HOUSTON, May 10, 2024
/PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC" or the
"Company") today announced financial results for its first fiscal
quarter ended March 31, 2024.
Robert T. Ladd, Chief Executive
Officer of Stellus PBDC, stated "We are pleased to report strong
results in the first quarter in which we generated $0.49 per share of net investment income and
increased net asset value. During the quarter, we funded
$17 million of investments and
received $9 million of repayments,
bringing the total portfolio to $216
million at fair value. Following the end of the quarter, on
April 3, 2024, we declared our 2024
second quarter monthly dividend of $0.50 per share in the aggregate which represents
an annualized dividend yield of approximately 13%."
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
($ in millions, except
data relating to per share amounts and shares
outstanding)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2024
|
|
March 31, 2023
|
|
|
Amount
|
Per
Share
|
|
Amount
|
Per
Share
|
|
Net investment
income
|
|
$3.55
|
$0.49
|
|
$2.64
|
$0.48
|
|
Net unrealized gain
(loss) included in earnings
|
|
0.33
|
0.04
|
|
(0.06)
|
(0.01)
|
|
Benefit for taxes on
net unrealized depreciation on investments
|
|
0.05
|
0.01
|
|
—
|
—
|
|
Net increase in net
assets resulting from operations
|
|
$3.93
|
$0.54
|
|
$2.58
|
$0.47
|
|
Distributions
|
|
(3.61)
|
(0.50)
|
|
(2.31)
|
(0.42)
|
|
Other weighted average
share adjustments(1)
|
|
—
|
0.01
|
|
—
|
(0.01)
|
|
Net asset
value
|
|
112.2
|
$15.26
|
|
108.0
|
$14.68
|
|
Weighted average shares
outstanding
|
|
|
7,227,206
|
|
|
5,501,765
|
|
__________________________
|
|
(1)
|
Includes the impact of
different share amounts as a result of calculating certain per
share data based on weighted average shares outstanding during the
period and certain per share data based on shares outstanding as of
the period end.
|
|
PORTFOLIO
ACTIVITY
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
March 31, 2024
|
|
December 31, 2023
|
|
Investments at fair
value
|
|
$216.3
|
|
$208.6
|
|
Total assets
|
|
$219.0
|
|
$211.2
|
|
Net assets
|
|
$112.2
|
|
$108.0
|
|
Shares
outstanding
|
|
7,358,038
|
|
7,102,136
|
|
Net asset value per
share
|
|
$15.26
|
|
$15.21
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31, 2024
|
|
March 31, 2023
|
|
New
investments
|
|
$16.6
|
|
$17.1
|
|
Repayments of
investments
|
|
(9.4)
|
|
(9.9)
|
|
Net activity
|
|
$7.2
|
|
$7.2
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
March 31, 2024
|
|
December 31, 2023
|
|
Number of portfolio
company investments
|
|
41
|
|
39
|
|
Number of debt
investments
|
|
39
|
|
37
|
|
|
|
|
|
|
Weight average yield of
debt and other income producing investments
(2)
|
|
Cash
|
|
11.7 %
|
|
11.8 %
|
|
Payment-in-kind
("PIK")
|
|
0.3 %
|
|
0.3 %
|
|
Fee
amortization
|
|
0.4 %
|
|
0.4 %
|
|
Total
|
|
12.4 %
|
|
12.5 %
|
|
|
|
|
|
|
Weighted average yield
on total investments (3)
|
|
Cash
|
|
11.1 %
|
|
11.2 %
|
|
Payment-in-kind
("PIK")
|
|
0.4 %
|
|
0.3 %
|
|
Fee
amortization
|
|
0.4 %
|
|
0.4 %
|
|
Total
|
|
11.9 %
|
|
11.9 %
|
|
_____________________________
|
|
(2)
|
The dollar-weighted
average annualized effective yield is computed using the effective
interest rate for our 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 loans and
equity.
|
Results of Operations
Investment income for the three months ended March 31, 2024 and 2023 totaled $6.4 million and $4.9
million, respectively, most of which was interest income
from portfolio investments.
