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Associated Press
3 days ago
- Business
- Associated Press
Stellus Private Credit BDC Reports Results for its Second Fiscal Quarter Ended June 30, 2025
HOUSTON, Aug. 8, 2025 /PRNewswire/ -- Stellus Private Credit BDC ('Stellus PBDC', 'we', or the 'Company') today announced financial results for its second fiscal quarter ended June 30, 2025. Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated, 'We are pleased to report solid operating results in the second quarter in which we generated $0.33 per share of net investment income and maintained a stable net asset value. During the quarter, we funded $14 million of investments and received $10 million of repayments, bringing the total portfolio to $340 million at fair value. On July 2, 2025, we declared our 2025 third quarter monthly dividend of $0.38 per share in the aggregate, which represents an annualized dividend yield of approximately 10%.' Results of Operations Investment income for the three months ended June 30, 2025 and 2024 totaled $8.7 million and $6.9 million, respectively, most of which was interest income from portfolio investments. Gross operating expenses for the three months ended June 30, 2025 and 2024 totaled $5.8 million and $4.2 million, respectively. For the same periods, base management fees totaled $1.2 million and $0.8 million, income incentive fees totaled $0.7 million and $0.7 million, respectively; capital gains incentive fees (reversals) of $0.1 million and less than ($0.01) million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.2 million and $2.3 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.2 million and $0.1 million, respectively and other expenses totaled $0.4 million and $0.3 million, respectively. For the three months ended June 30, 2025 and 2024, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the 'Advisor'), waived $0.4 million and $0.8 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 $0.1 million and $0.1 million of expenses pursuant to expense support and conditional reimbursements from the Advisor, respectively, for net operating expenses of $5.1 million and $3.1 million, respectively. For the three months ended June 30, 2025 and 2024, net investment income was $3.6 million and $3.9 million, or $0.33 and $0.46 per common share based on weighted average common shares outstanding of 10,935,215 and 8,310,559, respectively. The Company's investment portfolio had a net change in unrealized appreciation of $1.0 million and ($0.4) million for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, net increase in net assets resulting from operations totaled $4.7 million and $3.4 million, or $0.43 and $0.41 per common share, based on weighted average common shares outstanding of 10,935,215 and 8,310,559, 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' and together with the Commitment Facility and SPV Facility, the 'Credit Facilities'). The Credit Facility, as amended, provides for borrowings up to a maximum of $195.0 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 June 30, 2025 and December 31, 2024, the Company had $123.1 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') for the SPV Facility 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 provides for $50.0 million of initial commitments with an accordion feature that allows for an additional $50.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As of both June 30, 2025 and December 31, 2024, the Company had $50.0 million in outstanding borrowings under the SPV Facility. During the three months ended June 30, 2025, the Company sold 254,910 common shares of beneficial interest at a weighted-average price of $15.22 per share for aggregate proceeds of $3.9 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, 2025. Additionally, 22,609 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, 2025. On April 3, 2025, the Company purchased approximately 22,609 shares of beneficial interest validly tendered and not withdrawn prior to the expiration of the applicable tender offer, at a price equal to $15.16 per Share for an aggregate purchase price of approximately $0.3 million. Distributions During the three months ended June 30, 2025 and 2024, the Company declared aggregate distributions of $0.36 per share and $0.50, respectively (million and $3.9 million and $4.1 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. 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 Activity The Company invested in the following portfolio companies for the three months ended June 30, 2025: Events Subsequent to June 30, 2025 The Company's management has evaluated subsequent events through August 8, 2025. 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 June 30, 2025: Credit Facilities The outstanding balance under the Credit Facility and SPV Facility as of August 8, 2025 was $145.1 million and $50.0 million, respectively. Distributions Declared On July 2, 2025, the Board declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows: Sale of Unregistered Securities Since June 30, 2025, the Company sold 33,859 common shares of beneficial interest at a price of $15.29 per share for aggregate proceeds of $0.5 million, which included less than $0.1 million of organizational expense allocation pursuant to subscription agreements entered into between the Company and investors. Share Repurchases On July 23, 2025, 141,271 common shares of beneficial interest were validly tendered and not withdrawn prior to the expiration of the tender offer. The Company purchased all common shares of beneficial interest validly tendered and not withdrawn prior to the expiration of the applicable tender offer, at a price equal to $15.29 per Share for an aggregate purchase price of approximately $2.2 million. 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 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. 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] View original content to download multimedia: SOURCE Stellus Private Credit BDC
