MidCap Financial Investment Corporation (NASDAQ: MFIC) or the
“Company,” today announced financial results for its quarter ended
June 30, 2023. The Company’s net investment income was $0.44
per share for the quarter ended June 30, 2023, compared to
$0.45 per share for the quarter ended March 31, 2023. The Company’s
net asset value (“NAV”) was $15.20 per share as of June 30,
2023, compared to $15.18 as of March 31, 2023.
On August 2, 2023, the Board of Directors
declared a dividend of $0.38 per share payable on September 28,
2023 to shareholders of record as of September 12, 2023.
Mr. Tanner Powell, the Company’s Chief Executive
Officer commented, “We are very pleased with our performance for
the June quarter which includes strong net investment income, an
increase in net asset value per share, and stable credit quality.
Net investment income per share exceeded the quarterly distribution
by approximately 16%. We are particularly pleased with these
results when considering the relatively muted transaction
environment which resulted in below normal prepayment income.” Mr.
Powell continued, “These results demonstrate the value of our first
lien senior secured investment strategy which continues to perform
well, even in a more challenging operating environment.”
___________________
(1) Commitments made for the corporate lending
portfolio. (2) Gross fundings for corporate lending include $0.1
million of equity.(3) The Company’s net leverage ratio is defined
as debt outstanding plus payable for investments purchased, less
receivable for investments sold, less cash and cash equivalents,
less foreign currencies, divided by net assets.(4) Lender
commitments under the Facility will remain $1.705 billion until
December 22, 2024 and will decrease to $1.550 billion thereafter.
The final maturity date was extended by over two years from
December 22, 2025 to April 19, 2028. The primary benchmark
applicable to U.S. dollars was changed from LIBOR to SOFR and the
spread under the facility was changed from 2% to an all-in spread
of 1.975%, depending on the Gross Borrowing Base at the time. The
covenants and representations and warranties the Company is
required to comply with were also modified, but the remaining terms
and conditions of the Facility remain substantially the same. (5)
The dividend is payable on September 28, 2023 to stockholders of
record on September 12, 2023.
FINANCIAL HIGHLIGHTS
($ in billions, except
per share data) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
Total assets |
|
$ |
2.50 |
|
$ |
2.49 |
|
$ |
2.53 |
|
$ |
2.57 |
|
$ |
2.64 |
|
Investment portfolio (fair
value) |
|
$ |
2.41 |
|
$ |
2.39 |
|
$ |
2.40 |
|
$ |
2.46 |
|
$ |
2.55 |
|
Debt outstanding |
|
$ |
1.48 |
|
$ |
1.47 |
|
$ |
1.48 |
|
$ |
1.50 |
|
$ |
1.60 |
|
Net assets |
|
$ |
0.99 |
|
$ |
0.99 |
|
$ |
0.99 |
|
$ |
1.01 |
|
$ |
0.99 |
|
Net asset value per share |
|
$ |
15.20 |
|
$ |
15.18 |
|
$ |
15.10 |
|
$ |
15.45 |
|
$ |
15.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-equity ratio |
|
|
1.49 x |
|
|
1.48 x |
|
|
1.50 x |
|
|
1.49 x |
|
|
1.62 x |
|
Net leverage ratio (1) |
|
|
1.45 x |
|
|
1.41 x |
|
|
1.41 x |
|
|
1.42 x |
|
|
1.58 x |
|
____________________
(1) The Company’s net leverage ratio is defined
as debt outstanding plus payable for investments purchased, less
receivable for investments sold, less cash and cash equivalents,
less foreign currencies, divided by net assets.
PORTFOLIO AND INVESTMENT
ACTIVITY
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in
millions)* |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Investments made in portfolio companies |
|
$ |
101.6 |
|
|
$ |
227.4 |
|
|
$ |
252.7 |
|
|
$ |
447.5 |
|
Investments sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.7 |
) |
Net activity before repaid
investments |
|
|
101.6 |
|
|
|
227.4 |
|
|
|
252.7 |
|
|
|
437.8 |
|
Investments repaid |
|
|
(79.2 |
) |
|
|
(184.0 |
) |
|
|
(250.8 |
) |
|
|
(448.6 |
) |
Net investment activity |
|
$ |
22.4 |
|
|
$ |
43.4 |
|
|
$ |
1.9 |
|
|
$ |
(10.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio companies, at
beginning of period |
|
|
141 |
|
|
|
139 |
|
|
|
135 |
|
|
|
139 |
|
Number of investments in new
portfolio companies |
|
|
12 |
|
|
|
7 |
|
|
|
20 |
|
|
|
13 |
|
Number of exited
companies |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
Portfolio companies at end of
period |
|
|
150 |
|
|
|
140 |
|
|
|
150 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of investments in
existing portfolio companies |
|
|
40 |
|
|
|
53 |
|
|
|
61 |
|
|
|
72 |
|
____________________
* Totals may not foot due to rounding.
