Stellus Capital Investment Corporation (NYSE:SCM) Q4 2023 Earnings Call Transcript

Todd Huskinson: Sure. Yeah, Bryce, so we did have – we had the realized loss that was reversed. We had, I’d say in general, there was a general decline from an unrealized loss perspective, but we also had a few specific write-downs on specific companies, you can tell from the SOI, one of them was J.R. Watkins, where we had had written that down some as well. So that was the primary difference between offsetting the taxes and the dividend.

Robert Ladd: And maybe just add to what Todd said. So, no general market decline was – these were just be as in previous quarters except during COVID, this was company specific.

Todd Huskinson: Yeah.

Bryce Rowe: Okay. Okay. And, I mean, on a J.R. Watkins, in particular, Todd, I know it’s just one investment, but it looks like it’s marked below 50% of costs. I mean, what’s the comfort level there? How do you think about that staying on accrual versus putting it on non-accrual or maybe ask the different ways there are certain threshold where even if it’s still accruing interest paying interest, even if it’s marked at a certain level, you’ll consider putting it on non-accrual versus keeping it on accrual?

Todd Huskinson: And I might just jump in here. So, I think, that’s definitely right. And as an example, this one will be looked at in this quarter.

Bryce Rowe: Okay. That’s helpful. Rob, last one for me, in terms of kind of balance sheet leverage and managing the balance sheet, no ATM activity in the quarter, after a few quarters of some activity, any reason for that? Is that more driven by repayment activity outpacing originations? Or is there some other way to think about it? Thanks.

Robert Ladd: Yeah. So, no, I think that’s right. We had very fortunate successful year for the ATM coming into the fourth quarter. And as I said earlier, substantial capital invests. So we’re focused on investing what we’ve raised at this point.

Bryce Rowe: Got it. Okay. I think that’s it for me. Appreciate the time.

Robert Ladd: Okay. Thank you, Bryce.

Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to Robert Ladd for closing remarks.

Robert Ladd: All right. Very good. Thank you, everyone, for being on. Thank you for your support, and we look forward to updating you again for the first quarter, which our call will be in early May. Thanks again.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.