Nuveen Churchill Direct Lending Corp. Announces Second Quarter 2024 Results
Reports Net Investment Income of
Declares Third Quarter Regular Distribution of
Financial Highlights for the Quarter Ended
-
Net investment income per share of
$0.57 -
Total net realized and unrealized loss on investments per share of
$(0.20) -
Net increase in net assets resulting from operations per share of
$0.37 -
Net asset value ("NAV") per share of
$18.03 , compared to$18.21 per share as ofMarch 31, 2024 -
Paid second quarter regular distribution of
$0.45 per share and the first of four special distributions of$0.10 per share onJuly 29, 2024 , which represents a 12.3% total annualized yield based on the second quarter NAV per share -
Declared third quarter regular distribution of
$0.45 per share
“I am pleased with the momentum NCDL has maintained, generating net investment income to support an attractive 12.3% annualized dividend yield to shareholders,” said
“We have constructed a defensive portfolio, with stable credit quality that is balanced across multiple measures—whether looking at sponsor, position size, or industry,” said
Distribution Declaration
The Company’s Board of Directors (the "Board") has declared a third quarter 2024 regular distribution of
PORTFOLIO AND INVESTMENT ACTIVITY
As of
As of
For the three months ended
As of
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 Gains (Losses) on Investments
Net realized gains increased to
Liquidity and Capital Resources
As of
CONFERENCE CALL AND WEBCAST INFORMATION
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
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
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
|||||
(dollars in thousands, except share and per share data) |
|||||
|
|
|
|
||
Assets |
(Unaudited) |
|
|
||
Investments |
|
|
|
||
Non-controlled/non-affiliated company investments, at fair value
|
$ |
1,990,856 |
|
$ |
1,641,686 |
Cash and cash equivalents |
|
70,986 |
|
|
67,395 |
Restricted cash |
|
50 |
|
|
50 |
Interest receivable |
|
18,299 |
|
|
17,674 |
Receivable for investments sold |
|
2,650 |
|
|
3,919 |
Prepaid expenses |
|
93 |
|
|
13 |
Other assets |
$ |
— |
|
$ |
127 |
Total assets |
$ |
2,082,934 |
|
$ |
1,730,864 |
|
|
|
|
||
Liabilities |
|
|
|
||
Secured borrowings (net of |
$ |
1,020,721 |
|
$ |
943,936 |
Payable for investments purchased |
|
17,790 |
|
|
— |
Interest payable |
|
21,292 |
|
|
9,837 |
Due to adviser for expense support (See Note 5) |
|
— |
|
|
632 |
Management fees payable |
|
3,590 |
|
|
3,006 |
Distributions payable |
|
30,108 |
|
|
22,683 |
Directors’ fees payable |
|
127 |
|
|
96 |
Accounts payable and accrued expenses |
|
2,934 |
|
|
2,789 |
Total liabilities |
$ |
1,096,562 |
|
$ |
982,979 |
|
|
|
|
||
Commitments and contingencies (See Note 7) |
|
|
|
||
|
|
|
|
||
Net Assets: (See Note 8) |
|
|
|
||
Common shares, |
$ |
547 |
|
$ |
412 |
Paid-in-capital in excess of par value |
|
1,019,617 |
|
|
776,719 |
Total distributable earnings (loss) |
|
(33,792) |
|
|
(29,246) |
Total net assets |
$ |
986,372 |
|
$ |
747,885 |
|
|
|
|
||
Total liabilities and net assets |
$ |
2,082,934 |
|
$ |
1,730,864 |
|
|
|
|
||
Net asset value per share (See Note 9) |
$ |
18.03 |
|
$ |
18.13 |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
(dollars in thousands, except share and per share data) |
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Investment income: |
|
|
|
|
|
|
|
||||
Non-controlled/non-affiliated company investments: |
|
|
|
|
|
|
|
||||
Interest income |
$ |
53,018 |
|
$ |
36,292 |
|
$ |
102,096 |
|
$ |
69,679 |
Payment-in-kind interest income |
|
1,529 |
|
|
551 |
|
|
3,521 |
|
|
872 |
Dividend income |
|
33 |
|
|
24 |
|
|
341 |
|
|
40 |
Other income |
|
509 |
|
|
234 |
|
|
726 |
|
|
470 |
Total investment income |
|
55,089 |
|
|
37,101 |
|
|
106,684 |
|
|
71,061 |
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
||||
Interest and debt financing expenses |
|
18,721 |
|
|
14,298 |
|
|
35,662 |
|
|
27,041 |
Management fees (See Note 5) |
|
3,590 |
|
|
2,475 |
|
|
6,854 |
|
|
4,781 |
Incentive fees on net investment income |
