Nuveen Churchill Direct Lending Corp. Closes $300M Note Offering

Nuveen Churchill Direct Lending Corp. (NCDL), a specialty finance company focused on investing in senior secured loans to private equity-owned U.S. middle market companies, has announced the closing of a public offering of $300 million aggregate principal amount of 6.650% unsecured notes due 2030. The offering resulted in net proceeds of approximately $296.0 million for the Company, after deducting the underwriting discount and estimated offering expenses payable by the Company.



The Notes bear interest at a rate of 6.650% per year payable semi-annually in arrears on March 15 and September 15 of each year, beginning September 15, 2025. The Notes will mature on March 15, 2030, and may be redeemed in whole or in part at the Company's option at any time prior to February 15, 2030, at par plus a "make-whole" premium plus accrued interest, and thereafter at par.

NCDL intends to use the net proceeds from this offering for the following purposes:

1. Repay in full the outstanding indebtedness under the Company's secured special purpose vehicle asset credit facility with Wells Fargo Bank, N.A.
2. Repay a portion of outstanding indebtedness under the Company's senior secured revolving credit facility with Sumitomo Mitsui Banking Corporation.
3. For general purposes, which may include, among other things, investing in accordance with the Company's investment objective and strategies.



The Company's decision to issue these notes aligns with its long-term investment objectives, as the net proceeds will be used to manage its debt obligations, invest in accordance with its core business strategy, and potentially fund growth and expansion. The 6.650% coupon rate, while relatively high compared to similar notes issued by other companies in the same sector, may indicate that investors perceive NCDL as having a higher risk profile. However, the Company's use of the net proceeds for general purposes, including investing in accordance with its investment objective and strategies, can help NCDL to generate attractive risk-adjusted returns and current income, contributing to its future growth and performance.

In conclusion, NCDL's closing of the $300 million note offering demonstrates the Company's commitment to managing its debt obligations, investing in accordance with its core business strategy, and potentially funding growth and expansion. The use of the net proceeds for general purposes, including investing in accordance with the Company's investment objective and strategies, can have a positive impact on NCDL's future growth and performance by expanding its investment portfolio and increasing its assets under management.