Stellus Private Credit BDC: Strong Third Quarter Performance

Stellus Private Credit BDC Reports Third Quarter Financial Results

Stellus Private Credit BDC, also known as Stellus PBDC, has shared its latest financial results for the third fiscal quarter. During this period, the company successfully reported a noteworthy earnings performance.

Financial Highlights

Robert T. Ladd, the Chief Executive Officer, expressed satisfaction with the results achieved in the third quarter. The company generated $0.49 per share in net investment income, demonstrating its commitment to stable financial management. Overall, Stellus PBDC funded $9 million worth of investments and received $7 million in repayments, maintaining its portfolio at a fair value of $257 million.

Dividend Declarations

On October 10, the Board declared the fourth quarter monthly dividend for 2024 amounting to $0.48 per share. This marks an annualized yield of approximately 13%, showcasing the company's dedication to providing shareholders with consistent returns.

Portfolio Activities

Investment activity included commitments to various portfolio companies which highlight an effective investment strategy. The company accounted for new investments and repayments within its operational framework, optimizing its asset management.

Investment Income Growth

For the quarter ending September 30, the company reported investment income improving from $6.1 million the previous year to $7.9 million in 2024. This was largely driven by increased interest income from its extensive portfolio of investments.

Operating Expenses

Gross operating expenses for the quarter were reported at $4.6 million, an increase from the previous $4.1 million. Despite the higher expenses, management fees and incentive fees were kept in check due to the ongoing waivers by the investment advisor, Stellus Private BDC Advisor, LLC.

Net Increase in Assets

The net increase in net assets due to operations concluded at $4.25 million for the quarter, reflecting robust growth and effective cost management.

Liquidity and Capital Resources

As of September 30, Stellus PBDC showcased prudent liquidity management with available borrowings under its credit facility. The company has made strategic amendments, increasing its facility limit to $175 million to ensure ample capital for future investments.

Forward-Looking Statements

Management has expressed confidence in the trajectory of Stellus Private Credit BDC, aiming to continue pursuing profitable investments. The company's strategic focus remains on balancing its investment portfolio while generating tangible value for shareholders.

About Stellus Private Credit BDC

Stellus Private Credit BDC is a non-diversified investment management company regulated as a business development company. Its primary investment objective is to maximize stockholder returns, emphasizing current income and capital appreciation through targeted investments in private middle-market companies.

Frequently Asked Questions

What is Stellus Private Credit BDC's primary investment focus?

Stellus focuses on investing in private middle-market companies to maximize stockholder returns through income and capital appreciation.

How much dividend was declared for the fourth quarter of 2024?

The declared dividend for the fourth quarter of 2024 is $0.48 per share.

What were the investment income figures for the third quarter of 2024?

Stellus reported an investment income of $7.9 million for the third quarter of 2024.

What amount of investments did Stellus engage in during the third quarter?

The company funded $9 million in new investments during the third quarter of 2024.

How did the operating expenses compare year-over-year?

Operating expenses increased to $4.6 million in the latest quarter, compared to $4.1 million in the same period last year.

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