HOUSTON, Aug. 12, 2026 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fiscal quarter June 30, 2026.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated, "We are pleased to report solid operating results in the second quartert in which we generated $0.28 per share of net investment income and increased net asset value. During the quarter, we funded $37 million of investments and received $26 million of repayments, bringing the total portfolio to $420 million at fair value. On July 16, 2026, we declared our 2026 third quarter monthly dividend of $0.31 per share in the aggregate."
FINANCIAL HIGHLIGHTS
-------------------------------
($ in millions, except data
relating to per share amounts
and shares outstanding)
Three Months Ended
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June 30, 2026 June 30, 2025
Amount Per Share Amount Per Share
------- ---------- ------- ----------
Net investment income $3.70 $0.28 $3.65 $0.33
Net realized gain on investments (3.79) (0.29) 0.07 0.01
Net unrealized appreciation
included in earnings 6.25 0.47 1.04 0.09
Provision for taxes on net
unrealized appreciation on
investments (0.23) (0.01) (0.02) --
Net increase in net assets
resulting from operations $5.93 $0.45 $4.74 $0.43
Distributions (4.48) (0.34) (3.93) (0.36)
Net asset value $209.14 $15.25 $170.17 $15.29
Weighted average shares
outstanding 13,187,428 10,935,215
PORTFOLIO ACTIVITY
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($ in millions)
As of As of
June 30, 2026 December 31, 2025
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Investments at fair value $419.5 $400.1
Total assets $427.5 $404.7
Net assets $209.1 $199.6
Shares outstanding 13,716,206 13,121,397
Net asset value per share $15.25 $15.21
Three Months Ended
--------------------------------
June 30, 2026 June 30, 2025
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New investments $36.7 $14.4
Repayments of investments (25.7) (10.2)
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Net activity $11.0 $4.2
As of As of
June 30, 2026 December 31, 2025
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Number of portfolio company investments 77 74
Number of debt investments 72 71
Weight average yield of debt and other
income producing investments(1)
Cash 8.6 % 9.3 %
Payment-in-kind ("PIK") 0.5 % 0.1 %
Fee amortization 0.4 % 0.4 %
------------- -----------------
Total 9.5 % 9.8 %
Weighted average yield on total
investments(2)
Cash 8.2 % 9.0 %
PIK 0.5 % 0.1 %
Fee amortization 0.3 % 0.3 %
------------- -----------------
Total 9.0 % 9.4 %
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(1) 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.
(2) 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 June 30, 2026 and 2025 totaled $9.7 million and $8.7 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $6.7 million and $5.8 million, respectively. For the same periods, base management fees totaled $1.5 million and $1.2 million, income incentive fees totaled $0.6 million and $0.7 million, respectively; capital gains incentive (reversals) fees of $0.2 million and $0.1 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.8 million and $3.2 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.3 million and $0.2 million, respectively and other expenses totaled $0.3 million and $0.4 million, respectively. For the three months ended June 30, 2026 and 2025, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.5 million and $0.4 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 of expenses pursuant to expense support and conditional reimbursements from the Advisor for both periods, for net operating expenses of $6.0 million and $5.1 million, respectively.
For the three months ended June 30, 2026 and 2025, net investment income was $3.7 million and $3.6 million, or $0.28 and $0.33 per common share based on weighted average common shares outstanding of 13,187,428 and 10,935,215, respectively.
The Company's investment portfolio had a net change in unrealized (depreciation) appreciation of $6.3 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively.
For the three months ended June 30, 2026 and 2025, net increase in net assets resulting from operations totaled $5.9 million and $4.7 million, or $0.45 and $0.43 per common share, based on weighted average common shares outstanding of 13,187,428 and 10,935,215, 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 June 30, 2026 and December 31, 2025, the Company had $141.0 million and $128.6 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 both June 30, 2026 and December 31, 2025, the Company had $75.0 million in outstanding borrowings under the SPV Facility.
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