HOUSTON, March 11, 2024 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC" or the "Company") today announced financial results for its fourth fiscal quarter and year ended December 31, 2023.
Robert T. Ladd, Chief Executive Officer of Stellus Private Credit BDC, stated "We are pleased to report strong results in the fourth quarter in which we generated $0.56 per share of net investment income and increased net asset value. During the quarter we made three new investments and received four full repayments, bringing the total portfolio to $209 million at fair value. On January 13, 2024, we declared our 2024 first quarter monthly dividend of $0.50 per share in the aggregate which represents an annualized dividend yield of approximately 13%."
FINANCIAL HIGHLIGHTS | ||||||||||||
($ in millions, except data relating to per share amounts and shares outstanding) | ||||||||||||
Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||
Net investment income | $3.92 | $0.56 | $1.88 | $0.35 | $12.33 | $1.96 | $4.20 | $1.08 | ||||
Net realized gain on investments | 0.70 | 0.11 | - | - | 0.70 | 0.11 | - | - | ||||
Net unrealized (loss) gain included in earnings | (0.22) | (0.03) | 0.30 | 0.05 | 2.59 | 0.41 | (0.52) | (0.13) | ||||
Provision for taxes on net unrealized appreciation on investments | (0.11) | (0.02) | - | - | (0.17) | (0.03) | - | - | ||||
Net increase in net assets resulting from operations | $4.29 | $0.62 | $2.18 | $0.41 | 15.45 | 2.46 | 3.68 | 0.95 | ||||
Distributions | (3.55) | (0.51) | (3.51) | (0.66) | (11.77) | (1.88) | (4.28) | (1.11) | ||||
Other weighted average share adjustments(1) | - | - | - | - | - | - | - | 0.03 | ||||
Net asset value | 108.0 | $15.21 | 80.3 | $14.64 | 108.0 | $15.21 | 80.3 | $14.64 | ||||
Weighted average shares outstanding | 6,953,190 | 5,344,720 | 6,273,882 | 3,869,643 | ||||||||
(1) Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end.
PORTFOLIO ACTIVITY | ||||
($ in millions) | ||||
As of | As of | |||
December 31, 2023 | December 31, 2022 | |||
Investments at fair value | $208.6 | $157.5 | ||
Total assets | $211.2 | $174.4 | ||
Net assets | $108.0 | $80.3 | ||
Shares outstanding | 7,102,136 | 5,483,433 | ||
Net asset value per share | $15.21 | $14.64 | ||
Three Months Ended | Year Ended | |||
December 31, 2023 | December 31, 2023 | |||
New investments | $20.9 | $89.4 | ||
Repayments of investments | (24.9) | (42.3) | ||
Net activity | ($4.0) | $47.1 | ||
As of | As of | |||
December 31, 2023 | December 31, 2022 | |||
Number of portfolio company investments | 39 | 25 | ||
Number of debt investments | 37 | 24 | ||
Weight average yield of debt and other income producing investments (2) | ||||
Cash | 11.8 % | 11.0 % | ||
Payment-in-kind ("PIK") | 0.3 % | - | ||
Fee amortization | 0.4 % | 0.4 % | ||
Total | 12.5 % | 11.4 % | ||
Weighted average yield on total investments (3) | ||||
Cash | 11.2 % | 10.7 % | ||
Payment-in-kind ("PIK") | 0.3 % | - | ||
Fee amortization | 0.4 % | 0.4 % | ||
Total | 11.9 % | 11.1 % | ||
(2) The dollar-weighted average annualized effective yield is computed using the effective interest rate for our 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.
(3) The dollar weighted average yield on total investments takes the same yields as calculated in the footnote above, but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing loans and equity.
Results of Operations
Investment income for the three months and year ended December 31, 2023 totaled $7.1 million and $23.4 million, respectively, most of which was interest income from portfolio investments.
Operating expenses for the three months and year ended December 31, 2023 totaled $3.2 million and $11.0 million, respectively, net of $1.1 million and $4.1 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 $0.8 million and $2.8 million (all of which were waived by the Advisor), income incentive fees totaled $0.4 million and $1.4 million (net of $0.2 million and $0.7 million which were waived as our shares were not listed on a national exchange), capital gains incentive fees of less than $0.1 million and $0.3 million, which are not currently payable, fees and expenses related to our borrowings totaled $2.4 million and $8.2 million, respectively (including interest and amortization of deferred financing costs), administrative expenses totaled $0.1 million and $0.4 million, other expenses totaled $0.3 million and $1.3 million, and expense support and conditional reimbursements from the Advisor of ($0.1) and ($0.5), respectively.
