Stellus Private Credit BDC Reports Results for its Second Fiscal Quarter Ended June 30, 2025
PR Newswire
HOUSTON, Aug. 8, 2025
HOUSTON, Aug. 8, 2025 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its second fiscal quarter ended June 30, 2025.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated, "We are pleased to report solid operating results in the second quarter in which we generated $0.33 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $14 million of investments and received $10 million of repayments, bringing the total portfolio to $340 million at fair value. On July 2, 2025, we declared our 2025 third quarter monthly dividend of $0.38 per share in the aggregate, which represents an annualized dividend yield of approximately 10%."
FINANCIAL HIGHLIGHTS | ||||||
($ in millions, except data relating to per share amounts and shares outstanding) | ||||||
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Three Months Ended | ||||||
June 30, 2025 | June 30, 2024 | |||||
Amount | Per Share | Amount | Per Share | |||
Net investment income | $3.65 | $0.33 | $3.86 | $0.46 | ||
Net realized gain on investments | 0.07 | 0.01 | — | — | ||
Net unrealized appreciation included in earnings | 1.04 | 0.09 | (0.41) | (0.05) | ||
Benefit (provision) for taxes on net unrealized depreciation | (0.02) | — | (0.04) | — | ||
Net increase in net assets resulting from operations | $4.74 | $0.43 | $3.41 | $0.41 | ||
Distributions | (3.93) | (0.36) | (4.08) | (0.49) | ||
Other weighted average share adjustments(1) | — | — | — | 0.01 | ||
Net asset value | $170.17 | $15.29 | $142.60 | $15.19 | ||
Weighted average shares outstanding | 10,935,215 | 8,310,559 | ||||
(1) | Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end. | ||||
PORTFOLIO ACTIVITY | ||||
($ in millions) | ||||
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As of | As of | |||
June 30, 2025 | December 31, 2024 | |||
Investments at fair value | $340.4 | $300.7 | ||
Total assets | $345.8 | $304.8 | ||
Net assets | $170.2 | $162.4 | ||
Shares outstanding | 11,127,069 | 10,715,095 | ||
Net asset value per share | $15.29 | $15.16 | ||
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Three Months Ended | ||||
June 30, 2025 | June 30, 2024 | |||
New investments | $14.4 | $41.6 | ||
Repayments of investments | (10.2) | (3.7) | ||
Net activity | $4.2 | $37.9 | ||
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As of | As of | |||
June 30, 2025 | December 31, 2024 | |||
Number of portfolio company investments | 67 | 59 | ||
Number of debt investments | 63 | 55 | ||
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Weight average yield of debt and other income producing | ||||
Cash | 10.0 % | 10.2 % | ||
Payment-in-kind ("PIK") | 0.2 % | 0.2 % | ||
Fee amortization | 0.4 % | 0.4 % | ||
Total | 10.6 % | 10.8 % | ||
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Weighted average yield on total investments(3) | ||||
Cash | 9.6 % | 9.8 % | ||
PIK | 0.2 % | 0.2 % | ||
Fee amortization | 0.3 % | 0.3 % | ||
Total | 10.1 % | 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 them 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, 2025 and 2024 totaled $8.7 million and $6.9 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended June 30, 2025 and 2024 totaled $5.8 million and $4.2 million, respectively. For the same periods, base management fees totaled $1.2 million and $0.8 million, income incentive fees totaled $0.7 million and $0.7 million, respectively; capital gains incentive fees (reversals) of $0.1 million and less than ($0.01) million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.2 million and $2.3 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.1 million, respectively and other expenses totaled $0.4 million and $0.3 million, respectively. For the three months ended June 30, 2025 and 2024, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.4 million and $0.8 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 $0.1 million and $0.1 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.1 million and $3.1 million, respectively.
For the three months ended June 30, 2025 and 2024, net investment income was $3.6 million and $3.9 million, or $0.33 and $0.46 per common share based on weighted average common shares outstanding of 10,935,215 and 8,310,559, respectively.
