- 0.01
Net asset value $199.63 $15.21 $162.39 $15.16 $199.63 $15.21 $162.39 $15.16
Weighted average
shares
outstanding 12,424,324 9,561,014 11,316,555 8,643,493
(1) Includes the impact of different share amounts as a result of calculating certain per share data
based on weighted average shares outstanding during the period and certain per share data based on
shares outstanding as of the period end.
PORTFOLIO ACTIVITY
-----------------------------------
($ in millions)
As of As of
December 31, 2025 December 31, 2024
----------------- -----------------
Investments at fair value $400.1 $300.7
Total assets $404.7 $304.8
Net assets $199.6 $162.4
Shares outstanding 13,121,397 10,715,095
Net asset value per share $15.21 $15.16
Three Months Ended
------------------------------------
December 31, 2025 December 31, 2024
----------------- -----------------
New investments $41.8 $52.8
Repayments of investments (18.1) (10.7)
----------------- -----------------
Net activity $23.7 $42.1
As of As of
December 31, 2025 December 31, 2024
----------------- -----------------
Number of portfolio company
investments 74 59
Number of debt investments 71 55
Weight average yield of debt and
other income producing
investments(2)
Cash 9.3 % 10.2 %
Payment-in-kind ("PIK") 0.1 % 0.2 %
Fee amortization 0.4 % 0.4 %
----------------- -----------------
Total 9.8 % 10.8 %
Weighted average yield on total
investments(3)
Cash 9.0 % 9.8 %
PIK 0.1 % 0.2 %
Fee amortization 0.3 % 0.3 %
----------------- -----------------
Total 9.4 % 10.3 %
(2) The dollar-weighted average annualized effective yield is computed
using the effective interest rate for the Company's debt investments and
other income producing investments, including cash and PIK interest, as
well as the accretion of deferred fees. The individual investment yields
are then weighted by the respective cost of the investments (as of the
date presented) in calculating the weighted average effective yield of the
portfolio. The dollar-weighted average annualized yield on the Company's
investments for a given period will generally be higher than what
investors of our common stock would realize in a return over the same
period because the dollar-weighted average annualized yield does not
reflect the Company's expense or any sales load that may be paid by
investors. (3) The dollar weighted average yield on total investments
takes the same yields as calculated in the footnote above, but weights
such yields to determine the weighted average effective yield as a
percentage of the Company's total investments, including non-income
producing equity positions and debt investments on non-accrual status.
Results of Operations
Investment income for the three months ended December 31, 2025 and 2024 totaled $9.8 million and $7.8 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended December 31, 2025 and 2024 totaled $6.2 million and $5.0 million, respectively. For the same periods, base management fees totaled $1.4 million and $1.0 million, income incentive fees totaled $0.7 million and $0.6 million, respectively; capital gains incentive (reversals) fees of ($0.0) million and 0.1 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.5 million and $2.6 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.2 million, respectively and other expenses totaled $0.4 million and $0.5 million, respectively. For the three months ended December 31, 2025 and 2024, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.4 million and $0.3 million of management fees, respectively; $0.2 million of income incentive fees for both periods (waived as our shares were not listed on a national exchange), and less than $0.1 million and $0.2 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.6 million and $4.3 million, respectively.
For the three months ended December 31, 2025 and 2024, net investment income was $4.2 million and $3.5 million, or $0.34 and $0.37 per common share based on weighted average common shares outstanding of 12,424,324 and 9,561,014, respectively.
The Company's investment portfolio had a net change in unrealized appreciation of ($1.7) million and $1.4 million for the three months ended December 31, 2025 and 2024, respectively.
For the three months ended December 31, 2025 and 2024, net increase in net assets resulting from operations totaled $3.9 million and $4.8 million, or $0.31 and $0.50 per common share, based on weighted average common shares outstanding of 12,424,324 and 9,561,014, respectively.
Liquidity and Capital Resources
On September 30, 2022, the Company entered into a senior secured revolving credit agreement with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders (the "Credit Facility"). The Credit Facility, as amended, provides for borrowings up to a maximum of $300.0 million on a committed basis. As of December 31, 2025 and December 31, 2024, the Company had $128.6 million and $90.5 million in outstanding borrowings under the Credit Facility, respectively.
