Nuveen Churchill Expands Credit Facility

The lending corporation increases its financial flexibility while lowering interest rates on new borrowing.

October 09, 2024

Facility Expansion and Lower Borrowing Rates

Nuveen Churchill Direct Lending Corp. has made significant strides to strengthen its financial foundation by amending its Senior Secured Revolving Credit Agreement. The amendment, executed on October 4, 2024, introduces a new term loan tranche and raises the overall facility size from $250 million to $325 million. This adjustment reflects the company's growing need for capital in its direct lending operations, positioning it to take advantage of future opportunities in the lending market.

Aside from expanding the credit facility, Nuveen Churchill also secured more favorable borrowing terms. The applicable margin, which determines the interest rates on the company's borrowings, has been lowered from 2.125% to 2.000%. Additionally, the credit spread adjustment for loans tied to Term SOFR (Secured Overnight Financing Rate) with a three-month term has been reduced from 0.15% to 0.10%. For six-month loans, the adjustment dropped from 0.25% to 0.10%. These reductions in borrowing costs could lead to considerable savings as the company continues to expand its lending activities.

Strong Partnerships for Continued Growth

Nuveen Churchill continues to rely on well-established partnerships for managing its credit facility. Sumitomo Mitsui Banking Corporation serves as the administrative agent and sole bookrunner for the revolving credit agreement. Joint lead arrangers include Sumitomo Mitsui and Wells Fargo Securities LLC, ensuring that the company benefits from extensive support from these prominent financial institutions.

As an emerging growth company, Nuveen Churchill's decision to expand its credit facility and lower borrowing costs is a strategic step to stay competitive within the direct lending sector. The new terms of the credit agreement provide the corporation with increased financial flexibility, enabling it to pursue additional lending opportunities while maintaining lower operational costs.

This latest amendment signals the company's ongoing commitment to growth, with reduced interest rates allowing for greater efficiency in its financing strategy. By aligning its credit structure with market needs, Nuveen Churchill Direct Lending Corp. is positioned for long-term success within the increasingly competitive direct lending space.