The Company's investment portfolio had a net change in unrealized appreciation of $1.0 million and ($0.4) million for the three months ended June 30, 2025 and 2024, respectively.
For the three months ended June 30, 2025 and 2024, net increase in net assets resulting from operations totaled $4.7 million and $3.4 million, or $0.43 and $0.41 per common share, based on weighted average common shares outstanding of 10,935,215 and 8,310,559, 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" and together with the Commitment Facility and SPV Facility, the "Credit Facilities"). The Credit Facility, as amended, provides for borrowings up to a maximum of $195.0 million on a committed basis with an accordion feature that allows the Company to increase the aggregate commitments up to $200.0 million, subject to new or existing lenders agreeing to participate in the increase and other customary conditions. As of June 30, 2025 and December 31, 2024, the Company had $123.1 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") for the SPV Facility 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 provides for $50.0 million of initial commitments with an accordion feature that allows for an additional $50.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As of both June 30, 2025 and December 31, 2024, the Company had $50.0 million in outstanding borrowings under the SPV Facility.
During the three months ended June 30, 2025, the Company sold 254,910 common shares of beneficial interest at a weighted-average price of $15.22 per share for aggregate proceeds of $3.9 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 June 30, 2025. Additionally, 22,609 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended June 30, 2025. On April 3, 2025, the Company purchased approximately 22,609 shares of beneficial interest validly tendered and not withdrawn prior to the expiration of the applicable tender offer, at a price equal to $15.16 per Share for an aggregate purchase price of approximately $0.3 million.
Distributions
During the three months ended June 30, 2025 and 2024, the Company declared aggregate distributions of $0.36 per share and $0.50, respectively (million and $3.9 million and $4.1 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. 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 June 30, 2025:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | April 8, 2025 | TriplePoint Acquisition Holdings | Provider of HVAC, plumbing, and other mechanical | $ | 1,406,080 | Senior Secured – First Lien | |||||
New Investment | April 30, 2025 | Gourmet Specialty Foods, LLC | Provider of ready-to-cook value-added proteins to | $ | 1,679,781 | Senior Secured – First Lien | |||||
$ | 1,119,854 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,341,001 | Revolver Commitment | |||||||||
$ | 138,021 | Equity | |||||||||
Add-On Investment | May 5, 2025 | FairWave Holdings, LLC* | Specialty coffee platform | $ | 7,833 | Equity | |||||
Add-On Investment | May 21, 2025 | The Hardenbergh Group, Inc. * | Provider of temporary professional staffing of | $ | 148,167 | Equity | |||||
Add-On Investment | May 30, 2025 | WER Holdings, LLC* | Regional provider of commercial landscaping | $ | 173,605 | Senior Secured – First Lien | |||||
$ | 962,586 | Delayed Draw Term Loan Commitment | |||||||||
New Investment | June 3, 2025 | International Cybernetics Company, | Provider of road condition assessment services and | $ | 3,099,188 | Senior Secured – First Lien | |||||
$ | 2,324,391 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,486,393 | Revolver Commitment | |||||||||
$ | 86,375 | Equity | |||||||||
Add-On Investment | June 4, 2025 | Eskola LLC* | Provider of commercial re-roofing services | $ | 31,584 | Equity | |||||
New Investment | June 6, 2025 | Solid Surface Care Holdings, Inc. | National commercial surface care and restoration | $ | 2,239,708 | Senior Secured – First Lien | |||||
$ | 2,299,062 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,341,001 | Revolver Commitment | |||||||||
$ | 220,491 | Equity | |||||||||
* | Existing portfolio company | ||||
Events Subsequent to June 30, 2025
The Company's management has evaluated subsequent events through August 8, 2025. 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 June 30, 2025:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | July 1, 2025 | Bart & Associates, LLC* | Provides IT modernization services for federal | $ | 228,049 | Equity | |||||
Add-On Investment | July 28, 2025 | Equine Network, LLC* | Hosts competitions and provides services for the | $ | 1,406,080 | Senior Secured – First Lien | |||||
New Investment | July 31, 2025 | The Millennium Alliance, LLC | Facilitator of peer-to-peer events connecting | $ | 5,280,193 | Senior Secured – First Lien | |||||
$ | 1,341,001 | Revolver Commitment | |||||||||
$ | 294,275 | Equity | |||||||||
New Investment | July 31, 2025 | Project EC** | Provider of homecare services | $ | 3,485,935 | Senior Secured – First Lien | |||||
$ | 3,697,074 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,259,737 | Revolver Commitment | |||||||||
$ | 740,592 | Equity | |||||||||
Add-On Investment | August 5, 2025 | MedLearning Group, LLC* | Provider of continuing medical education services | $ | 4,232,194 | Senior Secured – First Lien | |||||
* | Existing portfolio company | ||||
** | The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company's quarterly report for the quarter ending September 30, 2025. | ||||
Credit Facilities
The outstanding balance under the Credit Facility and SPV Facility as of August 8, 2025 was $145.1 million and $50.0 million, respectively.
