NCDL Nuveen Churchill Direct Lending Corp

Reports Fourth Quarter Net Investment Income of $0.56 per Share

Declares First Quarter Regular Distribution of $0.45 per Share

Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or the “Company”), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the “Adviser”), and by its sub-adviser, Churchill Asset Management LLC (“Churchill”), today reported financial results for the full year and fourth quarter ended December 31, 2024.

Financial Highlights for the Quarter Ended December 31, 2024

• Net investment income of $0.56 per share
• Net realized and unrealized loss on investments of ($0.02) per share
• Net increase in net assets resulting from operations of $0.54 per share
• Net asset value ("NAV") per share of $18.18, compared to $18.15 per share as of September 30, 2024
• Paid fourth quarter regular distribution of $0.45 per share and the third of four special distributions of $0.10 per share on January 28, 2025, which represents a 12.0% total annualized yield based on the fourth quarter NAV per share
• Declared first quarter regular distribution of $0.45 per share

“We are pleased to end 2024 with a strong quarter of financial results, reflecting the positive momentum we have built throughout the year. This past year was an active year for originations, as our investment team deployed over $950 million of new investments, an increase of over 40% year-over-year,” said Ken Kencel, President and Chief Executive Officer of NCDL and Churchill. “As we start 2025, we remain confident in the Company’s positioning as a leader in the core middle market direct lending space and remain focused on continuing to deliver an attractive yield to our shareholders.”

“For the full year, NCDL delivered a return on equity of over 12% and paid $2.10 per share of distributions, which were fully covered by net investment income, driven by strong performance from our investment portfolio and high-quality new originations,” said Shai Vichness, Chief Financial Officer of NCDL and Churchill. “Additionally, we took steps to continue to optimize our balance sheet and capital structure by issuing $300 million of unsecured notes in January of this year. With ample available liquidity as of year end and no near-term debt maturities, we remain well-positioned to take advantage of attractive investment opportunities.”

Distribution Declaration

The Company’s Board of Directors (the "Board") has declared a first quarter 2025 regular distribution of $0.45 per share payable on April 28, 2025 to shareholders of record as of March 31, 2025. On January 10, 2024, the Board declared four special distributions of $0.10 per share, to be paid over a one-year period, with the final distribution payable on April 28, 2025 to shareholders of record as of February 12, 2025.

PORTFOLIO COMPOSITION

As of December 31, 2024, the fair value of the Company's portfolio investments was $2.08 billion across 210 portfolio companies and 27 industries. This compares to $2.05 billion as of September 30, 2024 across 202 portfolio companies and 26 industries.

As of December 31, 2024, the Company’s portfolio based on fair value consisted of approximately 90.6% first-lien debt, 7.7% subordinated debt investments, and 1.8% equity investments. As of September 30, 2024, the Company’s portfolio based on fair value consisted of 90.1% first-lien debt, 8.3% subordinated debt investments, and 1.7% equity investments.

As of December 31, 2024 and September 30, 2024, the weighted average Internal Risk Rating of the portfolio at fair value was 4.1 and 4.2 (4.0 being the initial rating assigned at origination), respectively. As of December 31, 2024, there was one portfolio company on non-accrual representing 0.4% of total investments at amortized cost (or 0.1% of total investment at fair value). As of September 30, 2024, there were three portfolio companies on non-accrual representing 1.4% at amortized cost (or 0.5% at fair value). No new portfolio companies were put on non-accrual status during the quarter.

PORTFOLIO AND INVESTMENT ACTIVITY

Full Year

For the year ended December 31, 2024, the Company funded $863.6 million of portfolio investments and received $430.0 million of proceeds from principal repayments and sales, compared to $589.0 million and $146.4 million for the year ended December 31, 2023, respectively.

Fourth Quarter

For the three months ended December 31, 2024, the Company funded $151.1 million of portfolio investments and received $119.5 million of proceeds from principal repayments and sales, compared to $203.2 million and $155.6 million for the three months ended September 30, 2024, respectively.

RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED DECEMBER 31, 2024

Investment Income

Investment income increased to $224.0 million for the year ended December 31, 2024 from $161.8 million for the year ended December 31, 2023 primarily due to increased investment activity driven by an increase in deployed capital, slightly offset by a decrease in the weighted average yield of debt and income producing investments as a result of market spread tightening and a decline in SOFR. As of December 31, 2024, the weighted average yield of debt and income producing investments decreased to 10.33% from 11.72% as of December 31, 2023, at cost, primarily due to overall tightening of spreads in newly originated investments, the refinancing and repricing of existing portfolio companies, and the decline in base interest rates.

Investment income increased to $57.1 million for the three months ended December 31, 2024 from $48.9 million for the three months ended December 31, 2023.

Net Expenses

Net expenses increased to $101.1 million for the year ended December 31, 2024 from $77.9 million for the year ended December 31, 2023, primarily due to an increase in interest and debt financing expenses and management fees. Interest and debt financing expenses increased due to higher average daily borrowings and higher average interest rates. The increase in management fees was driven by the Company's increase in total assets. Under the terms of the advisory agreement, the Adviser is waiving the incentive fee on income and the incentive fee on capital gains for the first five quarters beginning with the calendar quarter in which the IPO was consummated (i.e. beginning with the calendar quarter ended March 31, 2024 through the calendar quarter ending March 31, 2025).

Net expenses increased to $26.4 million for the three months ended December 31, 2024, compared to $23.1 million for the three months ended December 31, 2023.

Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss) on Investments

For the year ended December 31, 2024, the Company had a net realized loss on investments of $(13.2) million compared to a net realized loss of $(8.0) million for the year ended December 31, 2023. The net realized loss for the year ended December 31, 2024 was primarily driven by the restructuring of two underperforming portfolio companies, partially offset by realized gains from full or partial repayments. The Company recorded a net change in unrealized gain of $7.3 million for the year ended December 31, 2024, compared to a net change in unrealized gain of $0.7 million for the year ended December 31, 2023. The increase in total net change in unrealized gains for the year ended December 31, 2024, compared to the total net change in unrealized gains for the year ended December 31, 2023, primarily resulted from a reversal of unrealized losses on underperforming portfolios companies, as well as market spread tightening.

For the three months ended December 31, 2024, the Company recorded a net realized loss of $(11.7) million compared to a net realized loss of $(1.5) million for the three months ended December 31, 2023. For the three months ended December 31, 2024, the Company recorded a net change in unrealized gain of $11.3 million compared to a net change in unrealized gain of $4.5 million for the three months ended December 31, 2023.

Financial Condition, Liquidity and Capital Resources

As of December 31, 2024, the Company had $43.3 million in cash and cash equivalents and $1.1 billion in total aggregate principal amount of debt outstanding. Subject to borrowing base and other conditions, the Company had approximately $206.3 million available for additional borrowings under its existing credit facilities, as of December 31, 2024. At December 31, 2024, the Company's debt to equity ratio was 1.15x compared to 1.11x at September 30, 2024.

CONFERENCE CALL AND WEBCAST INFORMATION

Nuveen Churchill Direct Lending Corp. will hold a conference call to discuss its full year and fourth 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 U.S. middle market companies. NCDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. NCDL is externally managed by its investment adviser, Churchill DLC Advisor LLC, and by its sub-adviser, Churchill Asset Management LLC ("Churchill"). Both the investment adviser and sub-adviser are affiliates and subsidiaries of Nuveen, LLC (“Nuveen”) the investment management division of Teachers Insurance and Annuity Association of America (“TIAA”) and one of the largest asset managers globally. Churchill is a leading capital provider for private equity-backed middle market companies and operates as the exclusive U.S. middle market direct lending and private capital business of Nuveen and TIAA. Churchill is a registered investment advisor and majority-owned, indirect subsidiary of TIAA.

