PCAP taps Norinchukin Bank for $292.5M, cuts revolver cost
The nontraded BDC locks in a 2038 maturity at SOFR plus 1.58% while expanding its Scotiabank revolver.
Nuveen Churchill Private Capital Income Fund entered a $292.5 million securitized credit facility with Norinchukin Bank on Aug. 6, and separately repriced an existing Bank of Nova Scotia revolver, the fund said Aug. 12. The DI Wire reported the terms. PCAP, as the nontraded business development company is known, is externally managed by an affiliate of Nuveen, the investment arm of TIAA.
The facility sits in subsidiary NCPCIF SPV VI, LLC. S&P Global Ratings assigns AAA(sf) to the $247.5 million Class A-T loans and AA(sf) to the $45 million Class B loans. The larger tranche prices at SOFR plus 1.58%; the smaller at SOFR plus 1.93%. Reinvestment runs through July 25, 2030, and the facility as a whole matures July 25, 2038. Proceeds fully retired a separate Scotiabank credit agreement, which was terminated at closing.
The amended revolver grows to $550 million from $450 million. The margin eases to SOFR plus 1.925% from 2.025%. Both the reinvestment period and the maturity date move out about 15 months, to Aug. 6, 2028, and Aug. 6, 2035.
The debt work comes as PCAP finishes absorbing two affiliated funds. It bought substantially all of Nuveen Churchill BDC V's assets on May 1 for roughly $347 million, funded largely through Bank of America and Scotiabank borrowings, and assumed $511 million of BDC V debt. It folded in Nuveen Churchill Private Credit Fund in December 2024.
The 1.58% spread on AAA-rated loans with a 2038 maturity is inexpensive money for a decade-plus. The bigger, cheaper revolver adds headroom for the funding needs of the combined portfolio.