On August 1, 2024, the Company entered into a Loan Financing and Servicing Agreement (the "Loan Agreement") by and among Stellus Private Credit BDC SPV LLC ("PBDC SPV"), as borrower, the Company, as equityholder and servicer, Deutsche Bank AG, New York Branch, as facility agent, Citibank, N.A., as collateral agent and collateral custodian, Alter Domus (US) LLC, as collateral administrator, and the lenders that are party thereto from time to time (the "SPV Facility"). The SPV Facility, as amended, provides for $75.0 million of initial commitments with an accordion feature that allows for an additional $25.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As of December 31, 2025 and December 31, 2024, the Company had $75.0 million and $50.0 million in outstanding borrowings under the SPV Facility, respectively.
For the three months ended December 31, 2025, the Company sold 412,586 common shares of beneficial interest at a weighted-average price of $15.26 per share for aggregate net proceeds of $6.3 million, which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors during the three months ended December 31, 2025. Additionally, for the three months ended December 31, 2025, the Company called $7.5 million pursuant to capital draw down subscription agreements between the Company and its shareholders. The transaction resulted in the issuance of 491,481 common shares of beneficial interest at a price of $15.26 per share. Lastly, the Company purchased 176,879 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended December 31, 2025 at a price equal to $15.25 per Share for an aggregate purchase price of approximately $2.7 million.
Distributions
During the three months ended December 31, 2025 and 2024, the Company declared aggregate distributions of $0.36 per share and $0.50, respectively ($4.5 million in the aggregate for both periods). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $0.3 million of the dividends declared in 2025 are expected to be characterized as long-term capital gains. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies for the three months ended December 31, 2025:
Activity Investment Instrument
Type Date Company Name Company Description Amount Type
----------- --------- ---------------- --------------------- ----------- -----------
Provider of patient
safety, clinical
risk mitigation,
and healthcare Senior
Add-On October 1, The Hardenbergh compliance Secured --
Investment 2025 Group, Inc.* solutions $ 1,241,645 First Lien
New October Fidus Systems Provider of $ 3,023,836 Senior
Investment 17, 2025 Inc. outsourced Secured --
electronic product First Lien
development and
engineering
services
$ 2,015,890 Delayed
Draw Term
Loan
Commitment
$ 1,446,825 Revolver
Commitment
$ 216,218 Equity
Add-On October Recharged Opco, Provider of $ 775,904 Priority
Investment 22, 2025 LLC* residential Revolver
electrical Commitment
services
Add-On October Channel Partners Provider of $ 277,083 Revolver
Investment 27, 2025 Intermediateco, outsourced Commitment
LLC* marketing
services
Add-On November Mobotrex Distributor and $ 1,435,403 Senior
Investment 6, 2025 Acquisition, manufacturer of Secured --
LLC* intelligent First Lien
traffic solution
equipment
$ 1,668,789 Delayed
Draw Term
Loan
Commitment
$ 461,751 Revolver
Commitment
Add-On December BC Partners Provider of $ 11,916 Equity
Investment 3, 2025 Glengarry business-to-busine
Co-Investment ss account based
LP* marketing
services
New December Pure Upper Holdco Environmental and $ 4,472,417 Senior
Investment 3, 2025 LLC ambulatory Secured --
cleaning services First Lien
for healthcare
facilities
$ 1,647,733 Delayed
Draw Term
Loan
Commitment
$ 1,859,584 Revolver
Commitment
$ 178,183 Equity
Add-On December SP CS Holdings Provider of product $ 59,038 Equity
Investment 15, 2025 LLC* testing and
consumer insights
Add-On December Recharged Opco, Provider of $ 274,800 Priority
Investment 15, 2025 LLC* residential Revolver
electrical Commitment
services
Add-On December Carolina Topco National commercial $ 67,784 Equity
Investment 17, 2025 Holdings, LP* surface care and
restoration
company
New December Pilot Power Group Managed energy $ 9,000,000 Senior
Investment 18, 2025 Acquisition, procurement and Secured --
Inc. energy advisory First Lien
services