For the three months and year ended December 31, 2023, net investment income was $3.9 million and $12.3 million, or $0.56 and $1.96 per common share based on weighted average common shares outstanding of 6,953,190 and 6,273,882, respectively.
The Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($0.2) million and $2.6 million for the three months and year ended December 31, 2023, respectively.
For the three months and year ended December 31, 2023, net increase in net assets resulting from operations totaled $4.3 million and $15.5 million, or $0.62 and $2.46 per common share, based on weighted average common shares outstanding of 6,953,190 and 6,273,882, respectively.
Liquidity and Capital Resources
On February 1, 2022, the Company entered into a revolving credit and security agreement with Signature Bank as subsequently amended (the "Commitment Facility"). On March 10, 2023, Signature Bank was placed into receivership by the FDIC and on March 12, 2023, the FDIC created Signature Bridge Bank, N.A. ("Signature Bridge") to take over the operations of Signature Bank. Signature Bridge serviced the Commitment Facility until October 23, 2023. On October 23, 2023, Goldman Sachs Bank USA ("Goldman Sachs") became the servicer under the Commitment Facility. The Company's amended and restated senior secured revolving credit agreement with Goldman Sachs (as amended from time to time) matured on December 31, 2023 and was fully repaid, including all accrued interest, on December 22, 2023.
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 $150.0 million on a committed basis with an accordion feature that allows the Company to increase the aggregate commitments up to $200.0 million, subject to new or existing lenders agreeing to participate in the increase and other customary conditions. As of December 31, 2023 and December 31, 2022, the Company had $98.0 million and $0.0 million in outstanding borrowings under the Credit Facility.
Recent Portfolio Activity
The Company invested in the following portfolio companies for the three months ended December 31, 2023:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | October 11, 2023 | Impact Home Services LLC* | Residential garage door, electrical, and plumbing services provider | $ | 243,675 | Senior Secured?-?First Lien | |||||
$ | 7,582 | Equity | |||||||||
Add-On Investment | October 16, 2023 | Equine Network, LLC* | Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry | $ | 431,401 | Senior Secured?-?First Lien | |||||
Add-On Investment | October 31, 2023 | 2X LLC* | Provider of outsourced digital B2B marketing-as-a-service | $ | 659,771 | Senior Secured?-?First Lien | |||||
Add-On Investment | November 15, 2023 | Monitorus Holding, LLC* | Provider of media monitoring and evaluation services | $ | 16,225 | Unsecured Convertible Bond | |||||
Add-On Investment | November 30, 2023 | Axis Portable Air, LLC* | Air conditioning, heating, and air quality equipment rental company | $ | 2,500,000 | Delayed Draw Term Loan Commitment | |||||
Add-On Investment | December 5, 2023 | Amika OpCo LLC* | Branded haircare platform | $ | 1,152,465 | Senior Secured?-?First Lien | |||||
New Investment | December 7, 2023 | evolv Consulting, LLC | Digital transformation consulting firm | $ | 5,156,250 | Senior Secured?-?First Lien | |||||
$ | 1,250,000 | Revolver Commitment | |||||||||
$ | 266,927 | Equity | |||||||||
New Investment | December 12, 2023 | AdCellerant LLC | Provider of outsourced digital marketing software and services | $ | 5,719,319 | Senior Secured?-?First Lien | |||||
$ | 802,995 | Revolver Commitment | |||||||||
$ | 437,006 | Equity | |||||||||
New Investment | December 21, 2023 | Michelli, LLC | Provider of test and measurement services and equipment | $ | 1,342,685 | Senior Secured?-?First Lien | |||||
$ | 2,983,923 | Delayed Draw Term Loan Commitment | |||||||||
$ | 994,641 | Revolver Commitment | |||||||||
$ | 266,062 | Equity | |||||||||
* Existing portfolio company
The Company realized investments in the following portfolio companies for the three months ended December 31, 2023:
