Churchill Asset Management LLC, an investment specialist of Nuveen that provides customized financing solutions to U.S middle market-focused private equity sponsors and their portfolio companies, today announced the closing of a $400 million middle market collateralized loan obligation (“CLO”), Churchill MMSLF CLO III, on January 24, 2024.
The CLO was structured in connection with Churchill’s co-investment partnership with Mubadala Investment Company - which exceeds $1 billion in size - and has helped to diversify the financing structure for the partnership. The transaction represents the third CLO that Churchill priced in 2023 and the eighth outstanding CLO under management, bringing CLO assets under management to approximately $3.5 billion.
“We are pleased to build upon Churchill’s 17-year track record as a leading middle market asset manager with the successful closing of this transaction,” said Kelli Marti, Churchill’s Head of CLO Management. “Both the outstanding support from new and existing investors as well as the competitive pricing achieved were a testament to investor confidence in our time-tested investment approach and CLO management expertise. We look forward to continuing to build on this momentum and already have a robust 2024 pipeline across our CLO platform and broader private capital business.”
Fabrizio Bocciardi, Head of Credit Investments, Mubadala, said: “The CLO market offers a compelling alternative to finance diversified portfolios of middle market leveraged loans and is a natural expansion of our relationship with Churchill. We are a long-term investor in middle market leveraged loans and have invested in the asset class since 2009 as the opportunity generates attractive risk adjusted returns across credit cycles.”
The CLO has a four-year reinvestment period and a collateral pool comprised of a diversified portfolio of senior secured loans, approximately 80% of which have been accumulated as of the closing date. The CLO’s capital structure includes six classes of notes rated AAA through BB- by Standard & Poor’s. Mubadala holds the majority of the CLO’s Subordinated Notes.
Wells Fargo served as the Administrative Agent and Arranger of the transaction.
About Churchill Asset Management LLC
Churchill, an investment-specialist affiliate of Nuveen (the asset manager of TIAA), provides customized financing solutions to middle market private equity firms and their portfolio companies across the capital structure. With over $50 billion of committed capital, we provide first lien, unitranche, second lien and mezzanine debt, in addition to equity co-investments, secondary solutions and private equity fund commitments. Churchill has a long history of disciplined investing across multiple economic cycles and our unique origination strategy, execution and investment are driven by 170 professionals in New York, Charlotte, Chicago, Dallas and Los Angeles. To learn more about Churchill, visit https://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. Securities offered through Nuveen Securities, LLC, member FINRA and SIPC.
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Contacts
Madison Hanlon,
pro-churchill@prosek.com
