MidCap Financial Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended December 31, 2024
MidCap Financial Investment (MFIC) has reported its financial results for Q4 and fiscal year 2024. The company recorded net investment income of $0.40 per share for Q4, down from $0.44 in Q3 2024. Net asset value (NAV) decreased by 0.8% to $14.98 per share from $15.10 in the previous quarter.
Key highlights include $255 million in new investment commitments and $248 million in gross fundings during Q4. The Board declared a dividend of $0.38 per share payable on March 27, 2025. The company completed its second CLO transaction (MFIC Bethesda CLO 2) worth $529.6 million, securing debt capital of $399.0 million at SOFR + 161 basis points.
The company maintains a net leverage ratio of 1.16x and plans to gradually increase leverage to target levels. MFIC's liquidity position includes outstanding debt obligations of $1.757 billion and an available remaining commitment of $682.0 million under its facility.
MidCap Financial Investment (MFIC) ha riportato i risultati finanziari per il Q4 e l'anno fiscale 2024. L'azienda ha registrato un reddito da investimenti netti di 0,40 $ per azione per il Q4, in calo rispetto a 0,44 $ nel Q3 2024. Il valore netto degli attivi (NAV) è diminuito dell'0,8% a 14,98 $ per azione rispetto a 15,10 $ nel trimestre precedente.
Tra i punti salienti ci sono 255 milioni di dollari in nuovi impegni di investimento e 248 milioni di dollari in finanziamenti lordi durante il Q4. Il Consiglio ha dichiarato un dividendo di 0,38 $ per azione pagabile il 27 marzo 2025. L'azienda ha completato la sua seconda transazione CLO (MFIC Bethesda CLO 2) del valore di 529,6 milioni di dollari, assicurando capitale di debito di 399,0 milioni di dollari a SOFR + 161 punti base.
L'azienda mantiene un rapporto di leva netta di 1,16x e prevede di aumentare gradualmente la leva ai livelli target. La posizione di liquidità di MFIC include obbligazioni di debito in sospeso di 1,757 miliardi di dollari e un impegno residuo disponibile di 682,0 milioni di dollari sotto la sua struttura.
MidCap Financial Investment (MFIC) ha reportado sus resultados financieros para el Q4 y el año fiscal 2024. La compañía registró un ingreso neto por inversiones de 0,40 $ por acción para el Q4, disminuyendo de 0,44 $ en el Q3 2024. El valor neto de los activos (NAV) disminuyó un 0,8% a 14,98 $ por acción desde 15,10 $ en el trimestre anterior.
Los aspectos destacados incluyen 255 millones de dólares en nuevos compromisos de inversión y 248 millones de dólares en financiamientos brutos durante el Q4. La Junta declaró un dividendo de 0,38 $ por acción pagadero el 27 de marzo de 2025. La compañía completó su segunda transacción CLO (MFIC Bethesda CLO 2) por un valor de 529,6 millones de dólares, asegurando capital de deuda de 399,0 millones de dólares a SOFR + 161 puntos básicos.
La compañía mantiene una relación de apalancamiento neto de 1,16x y planea aumentar gradualmente el apalancamiento a niveles objetivo. La posición de liquidez de MFIC incluye obligaciones de deuda pendientes de 1,757 mil millones de dólares y un compromiso restante disponible de 682,0 millones de dólares bajo su línea de crédito.
MidCap Financial Investment (MFIC)는 2024년 4분기 및 회계연도 재무 결과를 발표했습니다. 회사는 4분기 주당 0.40달러의 순투자 수익을 기록했으며, 이는 2024년 3분기 0.44달러에서 감소한 수치입니다. 순자산가치(NAV)는 이전 분기 15.10달러에서 14.98달러로 0.8% 감소했습니다.
주요 하이라이트로는 4분기 동안 2억 5천 5백만 달러의 신규 투자 약정과 2억 4천 8백만 달러의 총 자금 조달이 포함됩니다. 이사회는 2025년 3월 27일 지급 예정인 주당 0.38달러의 배당금을 선언했습니다. 회사는 5억 2천 9백 6십만 달러 규모의 두 번째 CLO 거래(MFIC Bethesda CLO 2)를 완료했으며, SOFR + 161 베이시스 포인트에서 3억 9천 9백만 달러의 부채 자본을 확보했습니다.
