Stellus Capital Investment (SCM) Tops Q3 EPS by 1c
Stellus Capital Investment (NYSE: SCM) reported Q3 EPS of $0.27, $0.01 better than the analyst estimate of $0.26.
"I am pleased to report that our asset quality remains stable and that our third quarter net investment income of $0.27 per share exceeded the regular third quarter distribution of $0.25 per share. In addition, during the quarter, we extended the commitment termination date of our $230 million bank 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," reported Robert T. Ladd, Chief Executive Officer of Stellus Capital Investment Corporation.
Mr. Ladd further stated, "With regard to distributions, we declared distributions in an aggregate of $0.56 per share during the quarter in order to complete the distribution of spillover income from 2019 in a timely manner, consistent with maintaining our qualification for taxation as a Regulated Investment Company and to eliminate our liability for corporate-level U.S. federal income tax. The $0.56 is comprised of $0.25 per share for each of the third and fourth quarters and a special distribution of $0.06 per share. As a result, our net asset value declined to $13.17 during the quarter. Had we not been required to distribute the spillover income from prior years, net asset value would have increased to $13.48 per share. Further, these distributions, including the $0.31 payable December 29th, to shareholders of record on December 15th, constitute all remaining distributions for the year, so our fourth quarter net asset value will not be further reduced by distributions paid in the fourth quarter."
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