Nuveen Churchill ends loan agreement with Wells Fargo

Nuveen Churchill Direct Lending Corp. (NYSE:NCDL), a $944 million market cap company currently trading at $17.05, has officially terminated a significant loan and security agreement with Wells Fargo (NYSE:WFC) Bank, National Association, and other parties, the company disclosed on Wednesday. According to InvestingPro data, the company stands out for its significant dividend payments and low price volatility. The Maryland-based investment firm, specializing in direct lending, concluded the agreement initially established on December 31, 2019, with Nuveen Churchill BDC SPV V, LLC, as the borrower.

The termination occurred on January 23, 2025, following the fulfillment of all outstanding obligations, including the repayment of principal, interest, and other associated fees. The agreement’s conclusion also involved the release of the security interest over the collateral that had been granted to Wells Fargo and the lenders under the terms of the agreement.

This move comes as part of Nuveen Churchill Direct Lending Corp.’s broader financial management strategy. The company’s decision to end this agreement was carried out in accordance with the satisfaction of all related financial liabilities to the lenders. The company maintains a notable dividend yield of 10.45% and trades at a P/E ratio of 10.21, as reported by InvestingPro.

The company, which operates under the legal framework of the Securities Exchange Act of 1934, has ensured that all procedural requirements for the termination of the agreement were duly met. The announcement was made in line with the company’s commitment to transparency and regulatory compliance.

The information regarding the termination of this material definitive agreement is based on a press release statement and has been filed with the Securities and Exchange Commission (SEC). The details of this corporate action are contained within the company’s latest Form 8-K filing, which is publicly available through the SEC’s database.

Nuveen Churchill Direct Lending Corp. has not disclosed any further plans or strategies following this termination. With analyst price targets ranging from $17 to $19, the company’s actions are likely to be closely watched by investors and market analysts, as they may influence the company’s financial structure and future lending capabilities. For comprehensive financial health metrics and additional insights, investors can access detailed analysis through InvestingPro.

In other recent news, Nuveen Churchill Direct Lending Corp. has issued $300 million in 6.650% notes due March 15, 2030. This Maryland-based investment company, with a notable 10.6% dividend yield and a market capitalization of $930 million, successfully closed the transaction, resulting in a direct financial obligation. The notes are unsecured and rank equally with Nuveen Churchill’s other unsubordinated unsecured debt.

The proceeds from the note issuance will be utilized to repay outstanding debts on the company’s secured special purpose vehicle asset credit facility with Wells Fargo Bank, N.A., and partially repay indebtedness under the senior secured revolving credit facility with Sumitomo Mitsui (NYSE:SMFG) Banking Corporation. Any remaining funds may be directed towards general corporate purposes, including investments that align with the company’s objectives and strategies.

This recent development indicates Nuveen Churchill’s strategy to manage its debt profile and secure funding for its operations and investments. Furthermore, the company is required to adhere to specific financial ratios and provide regular financial information to note holders and the trustee, U.S. Bank Trust Company, National Association, as per the indenture’s covenants.

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