Morgan Stanley Direct Lending (MSDL) Holds Its Dividend As Profits Slip

Morgan Stanley Direct Lending (MSDL) maintained its dividend at $0.45 per share despite a decline in net investment income during the quarter. The fund reported a net investment income of $38.2 million, down from $40.5 million in the previous period. Net asset value also dropped from $19.81 to $19.50 per share. The company repurchased 831,486 shares at an average price of $15.06, below its net asset value.

MSDL extended the termination date of its Truist Credit Facility to April 2030 and adjusted the final maturity to April 2031. The company issued $350 million of 6.10% notes due July 2031. The weighted average yield on debt investments decreased slightly to 9.1% at amortized cost and 9.4% at fair value. Hedge fund ownership in MSDL fell from 19 funds to 18. The forward price-to-earnings ratio of 7.87 indicates a bearish sentiment on the stock.