KBRA Assigns Rating to Morgan Stanley Direct Lending Fund's $350 Million Senior Unsecured Notes
KBRA assigned a BBB rating with Stable Outlook to Morgan Stanley Direct Lending Fund's (MSDL) $350 million, 6.10% senior unsecured notes due July 15, 2031. MSDL is an externally managed BDC whose adviser is a wholly owned subsidiary of Morgan Stanley, but it is neither a subsidiary nor consolidated with MS, and MS has no obligation to financially support it. The rating reflects MSDL's $3.7 billion diversified portfolio (93.8% first-lien senior secured loans), 1.22x gross leverage, and strong ties to the Morgan Stanley ecosystem, including access to MS' sponsor relationships and the broader private credit platform.
Key figures
- Deal Value Usd
- 350000000
- Ms aum
- ~$1.9 trillion
- Rating
- BBB
- Maturity
- July 15, 2031
- Coupon rate
- 6.10%
- Rating outlook
- Stable
- Msdl portfolio fv
- $3.7 billion
- Unrestricted cash
- $96.7 million
- Non accrual pct fv
- 1.0%
- Msdl gross leverage
- 1.22x
- Non accrual pct cost
- 1.5%
- Unfunded commitments
- $449 million
- Mspc committed capital
- $23 billion
- Bank credit availability
- ~$1.4 billion
- Msdl target leverage range
- 1.0x to 1.25x
- Notes due within two years
- $425 million
- Senior unsecured pct of debt
- ~54%
AI analysis
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