Stellus Private Credit BDC Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2024
HOUSTON, March 6, 2025 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fourth fiscal quarter and year ended December 31, 2024.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated "We are pleased to report strong results in the fourth quarter in which we generated $0.37 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $53 million of investments and received $11 million of repayments, bringing the total portfolio to $301 million at fair value. On January 9, 2025, we declared our 2025 first quarter monthly dividend of $0.36 per share in the aggregate."
FINANCIAL HIGHLIGHTS | ||||||||||||
($ in millions, except data relating to per share amounts and shares outstanding) | ||||||||||||
Three Months Ended | Years Ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||
Net investment income | $3.49 | $0.37 | $3.92 | $0.56 | $15.57 | $1.80 | $12.33 | $1.96 | ||||
Net realized gain on investments | 0.01 | — | 0.70 | 0.11 | 0.03 | — | 0.70 | 0.11 | ||||
Net unrealized appreciation (depreciation) included in earnings | 1.39 | 0.14 | (0.22) | (0.03) | 0.88 | 0.11 | 2.59 | 0.41 | ||||
Provision for taxes on net unrealized appreciation on investments | (0.08) | (0.01) | (0.11) | (0.02) | (0.09) | (0.01) | (0.17) | (0.03) | ||||
Net increase in net assets resulting from operations | $4.81 | $0.50 | $4.29 | $0.62 | $16.39 | $1.90 | $15.45 | $2.46 | ||||
Distributions | (4.53) | (0.47) | (3.55) | (0.51) | (16.96) | (1.96) | (11.77) | (1.88) | ||||
Other weighted average share adjustments(1) | — | (0.01) | — | — | — | 0.01 | — | — | ||||
Net asset value | $162.39 | $15.16 | $108.02 | $15.21 | $162.39 | $15.16 | $108.02 | $15.21 | ||||
Weighted average shares outstanding | 9,561,014 | 6,953,190 | 8,643,493 | 6,273,882 | ||||||||
(1) | Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end. | ||||||
PORTFOLIO ACTIVITY | ||||
($ in millions) | ||||
As of | As of | |||
December 31, 2024 | December 31, 2023 | |||
Investments at fair value | $300.7 | $208.6 | ||
Total assets | $304.8 | $211.2 | ||
Net assets | $162.4 | $108.0 | ||
Shares outstanding | 10,715,095 | 7,102,136 | ||
Net asset value per share | $15.16 | $15.21 | ||
Three Months Ended | ||||
December 31, 2024 | December 31, 2023 | |||
New investments | $52.8 | $20.9 | ||
Repayments of investments | (10.7) | (24.9) | ||
Net activity | $42.1 | ($4.0) | ||
As of | As of | |||
December 31, 2024 | December 31, 2023 | |||
Number of portfolio company investments | 59 | 39 | ||
Number of debt investments | 55 | 37 | ||
Weight average yield of debt and other income producing investments(2) | ||||
Cash | 10.2 % | 11.8 % | ||
Payment-in-kind ("PIK") | 0.2 % | 0.3 % | ||
Fee amortization | 0.4 % | 0.4 % | ||
Total | 10.8 % | 12.5 % | ||
Weighted average yield on total investments(3) | ||||
Cash | 9.8 % | 11.2 % | ||
PIK | 0.2 % | 0.3 % | ||
Fee amortization | 0.3 % | 0.4 % | ||
Total | 10.3 % | 11.9 % | ||
(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 December 31, 2024 and 2023 totaled $7.8 million and $7.1 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended December 31, 2024 and 2023 totaled $5.0 million and $4.3 million, respectively. For the same periods, base management fees totaled $1.0 million and $0.8 million, income incentive fees totaled $0.6 million and $0.7 million, respectively; capital gains incentive fees of $0.1 million and $0.0 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $2.6 million and $2.4 million, respectively (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.1 million, respectively and other expenses totaled $0.5 million and $0.3 million, respectively. For the three months ended December 31, 2024 and 2023, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.3 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 $0.2 million and $0.1 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $4.3 million and $3.2 million, respectively.