$ 275,151 Equity
Add-On December Curion Holdings, Provider of product $ 2,053,573 Senior
Investment 19, 2025 LLC testing and Secured --
consumer insights First Lien
Add-On December Solid Surface National commercial $ 1,000,000 Senior
Investment 22, 2025 Holdco, LLC* surface care and Secured --
restoration First Lien
company
$ 509,581 Revolver
Commitment
New December Valor Buyco Provider of $ 2,918,359 Senior
Investment 23, 2025 dispatched road Secured --
services First Lien
$ 2,646,753 Delayed
Draw Term
Loan
Commitment
$ 1,497,245 Revolver
Commitment
$ 490,441 Equity
Add-On December FairWave Specialty coffee $ 49,707 Senior
Investment 31, 2025 Holdings, LLC* platform Secured --
First Lien
$ 252,134 Delayed
Draw Term
Loan
Commitment
* Existing portfolio company
The Company realized the following portfolio companies for the three months ended December 31, 2025:
Activity Company Company Proceeds Realized Instrument
Type Date Name Description Received Gain Type
------------ --------- ---------- ------------- ---------- ---------- -----------
End-to-end
informatio
n
Heartland technologi
Business es Senior
Full October 1, Systems, solutions Secured --
Repayment 2025 LLC provider $3,122,393 $ -- First Lien
Delayed
Draw Term
$3,241,539 $ -- Loan
Full Realization $ 452,671 $ 360,253 Equity
Provider of
design,
engineerin
g,
installati
on, and
maintenanc
e services
for
building
Full December EHI Buyer, management
Realization 8, 2025 Inc. systems $1,216,042 $1,039,429 Equity
Events Subsequent to December 31, 2025
The Company's management has evaluated subsequent events through March 13, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to December 31, 2025:
Activity Type Date Company Name Company Description Investment Amount Instrument Type
-------------- --------- ------------- -------------------- ------------------- ---------------
Provider of
content,
information,
tech-enabled
services, and
hosts
Bart & competitions for
Add-On January 2, Associates, the U.S. equine Senior Secured
Investment 2026 LLC* industry $ 1,000,000 -- First Lien
$ 32,595 Equity
New Investment January 9, Silver Parent, Senior-care $ 4,611,400 Senior Secured
2026 LLC focused placement -- First Lien
platform
$ 1,006,422 Revolver
Commitment
$ 387,436 Equity
Add-On January GRC Java Specialty coffee $ 17,332 Equity
Investment 15, 2026 Holdings, platform
LLC*
Add-On January evolv Holdco, Digital $ 4,530 Equity
Investment 21, 2026 LLC* transformation
consulting firm
Add-On February BI Investors, Provider of $ 4,467 Equity
Investment 2, 2026 LLC* center-based
applied
behavioral
analysis therapy
services
Add-On February Green Topco Cyber-security $ 11,896 Equity
Investment 3, 2026 Holdings, focused
LLC* value-added
reseller and
associated
service provider
Add-On February SP MWM Holdco Provider of test $ 113,721 Equity
Investment 6, 2026 LLC* and measurement
services and
equipment
Add-On February Michelli, LLC* Provider of test $ 4,000,000 Delayed Draw
Investment 9, 2026 and measurement Term Loan
services and Commitment
equipment
New Investment March 3, Precision Strategic $ 4,524,350 Senior Secured
2026 Strategies, communications -- First Lien
LLC and marketing
agency
$ 1,177,716 Revolver
Commitment
New Investment March 6, Synergy Health Provider of $ 7,274,448 Senior Secured
2026 Partners orthopedic and -- First Lien
musculoskeletal
care
$ 1,866,885 Delayed Draw
Term Loan
Commitment
$ 962,920 Revolver
Commitment
$ 300,126 Equity
* Existing portfolio company
The Company realized the following portfolio companies subsequent to December 31, 2025:
Activity Company Company Proceeds Instrument
Type Date Name Description Received Type
---------- --------- ----------- --------------- ---------- -----------
Manufacturer
and
distributor
of high-
performance
advanced
Luxium materials Senior
Full January Solutions, and Secured --
Repayment 30, 2026 LLC assemblies $3,315,849 First Lien
$ 480,795 Delayed
Draw Term
Loan
Full February Arctiq, Inc. Cyber-securi $9,780,648 Senior
Repayment 3, 2026 ty focused Secured --
value-added First Lien
reseller and
associated
service
provider
$1,601,662 Delayed
Draw Term
Loan
Credit Facilities
As of March 13, 2026, the outstanding balances under the Credit Facility and SPV Facility were $137.2 million and $75.0 million, respectively.