Distributions Declared
On July 2, 2025, the Board declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows:
Record | Payment | Amount per | |||||
Declared | Date | Date | Share | ||||
7/2/2025 | 7/7/2025 | 7/31/2025 | $ | 0.1266 | |||
7/2/2025 | 8/1/2025 | 8/29/2025 | $ | 0.1266 | |||
7/2/2025 | 9/2/2025 | 9/30/2025 | $ | 0.1266 | |||
Sale of Unregistered Securities
Since June 30, 2025, the Company sold 33,859 common shares of beneficial interest at a price of $15.29 per share for aggregate proceeds of $0.5 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
On July 23, 2025, 141,271 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 prior to the expiration of the applicable tender offer, at a price equal to $15.29 per Share for an aggregate purchase price of approximately $2.2 million.
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 | ||||||
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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | ||||||
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June 30, 2025 | ||||||
(unaudited) | December 31, 2024 | |||||
ASSETS | ||||||
Non-controlled, non-affiliated investments, at fair value (amortized cost of | $ | 340,357,403 | $ | 300,732,065 | ||
Cash and cash equivalents | 3,656,962 | 2,144,116 | ||||
Other receivable | — | 4,340 | ||||
Interest receivable | 1,434,949 | 1,367,849 | ||||
Expense reimbursement receivable from the Advisor (Note 2) | 43,764 | 161,473 | ||||
Deferred offering costs | 91,083 | 127,983 | ||||
Related party receivable | — | 2,004 | ||||
Prepaid expenses | 75,871 | 164,350 | ||||
Receivable for sales and repayments of investments | 140,531 | 86,896 | ||||
Total Assets | $ | 345,800,563 | $ | 304,791,076 | ||
LIABILITIES | ||||||
Credit Facilities payable | $ | 171,454,697 | $ | 138,692,860 | ||
Unearned revenue | 1,168,481 | 921,629 | ||||
Management fees payable | 797,402 | 648,149 | ||||
Income incentive fee payable | 488,340 | 452,186 | ||||
Capital gains incentive fee payable | 578,962 | 306,229 | ||||
Interest payable | 621,719 | 613,821 | ||||
Administrative services payable | 131,093 | 109,027 | ||||
Income tax payable | 39,534 | 51,427 | ||||
Deferred tax liability | 221,189 | 259,455 | ||||
Other accrued expenses and liabilities | 133,669 | 348,413 | ||||
Total Liabilities | $ | 175,635,086 | $ | 142,403,196 | ||
Commitments and contingencies (Note 7) | ||||||
Net Assets | $ | 170,165,477 | $ | 162,387,880 | ||
NET ASSETS | ||||||
Common shares of beneficial interest, par value $0.01 per share (unlimited shares | $ | 111,271 | $ | 107,151 | ||
Paid-in capital | 165,767,878 | 159,483,435 | ||||
Total distributable earnings | 4,286,328 | 2,797,294 | ||||
Net Assets | $ | 170,165,477 | $ | 162,387,880 | ||
Total Liabilities and Net Assets | $ | 345,800,563 | $ | 304,791,076 | ||
Net Asset Value Per Share | $ | 15.29 | $ | 15.16 | ||
STELLUS PRIVATE CREDIT BDC | ||||||||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
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Three Months Ended | Six Months Ended | |||||||||||
June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
INVESTMENT INCOME | ||||||||||||
Interest income | $ | 8,539,390 | $ | 6,844,595 | $ | 16,442,548 | $ | 13,153,976 | ||||
Other income | 199,844 | 86,125 | 347,545 | 195,721 | ||||||||
Total Investment Income | $ | 8,739,234 | $ | 6,930,720 | $ | 16,790,093 | $ | 13,349,697 | ||||
