Nuveen Churchill Direct Lending Corp. · NYSE:NCDL
Nuveen Churchill Direct Lending — Q1 2024 Earnings Presentation
22 slides from Nuveen Churchill Direct Lending's earnings presentation, May 9, 2024
Slide 1: Nuveen Churchill Direct Lending Corp. (NCDL) First Quarter 2024 Earnings
Nuveen Churchill Direct Lending Corp. (NCDL) First Quarter 2024 Earnings 9 May 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: 1Q'24 Highlights
1Q’24 Highlights • Net investment income per share: $0.56 (vs. $0.66 12/31/2023)1 • Net income per share: $0.57 (vs. $0.73 12/31/2023)1 Q1’24 • Net asset value per share: $18.21 (vs. $18.13 12/31/2023) Earnings • Annualized ROE on net investment income: 11.9%2; annualized ROE on net income: 12.1%3 •
Slide 4: Nuveen Churchill Direct Lending Corp. Overview (NYSE: NCDL)
Nuveen Churchill Direct Lending Corp. Overview (NYSE: NCDL) Scaled, publicly-traded business development company with well-diversified, defensively constructed private equity sponsor backed senior loan-focused portfolio $1.8B 195 100% 89% 84% Debt Investments Investment Portfolio Private Equity Firs
Slide 5: Financial Highlights
Financial Highlights As of Date and For the Three Months Ended (Dollar amounts in thousands, except per share data) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Net Investment Income1 $0.56 $0.66 $0.62 $0.61 $0.62 1 Net Realized and Unrealized Gains (Losses) 0.01 0.07 (0.04) (0.1
Slide 6: Quarterly Investment Activity
Quarterly Investment Activity For the Three Months Ended (Dollar amounts in thousands) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Net Funded Investment Activity New Gross Commitments at Par $206,815 $253,620 $216,710 $109,654 $90,653 18 Net Investments Funded $204,330 $236,118
Slide 7: Net Asset Value
Net Asset Value • $0.08 quarter-over-quarter increase in NAV per share $0.56 $18.13 $0.01 $18.21 -$0.45 -$0.04 22 NAV Net investment Shareholder Net realized and Other NAV (12/31/23) income 20 distributions from unrealized gain (3/31/24) income 21 (loss) 20 Nuveen Churchill Direct Lending Corp. 7
Slide 8: Dividend History
Dividend History • Declared a regular dividend of $0.45 per share (9.9%13 annualized dividend yield) for the quarter ended March 31, 2024 • The first of four special dividends of $0.10 per share will be paid on July 29, 2024 $1.20 15.0% 12.3% 12.2% 12.0% 12.5% $1.00 11.2% 11.0% 10.9% 10.0% $0.80 9.9
Slide 9: Portfolio Highlights
Portfolio Highlights As of Date (Dollar amounts in thousands, unless otherwise noted) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Portfolio highlights Investment at Fair Value4 1,794,559 1,641,686 1,481,012 1,350,757 1,257,258 Number of Portfolio Companies 195 179 174 161 153 Av
Slide 10: 1Q'24 Investment Activity
1Q’24 Investment Activity • Closed 23 new portfolio investments and 11 add-ons totaling $207M23 • 4.9%24 average spread of new floating rate investments • 13.9%25 average coupon of new fixed rate investments Investment Activity (QoQ) $800M 14.0% 13.8% 13.9% 13.5% $700M 13.0% 12.7% 12.0% 11.4% 11.5%
Slide 11: Portfolio Overview
Portfolio Overview Portfolio composition by investment type6 Portfolio composition by Moody’s Industry 1.8% 9.3% Services: Business 19.0% First Lien Term Loan Healthcare & Pharmaceuticals 11.9% 89% (including DDTLs) 27 First Lien Subordinated Debt Equity High Tech Industries 10.6% Beverage, Food & T
Slide 12: Portfolio Overview - Diversification
Portfolio Overview - Diversification Issuer Moody’s Industry % of Fair Value North Haven CS High Tech Industries 1.6% Acquisition Inc Evergreen Services Group High Tech Industries 1.6% II Trilon Group Services: Business 1.5% MGM Transformer Energy: Electricity 1.3% Company Top 10 Classic Collision A
Slide 13: Net Interest Margin
Net Interest Margin NCDL has delivered attractive returns in a rising rate environment, with Net Interest Margin expansion of +210 bps since Q1 202028 11.9% 11.9% 11.7% 11.7% 12.0% 11.4% 10.9% 11.6% 11.7% 11.6% 11.4% 11.0% 9.8% 10.6% 10.0% 9.6% 8.0% 8.0% 7.5% 7.4% 7.4% 7.2% 6.7% 6.8% 6.7% 6.8% 7.9%
Slide 14: Internal Risk Rating
Internal Risk Rating • Weighted average rating remained stable at 4.1 • One portfolio company on non-accrual representing 0.13% (at fair value) and 0.40% (at amortized cost) as of March 31, 2024 Portfolio risk ratings ($ thousands) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 %
Slide 15: Financing Overview
Financing Overview • NCDL has a diversified funding profile including: two Asset Based Financing Facilities, three Collateralized Loan Obligations (CLOs), and one Corporate Revolver • Successfully closed Churchill NCDLC CLO-III on March 14, 2024 • NCDL has no near-term debt maturities Financing Amou
Slide 16: Dividend Activity
Dividend Activity Date Declared Record Date Payment Date Dividend Type Dividend per Share May 1, 2024 June 28, 2024 July 29, 2024 Q2’24 Regular Dividend $0.45 January 10, 2024 February 12, 2025 April 28, 2025 Q1’25 Special Dividend $0.10 January 10, 2024 November 11, 2024 January 28, 2025 Q4’24 Spec
Slide 17: Quarterly Balance Sheets
Quarterly Balance Sheets As of Date (Dollar amounts in thousands, except per share data) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Assets Investments at fair value $1,794,559 $1,641,686 $1,481,012 $1,350,757 $1,257,258 Cash and cash equivalents 64,146 67,395 35,971 45,448 49,5
Slide 18: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended (Dollar amounts in thousands, except per share data) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Investment income: Non-controlled/non-affiliated company investments: Interest income 49,078 46,819 40,371 36,291 33,387 PIK in
Slide 19: Contact Us
Contact Us Our website www.NCDL.com Investor Relations NCDL-IR@churchillam.com Nuveen Churchill Direct Lending Corp. 19
Slide 20: Endnotes
Endnotes Note: All information is as of March 31, 2024, 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 mon
Slide 21: Endnotes
Endnotes Note: All information is as of March 31, 2024, unless otherwise noted. Numbers may not sum due to rounding. 12 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 based
Slide 22: Endnotes
Endnotes Note: All information is as of March 31, 2024, unless otherwise noted. Numbers may not sum due to rounding. 26 Interest rate utilizes the floating rate investment spread plus the greater of 3-Month base rate, or base rate floor, if applicable for each respective transaction SOFR as of June
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