Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Morgan Stanley Direct Lending Fund Announces March 31, 2024 Financial Results and Declares Second Quarter 2024 Dividend of $0.50 per Share By: Morgan Stanley Direct Lending Fund via Business Wire May 09, 2024 at 16:15 PM EDT Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”), a business development company externally managed by MS Capital Partners Adviser Inc. (the “Adviser”), today announced its financial results for the first quarter ended March 31, 2024. “MSDL generated strong first quarter operating results, supported by continued stable credit performance,” said Jeffrey Levin, President and Chief Executive Officer of Morgan Stanley Direct Lending Fund. “We have constructed what we believe to be a resilient middle-market portfolio of senior, sponsor-backed loans and believe we are well positioned to generate strong risk-adjusted returns for our investors as market trends evolve.” QUARTERLY HIGHLIGHTS Net investment income of $54.7 million, or $0.63 per share; Net asset value of $20.67 per share, unchanged as compared to December 31, 2023, despite dilution from our Initial Public Offering (“IPO”); Debt-to-equity was 0.81x as of March 31, 2024, as compared to 0.87x as of December 31, 2023; New investment commitments of $232.1 million, fundings of $168.4 million and sales and repayments of $71.7 million, resulting in net funded portfolio increase of $96.7 million; and The Company’s Board of Directors (the “Board”) declared a regular dividend of $0.50 per share, paid on April 25, 2024 to stockholders of record as of March 29, 2024. SELECTED FINANCIAL HIGHLIGHTS For the Quarter Ended March 31, 2024 December 31, 2023 Net investment income per share $0.63 $0.67 Net realized and unrealized gains (losses) per share1 ($0.05) $0.03 Earnings per share $0.59 $0.70 Regular dividend per share $0.50 $0.50 Special dividend per share - $0.10 As of ($ in thousands, except per share information) March 31, 2024 December 31, 2023 Investments, at fair value $3,293,205 $3,193,561 Total debt outstanding, at principal $1,492,257 $1,502,263 Net assets $1,837,027 $1,721,151 Net asset value per share $20.67 $20.67 Debt to equity 0.81x 0.87x Net debt to equity 0.77x 0.83x 1 Amount shown may not correspond for the period as it includes the effect of the timing of the distribution and the issuance of common stock. RESULTS OF OPERATIONS Total investment income for the first quarter ended March 31, 2024 was $99.1 million, compared to $100.8 million for the fourth quarter ended December 31, 2023. The slight decrease was driven by a reduction in non-recurring repayment related income. Total operating expenses for the quarter ended March 31, 2024 were $44.5 million, compared to $45.3 million for the quarter ended December 31, 2023. The decrease in operating expenses quarter over quarter was attributable to lower interest and other financing expenses and lower incentive fees due to the partial incentive fee waiver for one year after the Company’s IPO and partially offset by higher management fees. Net investment income for the quarter ended March 31, 2024 was $54.7 million, or $0.63 per share, compared to $55.5 million, or $0.67 per share, for the quarter ended December 31, 2023. For the quarter ended March 31, 2024, net change in unrealized appreciation on investments was $2.7 million offset by realized losses of $5.6 million. PORTFOLIO AND INVESTMENT ACTIVITY As of March 31, 2024, the Company’s investment portfolio had a fair value of approximately $3.3 billion, comprised of 178 portfolio companies across 31 industries, with an average investment size of $18.5 million, or 0.6% of our total portfolio on a fair value basis. The composition of the Company’s investments was the following: March 31, 2024 December 31, 2023 ($ in thousands) Cost Fair Value % of Total Investments at Fair Value Cost Fair Value % of Total Investments Fair Value First Lien Debt $ 3,131,129 $ 3,115,404 94.6 % $ 3,027,413 $ 3,004,544 94.1 % Second Lien Debt 136,708 118,107 3.6 146,014 132,415 