OPERATING RESULTS
|
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
|
(in
millions)* |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net investment income |
|
$ |
28.9 |
|
|
$ |
23.5 |
|
|
$ |
58.3 |
|
|
$ |
50.4 |
|
Net realized and change in
unrealized gains (losses) |
|
|
(3.4 |
) |
|
|
(17.8 |
) |
|
|
(2.8 |
) |
|
|
(40.5 |
) |
Net increase in net assets
resulting from operations |
|
$ |
25.4 |
|
|
$ |
5.7 |
|
|
$ |
55.5 |
|
|
$ |
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share)*
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income on per
average share basis |
|
$ |
0.44 |
|
|
$ |
0.37 |
|
|
$ |
0.89 |
|
|
$ |
0.79 |
|
Net realized and change in
unrealized gain (loss) per share |
|
|
(0.05 |
) |
|
|
(0.28 |
) |
|
|
(0.04 |
) |
|
|
(0.63 |
) |
Earnings per share —
basic |
|
$ |
0.39 |
|
|
$ |
0.09 |
|
|
$ |
0.85 |
|
|
$ |
0.16 |
|
____________________
* Totals may not foot due to rounding.
(1) Based on the weighted average number of
shares outstanding for the period
presented.
SHARE REPURCHASE PROGRAM *
During the three months ended June 30,
2023, the Company repurchased 198,084 shares at a weighted average
price per share of $11.60, inclusive of commissions, for a total
cost of $2.3 million. This represent a discount of approximately
23.63% of the average net asset value per share for the three
months ended June 30, 2023.
Since the inception of the share repurchase
program and through August 1, 2023, the Company repurchased
15,593,120 shares at a weighted average price per share of $15.91,
inclusive of commissions, for a total cost of $248.1 million,
leaving a maximum of $26.9 million available for future purchases
under the current Board authorization of $275 million.
* Share figures have been adjusted for the
1-for-3 reverse stock split which was completed after market close
on November 30, 2018.
LIQUIDITY
As of June 30, 2023, the Company’s
outstanding debt obligations, excluding deferred financing cost and
debt discount of $3.6 million, totaled $1.486 billion which was
comprised of $350 million of Senior Unsecured Notes (the “2025
Notes”) which will mature on March 3, 2025, $125 million of
Unsecured Notes (the “2026 Notes”) which will mature on July 16,
2026 and $1.0 billion outstanding under the multi-currency
revolving credit facility (the “Facility”). As of June 30,
2023, $59.7 million in standby letters of credit were issued
through the Facility. The available remaining capacity under the
Facility was $634.2 million as of June 30, 2023, which is
subject to compliance with a borrowing base that applies different
advance rates to different types of assets in the Company’s
portfolio.
On April 19, 2023, the Company amended and
extended the Facility. Lender commitments under the Facility will
remain $1.705 billion until December 22, 2024 and will decrease to
$1.550 billion thereafter. The final maturity date was extended by
over two years from December 22, 2025 to April 19, 2028. The
primary benchmark applicable to U.S. dollars was changed from LIBOR
to SOFR and the spread under the facility was changed from 2% to an
all-in spread of 1.975% depending on the Gross Borrowing Base at
the time. The covenants and representations and warranties the
Company is required to comply with were also modified, but the
remaining terms and conditions of the Facility remain substantially
the same.
CONFERENCE CALL / WEBCAST AT 5:00 PM EDT
ON AUGUST 2, 2023
The Company will host a conference call on
Wednesday, August 2, 2023, at 5:00 p.m. Eastern Time. All
interested parties are welcome to participate in the conference
call by dialing (800) 343-4849 approximately 5-10 minutes prior to
the call; international callers should dial (203) 518-9783.
