Stellus Private Credit BDC Reports Results for its Second Fiscal Quarter Ended June 30, 2026

Stellus Private Credit BDC Reports Results for its Second Fiscal Quarter Ended June 30, 2026

PR Newswire

HOUSTON, Aug. 12, 2026

HOUSTON, Aug. 12, 2026 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fiscal quarter June 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated, "We are pleased to report solid operating results in the second quartert in which we generated $0.28 per share of net investment income and increased net asset value. During the quarter, we funded $37 million of investments and received $26 million of repayments, bringing the total portfolio to $420 million at fair value. On July 16, 2026, we declared our 2026 third quarter monthly dividend of $0.31 per share in the aggregate."FINANCIAL HIGHLIGHTS($ in millions, except data relating to per share amounts and shares outstanding)Three Months EndedJune 30, 2026June 30, 2025AmountPer ShareAmountPer ShareNet investment income$3.70$0.28$3.65$0.33Net realized gain on investments(3.79)(0.29)0.070.01Net unrealized appreciation included in earnings6.250.471.040.09Provision for taxes on net unrealized appreciation on investments(0.23)(0.01)(0.02)—Net increase in net assets resulting from operations$5.93$0.45$4.74$0.43Distributions(4.48)(0.34)(3.93)(0.36)Net asset value$209.14$15.25$170.17$15.29Weighted average shares outstanding13,187,42810,935,215PORTFOLIO ACTIVITY($ in millions)As ofAs ofJune 30, 2026December 31, 2025Investments at fair value$419.5$400.1Total assets$427.5$404.7Net assets$209.1$199.6Shares outstanding13,716,20613,121,397Net asset value per share$15.25$15.21Three Months EndedJune 30, 2026June 30, 2025New investments$36.7$14.4Repayments of investments(25.7)(10.2)Net activity$11.0$4.2As ofAs ofJune 30, 2026December 31, 2025Number of portfolio company investments7774Number of debt investments7271Weight average yield of debt and other income producing investments(1)Cash8.6 %9.3 %Payment-in-kind ("PIK")0.5 %0.1 %Fee amortization0.4 %0.4 %Total9.5 %9.8 %Weighted average yield on total investments(2)Cash8.2 %9.0 %PIK0.5 %0.1 %Fee amortization0.3 %0.3 %Total9.0 %9.4 %____________________(1)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.(2)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 OperationsInvestment income for the three months ended June 30, 2026 and 2025 totaled $9.7 million and $8.7 million, respectively, most of which was interest income from portfolio investments.Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $6.7 million and $5.8 million, respectively. For the same periods, base management fees totaled $1.5 million and $1.2 million, income incentive fees totaled $0.6 million and $0.7 million, respectively; capital gains incentive (reversals) fees of $0.2 million and $0.1 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.8 million and $3.2 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.3 million and $0.2 million, respectively and other expenses totaled $0.3 million and $0.4 million, respectively. For the three months ended June 30, 2026 and 2025, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.5 million and $0.4 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 of expenses pursuant to expense support and conditional reimbursements from the Advisor for both periods, for net operating expenses of $6.0 million and $5.1 million, respectively.For the three months ended June 30, 2026 and 2025, net investment income was $3.7 million and $3.6 million, or $0.28 and $0.33 per common share based on weighted average common shares outstanding of 13,187,428 and 10,935,215, respectively.The Company's investment portfolio had a net change in unrealized (depreciation) appreciation of $6.3 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively.For the three months ended June 30, 2026 and 2025, net increase in net assets resulting from operations totaled $5.9 million and $4.7 million, or $0.45 and $0.43 per common share, based on weighted average common shares outstanding of 13,187,428 and 10,935,215, respectively.Liquidity and Capital ResourcesOn 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 June 30, 2026 and December 31, 2025, the Company had $141.0 million and $128.6 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 both June 30, 2026 and December 31, 2025, the Company had $75.0 million in outstanding borrowings under the SPV Facility.For the three months ended June 30, 2026, the Company sold 121,833 common shares of beneficial interest at a weighted-average price of $15.12 per share for aggregate net proceeds of $1.9 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 June 30, 2026. Additionally, for the three months ended June 30, 2026, 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 991,628 common shares of beneficial interest at a weighted-average price of $15.13 per share. Lastly, the Company purchased 390,667 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer during the three months ended June 30, 2026 at a price equal to $15.13 per Share for an aggregate purchase price of approximately $5.9 million.DistributionsDuring the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.36, respectively ($4.5 million and $3.9 million in the aggregate, respectively. 