Stellus Capital Investment plans $138 million IPO of common shares

By Toni Weeks

San Diego, Sept. 28 - Stellus Capital Investment Corp. announced plans for its initial public offering of stock, according to an N-2 filing with the Securities and Exchange Commission.

The newly organized, externally managed, closed-end, non-diversified management investment company will seek to maximize total return for its shareholders in the form of current income and capital appreciation. The company intends to invest in highly leveraged companies, with such investments typically rated as high yield.

The company intends to apply for listing on the New York Stock Exchange under the symbol "SCM."

Stellus registered $138 million of stock in the filing. Underwriters Raymond James & Associates, Inc. and Stifel, Nicolaus & Co., Inc. will have a 30-day greenshoe option.

Shareholder fees have not yet been set.

Houston-based Stellus Capital Management, LLC, the investment adviser, was spun out of the D.E. Shaw group in January 2012.

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