Steele Creek Capital Corp Deleverages, Sells Loans and Moves to Prepay Credit Facility

What Happened
Steele Creek Capital Corporation’s Board unanimously approved a deleveraging plan and, on August 18, 2026, the company’s adviser sold 164 broadly‑syndicated loan investments (representing 75.8% of the portfolio at fair value as of June 30, 2026) via a Bids Wanted in Competition auction. The sales generated gross proceeds of approximately $73 million, a realized net loss of $1.7 million, and about $462,000 of income above the June 30, 2026 valuations. The company intends to use roughly $65 million of the proceeds to pay off borrowings under its credit facility with Bank of America (the Credit Agreement) and has provided notice electing to terminate the Credit Agreement; no early termination fees will be incurred. On August 25, 2026 the company furnished a letter to stockholders describing these actions and has suspended the sale of shares indefinitely while the Board considers next steps, including potential full liquidation and dissolution (which would require shareholder approval).

Key Details

• 164 loan investments sold (75.8% of portfolio at fair value as of 6/30/2026).
• Gross proceeds ≈ $73 million; realized net loss $1.7 million; $462,000 above 6/30 valuation.
• Approximately $65 million of proceeds intended to repay the Credit Agreement (facility capacity was up to $80M, with an option to increase to $130M).
• Company suspended sale of shares indefinitely; Board will consider potential liquidation/dissolution and possible suspension of the quarterly repurchase program; any liquidation requires shareholder approval.

Why It Matters
For shareholders, this is a material shift toward de‑risking and possible wind‑down. The company has sharply reduced its exposure to syndicated loans and plans to eliminate its credit leverage, which lowers financing cost and balance‑sheet risk but also substantially reduces the company’s asset base and future income potential. The indefinite suspension of share sales and the Board’s active consideration of full liquidation mean investors should be prepared for potential changes to liquidity, repurchase activity, and the company’s ongoing status — any formal liquidation would require a shareholder vote.