For the three months ended December 31, 2024 and 2023, net investment income was $3.5 million and $3.9 million, or $0.37 and $0.56 per common share based on weighted average common shares outstanding of 9,561,014 and 6,953,190, respectively.
The Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $1.4 million and ($0.2) million for the three months ended December 31, 2024 and 2023, respectively.
For the three months ended December 31, 2024 and 2023, net increase in net assets resulting from operations totaled $4.8 million and $4.3 million, or $0.50 and $0.62 per common share, based on weighted average common shares outstanding of 9,561,014 and 6,953,190, 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 $175.0 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 December 31, 2024 and December 31, 2023, the Company had $90.5 million and $98.0 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 December 31, 2024, the Company had $50.0 million in outstanding borrowings under the SPV Facility.
Distributions
During the three months ended December 31, 2024 and 2023, the Company declared aggregate distributions of $0.48 per share and $0.50, respectively, ($4.5 million and $3.6 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $0.3 million of the dividends declared in 2024 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, 2024:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | October 18, 2024 | Compost 360 Acquisition, LLC* | Organic waste recycler and producer of compost, mulch, and engineered soils | $ | 40,880 | Equity | |||||
New Investment | October 31, 2024 | Norplex Micarta Acquisition, Inc. | Manufacturer of thermoset composite laminates | $ | 5,972,094 | Senior Secured – First Lien | |||||
$ | 1,822,665 | Revolver Commitment | |||||||||
$ | 427,155 | Equity | |||||||||
Add-On Investment | November 7, 2024 | Green Intermediateco II, Inc.* | Cyber-security focused value-added reseller and associated service provider | $ | 3,607,117 | Senior Secured – First Lien | |||||
Add-On Investment | November 12, 2024 | Curion Holdings, LLC* | Provider of product testing and consumer insights | $ | 276,993 | Revolver Commitment | |||||
Add-On Investment | November 12, 2024 | Cerebro Buyer, LLC* | Manufacturer of single-use electrodes for medical procedures | $ | 510,498 | Delayed Draw Term Loan Commitment | |||||
Add-On Investment | November 12, 2024 | Service Minds Company, LLC* | Provider of residential electrical services | $ | 290,964 | Revolver Commitment | |||||
New Investment | November 14, 2025 | Spectra Confectionary Ltd. | Manufacturer and wholesaler of confectionary products | $ | 2,130,722 | Senior Secured – First Lien | |||||
$ | 119,320 | Equity | |||||||||
New Investment | November 15, 2024 | MBH Management, LLC | Outsourced provider of physician-focused staffing solutions for post-acute facilities | $ | 3,883,303 | Senior Secured – First Lien | |||||
$ | 1,337,795 | Delayed Draw Term Loan Commitment | |||||||||
$ | 772,104 | Revolver Commitment | |||||||||
$ | 370,083 | Equity | |||||||||
Add-On Investment | November 20, 2024 | Microbe Formulas LLC* | Provider of dietary supplements and other natural solutions for detox and gut health | $ | 1,897,964 | Senior Secured – First Lien | |||||
Add-On Investment | November 26, 2024 | Equine Network, LLC* | Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry | $ | 517,582 | Senior Secured – First Lien | |||||
$ | 141,279 | Revolver Commitment | |||||||||
Add-On Investment | December 2, 2024 | 2X LLC* | Provider of outsourced digital business-to-business marketing-as-a-service | $ | 1,758,929 | Senior Secured – First Lien | |||||
$ | 2,828,649 | Delayed Draw Term Loan Commitment | |||||||||
New Investment | December 4, 2024 | AMII Acquisition, LLC | Franchisor of ballroom dance studios | $ | 3,613,970 | Senior Secured – First Lien | |||||
$ | 556,928 | Revolver Commitment | |||||||||
$ | 63,758 | Equity | |||||||||
New Investment | December 9, 2024 | United States Drug Testing Laboratories, LLC | Provider of drug and alcohol forensic toxicology testing | $ | 1,563,778 | Senior Secured – First Lien | |||||