Gross operating expenses for the three months ended March 31, 2024 and 2023 totaled $4.1 million and $3.3
million, respectively. For the same periods, base management
fees totaled $0.8 million and
$0.6 million, income incentive fees
totaled $0.6 million and $0.5 million, capital gains incentive fees of
less than $0.1 million and
$0.0 million, which are not currently
payable, fees and expenses related to our borrowings totaled
$2.1 million and $1.7 million, respectively (including interest
and amortization of deferred financing costs), administrative
expenses totaled $0.1 million and
$0.1 million, other expenses totaled
$0.4 million and $0.4 million. For the three months ended
March 31, 2024 and 2023, the
Company's investment advisor, Stellus Private BDC Advisor, LLC (the
"Advisor"), waived $0.8 million and
$0.6 million of management fees
(voluntarily waived until October 1,
2024), $0.2 million and
$0.2 million of income incentive fees
(waived as our shares were not listed on a national exchange), and
$0.2 million and $0.2 million of expenses pursuant to expense
support and conditional reimbursements from the Advisor for net
operating expenses of $2.9 million
and $2.3 million, respectively.
For the three months ended March 31,
2024 and 2023, net investment income was $3.6
million and $2.6 million,
or $0.49 and $0.48 per common share based on
weighted average common shares outstanding of 7,227,206 and
5,501,765, respectively.
The Company's investment portfolio had a net change in
unrealized appreciation (depreciation) of $0.3 million and ($0.1)
million for the three months ended March 31, 2024 and 2023, respectively.
For the three months ended March 31,
2024 and 2023, net increase in net assets resulting from
operations totaled $3.9 million and $2.6 million,
or $0.54 and $0.47 per common share, based on
weighted average common shares outstanding of 7,227,206 and
5,501,765, 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 $150.0
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 March 31,
2024 and December 31, 2023,
the Company had $105.3 million and
$98.0 million in outstanding
borrowings under the Credit Facility.
Recent Portfolio Activity
The Company invested in the following portfolio companies for
the three months ended March 31,
2024:
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Investment
Amount
|
|
Instrument
Type
|
|
Add-On
Investment
|
|
January 9,
2024
|
|
Morgan Electrical
Group
Intermediate Holdings, Inc.*
|
|
Provider of commercial
electrical services
|
|
$
|
12,854
|
|
Senior Secured – First
Lien
|
|
Add-On
Investment
|
|
January 12,
2024
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and plumbing
services provider
|
|
$
|
28,813
|
|
Equity
|
|
Add-On
Investment
|
|
January 31,
2024
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and plumbing
services provider
|
|
$
|
12,637
|
|
Equity
|
|
Add-On
Investment
|
|
March 1,
2024
|
|
Monitorus Holding,
LLC*
|
|
Provider of media
monitoring and evaluation
services
|
|
$
|
38,984
|
|
Unsecured Convertible
Bond
|
|
New
Investment
|
|
March 11,
2024
|
|
Exec Connect
Intermediate LLC
|
|
Facilitator of
executive-level in-person events and
remote peer-to-peer industry insights
|
|
$
|
1,746,286
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
254,005
|
|
Delayed Draw Term Loan
Commitment
|
|
|
|
|
|
|
|
|
$
|
158,753
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
77,109
|
|
Equity
|
|
New
Investment
|
|
March 11,
2024
|
|
Titan Meter Bidco
Corp.
|
|
Provider of liquid
metering products and integrated
solutions to the energy infrastructure sector
|
|
$
|
7,696,671
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
810,176
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
395,667
|
|
Equity
|
|
New
Investment
|
|
March 26,
2024
|
|
Med Learning Group,
LLC
|
|
Provider of continuing
medical education services
|
|
$
|
3,636,170
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
990,355
|
|
Delayed Draw Term Loan
Commitment
|
|
____________________________
|
|
* Existing portfolio
company
|
The Company realized investments in the following portfolio
companies for the three months ended March
31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Proceeds
Received
|
|
Instrument
Type
|
|
Full
Repayment
|
|
January 8,
2024
|
|
Peltram Plumbing
Holdings, LLC*
|
|
Provider of plumbing
solutions.
