Nuveen Churchill Direct Lending Corp. Announces Third Quarter 2024 Results
Reports Net Investment Income of
Declares Fourth Quarter Regular Distribution of
Financial Highlights for the Quarter Ended September 30, 2024
-
Net investment income of
per share$0.58 -
Net realized and unrealized gain on investments of
per share$0.09 -
Net increase in net assets resulting from operations of
per share$0.67 -
Net asset value ("NAV") per share of
, compared to$18.15 per share as of June 30, 2024$18.03 -
Paid third quarter regular distribution of
per share and the second of four special distributions of$0.45 per share on October 28, 2024, which represents a$0.10 12.1% total annualized yield based on the third quarter NAV per share -
Declared fourth quarter regular distribution of
per share$0.45
“We are pleased to report strong third quarter results, including
“Our investment portfolio remains strong and healthy, reflecting the quality of the deal flow we have seen over the last several years, as well as our focus on diversification, a continued high-level of selectivity and a differentiated sourcing model,” said Shai Vichness, Chief Financial Officer of NCDL and Churchill. “With the strong originations we experienced during the quarter, we were able to increase our leverage ratio to the mid-point of our target range. Additionally, NCDL continues to have a strong balance sheet and liquidity position, as we have constructed a diversified capital structure that is match-funded to our floating rate assets with no near-term debt maturities.”
Distribution Declaration
The Company’s Board of Directors (the "Board") has declared a fourth quarter 2024 regular distribution of
PORTFOLIO AND INVESTMENT ACTIVITY
As of September 30, 2024, the fair value of the Company's portfolio investments was
As of September 30, 2024, the Company’s portfolio based on fair value consisted of approximately
For the three months ended September 30, 2024, the Company funded
As of September 30, 2024 and June 30, 2024, the weighted average Internal Risk Rating of the portfolio at fair value was 4.2 and 4.1 (4.0 being the initial rating assigned at origination), respectively, and loans on non-accrual status represented
RESULTS OF OPERATIONS
Investment Income
Investment income, primarily attributable to interest and fees on our debt investments, increased to
Net Expenses
Net expenses increased to
Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss) on Investments
For the three months ended September 30, 2024, the Company recorded a net realized gain of
Financial Condition, Liquidity and Capital Resources
As of September 30, 2024, the Company had
CONFERENCE CALL AND WEBCAST INFORMATION
Nuveen Churchill Direct Lending Corp. will hold a conference call to discuss its third quarter 2024 financial results today at 11:00 AM Eastern Time. All interested parties may participate in the conference call by dialing (866) 605-1826 approximately 10-15 minutes prior to the call; international callers should dial +1 (215) 268-9877. Participants should reference Nuveen Churchill Direct Lending Corp. when prompted.
A live webcast of the conference call will also be available on the Events section of the Company's website at https://www.ncdl.com/news/events. A replay will be available under the same link following the conclusion of the conference call.
About Nuveen Churchill Direct Lending Corp.
