Nuveen Churchill Direct Lending Corp. Prices Initial Public Offering
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Insights
The initial public offering (IPO) of Nuveen Churchill Direct Lending Corp. (NCDL) represents a significant event for the company and its stakeholders. The pricing of 5,500,000 shares at $18.05 each indicates a strong valuation, which is a key factor in attracting investors. The offer of an additional 825,000 shares demonstrates flexibility and potential for over-allotment, commonly referred to as a 'greenshoe' option, which can stabilize the stock price post-IPO.
Investors will be keen to analyze the use of the raised capital, whether for debt repayment, expansion, or strategic investments. The performance of NCDL's stock post-IPO will serve as a barometer for investor confidence in the business development company (BDC) sector, particularly in the context of direct lending strategies.
Long-term implications include the potential for NCDL to leverage its public status to access capital markets more efficiently, which can be pivotal for growth and competitive positioning within the financial services industry.
The entry of NCDL into the public market could indicate broader trends within the BDC space. BDCs are often considered a measure of the health of the middle market, as they provide financing to small and mid-sized businesses. The success of NCDL's IPO may reflect investor appetite for exposure to this segment, which can be an indicator of economic optimism regarding the growth potential of these businesses.
Additionally, the public listing on the NYSE enhances visibility and may attract institutional investors, potentially increasing liquidity and trading volume. The impact on the stock market will be closely watched, as new listings can have a ripple effect on sector-specific indices and exchange-traded funds (ETFs) that track BDCs.
The timing of the IPO could be influenced by macroeconomic conditions, such as interest rates and market sentiment. Given that BDCs are interest rate sensitive, the current rate environment will affect NCDL's borrowing costs and investment yields. The decision to go public at this time may suggest confidence in the company's business model and its resilience to economic cycles.
Furthermore, the performance of NCDL in the stock market could serve as a litmus test for the direct lending industry's health and its role in providing alternative financing solutions amidst changing banking regulations and economic shifts.
NCDL intends to use the net proceeds of this offering to pay down existing indebtedness, make investments in middle market companies in accordance with its investment strategy, and for other general corporate purposes.
BofA Securities, UBS Investment Bank, Morgan Stanley, Wells Fargo Securities, Keefe, Bruyette & Woods, A Stifel Company, JMP Securities, a Citizens Company, and Truist Securities acted as joint book-running managers for the offering. MUFG, SMBC Nikko, Academy Securities, and Blaylock Van, LLC acted as co-managers for the offering.
A registration statement relating to these securities was filed with the
Investors are advised to carefully consider the investment objective, risks and charges and expenses of NCDL before investing. The preliminary prospectus, dated January 16, 2024, contains this and other information about NCDL and should be read carefully before investing. The information in the registration statement is not complete and may be changed.
This press release will not constitute an offer to sell or the solicitation of an offer to buy the securities described above nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state or jurisdiction. Offers of these securities are made only by means of the prospectus. The SEC has not approved or disapproved these securities or passed upon the adequacy of the preliminary prospectus. Any representation to the contrary is a criminal offense.
The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from: BofA Securities, NC1-022-02-25, 201 North Tryon Street,
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
Certain information contained herein may constitute “forward-looking statements” that 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 NCDL, NCDL’s initial public offering of its shares of common stock, the anticipated use of the net proceeds of the offering, and the expected impact of this offering on NCDL’s financial results. 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 SEC. 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.
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Investors:
Investor Relations
DL_AltsDistribution@tiaa.org
Media:
Prosek Partners
Madison Hanlon
pro-churchill@prosek.com
Source: Nuveen Churchill Direct Lending Corp.
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