4.1 Other Investments 55,930 59,694 1.8 53,349 56,602 1.8 Total $ 3,323,767 $ 3,293,205 100.0 % $ 3,226,776 $ 3,193,561 100.0 % Investment activity for the three months ended March 31, 2024 and December 31, 2023, was as follows: Investment Activity: March 31, 2024 December 31, 2023 New investment commitments, at par $232,120 $242,891 Investment fundings $168,357 $253,867 Number of new Investment commitments in portfolio companies 9 12 Number of portfolio companies exited or fully repaid 3 5 Total weighted average yield of investments in debt securities at amortized cost and fair value was 11.9% and 12.0%, respectively, as of March 31, 2024, compared to 12.0% and 12.1%, respectively as of December 31, 2023. Floating rate debt investments as a percentage of total portfolio on a fair value basis remained unchanged from December 31, 2023 at 99.9% as of March 31, 2024. As of March 31, 2024, three investments were on non-accrual status, representing approximately 0.4% of total investments at amortized cost. CAPITAL AND LIQUIDITY As of March 31, 2024, the Company had total principal debt outstanding of $1,492.3 million, including $300.0 million outstanding in the Company’s BNP funding facility, $492.3 million outstanding in the Company’s Truist credit facility, $275.0 million outstanding in the Company’s senior unsecured notes due September 2025, and $425.0 million outstanding in the Company’s senior unsecured notes due February 2027. The combined weighted average interest rate on debt outstanding was 6.69% for the quarter ended March 31, 2024. As of March 31, 2024, the Company had $923.7 million of availability under its credit facilities and $64.8 million in cash. Debt to equity was 0.81x and 0.87x as of March 31, 2024 and December 31, 2023, respectively, with the decline primarily attributable to the IPO being executed during the first quarter. RECENT DEVELOPMENTS On May 8, 2024, the Board declared a distribution of $0.50 per share, which is payable on July 25, 2024 to shareholders of record as of June 28, 2024. On April 19, 2024, the Company executed an amendment to its Senior Secured Revolving Credit Facility with Truist Bank, extending the maturity from January 2028 to April 2029. As part of the amendment, the total commitment was increased from $1.12 to $1.30 billion and pricing terms were maintained. In late March, Fitch Ratings affirmed MSDL’s BBB- (stable) rating. CONFERENCE CALL INFORMATION Morgan Stanley Direct Lending Fund will host a conference call on Friday, May 10, 2024 at 10:00 am ET to review its financial results and conduct a question-and-answer session. All interested parties are invited to participate in the live earnings conference call by using the following dial-in numbers or audio webcast link available on the MSDL Investor Relations website: Audio Webcast Conference Call Domestic: 888-256-1007 International: 323-701-0225 Passcode: 6641924 To avoid potential delays, please join at least 10 minutes prior to the start of the earnings call. An archived replay will also be available on the MSDL Investor Relations website. About Morgan Stanley Direct Lending Fund Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. MSDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. MSDL is externally managed by MS Capital Partners Adviser Inc., an indirect, wholly owned subsidiary of Morgan Stanley. MSDL is not a subsidiary of or consolidated with Morgan Stanley. For more information about Morgan Stanley Direct Lending Fund, please visit www.msdl.com. Forward-Looking Statements Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or MSDL’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in MSDL’s filings with the U.S. Securities and Exchange Commission. MSDL undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share amounts) As of March 31, 2024 December 31, 2023 (Unaudited) (Audited) Assets Non-controlled/non-affiliated investments, at fair value (amortized cost of $3,323,767 and $3,226,776) $ 3,293,205 $ 3,193,561 Cash 64,762 69,705 Deferred financing costs 13,391 