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
----------------------------------------
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 $15.29
Weighted average shares
outstanding 13,187,428 10,935,215
PORTFOLIO ACTIVITY
---------------------------------------
($ in millions)
As of As of
June 30, 2026 December 31, 2025
------------- -----------------
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
------------- -----------------
New investments $36.7 $14.4
Repayments of investments (25.7) (10.2)
------------- -----------------
Net activity $11.0 $4.2
As of As of
June 30, 2026 December 31, 2025
------------- -----------------
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 %
____________________
(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.
For the three months ended June 30, 2026, the Company sold 121,833 common shares of beneficial interest at a weighted-average price of $15.12 per share for aggregate net proceeds of $1.9 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, 2026. Additionally, for the three months ended June 30, 2026, the Company called $15.0 million pursuant to capital draw down subscription agreements between the Company and its shareholders. The transaction resulted in the issuance of 991,628 common shares of beneficial interest at a weighted-average price of $15.13 per share. Lastly, the Company purchased 390,667 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, 2026 at a price equal to $15.13 per Share for an aggregate purchase price of approximately $5.9 million.
Distributions
During the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.36, respectively ($4.5 million and $3.9 million in the aggregate, respectively. 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, 2026:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ------ ---------------- -------------- ----------- -----------
April Locum tenens Senior
New 3, VeloSource staffing Secured --
Investment 2026 Purchaser, LLC agency $ 7,800,000 First Lien
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 372,093 Equity
New April Solomon An $ 2,712,573 Senior
Investment 13, AcquisitionCo, innovative Secured --
2026 LLC process First Lien
automation
and digital
systems
integrator
$ 100,000 Revolver
Commitment
$ 122,286 Equity
New April OW RSG LLC Manufacturer $ 6,500,000 Senior
Investment 27, of walk-in Secured --
2026 coolers, First Lien
freezers,
and
refrigerati
on systems
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 516,975 Equity
Add-On May 11, Channel Partners Provider of $ 1,000,000 Senior
Investment 2026 Intermediateco, outsourced Secured --
LLC* marketing First Lien
services
Add-On June 1, WER Holdings, Regional $ 1,201,513 Senior
Investment 2026 LLC* provider of Secured --
commercial First Lien
landscaping
services
$ 787,878 Delayed
Draw Term
Loan
Commitment
Add-On June Monarch Provider of $ 23,201 Convertible
Investment 29, Behavioral center-base Promissory
2026 Therapy, LLC* d applied Note
behavioral
analysis
therapy
services
Add-On June Valor Buyco LLC* Provider of $ 100,000 Delayed
Investment 30, dispatched Draw Term
2026 road Loan
services Commitment
____________________
* Existing portfolio company
The Company realized the following portfolio companies for the three months ended June 30, 2026:
Activity Company Company Proceeds Instrument
Type Date Name Description Received Type
---------- ------ --------- -------------- ---------- -----------
Provider of
equine
competition
s, content,
April Equine products, Senior
Full 24, Network, and Secured --
Repayment 2026 LLC services $4,082,857 First Lien
$ 363,743 Delayed
Draw Term
Loan
Commitment
$ 353,198 Revolver
Commitment
Full April Cerebro Manufacturer $2,043,731 Senior
Repayment 30, Buyer, of Secured --
2026 LLC single-use First Lien
electrodes
for medical
procedures
$ 170,166 Delayed
Draw Term
Loan
Commitment
Full June Tilley Distributor $2,666,849 Senior
Repayment 30, Company of Secured --
2026 specialty First Lien
chemicals,
oils, and
lubricants
into the
food &
beverage,
lubricants,
flavor and
fragrances,
personal
care, and
other
chemicals
end-markets
$ 128,683 Revolver
Commitment
Events Subsequent to June 30, 2026
The Company's management has evaluated subsequent events through August 12, 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 June 30, 2026:
Activity Type Date Company Name Company Description Investment Amount Instrument Type
-------------- ------- ------------- -------------------- ------------------- ---------------
Blade Regional provider
Landscape of commercial
Add-On July 2, Investments, landscaping
Investment 2026 LLC* services $ 2,250 Equity
New Investment July 16, Emergent Microsoft-centric $ 2,246,180 Senior Secured
2026 Software data, AI, and -- First Lien
cloud IT services
partner
$ 1,871,817 Delayed Draw
Term Loan
Commitment
$ 500,000 Revolver
Commitment
$ 222,653 Equity
New Investment August LJ Welding Manufacturer of $ 6,969,323 Senior Secured
5, Automation material handling -- First Lien
2026 Ltd. and welding
automation
systems
$ 500,000 Revolver
Commitment
$ 276,642 Equity
____________________
* Existing portfolio company
The Company realized the following portfolio companies subsequent to June 30, 2026:
Activity Company Proceeds Instrument
Type Date Company Name Description Received Type
---------- ----- ----------------- ------------ ---------- -----------
Lifestyle
July home Senior
Full 27, MacKenzie-Childs déco Secured --
Repayment 2026 Acquisition, Inc. r brand $8,116,861 First Lien
Credit Facilities
As of August 12, 2026, the outstanding balances under the Credit Facility and SPV Facility were $141.3 million and $75.0 million, respectively.
