Stellus Capital Investment provided a Q2/20 update prior to reporting second quarter results later in July.
According to the update, all borrowers that were on accrual status at April 1 made their required payments during the second quarter and no new non-accruals have been added since April 1. The company also announced a $0.25 per share dividend for the quarter and that net asset value is expected to increase for the second quarter based on tightening credit spreads since March 31.
Stellus also reported that borrowings under its credit facility at June 30 were $185 million, a decline of $25 million since March 31, with approximately $45 million of unused borrowing capacity. In addition, the company reported cash balances at June 30 were approximately $23 million, of which approximately $19.5 million was at the SBIC subsidiaries, while unfunded commitments were approximately $27.6 million at June 30.
Stellus expects to report second quarter results on July 31.
Stellus 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. The company primarily invests in private middle-market companies (typically those with $5 million to $50 million of EBITDA) through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments.
