Press Release: Stellus Private Credit BDC Reports Results for Its Second Fiscal Quarter Ended June 30, 2026

Dow Jones
Aug 13

HOUSTON, Aug. 12, 2026 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC", "we", or the "Company") today announced financial results for its fiscal quarter June 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated, "We are pleased to report solid operating results in the second quartert in which we generated $0.28 per share of net investment income and increased net asset value. During the quarter, we funded $37 million of investments and received $26 million of repayments, bringing the total portfolio to $420 million at fair value. On July 16, 2026, we declared our 2026 third quarter monthly dividend of $0.31 per share in the aggregate."

 
FINANCIAL HIGHLIGHTS 
------------------------------- 
($ in millions, except data 
relating to per share amounts 
and shares outstanding) 
 
                                             Three Months Ended 
                                  ---------------------------------------- 
                                     June 30, 2026        June 30, 2025 
                                  Amount   Per Share   Amount   Per Share 
                                  -------  ----------  -------  ---------- 
Net investment income               $3.70       $0.28    $3.65       $0.33 
Net realized gain on investments   (3.79)      (0.29)     0.07        0.01 
Net unrealized appreciation 
 included in earnings                6.25        0.47     1.04        0.09 
Provision for taxes on net 
 unrealized appreciation on 
 investments                       (0.23)      (0.01)   (0.02)          -- 
Net increase in net assets 
 resulting from operations          $5.93       $0.45    $4.74       $0.43 
Distributions                      (4.48)      (0.34)   (3.93)      (0.36) 
Net asset value                   $209.14      $15.25  $170.17      $15.29 
Weighted average shares 
 outstanding                               13,187,428           10,935,215 
 
 
PORTFOLIO ACTIVITY 
--------------------------------------- 
($ in millions) 
 
                                              As of            As of 
                                          June 30, 2026  December 31, 2025 
                                          -------------  ----------------- 
Investments at fair value                        $419.5             $400.1 
Total assets                                     $427.5             $404.7 
Net assets                                       $209.1             $199.6 
Shares outstanding                           13,716,206         13,121,397 
Net asset value per share                        $15.25             $15.21 
 
                                                 Three Months Ended 
                                          -------------------------------- 
                                          June 30, 2026    June 30, 2025 
                                          -------------  ----------------- 
New investments                                   $36.7              $14.4 
Repayments of investments                        (25.7)             (10.2) 
                                          -------------  ----------------- 
Net activity                                      $11.0               $4.2 
 
                                              As of            As of 
                                          June 30, 2026  December 31, 2025 
                                          -------------  ----------------- 
Number of portfolio company investments              77                 74 
Number of debt investments                           72                 71 
 
Weight average yield of debt and other 
income producing investments(1) 
Cash                                              8.6 %              9.3 % 
Payment-in-kind ("PIK")                           0.5 %              0.1 % 
Fee amortization                                  0.4 %              0.4 % 
                                          -------------  ----------------- 
Total                                             9.5 %              9.8 % 
 
Weighted average yield on total 
investments(2) 
Cash                                              8.2 %              9.0 % 
PIK                                               0.5 %              0.1 % 
Fee amortization                                  0.3 %              0.3 % 
                                          -------------  ----------------- 
Total                                             9.0 %              9.4 % 
 
 
____________________ 
(1)  The dollar-weighted average annualized effective yield is computed using 
     the effective interest rate for the Company's 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. 
(2)  The dollar weighted average yield on total investments takes the same 
     yields as calculated in the footnote above, but weights such yields to 
     determine the weighted average effective yield as a percentage of the 
     Company's total investments, including non-income producing equity 
     positions and debt investments on non-accrual status. 
 

Results of Operations

Investment income for the three months ended June 30, 2026 and 2025 totaled $9.7 million and $8.7 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $6.7 million and $5.8 million, respectively. For the same periods, base management fees totaled $1.5 million and $1.2 million, income incentive fees totaled $0.6 million and $0.7 million, respectively; capital gains incentive (reversals) fees of $0.2 million and $0.1 million, which are not currently payable, respectively; fees and expenses related to the Company's borrowings totaled $3.8 million and $3.2 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.3 million and $0.2 million, respectively and other expenses totaled $0.3 million and $0.4 million, respectively. For the three months ended June 30, 2026 and 2025, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.5 million and $0.4 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 less than $0.1 million of expenses pursuant to expense support and conditional reimbursements from the Advisor for both periods, for net operating expenses of $6.0 million and $5.1 million, respectively.

