Nuveen Churchill Direct Lending Corp. Announces Second Quarter 2026 Results
NEW YORK--( BUSINESS WIRE)--Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or the “Company”), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the “Adviser”), and by its sub-adviser, Churchill Asset Management LLC (“Churchill”), today reported financial results for the second quarter ended June 30, 2026.
Financial Highlights and Recent Developments for the Quarter Ended June 30, 2026
“During the second quarter, NCDL reported solid financial results, as our net investment income meaningfully exceeded our regular quarterly distribution,” said Ken Kencel, President and Chief Executive Officer of NCDL. “Despite continued market volatility in the quarter, our investment portfolio remains healthy and resilient, reflecting our conservative underwriting approach and access to quality deal flow. We continue to believe NCDL is well-positioned to deliver strong returns for our investors, based on our experienced investment team, focus on the core, traditional middle market, as well as our long-term track record.”
“We remain focused on maintaining a well-diversified portfolio and reinvesting proceeds from repayments into high quality investments,” said Shai Vichness, Chief Financial Officer and Treasurer of NCDL. “In July, we took strategic actions aimed at continuing to optimize and strengthen our balance sheet, including increasing the percentage of unsecured debt in our capital structure with the additional issuance of $100 million of our existing unsecured notes and by entering into a joint venture, which we believe will be accretive to our earnings profile over the long-term.”
Distribution Declaration and Recent Developments
The Company’s Board of Directors (the “Board”) has declared a regular distribution of $0.36 per share and a supplemental distribution of $0.02 per share, payable on or around October 27, 2026 to shareholders of record as of September 30, 2026.
On July 7, 2026, the Company redeemed CLO-III in full at par, with an aggregate principal balance of $297.9 million, inclusive of accrued and unpaid interest. In connection with the redemption, total proceeds collected, including principal and interest, were $302.5 million.
The Company formed an unconsolidated joint venture (the "JV") with an unaffiliated institutional investor (the "JV Partner") on July 7, 2026. The Company and the JV Partner committed up to $92.8 million (87.5%) and $13.3 million (12.5%), respectively. On July 9, 2026, the JV acquired a portfolio of $148.9M of first lien loan debt from the Company.
On July 10, 2026, the Company issued an additional $100.0 million in aggregate principal amount of existing 2030 Notes (the "Additional 2030 Notes"). In connection with the issuance of the Additional 2030 Notes, the Company entered into an interest rate swap for a total notional amount of $100.0 million, effective September 15, 2026 and maturing March 15, 2030, pursuant to which the Company will receive a fixed rate of 6.65% and pay a floating rate of S + 2.55%.
PORTFOLIO COMPOSITION
As of June 30, 2026, the fair value of the Company's portfolio investments was $1.9 billion across 244 portfolio companies in 26 industries compared to $2.0 billion as of March 31, 2026 across 236 portfolio companies in 26 industries.
As of June 30, 2026, the Company’s portfolio based on fair value consisted of approximately 89.6% first-lien debt investments, 7.3% subordinated debt investments, and 3.1% equity investments. As of March 31, 2026, the Company’s portfolio based on fair value consisted of 89.7% first-lien debt investments, 7.5% subordinated debt investments, and 2.8% equity investments.
As of June 30, 2026 and March 31, 2026, the weighted average Internal Risk Rating of the portfolio at fair value was 4.3 and 4.3 (4.0 being the initial rating assigned at origination), respectively. As of June 30, 2026, there were investments in nine portfolio companies on non-accrual status representing 1.5% of total investments at fair value (or 2.7% of total investments at cost). As of March 31, 2026, there were investments in five portfolio companies on non-accrual status representing 0.6% of total investments at fair value (or 1.3% of total investments at cost).
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended June 30, 2026, the Company funded $24.8 million of portfolio investments and received $67.5 million of proceeds from principal repayments and sales, compared to $85.4 million and $65.0 million, respectively, for the three months ended March 31, 2026.
RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JUNE 30, 2026
Investment Income
Investment income decreased to $44.3 million for the three months ended June 30, 2026 from $53.1 million for the three months ended June 30, 2025. As of June 30, 2026 and June 30, 2025, the size of the Company's portfolio was $2.0 billion and $2.0 billion, at cost, respectively. As of June 30, 2026, the weighted average yield of the Company's debt and income producing investments decreased to 9.3% from 10.1% as of June 30, 2025, at cost, primarily due to the decline in base interest rates, as spreads on newly originated investments have remained relatively stable over the period.
Net Expenses
Net expenses decreased to $24.1 million for the three months ended June 30, 2026 from $30.3 million for the three months ended June 30, 2025, primarily due to a decrease in interest and debt financing expenses and a lower income-based incentive fee. Interest and debt financing expenses decreased due to a lower average interest rate and lower average daily borrowings, while the decrease in income-based incentive fees was primarily driven by the impact of the incentive fee cap pursuant to the terms of the Advisory Agreement.
Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss) on Investments
For the three months ended June 30, 2026, the Company recorded a net realized loss on investments of $(11.3) million, compared to a net realized loss of $(10.7) million for the three months ended June 30, 2025. The net realized loss for the three months ended June 30, 2026 resulted primarily from amendments of two underperforming debt positions. The Company recorded a net change in unrealized loss of $(6.0) million for the three months ended June 30, 2026, compared to a net change in unrealized gain of $3.8 million for the three months ended June 30, 2025. The total net change in unrealized loss for the three months ended June 30, 2026 resulted from decreases in the fair value of certain underperforming portfolio companies, partially offset by the reversal of unrealized losses on debt positions that were amended during the period.
Financial Condition, Liquidity and Capital Resources
As of June 30, 2026, the Company had $45.8 million in cash and cash equivalents and $1.1 billion in total aggregate principal amount of debt outstanding. Subject to borrowing base and other conditions, the Company had approximately $278.5 million available for additional borrowings under its revolving credit facility as of June 30, 2026. At June 30, 2026, the Company's debt to equity ratio was 1.29x (1.23x net debt to equity ratio) compared to 1.32x (1.26x net debt to equity ratio) at March 31, 2026. Giving effect to the CLO-III redemption and the $100 million issuance of the Additional 2030 Notes, unsecured notes represented 41% of the Company's outstanding debt as of June 30, 2026 on a pro forma basis.
CONFERENCE CALL AND WEBCAST INFORMATION
Nuveen Churchill Direct Lending Corp. will hold a conference call to discuss its second quarter 2026 financial results today at 10:00 AM Eastern Time. All interested parties may participate in the conference call by dialing (866) 605-1826 approximately 10-15 minutes prior to the call; international callers should dial +1 (215) 268-9877. Participants should reference Nuveen Churchill Direct Lending Corp. when prompted.
A live webcast of the conference call will also be available on the Events section of the Company's website at https://www.ncdl.com/news/events. A replay will be available under the same link following the conclusion of the conference call.
About Nuveen Churchill Direct Lending Corp.
Nuveen Churchill Direct Lending Corp. (“NCDL”) is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. NCDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. NCDL is externally managed by its investment adviser, Churchill DLC Advisor LLC, and by its sub-adviser, Churchill Asset Management LLC (“Churchill”). Both the investment adviser and sub-adviser are affiliates and subsidiaries of Nuveen, LLC (“Nuveen”), the investment management division of Teachers Insurance and Annuity Association of America (“TIAA”) and one of the largest asset managers globally. Churchill is a leading capital provider for private equity-backed middle market companies and operates as the exclusive U.S. middle market direct lending and private capital business of Nuveen and TIAA. Churchill is a registered investment advisor and majority-owned, indirect subsidiary of TIAA.
Forward-Looking Statements
This press release contains historical information and “forward-looking statements” with respect to the business and investments of NCDL, including, but not limited to, statements about NCDL’s future financial performance and financial condition, investment returns to investors; and NCDL's equity investment in the JV being accretive to NCDL's earnings profile over the long-term, which involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond NCDL’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in NCDL’s filings with the Securities and Exchange Commission, including changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on NCDL's business, its financial condition and its portfolio companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy, and its impact on NCDL's portfolio companies and the general economy; the impact of geopolitical conditions; general economic, political and industry trends and other external factors; the dependence of NCDL’s future success on the general economy and its impact on the industries in which it invests; and other risks, uncertainties and other factors we identify in the section entitled “Risk Factors” in NCDL’s most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, which are accessible on the SEC’s website at www.sec.gov. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which NCDL makes them. NCDL does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
5808905
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(amounts in thousands, except share and per share data)
June 30, 2026
December 31, 2025
Assets
(Unaudited)
Investments
Non-controlled/non-affiliated company investments, at fair value (cost of $1,971,534 and $2,001,207, respectively)
$
1,918,917
$
1,962,449
Cash
4,997
8,554
Cash equivalents
40,759
53,927
Interest receivable
13,491
13,729
Derivative asset, at fair value (Note 4)
8,534
14,965
Receivable for investments sold
838
518
Other assets
409
327
Total assets
$
1,987,945
$
2,054,469
Liabilities