Distributions Declared
On July 16, 2026 the Board declared a regular monthly dividend for each of July, August and September 2026 as follows:
Record Payment Amount per
Declared Date Date Share
---------- ---------- ---------- ------------
7/16/2026 7/17/2026 7/31/2026 $ 0.1033
7/16/2026 8/3/2026 8/31/2026 $ 0.1033
7/16/2026 9/1/2026 9/30/2026 $ 0.1033
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. Stellus Private BDC Advisor, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the Securities and Exchange Commission for additional information.
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
June 30, 2026
(unaudited) December 31, 2025
--------------- -------------------
ASSETS
Non-controlled, affiliated
investments, at fair value
(amortized cost of $12,395,473) $ 12,323,944 $ --
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $397,729,677
and $396,791,982, respectively) 407,203,257 400,131,924
Cash and cash equivalents 4,743,164 2,586,895
Other receivable 94,951 --
Interest receivable 1,604,128 1,765,379
Expense reimbursement receivable
from the Advisor (Note 2) 31,822 2,580
Deferred offering costs 36,097 60,993
Prepaid expenses 96,446 13,632
Receivable for sales and repayments
of investments 1,320,742 165,651
----------- ---------------
Total Assets $ 427,454,551 $ 404,727,054
----------- ---------------
LIABILITIES
Credit Facilities payable $ 213,126,583 $ 200,281,671
Related party payable 10,310 --
Unearned revenue 1,056,236 1,207,706
Management fees payable 1,009,641 908,154
Income incentive fee payable 498,025 544,620
Capital gains incentive fee payable 720,247 527,603
Interest payable 776,186 865,205
Administrative services payable 193,755 189,715
Income tax payable 61,800 126,348
Deferred tax liability 708,155 338,611
Other accrued expenses and
liabilities 150,221 110,706
----------- ---------------
Total Liabilities $ 218,311,159 $ 205,100,339
----------- ---------------
Commitments and contingencies
(Note 7)
----------- ---------------
Net Assets $ 209,143,392 $ 199,626,715
=========== ===============
NET ASSETS
Common shares of beneficial
interest, par value $0.01 per
share (unlimited shares
authorized; 13,716,206 and
13,121,397 issued and outstanding,
respectively) $ 137,162 $ 131,214
Paid-in capital 204,932,861 195,935,870
Total distributable earnings 4,073,369 3,559,631
----------- ---------------
Net Assets $ 209,143,392 $ 199,626,715
----------- ---------------
Total Liabilities and Net Assets $ 427,454,551 $ 404,727,054
----------- ---------------
Net Asset Value Per Share $ 15.25 $ 15.21
=========== ===============
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Six Months Ended
-------------------------------- --------------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
--------------- --------------- --------------- ---------------
INVESTMENT INCOME
From
non-controlled,
affiliated
investments
Interest income $ 672 $ -- $ 672 $ --
Other income 5 -- 5 --
From
non-controlled,
non-affiliated
investments
Interest income 9,540,879 8,539,390 18,770,010 16,442,548
Other income 175,968 199,844 438,717 347,545
----------- ----------- ----------- -----------
Total Investment
Income $ 9,717,524 $ 8,739,234 $ 19,209,404 $ 16,790,093
----------- ----------- ----------- -----------
OPERATING
EXPENSES
Management fees $ 1,514,461 $ 1,196,103 $ 2,958,030 $ 2,231,932
Income incentive
fee 632,714 625,799 1,288,621 1,204,114
Capital gains
incentive fee 223,137 109,594 192,644 272,733
Professional fees 161,219 201,789 411,272 381,838
Amortization of
deferred
offering costs 22,753 63,147 54,493 132,981
Administrative
services
expenses 251,274 158,184 487,560 301,183
Trustees' fees 40,000 40,000 80,000 80,000
Insurance expense 10,676 22,126 30,567 44,010
Valuation fees 7,167 3,904 58,044 42,609
Interest expense
and other fees 3,781,773 3,241,210 7,331,821 6,257,771
Income tax
expense 3,910 14,758 46,251 17,107