Mint
4 days ago
- Business
- Mint
Blackstone Private Debt Fund Cuts Value of Largest Holding
(Bloomberg) -- A Blackstone Inc. fund further cut the value of a private credit loan for Thoma Bravo-backed software company Medallia Inc., revealing growing stress for its single largest investment. Blackstone's publicly traded business development company, Blackstone Secured Lending Fund, marked the loan at around 87 cents on the dollar as of June 30, according to a regulatory filing. The loan was marked at around 89 cents at the end of the first quarter, and around 94 cents the quarter before that. 'The company is underperforming our expectations and the mark reflects that,' Brad Marshall, the global head of private credit strategies for Blackstone Credit and Insurance, said on an earnings call for the BDC on Wednesday. Marshall responded to a question from an analyst, who said the mark evidenced 'some degree of stress.' The Blackstone fund's portion of the Medallia deal comes in at more than $380 million at par, but is currently valued at around $338 million, according to a filing. The loan made up 5.37% of the fund's net assets at the end of June, the filing shows. It's also one of the largest investments within Blackstone Private Credit Fund, a non-traded BDC, according to its website. 'I would say the sponsor's highly focused on it,' said Marshall, who is also the co-chief executive officer of the BDC. 'But the company's underperformed and that's why the mark is lower and we'll continue to, kind of, see what we can do with the asset.' A fund jointly run by KKR & Co. and Future Standard, formerly known as FS Investments, has also marked down the debt, valuing it at around 91 cents on the dollar as of the end of June, compared to around 95 cents the prior quarter, according to a separate filing. A fund managed by Onex Corp., another lender to the company, said that Medallia, along with two other companies, accounted for 64% of gross unrealized losses during the second quarter, its filings show. Representatives for Blackstone and KKR declined to comment on the markdowns, while Thoma Bravo and Onex didn't respond to requests for comment. Blackstone led a $1.8 billion debt package for Medallia in 2021, which supported Thoma Bravo's investment in the company. Other lenders to Medallia, which provides software to help manage customer and employee satisfaction surveys, include Apollo Global Management Inc., Antares Capital, HPS Investment Partners and Monroe Capital, according to filings. Many broadly syndicated loans are marked on a day-to-day basis, given the liquidity in that market. But, for private credit, there's often a lag between an asset's current performance and its valuation on paper, given many private credit funds only have to make disclosures to their investors on a quarterly basis. Last year, Veritas Capital attempted to reduce its exposure to the software business and was looking to trade out of the loan, Bloomberg News previously reported. Medallia hired Mark Bishof as its new chairman and CEO in January, following the exit of Joe Tyrrell in 2024, who had spent about a year in the role. The debt charges interest at 6.5 percentage points over the base rate, with 4 percentage points paid in kind, the filings show. Payment-in-kind features allow the borrower to defer paying interest in cash, often until the debt matures. The deal was structured as a so-called recurring-revenue loan, a financing avenue typically used by software companies that are still burning through cash to fund their expansion. --With assistance from Rene Ismail. (Updates with more lenders starting in sixth paragraph.) More stories like this are available on
Yahoo
6 days ago
- Business
- Yahoo
Main Street Capital Corporation (MAIN): A Bull Case Theory
We came across a bullish thesis on Main Street Capital Corporation on Investing Lawyer's Substack. In this article, we will summarize the bulls' thesis on MAIN. Main Street Capital Corporation's share was trading at $63.99 as of August 1st. MAIN's trailing and forward P/E were 10.85 and 15.60 respectively according to Yahoo Finance. A close-up of a hand signing a contract, symbolizing deals being made in private equity and buyouts. Main Street Capital (MAIN) is a leading Business Development Company (BDC) known for its reliable monthly dividend payments, offering investors steady income with a current yield of approximately 7.4%. This income-focused strategy appeals to investors seeking predictable cash flow. The company's strength lies in its diversified portfolio of middle-market investments and a disciplined capital allocation approach, which supports the sustainability and growth of its dividends over time. MAIN has an impressive track record of consistency, having never missed a dividend, and continues to prioritize high-quality, cash-generating businesses to enhance shareholder returns. The stock has demonstrated a stable trading pattern over recent years, moving within established trend lines, indicating resilience and investor confidence. While short-term price fluctuations may occur, MAIN is