Nuveen Churchill Direct Lending Corp. (“NCDL”) is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned
Forward-Looking Statements
This press release contains historical information and “forward-looking statements” with respect to the business and investments of NCDL, including, but not limited to, statements about NCDL’s future performance and financial performance and financial condition, which involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond NCDL’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in NCDL’s filings with the Securities and Exchange Commission, including changes in the financial, capital, and lending markets; general economic, political and industry trends and other external factors, and the dependence of NCDL’s future success on the general economy and its impact on the industries in which it invests. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which NCDL makes them. NCDL does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
|||||||
(dollars in thousands, except share and per share data) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
(Unaudited) |
|
|
||||
Investments |
|
|
|
||||
Non-controlled/non-affiliated company investments, at fair value (amortized cost of |
$ |
2,046,887 |
|
|
$ |
1,641,686 |
|
Cash and cash equivalents |
|
69,304 |
|
|
|
67,395 |
|
Restricted cash |
|
50 |
|
|
|
50 |
|
Interest receivable |
|
18,127 |
|
|
|
17,674 |
|
Receivable for investments sold |
|
5,657 |
|
|
|
3,919 |
|
Prepaid expenses |
|
85 |
|
|
|
13 |
|
Other assets |
|
— |
|
|
|
127 |
|
Total assets |
$ |
2,140,110 |
|
|
$ |
1,730,864 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Secured borrowings (net of |
$ |
1,094,461 |
|
|
$ |
943,936 |
|
Payable for investments purchased |
|
2,545 |
|
|
|
— |
|
Interest payable |
|
15,462 |
|
|
|
9,837 |
|
Due to adviser for expense support (See Note 5) |
|
— |
|
|
|
632 |
|
Management fees payable |
|
3,873 |
|
|
|
3,006 |
|
Distributions payable |
|
30,037 |
|
|
|
22,683 |
|
Directors’ fees payable |
|
128 |
|
|
|
96 |
|
Accounts payable and accrued expenses |
|
2,995 |
|
|
|
2,789 |
|
Total liabilities |
$ |
1,149,501 |
|
|
$ |
982,979 |
|
|
|
|
|
||||
Commitments and contingencies (See Note 7) |
|
|
|
||||
|
|
|
|
||||
Net Assets: (See Note 8) |
|
|
|
||||
Common shares, |
$ |
546 |
|
|
$ |
412 |
|
Paid-in-capital in excess of par value |
|
1,017,248 |
|
|
|
776,719 |
|
Total distributable earnings (loss) |
|
(27,185 |
) |
|
|
(29,246 |
) |
Total net assets |
$ |
990,609 |
|
|
$ |
747,885 |
|
|
|
|
|
||||
Total liabilities and net assets |
$ |
2,140,110 |
|
|
$ |
1,730,864 |
|
|
|
|
|
||||
Net asset value per share (See Note 10) |
$ |
18.15 |
|
|
$ |
18.13 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(dollars in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Investment income: |
|
|
|
|
|
|
|
||||||||
Non-controlled/non-affiliated company investments: |
|
|
|
|
|
|
|
||||||||
Interest income |
$ |
57,317 |
|
|
$ |
40,370 |
|
|
$ |
159,413 |
|
|
$ |
110,049 |
|
Payment-in-kind interest income |
|
2,503 |
|
|
|
951 |
|
|
|
6,024 |
|
|
|
1,823 |
|
Dividend income |
|
16 |
|
|
|
16 |
|
|
|
357 |
|
|
|
56 |
|
Other income |
|
444 |
|
|
|
409 |
|
|
|
1,170 |
|
|
|
879 |
|
Total investment income |
|
60,280 |
|
|
|
41,746 |
|
|
|
166,964 |
|
|
|
112,807 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
Interest and debt financing expenses |
|
23,198 |
|
|
|
16,048 |
|
|
|
58,860 |
|
|
|
43,089 |
|
Management fees (See Note 5) |
|
3,873 |
|
|
|
2,722 |
|
|
|
10,727 |
|
|
|
7,503 |
|
Incentive fees on net investment income |
|
5,496 |
|
|
|
— |
|
|
|
13,030 |
|
|
|
— |
|
Professional fees |
|
912 |
|
|
|
730 |
|
|
|
2,315 |
|
|
|
2,284 |
|
Directors' fees |
|
128 |
|
|
|
96 |
|
|
|
383 |
|
|
|
287 |
|
Administration fees (See Note 5) |
|
535 |
|
|
