Nuveen Churchill Direct Lending Corp. · NYSE:NCDL
Nuveen Churchill Direct Lending — Q4 2023 Earnings Presentation
21 slides from Nuveen Churchill Direct Lending's earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings
Nuveen Churchill Direct Lending Corp. (NCDL) Fourth Quarter and Full Year 2023 Earnings 27 February 2024
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only. It does not convey an offer of any type and is not intended to be, and should not be construed as, an offer to sell, or the solicitation of an offer to buy, any securities of Nuveen Churchill Direct Lending Corp. (the “Company,” “NCDLC
Slide 3: Highlights
Highlights • Net investment income per share: $0.66 (vs. $0.62 9/30/23)1 • Net income per share: $0.73 (vs. $0.58 9/30/23)1 Q4’23 • Net asset value per share: $18.13 (vs. $17.96 9/30/23) Earnings • Annualized ROE on net investment income: 13.7%2; annualized ROE on net income: 15.3%3 • Q4’23 dividend
Slide 4: Nuveen Churchill Direct Lending Corp. Overview
Nuveen Churchill Direct Lending Corp. Overview (NYSE: NCDL) Scaled publicly traded business development company with well-diversified, defensively constructed private equity sponsors backed senior-focused portfolio $1.6B 179 100% 87% 86% Debt Investments Investment Portfolio Private Equity First Lie
Slide 5: Financial Highlights
Financial Highlights As of Date and For the 3 Months Ended (Dollar amounts in thousands, except per share data) Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 1 Net Investment Income $0.66 $0.62 $0.61 $0.62 $0.55 1 Net Realized and Unrealized Gains (Losses) 0.07 (0.04) (0.14) (0.18
Slide 6: Net Asset Value
Net Asset Value • $0.17 quarter-over-quarter increase in NAV per share $0.66 $0.07 $18.13 $17.96 -$0.55 -$0.01 20 NAV Net investment Shareholder Net realized and Other NAV (9/30/23) income 18 distributions from unrealized gain (12/31/23) income 19 (loss) 18 Nuveen Churchill Direct Lending Corp. 6
Slide 7: Dividend History
Dividend History • Dividends have remained stable as portfolio has reached scale and interest rates remain elevated • The Company declared a total dividend of $0.55 per share (12.0%4 total annualized dividend yield) for the quarter ended on December 31, 2023 $1.20 15.0% 12.4% 12.3% 12.2% 12.0% 12.5%
Slide 8: Portfolio Highlights
Portfolio Highlights As of Date and For the 3 Months Ended (Dollar amounts in thousands, unless otherwise noted) Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Portfolio highlights Investment at Fair Value5 1,641,686 1,481,012 1,350,757 1,257,258 1,200,376 Number of Portfolio Compa
Slide 9: 4Q23 Investment Activity
4Q23 Investment Activity • Closed 13 new portfolio investments and 9 add-ons totaling $254M21 • 5.9%22 average spread of new floating rate investments • 13.0%23 average coupon of new fixed rate investments Investment Activity (QoQ) 14.0% $800M 13.5% 13.8% 13.0% 12.7% 12.0% $700M 11.4% 11.5% 11.2% 11
Slide 10: Portfolio Overview
Portfolio Overview Key Portfolio Statistics Portfolio composition by investment type7 First Lien Term Loan 87.0 % 87% $1.6B 179 (including DDTLs)26 First Lien Subordinated Debt 11.2 % Equity 1.9 % Investment Portfolio at Fair Value5 Portfolio Companies Portfolio diversification by Moody’s Industry S
Slide 11: Net Interest Margin
Net Interest Margin NCDL has delivered attractive returns in a rising rate environment, with Net Interest Margin expansion of +230 bps since Q1 202027 11.9% 11.9% 12.0% 11.7% 11.4% 10.9% 11.7% 11.6% 11.4% 11.0% 9.8% 10.6% 10.0% 9.6% 8.0% 8.0% 7.5% 7.4% 7.2% 6.8% 6.8% 7.9% 6.8% 6.7% 6.7% 6.3% 6.5% 6.
Slide 12: Internal Risk Rating
Internal Risk Rating • Weighted average rating improved quarter over quarter from 4.2 to 4.1 • No investments on non-accrual as of December 31, 2023 Portfolio risk ratings ($ thousands) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Fair Value % of Portfolio Fair Value % of Portfo
Slide 13: Financing Overview
Financing Overview • NCDL has a diversified funding profile including: two Asset Based Financing Facilities, two Collateralized Loan Obligations (CLOs), and one Corporate Revolver • Successfully closed Churchill NCDLC CLO-II on December 7, 2023 • Priced Churchill NCDLC CLO-III on February 9, 2024 wi
Slide 14: Dividend Distribution Activity
Dividend Distribution Activity Date Declared Record Date Payment Date Dividend per Share December 29, 2023 December 29, 2023 January 10, 2024 $0.50 32 December 29, 2023 December 29, 2023 January 10, 2024 $0.05 September 28, 2023 September 28, 2023 October 12, 2023 $0.50 32 September 28, 2023 Septemb
Slide 15: Share Issuance Activity
Share Issuance Activity • As of December 31, 2023, the Company had 41,242,105 shares outstanding Issuance Date Share Issuance Aggregate Offering Price Issuance Price per Share November 3, 2023 5,497,609 $100,000,000 $18.19 July 17, 2023 4,357,515 $78,564,514 $18.03 April 20, 2023 2,205,038 $40,000,0
Slide 16: Quarterly Balance Sheets
Quarterly Balance Sheets As of Date and For the 3 Months Ended (Dollar amounts in thousands, except per share data) Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Assets Investments at fair value $1,641,686 $1,481,012 $1,350,757 $1,257,258 $1,200,376 Cash and cash equivalents 67,39
Slide 17: Quarterly Operating Results
Quarterly Operating Results For the 3 Months Ended (Dollar amounts in thousands, except per share data) Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Investment income: Non-controlled/non-affiliated company investments: Interest income 47,194 40,371 36,291 33,387 28,763 PIK income
Slide 18: Contact Us
Contact Us Our website www.NCDL.com Investor Relations NCDL-IR@churchillam.com Nuveen Churchill Direct Lending Corp. 18
Slide 19: Endnotes
Endnotes Note: All information is as of December 31, 2023, unless otherwise noted. Numbers may not sum due to rounding. 1 Per share Net Investment income, Net Realized and Unrealized Gains (Losses) and Net Income (Loss) data was derived by using the weighted average shares outstanding for the three
Slide 20: Endnotes
Endnotes Note: All information is as of December 31, 2023, unless otherwise noted. Numbers may not sum due to rounding. 13 The interest coverage ratio calculation is derived from the most recently available portfolio company financial information received by the Adviser, and is a weighted average ba
Slide 21: Endnotes
Endnotes Note: All information is as of December 31, 2023, unless otherwise noted. Numbers may not sum due to rounding. 26 36% of first lien term loans are unitranche positions. 27 Net Interest Margin calculated as Weighted Average Yield on Debt and Income Producing Investments at Fair Value minus A
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