14,317 Interest and dividend receivable from non-controlled/non-affiliated investments 29,341 28,884 Subscription receivable — 41 Receivable for investments sold/repaid 348 173 Prepaid expenses and other assets 300 53 Total assets 3,401,347 3,306,734 Liabilities Debt (net of unamortized debt issuance costs of $4,982 and $5,564) 1,486,661 1,496,032 Payable for investment purchased 2,972 8 Payable to affiliates (Note 3) 2,511 2,870 Dividends payable 44,447 49,968 Management fees payable 5,132 2,012 Income based incentive fees payable 10,126 11,766 Interest payable 8,963 18,823 Accrued expenses and other liabilities 3,508 4,104 Total liabilities 1,564,320 1,585,583 Commitments and Contingencies (Note 7) Net assets Preferred stock, $0.001 par value (1,000,000 shares authorized; no shares issued and outstanding) — — Common stock, par value $0.001 (100,000,000 shares authorized; 88,894,490 and 83,278,831 shares issued and outstanding) 89 83 Paid-in capital in excess of par value 1,821,242 1,712,609 Total distributable earnings (loss) 15,696 8,459 Total net assets $ 1,837,027 $ 1,721,151 Total liabilities and net assets $ 3,401,347 $ 3,306,734 Net asset value per share $ 20.67 $ 20.67 Consolidated Statements of Operations (unaudited) (In thousands, except share amounts) For the Three Months Ended March 31, 2024 March 31, 2023 Investment Income: From non-controlled/non-affiliated investments: Interest income $ 94,631 $ 81,717 Payment-in-kind 2,644 441 Dividend income 565 496 Other income 1,261 985 Total investment income 99,101 83,639 Expenses: Interest and other financing expenses 27,260 26,667 Management fees 8,230 7,304 Income based incentive fees 11,336 9,381 Professional fees 1,217 1,241 Directors’ fees 146 80 Administrative service fees 25 54 General and other expenses 108 168 Total expenses 48,322 44,895 Management fees waiver (Note 3) (3,098 ) (5,478 ) Incentive fees waiver (Note 3) (1,210 ) — Net expenses 44,014 39,417 Net investment income (loss) before taxes 55,087 44,222 Excise tax expense 436 — Net investment income (loss) after taxes 54,651 44,222 Net realized and unrealized gain (loss): Net realized gain (loss) on non-controlled/non-affiliated investments (5,625 ) 122 Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated investments 2,658 (567 ) Net realized and unrealized gain (loss) (2,967 ) (445 ) Net increase (decrease) in net assets resulting from operations $ 51,684 $ 43,777 Net investment income (loss) per share (basic and diluted) $ 0.63 $ 0.62 Earnings per share (basic and diluted) $ 0.59 $ 0.62 Weighted average shares outstanding: 87,358,527 70,863,184 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509710535/en/Contacts Investors Michael Occi msdl@morganstanley.com Media Alyson Barnes 212-762-0514 alyson.barnes@morganstanley.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Morgan Stanley Direct Lending Fund Announces March 31, 2024 Financial Results and Declares Second Quarter 2024 Dividend of $0.50 per Share By: Morgan Stanley Direct Lending Fund via Business Wire May 09, 2024 at 16:15 PM EDT Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”), a business development company externally managed by MS Capital Partners Adviser Inc. (the “Adviser”), today announced its financial results for the first quarter ended March 31, 2024. “MSDL generated strong first quarter operating results, supported by continued stable credit performance,” said Jeffrey Levin, President and Chief Executive Officer of Morgan Stanley Direct Lending Fund. “We have constructed what we believe to be a resilient middle-market portfolio of senior, sponsor-backed loans and believe we are well positioned to generate strong risk-adjusted returns for our investors as market trends evolve.” QUARTERLY HIGHLIGHTS Net investment income of $54.7 million, or $0.63 per share; Net asset value of $20.67 per share, unchanged as compared to December 31, 2023, despite dilution from our Initial Public Offering (“IPO”); Debt-to-equity was 0.81x as of March 31, 2024, as compared to 0.87x as of December 31, 