회사는 1.16배의 순 레버리지 비율을 유지하고 있으며 목표 수준으로 점진적으로 레버리지를 증가시킬 계획입니다. MFIC의 유동성 위치는 17억 5천 7백만 달러의 미지급 부채 의무와 6억 8천 2백만 달러의 사용 가능한 잔여 약정을 포함하고 있습니다.
MidCap Financial Investment (MFIC) a publié ses résultats financiers pour le 4ème trimestre et l'exercice 2024. L'entreprise a enregistré un revenu net d'investissement de 0,40 $ par action pour le 4ème trimestre, en baisse par rapport à 0,44 $ au 3ème trimestre 2024. La valeur nette des actifs (NAV) a diminué de 0,8 % à 14,98 $ par action contre 15,10 $ au trimestre précédent.
Les points forts incluent 255 millions de dollars en nouveaux engagements d'investissement et 248 millions de dollars en financements bruts durant le 4ème trimestre. Le Conseil a déclaré un dividende de 0,38 $ par action payable le 27 mars 2025. L'entreprise a complété sa deuxième transaction CLO (MFIC Bethesda CLO 2) d'une valeur de 529,6 millions de dollars, sécurisant un capital d'endettement de 399,0 millions de dollars à SOFR + 161 points de base.
L'entreprise maintient un ratio d'endettement net de 1,16x et prévoit d'augmenter progressivement l'endettement vers des niveaux cibles. La position de liquidité de MFIC comprend des obligations de dette en cours de 1,757 milliard de dollars et un engagement restant disponible de 682,0 millions de dollars dans le cadre de son installation.
MidCap Financial Investment (MFIC) hat seine finanziellen Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht. Das Unternehmen erzielte im 4. Quartal ein Nettoinvestitionseinkommen von 0,40 $ pro Aktie, was einem Rückgang von 0,44 $ im 3. Quartal 2024 entspricht. Der Nettoinventarwert (NAV) sank um 0,8 % auf 14,98 $ pro Aktie von 15,10 $ im vorherigen Quartal.
Zu den wichtigsten Highlights gehören 255 Millionen Dollar an neuen Investitionsverpflichtungen und 248 Millionen Dollar an Bruttofinanzierungen im 4. Quartal. Der Vorstand erklärte eine Dividende von 0,38 $ pro Aktie, die am 27. März 2025 zahlbar ist. Das Unternehmen hat seine zweite CLO-Transaktion (MFIC Bethesda CLO 2) im Wert von 529,6 Millionen Dollar abgeschlossen und Kapital in Höhe von 399,0 Millionen Dollar zu SOFR + 161 Basispunkten gesichert.
Das Unternehmen hält ein Netto-Leverage-Verhältnis von 1,16x und plant, die Leverage schrittweise auf Zielniveaus zu erhöhen. Die Liquiditätsposition von MFIC umfasst ausstehende Schulden in Höhe von 1,757 Milliarden Dollar und ein verfügbares Restengagement von 682,0 Millionen Dollar im Rahmen seiner Einrichtung.
- New investment commitments of $255M in Q4
- Completed $529.6M CLO transaction with favorable terms
- Strong liquidity with $682M available credit facility
- Stable dividend maintained at $0.38 per share
- Net investment income declined from $0.44 to $0.40 per share QoQ
- NAV per share decreased 0.8% to $14.98
- High debt obligations of $1.757B
- No share repurchases conducted in Q4 2024
Insights
MidCap Financial Investment 's Q4 2024 results reveal important dynamics for BDC investors to consider. The company reported quarterly net investment income of $0.40 per share, down from $0.44 in Q3, while NAV declined slightly to $14.98 from $15.10 (0.8% decrease). Despite these modest declines, the company maintained its strong dividend at $0.38 per share, representing a dividend coverage ratio of 105% - a positive sign for dividend sustainability.
The modest NAV erosion warrants attention but doesn't signal significant portfolio deterioration. Management's comments about "stability in certain credit metrics" suggests the portfolio is weathering the current economic environment reasonably well. MFIC's current trading price of $14.51 represents a 3.1% discount to NAV, which is narrower than many BDC peers and indicates relatively strong investor confidence.
The most significant development is MFIC's second CLO transaction, which adds $399 million of secured debt capital at attractive pricing (SOFR + 161 basis points). This transaction accomplishes several strategic objectives:
- Provides term financing with reduced refinancing risk compared to revolving facilities
- Demonstrates institutional market access at favorable terms
- Creates additional investment capacity as MFIC works toward target leverage
- Potentially helps address the upcoming $350 million Senior Notes maturity on March 3, 2025
Management's strategy of selling liquid assets from recently acquired Apollo funds and redeploying capital into first-lien middle market loans originated by MidCap Financial represents a deliberate quality shift. This relationship with MidCap Financial (managed by an Apollo affiliate) provides MFIC with proprietary deal flow - a meaningful competitive advantage in the crowded middle market lending space.