For the three months ended June 30, 2026 and 2025, net investment income was $3.7 million and $3.6 million, or $0.28 and $0.33 per common share based on weighted average common shares outstanding of 13,187,428 and 10,935,215, respectively.

The Company's investment portfolio had a net change in unrealized (depreciation) appreciation of $6.3 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026 and 2025, net increase in net assets resulting from operations totaled $5.9 million and $4.7 million, or $0.45 and $0.43 per common share, based on weighted average common shares outstanding of 13,187,428 and 10,935,215, 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"). The Credit Facility, as amended, provides for borrowings up to a maximum of $300.0 million on a committed basis. As of June 30, 2026 and December 31, 2025, the Company had $141.0 million and $128.6 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") 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"). The SPV Facility, as amended, provides for $75.0 million of initial commitments with an accordion feature that allows for an additional $25.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As of both June 30, 2026 and December 31, 2025, the Company had $75.0 million in outstanding borrowings under the SPV Facility.

For the three months ended June 30, 2026, the Company sold 121,833 common shares of beneficial interest at a weighted-average price of $15.12 per share for aggregate net proceeds of $1.9 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, 2026. Additionally, for the three months ended June 30, 2026, the Company called $15.0 million pursuant to capital draw down subscription agreements between the Company and its shareholders. The transaction resulted in the issuance of 991,628 common shares of beneficial interest at a weighted-average price of $15.13 per share. Lastly, the Company purchased 390,667 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, 2026 at a price equal to $15.13 per Share for an aggregate purchase price of approximately $5.9 million.

Distributions

During the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.36, respectively ($4.5 million and $3.9 million in the aggregate, respectively. 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, 2026:

 
 Activity                                    Company       Investment    Instrument 
   Type        Date      Company Name      Description       Amount         Type 
-----------   ------   ----------------   --------------   -----------  ----------- 
               April                         Locum tenens                Senior 
New             3,       VeloSource           staffing                   Secured -- 
 Investment     2026      Purchaser, LLC      agency        $ 7,800,000  First Lien 
                                                           $   100,000  Delayed 
                                                                        Draw Term 
                                                                        Loan 
                                                                        Commitment 
                                                           $   100,000  Revolver 
                                                                        Commitment 
                                                           $   372,093  Equity 
New            April     Solomon             An             $ 2,712,573  Senior 
 Investment     13,       AcquisitionCo,      innovative                 Secured -- 
                2026      LLC                 process                    First Lien 
                                              automation 
                                              and digital 
                                              systems 
                                              integrator 
                                                           $   100,000  Revolver 
                                                                        Commitment 
                                                           $   122,286  Equity 
New            April     OW RSG LLC          Manufacturer   $ 6,500,000  Senior 
 Investment     27,                           of walk-in                 Secured -- 
                2026                          coolers,                   First Lien 
                                              freezers, 
                                              and 
                                              refrigerati 
                                              on systems 
                                                           $   100,000  Delayed 
                                                                        Draw Term 
                                                                        Loan 
                                                                        Commitment 
                                                           $   100,000  Revolver 
                                                                        Commitment 
                                                           $   516,975  Equity 
Add-On         May 11,   Channel Partners    Provider of    $ 1,000,000  Senior 
 Investment     2026      Intermediateco,     outsourced                 Secured -- 
                          LLC*                marketing                  First Lien 
                                              services 
Add-On         June 1,   WER Holdings,       Regional       $ 1,201,513  Senior 
 Investment     2026      LLC*                provider of                Secured -- 
                                              commercial                 First Lien 
                                              landscaping 
                                              services 
                                                           $   787,878  Delayed 
                                                                        Draw Term 
                                                                        Loan 
                                                                        Commitment 
Add-On         June      Monarch             Provider of    $    23,201  Convertible 
 Investment     29,       Behavioral          center-base                Promissory 
                2026      Therapy, LLC*       d applied                  Note 
                                              behavioral 
                                              analysis 
                                              therapy 
                                              services 
Add-On         June      Valor Buyco LLC*    Provider of    $   100,000  Delayed 
 Investment     30,                           dispatched                 Draw Term 
                2026                          road                       Loan 
                                              services                   Commitment 
 
 
____________________ 
*  Existing portfolio company 
 

The Company realized the following portfolio companies for the three months ended June 30, 2026:

 
 Activity              Company       Company        Proceeds    Instrument 
   Type       Date      Name       Description      Received    Type 
----------   ------   ---------   --------------   ----------  ----------- 
                                     Provider of 
                                      equine 
                                      competition 
                                      s, content, 
              April     Equine        products,                 Senior 
Full           24,       Network,     and                       Secured -- 
 Repayment     2026      LLC          services      $4,082,857  First Lien 
                                                   $  363,743  Delayed 
                                                               Draw Term 
                                                               Loan 
                                                               Commitment 
                                                   $  353,198  Revolver 
                                                               Commitment 
Full          April     Cerebro      Manufacturer   $2,043,731  Senior 
 Repayment     30,       Buyer,       of                        Secured -- 
               2026      LLC          single-use                First Lien 
                                      electrodes 
                                      for medical 
                                      procedures 
                                                   $  170,166  Delayed 
                                                               Draw Term 
                                                               Loan 
                                                               Commitment 
Full          June      Tilley       Distributor    $2,666,849  Senior 
 Repayment     30,       Company      of                        Secured -- 
               2026                   specialty                 First Lien 
                                      chemicals, 
                                      oils, and 
                                      lubricants 
                                      into the 
                                      food & 
                                      beverage, 
                                      lubricants, 
                                      flavor and 
                                      fragrances, 
                                      personal 
                                      care, and 
                                      other 
                                      chemicals 
                                      end-markets 
                                                   $  128,683  Revolver 
                                                               Commitment 
 

Events Subsequent to June 30, 2026

The Company's management has evaluated subsequent events through August 12, 2026. 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, 2026:

 
Activity Type     Date     Company Name    Company Description     Investment Amount   Instrument Type 
--------------   -------   -------------   --------------------   -------------------  --------------- 
                             Blade            Regional provider 
                              Landscape        of commercial 
Add-On            July 2,     Investments,     landscaping 
 Investment        2026       LLC*             services            $             2,250  Equity 
New Investment    July 16,   Emergent         Microsoft-centric    $         2,246,180  Senior Secured 
                   2026       Software         data, AI, and                            -- First Lien 
                                               cloud IT services 
                                               partner 
                                                                  $         1,871,817  Delayed Draw 
                                                                                       Term Loan 
                                                                                       Commitment 
                                                                  $           500,000  Revolver 
                                                                                       Commitment 
                                                                  $           222,653  Equity 
New Investment    August     LJ Welding       Manufacturer of      $         6,969,323  Senior Secured 
                   5,         Automation       material handling                        -- First Lien 
                   2026       Ltd.             and welding 
                                               automation 
                                               systems 
                                                                  $           500,000  Revolver 
                                                                                       Commitment 
                                                                  $           276,642  Equity 
 
 
____________________ 
*  Existing portfolio company 
 

The Company realized the following portfolio companies subsequent to June 30, 2026:

 
Activity                                 Company        Proceeds     Instrument 
Type         Date    Company Name        Description    Received     Type 
----------   -----   -----------------   ------------   ----------  ----------- 
                                            Lifestyle 
              July                           home                    Senior 
Full           27,     MacKenzie-Childs      déco               Secured -- 
 Repayment     2026     Acquisition, Inc.    r brand     $8,116,861  First Lien 
 

Credit Facilities

As of August 12, 2026, the outstanding balances under the Credit Facility and SPV Facility were $141.3 million and $75.0 million, respectively.

Distributions Declared

On July 16, 2026 the Board declared a regular monthly dividend for each of July, August and September 2026 as follows:

 
               Record      Payment      Amount per 
Declared        Date         Date         Share 
----------   ----------   ----------   ------------ 
7/16/2026       7/17/2026   7/31/2026    $    0.1033 
7/16/2026        8/3/2026   8/31/2026    $    0.1033 
7/16/2026        9/1/2026   9/30/2026    $    0.1033 
 

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. Stellus Private BDC Advisor, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the Securities and Exchange Commission for additional information.

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

thuskinson@stelluscapital.com

 
                        STELLUS PRIVATE CREDIT BDC 
            CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES 
 
                                       June 30, 2026 
                                        (unaudited)     December 31, 2025 
                                      ---------------  ------------------- 
ASSETS 
 Non-controlled, affiliated 
  investments, at fair value 
  (amortized cost of $12,395,473)      $   12,323,944   $               -- 
 Non-controlled, non-affiliated 
  investments, at fair value 
  (amortized cost of $397,729,677 
  and $396,791,982, respectively)         407,203,257          400,131,924 
 Cash and cash equivalents                  4,743,164            2,586,895 
 Other receivable                              94,951                   -- 
 Interest receivable                        1,604,128            1,765,379 
 Expense reimbursement receivable 
  from the Advisor (Note 2)                    31,822                2,580 
 Deferred offering costs                       36,097               60,993 
 Prepaid expenses                              96,446               13,632 
 Receivable for sales and repayments 
  of investments                            1,320,742              165,651 
                                          -----------      --------------- 
 Total Assets                          $  427,454,551   $      404,727,054 
                                          -----------      --------------- 
LIABILITIES 
 Credit Facilities payable             $  213,126,583   $      200,281,671 
 Related party payable                         10,310                   -- 
 Unearned revenue                           1,056,236            1,207,706 
 Management fees payable                    1,009,641              908,154 
 Income incentive fee payable                 498,025              544,620 
 Capital gains incentive fee payable          720,247              527,603 
 Interest payable                             776,186              865,205 
 Administrative services payable              193,755              189,715 
 Income tax payable                            61,800              126,348 
 Deferred tax liability                       708,155              338,611 
 Other accrued expenses and 
  liabilities                                 150,221              110,706 
                                          -----------      --------------- 
 Total Liabilities                     $  218,311,159   $      205,100,339 
                                          -----------      --------------- 
 Commitments and contingencies 
 (Note 7) 
                                          -----------      --------------- 
 Net Assets                            $  209,143,392   $      199,626,715 
                                          ===========      =============== 
NET ASSETS 
 Common shares of beneficial 
  interest, par value $0.01 per 
  share (unlimited shares 
  authorized; 13,716,206 and 
  13,121,397 issued and outstanding, 
  respectively)                        $      137,162   $          131,214 
 Paid-in capital                          204,932,861          195,935,870 
 Total distributable earnings               4,073,369            3,559,631 
                                          -----------      --------------- 
 Net Assets                            $  209,143,392   $      199,626,715 
                                          -----------      --------------- 
 Total Liabilities and Net Assets      $  427,454,551   $      404,727,054 
                                          -----------      --------------- 
 Net Asset Value Per Share             $        15.25   $            15.21 
                                          ===========      =============== 
 
 
                              STELLUS PRIVATE CREDIT BDC 
                  CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) 
 
                           Three Months Ended                 Six Months Ended 
                    --------------------------------  -------------------------------- 
                     June 30, 2026    June 30, 2025    June 30, 2026    June 30, 2025 
                    ---------------  ---------------  ---------------  --------------- 
INVESTMENT INCOME 
From 
non-controlled, 
affiliated 
investments 
 Interest income     $          672   $           --   $          672   $           -- 
 Other income                     5               --                5               -- 
From 
non-controlled, 
non-affiliated 
investments 
 Interest income          9,540,879        8,539,390       18,770,010       16,442,548 
 Other income               175,968          199,844          438,717          347,545 
                        -----------      -----------      -----------      ----------- 
 Total Investment 
  Income             $    9,717,524   $    8,739,234   $   19,209,404   $   16,790,093 
                        -----------      -----------      -----------      ----------- 
OPERATING 
EXPENSES 
 Management fees     $    1,514,461   $    1,196,103   $    2,958,030   $    2,231,932 
 Income incentive 
  fee                       632,714          625,799        1,288,621        1,204,114 
 Capital gains 
  incentive fee             223,137          109,594          192,644          272,733 
 Professional fees          161,219          201,789          411,272          381,838 
 Amortization of 
  deferred 
  offering costs             22,753           63,147           54,493          132,981 
 Administrative 
  services 
  expenses                  251,274          158,184          487,560          301,183 
 Trustees' fees              40,000           40,000           80,000           80,000 
 Insurance expense           10,676           22,126           30,567           44,010 
 Valuation fees               7,167            3,904           58,044           42,609 
 Interest expense 
  and other fees          3,781,773        3,241,210        7,331,821        6,257,771 
 Income tax 
  expense                     3,910           14,758           46,251           17,107 
 Other general and 
  administrative 
  expenses                  126,203           68,485          203,935          145,355 
                        -----------      -----------      -----------      ----------- 
 Total Operating 
  Expenses           $    6,775,287   $    5,745,099   $   13,143,238   $   11,111,633 
                        -----------      -----------      -----------      ----------- 
 Expenses 
  reimbursed/fees 
  waived by 
  Advisor (Note 
  2)                 $    (754,187)   $    (651,064)   $  (1,596,187)   $  (1,273,490) 
                        -----------      -----------      -----------      ----------- 
 Net Operating 
  Expenses           $    6,021,100   $    5,094,035   $   11,547,051   $    9,838,143 
                        -----------      -----------      -----------      ----------- 
 Net Investment 
  Income             $    3,696,424   $    3,645,199   $    7,662,353   $    6,951,950 
                        ===========      ===========      ===========      =========== 
 Net realized 
  (loss) gain on 
  non-controlled, 
  non-affiliated 
  investments        $  (3,810,360)   $       67,495   $  (3,810,360)   $       67,495 
 Net realized gain 
  on foreign 
  currency 
  translation                20,045            4,798           44,239            6,419 
 Net change in 
 unrealized 
 appreciation on 
 non-controlled, 
 affiliated 
 investments                176,952               --               --               -- 
 Net change in 
  unrealized 
  appreciation on 
  non-controlled, 
  non- affiliated 
  investments             6,073,595        1,024,545        6,080,638        2,205,337 
 Net change in 
  unrealized 
  (depreciation) 
  appreciation on 
  foreign currency 
  translations              (1,686)           22,698         (18,527)           35,732 
 (Provision) 
  benefit for 
  taxes on net 
  unrealized 
  (gain) loss on 
  investments             (227,175)         (23,593)        (369,546)           38,266 
                        -----------      -----------      -----------      ----------- 
 Net Increase in 
  Net Assets 
  Resulting from 
  Operations         $    5,927,795   $    4,741,142   $    9,588,797   $    9,305,199 
                        ===========      ===========      ===========      =========== 
 Net Investment 
  Income Per Share 
  -- basic and 
  diluted            $         0.28   $         0.33   $         0.58   $         0.64 
                        ===========      ===========      ===========      =========== 
 Net Increase in 
  Net Assets 
  Resulting from 
  Operations Per 
  Share -- basic 
  and diluted        $         0.45   $         0.43   $         0.73   $         0.86 
                        ===========      ===========      ===========      =========== 
 Weighted Average 
  Common Shares of 
  Beneficial 
  Interest 
  Outstanding -- 
  basic and 
  diluted                13,187,428       10,935,215       13,150,920       10,851,870 
                        -----------      -----------      -----------      ----------- 
 Distributions Per 
  Share -- basic 
  and diluted        $         0.34   $         0.36   $         0.69   $         0.72 
                        ===========      ===========      ===========      =========== 
 
 
                              STELLUS PRIVATE CREDIT BDC 
             CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) 
 
                       Common Shares of 
                      Beneficial Interest                      Total 
                     --------------------- 
                      Number of     Par       Paid-in      distributable 
                       shares      value      capital          gain         Net Assets 
                     -----------  --------  ------------  ---------------  ------------ 
Balances at 
 December 31, 2024    10,715,095  $107,151  $159,483,435   $    2,797,294  $162,387,880 
Net investment 
 income                       --        --            --        3,306,751     3,306,751 
Net realized gain 
 on foreign 
 currency 
 translation                  --        --            --            1,621         1,621 
Net change in 
 unrealized 
 appreciation on 
 non-controlled, 
 non-affiliated 
 investments                  --        --            --        1,180,792     1,180,792 
Net change in 
 unrealized 
 appreciation on 
 foreign currency 
 translations                 --        --            --           13,034        13,034 
Provision for taxes 
 on net unrealized 
 gain on 
 investments                  --        --            --           61,859        61,859 
Distributions from 
 net investment 
 income                       --        --            --      (3,881,841)   (3,881,841) 
Issuance of common 
 shares of 
 beneficial 
 interest                158,226     1,582     2,406,248               --     2,407,830 
                     -----------   -------   -----------      -----------   ----------- 
Balances at 
 March 31, 2025       10,873,321  $108,733  $161,889,683   $    3,479,510  $165,477,926 
                     ===========   =======   ===========      ===========   =========== 
Net investment 
 income                       --        --            --        3,645,199     3,645,199 
Net realized gain 
 on investments               --        --            --           67,495        67,495 
Net realized gain 
 on foreign 
 currency 
 translation                  --        --            --            4,798         4,798 
Net change in 
 unrealized 
 appreciation on 
 non-controlled, 
 non-affiliated 
 investments                  --        --            --        1,024,545     1,024,545 
Net change in 
 unrealized 
 appreciation on 
 foreign currency 
 translations                 --        --            --           22,698        22,698 
Provision for taxes 
 on net unrealized 
 gain on 
 investments                  --        --            --         (23,593)      (23,593) 
Distributions from 
 net investment 
 income                       --        --            --      (3,934,324)   (3,934,324) 
Issuance of common 
 shares of 
 beneficial 
 interest                276,357     2,764     4,220,720               --     4,223,484 
Redemption of 
 common shares of 
 beneficial 
 interest               (22,609)     (226)     (342,525)               --     (342,751) 
                     -----------   -------   -----------      -----------   ----------- 
Balances at 
 June 30, 2025        11,127,069  $111,271  $165,767,878   $    4,286,328  $170,165,477 
                     ===========   =======   ===========      ===========   =========== 
 
Balances at 
 December 31, 2025    13,121,397  $131,214  $195,935,870   $    3,559,631  $199,626,715 
                     ===========   =======   ===========      ===========   =========== 
Net investment 
 income                       --        --            --        3,965,929     3,965,929 
Net realized gain 
 on foreign 
 currency 
 translation                  --        --            --           24,194        24,194 
Net change in 
 unrealized 
 depreciation on 
 non-controlled, 
 non-affiliated 
 investments                  --        --            --        (169,909)     (169,909) 
Net change in 
 unrealized 
 depreciation on 
 foreign currency 
 translations                 --        --            --         (16,841)      (16,841) 
Provision for taxes 
 on net unrealized 
 gain on 
 investments                  --        --            --        (142,371)     (142,371) 
Distributions from 
 net investment 
 income                       --        --            --      (4,598,033)   (4,598,033) 
Issuance of common 
 shares of 
 beneficial 
 interest                208,966     2,090     3,188,141               --     3,190,231 
Redemption of 
 common shares of 
 beneficial 
 interest              (357,092)   (3,571)   (5,427,794)               --   (5,431,365) 
                     -----------   -------   -----------      -----------   ----------- 
Balances at 
 March 31, 2026       12,973,271  $129,733  $193,696,217   $    2,622,600  $196,448,550 
                     ===========   =======   ===========      ===========   =========== 
Net investment 
 income                       --        --            --        3,696,424     3,696,424 
Net realized loss 
 on investments               --        --            --      (3,810,360)   (3,810,360) 
Net realized gain 
 on foreign 
 currency 
 translation                  --        --            --           20,045        20,045 
Net change in 
 unrealized 
 appreciation on 
 non-controlled, 
 non-affiliated 
 investments                  --        --            --        6,250,547     6,250,547 
Net change in 
 unrealized 
 depreciation on 
 foreign currency 
 translations                 --        --            --          (1,686)       (1,686) 
Provision for taxes 
 on net unrealized 
 gain on 
 investments                  --        --            --        (227,175)     (227,175) 
Distributions from 
 net investment 
 income                       --        --            --      (4,477,026)   (4,477,026) 
Issuance of common 
 shares of 
 beneficial 
 interest              1,133,602    11,336    17,143,523               --    17,154,859 
Redemption of 
 common shares of 
 beneficial 
 interest              (390,667)   (3,907)   (5,906,879)               --   (5,910,786) 
                     -----------   -------   -----------      -----------   ----------- 
Balances at 
 June 30, 2026        13,716,206  $137,162  $204,932,861   $    4,073,369  $209,143,392 
                     ===========   =======   ===========      ===========   =========== 
 