2023; New investment commitments of $232.1 million, fundings of $168.4 million and sales and repayments of $71.7 million, resulting in net funded portfolio increase of $96.7 million; and The Company’s Board of Directors (the “Board”) declared a regular dividend of $0.50 per share, paid on April 25, 2024 to stockholders of record as of March 29, 2024. SELECTED FINANCIAL HIGHLIGHTS For the Quarter Ended March 31, 2024 December 31, 2023 Net investment income per share $0.63 $0.67 Net realized and unrealized gains (losses) per share1 ($0.05) $0.03 Earnings per share $0.59 $0.70 Regular dividend per share $0.50 $0.50 Special dividend per share - $0.10 As of ($ in thousands, except per share information) March 31, 2024 December 31, 2023 Investments, at fair value $3,293,205 $3,193,561 Total debt outstanding, at principal $1,492,257 $1,502,263 Net assets $1,837,027 $1,721,151 Net asset value per share $20.67 $20.67 Debt to equity 0.81x 0.87x Net debt to equity 0.77x 0.83x 1 Amount shown may not correspond for the period as it includes the effect of the timing of the distribution and the issuance of common stock. RESULTS OF OPERATIONS Total investment income for the first quarter ended March 31, 2024 was $99.1 million, compared to $100.8 million for the fourth quarter ended December 31, 2023. The slight decrease was driven by a reduction in non-recurring repayment related income. Total operating expenses for the quarter ended March 31, 2024 were $44.5 million, compared to $45.3 million for the quarter ended December 31, 2023. The decrease in operating expenses quarter over quarter was attributable to lower interest and other financing expenses and lower incentive fees due to the partial incentive fee waiver for one year after the Company’s IPO and partially offset by higher management fees. Net investment income for the quarter ended March 31, 2024 was $54.7 million, or $0.63 per share, compared to $55.5 million, or $0.67 per share, for the quarter ended December 31, 2023. For the quarter ended March 31, 2024, net change in unrealized appreciation on investments was $2.7 million offset by realized losses of $5.6 million. PORTFOLIO AND INVESTMENT ACTIVITY As of March 31, 2024, the Company’s investment portfolio had a fair value of approximately $3.3 billion, comprised of 178 portfolio companies across 31 industries, with an average investment size of $18.5 million, or 0.6% of our total portfolio on a fair value basis. The composition of the Company’s investments was the following: March 31, 2024 December 31, 2023 ($ in thousands) Cost Fair Value % of Total Investments at Fair Value Cost Fair Value % of Total Investments Fair Value First Lien Debt $ 3,131,129 $ 3,115,404 94.6 % $ 3,027,413 $ 3,004,544 94.1 % Second Lien Debt 136,708 118,107 3.6 146,014 132,415 4.1 Other Investments 55,930 59,694 1.8 53,349 56,602 1.8 Total $ 3,323,767 $ 3,293,205 100.0 % $ 3,226,776 $ 3,193,561 100.0 % Investment activity for the three months ended March 31, 2024 and December 31, 2023, was as follows: Investment Activity: March 31, 2024 December 31, 2023 New investment commitments, at par $232,120 $242,891 Investment fundings $168,357 $253,867 Number of new Investment commitments in portfolio companies 9 12 Number of portfolio companies exited or fully repaid 3 5 Total weighted average yield of investments in debt securities at amortized cost and fair value was 11.9% and 12.0%, respectively, as of March 31, 2024, compared to 12.0% and 12.1%, respectively as of December 31, 2023. Floating rate debt investments as a percentage of total portfolio on a fair value basis remained unchanged from December 31, 2023 at 99.9% as of March 31, 2024. As of March 31, 2024, three investments were on non-accrual status, representing approximately 0.4% of total investments at amortized cost. CAPITAL AND LIQUIDITY As of March 31, 2024, the Company had total principal debt outstanding of $1,492.3 million, including $300.0 million outstanding in the Company’s BNP funding facility, $492.3 million outstanding in the Company’s Truist