The company's 1.16x net leverage ratio remains below their target, suggesting capacity for additional earnings growth as they deploy capital. Management's comments about "gradually increasing leverage over the coming quarters" indicates a measured approach to growth that balances yield enhancement with risk management.
In the declining interest rate environment, MFIC's predominantly floating-rate portfolio will face some earnings pressure. However, management noted "a modest increase in spreads on new commitments," which could partially offset the impact of lower base rates. Additionally, the company's liability structure will benefit from lower rates, particularly on its revolving facility and new CLO financing.
For investors, MFIC represents a middle-of-the-road BDC option with a 10.5% dividend yield, modest discount to NAV, and strategic advantages through its Apollo/MidCap relationship. The portfolio's first-lien orientation (likely over 70% based on previous disclosures) provides some downside protection, though investors should monitor credit quality trends carefully in upcoming quarters.
MidCap Financial Investment 's Q4 results reveal nuanced credit dynamics that merit careful investor consideration. The company's NII declined to $0.40 per share from $0.44 quarter-over-quarter, while maintaining a dividend of $0.38, resulting in a 105% dividend coverage ratio. This modest coverage buffer provides flexibility should credit performance deteriorate but remains sufficient under current conditions.
The 0.8% NAV erosion (to $14.98 from $15.10) signals some mild portfolio stress, though significantly less severe than during typical credit cycle downturns. Management's carefully worded statement that "the vast majority of our portfolio is performing well" suggests some assets are likely experiencing challenges, though the company did not disclose specific non-accrual rates in their announcement.
MFIC's strategic portfolio rotation deserves particular attention. The company is actively selling liquid assets acquired from the Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund mergers while redeploying capital into first-lien middle market loans originated by MidCap Financial. This shift likely improves portfolio credit quality as broadly syndicated loans are replaced with directly originated middle market loans featuring stronger covenants and structural protections.
The company's leverage profile remains conservative at 1.16x net leverage, providing a cushion against potential credit deterioration. Management's stated intention to "gradually increase leverage" suggests disciplined growth rather than aggressive expansion, a credit positive in the current uncertain economic environment.
The newly closed $529.6 million CLO transaction significantly enhances MFIC's liquidity profile while demonstrating the quality of their underlying loan portfolio. The transaction's weighted average pricing of SOFR + 161 basis points represents extremely competitive execution for a middle market CLO, reflecting strong institutional investor confidence in the collateral quality. MFIC retained the $31.5 million Class D Notes (BBB- rated) and $99.1 million of Subordinated Notes, maintaining appropriate skin in the game while transferring senior risk.
This CLO transaction, combined with $682 million available under the revolving facility, positions MFIC well to address the $350 million Senior Notes maturing on March 3, 2025. The company appears to have multiple refinancing options without needing to liquidate portfolio investments at potentially disadvantageous prices.
Management's observation of "a modest increase in spreads on new commitments" suggests they're maintaining underwriting discipline rather than chasing volume. This approach, combined with their comment about "attractive leverage entry points," indicates a focus on downside protection in new investments.
The strategic relationship with MidCap Financial provides MFIC with proprietary deal flow and enhanced credit selection capabilities - a significant competitive advantage for managing credit risk. MidCap Financial's specialized lending expertise in healthcare, technology, and specialty finance likely contributes to more sophisticated underwriting than many BDC peers can achieve independently.
For credit-focused investors, MFIC's current 3.1% discount to NAV appears reasonable given the modest earnings pressure and slight NAV erosion, though not compelling enough to suggest the market is significantly mispricing credit risk in either direction.
