Churchill Asset Management has closed its fourth middle-market collateralized loan obligation at $350 million. The fund has a four-year reinvestment period and is comprised of mostly senior secured loans. Natixis Securities Americas LLC served as administrative agent and arranger of the transaction.
NEW YORK–(BUSINESS WIRE)–Churchill Asset Management LLC (“Churchill”), a majority-owned affiliate of Nuveen focused on originating, underwriting and managing middle-market senior loan investments, closed a $350 million middle-market collateralized loan obligation, Churchill Middle Market CLO IV Ltd. (the “Fund”).
“The successful closing of this Fund, amidst challenging conditions, reflects Churchill’s experience and long-standing presence in the CLO market,” said David Heilbrunn, Churchill’s Head of Product Development & Capital Raising. “We once again achieved competitive pricing – a testament to investor familiarity with Churchill’s underwriting and CLO management expertise.”
The Fund has a four-year reinvestment period and a collateral pool comprised of a diversified portfolio of senior secured loans, 90% of which have been purchased as of the closing date. The Fund’s capital structure includes nine classes of notes rated AAA through BB- by Standard & Poor’s, including two fixed-rate tranches and a BB class split into BB+ and BB- components.
The closing of Churchill Middle Market CLO IV Ltd. grows Churchill’s total committed capital under management to nearly $6.9 billion. Churchill is led by a senior investment team that has worked together for over thirteen years. To date, the Churchill team has invested over $12 billion in middle market senior loans across more than 600 transactions, acting as agent for over $23 billion of senior credit facilities.
“We are especially pleased with a continued strong financial commitment by TIAA, Nuveen’s parent, to the Fund, which aligns the bulk of the CLO’s equity capital with the long-term interests of our investors,” added Heilbrunn.
Natixis Securities Americas LLC (“Natixis”) served as the Fund’s Administrative Agent and Arranger of the transaction.
About Churchill Asset Management LLC
Based in New York, Churchill Asset Management LLC, a majority-owned affiliate of Nuveen (the asset management division of TIAA) is a leading provider of senior and unitranche debt financing for middle market companies, particularly those backed by top-tier private equity sponsors. Churchill has nearly $6.9 billion of committed capital under management and has broad experience in all aspects of the middle market financing business, including origination, structuring, credit analysis, syndication, and deal monitoring and oversight. More information can be found at www.churchillam.com.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients.
Churchill Asset Management is a registered investment advisor and majority-owned, indirect subsidiary of Teachers Insurance and Annuity Association of America. Certain Nuveen products are advised by Nuveen Alternatives Advisers LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Nuveen Securities, LLC, Members FINRA and SIPC.
Investments in middle market loans are subject to certain risks. Please consider all risks carefully prior to investing in any particular strategy. These investments are subject to credit risk and potentially limited liquidity, as well as interest rate risk, currency risk, prepayment and extension risk, and inflation risk.