credit facility, $275.0 million outstanding in the Company’s senior unsecured notes due September 2025, and $425.0 million outstanding in the Company’s senior unsecured notes due February 2027. The combined weighted average interest rate on debt outstanding was 6.69% for the quarter ended March 31, 2024. As of March 31, 2024, the Company had $923.7 million of availability under its credit facilities and $64.8 million in cash. Debt to equity was 0.81x and 0.87x as of March 31, 2024 and December 31, 2023, respectively, with the decline primarily attributable to the IPO being executed during the first quarter. RECENT DEVELOPMENTS On May 8, 2024, the Board declared a distribution of $0.50 per share, which is payable on July 25, 2024 to shareholders of record as of June 28, 2024. On April 19, 2024, the Company executed an amendment to its Senior Secured Revolving Credit Facility with Truist Bank, extending the maturity from January 2028 to April 2029. As part of the amendment, the total commitment was increased from $1.12 to $1.30 billion and pricing terms were maintained. In late March, Fitch Ratings affirmed MSDL’s BBB- (stable) rating. CONFERENCE CALL INFORMATION Morgan Stanley Direct Lending Fund will host a conference call on Friday, May 10, 2024 at 10:00 am ET to review its financial results and conduct a question-and-answer session. All interested parties are invited to participate in the live earnings conference call by using the following dial-in numbers or audio webcast link available on the MSDL Investor Relations website: Audio Webcast Conference Call Domestic: 888-256-1007 International: 323-701-0225 Passcode: 6641924 To avoid potential delays, please join at least 10 minutes prior to the start of the earnings call. An archived replay will also be available on the MSDL Investor Relations website. About Morgan Stanley Direct Lending Fund Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. MSDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. MSDL is externally managed by MS Capital Partners Adviser Inc., an indirect, wholly owned subsidiary of Morgan Stanley. MSDL is not a subsidiary of or consolidated with Morgan Stanley. For more information about Morgan Stanley Direct Lending Fund, please visit www.msdl.com. Forward-Looking Statements Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or MSDL’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in MSDL’s filings with the U.S. Securities and Exchange Commission. MSDL undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share amounts) As of March 31, 2024 December 31, 2023 (Unaudited) (Audited) Assets Non-controlled/non-affiliated investments, at fair value (amortized cost of $3,323,767 and $3,226,776) $ 3,293,205 $ 3,193,561 Cash 64,762 69,705 Deferred financing costs 13,391 14,317 Interest and dividend receivable from non-controlled/non-affiliated investments 29,341 28,884 Subscription receivable — 41 Receivable for investments sold/repaid 348 173 Prepaid expenses and other assets 300 53 Total assets 3,401,347 3,306,734 Liabilities Debt (net of unamortized debt issuance costs of $4,982 and $5,564) 1,486,661 1,496,032 Payable for investment purchased 2,972 8 Payable to affiliates (Note 3) 2,511 2,870 Dividends payable 44,447 49,968 Management fees payable 5,132 2,012 Income based incentive fees payable 10,126 11,766 Interest payable 8,963 18,823 Accrued expenses and other liabilities 3,508 4,104 Total liabilities 1,564,320 1,585,583 Commitments and Contingencies (Note 7) Net assets Preferred stock, $0.001 par value (1,000,000 shares authorized; no shares issued and outstanding) — — Common stock, par value $0.001 (100,000,000 shares authorized; 88,894,490 and 83,278,831 shares issued and outstanding) 89 83 Paid-in capital in excess of par value 1,821,242 1,712,609 Total distributable earnings (loss) 15,696 8,459 Total net assets $ 1,837,027 $ 1,721,151 Total liabilities and net assets $ 3,401,347 $ 3,306,734 Net asset value per share $ 20.67 $ 20.67 Consolidated Statements of Operations (unaudited) (In thousands, except