Results for the Quarter and Fiscal Year Ended December 31, 2024 and Other Recent Highlights:
- Net investment income per share for the quarter was
$0.40 - Net asset value per share as of the end of the quarter was
$14.98 , compared to$15.10 as of September 30, 2024, a decrease of0.8% - New investment commitments made during the quarter totaled
$255 million (1) - Gross fundings, excluding revolver fundings(2), totaled
$248 million for the quarter - Net repayments, including revolvers(2), totaled
$6 million for the quarter - Net leverage(3) was 1.16x as of December 31, 2024
- On February 21, 2025, the Board of Directors (the “Board”) declared a dividend of
$0.38 per share payable on March 27, 2025 to stockholders of record as of March 11, 2025(4) - On February 24, 2025, the Company closed its second Collateralized Loan Obligation (“CLO”) transaction, MFIC Bethesda CLO 2 LLC (the “Bethesda CLO 2 Issuer”), a
$529.6 million CLO secured by middle market loans, adding$399.0 million of secured debt capital with a weighted average price of SOFR + 161 basis points(5)
NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ: MFIC) or the “Company,” today announced financial results for its quarter and fiscal year ended December 31, 2024. The Company’s net investment income was
On February 21, 2025, the Board declared a dividend of
Mr. Tanner Powell, the Company’s Chief Executive Officer, stated, “In the December quarter, we generated solid net investment income despite a modest amount of fee income and the impact of lower base rates. The vast majority of our portfolio is performing well and we are observing stability in certain credit metrics.” Mr. Powell continued, “MFIC is fortunate to have access to the significant volume of loans originated by MidCap Financial, a leading middle market lender managed by an affiliate of Apollo, which we believe provides MFIC with a significant deal sourcing advantage. While our market remains competitive, we observed a modest increase in spreads on new commitments compared to the previous quarter, at what we believe to be attractive leverage entry points. We took advantage of strength in the liquid credit markets to continue selling certain assets acquired from our recently completed mergers with Apollo Senior Floating Rate Fund, Inc. and Apollo Tactical Income Fund, Inc. and prudently deployed proceeds from these sales, along with the investment capacity generated from the mergers, into first lien floating rate middle market loans originated by MidCap Financial. We have a clear and straightforward plan to gradually increase leverage over the coming quarters and we believe MFIC’s future results are well-positioned to benefit as we re-lever back to our target level.”
Mr. Gregory W. Hunt, the Company’s Chief Financial Officer, said, “We are pleased to announce MFIC closed its second on balance sheet CLO transaction earlier this week. This CLO transaction adds attractive term-based financing at what we believe to be among the tightest levels achieved for a middle market CLO, reflecting the high quality of the underlying loans. MFIC significantly benefited from MidCap Financial and Apollo Global’s expertise in CLO management and structuring.”
___________________
| (1) | Commitments made for the direct origination portfolio. |
| (2) | During the quarter ended December 31, 2024, direct origination revolver fundings totaled |
| (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) | There can be no assurances that the Board will continue to declare a base dividend of |
| (5) | The Company retained all Class D Notes and all Subordinated Notes in the CLO transaction. |
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| ($ in billions, except per share data) | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||
| Total assets | $ | 3.19 | $ | 3.22 | $ | 2.55 | $ | 2.45 | $ | 2.50 | ||||||||
| Investment portfolio (fair value) | $ | 3.01 | $ | 3.03 | $ | 2.44 | $ | 2.35 | $ | 2.33 | ||||||||
| Debt outstanding | $ | 1.75 | $ | 1.77 | $ | 1.51 | $ | 1.41 | $ | 1.46 | ||||||||
| Net assets | $ | 1.40 | $ | 1.42 | $ | 1.00 | $ | 1.01 | $ | 1.01 | ||||||||
| Net asset value per share | $ | 14.98 | $ | 15.10 | $ | 15.38 | $ | 15.42 | $ | 15.41 | ||||||||
| Debt-to-equity ratio | 1.25 x | 1.25 x | 1.51 x | 1.40 x | 1.45 x | |||||||||||||
| Net leverage ratio (1) | 1.16 x | 1.16 x | 1.45 x | 1.35 x | 1.34 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 December 31, | Year Ended December 31, | |||||||||||||||
| (in millions)* | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Investments made in portfolio companies | $ | 303.5 | $ | 134.1 | $ | 1,613.6 | $ | 417.1 | ||||||||
| Investments sold | (82.9 | ) | — | (271.5 | ) | — | ||||||||||
| Net activity before repaid investments | 220.6 | 134.1 | 1,342.1 | 417.1 | ||||||||||||
| Investments repaid | (226.9 | ) | (180.7 | ) | (657.5 | ) | (504.3 | ) | ||||||||
| Net investment activity | $ | (6.4 | ) | $ | (46.5 | ) | $ | 684.6 | $ | (87.2 | ) | |||||
| Portfolio companies, at beginning of period | 250 | 149 | 152 | 135 | ||||||||||||
| Number of investments in new portfolio companies | 11 | 10 | 167 | 32 | ||||||||||||
| Number of exited companies | (28 | ) | (7 | ) | (86 | ) | (15 | ) | ||||||||
| Portfolio companies at end of period | 233 | 152 | 233 | 152 | ||||||||||||
| Number of investments in existing portfolio companies | 83 | 48 | 130 | 84 | ||||||||||||
____________________
* Totals may not foot due to rounding.
