HOUSTON, Nov. 14, 2025 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its third fiscal quarter ended September 30, 2025.
Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated "We are pleased to report solid operating results in the third quarter in which we generated $0.36 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $43 million of investments and received $7 million of repayments, bringing the total portfolio to $376 million at fair value. On October 21, 2025, we declared our 2025 fourth 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
------------------------------------------
September 30, 2025 September 30, 2024
Amount Per Share Amount Per Share
-------- ---------- -------- ----------
Net investment income $3.98 $0.36 $4.66 $0.49
Net realized gain on
investments 0.02 -- -- --
Net unrealized appreciation
included in earnings (0.17) (0.01) (0.40) (0.04)
Provision for taxes on net
unrealized appreciation on
investments (0.05) (0.01) (0.01) --
Net increase in net assets
resulting from operations $3.78 $0.34 $4.25 $0.45
Distributions (4.23) (0.38) (4.74) (0.50)
Other weighted average share
adjustments(1) -- 0.01 -- --
Net asset value $188.78 $15.26 $142.20 $15.14
Weighted average shares
outstanding 11,123,004 9,456,180
____________________________
(1) Includes the impact of different share amounts as a result of calculating
certain per share data based on weighted average shares outstanding
during the period and certain per share data based on shares outstanding
as of the period end.
PORTFOLIO ACTIVITY
---------------------------------
($ in millions)
As of As of
September 30, 2025 December 31, 2024
------------------ ------------------
Investments at fair value $376.4 $300.7
Total assets $384.8 $304.8
Net assets $188.8 $162.4
Shares outstanding 12,371,428 10,715,095
Net asset value per share $15.26 $15.16
Three Months Ended
--------------------------------------
September 30, 2025 September 30, 2024
------------------ ------------------
New investments $42.7 $9.0
Repayments of investments (6.8) (6.6)
------------------ ------------------
Net activity $35.9 $2.4
As of As of
September 30, 2025 December 31, 2024
------------------ ------------------
Number of portfolio company
investments 72 59
Number of debt investments 68 55
Weight average yield of debt and
other income producing
investments(2)
Cash 9.8 % 10.2 %
Payment-in-kind ("PIK") 0.1 % 0.2 %
Fee amortization 0.4 % 0.4 %
------------------ ------------------
Total 10.3 % 10.8 %
Weighted average yield on total
investments(3)
Cash 9.4 % 9.8 %
PIK 0.1 % 0.2 %
Fee amortization 0.3 % 0.3 %
------------------ ------------------
Total 9.8 % 10.3 %
____________________________
(2) The dollar-weighted average annualized effective yield is computed using
the effective interest rate for the Company's debt investments and other
income producing investments, including cash and PIK interest, as well as
the accretion of deferred fees. The individual investment yields are then
weighted by the respective cost of the investments (as of the date
presented) in calculating the weighted average effective yield of the
portfolio. The dollar-weighted average annualized yield on the Company's
investments for a given period will generally be higher than what
investors of our common stock would realize in a return over the same
period because the dollar-weighted average annualized yield does not
reflect the Company's expense or any sales load that may be paid by
investors.
(3) The dollar weighted average yield on total investments takes the same
yields as calculated in the footnote above, but weights such yields to
determine the weighted average effective yield as a percentage of the
Company's total investments, including non-income producing equity
positions and debt investments on non-accrual status.
Results of Operations
Investment income for the three months ended September 30, 2025 and 2024 totaled $9.4 million and $7.9 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended September 30, 2025 and 2024 totaled $6.1 million and $4.6 million, respectively. For the same periods, base management fees totaled $1.3 million and $0.9 million, income incentive fees totaled $0.7 million and $0.8 million, respectively; capital gains incentive fees (reversals) of ($0.0) million and less than ($0.01) million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.6 million and $2.5 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 $0.3 million and $0.4 million, respectively. For the three months ended September 30, 2025 and 2024, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.4 million and $0.9 million of management fees, respectively; $0.3 million of income incentive fees for both periods (waived as our shares were not listed on a national exchange), and less than $0.1 million and $0.1 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.4 million and $3.3 million, respectively.
For the three months ended September 30, 2025 and 2024, net investment income was $4.0 million and $4.7 million, or $0.36 and $0.49 per common share based on weighted average common shares outstanding of 11,123,004 and 9,456,180, respectively.
The Company's investment portfolio had a net change in unrealized appreciation of ($0.2) million and ($0.4) million for the three months ended September 30, 2025 and 2024, respectively.
For the three months ended September 30, 2025 and 2024, net increase in net assets resulting from operations totaled $3.8 million and $4.2 million, or $0.34 and $0.45 per common share, based on weighted average common shares outstanding of 11,123,004 and 9,456,180, 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 September 30, 2025 and December 31, 2024, the Company had $145.1 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") 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 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 September 30, 2025 and December 31, 2024, the Company had $50.0 million in outstanding borrowings under the SPV Facility.
The Company sold 382,821 common shares of beneficial interest at a weighted-average price of $15.29 per share for aggregate net proceeds of $5.9 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 September 30, 2025. Additionally, for the nine months ended September 30, 2024, 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 981,034 common shares of beneficial interest at a price of $15.29 per share. Lastly, the Company purchased 141,270 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended September 30, 2025 at a price equal to $15.29 per Share for an aggregate purchase price of approximately $2.2 million.
Distributions
During the three months ended September 30, 2025 and 2024, the Company declared aggregate distributions of $0.38 per share and $0.50, respectively (million and $4.2 million and $4.7 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 September 30, 2025:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ---------- ------------- --------------- ----------- -----------
Hosts
competitions
and provides
services for
Equine the U.S. Senior
Add-On July 28, Network, equine Secured --
Investment 2025 LLC* industry $ 958,256 First Lien
New July 31, The Millennium Facilitator $ 5,280,193 Senior
Investment 2025 Alliance, of Secured --
LLC peer-to-peer First Lien
events
connecting
companies
with
technology
solution
providers
$ 1,341,001 Revolver
Commitment
$ 294,275 Equity
New July 31, Elder Care Provider of $ 3,485,935 Senior
Investment 2025 Opco LLC homecare Secured --
services First Lien
$ 3,697,074 Delayed
Draw Term
Loan
Commitment
$ 1,259,737 Revolver
Commitment
$ 740,592 Equity
Add-On August 4, Guidant Corp.* Provider of $ 50,673 Equity
Investment 2025 liquid
metering
products and
integrated
solutions to
the energy
infrastructu
re sector
Add-On August 5, MedLearning Provider of $ 3,414,406 Senior
Investment 2025 Group, LLC* continuing Secured --
medical First Lien
education
services
New August 22, DMD Systems Provider of $ 1,533,888 Senior
Investment 2025 Recovery, IT asset Secured --
LLC disposition First Lien
services
$ 4,070,703 Delayed
Draw Term
Loan
Commitment
$ 1,368,939 Revolver
Commitment
$ 174,338 Equity
Add-On August 29, Compost 360 Organic waste $ 22,950 Equity
Investment 2025 Acquisition, recycler and
LLC* producer of
compost,
mulch, and
engineered
soils
New September Champion Provider of $ 7,822,508 Senior
Investment 19, 2025 Services commercial Secured --
Acquireco re-roofing First Lien
LLC and
restoration
services
$ 1,368,939 Revolver
Commitment
$ 204,254 Equity
New September DFO Manufacturer $ 7,358,000 Senior
Investment 22, 2025 Enterprises, of fiber Secured --
LLC optic cable First Lien
assembly
equipment,
consumables,
and
precision
components
$ 1,742,096 Revolver
Commitment
$ 321,180 Equity
____________________________
* Existing portfolio company
Events Subsequent to September 30, 2025
The Company's management has evaluated subsequent events through November 14, 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 September 30, 2025:
Activity Type Date Company Name Company Description Investment Amount Instrument Type
-------------- --------- ------------- -------------------- ------------------- ---------------
Provider of
patient safety,
clinical risk
mitigation, and
The healthcare
Add-On October 1, Hardenbergh compliance Senior Secured
Investment 2025 Group, Inc.* solutions $ 1,241,645 -- First Lien
New Investment October Fidus Systems Provider of $ 3,023,836 Senior Secured
17, 2025 Inc. outsourced -- First Lien
electronic
product
development and
engineering
services
$ 2,015,890 Delayed Draw
Term Loan
Commitment
$ 1,446,825 Revolver
Commitment
$ 216,218 Equity
Add-On November Mobotrex Distributor and $ 1,435,403 Senior Secured
