SCM
Stellus Capital Investment Corporation12.68
+0.12+0.96%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Reaffirms outlook, spotlights SBA capacity.
Q&A reinforced the scripted outlook of a flat-to-down portfolio in 2026 amid M&A slowdown, but highlighted SBA growth via $65 million new debenture capacity after repayments, plus a third license. No leverage shift despite buyback and Ridge Post deal, which promises deal flow by summer close. Management detailed bridge investments to nonaccruals Venbrook and Real Estate Services through rough patches; PIK up YoY but low-peer, tied to PE-backed relief resolving via exits. Energy exposure minimal; nonaccruals eyed for 12-18 month fixes. Public spreads widened; private may follow. Nonaccruals linger.
Key Stats
Market Cap
367.05MP/E (TTM)
11.63Basic EPS (TTM)
1.09Dividend Yield
0.13%Recent Filings
10-K
FY2025 results
Stellus Capital Investment Corporation's FY2025 portfolio grew to $1.01B across 115 companies, with 90% first-lien debt yielding 8.7% weighted average. Yet Q4 saw non-accruals at 4.1% of fair value, up from 5.4% year-end 2024, signaling quarterly credit stress amid falling rates. Net investment income fell to $36.9M from $41.9M, but asset coverage held at 203%. Portfolio turnover stayed low. Q4 accelerated repayments. Capital allocation focused on $20M ATM equity for debt paydown. SBA debentures fell to $299M. Capital markets volatility threatens quarterly momentum.
8-K
Adviser sale to P10 announced
Stellus Capital Investment's adviser, Stellus Capital Management, signed a definitive deal on February 5, 2026, for P10 to acquire it, triggering an investment advisory agreement termination and need for BDC shareholder approval of a new one with unchanged terms. Current partners retain control of operations and investments. Closing eyed for mid-2026, pending approvals. Continuity holds firm.
8-K
Full 2026 Notes redemption
Stellus Capital Investment Corporation announced on November 24, 2025, the full redemption of its remaining $50M 4.875% Notes due 2026 on December 31, 2025, at 100% of principal plus accrued interest and a make-whole premium. It already redeemed the other $50M on September 30. Debt fully cleared. This eliminates all 2026 Notes obligations.
10-Q
Q3 FY2025 results
Stellus Capital posted steady Q3 FY2025 results ended September 30, with total investment income dipping 1% y/y to $26.3M yet net investment income holding at $9.1M despite higher expenses from portfolio growth. Realized gains flipped to $2.9M from a $3.3M loss y/y, but unrealized depreciation hit $5.1M on non-accrual loans; nine-month net assets from operations fell to $21.8M from $37.2M. Portfolio hit $1.0B across 115 names, 89% first-lien, with leverage steady at $632M including $299M SBA debentures (net $296M) and $168M credit facility. Cash sits at $9M. Non-accruals weigh 3.7% of debt fair value. High-tech bets expose tech risks.
8-K
Issues $50M notes due 2030
Stellus Capital issued $50 million of 7.250% Notes due 2030 on September 25, 2025, boosting the total outstanding to $125 million alongside April's tranche. These unsecured notes, fungible with existing ones, carry semi-annual interest from October 1 and optional redemption before October 2029 at a Treasury-plus-50bps premium. Net proceeds repay part of the 2026 Notes. Debt stack lengthens.
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