$ | 2,635,854 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,345,968 | Revolver Commitment | |||||||||
$ | 92,427 | Equity | |||||||||
New Investment | December 17, 2024 | iNovex Information Systems Inc. | Provider of government IT services | $ | 3,404,596 | Senior Secured – First Lien | |||||
$ | 1,369,930 | Revolver Commitment | |||||||||
New Investment | December 19, 2024 | Eskola, LLC | Provider of commercial re-roofing services | $ | 3,420,964 | Senior Secured – First Lien | |||||
$ | 4,602,158 | Revolver Commitment | |||||||||
$ | 500,573 | Equity | |||||||||
New Investment | December 20, 2024 | CEATI International, Inc.* | Provider of intellectual content, technical trade programs, research groups, and conferences for utility companies | $ | 3,076,296 | Senior Secured – First Lien | |||||
CombinedCaterers, Inc. | Provider of premium catering services in the Southeast | $ | 1,439,876 | Delayed Draw Term Loan Commitment | |||||||
$ | 1,119,158 | Revolver Commitment | |||||||||
$ | 285,351 | Equity | |||||||||
New Investment | December 30, 2024 | Tiger 21, LLC | Facilitator of peer-to-peer wealth focused insights and events for ultra-high net worth individuals | $ | 6,621,997 | Senior Secured – First Lien | |||||
$ | 1,513,228 | Revolver Commitment | |||||||||
$ | 376,429 | Equity | |||||||||
* Existing portfolio company |
The Company realized investments in the following portfolio company during the three months ended December 31, 2024:
Activity Type | Date | Company Name | Company Description | Proceeds Received | Instrument Type | ||||||
Full Repayment | November 4, 2024 | Baker Manufacturing Company, LLC* | Manufacturer of water well equipment, specialized filtration pumps, and custom castings | $ | 5,668,459 | Senior Secured – First Lien | |||||
* Existing portfolio company |
Events Subsequent to December 31, 2024
The Company's management has evaluated subsequent events through March 6, 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 December 31, 2024:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
New Investment | January 10, 2025 | Pacific Shoring Products, LLC | Manufacturer of trench shoring and safety equipment sold to equipment rental companies | $ | 5,327,581 | Senior Secured – First Lien | |||||
$ | 2,301,368 | Revolver Commitment | |||||||||
$ | 430,662 | Equity | |||||||||
New Investment | January 15, 2025 | Environmental Remedies, LLC | Residential asbestos abatement provider | $ | 3,317,957 | Senior Secured – First Lien | |||||
$ | 2,330,762 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,383,237 | Revolver Commitment | |||||||||
$ | 113,419 | Equity | |||||||||
New Investment | January 16, 2025 | Plus Delta Partners, Inc. | Provider of fundraising training and tools for higher education institutions and other nonprofits | $ | 3,955,716 | Senior Secured – First Lien | |||||
$ | 3,279,635 | Delayed Draw Term Loan Commitment | |||||||||
$ | 2,561,362 | Revolver Commitment | |||||||||
$ | 208,481 | Equity | |||||||||
New Investment | January 24, 2025 | Strategus, LLC | Provider of connected TV advertising services | $ | 6,013,663 | Senior Secured – First Lien | |||||
$ | 2,325,095 | Delayed Draw Term Loan Commitment | |||||||||
$ | 1,513,228 | Revolver Commitment | |||||||||
$ | 160,392 | Equity | |||||||||
New Investment | February 28, 2025 | Identity Theft Guard Solutions, Inc. | Cyber breach response and monitoring services | $ | 7,127,072 | Senior Secured – First Lien | |||||
$ | 1,092,978 | Revolver Commitment | |||||||||
$ | 330,747 | Equity | |||||||||
New Investment | February 28, 2025 | MoboTrex, LLC | Distributor and manufacturer of intelligent traffic solution equipment | $ | 2,092,568 | Senior Secured – First Lien | |||||
$ | 2,000,813 | Delayed Draw Term Loan Commitment | |||||||||
$ | 625,882 | Revolver Commitment | |||||||||
Credit Facilities
The outstanding balance under the Credit Facility and SPV Facility as of March 6, 2025 was $120.0 million and $50.0 million, respectively.