Participants should reference either MidCap Financial Investment
Corporation Earnings or Conference ID: MFIC0802 when prompted. A
simultaneous webcast of the conference call will be available to
the public on a listen-only basis and can be accessed through the
Events Calendar in the Shareholders section of our website at
www.midcapfinancialic.com. Following the call, you may access a
replay of the event either telephonically or via audio webcast. The
telephonic replay will be available approximately two hours after
the live call and through August 23, 2023, by dialing (800)
925-9941; international callers should dial (402) 220-5395. A
replay of the audio webcast will also be available later that same
day. To access the audio webcast please visit the Events Calendar
in the Shareholders section of our website at
www.midcapfinancialic.com.
SUPPLEMENTAL INFORMATION
The Company provides a supplemental information
package to offer more transparency into its financial results and
make its reporting more informative and easier to follow. The
supplemental package is available in the Shareholders section of
the Company’s website under Presentations at
www.midcapfinancialic.com.
Our portfolio composition and weighted average
yields as of June 30, 2023, March 31, 2023, December 31, 2022,
September 30, 2022, and June 30, 2022 were as follows:
|
|
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
|
September 30,2022 |
|
|
June 30,2022 |
Portfolio composition, at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First lien secured debt |
|
|
88% |
|
|
89% |
|
|
89% |
|
|
87% |
|
|
91% |
Second lien secured debt |
|
|
3% |
|
|
3% |
|
|
3% |
|
|
4% |
|
|
4% |
Total secured debt |
|
|
91% |
|
|
92% |
|
|
92% |
|
|
91% |
|
|
95% |
Unsecured debt |
|
|
0% |
|
|
0% |
|
|
—% |
|
|
—% |
|
|
—% |
Structured products and
other |
|
|
2% |
|
|
0% |
|
|
0% |
|
|
0% |
|
|
0% |
Preferred equity |
|
|
1% |
|
|
2% |
|
|
2% |
|
|
2% |
|
|
1% |
Common equity/interests and
warrants |
|
|
6% |
|
|
6% |
|
|
6% |
|
|
7% |
|
|
4% |
Weighted average
yields, at amortized cost (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First lien secured debt
(2) |
|
|
11.7% |
|
|
11.4% |
|
|
10.8% |
|
|
9.6% |
|
|
8.4% |
Second lien secured debt
(2) |
|
|
14.2% |
|
|
13.7% |
|
|
13.2% |
|
|
11.8% |
|
|
11.7% |
Total secured debt (2) |
|
|
11.8% |
|
|
11.4% |
|
|
10.9% |
|
|
9.6% |
|
|
8.6% |
Unsecured debt portfolio
(2) |
|
|
10.0% |
|
|
10.0% |
|
|
10.0% |
|
|
—% |
|
|
—% |
Total debt portfolio (2) |
|
|
11.8% |
|
|
11.4% |
|
|
10.9% |
|
|
9.6% |
|
|
8.6% |
Total portfolio (3) |
|
|
10.0% |
|
|
9.7% |
|
|
9.3% |
|
|
8.0% |
|
|
7.5% |
Interest rate type, at
fair value (4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed rate amount |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
Floating rate amount |
|
$ |
2.1 billion |
|
$ |
2.1 billion |
|
$ |
2.0 billion |
|
$ |
2.0 billion |
|
$ |
2.1 billion |
Fixed rate, as percentage of
total |
|
|
0% |
|
|
0% |
|
|
0% |
|
|
1% |
|
|
1% |
Floating rate, as percentage
of total |
|
|
100% |
|
|
100% |
|
|
100% |
|
|
99% |
|
|
99% |
Interest rate type, at
amortized cost (4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed rate amount |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
|
$ |
0.0 billion |
Floating rate amount |
|
$ |
2.1 billion |
|
$ |
2.1 billion |
|
$ |
2.0 billion |
|
$ |
2.0 billion |
|
$ |
2.1 billion |
Fixed rate, as percentage of
total |
|
|
0% |
|
|
0% |
|
|
0% |
|
|
1% |
|
|
1% |
Floating rate, as percentage
of total |
|
|
100% |
|
|
100% |
|
|
100% |
|
|
99% |
|
|
99% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) An investor’s yield may be lower than the
portfolio yield due to sales loads and other expenses.(2) Exclusive
of investments on non-accrual status.(3) Inclusive of all income
generating investments, non-income generating investments and
investments on non-accrual status.(4) The interest rate type
information is calculated using the Company’s corporate debt
portfolio and excludes aviation, oil and gas, structured credit,
renewables, shipping, commodities and investments on non-accrual
status.
MIDCAP FINANCIAL INVESTMENT
CORPORATIONSTATEMENTS OF ASSETS AND
LIABILITIES(In thousands, except share and per
share data) |
|
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Investments at fair
value: |
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments (cost — $2,065,378 and
$2,019,573, respectively) |
|
$ |
2,007,346 |
|
|
$ |
1,960,199 |
|
Non-controlled/affiliated investments (cost — $151,187 and
$121,307, respectively) |
|
|
79,338 |
|
|
|
49,141 |
|
Controlled investments (cost — $400,911 and $466,294,
respectively) |
|
|
322,603 |
|
|
|
388,780 |
|
Cash and cash equivalents |
|
|
49,369 |
|
|
|
84,713 |
|
Foreign currencies (cost —
$842 and $2,404, respectively) |
|
|
828 |
|
|
|
2,378 |
|
Receivable for investments
sold |
|
|
2,857 |
|
|
|
3,100 |
|
Interest receivable |
|
|
15,175 |
|
|
|
17,169 |
|
Dividends receivable |
|
|
3,138 |
|
|
|
4,836 |
|
Deferred financing costs |
|
|
21,856 |
|
|
|
13,403 |
|
Prepaid expenses and other
assets |
|
|
738 |
|
|
|
1,797 |
|
Total Assets |
|
$ |
2,503,248 |
|
|
$ |
2,525,516 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Debt |
|
$ |
1,482,515 |
|
|
$ |
1,483,394 |
|
Payable for investments
purchased |
|
|
333 |
|
|
|
— |
|
Distributions payable |
|
|
— |
|
|
|
24,217 |
|
Management and
performance-based incentive fees payable |
|
|
10,454 |
|
|
|
9,060 |
|
Interest payable |
|
|
10,497 |
|
|
|
13,546 |
|
Accrued administrative
services expense |
|
|
1,801 |
|
|
|
748 |
|
Other liabilities and accrued
expenses |
|
|
5,971 |
|
|
|
6,445 |
|
Total Liabilities |
|
$ |
1,511,571 |
|
|
$ |
1,537,410 |
|
Commitments and contingencies (Note 8) |
|
|
|
|
|
|
|
|
Net Assets |
|
$ |
991,677 |
|
|
$ |
988,106 |
|
|
|
|
|
|
|
|
|
|
Net
Assets |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value
(130,000,000 shares authorized; 65,253,275 and 65,451,359 shares
issued and outstanding, respectively) |
|
$ |
65 |
|
|
$ |
65 |
|
Capital in excess of par
value |
|
|
2,104,823 |
|
|
|
2,107,120 |
|
Accumulated under-distributed
(over-distributed) earnings |
|
|
(1,113,211 |
) |
|
|
(1,119,079 |
) |
Net Assets |
|
$ |
991,677 |
|
|
$ |
988,106 |
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per
Share |
|
$ |
15.20 |
|
|
$ |
15.10 |
|
|
|
|
|
|
|
|
|
|
MIDCAP FINANCIAL INVESTMENT CORPORATIONSTATEMENTS
OF OPERATIONS(In thousands, except per share
data) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (excluding Payment-in-kind (“PIK”) interest
income) |
|
$ |
61,826 |
|
|
$ |
42,448 |
|
|
$ |
121,846 |
|
|
$ |
85,766 |
|
Dividend income |
|
|
115 |
|
|
|
25 |
|
|
|
137 |
|
|
|
26 |
|
PIK interest income |
|
|
339 |
|
|
|
414 |
|
|
|
668 |
|
|
|
645 |
|
Other income |
|
|
1,034 |
|
|
|
276 |
|
|
|
2,969 |
|
|
|
1,579 |
|
Non-controlled/affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (excluding PIK interest income) |
|
|
282 |
|
|
|
48 |
|
|
|
560 |
|
|
|
96 |
|
Dividend income |
|
|
— |
|
|
|
311 |
|
|
|
— |
|
|
|
642 |
|
PIK interest income |
|
|
32 |
|
|
|
19 |
|
|
|
60 |
|
|
|
38 |
|
Other income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Controlled investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (excluding PIK interest income) |
|
|
4,547 |
|
|
|
9,101 |
|
|
|
9,036 |
|
|
|
18,215 |
|
Dividend income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
PIK interest income |
|
|
441 |
|
|
|
522 |
|
|
|
869 |
|
|
|
897 |
|
Other income |
|
|
— |
|
|
|
240 |
|
|
|
250 |
|
|
|
240 |
|
Total Investment Income |
|
$ |
68,616 |
|
|
$ |
53,404 |
|
|
$ |
136,395 |
|
|
$ |
108,144 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
$ |
4,334 |
|
|
$ |
8,949 |
|
|
$ |
8,598 |
|
|
$ |
17,887 |
|
Performance-based incentive
fees |
|
|
6,120 |
|
|
|
1,396 |
|
|
|
12,316 |
|
|
|
2,439 |
|
Interest and other debt
expenses |
|
|
26,002 |
|
|
|
16,377 |
|
|
|
50,768 |
|
|
|
30,657 |
|
Administrative services
expense |
|
|
1,425 |
|
|
|
1,286 |
|
|
|
2,848 |
|
|
|
2,695 |
|
Other general and
administrative expenses |
|
|
2,236 |
|
|
|
2,206 |
|
|
|
4,492 |
|
|
|
4,571 |
|
Total expenses |
|
|
40,117 |
|
|
|
30,214 |
|
|
|
79,022 |
|
|
|
58,249 |
|
Management and
performance-based incentive fees waived |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Performance-based incentive
fee offset |
|
|
— |
|
|
|
(75 |
) |
|
|
(274 |
) |
|
|
(143 |
) |
Expense reimbursements |
|
|
(351 |
) |
|
|
(228 |
) |
|
|
(686 |
) |
|
|
(342 |
) |
Net Expenses |
|
$ |
39,766 |
|
|
$ |
29,911 |
|
|
$ |
78,062 |
|
|
$ |
57,764 |
|
Net Investment Income |
|
$ |
28,850 |
|
|
$ |
23,493 |
|
|
$ |
58,333 |
|
|
$ |
50,380 |
|
Net Realized and
Change in Unrealized Gains (Losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains
(losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
$ |
(161 |
) |
|
$ |
314 |
|
|
$ |
(1,038 |
) |
|
$ |
1,071 |
|
Non-controlled/affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Controlled investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency transactions |
|
|
(4 |
) |
|
|
(22 |
) |
|
|
38 |
|
|
|
(2,800 |
) |
Net realized gains (losses) |
|
|
(165 |
) |
|
|
292 |
|
|
|
(1,000 |
) |
|
|
(1,729 |
) |
Net change in unrealized gains
(losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
|
1,386 |
|
|
|
(11,315 |
) |
|
|
1,342 |
|
|
|
(12,970 |
) |
Non-controlled/affiliated investments |
|
|
(916 |
) |
|
|
(3,490 |
) |
|
|
316 |
|
|
|
(7,100 |
) |
Controlled investments |
|
|
(2,109 |
) |
|
|
(7,575 |
) |
|
|
(794 |
) |
|
|
(27,458 |
) |
Foreign currency translations |
|
|
(1,641 |
) |
|
|
4,254 |
|
|
|
(2,661 |
) |
|
|
8,774 |
|
Net change in unrealized gains (losses) |
|
|
(3,280 |
) |
|
|
(18,126 |
) |
|
|
(1,797 |
) |
|
|
(38,754 |
) |
Net Realized and Change in Unrealized Gains
(Losses) |
|
$ |
(3,445 |
) |
|
$ |
(17,834 |
) |
|
$ |
(2,797 |
) |
|
$ |
(40,483 |
) |
Net Increase (Decrease) in Net Assets Resulting from
Operations |
|
$ |
25,405 |
|
|
$ |
5,659 |
|
|
$ |
55,536 |
|
|
$ |
9,897 |
|
Earnings (Loss) Per Share —
Basic |
|
$ |
0.39 |
|
|
$ |
0.09 |
|
|
|
0.85 |
|
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Important Information
Investors are advised to carefully
consider the investment objective, risks, charges and expenses of
the Company before investing. The prospectus dated April 12, 2023,
which has been filed with the Securities and Exchange Commission
(“SEC”), contains this and other information about the Company and
should be read carefully before investing. An effective
shelf registration statement relating to certain securities of the
Company is on file with the SEC. Any offering may be made only by
means of a prospectus and any accompanying prospectus supplement.
Before you invest, you should read the base prospectus in that
registration statement, the prospectus and any documents
incorporated by reference therein, which the issuer has filed with
the SEC, for more complete information about the Company and an
offering. You may obtain these documents for free by visiting EDGAR
on the SEC website at www.sec.gov.
The information in the prospectus and in this
announcement is not complete and may be changed. This communication
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or other jurisdiction.
Past performance is not indicative of,
or a guarantee of, future performance. The performance and
certain other portfolio information quoted herein represents
information as of dates noted herein. Nothing herein shall be
relied upon as a representation as to the future performance or
portfolio holdings of the Company. Investment return and principal
value of an investment will fluctuate, and shares, when sold, may
be worth more or less than their original cost. The Company’s
performance is subject to change since the end of the period noted
in this report and may be lower or higher than the performance data
shown herein.
About MidCap Financial Investment
Corporation
MidCap Financial Investment Corporation (NASDAQ:
MFIC) is a closed-end, externally managed, diversified management
investment company that has elected to be treated as a business
development company (“BDC”) under the Investment Company Act of
1940 (the “1940 Act”). For tax purposes, the Company has elected to
be treated as a regulated investment company (“RIC”) under
Subchapter M of the Internal Revenue Code of 1986, as amended (the
“Code”). The Company is externally managed by Apollo Investment
Management, L.P., an affiliate of Apollo Global Management, Inc.
and its consolidated subsidiaries, a high-growth global alternative
asset manager. The Company’s investment objective is to generate
current income and, to a lesser extent, long-term capital
appreciation. The Company primarily invests in directly originated
and privately negotiated first lien senior secured loans to
privately held U.S. middle-market companies, which the Company
generally defines as companies with less than $75 million in
EBITDA, as may be adjusted for market disruptions, mergers and
acquisitions-related charges and synergies, and other items. To a
lesser extent, the Company may invest in other types of securities
including, first lien unitranche, second lien senior secured,
unsecured, subordinated, and mezzanine loans, and equities in both
private and public middle market companies. For more information,
please visit www.midcapfinancialic.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve risks and
uncertainties, including, but not limited to, statements as to our
future operating results; our business prospects and the prospects
of our portfolio companies; the impact of investments that we
expect to make; our contractual arrangements and relationships with
third parties; the dependence of our future success on the general
economy and its impact on the industries in which we invest; the
ability of our portfolio companies to achieve their objectives; our
expected financings and investments; the adequacy of our cash
resources and working capital; and the timing of cash flows, if
any, from the operations of our portfolio companies.
We may use words such as “anticipates,”
“believes,” “expects,” “intends,” “will,” “should,” “may” and
similar expressions to identify forward-looking statements. Such
statements are based on currently available operating, financial
and competitive information and are subject to various risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations.
Statements regarding the following subjects, among others, may be
forward-looking: the effects of the COVID-19 pandemic; changes in
general economic conditions, including the impact of supply chain
disruptions, or changes in financial markets, and the risk of
recession; changes in the interest rate environment and levels of
general interest rates and the impact of inflation; the return on
equity; the yield on investments; the ability to borrow to finance
assets; new strategic initiatives; the ability to reposition the
investment portfolio; the market outlook; future investment
activity; and risks associated with changes in business conditions
and the general economy.
The forward-looking statements are based on our
beliefs, assumptions and expectations of our future performance,
taking into account all information currently available to us.
Forward-looking statements are not predictions of future events.
These beliefs, assumptions and expectations can change as a result
of many possible events or factors, not all of which are known to
us. Some of these factors are described in the Company’s filings
with the SEC. If a change occurs, our business, financial
condition, liquidity and results of operations may vary materially
from those expressed in our forward-looking statements. Undue
reliance should not be placed on such forward-looking statements as
such statements speak only as of the date on which they are made.
New risks and uncertainties arise over time, and it is not possible
for us to predict those events or how they may affect us. Except as
required by law, we are not obligated to, and do not intend to,
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact
Elizabeth BesenInvestor Relations ManagerMidCap
Financial Investment Corporation212.822.0625ebesen@apollo.com
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