Nuveen Churchill Direct Lending Corp. (NYSE:NCDL), a Maryland-based investment company with a market capitalization of $930 million and notable 10.6% dividend yield, has entered into an agreement to issue $300 million of 6.650% notes due March 15, 2030. According to InvestingPro data, the company maintains a "Fair" financial health score, suggesting stable operational performance. The transaction, which closed today, involved the creation of a direct financial obligation as outlined in the company's recent SEC Form 8-K filing.
The notes, which will pay interest semi-annually, are unsecured and rank equally with the company's other unsubordinated unsecured debt. They are senior to any potential future subordinated debt and are effectively subordinated to existing and future secured debt, to the extent of the assets securing such debt. The notes are also structurally subordinated to the obligations of any of Nuveen Churchill's subsidiaries.
Nuveen Churchill has stated that the proceeds from the note issuance will be used to fully repay outstanding indebtedness on the company’s secured special purpose vehicle asset credit facility with Wells Fargo (NYSE:WFC) Bank, N.A., and to partially repay outstanding indebtedness under the company’s senior secured revolving credit facility with Sumitomo Mitsui (NYSE:SMFG) Banking Corporation. Remaining funds may be used for general corporate purposes, including investments in line with the company’s objectives and strategies.
The indenture includes certain covenants that require the company to adhere to specific financial ratios and provide regular financial information to note holders and the trustee, U.S. Bank Trust Company, National Association, if Nuveen Churchill ceases to be subject to SEC reporting requirements.
The offering was made under a previously filed registration statement and involved a preliminary prospectus supplement and a final prospectus supplement dated January 14, 2025. This move by Nuveen Churchill Direct Lending Corp. reflects the company's strategy to manage its debt profile and secure funding for its operations and investments. InvestingPro analysis reveals that analysts have set price targets ranging from $17 to $19, with additional insights available to subscribers. The stock currently trades at a P/E ratio of 10.2, demonstrating relatively modest valuation metrics compared to peers.
This news is based on a press release statement and provides a factual summary of the key points outlined in the company's 8-K filing with the SEC. For comprehensive analysis and additional ProTips on NCDL's financial health and market position, investors can access detailed metrics through InvestingPro.
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