share amounts) For the Three Months Ended March 31, 2024 March 31, 2023 Investment Income: From non-controlled/non-affiliated investments: Interest income $ 94,631 $ 81,717 Payment-in-kind 2,644 441 Dividend income 565 496 Other income 1,261 985 Total investment income 99,101 83,639 Expenses: Interest and other financing expenses 27,260 26,667 Management fees 8,230 7,304 Income based incentive fees 11,336 9,381 Professional fees 1,217 1,241 Directors’ fees 146 80 Administrative service fees 25 54 General and other expenses 108 168 Total expenses 48,322 44,895 Management fees waiver (Note 3) (3,098 ) (5,478 ) Incentive fees waiver (Note 3) (1,210 ) — Net expenses 44,014 39,417 Net investment income (loss) before taxes 55,087 44,222 Excise tax expense 436 — Net investment income (loss) after taxes 54,651 44,222 Net realized and unrealized gain (loss): Net realized gain (loss) on non-controlled/non-affiliated investments (5,625 ) 122 Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated investments 2,658 (567 ) Net realized and unrealized gain (loss) (2,967 ) (445 ) Net increase (decrease) in net assets resulting from operations $ 51,684 $ 43,777 Net investment income (loss) per share (basic and diluted) $ 0.63 $ 0.62 Earnings per share (basic and diluted) $ 0.59 $ 0.62 Weighted average shares outstanding: 87,358,527 70,863,184 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509710535/en/Contacts Investors Michael Occi msdl@morganstanley.com Media Alyson Barnes 212-762-0514 alyson.barnes@morganstanley.com
Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”), a business development company externally managed by MS Capital Partners Adviser Inc. (the “Adviser”), today announced its financial results for the first quarter ended March 31, 2024. “MSDL generated strong first quarter operating results, supported by continued stable credit performance,” said Jeffrey Levin, President and Chief Executive Officer of Morgan Stanley Direct Lending Fund. “We have constructed what we believe to be a resilient middle-market portfolio of senior, sponsor-backed loans and believe we are well positioned to generate strong risk-adjusted returns for our investors as market trends evolve.” QUARTERLY HIGHLIGHTS Net investment income of $54.7 million, or $0.63 per share; Net asset value of $20.67 per share, unchanged as compared to December 31, 2023, despite dilution from our Initial Public Offering (“IPO”); Debt-to-equity was 0.81x as of March 31, 2024, as compared to 0.87x as of December 31, 2023; New investment commitments of $232.1 million, fundings of $168.4 million and sales and repayments of $71.7 million, resulting in net funded portfolio increase of $96.7 million; and The Company’s Board of Directors (the “Board”) declared a regular dividend of $0.50 per share, paid on April 25, 2024 to stockholders of record as of March 29, 2024. SELECTED FINANCIAL HIGHLIGHTS For the Quarter Ended March 31, 2024 December 31, 2023 Net investment income per share $0.63 $0.67 Net realized and unrealized gains (losses) per share1 ($0.05) $0.03 Earnings per share $0.59 $0.70 Regular dividend per share $0.50 $0.50 Special dividend per share - $0.10 As of ($ in thousands, except per share information) March 31, 2024 December 31, 2023 Investments, at fair value $3,293,205 $3,193,561 Total debt outstanding, at principal $1,492,257 $1,502,263 Net assets $1,837,027 $1,721,151 Net asset value per share $20.67 $20.67 Debt to equity 0.81x 0.87x Net debt to equity 0.77x 0.83x 1 Amount shown may not correspond for the period as it includes the effect of the timing of the distribution and the issuance of common stock. RESULTS OF OPERATIONS Total investment income for the first quarter ended March 31, 2024 was $99.1 million, compared to $100.8 million for the fourth quarter ended December 31, 2023. The slight decrease was driven by a reduction in non-recurring repayment related income. Total operating expenses for the quarter ended March 31, 2024 were $44.5 million, compared to $45.3 million for the quarter ended December 