Stellus Private Credit BDC Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2022.

HOUSTON: Stellus Private Credit BDC ("Stellus PBDC" or the "Company") today announced financial results for its fourth fiscal quarter and year ended December 31, 2022.

Robert T. Ladd, Chief Executive Officer of Stellus Private Credit BDC, stated, "We are pleased to report strong results for our fourth full quarter of operations. During the quarter we made three new investments and two investments in existing portfolio companies totaling $33 million at fair value, bringing the total portfolio to $158 million at fair value. On December 28, 2022, we declared our fourth quarterly dividend of $0.33 per share representing an annualized dividend yield of 9.0%. We expect our dividend to grow as we continue to build out the portfolio."

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)

Three Months Ended

Year Ended

December 31, 2022

December 31, 2022

Amount

Per Share

Amount

Per Share

Net investment income

$1.88

$0.35

$4.20

$ 1.08

Net unrealized loss included in earnings

0.30

0.05

(0.52)

(0.13)

Net increase in net assets resulting from operations

$2.18

$0.41

$3.68

$0.95

Distributions

(3.51)

(0.66)

(4.28)

(1.11)

Other weighted average share adjustments(1)

--

--

--

0.03

Net asset value

80.3

$14.64

80.3

14.64

Weighted average shares outstanding

5,344,720

3,869,643

(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

December 31, 2022

December 31, 2021

Investments at fair value

$157.5

--

Total assets

$174.4

$0.2

Net assets

$80.3

($0.5)

Shares outstanding

5,483,433

--

Net asset value per share

$14.64

N/A

Three Months Ended

Year Ended

December 31, 2022

December 31, 2022

New investments

$33.3

$168.3

Repayments of investments

(3.5)

(10.5)

Net activity

$29.8

$157.8

Results of Operations

Investment income for the year ended December 31, 2022 totaled $8.0 million, most of which was interest income from portfolio investments.

Operating expenses for the year ended December 31, 2022 totaled $5.7 million, net of $2.0 million in expenses reimbursed and fees waived by the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"). For the same period, base management fees totaled $1.3 million (all of which were waived by the Advisor), income incentive fees totaled...