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)

 

 

December 31, 2024

 

December 31, 2023

Assets

 

 

 

Investments

 

 

 

Non-controlled/non-affiliated company investments, at fair value (amortized cost of $2,098,575 and $1,666,169, respectively)

$

2,081,379

 

 

$

1,641,686

 

Cash and cash equivalents

 

43,254

 

 

 

67,395

 

Restricted cash

 

50

 

 

 

50

 

Interest receivable

 

17,971

 

 

 

17,674

 

Receivable for investments sold

 

1,024

 

 

 

3,919

 

Prepaid expenses

 

47

 

 

 

13

 

Other assets

 

—

 

 

 

127

 

Total assets

$

2,143,725

 

 

$

1,730,864

 

 

 

 

 

Liabilities

 

 

 

Secured borrowings (net of $6,668 and $7,941 deferred financing costs, respectively) (See Note 6)

$

1,108,261

 

 

$

943,936

 

Payable for investments purchased

 

14,973

 

 

 

—

 

Interest payable

 

12,967

 

 

 

9,837

 

Due to adviser for expense support (See Note 5)

 

—

 

 

 

632

 

Management fees payable

 

3,956

 

 

 

3,006

 

Distributions payable

 

29,468

 

 

 

22,683

 

Directors’ fees payable

 

128

 

 

 

96

 

Accounts payable and accrued expenses

 

3,652

 

 

 

2,789

 

Total liabilities

$

1,173,405

 

 

$

982,979

 

 

 

 

 

Commitments and contingencies (See Note 7)

 

 

 

 

 

 

 

Net Assets: (See Note 8)

 

 

 

Common shares, $0.01 par value, 500,000,000 and 500,000,000 shares authorized, 53,387,277 and 41,242,105 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

$

534

 

 

$

412

 

Paid-in-capital in excess of par value

 

996,286

 

 

 

776,719

 

Total distributable earnings (loss)

 

(26,500

)

 

 

(29,246

)

Total net assets

$

970,320

 

 

$

747,885

 

 

 

 

 

Total liabilities and net assets

$

2,143,725

 

 

$

1,730,864

 

 

 

 

 

Net asset value per share (See Note 10)

$

18.18

 

 

$

18.13

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except share and per share data)

 

 

For the Years Ended December 31,

 

2024

 

2023

 

2022

Investment income:

 

 

 

 

 

Non-controlled/non-affiliated company investments:

 

 

 

 

 

Interest income

$

213,096

 

 

$

156,868

 

 

$

79,868

 

Payment-in-kind interest income

 

8,299

 

 

 

3,644

 

 

 

789

 

Dividend income

 

614

 

 

 

101

 

 

 

225

 

Other income

 

2,031

 

 

 

1,143

 

 

 

1,571

 

Total investment income

 

224,040

 

 

 

161,756

 

 

 

82,453

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Interest and debt financing expenses

 

79,879

 

 

 

61,206

 

 

 

25,695

 

Management fees (See Note 5)

 

14,683

 

 

 

10,509

 

 

 

7,464

 

Incentive fees on net investment income

 

17,447

 

 

 

—

 

 

 

—

 

Professional fees

 

3,100

 

 

 

3,455

 

 

 

1,811

 

Directors' fees

 

510

 

 

 

383

 

 

 

383

 

Administration fees (See Note 5)

 

1,861

 

 

 

1,598

 

 

 

1,111

 

Other general and administrative expenses

 

1,068

 

 

 

751

 

 

 

684

 

Total expenses before expense support and incentive fees waived

 

118,548

 

 

 

77,902

 

 

 

37,148

 

Expense support (See Note 5)

 

—

 

 

 

(158

)

 

 

(179

)

Incentive fees waived (See Note 5)

 

(17,447

)

 

 

—

 

 

 

—

 

Net Expenses after expense support

 

101,101

 

 

 

77,744

 

 

 

36,969

 

Net investment income before excise taxes

 

122,939

 

 

 

84,012

 

 

 

45,484

 

Excise taxes

 

551

 

 

 

6

 

 

 

—

 

Net investment income

 

122,388

 

 

 

84,006

 

 

 

45,484

 

 

 

 

 

 

 

Realized and unrealized gain (loss) on investments:

 

 

 

 

 

Net realized gain (loss) on non-controlled/non-affiliated company investments

 

(13,198

)

 

 

(7,952

)

 

 

(262

)

Net change in unrealized appreciation (depreciation):

 

 

 

 

 

Non-controlled/non-affiliated company investments

 

7,287

 

 

 

714

 

 

 

(27,912

)

Income tax (provision) benefit

 

(154

)

 

 

(830

)

 

 

(24

)

Total net change in unrealized gain (loss)

 

7,133

 

 

 

(116

)

