Q2 2024 Nuveen Churchill Direct Lending Corp Earnings Call Transcript
Key Points
- Nuveen Churchill Direct Lending Corp (NCDL) delivered net investment income that exceeded both its regular quarterly distribution of $0.45 per share and its $0.10 per share special distribution.
- Investment activity picked up significantly during the second quarter, with $360 million of new originations, over 95% of which were first lien senior secured loans.
- NCDL delivered an attractive 12.3% annualized dividend yield to shareholders.
- The portfolio remains highly diversified, with the top 10 investments representing only 14.4% of the total portfolio.
- NCDL's weighted average internal risk rating remains strong at 4.1, with a manageable watch list level of 3.8% of fair value.
- Net asset value per share declined modestly quarter over quarter, primarily driven by unrealized losses on two investments placed on nonaccrual.
- Two new nonaccruals were added this quarter, representing 0.49% of the fair value of the portfolio.
- The company experienced modest spread compression during the first half of the year.
- Repayment activity significantly increased during the quarter, which could indicate potential liquidity challenges.
- The number of names on the watch list increased by two, indicating potential future credit quality issues.
Welcome to Nuveen Churchill Direct Lending Corp.'s second-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.
I'd like to turn the call over to Alona Gornick, Senior Investment Strategist at Churchill Asset Management. Alona, please go ahead.
Good morning, and welcome to Nuveen Churchill Direct Lending Corp.'s second-quarter 2024 earnings call. Today, I'm joined by NCDL's Chairman, President, and CEO, Ken Kencel; and Chief Financial Officer and Treasurer, Shai Vichness; as well as Robert Paun, Head of Investor Relations for Retail and Wealth here at Churchill. Following our prepared remarks, we will be available to take your questions.
Today's call may include forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors, and undue reliance should not be placed thereon. These forward
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