Stellus Private Credit BDC gets $105 million revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Stellus Private Credit BDC entered into a credit agreement on Sept. 30 that provides for up to $105 million of committed borrowings with Zions Bancorp, NA, dba Amegy Bank, as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

An accordion feature allows the company to increase the commitments up to $200 million. The facility provides for revolving advances until Sept. 30, 2026 with a one-year amortization period thereafter.

It matures on Sept. 30, 2027 and is secured by a first priority security interest in all of the company’s portfolio investments.

Borrowings bear interest at term SOFR+CSA plus 250 basis points, or 275 bps if the company’s asset coverage ratio is less than or equal to 1.9x. There is a 0.25% SOFR floor.

There is a $30 million sublimit for foreign currencies, including Canadian dollars and sterling.

The company must comply with a minimum asset coverage ratio, minimum liquidity and minimum interest coverage ratio.

The closed-end non-diversified investment management company is based in Houston.

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