Distributions Declared
On January 9, 2025, our Board of Directors declared a regular monthly distribution for each of January, February and March 2025, as follows:
Record | Payment | Amount per | |||||
Declared | Date | Date | Share | ||||
1/9/2025 | 1/10/2025 | 1/31/2025 | $ | 0.1200 | |||
1/9/2025 | 2/3/2025 | 2/28/2025 | $ | 0.1200 | |||
1/9/2025 | 3/3/2025 | 3/31/2025 | $ | 0.1200 | |||
Sale of Unregistered Securities
Since December 31, 2024, the Company sold 97,535 common shares of beneficial interest at a price of $15.16 per share for aggregate proceeds of $1.5 million which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors.
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)) through first lien (including unitranche) loans and second lien loans, with corresponding equity co-investments. 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
[email protected]
STELLUS PRIVATE CREDIT BDC | ||||||
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | ||||||
December 31, 2024 | December 31, 2023 | |||||
ASSETS | ||||||
Non-controlled, non-affiliated investments, at fair value (amortized cost of $297,791,269 and $206,513,758, respectively) | $ | 300,732,065 | $ | 208,574,078 | ||
Cash and cash equivalents | 2,144,116 | 593,685 | ||||
Other receivable | 4,340 | — | ||||
Interest receivable | 1,367,849 | 1,495,581 | ||||
Expense reimbursement receivable from the Advisor (Note 2) | 161,473 | 126,539 | ||||
Deferred offering costs | 127,983 | 72,875 | ||||
Related party receivable | 2,004 | 162,455 | ||||
Prepaid expenses | 164,350 | 127,019 | ||||
Receivable for sales and repayments of investments | 86,896 | 71,105 | ||||
Total Assets | $ | 304,791,076 | $ | 211,223,337 | ||
LIABILITIES | ||||||
Credit Facilities payable | $ | 138,692,860 | $ | 97,031,517 | ||
Dividends payable | — | 3,551,068 | ||||
Unearned revenue | 921,629 | 897,538 | ||||
Management fees payable | 648,149 | — | ||||
Income incentive fee payable | 452,186 | 439,854 | ||||
Capital gains incentive fee payable | 306,229 | 261,684 | ||||
Interest payable | 613,821 | 367,093 | ||||
Administrative services payable | 109,027 | 124,958 | ||||
Income tax payable | 51,427 | 182,489 | ||||
Deferred tax liability | 259,455 | 167,865 | ||||
Other accrued expenses and liabilities | 348,413 | 177,249 | ||||
Total Liabilities | $ | 142,403,196 | $ | 103,201,315 | ||
Commitments and contingencies (Note 7) | ||||||
Net Assets | $ | 162,387,880 | $ | 108,022,022 | ||
NET ASSETS | ||||||
Common shares of beneficial interest, par value $0.01 per share (unlimited shares authorized; 10,715,095 and 7,102,136 issued and outstanding, respectively) | $ | 107,151 | $ | 71,021 | ||
Paid-in capital | 159,483,435 | 104,810,048 | ||||
Total distributable earnings | 2,797,294 | 3,140,953 | ||||
Net Assets | $ | 162,387,880 | $ | 108,022,022 | ||
Total Liabilities and Net Assets | $ | 304,791,076 | $ | 211,223,337 | ||
Net Asset Value Per Share | $ | 15.16 | $ | 15.21 | ||
STELLUS PRIVATE CREDIT BDC | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
Year Ended | |||||||||
December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||
INVESTMENT INCOME | |||||||||
Interest income | $ | 28,560,141 | $ | 22,760,669 | $ | 7,804,783 | |||
Other income | 478,544 | 601,776 | 152,173 | ||||||
Total Investment Income | $ | 29,038,685 | $ | 23,362,445 | $ | 7,956,956 | |||
OPERATING EXPENSES | |||||||||
Management fees | $ | 3,469,835 | $ | 2,833,601 | $ | 1,335,054 | |||
Income incentive fees | 2,602,793 | 2,097,153 | 686,398 | ||||||
Capital gains incentive fee | 44,545 | 261,684 | — | ||||||
Professional fees | 747,853 | 670,800 | 447,045 | ||||||