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 ActivityThe Company invested in the following portfolio companies for the three months ended June 30, 2026:Activity TypeDateCompany NameCompany DescriptionInvestment Amount Instrument TypeNew InvestmentApril 3, 2026VeloSource Purchaser, LLCLocum tenens staffing agency$7,800,000Senior Secured – First Lien$100,000Delayed Draw Term Loan Commitment$100,000Revolver Commitment$372,093EquityNew InvestmentApril 13, 2026Solomon AcquisitionCo, LLCAn innovative process automation and digital systems integrator$2,712,573Senior Secured – First Lien$100,000Revolver Commitment$122,286EquityNew InvestmentApril 27, 2026OW RSG LLCManufacturer of walk-in coolers, freezers, and refrigeration systems$6,500,000Senior Secured – First Lien$100,000Delayed Draw Term Loan Commitment$100,000Revolver Commitment$516,975EquityAdd-On InvestmentMay 11, 2026Channel Partners Intermediateco, LLC*Provider of outsourced marketing services$1,000,000Senior Secured – First LienAdd-On InvestmentJune 1, 2026WER Holdings, LLC*Regional provider of commercial landscapingservices$1,201,513Senior Secured – First Lien$787,878Delayed Draw Term Loan CommitmentAdd-On InvestmentJune 29, 2026Monarch Behavioral Therapy, LLC*Provider of center-based applied behavioral analysis therapy services$23,201Convertible Promissory NoteAdd-On InvestmentJune 30, 2026Valor Buyco LLC*Provider of dispatched road services$100,000Delayed Draw Term Loan Commitment____________________*Existing portfolio companyThe Company realized the following portfolio companies for the three months ended June 30, 2026:Activity TypeDateCompany NameCompany DescriptionProceeds Received Instrument TypeFull RepaymentApril 24, 2026Equine Network, LLCProvider of equine competitions, content, products, and services$4,082,857Senior Secured – First Lien$363,743Delayed Draw Term Loan Commitment$353,198Revolver CommitmentFull RepaymentApril 30, 2026Cerebro Buyer, LLCManufacturer of single-use electrodes for medical procedures$2,043,731Senior Secured – First Lien$170,166Delayed Draw Term Loan CommitmentFull RepaymentJune 30, 2026Tilley CompanyDistributor of specialty chemicals, oils, and lubricants into the food & beverage, lubricants, flavor and fragrances, personal care, and other chemicals end-markets$2,666,849Senior Secured – First Lien$128,683Revolver CommitmentEvents Subsequent to June 30, 2026The Company's management has evaluated subsequent events through August 12, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.Investment PortfolioThe Company invested in the following portfolio companies subsequent to June 30, 2026:Activity TypeDateCompany NameCompany DescriptionInvestment AmountInstrument TypeAdd-On InvestmentJuly 2, 2026Blade Landscape Investments, LLC*Regional provider of commercial landscapingservices$2,250EquityNew InvestmentJuly 16, 2026Emergent SoftwareMicrosoft-centric data, AI, and cloud IT servicespartner$2,246,180Senior Secured – First Lien$1,871,817Delayed Draw Term Loan Commitment$500,000Revolver Commitment$222,653EquityNew InvestmentAugust 5, 2026LJ Welding Automation Ltd.Manufacturer of material handlingand welding automation systems$6,969,323Senior Secured – First Lien$500,000Revolver Commitment$276,642Equity____________________*Existing portfolio companyThe Company realized the following portfolio companies subsequent to June 30, 2026:Activity TypeDateCompany NameCompany DescriptionProceeds Received Instrument TypeFull RepaymentJuly 27, 2026MacKenzie-Childs Acquisition, Inc.Lifestyle home décor brand$8,116,861Senior Secured – First LienCredit FacilitiesAs of August 12, 2026, the outstanding balances under the Credit Facility and SPV Facility were $141.3 million and $75.0 million, respectively.Distributions DeclaredOn July 16, 2026 the Board declared a regular monthly dividend for each of July, August and September 2026 as follows:RecordPaymentAmount perDeclaredDateDateShare7/16/20267/17/20267/31/2026$0.10337/16/20268/3/20268/31/2026$0.10337/16/20269/1/20269/30/2026$0.1033About Stellus Private Credit BDCThe 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. Stellus Private BDC Advisor, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the Securities and Exchange Commission for additional information.Forward-Looking StatementsStatements 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.ContactsStellus Private Credit BDCW. Todd Huskinson, Chief Financial Officer(713) 292-5414thuskinson@stelluscapital.comSTELLUS PRIVATE CREDIT BDCCONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIESJune 30, 2026(unaudited)December 31, 2025ASSETS Non-controlled, affiliated investments, at fair value (amortized cost of $12,395,473)$12,323,944$—Non-controlled, non-affiliated investments, at fair value (amortized cost of $397,729,677 and $396,791,982, respectively)407,203,257400,131,924Cash and cash equivalents4,743,1642,586,895Other receivable94,951—Interest receivable1,604,1281,765,379Expense reimbursement receivable from the Advisor (Note 2)31,8222,580Deferred offering costs36,09760,993Prepaid expenses96,44613,632Receivable for sales and repayments of investments1,320,742165,651Total Assets$427,454,551$404,727,054LIABILITIES Credit Facilities payable$213,126,583$200,281,671Related party payable10,310—Unearned revenue1,056,2361,207,706Management fees payable1,009,641908,154Income incentive fee payable498,025544,620Capital gains incentive fee payable720,247527,603Interest payable776,186865,205Administrative services payable193,755189,715Income tax payable61,800126,348Deferred tax liability708,155338,611Other accrued expenses and liabilities150,221110,706Total Liabilities$218,311,159$205,100,339Commitments and contingencies (Note 7) Net Assets$209,143,392$199,626,715NET ASSETS Common shares of beneficial interest, par value $0.01 per share (unlimited sharesauthorized; 13,716,206 and 13,121,397 issued and outstanding, respectively)$137,162$131,214Paid-in capital204,932,861195,935,870Total distributable earnings4,073,3693,559,631Net Assets$209,143,392$199,626,715Total Liabilities and Net Assets$427,454,551$404,727,054Net Asset Value Per Share$15.25$15.21STELLUS PRIVATE CREDIT BDCCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)Three Months Ended Six Months Ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025INVESTMENT INCOME From non-controlled, affiliated investmentsInterest income$672$—$672$—Other income5—5—From non-controlled, non-affiliated investmentsInterest income9,540,8798,539,39018,770,01016,442,548Other income175,968199,844438,717347,545Total Investment Income$9,717,524$8,739,234$19,209,404$16,790,093OPERATING EXPENSES Management fees$1,514,461$1,196,103$2,958,030$2,231,932Income incentive fee632,714625,7991,288,6211,204,114Capital gains incentive fee223,137109,594192,644272,733Professional fees161,219201,789411,272381,838Amortization of deferred offering costs22,75363,14754,493132,981Administrative services expenses251,274158,184487,560301,183Trustees' fees40,00040,00080,00080,000Insurance expense10,67622,12630,56744,010Valuation fees7,1673,90458,04442,609Interest expense and other fees3,781,7733,241,2107,331,8216,257,771Income tax expense3,91014,75846,25117,107Other general and administrative expenses126,20368,485203,935145,355Total Operating Expenses$6,775,287$5,745,099$13,143,238$11,111,633Expenses reimbursed/fees waived by Advisor (Note 2)$(754,187)$(651,064)$(1,596,187)$(1,273,490)Net Operating Expenses$6,021,100$5,094,035$11,547,051$9,838,143Net Investment Income$3,696,424$3,645,199$7,662,353$6,951,950Net realized (loss) gain on non-controlled, non-affiliated investments$(3,810,360)$67,495$(3,810,360)$67,495Net realized gain on foreign currency translation20,0454,79844,2396,419Net change in unrealized appreciation on non-controlled, affiliated investments176,952———Net change in unrealized appreciation on non-controlled, non-affiliated investments6,073,5951,024,5456,080,6382,205,337Net change in unrealized (depreciation) appreciation on foreign currency translations(1,686)22,698(18,527)35,732(Provision) benefit for taxes on net unrealized (gain) loss on investments(227,175)(23,593)(369,546)38,266Net Increase in Net Assets Resulting from Operations$5,927,795$4,741,142$9,588,797$9,305,199Net Investment Income Per Share – basic and diluted$0.28$0.33$0.58$0.64Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted$0.45$0.43$0.73$0.86Weighted Average Common Shares of Beneficial Interest Outstanding – basic and diluted13,187,42810,935,21513,150,92010,851,870Distributions Per Share – basic and diluted$0.34$0.36$0.69$0.72STELLUS PRIVATE CREDIT BDCCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)Common Shares ofBeneficial InterestTotalNumber of ParPaid-in distributablesharesvaluecapitalgainNet AssetsBalances at December 31, 202410,715,095$107,151$159,483,435$2,797,294$162,387,880Net investment income———3,306,7513,306,751Net realized gain on foreign currency translation———1,6211,621Net change in unrealized appreciation on non-controlled, non-affiliated investments———1,180,7921,180,792Net change in unrealized appreciation on foreign currency translations———13,03413,034Provision for taxes on net unrealized gain on investments———61,85961,859Distributions from net investment income———(3,881,841)(3,881,841)Issuance of common shares of beneficial interest158,2261,5822,406,248—2,407,830Balances at March 31, 202510,873,321$108,733$161,889,683$3,479,510$165,477,926Net investment