Stellus Capital prices $50 million reopening of 7.25% notes due 2030

HOUSTON - Stellus Capital Investment Corporation (NYSE:SCM), a business development company with a market capitalization of $395 million and a robust P/E ratio of 9.7, announced Tuesday it has priced a public offering of $50 million in aggregate principal amount of 7.25% notes due 2030.

The notes represent an additional issuance to the $75 million of 7.25% notes due 2030 that Stellus originally issued on April 1, 2025. Upon completion of this new issuance, the total outstanding principal amount of the company’s 2030 notes will reach $125 million. According to InvestingPro data, the company maintains a healthy current ratio of 2.39, indicating strong ability to meet its short-term obligations.

According to the company’s statement, the notes will have the same CUSIP number and will be fungible and rank equally with the existing notes. The transaction is expected to close on or about September 25, 2025, subject to customary closing conditions.

Raymond James & Associates is serving as the lead book-running manager for the offering, with Goldman Sachs, Keefe, Bruyette & Woods, and Oppenheimer acting as lead managers.

Stellus indicated it plans to use the net proceeds to repay a portion of its 4.875% notes due 2026. As of September 19, 2025, the company had $100 million in aggregate principal amount of these 2026 notes outstanding.

Stellus Capital Investment Corporation operates as a business development company that invests primarily in private lower middle-market companies through various debt financing options, often with corresponding equity investments.

The information in this article is based on a press release statement from the company.

In other recent news, Stellus Capital Investment Corporation reported its financial results for the second quarter of 2025. The company experienced a slight miss on both earnings per share (EPS) and revenue compared to analyst forecasts. Stellus Capital posted an EPS of 34 cents, which was below the expected 35.92 cents. Additionally, the company’s revenue amounted to $25.7 million, falling short of the anticipated $26.18 million. Despite these results, the company’s stock saw a positive reaction. Investors appear optimistic about Stellus Capital’s strategic initiatives and future prospects. These developments are part of the company’s ongoing efforts to navigate the financial landscape.

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