Activity Type | Date | Company Name | Company Description | Proceeds Received | Realized Gain | Instrument Type | ||||||||
Full Repayment | November 30, 2023 | Axis Portable Air, LLC* | Air conditioning, heating, and air quality equipment rental company | $ | 1,509,146 | $ | - | Senior Secured?-?First Lien | ||||||
Full Repayment | November 30, 2023 | Archer Systems, LLC* | Provider of mass tort settlement administrative solutions | $ | 7,834,418 | $ | - | Senior Secured?-?First Lien | ||||||
Full Realization | December 21, 2023 | International Designs Holdings LLC* | Distributor of design-oriented surfaces, appliances and architectural specialty products | $ | 1,296,416 | $ | 841,075 | Equity | ||||||
Full Repayment | December 22, 2023 | BLP Buyer, Inc.* | Distributor of lifting solutions | $ | 4,816,367 | $ | - | Senior Secured?-?First Lien | ||||||
$ | 2,750,450 | $ | - | Senior Secured?-?First Lien | ||||||||||
$ | 1,265,924 | $ | - | Senior Secured?-?First Lien | ||||||||||
$ | 779,098 | $ | - | Senior Secured?-?First Lien | ||||||||||
* Existing portfolio company
Events Subsequent to December 31, 2023
The Company's management has evaluated subsequent events through March 11, 2024. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to December 31, 2023:
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | January 9, 2024 | Morgan Electrical Group Intermediate Holdings, Inc.* | Provider of commercial electrical services | $ | 12,854 | Senior Secured?-?First Lien | |||||
Add-On Investment | January 12, 2024 | Impact Home Services LLC* | Residential garage door, electrical, and plumbing services provider | $ | 28,813 | Equity | |||||
Add-On Investment | January 31, 2024 | Impact Home Services LLC* | Residential garage door, electrical, and plumbing services provider | $ | 12,637 | Equity | |||||
Add-On Investment | February 28, 2024 | Monitorus Holding, LLC* | Provider of media monitoring and evaluation services | $ | 38,984 | Unsecured Convertible Bond | |||||
New Investment | March 11, 2024 | Exec Connect Intermediate LLC | Facilitator of executive-level in-person events and remote peer-to-peer industry insights | $ | 1,746,286 | Senior Secured?-?First Lien | |||||
$ | 254,005 | Delayed Draw Term Loan Commitment | |||||||||
$ | 158,753 | Revolver Commitment | |||||||||
$ | 77,109 | Equity | |||||||||
New Investment | March 11, 2024 | Titan Meter Bidco Corp. | Provider of liquid metering products and integrated solutions to the energy infrastructure sector | $ | 7,696,671 | Senior Secured?-?First Lien | |||||
$ | 810,176 | Revolver Commitment | |||||||||
$ | 395,667 | Equity | |||||||||
* Existing portfolio company
The Company realized investments in the following portfolio companies subsequent to December 31, 2023:
Activity Type | Date | Company Name | Company Description | Proceeds Received | Instrument Type | ||||||
Full Repayment | January 8, 2024 | Peltram Plumbing Holdings, LLC* | Provider of plumbing solutions. | $ | 6,818,700 | Senior Secured?-?First Lien | |||||
* Existing portfolio company
Credit Facility
The outstanding balance under the Credit Facility as of March 11, 2024 was $103.7 million.
Distributions Declared
On January 13, 2024, our Board of Directors declared a regular monthly distribution for each of January, February, and March 2024, as follows:
Stellus Private Credit BDC | Record | Payment | Amount per | ||||
Declared | Date | Date | Share | ||||
1/13/2024 | 1/15/2024 | 1/31/2024 | $ | 0.1666 | |||
1/13/2024 | 2/1/2024 | 2/29/2024 | $ | 0.1666 | |||
1/13/2024 | 3/1/2024 | 3/29/2024 | $ | 0.1666 | |||
Sale of Unregistered Securities
Since December 31, 2023, the Company sold 191,580 common shares of beneficial interest at a price of $15.21 per share for aggregate proceeds of $2.9 million, which included less than $0.1 million of Organizational Expense Allocation pursuant to Subscription Agreements entered into between the Company and investors.
Since December 31, 2023, the Company also issued 23,235 common shares of beneficial interest for aggregate proceeds of $0.4 million under the DRIP.
