Stellus Capital gets $140 million four-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 13 – Stellus Capital Investment Corp. entered into a senior secured revolving credit agreement on Wednesday, providing for up to $140 million, with availability subject to a borrowing base, according to an 8-K filing with the Securities and Exchange Commission.

ZB, NA, doing business as Amegy Bank, is the lead arranger, bookrunner and administrative agent. Cadence Bank, NA is the syndication agent, and Frost Bank is the documentation agent.

There is an accordion feature providing for up to $55 million of additional commitments.

There is a $30 million sublimit for borrowings in currencies other than U.S. dollars.

Borrowings bear interest at Libor plus 250 basis points with a 0% Libor floor and an unused commitment fee of 50 bps.

The availability period expires on Oct. 10, 2020, followed by a one-year amortization period and a final maturity date of Oct. 10, 2021.

Stellus must comply with a minimum asset coverage ratio of 2.0 to 1.0 and an interest coverage ratio of 2.0 to 1.0.

In connection with the new credit agreement, the company terminated its senior secured revolving credit facility with SunTrust Bank as administrative agent.

Stellus is an investment company based in Houston.

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