Other general and
administrative
expenses 126,203 68,485 203,935 145,355
----------- ----------- ----------- -----------
Total Operating
Expenses $ 6,775,287 $ 5,745,099 $ 13,143,238 $ 11,111,633
----------- ----------- ----------- -----------
Expenses
reimbursed/fees
waived by
Advisor (Note
2) $ (754,187) $ (651,064) $ (1,596,187) $ (1,273,490)
----------- ----------- ----------- -----------
Net Operating
Expenses $ 6,021,100 $ 5,094,035 $ 11,547,051 $ 9,838,143
----------- ----------- ----------- -----------
Net Investment
Income $ 3,696,424 $ 3,645,199 $ 7,662,353 $ 6,951,950
=========== =========== =========== ===========
Net realized
(loss) gain on
non-controlled,
non-affiliated
investments $ (3,810,360) $ 67,495 $ (3,810,360) $ 67,495
Net realized gain
on foreign
currency
translation 20,045 4,798 44,239 6,419
Net change in
unrealized
appreciation on
non-controlled,
affiliated
investments 176,952 -- -- --
Net change in
unrealized
appreciation on
non-controlled,
non- affiliated
investments 6,073,595 1,024,545 6,080,638 2,205,337
Net change in
unrealized
(depreciation)
appreciation on
foreign currency
translations (1,686) 22,698 (18,527) 35,732
(Provision)
benefit for
taxes on net
unrealized
(gain) loss on
investments (227,175) (23,593) (369,546) 38,266
----------- ----------- ----------- -----------
Net Increase in
Net Assets
Resulting from
Operations $ 5,927,795 $ 4,741,142 $ 9,588,797 $ 9,305,199
=========== =========== =========== ===========
Net Investment
Income Per Share
-- basic and
diluted $ 0.28 $ 0.33 $ 0.58 $ 0.64
=========== =========== =========== ===========
Net Increase in
Net Assets
Resulting from
Operations Per
Share -- basic
and diluted $ 0.45 $ 0.43 $ 0.73 $ 0.86
=========== =========== =========== ===========
Weighted Average
Common Shares of
Beneficial
Interest
Outstanding --
basic and
diluted 13,187,428 10,935,215 13,150,920 10,851,870
----------- ----------- ----------- -----------
Distributions Per
Share -- basic
and diluted $ 0.34 $ 0.36 $ 0.69 $ 0.72
=========== =========== =========== ===========
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
Common Shares of
Beneficial Interest Total
---------------------
Number of Par Paid-in distributable
shares value capital gain Net Assets
----------- -------- ------------ --------------- ------------
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
investments -- -- -- 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
investments -- -- -- 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
=========== ======= =========== =========== ===========
Balances at
December 31, 2025 13,121,397 $131,214 $195,935,870 $ 3,559,631 $199,626,715
=========== ======= =========== =========== ===========
Net investment
income -- -- -- 3,965,929 3,965,929
Net realized gain
on foreign
currency
translation -- -- -- 24,194 24,194
Net change in
unrealized
depreciation on
non-controlled,
non-affiliated
investments -- -- -- (169,909) (169,909)
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (16,841) (16,841)
Provision for taxes
on net unrealized
gain on
investments -- -- -- (142,371) (142,371)
Distributions from
net investment
income -- -- -- (4,598,033) (4,598,033)
Issuance of common
shares of
beneficial
interest 208,966 2,090 3,188,141 -- 3,190,231
Redemption of
common shares of
beneficial
interest (357,092) (3,571) (5,427,794) -- (5,431,365)
----------- ------- ----------- ----------- -----------
Balances at
March 31, 2026 12,973,271 $129,733 $193,696,217 $ 2,622,600 $196,448,550
=========== ======= =========== =========== ===========
Net investment
income -- -- -- 3,696,424 3,696,424
Net realized loss
on investments -- -- -- (3,810,360) (3,810,360)
Net realized gain
on foreign
currency
translation -- -- -- 20,045 20,045
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments -- -- -- 6,250,547 6,250,547
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (1,686) (1,686)