|
|
$
|
6,818,700
|
|
Senior Secured – First
Lien
|
|
____________________________
|
|
* Existing portfolio
company
|
Events Subsequent to March 31,
2024
The Company's management has evaluated subsequent events through
May 10, 2024. 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 March 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity Type
|
|
Date
|
|
Company Name
|
|
Company Description
|
|
Investment Amount
|
|
Instrument Type
|
|
New
Investment
|
|
April 1,
2024
|
|
FairWave Holdings,
LLC
|
|
Specialty coffee
platform
|
|
$
|
3,084,350
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
1,079,522
|
|
Delayed Draw Term Loan
Commitment
|
|
|
|
|
|
|
|
|
$
|
462,652
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
115,663
|
|
Equity
|
|
New
Investment
|
|
April 11,
2024
|
|
WER Holdings,
LLC
|
|
Regional provider of
commercial landscaping
services
|
|
$
|
1,099,727
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
544,419
|
|
Delayed Draw Term Loan
Commitment
|
|
|
|
|
|
|
|
|
$
|
163,326
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
73,300
|
|
Equity
|
|
Add-On
Investment
|
|
April 16,
2024
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and
plumbing services provider
|
|
$
|
5,055
|
|
Equity
|
|
New
Investment
|
|
May 10, 2024
|
|
Luxium Solutions,
LLC
|
|
Manufacturer and
distributor of high-
performance advanced materials and assemblies
|
|
$
|
3,372,885
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
488,117
|
|
Delayed Draw Term Loan
Commitment
|
|
____________________________
|
|
* Existing portfolio
company
|
Credit Facility
The outstanding balance under the Credit Facility as of
May 10, 2024 was $108.3 million.
Distributions Declared
On April 3, 2024, our Board of
Directors declared a regular monthly distribution for each of
April 2024, May 2024, and June
2024, as follows:
|
|
|
|
|
|
|
|
|
|
Record
|
|
Payment
|
|
Amount
per
|
|
Declared
|
|
Date
|
|
Date
|
|
Share
|
|
4/3/2024
|
|
4/5/2024
|
|
4/30/2024
|
|
$
|
0.1666
|
|
4/3/2024
|
|
5/1/2024
|
|
5/31/2024
|
|
$
|
0.1666
|
|
4/3/2024
|
|
6/1/2024
|
|
6/28/2024
|
|
$
|
0.1666
|
Sale of Unregistered Securities
Since March 31, 2024, the Company
sold 414,531 common shares of beneficial interest at a price of
$15.26 per share for aggregate
proceeds of $6,325,743, which
included $24,257 of organizational
expense allocation pursuant to subscription agreements entered into
between the Company and investors.
Since March 31, 2024, the Company
also issued 11,915 common shares of beneficial interest for
aggregate proceeds of $181,535 under
the DRIP.
On May 7, 2024, Stellus Private
Credit BDC (the "Company") delivered a capital drawdown notice to
its investors relating to the sale of 1,310,616 common shares of
beneficial interest (the "Shares") of the Company for an aggregate
offering price of $20,000,000. No
underwriting discounts or commissions have been or will be paid in
connection with the sale of the Shares. The sale of the Shares is
expected to close on or about May 21,
2024.