| OPERATING RESULTS | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (in millions)* | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net investment income | $ | 37.1 | $ | 29.8 | $ | 133.3 | $ | 116.0 | ||||||||
| Net realized and change in unrealized gains (losses) | (13.0 | ) | 3.5 | (34.5 | ) | 2.8 | ||||||||||
| Net increase in net assets resulting from operations | $ | 24.1 | $ | 33.3 | $ | 98.8 | $ | 118.8 | ||||||||
| (per share)* (1) | ||||||||||||||||
| Net investment income on per average share basis | $ | 0.40 | $ | 0.46 | $ | 1.71 | $ | 1.78 | ||||||||
| Net realized and change in unrealized gain (loss) per share | (0.14 | ) | 0.05 | (0.44 | ) | 0.04 | ||||||||||
| Earnings per share — basic | $ | 0.26 | $ | 0.51 | $ | 1.27 | $ | 1.82 | ||||||||
____________________
* 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 December 31, 2024, the Company did not repurchase any shares.
Since the inception of the share repurchase program and through February 24, 2025, the Company repurchased 15,593,120 shares at a weighted average price per share of
* 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 December 31, 2024, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of
On February 24, 2025, the Company completed a
| Class | Par Amount ($ in millions) | % of Capital Structure | Coupon | Expected Rating (S&P/Fitch) | Price | |||||||||
| Class A-1 Notes | $ | 304.50 | 57.5 | % | 3M SOFR + | AAA/AAA | 100.00 | % | ||||||
| Class A-2 Notes | 21.00 | 4.0 | % | 3M SOFR + | AAA/NR | 100.00 | % | |||||||
| Class B Notes | 31.50 | 5.9 | % | 3M SOFR + | AA/NR | 100.00 | % | |||||||
| Class C Notes | 42.00 | 7.9 | % | 3M SOFR + | A/NR | 100.00 | % | |||||||
| Class D Notes | 31.50 | 5.9 | % | 3M SOFR + | BBB-/NR | 100.00 | % | |||||||
| Subordinated Notes | 99.10 | 18.7 | % | N/A | NR | 100.00 | % | |||||||
| Total | $ | 529.60 | ||||||||||||
The CLO transaction is backed by a diversified portfolio of middle-market commercial loans, which Bethesda CLO 2 Issuer purchased from the Company pursuant to a loan sale agreement entered into on February 24, 2025, using the proceeds of the CLO transaction. The Company retained all Class D Notes and all Subordinated Notes and the proceeds from the CLO transaction were used to repay borrowings under the Company’s Facility. The Company serves as collateral manager to Bethesda CLO 2 Issuer, Citigroup Global Markets Inc. acted as initial purchaser and Apollo Global Securities, LLC acted as placement agent.2C
CONFERENCE CALL / WEBCAST AT 8:30 AM EST ON FEBRUARY 26, 2025
The Company will also host a conference call on Wednesday, February 26, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0226 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 tab 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 March 19, 2025, by dialing (800) 839-5123; international callers should dial (402) 220-2689. 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 December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023 were as follows:
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||
| Portfolio composition, at fair value: | ||||||||||||||
| First lien secured debt | ||||||||||||||
| Second lien secured debt | ||||||||||||||
| Total secured debt | ||||||||||||||
| Unsecured debt | —% | —% | —% | |||||||||||
| Structured products and other | ||||||||||||||
| Preferred equity | ||||||||||||||
| Common equity/interests and warrants | ||||||||||||||
| Weighted average yields, at amortized cost (1): | ||||||||||||||
| First lien secured debt (2) | ||||||||||||||
| Second lien secured debt (2) | ||||||||||||||
| Total secured debt (2) | ||||||||||||||
| Unsecured debt portfolio (2) | —% | —% | —% | |||||||||||
| Total debt portfolio (2) | ||||||||||||||
| Total portfolio (3) | ||||||||||||||
| 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 | $ | 2.7 billion | $ | 2.7 billion | $ | 2.1 billion | $ | 2.0 billion | $ | 2.0 billion | ||||