OPERATING EXPENSES | ||||||||||||
Management fees | $ | 1,196,103 | $ | 800,653 | $ | 2,231,932 | $ | 1,601,307 | ||||
Income incentive fees | 625,799 | 642,470 | 1,204,114 | 1,240,871 | ||||||||
Capital gains incentive fee (reversal) | 109,594 | (7,817) | 272,733 | 30,074 | ||||||||
Professional fees | 201,789 | 128,021 | 381,838 | 324,932 | ||||||||
Amortization of deferred offering costs | 63,147 | 48,654 | 132,981 | 95,382 | ||||||||
Administrative services expenses | 158,184 | 122,272 | 301,183 | 244,049 | ||||||||
Trustees' fees | 40,000 | 40,000 | 80,000 | 80,000 | ||||||||
Insurance expense | 22,126 | 20,197 | 44,010 | 40,393 | ||||||||
Valuation fees | 3,904 | 1,559 | 42,609 | 28,718 | ||||||||
Interest expense and other fees | 3,241,210 | 2,278,332 | 6,257,771 | 4,388,451 | ||||||||
Income tax expense | 14,758 | 7,685 | 17,107 | 29,274 | ||||||||
Other general and administrative expenses | 68,485 | 77,912 | 145,355 | 120,845 | ||||||||
Total Operating Expenses | $ | 5,745,099 | $ | 4,159,938 | $ | 11,111,633 | $ | 8,224,296 | ||||
Expenses reimbursed/fees waived by Advisor (Note 2) | $ | (651,064) | $ | (1,091,852) | $ | (1,273,490) | $ | (2,289,748) | ||||
Net Operating Expenses | $ | 5,094,035 | $ | 3,068,086 | $ | 9,838,143 | $ | 5,934,548 | ||||
Net Investment Income | $ | 3,645,199 | $ | 3,862,634 | $ | 6,951,950 | $ | 7,415,149 | ||||
Net realized gain on non-controlled, non-affiliated investments | $ | 67,495 | $ | — | $ | 67,495 | $ | — | ||||
Net realized gain on foreign currency translation | $ | 4,798 | $ | 6,403 | 6,419 | 14,845 | ||||||
Net change in unrealized appreciation (depreciation) on non- | 1,024,545 | (417,099) | 2,205,337 | (83,638) | ||||||||
Net change in unrealized appreciation (depreciation) on foreign | 22,698 | (4,288) | 35,732 | (13,169) | ||||||||
(Provision) benefit for taxes on net unrealized (gain) loss on | (23,593) | (42,087) | 38,266 | 3,798 | ||||||||
Net Increase in Net Assets Resulting from Operations | $ | 4,741,142 | $ | 3,405,563 | $ | 9,305,199 | $ | 7,336,985 | ||||
Net Investment Income Per Share – basic and diluted | $ | 0.33 | $ | 0.46 | $ | 0.64 | $ | 0.95 | ||||
Net Increase in Net Assets Resulting from Operations | $ | 0.43 | $ | 0.41 | $ | 0.86 | $ | 0.94 | ||||
Weighted Average Common Shares of Beneficial Interest | 10,935,215 | 8,310,559 | 10,851,870 | 7,768,883 | ||||||||
Distributions Per Share – basic and diluted | $ | 0.36 | $ | 0.49 | $ | 0.72 | $ | 0.99 | ||||
STELLUS PRIVATE CREDIT BDC | ||||||||||||||
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CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) | ||||||||||||||
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Common Shares of | ||||||||||||||
Beneficial Interest | Total | |||||||||||||
Number of | Par | Paid-in | distributable | |||||||||||
shares | value | capital | gain | Net Assets | ||||||||||
Balances at December 31, 2023 | 7,102,136 | $ | 71,021 | $ | 104,810,048 | $ | 3,140,953 | $ | 108,022,022 | |||||
Net investment income | — | — | — | 3,552,515 | 3,552,515 | |||||||||
Net realized gain on foreign currency translation | — | — | — | 8,442 | 8,442 | |||||||||
Net change in unrealized appreciation on non-controlled, non-affiliated | — | — | — | 333,461 | 333,461 | |||||||||
Net change in unrealized depreciation on foreign currency translations | — | — | — | (8,881) | (8,881) | |||||||||