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 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
thuskinson@stelluscapital.com
|
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES
|
|
|
|
March 31, 2024
|
|
|
|
|
|
(unaudited)
|
|
December 31, 2023
|
|
ASSETS
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments, at fair value (amortized cost of
$213,929,910 and $206,513,758, respectively)
|
|
$
|
216,314,810
|
|
$
|
208,574,078
|
|
Cash and cash
equivalents
|
|
|
297,635
|
|
|
593,685
|
|
Interest
receivable
|
|
|
1,856,236
|
|
|
1,495,581
|
|
Expense reimbursement
receivable from the Advisor (Note 2)
|
|
|
197,775
|
|
|
126,539
|
|
Deferred offering
costs
|
|
|
72,876
|
|
|
72,875
|
|
Related party
receivable
|
|
|
36,625
|
|
|
162,455
|
|
Prepaid
expenses
|
|
|
132,405
|
|
|
127,019
|
|
Receivable for sales
and repayments of investments
|
|
|
121,176
|
|
|
71,105
|
|
Total
Assets
|
|
$
|
219,029,538
|
|
$
|
211,223,337
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Credit Facilities
payable
|
|
$
|
104,425,625
|
|
$
|
97,031,517
|
|
Dividends
payable
|
|
|
—
|
|
|
3,551,068
|
|
Unearned
revenue
|
|
|
784,484
|
|
|
897,538
|
|
Income incentive fee
payable
|
|
|
407,007
|
|
|
439,854
|
|
Capital gains incentive
fee payable
|
|
|
299,574
|
|
|
261,684
|
|
Interest
payable
|
|
|
348,640
|
|
|
367,093
|
|
Administrative services
payable
|
|
|
118,005
|
|
|
124,958
|
|
Income tax
payable
|
|
|
149,085
|
|
|
182,489
|
|
Deferred tax
liability
|
|
|
121,980
|
|
|
167,865
|
|
Other accrued expenses
and liabilities
|
|
|
127,817
|
|
|
177,249
|
|
Total
Liabilities
|
|
$
|
106,782,217
|
|
$
|
103,201,315
|
|
Commitments and
contingencies (Note 7)
|
|
|
|
|
|
|
|
Net
Assets
|
|
$
|
112,247,321
|
|
$
|
108,022,022
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common shares of
beneficial interest, par value $0.01 per share (unlimited
shares
authorized; 7,358,038 and 7,102,136 issued and outstanding,
respectively)
|
|
$
|
73,580
|
|
$
|
71,021
|
|
Paid-in
capital
|
|
|
108,711,728
|
|
|
104,810,048
|
|
Total distributable
earnings
|
|
|
3,462,013
|
|
|
3,140,953
|
|
Net
Assets
|
|
$
|
112,247,321
|
|
$
|
108,022,022
|
|
Total Liabilities
and Net Assets
|
|
$
|
219,029,538
|
|
$
|
211,223,337
|
|
Net Asset Value Per
Share
|
|
$
|
15.26
|
|
$
|
15.21
|
|
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31, 2024
|
|
March 31, 2023
|
|
|
INVESTMENT
INCOME
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
6,309,381
|
|
$
|
4,731,952
|
|
|
Other income
|
|
|
109,596
|
|
|
176,069
|
|
|
Total Investment
Income
|
|
$
|
6,418,977
|
|
$
|
4,908,021
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Management
fees
|
|
$
|
800,654
|
|
$
|
601,839
|
|
|
Income incentive
fees
|
|
|
598,401
|
|
|
439,666
|
|
|
Capital gains incentive
fee
|
|
|
37,891
|
|
|
—
|
|
|
Professional
fees
|
|
|
196,911
|
|
|
211,808
|
|
|
Organization
costs
|
|
|
—
|
|
|
1,000
|
|
|
Amortization of
deferred offering costs
|
|
|
46,728
|
|
|
57,623
|
|
|
Administrative services
expenses
|
|
|
121,777
|
|
|
93,760
|
|
|
Trustees'
fees
|
|
|
40,000
|
|
|