 

 

(27,936

)

Total net realized and unrealized gain (loss) on investments

 

(6,065

)

 

 

(8,068

)

 

 

(28,198

)

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

116,323

 

 

$

75,938

 

 

$

17,286

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

Net investment income per share - basic and diluted

$

2.26

 

 

$

2.52

 

 

$

1.95

 

Net increase (decrease) in net assets resulting from operations per share - basic and diluted

$

2.15

 

 

$

2.27

 

 

$

0.74

 

Weighted average common shares outstanding - basic and diluted

 

54,118,379

 

 

 

33,385,880

 

 

 

23,279.34

 

 

PORTFOLIO AND INVESTMENT ACTIVITY

(dollars in thousands)

 

 

For the Years Ended December 31,

 

2024

 

2023

Net funded investment activity

 

 

 

New gross commitments at par 1

$

955,309

 

 

$

670,638

 

Net investments funded

 

863,570

 

 

 

589,000

 

Investments sold or repaid

 

(429,953

)

 

 

(146,428

)

Net funded investment activity

$

433,617

 

 

$

442,572

 

 

 

 

 

Gross commitments at par 1

 

 

 

First-Lien Debt

$

924,776

 

 

$

601,486

 

Subordinated Debt

 

26,088

 

 

 

59,993

 

Equity Investments

 

4,445

 

 

 

9,159

 

Total gross commitments

$

955,309

 

 

$

670,638

 

 

 

 

 

Portfolio company activity

 

 

 

Portfolio companies, beginning of period

 

179

 

 

 

145

 

Number of new portfolio companies

 

68

 

 

 

45

 

Number of exited portfolio companies

 

(37

)

 

 

(11

)

Portfolio companies, end of period

 

210

 

 

 

179

 

Count of investments

 

475

 

 

 

385

 

Count of industries

 

27

 

 

 

25

 

 

 

 

 

New investment activity

 

 

 

Weighted average annual interest rate on new debt investments at par

 

10.11

%

 

 

11.50

%

Weighted average annual interest rate on new floating rate debt investments at par

 

10.02

%

 

 

11.36

%

Weighted average spread on new debt investments at par

 

5.05

%

 

 

6.07

%

Weighted average annual coupon on new debt investments at par

 

13.53

%

 

 

13.20

%

__________________

1 Gross commitments at par includes unfunded investment commitments.

 

PORTFOLIO AND INVESTMENT ACTIVITY

(dollars in thousands)

 

 

Three Months Ended

 

December 31, 2024

 

September 30, 2024

Net funded investment activity

 

 

 

New gross commitments at par 1

$

162,663

 

 

$

225,612

 

Net investments funded

 

151,106

 

 

 

203,159

 

Investments sold or repaid

 

(119,464

)

 

 

(155,616

)

Net funded investment activity

$

31,642

 

 

$

47,543

 

 

 

 

 

Gross commitments at par 1

 

 

 

First-Lien Debt

$

159,436

 

 

$

221,097

 

Subordinated Debt

 

3,127

 

 

 

3,145

 

Equity Investments

 

100

 

 

 

1,370

 

Total gross commitments

$

162,663

 

 

$

225,612

 

 

 

 

 

Portfolio company activity

 

 

 

Portfolio companies, beginning of period

 

202

 

 

 

198

 

Number of new portfolio companies

 

16

 

 

 

18

 

Number of exited portfolio companies

 

(8

)

 

 

(14

)

Portfolio companies, end of period

 

210

 

 

 

202

 

Count of investments

 

475

 

 

 

457

 

Count of industries

 

27

 

 

 

26

 

 

 

 

 

New investment activity

 

 

 

Weighted average annual interest rate on new debt investments at par

 

8.96

%

 

 

9.63

%

Weighted average annual interest rate on new floating rate debt investments at par

 

8.90

%

 

 

9.59

%

Weighted average spread on new debt investments at par

 

4.59

%

 

 

5.00

%

Weighted average annual coupon on new debt investments at par

 

12.00

%

 

 

13.67

%

__________________

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/20250226768443/en/

Investors: Investor Relations Robert.Paun@churchillam.com

Media: Prosek Partners Madison Hanlon Pro-churchill@prosek.com

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