About Stellus Private Credit BDC
The 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 middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans and second lien loans, with corresponding equity co-investments. The Company's investment activities are managed by its investment adviser, Stellus Private BDC Advisor, LLC.
Forward-Looking Statements
Statements 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.
Contacts
Stellus Private Credit BDC
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
[email protected]
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023 | December 31, 2022 | |||||
ASSETS | ||||||
Non-controlled, non-affiliated investments, at fair value (amortized cost of $206,513,758 and $158,022,677, respectively) | $ | 208,574,078 | $ | 157,504,755 | ||
Cash and cash equivalents | 593,685 | 15,469,823 | ||||
Interest receivable | 1,495,581 | 1,030,274 | ||||
Expense reimbursement receivable from the Advisor (Note 2) | 126,539 | 165,638 | ||||
Deferred offering costs | 72,875 | 54,394 | ||||
Related party receivable | 162,455 | 9,620 | ||||
Prepaid expenses | 127,019 | 133,004 | ||||
Receivable for sales and repayments of investments | 71,105 | 26,996 | ||||
Total Assets | $ | 211,223,337 | $ | 174,394,504 | ||
LIABILITIES | ||||||
Credit Facilities payable | $ | 97,031,517 | $ | 79,448,134 | ||
Short-term loan payable | - | 11,250,000 | ||||
Dividends payable | 3,551,068 | 1,809,533 | ||||
Unearned revenue | 897,538 | 539,634 | ||||
Income incentive fee payable | 439,854 | 328,196 | ||||
Capital gains incentive fee payable | 261,684 | - | ||||
Interest payable | 367,093 | 563,241 | ||||
Administrative services payable | 124,958 | 66,064 | ||||
Income tax payable | 182,489 | 7,471 | ||||
Deferred tax liability | 167,865 | - | ||||
Other accrued expenses and liabilities | 177,249 | 119,274 | ||||
Total Liabilities | $ | 103,201,315 | $ | 94,131,547 | ||
Commitments and contingencies (Note 7) | ||||||
Net Assets | $ | 108,022,022 | $ | 80,262,957 | ||
NET ASSETS | ||||||
Common shares of beneficial interest, par value $0.01 per share (unlimited shares authorized; 7,102,136 and 5,483,433 issued and outstanding, respectively) | $ | 71,021 | $ | 54,834 | ||
Paid-in capital | 104,810,048 | 80,950,845 | ||||
Total distributable earnings (loss) | 3,140,953 | (742,722) | ||||
Net Assets | $ | 108,022,022 | $ | 80,262,957 | ||
Total Liabilities and Net Assets | $ | 211,223,337 | $ | 174,394,504 | ||
Net Asset Value Per Share | $ | 15.21 | $ | 14.64 | ||
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended | |||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||
INVESTMENT INCOME | |||||||||
Interest income | $ | 22,760,669 | $ | 7,804,783 | $ | - | |||
Other income | 601,776 | 152,173 | - | ||||||
Total Investment Income | $ | 23,362,445 | $ | 7,956,956 | $ | - | |||
OPERATING EXPENSES | |||||||||
Management fees | $ | 2,833,601 | $ | 1,335,054 | $ | - | |||
Income incentive fees | 2,097,153 | 686,398 | - | ||||||
Capital gains incentive fee | 261,684 | - | - | ||||||
Professional fees | 670,800 | 447,045 | 70,800 | ||||||
Organization costs | 1,000 | 90,184 | 416,553 | ||||||
Amortization of deferred offering costs | 165,937 | 240,152 | - | ||||||
Administrative services expenses | 417,573 | 226,489 | - | ||||||
Trustees' fees | 160,000 | 158,000 | 42,000 | ||||||
Insurance expense | 81,438 | 82,045 | - | ||||||
Valuation fees | 40,324 | 5,519 | - | ||||||
Interest expense and other fees | 8,225,528 | 2,312,701 | - | ||||||
Income tax expense | 44,925 | 7,471 | - | ||||||
Other general and administrative expenses | 142,294 | 120,343 | 3,492 | ||||||
Total Operating Expenses | $ | 15,142,257 | $ | 5,711,401 | $ | 532,845 | |||
Expenses reimbursed/fees waived by Investment Advisor (Note 2) | $ | (4,101,044) | $ | (1,952,196) | $ | - | |||