Benefit for taxes on net unrealized loss on investments | — | — | — | 45,885 | 45,885 | |||||||||
Distributions from net investment income | — | — | — | (3,610,362) | (3,610,362) | |||||||||
Issuance of common shares of beneficial interest | 255,902 | 2,559 | 3,901,680 | — | 3,904,239 | |||||||||
Balances at March 31, 2024 | 7,358,038 | $ | 73,580 | $ | 108,711,728 | $ | 3,462,013 | $ | 112,247,321 | |||||
Net investment income | — | — | — | 3,862,634 | 3,862,634 | |||||||||
Net realized gain on foreign currency translation | — | — | — | 6,403 | 6,403 | |||||||||
Net change in unrealized depreciation on non-controlled, non-affiliated | — | — | — | (417,099) | (417,099) | |||||||||
Net change in unrealized depreciation on foreign currency translations | — | — | — | (4,288) | (4,288) | |||||||||
Provision for taxes on net unrealized gain on investments | — | — | — | (42,087) | (42,087) | |||||||||
Distributions from net investment income | — | — | — | (4,075,936) | (4,075,936) | |||||||||
Issuance of common shares of beneficial interest | 2,032,499 | 20,325 | 31,035,613 | — | 31,055,938 | |||||||||
Balances at June 30, 2024 | 9,390,537 | $ | 93,905 | $ | 139,747,341 | $ | 2,791,640 | $ | 142,632,886 | |||||
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Balances at December 31, 2024 | 10,715,095 | $ | 107,151 | $ | 159,483,435 | $ | 2,797,294 | $ | 162,387,880 | |||||
Net investment income | — | — | — | 3,306,751 | 3,306,751 | |||||||||
Net realized gain on foreign currency translation | — | — | — | 1,621 | 1,621 | |||||||||
Net change in unrealized appreciation on non-controlled, non-affiliated | — | — | — | 1,180,792 | 1,180,792 | |||||||||
Net change in unrealized appreciation on foreign currency translations | — | — | — | 13,034 | 13,034 | |||||||||
Provision for taxes on net unrealized gain on investments | — | — | — | 61,859 | 61,859 | |||||||||
Distributions from net investment income | — | — | — | (3,881,841) | (3,881,841) | |||||||||
Issuance of common shares of beneficial interest | 158,226 | 1,582 | 2,406,248 | — | 2,407,830 | |||||||||
Balances at March 31, 2025 | 10,873,321 | $ | 108,733 | $ | 161,889,683 | $ | 3,479,510 | $ | 165,477,926 | |||||
Net investment income | — | — | — | 3,645,199 | 3,645,199 | |||||||||
Net realized gain on investments | — | — | — | 67,495 | 67,495 | |||||||||
Net realized gain on foreign currency translation | — | — | — | 4,798 | 4,798 | |||||||||
Net change in unrealized appreciation on non-controlled, non-affiliated | — | — | — | 1,024,545 | 1,024,545 | |||||||||
Net change in unrealized appreciation on foreign currency translations | — | — | — | 22,698 | 22,698 | |||||||||
Provision for taxes on net unrealized gain on investments | — | — | — | (23,593) | (23,593) | |||||||||
Distributions from net investment income | — | — | — | (3,934,324) | (3,934,324) | |||||||||
Issuance of common shares of beneficial interest | 276,357 | 2,764 | 4,220,720 | — | 4,223,484 | |||||||||
Redemption of common shares of beneficial interest | (22,609) | (226) | (342,525) | — | (342,751) | |||||||||
Balances at June 30, 2025 | 11,127,069 | $ | 111,271 | $ | 165,767,878 | $ | 4,286,328 | $ | 170,165,477 | |||||
STELLUS PRIVATE CREDIT BDC | |||||
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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||