31, 2023. The decrease in operating expenses quarter over quarter was attributable to lower interest and other financing expenses and lower incentive fees due to the partial incentive fee waiver for one year after the Company’s IPO and partially offset by higher management fees. Net investment income for the quarter ended March 31, 2024 was $54.7 million, or $0.63 per share, compared to $55.5 million, or $0.67 per share, for the quarter ended December 31, 2023. For the quarter ended March 31, 2024, net change in unrealized appreciation on investments was $2.7 million offset by realized losses of $5.6 million. PORTFOLIO AND INVESTMENT ACTIVITY As of March 31, 2024, the Company’s investment portfolio had a fair value of approximately $3.3 billion, comprised of 178 portfolio companies across 31 industries, with an average investment size of $18.5 million, or 0.6% of our total portfolio on a fair value basis. The composition of the Company’s investments was the following: March 31, 2024 December 31, 2023 ($ in thousands) Cost Fair Value % of Total Investments at Fair Value Cost Fair Value % of Total Investments Fair Value First Lien Debt $ 3,131,129 $ 3,115,404 94.6 % $ 3,027,413 $ 3,004,544 94.1 % Second Lien Debt 136,708 118,107 3.6 146,014 132,415 4.1 Other Investments 55,930 59,694 1.8 53,349 56,602 1.8 Total $ 3,323,767 $ 3,293,205 100.0 % $ 3,226,776 $ 3,193,561 100.0 % Investment activity for the three months ended March 31, 2024 and December 31, 2023, was as follows: Investment Activity: March 31, 2024 December 31, 2023 New investment commitments, at par $232,120 $242,891 Investment fundings $168,357 $253,867 Number of new Investment commitments in portfolio companies 9 12 Number of portfolio companies exited or fully repaid 3 5 Total weighted average yield of investments in debt securities at amortized cost and fair value was 11.9% and 12.0%, respectively, as of March 31, 2024, compared to 12.0% and 12.1%, respectively as of December 31, 2023. Floating rate debt investments as a percentage of total portfolio on a fair value basis remained unchanged from December 31, 2023 at 99.9% as of March 31, 2024. As of March 31, 2024, three investments were on non-accrual status, representing approximately 0.4% of total investments at amortized cost. CAPITAL AND LIQUIDITY As of March 31, 2024, the Company had total principal debt outstanding of $1,492.3 million, including $300.0 million outstanding in the Company’s BNP funding facility, $492.3 million outstanding in the Company’s Truist credit facility, $275.0 million outstanding in the Company’s senior unsecured notes due September 2025, and $425.0 million outstanding in the Company’s senior unsecured notes due February 2027. The combined weighted average interest rate on debt outstanding was 6.69% for the quarter ended March 31, 2024. As of March 31, 2024, the Company had $923.7 million of availability under its credit facilities and $64.8 million in cash. Debt to equity was 0.81x and 0.87x as of March 31, 2024 and December 31, 2023, respectively, with the decline primarily attributable to the IPO being executed during the first quarter. RECENT DEVELOPMENTS On May 8, 2024, the Board declared a distribution of $0.50 per share, which is payable on July 25, 2024 to shareholders of record as of June 28, 2024. On April 19, 2024, the Company executed an amendment to its Senior Secured Revolving Credit Facility with Truist Bank, extending the maturity from January 2028 to April 2029. As part of the amendment, the total commitment was increased from $1.12 to $1.30 billion and pricing terms were maintained. In late March, Fitch Ratings affirmed MSDL’s BBB- (stable) rating. CONFERENCE CALL INFORMATION Morgan Stanley Direct Lending Fund will host a conference call on Friday, May 10, 2024 at 10:00 am ET to review its financial results and conduct a question-and-answer session. All interested parties are invited to participate in the live earnings conference call by using the following dial-in numbers or audio webcast link available on the MSDL Investor