Sale of Unregistered Securities
Since December 31, 2025, the Company sold 185,211 common shares of beneficial interest at a price of $15.21 per share for aggregate proceeds of $2.8 million, which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors.
Share Repurchases
Since December 31, 2025, 357,092 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer. The Company purchased all common shares of beneficial interest validly tendered and not withdrawn at a price equal to $15.21 per share for an aggregate purchase price of $5.4 million.
Distributions Declared
On January 16, 2026 the Board declared a regular monthly dividend for each of January, February and March 2026 as follows:
Record Payment Amount per
Declared Date Date Share
---------- ---------- ---------- ------------
1/16/2026 1/20/2026 1/30/2026 $ 0.1167
1/16/2026 2/2/2026 2/27/2026 $ 0.1167
1/16/2026 3/2/2026 3/31/2026 $ 0.1167
Acquisition of Stellus Capital Management
On February 5, 2026, the Company announced that Stellus Capital Management, the majority owner of the Advisor, entered into a definitive agreement with P10 Intermediate Holdings, LLC, an affiliate of Ridgepost Capital, Inc. (formerly known as P10, Inc.) ("Ridgepost"), pursuant to which Ridgepost will acquire all of the outstanding equity interests in Stellus Capital Management (the "Transaction").
Pursuant to the terms of the Transaction, Stellus Capital Management and the Advisor will continue to be managed by their current partners, who will retain control of Stellus Capital Management and the Advisor's day-to-day operations, including investment decisions and investment committee processes. The Advisor will continue to serve as the external investment adviser to the Company. Consummation of the Transaction will result in a change of control of the Advisor, and this will result in an assignment of the current investment advisory agreement between the Company and the Advisor under the 1940 Act. As a result, the current investment advisory agreement will terminate upon consummation of the Transaction. Our Board and shareholders will therefore be asked to approve a new investment advisory agreement with the Advisor (the "New Advisory Agreement"), the terms of which are expected to remain the same as the current investment advisory agreement, other than the initial term of the investment advisory agreement. Closing of the Transaction is expected to occur in the middle of 2026 and is subject to customary conditions for a transaction of this nature. If approved, the New Advisory Agreement will take effect following the closing of the Transaction.