Debt (net of $8,005 and $8,511 deferred financing and issuance costs, respectively, and net of unamortized discount of $415 and $471, respectively) (See Note 7)
$
1,088,504
$
1,115,052
Interest payable
14,359
15,350
Incentive fees payable
646
2,809
Management fees payable
4,933
5,048
Collateral due to broker
9,190
14,750
Distributions payable
18,741
22,224
Directors’ fees payable
142
156
Accounts payable and accrued expenses
2,465
3,900
Total liabilities
1,138,980
1,179,289
Commitments and contingencies (See Note 8)
Net Assets: (See Note 9)
Common shares, $0.01 par value, 500,000,000 and 500,000,000 shares authorized, 49,387,065 and 49,387,065 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
494
494
Paid-in-capital in excess of par value
930,393
930,393
Total distributable earnings (loss)
(81,922
)
(55,707
)
Total net assets
848,965
875,180
Total liabilities and net assets
$
1,987,945
$
2,054,469
Net asset value per share (See Note 11)
$
17.19
$
17.72
See Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Investment income:
Non-controlled/non-affiliated company investments:
Interest income
$
41,810
$
50,213
$
84,672
$
101,059
Payment-in-kind interest income
2,391
2,264
5,513
4,629
Dividend income
—
116
—
116
Other income
129
539
403
914
Total investment income
44,330
53,132
90,588
106,718
Expenses:
Interest and debt financing expenses
16,565
20,105
34,314
40,748
Management fees (See Note 6)
4,933
5,179
9,873
9,093
Incentive fees on net investment income (See Note 6)
646
2,827
2,181
5,080
Professional fees
1,007
1,108
1,770
1,601
Directors' fees
142
156
304
312
Administration fees (See Note 6)
593
490
1,273
1,076
Other general and administrative expenses
223
411
608
753
Total expenses before incentive fees waived
24,109
30,276
50,323
58,663
Incentive fees waived (See Note 6)
—
—
—
(2,253
)
Net expenses after incentive fees waived
24,109
30,276
50,323
56,410
Net investment income
20,221
22,856
40,265
50,308
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on non-controlled/non-affiliated company investments
(11,261
)
(10,702
)
(14,550
)
(9,599
)
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated company investments
(6,046
)
3,770
(13,859
)
(9,803
)
Income tax (provision) benefit
680
92
425
131
Total net change in unrealized appreciation (depreciation)
(5,366
)
3,862
(13,434
)
(9,672
)
Total net realized and unrealized gain (loss) on investments
(16,627
)
(6,840
)
(27,984
)
(19,271
)
Net increase (decrease) in net assets resulting from operations
$
3,594
$
16,016
$
12,281
$
31,037
Per share data:
Net increase (decrease) in net assets resulting from operations per share - basic and diluted
$
0.07
$
0.32
$
0.25
$
0.61
Weighted average common shares outstanding - basic and diluted
49,387,065
50,183,714
49,387,065
51,191,926
See Notes to Consolidated Financial Statements
PORTFOLIO AND INVESTMENT ACTIVITY
(amounts in thousands)
Three Months Ended June 30,
2026
2025
Net funded investment activity
New gross commitments at par 1
$
12,081
$
47,698
Net investments funded
24,818
81,061
Investments sold or repaid
(67,480
)
(162,202
)
Net funded (repaid) investment activity
$
(42,662
)
$
(81,141
)
—
Gross commitments at par 1
First-lien debt
$
5,937
$
45,224
Subordinated debt
1,372
100
Equity investments
4,772
2,374
Total gross commitments
$
12,081
$
47,698
Portfolio company activity
Portfolio companies, beginning of period
236
210
Number of new portfolio companies
11
14
Number of exited portfolio companies
(3
)
(17
)
Portfolio companies, end of period
244
207
Count of investments
569
492
Count of industries
26
26
New investment activity
Weighted average annual interest rate on new debt investments at par
9.2
%
9.1
%
Weighted average annual interest rate on new floating rate debt investments at par
8.5
%
9.1
%
Weighted average spread on new floating rate debt investments at par
4.8
%
4.8
%
Weighted average annual coupon on new fixed rate debt investments at par
12.3
%
12.0
%
Weighted average annual interest rate on exited or repaid investments at par
9.3
%
9.1
%
__________________
See Notes to Consolidated Financial Statements
PORTFOLIO AND INVESTMENT ACTIVITY
(amounts in thousands)
Six Months Ended June 30,
2026
2025
Net funded investment activity
New gross commitments at par 1
$
94,958
$
213,937
Net investments funded
110,177
234,080
Investments sold or repaid
(132,495
)
(310,552
)
Net funded (repaid) investment activity
$
(22,318
)
$
(76,472
)
Gross commitments at par 1
First-lien debt
$
76,106
$
197,219
Subordinated debt
3,516
13,330
Equity investments
15,336
3,388
Total gross commitments
$
94,958
$
213,937
Portfolio company activity
Portfolio companies, beginning of period
227
210
Number of new portfolio companies
24
26
Number of exited portfolio companies
(7
)
(29
)
Portfolio companies, end of period
244
207
Count of investments
569
492
Count of industries
26
26
New investment activity
Weighted average annual interest rate on new debt investments at par
8.5
%
9.3
%
Weighted average annual interest rate on new floating rate debt investments at par
8.4
%
9.1
%
Weighted average spread on new floating rate debt investments at par
4.7
%
4.8
%
Weighted average annual coupon on new fixed rate debt investments at par
11.0
%
12.6
%
Weighted average annual interest rate on exited or repaid investments at par
9.2
%
9.1
%
__________________
See Notes to Consolidated Financial Statements