income———3,645,1993,645,199Net realized gain on investments———67,49567,495Net realized gain on foreign currency translation———4,7984,798Net change in unrealized appreciation on non-controlled, non-affiliated investments———1,024,5451,024,545Net change in unrealized appreciation on foreign currency translations———22,69822,698Provision 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 interest276,3572,7644,220,720—4,223,484Redemption of common shares of beneficial interest(22,609)(226)(342,525)—(342,751)Balances at June 30, 202511,127,069$111,271$165,767,878$4,286,328$170,165,477Balances at December 31, 202513,121,397$131,214$195,935,870$3,559,631$199,626,715Net investment income———3,965,9293,965,929Net realized gain on foreign currency translation———24,19424,194Net change in unrealized depreciation on non-controlled, non-affiliated investments———(169,909)(169,909)Net change in unrealized depreciation on foreign currency translations———(16,841)(16,841)Provision for taxes on net unrealized gain on investments———(142,371)(142,371)Distributions from net investment income———(4,598,033)(4,598,033)Issuance of common shares of beneficial interest208,9662,0903,188,141—3,190,231Redemption of common shares of beneficial interest(357,092)(3,571)(5,427,794)—(5,431,365)Balances at March 31, 202612,973,271$129,733$193,696,217$2,622,600$196,448,550Net investment income———3,696,4243,696,424Net realized loss on investments———(3,810,360)(3,810,360)Net realized gain on foreign currency translation———20,04520,045Net change in unrealized appreciation on non-controlled, non-affiliated investments———6,250,5476,250,547Net change in unrealized depreciation on foreign currency translations———(1,686)(1,686)Provision for taxes on net unrealized gain on investments———(227,175)(227,175)Distributions from net investment income———(4,477,026)(4,477,026)Issuance of common shares of beneficial interest1,133,60211,33617,143,523—17,154,859Redemption of common shares of beneficial interest(390,667)(3,907)(5,906,879)—(5,910,786)Balances at June 30, 202613,716,206$137,162$204,932,861$4,073,369$209,143,392STELLUS PRIVATE CREDIT BDCCONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)Six Months Ended June 30, 2026June 30, 2025Cash Flows from Operating ActivitiesNet increase in net assets resulting from operations$9,588,797$9,305,199Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:Purchases of investments(64,027,298)(51,138,817)Proceeds from sales and repayments of investments46,946,39414,439,508Net change in unrealized appreciation on investments(6,080,638)(2,205,337)Net change in unrealized depreciation (appreciation) foreign currency translations18,527(35,732)Increase in investments due to PIK(629,431)(197,732)Amortization of premium and accretion of discount, net(588,282)(473,368)Deferred tax provision (benefit)369,544(38,266)Amortization of loan structure fees514,180267,785Amortization of deferred offering costs54,493132,981Net realized loss (gain) on investments3,810,360(67,495)Changes in other assets and liabilitiesDecrease (increase) in interest receivable161,251(67,100)(Increase) decrease in other receivable(94,951)4,340Decrease in related party receivable—2,004(Increase) decrease in expense reimbursements receivable from the Advisor (29,242)117,709(Increase) decrease in prepaid expenses (82,814)88,479Increase in related party payable10,310—Increase in administrative services payable4,04022,066(Decrease) increase in interest payable(89,019)7,898Increase in income management fees payable101,487149,253(Decrease) increase in income incentive fees payable(46,595)36,154Increase in capital gain incentive fees payable192,644272,733(Decrease) increase in unearned revenue(151,470)246,852Decrease in income tax payable(64,548)(11,893)Increase (decrease) in other accrued expenses and liabilities39,515(214,744)Net Cash Used in Operating Activities$(10,072,746)$(29,357,523)Cash Flows from Financing ActivitiesProceeds from issuance of common shares of beneficial interest$20,345,090$6,631,314Offering costs paid for common shares of beneficial interest issued(29,597)(96,081)Purchase of common shares of beneficial interest in tender offer(11,342,151)(342,751)Stockholder distributions paid(9,075,059)(7,816,165)Borrowings under Credit Facilities74,100,00050,700,000Repayments of Credit Facilities(61,750,000)(18,050,000)Financing costs paid on Credit Facilities(19,268)(155,948)Net Cash Provided by Financing Activities$12,229,015$30,870,369Net Increase in Cash and Cash Equivalents$2,156,269$1,512,846Cash and Cash Equivalents Balance at Beginning of Period2,586,8952,144,116Cash and Cash Equivalents Balance at End of Period$4,743,164$3,656,962Supplemental and Non-Cash ActivitiesCash paid for interest expense$6,906,660$5,982,088Income and excise tax paid110,79929,000Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan666,0901,185,787Exchange of investments6,055,309—