Investment 6, 2025 Acquisition, manufacturer of -- First Lien
LLC* intelligent
traffic solution
equipment
$ 1,668,789 Delayed Draw
Term Loan
Commitment
$ 461,751 Revolver
Commitment
____________________________
* Existing portfolio company
The Company realized the following portfolio companies subsequent to September 30, 2025:
Activity Company Company Proceeds Realized Instrument
Type Date Name Description Received Gain Type
------------ -------- ---------- ------------- ---------- --------- -----------
End-to-end
informatio
n
Heartland technologi
Business es Senior
Full October Systems, solutions Secured --
Repayment 1, 2025 LLC provider $3,122,393 $ -- First Lien
Delayed
Draw Term
$3,241,539 $ -- Loan
Full Realization $ 452,671 $ 360,253 Equity
Credit Facilities
On October 2, 2025, the "Company entered into Amendment No. 2 to Loan Financing and Servicing Agreement (the "Second Amendment"), by and among Stellus SPV, as borrower (the "Borrower"), the Company, as servicer, Deutsche Bank, as facility agent, agent and a committed lender, which amends that certain Loan Agreement. ). The Second Amendment amended the Loan Agreement to, among other things, (i) increase the commitment from $50.0 million to $75.0 million, (ii) reduce the applicable margin rate on advances under the Loan Agreement to a range of 2.00% to 2.35%, (iii) extend the revolving period to October 2, 2028, and (iv) extend the maturity date to October 2, 2031.
As of November 14, 2025, the outstanding balances under the Credit Facility and SPV Facility were $117.3 million and $75.0 million, respectively.
Distributions Declared
On October 21, 2025 the Board declared a regular monthly dividend for each of October 2025, November 2025, and December 2025 as follows:
Record Payment Amount per
Declared Date Date Share
----------- ----------- ----------- ------------
10/21/2025 10/22/2025 10/31/2025 $ 0.1200
10/21/2025 11/3/2025 11/28/2025 $ 0.1200
10/21/2025 12/1/2025 12/31/2025 $ 0.1200
Sale of Unregistered Securities
Since September 30, 2025, the Company sold 158,404 common shares of beneficial interest at a price of $15.26 per share for aggregate net proceeds of $2.4 million which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors.
Share Repurchases
Since September 30, 2025, 176,879 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer. The Company purchased all common shares of beneficial interest validly tendered and not withdrawn at a price equal to $15.25 per share for an aggregate purchase price of $2.7 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
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2025
(unaudited) December 31, 2024
-------------------- -------------------
ASSETS
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of
$371,417,536 and
$297,791,269, respectively) $ 376,434,763 $ 300,732,065
Cash and cash equivalents 6,386,635 2,144,116
Other receivable 14,778 4,340
Interest receivable 1,774,269 1,367,849
Expense reimbursement
receivable from the Advisor
(Note 2) 1,615 161,473
Deferred offering costs 57,662 127,983
Related party receivable -- 2,004
Prepaid expenses 50,024 164,350
Receivable for sales and
repayments of investments 123,415 86,896
---------------- ---------------
Total Assets $ 384,843,161 $ 304,791,076
---------------- ---------------
LIABILITIES
Credit Facilities payable $ 191,655,862 $ 138,692,860
Unearned revenue 1,197,734 921,629
Management fees payable 855,941 648,149
Income incentive fee payable 475,545 452,186
Capital gains incentive fee
payable 559,652 306,229
Interest payable 711,239 613,821
Administrative services
payable 162,970 109,027
Income tax payable 56,752 51,427
Deferred tax liability 272,073 259,455
Other accrued expenses and
liabilities 120,102 348,413
---------------- ---------------
Total Liabilities $ 196,067,870 $ 142,403,196
---------------- ---------------
Commitments and contingencies
(Note 7)
---------------- ---------------
Net Assets $ 188,775,291 $ 162,387,880
================ ===============
NET ASSETS
Common shares of beneficial
interest, par value $0.01 per
share (unlimited shares
authorized; 12,371,428 and
10,715,095 issued and
outstanding, respectively) $ 123,714 $ 107,151
Paid-in capital 184,807,352 159,483,435
Total distributable earnings 3,844,225 2,797,294
---------------- ---------------
Net Assets $ 188,775,291 $ 162,387,880
---------------- ---------------
Total Liabilities and Net
Assets $ 384,843,161 $ 304,791,076
---------------- ---------------
Net Asset Value Per Share $ 15.26 $ 15.16
================ ===============
