STELLUS CAPITAL INVESTMENT CORPORATION Investor Presentation
Third quarter ended September 30, 2021
Disclaimer
THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS NOT INTENDED TO PROVIDE, AND SHOULD NOT BE RELIED UPON FOR, ACCOUNTING, LEGAL OR TAX ADVICE OR INVESTMENT RECOMMENDATIONS. THIS PRESENTATION IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY STELLUS CAPITAL INVESTMENT CORPORATION ("SCM") SECURITIES. AN OFFERING IS ONLY MADE BY AN APPLICABLE PROSPECTUS. THIS PRESENTATION MUST BE READ IN CONJUNCTION WITH A PROSPECTUS IN ORDER TO FULLY UNDERSTAND ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH THE PROSPECTUS RELATES INCLUDING THOSE LISTED IN THE "RISK FACTORS" SECTION OF OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC"), INCLUDING THE IMPACT OF THE COVID-19 PANDEMIC ON SCM, ITS PORTFOLIO COMPANIES, AND THE GLOBAL AND UNITED STATES ECONOMY. A COPY OF SUCH A PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH ANY OFFERING. BEFORE MAKING AN INVESTMENT DECISION WITH RESPECT TO SCM, INVESTORS ARE ADVISED TO CAREFULLY REVIEW AN APPLICABLE PROSPECTUS TO REVIEW THE RISK FACTORS DESCRIBED THEREIN, AND TO CONSULT WITH THEIR TAX, FINANCIAL, INVESTMENT AND LEGAL ADVISORS. THESE MATERIALS DO NOT PURPORT TO BE COMPLETE, AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE MORE DETAILED DISCLOSURES CONTAINED IN AN APPLICABLE PROSPECTUS AND SCM'S RELATED DOCUMENTATION INCLUDING SEC FILINGS.
STATEMENTS INCLUDED HEREIN MAY CONTAIN "FORWARD-LOOKING STATEMENTS" WHICH RELATE TO FUTURE PERFORMANCE OR FINANCIAL CONDITION. STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDED IN THIS PRESENTATION MAY CONSTITUTE FORWARD-LOOKING STATEMENTS AND ARE NOT GUARANTEES OF FUTURE PERFORMANCE OR RESULTS AND INVOLVE A NUMBER OF ASSUMPTIONS, RISKS AND UNCERTAINTIES, INCLUDING RISKS AND UNCERTAINTIES ASSOCIATED WITH THE COVID-19 PANDEMIC ON SCM, ITS PORTFOLIO COMPANIES, AND THE GLOBAL AND UNITED STATES ECONOMY, WHICH CHANGE OVER TIME. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AS A RESULT OF A NUMBER OF FACTORS, INCLUDING THOSE DESCRIBED FROM TIME TO TIME IN FILINGS BY SCM WITH THE SECURITIES AND EXCHANGE COMMISSION. SCM UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT MADE HEREIN. ALL OF THE INFORMATION IN THIS PRESENTATION, INCLUDING ANY FORWARD-LOOKING STATEMENTS, IS PRESENTED AS OF THE TIME PERIOD ON THE COVER OF THIS PRESENTATION (EXCEPT AS OTHERWISE SPECIFIED), IS SUBJECT TO CHANGE WITHOUT NOTICE, AND MAY HAVE CHANGED (POSSIBLY MATERIALLY) SINCE THE DATE ON THE COVER OF THIS PRESENTATION. SCM UNDERTAKES NO OBLIGATION TO UPDATE THE INFORMATION CONTAINED IN THIS PRESENTATION TO ACCOUNT FOR CHANGES SUBSEQUENT TO ANY DATE AS OF WHICH SUCH INFORMATION IS GIVEN, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LAWS AND REGULATIONS.
NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND NOTHING SHALL BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF SCM.
- All daily trading information/multiples in this presentation as of November 10, 2021 unless otherwise noted
- All other financial information as of September 30, 2021
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Contents
Page 4 Stellus Capital Management's Competitive Advantage Page 5 Company Overview
Stellus Capital Investment Corp. (NYSE: "SCM")
Page 11 Portfolio Overview
Page 16 Performance and Dividends
Page 20 Valuation
Page 23 Corporate Information and Financial Supplements
WASHINGTON D.C. AREA
4520 East West Highway,
Suite 605
Bethesda, MD 20814
CHARLOTTE, NC
5605 Carnegie Boulevard,
Suite 410
Charlotte, NC 28209
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There are 47 Publicly-Traded BDCs ~ What is our Competitive Advantage?
Strong Historical Portfolio Performance and Consistent Returns to Shareholders
Strong History of Underwriting Credit
- Fair Value of investment portfolio of $785.7 million as of September 30, 2021
- Grown at a 3-year CAGR of 18%*
- Achieving loan growth while practicing conservative lending
- Diversified portfolio by size of investment, industry and geography
Stable and Growing Dividend
- Increased the quarterly dividend from $0.27 to $0.28
- Presently paying monthly dividend of $0.0933
- Annualized indicated dividend yield of 7.8%**
- LTD dividends of $11.99 paid to an IPO investor through September 30, 2021***
- We have covered dividends from earnings since inception
Favorable Performance Over Time
- In the top 10 of all publicly traded BDCs based on ROE over a 3-year period
- Stable portfolio performance
Performance and Stability / Trading at a Premium to NAV
- Net asset value per share was $14.15 at September 30, 2021, an increase from $14.07 at June 30, 2021 and up from $14.03 at December 31, 2020
- Trading at approximately 1.01x to September 30, 2021 per share NAV**
* Company Filings - Based on Investments at Fair Value at 9/30/2021 ($785.7 million), 9/30/2018 ($478.0 million)
** As of November 10, 20214
***Includes dividends for fourth quarter ended December 31, 2021 declared on September 14, 2021
COMPANY OVERVIEW:
Navigating Lower Middle Market Capital Solutions
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Stellus Capital Investment Corporation published this content on 16 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 00:26:04 UTC.