About Stellus Private Credit BDC
The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Private BDC Advisor, LLC.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Private Credit BDC
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2025 December 31, 2024
------------------- -------------------
ASSETS
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of
$396,791,982 and $297,791,269,
respectively) $ 400,131,924 $ 300,732,065
Cash and cash equivalents 2,586,895 2,144,116
Other receivable -- 4,340
Interest receivable 1,765,379 1,367,849
Expense reimbursement
receivable from the Advisor
(Note 2) 2,580 161,473
Deferred offering costs 60,993 127,983
Related party receivable -- 2,004
Prepaid expenses 13,632 164,350
Receivable for sales and
repayments of investments 165,651 86,896
--------------- ---------------
Total Assets $ 404,727,054 $ 304,791,076
--------------- ---------------
LIABILITIES
Credit Facilities payable $ 200,281,671 $ 138,692,860
Unearned revenue 1,207,706 921,629
Management fees payable 908,154 648,149
Income incentive fee payable 544,620 452,186
Capital gains incentive fee
payable 527,603 306,229
Interest payable 865,205 613,821
Administrative services payable 189,715 109,027
Income tax payable 126,348 51,427
Deferred tax liability 338,611 259,455
Other accrued expenses and
liabilities 110,706 348,413
--------------- ---------------
Total Liabilities $ 205,100,339 $ 142,403,196
--------------- ---------------
Commitments and contingencies
(Note 7)
--------------- ---------------
Net Assets $ 199,626,715 $ 162,387,880
=============== ===============
NET ASSETS
Common shares of beneficial
interest, par value $0.01 per
share (unlimited shares
authorized; 13,121,397 and
10,715,095 issued and
outstanding, respectively) $ 131,214 $ 107,151
Paid-in capital 195,935,870 159,483,435
Total distributable earnings 3,559,631 2,797,294
--------------- ---------------
Net Assets $ 199,626,715 $ 162,387,880
--------------- ---------------
Total Liabilities and Net
Assets $ 404,727,054 $ 304,791,076
--------------- ---------------
Net Asset Value Per Share $ 15.21 $ 15.16
=============== ===============
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended
-------------------------------------------------------------
December 31, 2025 December 31, 2024 December 31, 2023
------------------- ------------------- -------------------
INVESTMENT INCOME
Interest income $ 35,162,306 $ 28,560,141 $ 22,760,669
Other income 799,084 478,544 601,776
--------------- --------------- --- --------------
Total Investment
Income $ 35,961,390 $ 29,038,685 $ 23,362,445
--------------- --------------- --- --------------
OPERATING
EXPENSES
Management fees $ 4,878,073 $ 3,469,835 $ 2,833,601
Income incentive
fees 2,553,477 2,602,793 2,097,153
Capital gains
incentive fee 221,374 44,545 261,684
Professional fees 686,503 747,853 670,800
Organization
costs -- -- 1,000
Amortization of
deferred
offering costs 224,668 225,050 165,937
Administrative
services
expenses 728,246 523,823 417,573
Trustees' fees 160,000 160,000 160,000
Insurance expense 86,318 81,685 81,438
Valuation fees 93,513 64,498 40,324
Interest expense
and other fees 13,448,925 9,505,536 8,225,528
Income tax
expense 98,295 32,183 44,925
Other general and
administrative
expenses 292,033 262,575 142,294
--------------- --------------- --- --------------
Total Operating
Expenses $ 23,471,425 $ 17,720,376 $ 15,142,257
--------------- --------------- --- --------------
Expenses
reimbursed/fees
waived by
Advisor (Note
2) $ (2,609,520) $ (4,253,904) $ (4,101,044)
--------------- --------------- --- --------------
Net Operating
Expenses $ 20,861,905 $ 13,466,472 $ 11,041,213
--------------- --------------- --- --------------
Net Investment
Income $ 15,099,485 $ 15,572,213 $ 12,321,232
=============== =============== === ==============
Net realized gain
on
non-controlled,
non-affiliated
investments $ 1,467,178 $ -- $ 841,075
Net realized gain
on foreign
currency
translation 52,488 30,648 24,343
Provision for
taxes on
realized gain on
investments -- -- (142,988)
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments 378,831 906,234 2,566,523
Net change in
unrealized
appreciation
(depreciation)
on foreign
currency
translations 20,315 (25,757) 11,719