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended
------------------------------------------ ------------------------------------------
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
-------------------- -------------------- -------------------- --------------------
INVESTMENT INCOME
Interest income $ 9,206,005 $ 7,800,382 $ 25,648,553 $ 20,954,358
Other income 191,610 132,962 539,155 328,683
---------------- --- --------------- ---------------- --- ---------------
Total Investment
Income $ 9,397,615 $ 7,933,344 $ 26,187,708 $ 21,283,041
---------------- --- --------------- ---------------- --- ---------------
OPERATING
EXPENSES
Management fees $ 1,283,911 $ 896,304 $ 3,515,843 $ 2,497,611
Income incentive
fees 652,037 756,668 1,856,151 1,997,539
Capital gains
incentive
(reversal) fee (19,310) (124,713) 253,423 (94,639)
Professional fees 140,297 156,396 522,135 481,328
Amortization of
deferred
offering costs 49,099 61,701 182,080 157,083
Administrative
services
expenses 192,550 135,018 493,733 379,067
Trustees' fees 40,000 40,000 120,000 120,000
Insurance expense 22,370 20,418 66,380 60,811
Valuation fees 47,004 31,965 89,613 60,683
Interest expense
and other fees 3,621,996 2,496,503 9,879,767 6,884,954
Income tax
expense 17,218 -- 34,325 29,274
Other general and
administrative
expenses 65,841 75,218 211,196 196,063
---------------- --- --------------- ---------------- --- ---------------
Total Operating
Expenses $ 6,113,013 $ 4,545,478 $ 17,224,646 $ 12,769,774
---------------- --- --------------- ---------------- --- ---------------
Expenses
reimbursed/fees
waived by
Advisor (Note
2) $ (691,899) $ (1,276,857) $ (1,965,389) $ (3,566,605)
---------------- --- --------------- ---------------- --- ---------------
Net Operating
Expenses $ 5,421,114 $ 3,268,621 $ 15,259,257 $ 9,203,169
---------------- --- --------------- ---------------- --- ---------------
Net Investment
Income $ 3,976,501 $ 4,664,723 $ 10,928,451 $ 12,079,872
================ === =============== ================ === ===============
Net realized gain
on
non-controlled,
non-affiliated
investments $ -- $ -- $ 67,495 $ --
Net realized gain
on foreign
currency
translation $ 22,420 $ 5,522 28,839 20,367
Net change in
unrealized
(depreciation)
appreciation on
non-controlled,
non-affiliated
investments (160,661) (424,614) 2,044,676 (508,252)
Net change in
unrealized
(depreciation)
appreciation on
foreign currency
translations (3,977) 20,336 31,755 7,167
Provision for
taxes on net
unrealized gain
on investments (50,884) (19,791) (12,618) (15,993)
---------------- --- --------------- ---------------- --- ---------------
Net Increase in
Net Assets
Resulting from
Operations $ 3,783,399 $ 4,246,176 $ 13,088,598 $ 11,583,161
================ === =============== ================ === ===============
Net Investment
Income Per Share
-- basic and
diluted $ 0.36 $ 0.49 $ 1.00 $ 1.45
================ === =============== ================ === ===============
Net Increase in
Net Assets
Resulting from
Operations Per
Share -- basic
and diluted $ 0.34 $ 0.45 $ 1.20 $ 1.39
================ === =============== ================ === ===============
Weighted Average
Common Shares of
Beneficial
Interest
Outstanding --
basic and
diluted 11,123,004 9,456,180 10,943,242 8,335,421
---------------- --- --------------- ---------------- --- ---------------
Distributions Per
Share -- basic
and diluted $ 0.38 $ 0.50 $ 1.10 $ 1.49
================ === =============== ================ === ===============
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, 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
investments -- -- -- 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
investments -- -- -- (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
=========== ======= =========== =========== ===========
Net investment
income -- -- -- 4,664,723 4,664,723
Net realized gain on
foreign currency
translation -- -- -- 5,522 5,522
Net change in
unrealized
depreciation on
non-controlled,
non-affiliated
investments -- -- -- (424,614) (424,614)
Net change in
unrealized
appreciation on
foreign currency
translations -- -- -- 20,336 20,336
Provision for taxes
on net unrealized
gain on
investments -- -- -- (19,791) (19,791)
Distributions from
net investment
income -- -- -- (4,740,785) (4,740,785)
Issuance of common
shares of
beneficial
interest 377,534 3,776 5,751,834 -- 5,755,610
Redemption of common
shares of
beneficial
interest (373,094) (3,731) (5,663,574) -- (5,667,305)
----------- ------- ----------- ----------- -----------
Balances at
