Item 1.01 Entry into a Material Definitive Agreement.
On May 13, 2022, Stellus Capital Investment Corporation (the "Company") entered
into a Third Amendment and Commitment Increase to Amended and Restated Senior
Secured Revolving Credit Agreement (the "Third Amendment Agreement") by and
among the Company, as the borrower, Zions Bancorporation, N.A. dba Amegy Bank
("Amegy Bank"), as the administrative agent, and the lenders that are party
thereto from time to time (collectively, the "Lenders"). The Third Amendment
Agreement amends the Second Amendment to Amended and Restated Senior Secured
Revolving Credit Agreement dated February 28, 2022, the First Amendment and
Commitment Increase to Amended and Restated Senior Secured Revolving Credit
Agreement dated December 22, 2021, and the Amended and Restated Senior Secured
Revolving Credit Agreement, dated as of September 18, 2020, (the "Existing
Credit Facility") by and among the Company, Amegy Bank, as the administrative
agent, and the Lenders that are party thereto from time to time. The Third
Amendment Agreement increase the maximum amount of revolving advances under the
Existing Credit Facility from $250,000,000 to $265,000,000 on a committed basis.
The Third Amendment Agreement also transitions the Existing Credit Facility's
interest rate benchmark from the London Interbank Offered Rate to the Secured
Overnight Financing Rate ("SOFR") and the credit facility will bear interest,
subject to the Company's election, on a per annum basis equal to (i) term SOFR
plus 2.50% (or 2.75% during certain periods in which the Company's asset
coverage ratio is equal to or below 1.90 to 1.00) plus a SOFR credit spread
adjustment (0.10% for one-month term SOFR and 0.15% for three-month term SOFR),
with a 0.25% SOFR floor, or (ii) 1.50% (or 1.75% during certain periods in which
the Company's asset coverage ratio is equal to or below 1.90 to 1.00) plus an
alternate base rate based on the highest of the prime rate (subject to a 3%
floor), Federal Funds Rate plus 0.50% and one month term SOFR plus 1.00%.
The description above is only a summary of the material provisions of the
Amendment Agreement and is qualified in its entirety by reference to a copy of
the Third Amendment Agreement, which is filed as Exhibit 10.1 to this current
report on Form 8-K and incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of Registrant.
The information contained in Item 1.01 to this current report on Form 8-K is by
this reference incorporated in this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Description
Number
10.1 Third Amendment and Commitment Increase to Amended and Restated
Senior Secured Revolving Credit Agreement, dated as of May 13, 2022,
among Stellus Capital Investment Corporation, the lenders party
thereto, and Zions Bancorporation, N.A. dba Amegy Bank, as the
administrative agent.
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