Net Operating Expenses | $ | 11,041,213 | $ | 3,759,205 | $ | 532,845 | |||
Net Investment Income | $ | 12,321,232 | $ | 4,197,751 | $ | (532,845) | |||
Net realized gain on non-controlled, non-affiliated investments | $ | 841,075 | $ | - | $ | - | |||
Net realized gain on foreign currency translation | 24,343 | 1,950 | - | ||||||
Provision for taxes on realized gain on investments | (142,988) | - | - | ||||||
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments | 2,566,523 | (538,883) | - | ||||||
Net change in unrealized appreciation on foreign currency translations | 11,719 | 20,961 | - | ||||||
Provision for taxes on net unrealized gain on investments | (167,865) | - | - | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 15,454,039 | $ | 3,681,779 | $ | (532,845) | |||
Net Investment Income Per Share?-?basic and diluted | $ | 1.96 | $ | 1.08 | $ | N/A | |||
Net Increase in Net Assets Resulting from Operations Per Share?-?basic and diluted | $ | 2.46 | $ | 0.95 | $ | N/A | |||
Weighted Average Common Shares of Beneficial Interest Outstanding?-?basic and diluted | 6,273,882 | 3,869,643 | N/A | ||||||
Distributions Per Share?-?basic and diluted | $ | 1.88 | $ | 1.11 | $ | N/A | |||
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Common Shares of | ||||||||||||||
Beneficial Interest | Total | |||||||||||||
Number of | Par | Paid-in | distributable | |||||||||||
shares | value | capital | (loss) gain | Net Assets | ||||||||||
Balances at December 31, 2020 | - | $ | - | $ | - | $ | - | $ | - | |||||
Net investment loss | - | - | - | (532,845) | (532,845) | |||||||||
Balances at December 31, 2021 | - | $ | - | $ | - | $ | (532,845) | $ | (532,845) | |||||
Net investment income | - | - | - | 4,197,751 | 4,197,751 | |||||||||
Net realized gain on foreign currency translation | - | - | - | 1,950 | 1,950 | |||||||||
Net change in unrealized depreciation on non-controlled, non-affiliated investments | - | - | - | (538,883) | (538,883) | |||||||||
Net change in unrealized appreciation on foreign currency translations | - | - | - | 20,961 | 20,961 | |||||||||
Return of capital and other tax related adjustments | - | - | (388,214) | 388,214 | - | |||||||||
Distributions from net investment income | - | - | - | (4,279,870) | (4,279,870) | |||||||||
Issuance of common shares of beneficial interest | 5,483,433 | 54,834 | 81,339,059 | - | 81,393,893 | |||||||||
Balances at December 31, 2022 | 5,483,433 | $ | 54,834 | $ | 80,950,845 | $ | (742,722) | $ | 80,262,957 | |||||
Net investment income | - | - | - | 12,321,232 | 12,321,232 | |||||||||
Net realized gain on non-controlled, non-affiliated investments | - | - | - | 841,075 | 841,075 | |||||||||
Net realized gain on foreign currency translation | - | - | - | 24,343 | 24,343 | |||||||||
Provision for taxes on realized gain on investments | - | - | - | (142,988) | (142,988) | |||||||||
Net change in unrealized appreciation on non-controlled, non-affiliated investments | - | - | - | 2,566,523 | 2,566,523 | |||||||||
Net change in unrealized appreciation on foreign currency translations | - | - | - | 11,719 | 11,719 | |||||||||
Provision for taxes on net unrealized gain on investments | - | - | - | (167,865) | (167,865) | |||||||||
Return of capital and other tax related adjustments | - | - | (197,724) | 197,724 | - | |||||||||
Distributions from net investment income | - | - | - | (11,768,088) | (11,768,088) | |||||||||
Issuance of common shares of beneficial interest | 1,618,703 | 16,187 | 24,056,927 | - | 24,073,114 | |||||||||
Balances at December 31, 2023 | 7,102,136 | $ | 71,021 | $ | 104,810,048 | $ | 3,140,953 | $ | 108,022,022 | |||||
STELLUS PRIVATE CREDIT BDC
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the period | |||||||||
For the | from Inception | ||||||||