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Six Months Ended | |||||
June 30, 2025 | June 30, 2024 | ||||
Cash Flows from Operating Activities | |||||
Net increase in net assets resulting from operations | $ | 9,305,199 | $ | 7,336,985 | |
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | |||||
Purchases of investments | (51,138,817) | (58,123,495) | |||
Proceeds from sales and repayments of investments | 14,439,508 | 13,029,056 | |||
Net change in unrealized (appreciation) depreciation on investments | (2,205,337) | 83,638 | |||
Net change in unrealized (appreciation) depreciation foreign currency translations | (35,732) | 13,169 | |||
Increase in investments due to PIK | (197,732) | (333,142) | |||
Amortization of premium and accretion of discount, net | (473,368) | (299,811) | |||
Deferred tax benefit | (38,266) | (3,799) | |||
Amortization of loan structure fees | 267,785 | 188,217 | |||
Amortization of deferred offering costs | 132,981 | 95,382 | |||
Net realized gain on investments | (67,495) | — | |||
Changes in other assets and liabilities | |||||
Increase in interest receivable | (67,100) | (422,888) | |||
Decrease (increase) in other receivable | 4,340 | (123,392) | |||
Decrease in related party receivable | 2,004 | 48,789 | |||
Decrease in expense reimbursements receivable from the Advisor | 117,709 | 49,497 | |||
Decrease in prepaid expenses | 88,479 | 42,526 | |||
Increase in administrative services payable | 22,066 | 6,585 | |||
Increase (decrease) in interest payable | 7,898 | (32,557) | |||
Increase in income management fees payable | 149,253 | — | |||
Increase in income incentive fees payable | 36,154 | 6,057 | |||
Increase in capital gains incentive fees payable | 272,733 | 30,074 | |||
Increase (decrease) in unearned revenue | 246,852 | (96,169) | |||
Decrease in income tax payable | (11,893) | (130,720) | |||
(Decrease) increase in other accrued expenses and liabilities | (214,744) | 12,958 | |||
Net Cash Used in Operating Activities | $ | (29,357,523) | $ | (38,623,040) | |
Cash Flows from Financing Activities | |||||
Proceeds from issuance of common shares of beneficial interest | $ | 6,631,314 | $ | 34,960,177 | |
Offering costs paid for common shares of beneficial interest issued | (96,081) | (128,350) | |||
Purchase of common shares of beneficial interest in tender offer | (342,751) | — | |||
Stockholder distributions paid | (7,816,165) | (11,237,366) | |||
Borrowings under Credit Facilities | 50,700,000 | 67,100,000 | |||
Repayments of Credit Facilities | (18,050,000) | (52,100,000) | |||
Financing costs paid on Credit Facilities | (155,948) | — | |||
Net Cash Provided by Financing Activities | $ | 30,870,369 | $ | 38,594,461 | |
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 1,512,846 | $ | (28,579) | |
Cash and Cash Equivalents Balance at Beginning of Period | 2,144,116 | 593,685 | |||
Cash and Cash Equivalents Balance at End of Period | $ | 3,656,962 | $ | 565,106 | |
Supplemental and Non-Cash Activities | |||||
Cash paid for interest expense | $ | 5,982,088 | $ | 4,232,791 | |
Income and excise tax paid | 29,000 | 159,994 | |||
Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan | 1,185,787 | 780,177 | |||
Decrease in dividends payable | — | (3,551,068) | |||
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SOURCE Stellus Private Credit BDC