expected to maintain its upward momentum over the long term. Even in a scenario where the price corrects toward the $52–$55 range, technical indicators suggest a likely continuation of its positive trajectory thereafter. There are no strong signals of a prolonged downtrend, reinforcing the view of MAIN as a stable income-generating investment. In addition to its attractive yield, MAIN's unique feature of monthly dividends sets it apart from many peers, making it a compelling choice for investors seeking both stability and regular income. With its proven business model, focus on quality assets, and commitment to delivering shareholder value, MAIN offers a strong combination of income and potential price appreciation, making it a top pick for long-term, income-oriented portfolios. Previously, we covered a on McCormick & Company, Incorporated (MKC) by Investing Lawyer in February 2025, which highlighted its dividend growth consistency, defensive positioning, and key support levels near $70. The company's stock price has depreciated by approximately 13.91% since our coverage, as technical weakness persisted. The thesis still stands given MKC's strong fundamentals. Investing Lawyer shares a similar view on Main Street Capital but emphasizes its higher yield and monthly dividends. Main Street Capital Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MAIN at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the potential of MAIN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Time of India
03-08-2025
- Time of India
Poll loss blow? BDC candidate found dead, suicide suspected
Pithoragarh: A 54-year-old grocery shop owner who had contested and lost the recent panchayat elections in Pithoragarh district was found dead on Saturday evening, with police suspecting suicide. Lakshman Giri, a resident of Pithoragarh's Lelu village, had secured just 15 votes and placed last among five candidates for the post of block development committee (BDC) member from Lelu. A day after the results, he visited Wadda and was returning home in the evening when a local saw him vomiting and informed his family. His son Rohit rushed to the spot and found him unconscious. Giri was taken to the district hospital, where he died later that night. "Initial signs suggest he may have consumed poison. Suicide is suspected, but we're investigating all possible angles," said SHO Lalat Mohan Joshi of Pithoragarh police station. Police said Giri may have been shocked by the results, but added that other triggers, including personal and business-related issues, are also being looked into. Since Lelu falls under the jurisdiction of Jajardewal police station, the case has been transferred there. The body was handed over to the family after postmortem examination. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
Time of India
01-08-2025
- Politics
- Time of India
Uttarakhand panchayat election results: Coin toss, slip draws decide winners on counting day; young voices, folk icons lead surprise wins
DEHRADUN: Counting of votes for the three-tier panchayat elections held across 89 development blocks in 12 districts, excluding Haridwar, began Thursday and is still underway. With a voter turnout of 69.1%, slightly lower than in 2019, the polls have thrown up several nail-biting finishes, some decided by a single vote, others by coin tosses or lucky draws. In Kapkot block's gram panchayat Ramadi, a rare tie between candidates Dhana and Nirmala Devi, both securing 63 votes, led to a lucky draw with Nirmala emerging the winner. Another tight contest unfolded in Nainital's Kotabagh block, where the pradhan seat in the reserved Ghuggu Kham panchayat was decided by a coin toss. Both Nitin Negi and Lakshmi Devi received 43 votes each, and the toss favoured Negi. In Almora's Salt block, Rajni Devi won Chahaj panchayat seat by just one vote. Several young faces also made an impression. In Tehri's Jaunpur block, 21-year-old Priyanka Negi, a BA second-year student, won the pradhan post from Ganoli. In Nainital's Ramgarh block, 22-year-old Sakshi, pursuing an MA in political science, won the Block Development Committee (BDC) seat from Nathuakhan, defeating her nearest rival by 85 votes. In Almora's Salt block, Mamta Rautela, a BEd graduate, won the BDC seat from Thaukedar, securing 337 votes. Lakshman Kumar, popularly known as Lachhu Pahadi, became the state's shortest elected panchayat member after winning the BDC seat from Garhkhet in Bageshwar district. At 26, and standing three-and-a-half-feet tall, he secured 348 votes, ahead of Kailash Ram with 230, Pappu Lal with 227 and Pratap Ram with 181. Known for his work in Kumaoni theatre and cinema, Lachhu campaigned on horseback and connected with voters through folk performances and door-to-door visits. "My height may be short, but my courage and dreams are big. I will be the voice of every corner of my area," he said. Family political legacies were also on display. Deepika, daughter of Didihat MLA Bisan Singh Chufal, won from Bharkatiya in Pithoragarh. In Almora's Salt block, Kavita Devi defeated YouTuber Deepa Negi to win the pradhan seat. In Pauri's Pokhra block, Arvind, son of senior Congress leader Shoorveer Singh Sajwan, was elected pradhan from Chadiyaara panchayat. Other notable winners include Deepika Vohra, who won the BDC seat from Chhana Pande, and Sunita Joshi, elected from Patan Patni panchayat in Pithoragarh. While the final results are still coming in, early trends suggest a strong mix of youth, grassroots connect, legacy and luck shaping this round of panchayat elections.