Provision for taxes
on net unrealized
gain on
investments -- -- -- (227,175) (227,175)
Distributions from
net investment
income -- -- -- (4,477,026) (4,477,026)
Issuance of common
shares of
beneficial
interest 1,133,602 11,336 17,143,523 -- 17,154,859
Redemption of
common shares of
beneficial
interest (390,667) (3,907) (5,906,879) -- (5,910,786)
----------- ------- ----------- ----------- -----------
Balances at
June 30, 2026 13,716,206 $137,162 $204,932,861 $ 4,073,369 $209,143,392
=========== ======= =========== =========== ===========
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended
----------------------------
June 30, 2026 June 30, 2025
------------- -------------
Cash Flows from Operating Activities
Net increase in net assets resulting from
operations $ 9,588,797 $ 9,305,199
Adjustments to reconcile net increase in
net assets from operations to net cash
used in operating activities:
Purchases of investments (64,027,298) (51,138,817)
Proceeds from sales and repayments of
investments 46,946,394 14,439,508
Net change in unrealized appreciation on
investments (6,080,638) (2,205,337)
Net change in unrealized depreciation
(appreciation) foreign currency
translations 18,527 (35,732)
Increase in investments due to PIK (629,431) (197,732)
Amortization of premium and accretion of
discount, net (588,282) (473,368)
Deferred tax provision (benefit) 369,544 (38,266)
Amortization of loan structure fees 514,180 267,785
Amortization of deferred offering costs 54,493 132,981
Net realized loss (gain) on investments 3,810,360 (67,495)
Changes in other assets and liabilities
Decrease (increase) in interest
receivable 161,251 (67,100)
(Increase) decrease in other receivable (94,951) 4,340
Decrease in related party receivable -- 2,004
(Increase) decrease in expense
reimbursements receivable from the
Advisor (29,242) 117,709
(Increase) decrease in prepaid expenses (82,814) 88,479
Increase in related party payable 10,310 --
Increase in administrative services
payable 4,040 22,066
(Decrease) increase in interest payable (89,019) 7,898
Increase in income management fees
payable 101,487 149,253
(Decrease) increase in income incentive
fees payable (46,595) 36,154
Increase in capital gain incentive fees
payable 192,644 272,733
(Decrease) increase in unearned revenue (151,470) 246,852
Decrease in income tax payable (64,548) (11,893)
Increase (decrease) in other accrued
expenses and liabilities 39,515 (214,744)
------------ ------------
Net Cash Used in Operating Activities $(10,072,746) $(29,357,523)
------------ ------------
Cash Flows from Financing Activities
Proceeds from issuance of common shares
of beneficial interest $ 20,345,090 $ 6,631,314
Offering costs paid for common shares of
beneficial interest issued (29,597) (96,081)
Purchase of common shares of beneficial
interest in tender offer (11,342,151) (342,751)
Stockholder distributions paid (9,075,059) (7,816,165)
Borrowings under Credit Facilities 74,100,000 50,700,000
Repayments of Credit Facilities (61,750,000) (18,050,000)
Financing costs paid on Credit Facilities (19,268) (155,948)
------------ ------------
Net Cash Provided by Financing Activities $ 12,229,015 $ 30,870,369
------------ ------------
Net Increase in Cash and Cash Equivalents $ 2,156,269 $ 1,512,846
------------ ------------
Cash and Cash Equivalents Balance at
Beginning of Period 2,586,895 2,144,116
------------ ------------
Cash and Cash Equivalents Balance at End
of Period $ 4,743,164 $ 3,656,962
============ ============
Supplemental and Non-Cash Activities
Cash paid for interest expense $ 6,906,660 $ 5,982,088
Income and excise tax paid 110,799 29,000
Value of common shares of beneficial
interest issued pursuant to Dividend
Reinvestment Plan 666,090 1,185,787
Exchange of investments 6,055,309 --
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SOURCE Stellus Private Credit BDC