Organization costs | — | 1,000 | 90,184 | ||||||
Amortization of deferred offering costs | 225,050 | 165,937 | 240,152 | ||||||
Administrative services expenses | 523,823 | 417,573 | 226,489 | ||||||
Trustees' fees | 160,000 | 160,000 | 158,000 | ||||||
Insurance expense | 81,685 | 81,438 | 82,045 | ||||||
Valuation fees | 64,498 | 40,324 | 5,519 | ||||||
Interest expense and other fees | 9,505,536 | 8,225,528 | 2,312,701 | ||||||
Income tax expense | 32,183 | 44,925 | 7,471 | ||||||
Other general and administrative expenses | 262,575 | 142,294 | 120,343 | ||||||
Total Operating Expenses | $ | 17,720,376 | $ | 15,142,257 | $ | 5,711,401 | |||
Expenses reimbursed/fees waived by Investment Advisor (Note 2) | $ | (4,253,904) | $ | (4,101,044) | $ | (1,952,196) | |||
Net Operating Expenses | $ | 13,466,472 | $ | 11,041,213 | $ | 3,759,205 | |||
Net Investment Income | $ | 15,572,213 | $ | 12,321,232 | $ | 4,197,751 | |||
Net realized gain (loss) on non-controlled, non-affiliated investments | $ | — | $ | 841,075 | $ | — | |||
Net realized gain on foreign currency translation | 30,648 | 24,343 | 1,950 | ||||||
Provision for taxes on realized gain on investments | — | (142,988) | — | ||||||
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments | 906,234 | 2,566,523 | (538,883) | ||||||
Net change in unrealized (depreciation) appreciation on foreign currency translations | (25,757) | 11,719 | 20,961 | ||||||
Provision for taxes on net unrealized gain on investments | (91,591) | (167,865) | — | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 16,391,747 | $ | 15,454,039 | $ | 3,681,779 | |||
Net Investment Income Per Share – basic and diluted | $ | 1.80 | $ | 1.96 | $ | 1.08 | |||
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted | $ | 1.90 | $ | 2.46 | $ | 0.95 | |||
Weighted Average Common Shares of Beneficial Interest Outstanding – basic and diluted | 8,643,493 | 6,273,882 | 3,869,643 | ||||||
Distributions Per Share – basic and diluted | $ | 1.96 | $ | 1.88 | $ | 1.11 | |||
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, 2021 | — | $ | — | $ | — | $ | (532,845) | $ | (532,845) | |||||
Net investment income | — | — | — | 4,197,751 | 4,197,751 | |||||||||
Net realized gain on foreign currency translation | — | — | — | 1,950 | 1,950 | |||||||||
Net change in unrealized depreciation on non-controlled, non-affiliated investments | — | — | — | (538,883) | (538,883) | |||||||||
Net change in unrealized appreciation on foreign currency translations | — | — | — | 20,961 | 20,961 | |||||||||
Return of capital and other tax related adjustments | — | — | (388,214) | 388,214 | — | |||||||||
Distributions from net investment income | — | — | — | (4,279,870) | (4,279,870) | |||||||||
Issuance of common shares of beneficial interest | 5,483,433 | 54,834 | 81,339,059 | — | 81,393,893 | |||||||||
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 | |||||
STELLUS PRIVATE CREDIT BDC | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
For the years ended | |||||||||
December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||
Cash Flows from Operating Activities | |||||||||
Net increase in net assets resulting from operations | $ | 16,391,747 | $ | 15,454,039 | $ | 3,681,779 | |||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | |||||||||
Purchases of investments | (119,805,183) | (89,322,601) | (168,326,016) | ||||||
Proceeds from sales and repayments of investments | 30,250,267 | 42,260,585 | 10,474,408 | ||||||
Net change in unrealized (appreciation) depreciation on investments | (906,234) | (2,566,523) | 538,883 | ||||||