|
3,075 |
|
|
— |
|
|
7,534 |
|
|
— |
Professional fees |
|
693 |
|
|
964 |
|
|
1,403 |
|
|
1,554 |
Directors' fees |
|
127 |
|
|
95 |
|
|
255 |
|
|
191 |
Administration fees (See Note 5) |
|
484 |
|
|
350 |
|
|
1,026 |
|
|
659 |
Other general and administrative expenses |
|
466 |
|
|
357 |
|
|
743 |
|
|
528 |
Total expenses before expense support and Incentive fees waived |
|
27,156 |
|
|
18,539 |
|
|
53,477 |
|
|
34,754 |
Expense support (See Note 5) |
|
— |
|
|
(144) |
|
|
— |
|
|
(158) |
Incentive fees waived (See Note 5) |
|
(3,075) |
|
|
— |
|
|
(7,534) |
|
|
— |
Net Expenses after expense support |
|
24,081 |
|
|
18,395 |
|
|
45,943 |
|
|
34,596 |
Net investment income |
|
31,008 |
|
|
18,706 |
|
|
60,741 |
|
|
36,465 |
|
|
|
|
|
|
|
|||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
||||
Net realized gain (loss) on non-controlled/non-affiliated company investments |
|
1,017 |
|
|
218 |
|
|
(2,608) |
|
|
6,699 |
Net change in unrealized appreciation (depreciation) |
|
|
|
|
|
|
|
||||
Non-controlled/non-affiliated company investments |
|
(12,102) |
|
|
(4,242) |
|
|
(8,045) |
|
|
(15,379) |
Income tax (provision) benefit |
|
282 |
|
|
(376) |
|
|
141 |
|
|
(762) |
Total net change in unrealized gain (loss) |
|
(11,820) |
|
|
(4,618) |
|
|
(7,904) |
|
|
(16,141) |
Total net realized and unrealized gain (loss) on investments |
|
(10,803) |
|
|
(4,400) |
|
|
(10,512) |
|
|
(9,442) |
|
|
|
|
|
|
|
|
||||
Net increase (decrease) in net assets resulting from operations |
$ |
20,205 |
|
$ |
14,306 |
|
$ |
50,229 |
|
$ |
27,023 |
|
|
|
|
|
|
|
|
||||
Per share data: |
|
|
|
|
|
|
|
||||
Net investment income per share - basic and diluted |
$ |
0.57 |
|
$ |
0.61 |
|
$ |
1.13 |
|
$ |
1.23 |
Net increase (decrease) in net assets resulting from operations per share - basic and diluted |
$ |
0.37 |
|
$ |
0.47 |
|
$ |
0.93 |
|
$ |
0.91 |
Weighted average common shares outstanding - basic and diluted |
|
54,789.044 |
|
|
30,621.009 |
|
|
53,773.698 |
|
|
29,679.378 |
PORTFOLIO AND INVESTMENT ACTIVITY |
|||||
(information presented herein is at amortized cost; dollar amounts in thousands) |
|||||
|
Three Months Ended |
||||
|
|
2024 |
|
|
2023 |
Investments: |
|
|
|
||
Total investments, beginning of period |
$ |
1,814,985 |
|
$ |
1,293,592 |
Purchase of investments |
|
304,976 |
|
|
102,103 |
Proceeds from principal repayments and sales of investments |
|
(99,977) |
|
|
(5,759) |
Payment-in-kind interest |
|
1,529 |
|
|
551 |
Amortization of premium/accretion of discount, net |
|
854 |
|
|
628 |
Net realized gain (loss) on investments |
|
1,017 |
|
|
218 |
Total investments, end of period |
$ |
2,023,384 |
|
$ |
1,391,333 |
|
|
|
|
||
Portfolio companies at beginning of period |
|
195 |
|
|
153 |
Number of new portfolio companies funded |
|
11 |
|
|
9 |
Number of portfolio companies sold or repaid |
|
(8) |
|
|
(1) |
Portfolio companies, end of period |
|
198 |
|
|
161 |
Count of investments |
|
434 |
|
|
329 |
Count of industries |
|
26 |
|
|
23 |
|
Six Months Ended |
||||
|
|
2024 |
|
|
2023 |
Investments: |
|
|
|
||
Total investments, beginning of period |
$ |
1,666,169 |
|
$ |
1,225,573 |
Purchase of investments |
|
509,305 |
|
|
202,017 |
Proceeds from principal repayments and sales of investments |
|
(154,873) |
|
|
(45,361) |
Payment-in-kind interest |
|
3,521 |
|
|
872 |
Amortization of premium/accretion of discount, net |
|
1,870 |
|
|
1,533 |
Net realized gain (loss) on investments |
|
(2,608) |
|
|
6,699 |
Total investments, end of period |
$ |
2,023,384 |
|
$ |
1,391,333 |
|
|
|
|
||
Portfolio companies at beginning of period |
|
179 |
|
|
145 |
Number of new portfolio companies funded |
|
34 |
|
|
20 |
Number of portfolio companies sold or repaid |
|
(15) |
|
|
(4) |
Portfolio companies, end of period |
|
198 |
|
|
161 |
Count of investments |
|
434 |
|
|
329 |
Count of industries |
|
26 |
|
|
23 |
See Notes to Consolidated Financial Statements
BPS-3773662PR-Q0824W
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806047675/en/
Investors:
Investor Relations
NCDL-IR@churchillam.com
Media:
Pro-churchill@prosek.com
Source: