MidCap Financial Investment Corporation Amends and Extends Its Senior Secured Revolving Credit Facility

Rhea-AI Summary

MidCap Financial Investment (NASDAQ: MFIC) has announced the amendment and extension of its senior secured, multi-currency, revolving credit facility. Key points include:

- Total lender commitments increased by $110 million to $1.660 billion, excluding non-extending lender commitments
- Including non-extending lender commitments, total commitments are $1.815 billion
- Final maturity date extended from April 19, 2028, to October 17, 2029, for extending lenders
- $155 million in commitments from non-extending lenders set to terminate on December 22, 2024
- Material business terms remain substantially the same

JPMorgan Chase Bank, N.A., Truist Securities, Inc., BMO Capital Markets Corp., and MUFG Bank, are Joint Bookrunners and Joint Lead Arrangers. JPMorgan Chase Bank, N.A is the Administrative Agent.

Positive

• Increased lender commitments by $110 million to $1.660 billion
• Extended maturity date by 18 months to October 17, 2029
• Maintained substantially the same material business terms

Negative

• $155 million in commitments from non-extending lenders set to terminate on December 22, 2024

Insights

Financial Analyst

This amendment to MidCap Financial Investment 's credit facility is a significant positive development for the company. The $110 million increase in lender commitments to $1.660 billion enhances MFIC's liquidity position and financial flexibility. The extension of the maturity date by 18 months to October 2029 provides longer-term stability to the company's capital structure.

The expanded facility could potentially support:

• Increased investment capacity
• Improved ability to weather economic uncertainties
• Enhanced competitiveness in the BDC sector

However, investors should note the $155 million in non-extending commitments set to terminate in December 2024. This may require refinancing or replacement to maintain the full facility size. Overall, this amendment strengthens MFIC's financial position and ability to pursue growth opportunities in the middle-market lending space.

NEW YORK, Oct. 18, 2024 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ: MFIC) (the “Company”) announced today that it has amended and extended its senior secured, multi-currency, revolving credit facility (the “Facility”). Lender commitments under the Facility total $1.660 billion, excluding non-extending lender commitments, an increase of $110 million. Lender commitments under the Facility total $1.815 billion, including $155 million of commitments from non-extending lenders which are set to terminate on December 22, 2024. The final maturity date under the Facility for extending lenders was extended from April 19, 2028, to October 17, 2029. The remaining material business terms of the Facility will remain substantially the same.

JPMorgan Chase Bank, N.A., Truist Securities, Inc., BMO Capital Markets Corp., and MUFG Bank, LTD. are Joint Bookrunners and Joint Lead Arrangers on the Facility. JPMorgan Chase Bank, N.A is the Administrative Agent on the Facility.

The foregoing description is only a summary of the material provisions of the Facility and is qualified in its entirety by reference to a copy of the Facility, which is filed as Exhibit to the Company’s current report on Form 8-K filed with the Securities and Exchange Commission on October 18, 2024.

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 the Investment Adviser, an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”), 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 http://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 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 investing in real estate assets, including changes in business conditions and the general economy. 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. We do not undertake to update our forward-looking statements unless required by law.

Contact

Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
(212) 822-0625
ebesen@apollo.com

FAQ

What is the new total lender commitment for MFIC's revolving credit facility?

The total lender commitment for MFIC's revolving credit facility is $1.815 billion, including $155 million from non-extending lenders. Excluding non-extending lender commitments, the total is $1.660 billion.

When is the new maturity date for MFIC's extended revolving credit facility?

The new maturity date for MFIC's extended revolving credit facility is October 17, 2029, for extending lenders. This is an extension from the previous date of April 19, 2028.

How much did MFIC increase its revolving credit facility commitments by?

MFIC increased its revolving credit facility commitments by $110 million, excluding non-extending lender commitments.

Who are the Joint Bookrunners and Joint Lead Arrangers for MFIC's revolving credit facility?

The Joint Bookrunners and Joint Lead Arrangers for MFIC's revolving credit facility are JPMorgan Chase Bank, N.A., Truist Securities, Inc., BMO Capital Markets Corp., and MUFG Bank,