Relations website: Audio Webcast Conference Call Domestic: 888-256-1007 International: 323-701-0225 Passcode: 6641924 To avoid potential delays, please join at least 10 minutes prior to the start of the earnings call. An archived replay will also be available on the MSDL Investor Relations website. About Morgan Stanley Direct Lending Fund Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. MSDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. MSDL is externally managed by MS Capital Partners Adviser Inc., an indirect, wholly owned subsidiary of Morgan Stanley. MSDL is not a subsidiary of or consolidated with Morgan Stanley. For more information about Morgan Stanley Direct Lending Fund, please visit www.msdl.com. Forward-Looking Statements Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or MSDL’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in MSDL’s filings with the U.S. Securities and Exchange Commission. MSDL undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share amounts) As of March 31, 2024 December 31, 2023 (Unaudited) (Audited) Assets Non-controlled/non-affiliated investments, at fair value (amortized cost of $3,323,767 and $3,226,776) $ 3,293,205 $ 3,193,561 Cash 64,762 69,705 Deferred financing costs 13,391 14,317 Interest and dividend receivable from non-controlled/non-affiliated investments 29,341 28,884 Subscription receivable — 41 Receivable for investments sold/repaid 348 173 Prepaid expenses and other assets 300 53 Total assets 3,401,347 3,306,734 Liabilities Debt (net of unamortized debt issuance costs of $4,982 and $5,564) 1,486,661 1,496,032 Payable for investment purchased 2,972 8 Payable to affiliates (Note 3) 2,511 2,870 Dividends payable 44,447 49,968 Management fees payable 5,132 2,012 Income based incentive fees payable 10,126 11,766 Interest payable 8,963 18,823 Accrued expenses and other liabilities 3,508 4,104 Total liabilities 1,564,320 1,585,583 Commitments and Contingencies (Note 7) Net assets Preferred stock, $0.001 par value (1,000,000 shares authorized; no shares issued and outstanding) — — Common stock, par value $0.001 (100,000,000 shares authorized; 88,894,490 and 83,278,831 shares issued and outstanding) 89 83 Paid-in capital in excess of par value 1,821,242 1,712,609 Total distributable earnings (loss) 15,696 8,459 Total net assets $ 1,837,027 $ 1,721,151 Total liabilities and net assets $ 3,401,347 $ 3,306,734 Net asset value per share $ 20.67 $ 20.67 Consolidated Statements of Operations (unaudited) (In thousands, except share amounts) For the Three Months Ended March 31, 2024 March 31, 2023 Investment Income: From non-controlled/non-affiliated investments: Interest income $ 94,631 $ 81,717 Payment-in-kind 2,644 441 Dividend income 565 496 Other income 1,261 985 Total investment income 99,101 83,639 Expenses: Interest and other financing expenses 27,260 26,667 Management fees 8,230 7,304 Income based incentive fees 11,336 9,381 Professional fees 1,217 1,241 Directors’ fees 146 80 Administrative service fees 25 54 General and other expenses 108 168 Total expenses 48,322 44,895 Management fees waiver (Note 3) (3,098 ) (5,478 ) Incentive fees waiver (Note 3) (1,210 ) — Net expenses 44,014 39,417 Net investment income (loss) before taxes 55,087 44,222 Excise tax expense 436 — Net investment income (loss) after taxes 54,651 44,222 Net realized and unrealized gain (loss): Net realized gain (loss) on non-controlled/non-affiliated investments (5,625 ) 122 Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated investments 2,658 (567 ) Net realized and unrealized gain (loss) (2,967 ) (445 ) Net increase (decrease) in net assets resulting from operations $ 51,684 $ 43,777 Net investment income (loss) per share (basic and diluted) $ 0.63 $ 0.62 Earnings per share (basic and diluted) $ 0.59 $ 0.62 Weighted average shares outstanding: 87,358,527 70,863,184 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509710535/en/
Investors Michael Occi msdl@morganstanley.com Media Alyson Barnes 212-762-0514 alyson.barnes@morganstanley.com
