Stellus Private Credit BDC Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2025

HOUSTON, March 13, 2026 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fiscal quarter and year ended December 31, 2025.

Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated "We are pleased to report solid operating results in the fourth quarter in which we generated $0.34 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $42 million of investments and received $18 million of repayments, bringing the total portfolio to $400 million at fair value. On January 16, 2026, we declared our 2026 first quarter monthly dividend of $0.35 per share in the aggregate."

Results of Operations

Investment income for the three months ended December 31, 2025 and 2024 totaled $9.8 million and $7.8 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended December 31, 2025 and 2024 totaled $6.2 million and $5.0 million, respectively. For the same periods, base management fees totaled $1.4 million and $1.0 million, income incentive fees totaled $0.7 million and $0.6 million, respectively; capital gains incentive (reversals) fees of ($0.0) million and 0.1 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.5 million and $2.6 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.2 million, respectively and other expenses totaled $0.4 million and $0.5 million, respectively. For the three months ended December 31, 2025 and 2024, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.4 million and $0.3 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 and $0.2 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.6 million and $4.3 million, respectively.

For the three months ended December 31, 2025 and 2024, net investment income was $4.2 million and $3.5 million, or $0.34 and $0.37 per common share based on weighted average common shares outstanding of 12,424,324 and 9,561,014, respectively.

The Company's investment portfolio had a net change in unrealized appreciation of ($1.7) million and $1.4 million for the three months ended December 31, 2025 and 2024, respectively.

For the three months ended December 31, 2025 and 2024, net increase in net assets resulting from operations totaled $3.9 million and $4.8 million, or $0.31 and $0.50 per common share, based on weighted average common shares outstanding of 12,424,324 and 9,561,014, 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 December 31, 2025 and December 31, 2024, the Company had $128.6 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, 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 December 31, 2025 and December 31, 2024, the Company had $75.0 million and $50.0 million in outstanding borrowings under the SPV Facility, respectively.

For the three months ended December 31, 2025, the Company sold 412,586 common shares of beneficial interest at a weighted-average price of $15.26 per share for aggregate net proceeds of $6.3 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 December 31, 2025. Additionally, for the three months ended December 31, 2025, the Company called $7.5 million pursuant to capital draw down subscription agreements between the Company and its shareholders. The transaction resulted in the issuance of 491,481 common shares of beneficial interest at a price of $15.26 per share. Lastly, the Company purchased 176,879 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended December 31, 2025 at a price equal to $15.25 per Share for an aggregate purchase price of approximately $2.7 million.

Distributions

During the three months ended December 31, 2025 and 2024, the Company declared aggregate distributions of $0.36 per share and $0.50, respectively ($4.5 million in the aggregate for both periods). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $0.3 million of the dividends declared in 2025 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, 2025: