Q3 2024 Stellus Capital Investment Corp Earnings Call Transcript
Key Points
- Stellus Capital Investment Corp (SCM) reported a net asset value per share increase of $0.19 during the quarter due to net unrealized appreciation on its investment portfolio.
- The company has paid over $273 million in dividends to investors since its IPO, representing $16.28 per share for initial investors.
- Stellus Capital Investment Corp (SCM) successfully issued $14.6 million in shares through its ATM program at an average gross price above net asset value.
- The investment portfolio at fair value increased to $908.7 million across 99 portfolio companies, up from $899.7 million across 100 companies in the previous quarter.
- The company increased its bank facility by $55 million, enhancing its capacity to grow the portfolio to over a billion dollars.
- Net investment income was slightly below expectations and the dividend for the quarter, attributed to lower investment activity and a slight increase in non-accrual loans.
- The company experienced a decline in base rates, which impacted the yield and net investment income.
- There are currently loans to six portfolio companies that are non-accrual, comprising 4.7% of the fair value of the total loan portfolio.
- The portfolio size at the end of the third quarter was below the anticipated $930 million, ending closer to $900 million.
- The company noted a trend of spread compression in new opportunities, with spreads decreasing from the sixes to the fives, which could impact future yields.
Good day, ladies and gentlemen. And thank you for standing by.
At this time. I would like to welcome everyone to Stella's Capital Investment Corporation's conference call to report financial results for its third fiscal quarter ended September 30, 2024 (Operator Instructions).
This conference is being recorded today, November 8, 2024.
It is now my pleasure to turn the call over to Mr Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr Ladd. You may begin your conference.
Thank you Ali and good morning everyone and thank you for joining the call. Welcome to our conference call covering the quarter ended September 30 of this year.
Joining me this morning is Todd Huskinson, our Chief Financial Officer who will cover important information about forward-looking statements as well as an overview of our financial information.
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