Stellus Capital Investment Corporation

Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellis Capital Investment Corporation's conference call to report financial results for its third fiscal quarter ended September 30th, 2025. At this time, all participants are on a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a note, this conference is being recorded today, November 12th, 2025. It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Stelz Capital Investment Corporation. Mr. Ladd, you may begin your conference.

Okay. Thank you, Ellie. And good morning, everyone, and thank you for joining the call. forward-looking statements, and we'll start us off with a review of our financial information.

Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellis Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and pen provided in our press release announcing this call. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.steluscapital.com under the Public Investors link or call us at 713-292-5400. Now I'll cover our operating results for the quarter. We'd like to start with our life-to-date activity. Since our IPO in November 2012, we've invested approximately $2.8 billion in over 215 companies and received approximately $1.8 billion of repayments while maintaining stable asset quality. We've paid $318 million of dividends to our investors, which represents $17.75 per share to an investor and our IPO in November 2012, which was offered at $15 per share. In the third quarter, we generated 32 cents per share of GAAP net investment income, realized income of 42 cents per share, and core net investment income was 34 cents per share, which excludes estimated excise taxes. Net asset value per share decreased 16 cents during the quarter, which had two components. The first was 8 cents per share of dividend payments already been recorded as an unrealized gain, which was reversed in the third quarter. Finally, during the quarter, we issued approximately 531,000 shares for $7.4 million of proceeds under our ATM program. Year-to-date, we've issued approximately 1.5 million shares for $20.6 million. All issuances were above net asset value. So, turning now to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $1.01 billion across 115 portfolio companies, up from $985.9 million across 112 companies as of June 30th, 2025. During the third quarter, we invested $51.3 million in five new portfolio companies and had $12.5 million in other investment activity at par. We also received three repayments totaling $29.8 million One equity realization totaling $2.8 million, which resulted in a realized gain of $2.8 million and received $6.4 million of other repayments, both at par. At September 30th, 98% of our loans were secured and 90% were priced at floating rates. The average loan per company is $9.2 million, and the largest overall investment is $22 million, both at fair value. 99% of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly better than planned. At fair value, 82% of our portfolio is rated a 1 or 2 or on or ahead of plan, and 18% of the portfolio is marked in an investment category of 3 or below, meaning not meeting plan or expectations. We did not add any new loans to our non-accrual list during the quarter, and currently we have loans to five portfolio companies on non-accrual, which comprise probably 6.7% of the total cost and 3.7% of the fair value of the total loan portfolio, respectively, which represents a slight decrease in the prior quarter. Turning to capital, during the quarter, we amended and extended our revolving credit facility, which reduced the spread over the 30-day SOFR rate from 2.6% to 2.25%, and extended the maturity date by two years to September of 2030. We also upsized the total committed amount from