Net change in unrealized depreciation (appreciation) foreign currency translations | 25,757 | (11,719) | (20,961) | ||||||
Increase in investments due to PIK | (1,059,816) | (129,990) | — | ||||||
Amortization of premium and accretion of discount, net | (678,569) | (502,109) | (198,065) | ||||||
Deferred tax provision | 91,590 | 167,865 | — | ||||||
Amortization of loan structure fees | 306,387 | 586,127 | 478,626 | ||||||
Amortization of deferred offering costs | 225,050 | 165,937 | 240,152 | ||||||
Net realized gain on investments | — | (841,075) | — | ||||||
Changes in other assets and liabilities | |||||||||
Decrease (increase) in interest receivable | 127,732 | (465,307) | (1,030,274) | ||||||
Increase in other receivable | (4,340) | — | — | ||||||
Decrease (increase) in related party receivable | 160,451 | (152,835) | (9,620) | ||||||
(Increase) decrease in expense reimbursements receivable from the Advisor | (34,934) | 39,099 | (165,638) | ||||||
(Increase) decrease in prepaid expenses | (37,331) | 5,985 | (39,356) | ||||||
Decrease in due to affiliate | — | — | (460,085) | ||||||
Decrease in trustees' fees payable | — | — | (42,000) | ||||||
(Decrease) increase in administrative services payable | (15,931) | 58,894 | 66,064 | ||||||
Increase (decrease) in interest payable | 246,728 | (196,148) | 563,241 | ||||||
Increase in income management fees payable | 648,149 | — | — | ||||||
Increase in income incentive fees payable | 12,332 | 111,658 | 328,196 | ||||||
Increase in capital gains incentive fees payable | 44,545 | 261,684 | — | ||||||
Increase in unearned revenue | 24,091 | 357,904 | 539,634 | ||||||
(Decrease) increase in income tax payable | (131,062) | 175,018 | 7,471 | ||||||
Increase (decrease) in other accrued expenses and liabilities | 171,164 | 57,975 | (144,704) | ||||||
Net Cash Used in Operating Activities | $ | (73,947,410) | $ | (34,485,537) | $ | (153,518,265) | |||
Cash Flows from Financing Activities | |||||||||
Proceeds from issuance of common shares of beneficial interest | $ | 62,598,161 | $ | 24,073,114 | $ | 81,393,893 | |||
Offering costs paid for common shares of beneficial interest issued | (280,158) | (184,418) | (154,976) | ||||||
Purchase of common shares of beneficial interest in tender offer | (7,667,294) | — | — | ||||||
Stockholder distributions paid | (20,507,824) | (10,026,553) | (2,470,337) | ||||||
Borrowings under Credit Facilities | 184,300,000 | 169,750,000 | 124,762,500 | ||||||
Repayments of Credit Facilities | (141,850,000) | (152,365,000) | (44,147,500) | ||||||
Financing costs paid on Credit Facilities | (1,095,044) | (387,744) | (1,645,492) | ||||||
Short-term loan borrowings | — | 4,500,000 | 11,250,000 | ||||||
Short-term loan repayments | — | (15,750,000) | — | ||||||
Net Cash Provided by Financing Activities | $ | 75,497,841 | $ | 19,609,399 | $ | 168,988,088 | |||
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 1,550,431 | $ | (14,876,138) | $ | 15,469,823 | |||
Cash and Cash Equivalents Balance at Beginning of Period | 593,685 | 15,469,823 | — | ||||||
Cash and Cash Equivalents Balance at End of Period | $ | 2,144,116 | $ | 593,685 | $ | 15,469,823 | |||
Supplemental and Non-Cash Activities | |||||||||
Cash paid for interest expense | $ | 8,952,421 | $ | 7,835,549 | $ | 1,270,834 | |||
Income and excise tax paid | 163,245 | 12,895 | — | ||||||
Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan | 1,683,161 | 623,113 | 43,894 | ||||||
(Decrease) increase in dividends payable | (3,551,068) | 1,741,535 | 1,809,533 | ||||||
SOURCE Stellus Private Credit BDC
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