Stellus Capital Investment Corporation Amends and Extends Its Revolving Credit Facility

Rhea-AI Summary

Stellus Capital Investment Corporation (NYSE: SCM) has amended and extended its $230 million Senior Secured Revolving Credit Agreement. The commitment termination date has been extended to September 18, 2024, with a final maturity of September 18, 2025. The revision includes a reduction in required asset coverage while pricing and advance rates remain unchanged, with the addition of a LIBOR floor of 0.25%. CEO Robert T. Ladd expressed appreciation for the support from its banking group amid COVID-19.

Positive

• Extended credit facility commitment to September 2024 enhances financial stability.
• Reduction in required asset coverage provides greater operational flexibility.

Negative

• None.

HOUSTON, Sept. 21, 2020 /PRNewswire/ -- Stellus Capital Investment Corporation (the "Company") (NYSE: SCM) announced today that on September 18, 2020 it entered into an amendment and extension of its $230 million Senior Secured Revolving Credit Agreement (the "Facility"). The Company extended the commitment termination date of the Facility to September 18, 2024 with a final maturity of September 18, 2025, and amended certain covenants and conditions of the Facility, including a reduction in the required asset coverage.  The Facility was led by Zions Bancorporation, N.A. dba Amegy Bank, and includes a total of 10 bank participants. Pricing and advance rates remain unchanged on the Facility, except for the addition of a LIBOR floor of 0.25%.

"We are pleased to report the amendment and extension of our $230 million bank credit facility to September of 2025. We appreciate the support of our bank group, led by Amegy Bank, throughout the COVID-19 period and in obtaining this long-term extension," said Robert T. Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. 

About Stellus Capital Investment Corporation

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. 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 middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public Investors" link.

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 Capital Investment Corporation
W. Todd Huskinson, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-amends-and-extends-its-revolving-credit-facility-301134205.html

SOURCE Stellus Capital Investment Corporation

FAQ

What is the significance of Stellus Capital's recent amendment to its credit facility?

The amendment extends the credit facility's commitment to September 2024, enhancing financial stability and reducing required asset coverage.

How much is Stellus Capital's Senior Secured Revolving Credit Agreement worth?

The credit agreement is valued at $230 million.

When is the final maturity date for Stellus Capital's credit facility?

The final maturity date is set for September 18, 2025.

Who led Stellus Capital's credit facility amendment?

The facility was led by Zions Bancorporation, N.A. dba Amegy Bank.

What is the impact of the new LIBOR floor on Stellus Capital's credit facility?

The amendment includes a LIBOR floor of 0.25% but leaves pricing and advance rates unchanged.