Provision for
taxes on net
unrealized gain
on investments (79,156) (91,591) (167,865)
--------------- --------------- --- --------------
Net Increase in
Net Assets
Resulting from
Operations $ 16,939,141 $ 16,391,747 $ 15,454,039
=============== =============== === ==============
Net Investment
Income Per Share
-- basic and
diluted $ 1.33 $ 1.80 $ 1.96
=============== =============== === ==============
Net Increase in
Net Assets
Resulting from
Operations Per
Share -- basic
and diluted $ 1.50 $ 1.90 $ 2.46
=============== =============== === ==============
Weighted Average
Common Shares of
Beneficial
Interest
Outstanding --
basic and
diluted 11,316,555 8,643,493 6,273,882
--------------- --------------- --- --------------
Distributions Per
Share -- basic
and diluted $ 1.46 $ 1.96 $ 1.88
=============== =============== === ==============
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Common Shares of
Beneficial Interest Total
---------------------
Number of Par Paid-in distributable
shares value capital (loss) gain Net Assets
Balances at
December 31, 2022 5,483,433 $ 54,834 $ 80,950,845 $ (742,722) $ 80,262,957
=========== ======= =========== ============ ============
Net investment
income -- -- -- 12,321,232 12,321,232
Net realized gain
on non-controlled,
non-affiliated
investments -- -- -- 841,075 841,075
Net realized gain
on foreign
currency
translation -- -- -- 24,343 24,343
Provision for taxes
on realized gain
on investments -- -- -- (142,988) (142,988)
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments -- -- -- 2,566,523 2,566,523
Net change in
unrealized
appreciation on
foreign currency
translations -- -- -- 11,719 11,719
Provision for taxes
on net unrealized
gain on
investments -- -- -- (167,865) (167,865)
Return of capital
and other tax
related
adjustments -- -- (197,724) 197,724 --
Distributions from
net investment
income -- -- -- (11,768,088) (11,768,088)
Issuance of common
shares of
beneficial
interest 1,618,703 16,187 24,056,927 -- 24,073,114
----------- ------- ----------- ------------ ------------
Balances at
December 31, 2023 7,102,136 $ 71,021 $104,810,048 $ 3,140,953 $ 108,022,022
=========== ======= =========== ============ ============
Net investment
income -- -- -- 15,572,213 15,572,213
Net realized gain
on foreign
currency
translation -- -- -- 30,648 30,648
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments -- -- -- 906,234 906,234
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (25,757) (25,757)
Provision for taxes
on net unrealized
gain on
investments -- -- -- (91,591) (91,591)
Return of capital
and other tax
related
adjustments -- -- (221,350) 221,350 --
Distributions from
net investment
income -- -- -- (16,701,939) (16,701,939)
Distributions from
net realized
capital gains -- -- -- (254,817) (254,817)
Issuance of common
shares of
beneficial
interest 4,119,031 41,191 62,556,970 -- 62,598,161
Redemption of
common shares of
beneficial
interest (506,072) (5,061) (7,662,233) -- (7,667,294)
----------- ------- ----------- ------------ ------------
Balances at
December 31, 2024 10,715,095 $107,151 $159,483,435 $ 2,797,294 $ 162,387,880
=========== ======= =========== ============ ============
Net investment
income -- -- -- 15,099,485 15,099,485
Net realized gain
on non-controlled,
non-affiliated
investments -- -- -- 1,467,178 1,467,178
Net realized gain
on foreign
currency
translation -- -- -- 52,488 52,488
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments -- -- -- 378,831 378,831
Net change in
unrealized
appreciation on
foreign currency
translations -- -- -- 20,315 20,315
Provision for taxes
on net unrealized
gain on
investments -- -- -- (79,156) (79,156)
Return of capital
and other tax
related
adjustments -- -- (337,006) 337,006 --
Distributions from
net investment
income -- -- -- (16,240,877) (16,240,877)
Distributions from
net realized
capital gains -- -- -- (272,933) (272,933)
Issuance of common
shares of
beneficial
interest 2,747,060 27,471 41,986,208 -- 42,013,679
Redemption of
common shares of
beneficial
interest (340,758) (3,408) (5,196,767) -- (5,200,175)
----------- ------- ----------- ------------ ------------
Balances at
December 31, 2025 13,121,397 $131,214 $195,935,870 $ 3,559,631 $ 199,626,715