September 30, 2024 9,394,977 $ 93,950 $139,835,601 $ 2,297,031 $142,226,582
=========== ======= =========== =========== ===========
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
=========== ======= =========== =========== ===========
Net investment
income -- -- -- 3,976,501 3,976,501
Net realized gain on
foreign currency
translation -- -- -- 22,420 22,420
Net change in
unrealized
depreciation on
non-controlled,
non-affiliated
investments -- -- -- (160,661) (160,661)
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (3,977) (3,977)
Provision for taxes
on net unrealized
gain on
investments -- -- -- (50,884) (50,884)
Distributions from
net investment
income -- -- -- (4,225,502) (4,225,502)
Issuance of common
shares of
beneficial
interest 1,385,629 13,856 21,198,080 -- 21,211,936
Redemption of common
shares of
beneficial
interest (141,270) (1,413) (2,158,606) -- (2,160,019)
----------- ------- ----------- ----------- -----------
Balances at
September 30, 2025 12,371,428 $123,714 $184,807,352 $ 3,844,225 $188,775,291
=========== ======= =========== =========== ===========
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended
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September 30, 2025 September 30, 2024
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Cash Flows from Operating
Activities
Net increase in net assets
resulting from operations $ 13,088,598 $ 11,583,161
Adjustments to reconcile net
increase in net assets from
operations to net cash used in
operating activities:
Purchases of investments (93,853,701) (67,038,045)
Proceeds from sales and
repayments of investments 21,248,780 19,584,247
Net change in unrealized
(appreciation) depreciation on
investments (2,044,676) 508,252
Net change in unrealized
appreciation foreign currency
translations (31,755) (7,167)
Increase in investments due to
PIK (253,297) (671,421)
Amortization of premium and
accretion of discount, net (737,073) (482,032)
Deferred tax provision 12,618 15,992
Amortization of loan structure
fees 434,698 231,435
Amortization of deferred
offering costs 182,080 157,083
Net realized gain on
investments (67,495) --
Changes in other assets and
liabilities
Increase in interest receivable (406,420) (311,511)
Increase in other receivable (10,438) (144,561)
Decrease in related party
receivable 2,004 159,206
Decrease (increase) in expense
reimbursements receivable from
the Advisor 159,858 (1,791)
Decrease in prepaid expenses 114,326 74,874
Increase in related party
payable -- 51,719
Increase (decrease) in
administrative services
payable 53,943 (11,244)
Increase in interest payable 97,418 534,959
Increase in income management
fees payable 207,792 --
Increase in income incentive
fees payable 23,359 92,632
Increase (decrease) in capital
gains incentive fees payable 253,423 (94,639)
Increase (decrease) in unearned
revenue 276,105 (157,651)
Increase (decrease) in income
tax payable 5,325 (130,720)
(Decrease) increase in other
accrued expenses and
liabilities (228,311) 343,542
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Net Cash Used in Operating
Activities $ (61,472,839) $ (35,713,680)
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Cash Flows from Financing
Activities
Proceeds from issuance of
common shares of beneficial
interest $ 27,843,250 $ 40,715,787
Offering costs paid for common
shares of beneficial interest
issued (111,759) (200,160)
Purchase of common shares of
beneficial interest in tender
offer (2,502,770) (5,667,305)
Stockholder distributions paid (12,041,667) (15,978,151)
Borrowings under Credit
Facilities 98,050,000 131,300,000
Repayments of Credit Facilities (43,450,000) (110,700,000)
Financing costs paid on Credit
Facilities (2,071,696) (832,155)
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Net Cash Provided by Financing
Activities $ 65,715,358 $ 38,638,016
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Net Increase in Cash and Cash
Equivalents $ 4,242,519 $ 2,924,336
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Cash and Cash Equivalents
Balance at Beginning of Period 2,144,116 593,685
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Cash and Cash Equivalents
Balance at End of Period $ 6,386,635 $ 3,518,021
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Supplemental and Non-Cash
Activities
Cash paid for interest expense $ 9,347,651 $ 6,118,560
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 1,185,787
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SOURCE Stellus Private Credit BDC
(END) Dow Jones Newswires
November 14, 2025 16:04 ET (21:04 GMT)