Neostellar Targets Year-End Retirement of 6% Notes With $35.8M Outstanding at Sept. 30

Neostellar Capital Corp. (NSLR) intends to retire its 6.00% notes by Dec. 31, 2026, while its board has extended a separate discretionary share repurchase program with about $25 million still authorized.

The notes mature Dec. 30, 2026, and had $35,780,225 in face principal outstanding as of Sept. 30. Neostellar Chairman and CEO Mark Klein said on the company’s Nov. 3 earnings call that retiring the debt was a priority and the company intended to complete it by Dec. 31, 2026.

CFO Allison Green said quarter-end liquid assets totaled about $42.2 million, including $40.9 million in cash and $1.3 million in unrestricted public securities. Another $15.2 million in public securities was subject to lockups or other sales restrictions. Green said some cash would go toward repaying the notes at maturity or earlier open-market purchases as available.

Neostellar repurchased 1,984 notes during the third quarter. The company’s board extended its share repurchase program on Oct. 28, keeping it in effect through the earlier of Oct. 31, 2027, or $64.3 million in cumulative purchases. About $25 million remained authorized under the program as of Nov. 3.

The authorization is discretionary and is not a cash reserve or commitment to buy shares; any purchases remain subject to liquidity considerations. Since the program began in August 2017, Neostellar has repurchased more than six million shares for about $39.3 million.

Neostellar focuses on private, venture-backed businesses. It recorded a $0.15-per-share net investment loss for the third quarter in its previously covered results. Net assets stood at about $334.7 million as of Sept. 30, with net asset value of $12.64 per share, down from $13.44 at the end of June.

The notes’ stated maturity is Dec. 30, 2026; Klein’s stated retirement target is Dec. 31.