 
                       STELLUS PRIVATE CREDIT BDC 
           CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) 
 
                                                  Six Months Ended 
                                            ---------------------------- 
                                            June 30, 2026  June 30, 2025 
                                            -------------  ------------- 
Cash Flows from Operating Activities 
Net increase in net assets resulting from 
 operations                                 $   9,588,797  $   9,305,199 
 Adjustments to reconcile net increase in 
 net assets from operations to net cash 
 used in operating activities: 
 Purchases of investments                    (64,027,298)   (51,138,817) 
 Proceeds from sales and repayments of 
  investments                                  46,946,394     14,439,508 
 Net change in unrealized appreciation on 
  investments                                 (6,080,638)    (2,205,337) 
 Net change in unrealized depreciation 
  (appreciation) foreign currency 
  translations                                     18,527       (35,732) 
 Increase in investments due to PIK             (629,431)      (197,732) 
 Amortization of premium and accretion of 
  discount, net                                 (588,282)      (473,368) 
 Deferred tax provision (benefit)                 369,544       (38,266) 
 Amortization of loan structure fees              514,180        267,785 
 Amortization of deferred offering costs           54,493        132,981 
 Net realized loss (gain) on investments        3,810,360       (67,495) 
 Changes in other assets and liabilities 
 Decrease (increase) in interest 
  receivable                                      161,251       (67,100) 
 (Increase) decrease in other receivable         (94,951)          4,340 
 Decrease in related party receivable                  --          2,004 
 (Increase) decrease in expense 
  reimbursements receivable from the 
  Advisor                                        (29,242)        117,709 
 (Increase) decrease in prepaid expenses         (82,814)         88,479 
 Increase in related party payable                 10,310             -- 
 Increase in administrative services 
  payable                                           4,040         22,066 
 (Decrease) increase in interest payable         (89,019)          7,898 
 Increase in income management fees 
  payable                                         101,487        149,253 
 (Decrease) increase in income incentive 
  fees payable                                   (46,595)         36,154 
 Increase in capital gain incentive fees 
  payable                                         192,644        272,733 
 (Decrease) increase in unearned revenue        (151,470)        246,852 
 Decrease in income tax payable                  (64,548)       (11,893) 
 Increase (decrease) in other accrued 
  expenses and liabilities                         39,515      (214,744) 
                                             ------------   ------------ 
Net Cash Used in Operating Activities       $(10,072,746)  $(29,357,523) 
                                             ------------   ------------ 
Cash Flows from Financing Activities 
 Proceeds from issuance of common shares 
  of beneficial interest                    $  20,345,090  $   6,631,314 
 Offering costs paid for common shares of 
  beneficial interest issued                     (29,597)       (96,081) 
 Purchase of common shares of beneficial 
  interest in tender offer                   (11,342,151)      (342,751) 
 Stockholder distributions paid               (9,075,059)    (7,816,165) 
 Borrowings under Credit Facilities            74,100,000     50,700,000 
 Repayments of Credit Facilities             (61,750,000)   (18,050,000) 
 Financing costs paid on Credit Facilities       (19,268)      (155,948) 
                                             ------------   ------------ 
Net Cash Provided by Financing Activities   $  12,229,015  $  30,870,369 
                                             ------------   ------------ 
Net Increase in Cash and Cash Equivalents   $   2,156,269  $   1,512,846 
                                             ------------   ------------ 
Cash and Cash Equivalents Balance at 
 Beginning of Period                            2,586,895      2,144,116 
                                             ------------   ------------ 
Cash and Cash Equivalents Balance at End 
 of Period                                  $   4,743,164  $   3,656,962 
                                             ============   ============ 
Supplemental and Non-Cash Activities 
 Cash paid for interest expense             $   6,906,660  $   5,982,088 
 Income and excise tax paid                       110,799         29,000 
 Value of common shares of beneficial 
  interest issued pursuant to Dividend 
  Reinvestment Plan                               666,090      1,185,787 
 Exchange of investments                        6,055,309             -- 
 

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