year ended | through | ||||||||
December 31, 2023 | December 31, 2022 | December 31, 2022 | |||||||
Cash Flows from Operating Activities | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 15,454,039 | $ | 3,681,779 | $ | (532,845) | |||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | |||||||||
Purchases of investments | (89,322,601) | (168,326,016) | - | ||||||
Proceeds from sales and repayments of investments | 42,260,585 | 10,474,408 | - | ||||||
Net change in unrealized (appreciation) depreciation on investments | (2,566,523) | 538,883 | - | ||||||
Net change in unrealized appreciation foreign currency translations | (11,719) | (20,961) | - | ||||||
Increase in investments due to PIK | (129,990) | - | - | ||||||
Amortization of premium and accretion of discount, net | (502,109) | (198,065) | - | ||||||
Deferred tax provision | 167,865 | - | - | ||||||
Amortization of loan structure fees | 586,127 | 478,626 | - | ||||||
Amortization of deferred offering costs | 165,937 | 240,152 | - | ||||||
Net realized gain on investments | (841,075) | - | - | ||||||
Changes in other assets and liabilities | |||||||||
Increase in interest receivable | (465,307) | (1,030,274) | - | ||||||
Increase in deferred offering costs | - | - | (139,570) | ||||||
Increase in related party receivable | (152,835) | (9,620) | - | ||||||
Decrease (increase) in expense reimbursements receivable from the Advisor | 39,099 | (165,638) | - | ||||||
Decrease (increase) in prepaid expenses | 5,985 | (39,356) | (93,648) | ||||||
(Decrease) increase in due to affiliate | - | (460,085) | 460,085 | ||||||
Increase in professional fees payable | - | - | 263,978 | ||||||
(Decrease) increase in trustees' fees payable | - | (42,000) | 42,000 | ||||||
Increase in administrative services payable | 58,894 | 66,064 | - | ||||||
(Decrease) increase in interest payable | (196,148) | 563,241 | - | ||||||
Increase in income incentive fees payable | 111,658 | 328,196 | - | ||||||
Increase in capital gains incentive fees payable | 261,684 | - | - | ||||||
Increase in unearned revenue | 357,904 | 539,634 | - | ||||||
Increase in income tax payable | 175,018 | 7,471 | - | ||||||
Increase (decrease) in other accrued expenses and liabilities | 57,975 | (144,704) | - | ||||||
Net Cash Used in Operating Activities | $ | (34,485,537) | $ | (153,518,265) | $ | - | |||
Cash Flows from Financing Activities | |||||||||
Proceeds from issuance of common shares of beneficial interest | $ | 24,073,114 | $ | 81,393,893 | $ | - | |||
Offering costs paid for common shares of beneficial interest issued | (184,418) | (154,976) | - | ||||||
Stockholder distributions paid | (10,026,553) | (2,470,337) | - | ||||||
Borrowings under Credit Facilities | 169,750,000 | 124,762,500 | - | ||||||
Repayments of Credit Facilities | (152,365,000) | (44,147,500) | - | ||||||
Financing costs paid on Credit Facilities | (387,744) | (1,645,492) | - | ||||||
Short-term loan borrowings | 4,500,000 | 11,250,000 | |||||||
Short-term loan repayments | (15,750,000) | - | - | ||||||
Net Cash Provided by Financing Activities | $ | 19,609,399 | $ | 168,988,088 | $ | - | |||
Net (Decrease) Increase in Cash and Cash Equivalents | $ | (14,876,138) | $ | 15,469,823 | $ | - | |||
Cash and Cash Equivalents Balance at Beginning of Period | 15,469,823 | - | - | ||||||
Cash and Cash Equivalents Balance at End of Period | $ | 593,685 | $ | 15,469,823 | $ | - | |||
Supplemental and Non-Cash Activities | |||||||||
Cash paid for interest expense | $ | 7,835,549 | $ | 1,270,834 | $ | - | |||
Income and excise tax paid | 12,895 | - | - | ||||||
Value of common shares of beneficial interest issued pursuant to Dividend Reinvestment Plan | 623,113 | 43,894 | - | ||||||
Increase in dividends payable | 5,360,601 | 1,809,533 | - | ||||||
SOURCE Stellus Private Credit BDC
