MSDL reports Q2 net investment income of $0.45 per share, down from $0.47, while maintaining its $0.45 distribution for Q3.
Morgan Stanley Direct Lending Fund (NYSE:MSDL) posted second-quarter net investment income of $0.45 per share, a decline from $0.47 in the prior quarter. The board maintained the $0.45 per share distribution for the third quarter, citing normalized earnings power despite the drop.
Net asset value fell to $19.50 per share, with non-accruals rising to 2.9% of investments at cost. However, portfolio fundamentals remained stable, with 95% of assets risk-rated 2 or better and improving EBITDA and interest-coverage metrics.
The fund expanded financing capacity, issuing $350 million in five-year unsecured notes at a 6.10% coupon, and repurchased $12.5 million of shares below NAV. It also invested an additional $10 million in its Capstone joint venture, which supports $426 million in commitments across 58 companies.