Stellus Private Credit BDC Reports Results for its First Fiscal Quarter Ended March 31, 2023.

HOUSTON: Stellus Private Credit BDC ("Stellus PBDC" or the "Company") today announced financial results for its first fiscal quarter ended March 31, 2023.

Robert T. Ladd, Chief Executive Officer of Stellus Private Credit BDC, stated: "We are pleased to report solid results in the first quarter in which we generated $0.48 per share of net investment income and maintained net asset value. During the quarter we made three new investments and one investment in an existing portfolio company, and had one payoff, totaling net portfolio growth of $7 million at fair value, bringing the total portfolio to $165 million at fair value. On March 14, 2023, we declared our first quarter dividend of $0.42 per share which was covered by net investment income and represents an annualized dividend yield of 11.4%."

FINANCIAL HIGHLIGHTS

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

Three Months Ended

Three Months Ended

March 31, 2023

March 31, 2022

Amount

Per Share

Amount

Per Share

Net investment income

$2.64

$0.48

$0.08

$0.03

Net unrealized loss included in earnings

(0.06)

(0.01)

(0.11)

(0.04)

Net increase in net assets resulting from operations

$2.58

$0.47

(0.03)

(0.01)

Distributions

(2.31)

(0.42)

--

--

Other weighted average share adjustments(1)

--

(0.01)

--

--

Net asset value

85.7

$14.68

80.3

$14.76

Weighted average shares outstanding

5,501,765

2,333,334

(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, 2023

December 31, 2022

Investments at fair value

$164.8

$157.5

Total assets

$174.4

$174.4

Net assets

$85.7

$80.3

Shares outstanding

5,832,979

5,483,433

Net asset value per share

$14.68

$14.64

Three Months Ended

Three Months Ended

March 31, 2023

March 31, 2022

New investments

$17.1

$38.0

Repayments of investments

(9.8)

(0.5)

Net activity

$7.3

$37.5

Results of Operations

Investment income for the three months ended March 31, 2023 and 2022 totaled $4.9 million and $0.4 million, respectively, most of which was interest income from portfolio investments.

Operating expenses for the three months ended March 31, 2023 and 2022 totaled $3.2 million and $0.5 million, respectively, net of $1.0 million and $0.3 million in expenses reimbursed and fees waived by the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), respectively. For the same periods, base management fees totaled $0.6 million and $0.1 million (all of which were waived by the Advisor), income incentive fees totaled $0.4 million (net of $0.1 million which...