Financial Performance - For the three months ended March 31, 2025, new gross commitments at par totaled $166.239 million, a decrease from $206.815 million in the same period of 2024[351]. - Net investments funded were $153.019 million in Q1 2025, down from $204.330 million in Q1 2024[351]. - Investment income increased to $53.6 million for the three months ended March 31, 2025, up from $51.6 million for the same period in 2024, primarily due to increased investment activity[368]. - Total expenses before waived incentive fees rose to $28.4 million for the three months ended March 31, 2025, from $26.3 million in the same period of 2024[369]. - Interest and debt financing expenses increased to $20.6 million for the three months ended March 31, 2025, compared to $16.9 million for the same period in 2024, driven by higher average daily borrowings[370]. - Net realized gain on investments was $1.1 million for the three months ended March 31, 2025, compared to a net realized loss of $(3.6) million for the same period in 2024[373]. - A net change in unrealized loss of $(13.6) million was recorded for the three months ended March 31, 2025, compared to a net change in unrealized gain of $4.1 million for the same period in 2024[374]. Portfolio and Investment Details - The portfolio companies at the beginning of the period numbered 210, with 12 new portfolio companies added and 12 exited, maintaining the total at 210 by the end of the period[351]. - The weighted average reported annual EBITDA for the portfolio was $76.3 million[352]. - The weighted average Internal Risk Rating of the investment portfolio was 4.14 as of March 31, 2025, compared to 4.13 as of December 31, 2024[365]. - The largest portfolio company investment was valued at $31,125, accounting for 1.50% of the total fair value as of March 31, 2025[354]. - The healthcare and pharmaceuticals sector represented 16.46% of the portfolio's fair value as of March 31, 2025, up from 14.47% as of December 31, 2024[356]. - As of March 31, 2025, total investments amounted to $2,077,570, with a fair value of $2,077,570, compared to $2,081,379 as of December 31, 2024[354]. Debt and Financing - Total gross commitments at par included $151.995 million in first-lien debt and $13.230 million in subordinated debt for Q1 2025[351]. - As of March 31, 2025, total debt obligations amount to $1,202.3 million, with significant portions due beyond five years[438]. - The company established an ATM Program on March 10, 2025, allowing for the sale of up to $200 million in common stock[385]. - The Company entered into a share repurchase plan on March 5, 2024, allowing for the purchase of up to $99.3 million of its common stock in the open market[394]. - The 2022 Debt Securitization raised $448.3 million, with various classes of notes issued, including $199.0 million of AAA Class A-1 2022 Notes[412][413]. - The Company completed a $298.1 million term debt securitization on December 7, 2023, known as the 2023 Debt Securitization[423]. - The Company issued $300 million in aggregate principal amount of 6.650% Notes due 2030 on January 22, 2025, with interest payable semi-annually[435]. Interest Rates and Risk Management - The weighted average annual interest rate on new debt investments at par was 9.38% in Q1 2025, compared to 10.27% in Q1 2024[351]. - The percentage of debt investments bearing a floating rate was 94.55% as of March 31, 2025, slightly down from 94.68% as of December 31, 2024[358]. - The Federal Reserve held interest rates steady in Q1 2025 after three consecutive rate reductions in Q3 and Q4 2024, with potential future rate cuts uncertain[469]. - The company is subject to interest rate risk, affecting net investment income based on the difference between investment and borrowing rates[468]. - The company has entered into a fixed-to-floating interest rate swap to align the interest rates of liabilities with the investment portfolio[470]. Shareholder Returns - The Board declared a regular dividend of $0.45 per share payable on or around July 28, 2025, to shareholders of record as of June 30, 2025[464]. - As of March 31, 2025, a total of 4,113,398 shares have been repurchased under the Company 10b5-1 Plan, with a total value of approximately $70.585 million[397]. - BofA Securities, Inc. repurchased an additional 935,888 shares of common stock for approximately $14 million from April 1, 2025, through May 6, 2025[465]. Regulatory and Compliance - The company is regulated as a business development company (BDC) and must invest at least 70% of total assets in qualifying assets[346]. - The SEC granted an exemptive order on October 14, 2022, allowing the company to complete follow-on investments in existing portfolio companies with certain affiliates[444]. - The company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, with no uncertain tax positions as of March 31, 2025[462]. - The company’s critical accounting policies include the valuation of portfolio investments, revenue recognition, and U.S. federal income taxes[447].
Nuveen Churchill Direct Lending(NCDL) - 2025 Q1 - Quarterly Report