|
370 |
|
|
|
1,561 |
|
|
|
1,029 |
|
Other general and administrative expenses |
|
145 |
|
|
|
125 |
|
|
|
888 |
|
|
|
653 |
|
Total expenses before expense support and incentive fees waived |
|
34,287 |
|
|
|
20,091 |
|
|
|
87,764 |
|
|
|
54,845 |
|
Expense support (See Note 5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
Incentive fees waived (See Note 5) |
|
(5,496 |
) |
|
|
— |
|
|
|
(13,030 |
) |
|
|
— |
|
Net Expenses after expense support |
|
28,791 |
|
|
|
20,091 |
|
|
|
74,734 |
|
|
|
54,687 |
|
Net investment income |
|
31,489 |
|
|
|
21,655 |
|
|
|
92,230 |
|
|
|
58,120 |
|
|
|
|
|
|
|
|
|
||||||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
||||||||
Net realized gain (loss) on non-controlled/non-affiliated company investments |
|
1,086 |
|
|
|
(13,107 |
) |
|
|
(1,522 |
) |
|
|
(6,408 |
) |
Net change in unrealized appreciation (depreciation): |
|
|
|
|
|
|
|
||||||||
Non-controlled/non-affiliated company investments |
|
4,050 |
|
|
|
11,574 |
|
|
|
(3,995 |
) |
|
|
(3,805 |
) |
Income tax (provision) benefit |
|
18 |
|
|
|
27 |
|
|
|
159 |
|
|
|
(735 |
) |
Total net change in unrealized gain (loss) |
|
4,068 |
|
|
|
11,601 |
|
|
|
(3,836 |
) |
|
|
(4,540 |
) |
Total net realized and unrealized gain (loss) on investments |
|
5,154 |
|
|
|
(1,506 |
) |
|
|
(5,358 |
) |
|
|
(10,948 |
) |
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
36,643 |
|
|
$ |
20,149 |
|
|
$ |
86,872 |
|
|
$ |
47,172 |
|
|
|
|
|
|
|
|
|
||||||||
Per share data: |
|
|
|
|
|
|
|
||||||||
Net investment income per share - basic and diluted |
$ |
0.58 |
|
|
$ |
0.62 |
|
|
$ |
1.71 |
|
|
$ |
1.85 |
|
Net increase (decrease) in net assets resulting from operations per share - basic and diluted |
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
1.61 |
|
|
$ |
1.50 |
|
Weighted average common shares outstanding - basic and diluted |
|
54,688.86 |
|
|
|
34,812.72 |
|
|
|
54,080.979 |
|
|
|
31,409.296 |
|
PORTFOLIO AND INVESTMENT ACTIVITY |
|||||||
(dollars in thousands) |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net funded investment activity |
|
|
|
||||
New gross commitments at par 1 |
$ |
225,612 |
|
|
$ |
216,710 |
|
Net investments funded |
|
203,159 |
|
|
|
150,866 |
|
Investments sold or repaid |
|
(155,616 |
) |
|
|
(20,490 |
) |
Net funded investment activity |
$ |
47,543 |
|
|
$ |
130,376 |
|
|
|
|
|
||||
Gross commitments at par 1 |
|
|
|
||||
First-Lien Debt |
$ |
221,097 |
|
|
$ |
193,794 |
|
Subordinated Debt |
|
3,145 |
|
|
|
17,852 |
|
Equity Investments |
|
1,370 |
|
|
|
5,064 |
|
Total gross commitments |
$ |
225,612 |
|
|
$ |
216,710 |
|
|
|
|
|
||||
Portfolio company activity |
|
|
|
||||
Portfolio companies, beginning of period |
|
198 |
|
|
|
161 |
|
Number of new portfolio companies |
|
18 |
|
|
|
14 |
|
Number of exited portfolio companies |
|
(14 |
) |
|
|
(1 |
) |
Portfolio companies, end of period |
|
202 |
|
|
|
174 |
|
Count of investments |
|
457 |
|
|
|
363 |
|
Count of industries |
|
26 |
|
|
|
24 |
|
|
|
|
|
||||
New Investment Activity |
|
|
|
||||
Weighted average annual interest rate on new debt investments at par |
|
9.63 |
% |
|
|
12.07 |
% |
Weighted average annual interest rate on new floating rate debt investments at par |
|
9.59 |
% |
|
|
11.50 |
% |
Weighted average spread on new debt investments at par |
|
5.00 |
% |
|
|
6.10 |
% |
Weighted average annual coupon on new debt investments at par |
|
13.67 |
% |
|
|
13.80 |
% |
__________________________ |
1 Gross commitments at par includes unfunded investment commitments. |
See Notes to Consolidated Financial Statements
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107315310/en/
Investors:
Investor Relations
NCDL-IR@churchillam.com
Media:
Prosek Partners
Madison Hanlon
Pro-churchill@prosek.com
Source: Nuveen Churchill Direct Lending Corp.