=========== ======= =========== ============ ============
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended
--------------------------------------------------------------
December 31, 2025 December 31, 2024 December 31, 2023
------------------- ------------------- -------------------
Cash Flows from
Operating
Activities
Net increase in
net assets
resulting from
operations $ 16,939,141 $ 16,391,747 $ 15,454,039
Adjustments to
reconcile net
increase in net
assets from
operations to
net cash used
in operating
activities:
Purchases of
investments (135,656,548) (119,805,183) (89,322,601)
Proceeds from
sales and
repayments of
investments 39,379,107 30,250,267 42,260,585
Net change in
unrealized
appreciation on
investments (378,831) (906,234) (2,566,523)
Net change in
unrealized
(appreciation)
depreciation
foreign
currency
translations (20,315) 25,757 (11,719)
Increase in
investments due
to PIK (313,010) (1,059,816) (129,990)
Amortization of
premium and
accretion of
discount, net (1,021,839) (678,569) (502,109)
Deferred tax
provision 79,156 91,590 167,865
Amortization of
loan structure
fees 682,848 306,387 586,127
Amortization of
deferred
offering costs 224,668 225,050 165,937
Net realized
gain on
investments (1,467,178) -- (841,075)
Changes in
other assets
and
liabilities
(Increase)
decrease in
interest
receivable (397,530) 127,732 (465,307)
Decrease
(increase) in
other
receivable 4,340 (4,340) --
Decrease
(increase) in
related party
receivable 2,004 160,451 (152,835)
Decrease
(increase) in
expense
reimbursements
receivable from
the Advisor 158,893 (34,934) 39,099
Decrease
(increase) in
prepaid
expenses 150,718 (37,331) 5,985
Increase
(decrease) in
administrative
services
payable 80,688 (15,931) 58,894
Increase
(decrease) in
interest
payable 251,384 246,728 (196,148)
Increase in
income
management fees
payable 260,005 648,149 --
Increase in
income
incentive fees
payable 92,434 12,332 111,658
Increase in
capital gains
incentive fees
payable 221,374 44,545 261,684
Increase in
unearned
revenue 286,077 24,091 357,904
Increase
(decrease) in
income tax
payable 74,921 (131,062) 175,018
(Decrease)
increase in
other accrued
expenses and
liabilities (237,707) 171,164 57,975
--------------- --------------- ---------------
Net Cash Used in
Operating
Activities $ (80,605,200) $ (73,947,410) $ (34,485,537)
--------------- --------------- ---------------
Cash Flows from
Financing
Activities
Proceeds from
issuance of
common shares
of beneficial
interest $ 42,013,679 $ 62,598,161 $ 24,073,114
Offering costs
paid for common
shares of
beneficial
interest
issued (157,678) (280,158) (184,418)
Purchase of
common shares
of beneficial
interest in
tender offer (5,200,175) (7,667,294) --
Stockholder
distributions
paid (16,513,810) (20,507,824) (10,026,553)
Borrowings under
Credit
Facilities 163,200,000 184,300,000 169,750,000
Repayments of
Credit
Facilities (100,000,000) (141,850,000) (152,365,000)
Financing costs
paid on Credit
Facilities (2,294,037) (1,095,044) (387,744)
Short-term loan
borrowings -- -- 4,500,000
Short-term loan
repayments -- -- (15,750,000)
--------------- --------------- ---------------
Net Cash Provided
by Financing
Activities $ 81,047,979 $ 75,497,841 $ 19,609,399
--------------- --------------- ---------------
Net Increase
(Decrease) in
Cash and Cash
Equivalents $ 442,779 $ 1,550,431 $ (14,876,138)
--------------- --------------- ---------------
Cash and Cash
Equivalents
Balance at
Beginning of
Period 2,144,116 593,685 15,469,823
--------------- --------------- ---------------
Cash and Cash
Equivalents
Balance at End
of Period $ 2,586,895 $ 2,144,116 $ 593,685
=============== =============== ===============
Supplemental and
Non-Cash
Activities
Cash paid for
interest
expense $ 12,514,693 $ 7,835,549 $ 1,270,834
Income and
excise tax
paid 23,374 163,245 12,895
Value of common
shares of
beneficial
interest issued
pursuant to
Dividend
Reinvestment
Plan 1,329,809 623,113 43,894
View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-private-credit-bdc-reports-results-for-its-fourth-fiscal-quarter-and-year-ended-december-31-2025-302713753.html
SOURCE Stellus Private Credit BDC
(END) Dow Jones Newswires
March 13, 2026 18:13 ET (22:13 GMT)
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