40,000
|
|
|
Insurance
expense
|
|
|
20,196
|
|
|
20,084
|
|
|
Valuation
fees
|
|
|
27,159
|
|
|
17,659
|
|
|
Interest expense and
other fees
|
|
|
2,110,119
|
|
|
1,703,503
|
|
|
Income tax
expense
|
|
|
21,589
|
|
|
7,835
|
|
|
Other general and
administrative expenses
|
|
|
42,933
|
|
|
43,520
|
|
|
Total Operating
Expenses
|
|
$
|
4,064,358
|
|
$
|
3,238,297
|
|
|
Expenses
reimbursed/fees waived by Investment Advisor (Note
2)
|
|
$
|
(1,197,896)
|
|
$
|
(968,275)
|
|
|
Net Operating
Expenses
|
|
$
|
2,866,462
|
|
$
|
2,270,022
|
|
|
Net Investment
Income
|
|
$
|
3,552,515
|
|
$
|
2,637,999
|
|
|
Net realized gain on
foreign currency translation
|
|
$
|
8,442
|
|
$
|
3,475
|
|
|
Net change in
unrealized appreciation (depreciation) on non-controlled,
non-affiliated investments
|
|
|
333,461
|
|
|
(72,026)
|
|
|
Net change in
unrealized (depreciation) appreciation on foreign currency
translations
|
|
|
(8,881)
|
|
|
6,220
|
|
|
Benefit for taxes on
net unrealized loss on investments
|
|
|
45,885
|
|
|
—
|
|
|
Net Increase in Net
Assets Resulting from Operations
|
|
$
|
3,931,422
|
|
$
|
2,575,668
|
|
|
Net Investment
Income Per Share – basic and diluted
|
|
$
|
0.49
|
|
$
|
0.48
|
|
|
Net Increase in Net
Assets Resulting from Operations Per Share – basic and
diluted
|
|
$
|
0.54
|
|
$
|
0.47
|
|
|
Weighted Average
Common Shares of Beneficial Interest Outstanding – basic and
diluted
|
|
|
7,227,206
|
|
|
5,501,765
|
|
|
Distributions Per
Share – basic and diluted
|
|
$
|
0.50
|
|
$
|
0.42
|
|
|
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
|
|
(loss)
gain
|
|
Net Assets
|
|
Balances at
December 31, 2022
|
|
5,483,433
|
|
$
|
54,834
|
|
$
|
80,950,845
|
|
$
|
(742,722)
|
|
$
|
80,262,957
|
|
Net investment
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,637,999
|
|
|
2,637,999
|
|
Net realized gain on
foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,475
|
|
|
3,475
|
|
Net change in
unrealized depreciation on non-controlled, non-affiliated
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72,026)
|
|
|
(72,026)
|
|
Net change in
unrealized appreciation on foreign currency translations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,220
|
|
|
6,220
|
|
Distributions from net
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,306,409)
|
|
|
(2,306,409)
|
|
Issuance of common
shares of beneficial interest
|
|
349,546
|
|
|
3,496
|
|
|
5,115,958
|
|
|
—
|
|
|
5,119,454
|
|
Balances at March
31, 2023
|
|
5,832,979
|
|
$
|
58,330
|
|
$
|
86,066,803
|
|
$
|
(473,463)
|
|
$
|
85,651,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
Three Months
Ended
|
|
|
March 31, 2024
|
|
March 31, 2023
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
$
|
3,931,422
|
|
$
|
2,575,668
|
|
|
Adjustments to
reconcile net increase in net assets from operations to net cash
used in operating activities:
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
(16,534,629)
|
|
|
(17,104,559)
|
|
|
Proceeds from sales
and repayments of investments
|
|
9,368,480
|
|
|
9,823,196
|
|
|
Net change in
unrealized (appreciation) depreciation on investments
