Morgan Stanley Direct Lending Maintains Dividend Despite Declining Profits
On August 6, Morgan Stanley Direct Lending Fund (NYSE:MSDL) reported its second-quarter results for the period ending June 30. The company maintained a regular dividend of $0.45 per share, matching net investment income but down from $0.47 in the prior quarter. Net asset value also declined to $19.50 per share from $19.81 three months earlier. During the period, MSDL repurchased 831,486 shares at an average price of $15.06—well below its net asset value—and amended its Truist Credit Facility to extend maturities through April 2031. The company also issued new notes for $350 million with a coupon rate of 6.10%, providing liquidity ahead of maturing debt in early 2027. Despite these strategic moves, the fund faced challenges including non-accruals and declining investment income due to portfolio performance issues. Total net expenses increased slightly, leading to lower net investment income compared to the prior quarter.
Topics: debt management dividends net asset value (NAV) share repurchases