|
|
(333,461)
|
|
|
72,026
|
|
|
Net change in
unrealized depreciation (appreciation) foreign currency
translations
|
|
8,881
|
|
|
(6,220)
|
|
|
Increase in
investments due to PIK
|
|
(159,943)
|
|
|
—
|
|
|
Amortization of
premium and accretion of discount, net
|
|
(140,131)
|
|
|
(106,212)
|
|
|
Deferred tax
benefit
|
|
(45,885)
|
|
|
—
|
|
|
Amortization of loan
structure fees
|
|
94,108
|
|
|
156,894
|
|
|
Amortization of
deferred offering costs
|
|
46,728
|
|
|
57,623
|
|
|
Changes in other assets
and liabilities
|
|
|
|
|
|
|
|
Increase in interest
receivable
|
|
(360,655)
|
|
|
(230,621)
|
|
|
Increase in other
receivable
|
|
—
|
|
|
(16,200)
|
|
|
Decrease (increase) in
related party receivable
|
|
125,830
|
|
|
(49,651)
|
|
|
Increase in expense
reimbursements receivable from the Advisor
|
|
(71,236)
|
|
|
(198,636)
|
|
|
(Increase) decrease in
prepaid expenses
|
|
(5,386)
|
|
|
36,509
|
|
|
Increase in related
party payable
|
|
—
|
|
|
5,000,000
|
|
|
(Decrease) increase in
administrative services payable
|
|
(6,953)
|
|
|
74,458
|
|
|
(Decrease) increase in
interest payable
|
|
(18,453)
|
|
|
105,780
|
|
|
(Decrease) increase in
income incentive fees payable
|
|
(32,847)
|
|
|
293,110
|
|
|
Increase in capital
gains incentive fees payable
|
|
37,890
|
|
|
—
|
|
|
Decrease in unearned
revenue
|
|
(113,054)
|
|
|
(4,408)
|
|
|
(Decrease) increase in
income tax payable
|
|
(33,404)
|
|
|
7,835
|
|
|
(Decrease) increase in
other accrued expenses and liabilities
|
|
(49,432)
|
|
|
67,928
|
|
|
Net Cash (Used)
Provided in Operating Activities
|
$
|
(4,292,130)
|
|
$
|
554,520
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
Proceeds from issuance
of common shares of beneficial interest
|
$
|
3,904,239
|
|
$
|
5,119,454
|
|
|
Offering costs paid
for common shares of beneficial interest issued
|
|
(46,729)
|
|
|
(96,872)
|
|
|
Stockholder
distributions paid
|
|
(7,161,430)
|
|
|
(1,809,533)
|
|
|
Borrowings under
Credit Facilities
|
|
20,400,000
|
|
|
49,500,000
|
|
|
Repayments of Credit
Facilities
|
|
(13,100,000)
|
|
|
(54,115,000)
|
|
|
Financing costs paid
on Credit Facilities
|
|
—
|
|
|
(182,195)
|
|
|
Short-term loan
repayments
|
|
—
|
|
|
(6,750,000)
|
|
|
Net Cash Provided
(Used) by Financing Activities
|
$
|
3,996,080
|
|
$
|
(8,334,146)
|
|
|
Net Decrease in Cash
and Cash Equivalents
|
$
|
(296,050)
|
|
$
|
(7,779,626)
|
|
|
Cash and Cash
Equivalents Balance at Beginning of Period
|
|
593,685
|
|
|
15,469,823
|
|
|
Cash and Cash
Equivalents Balance at End of Period
|
$
|
297,635
|
|
$
|
7,690,197
|
|
|
Supplemental and
Non-Cash Activities
|
|
|
|
|
|
|
|
Cash paid for interest
expense
|
$
|
2,034,464
|
|
$
|
1,440,829
|
|
|
Income and excise tax
paid
|
|
54,993
|
|
|
—
|
|
|
Increase in deferred
offering costs
|
|
—
|
|
|
39,249
|
|
|
Value of common shares
of beneficial interest issued pursuant to Dividend Reinvestment
Plan
|
|
354,239
|
|
|
119,453
|
|
|
(Decrease) increase in
dividends payable
|
|
(3,551,068)
|
|
|
496,876
|
|
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SOURCE Stellus Private Credit BDC