| Fixed rate, as percentage of total | ||||||||||||||
| Floating rate, as percentage of total | ||||||||||||||
| 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 | $ | 2.7 billion | $ | 2.7 billion | $ | 2.1 billion | $ | 2.0 billion | $ | 2.0 billion | ||||
| Fixed rate, as percentage of total | ||||||||||||||
| Floating rate, as percentage of total | ||||||||||||||
| (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 and investments on non-accrual status. |
| MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Non-controlled/non-affiliated investments (cost — | $ | 2,605,329 | $ | 1,936,327 | ||||
| Non-controlled/affiliated investments (cost — | 84,334 | 77,528 | ||||||
| Controlled investments (cost — | 324,753 | 320,344 | ||||||
| Cash and cash equivalents | 74,357 | 93,575 | ||||||
| Foreign currencies (cost — | 1,429 | 28,553 | ||||||
| Receivable for investments sold | 57,195 | 2,796 | ||||||
| Interest receivable | 19,289 | 21,441 | ||||||
| Dividends receivable | 709 | 1,327 | ||||||
| Deferred financing costs | 23,555 | 19,435 | ||||||
| Prepaid expenses and other assets | — | 5 | ||||||
| Total Assets | $ | 3,190,950 | $ | 2,501,331 | ||||
| Liabilities | ||||||||
| Debt | $ | 1,751,621 | $ | 1,462,267 | ||||
| Payable for investments purchased | 4,190 | — | ||||||
| Management fees payable | 6,247 | 4,397 | ||||||
| Performance-based incentive fees payable | 5,336 | 6,332 | ||||||
| Interest payable | 12,813 | 14,494 | ||||||
| Accrued administrative services expense | 60 | 1,657 | ||||||
| Other liabilities and accrued expenses | 6,037 | 6,874 | ||||||
| Total Liabilities | $ | 1,786,304 | $ | 1,496,021 | ||||
| Commitments and contingencies (Note 9) | ||||||||
| Net Assets | $ | 1,404,646 | $ | 1,005,310 | ||||
| Net Assets | ||||||||
| Common stock, | $ | 94 | $ | 65 | ||||
| Capital in excess of par value | 2,658,090 | 2,103,718 | ||||||
| Accumulated under-distributed (over-distributed) earnings | (1,253,538 | ) | (1,098,473 | ) | ||||
| Net Assets | $ | 1,404,646 | $ | 1,005,310 | ||||
| Net Asset Value Per Share | $ | 14.98 | $ | 15.41 | ||||
| MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | ||||||||||||
| Year Ended December 31, | Nine Months Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Investment Income | ||||||||||||
| Non-controlled/non-affiliated investments: | ||||||||||||
| Interest income (excluding Payment-in-kind (“PIK”) interest income) | $ | 265,157 | $ | 249,102 | $ | 143,564 | ||||||
| Dividend income | 40 | 409 | 61 | |||||||||
| PIK interest income | 12,011 | 2,012 | 1,156 | |||||||||
| Other income | 4,147 | 3,727 | 2,234 | |||||||||
| Non-controlled/affiliated investments: | ||||||||||||
| Interest income (excluding PIK interest income) | 2,685 | 1,126 | 363 | |||||||||
| Dividend income | 726 | 1,010 | 718 | |||||||||
| PIK interest income | 140 | 125 | 58 | |||||||||
| Controlled investments: | ||||||||||||
| Interest income (excluding PIK interest income) | 16,781 | 17,892 | 25,530 | |||||||||
| PIK interest income | — | 869 | 1,448 | |||||||||
| Other income | 95 | 250 | 477 | |||||||||
| Total Investment Income | $ | 301,782 | $ | 276,522 | $ | 175,609 | ||||||
| Expenses | ||||||||||||
| Management fees | $ | 19,450 | $ | 17,369 | $ | 26,621 | ||||||
| Performance-based incentive fees | 21,548 | 24,565 | 5,691 | |||||||||
| Interest and other debt expenses | 115,961 | 104,198 | 59,363 | |||||||||
| Administrative services expense | 4,120 | 5,840 | 4,188 | |||||||||
| Other general and administrative expenses | 8,176 | 10,131 | 6,551 | |||||||||
| Total expenses | 169,255 | 162,103 | 102,414 | |||||||||
| Performance-based incentive fee offset | — | (274 | ) | (178 | ) | |||||||
| Expense reimbursements | (769 | ) | (1,306 | ) | (770 | ) | ||||||
| Net Expenses | $ | 168,486 | $ | 160,523 | $ | 101,466 | ||||||
| Net Investment Income | $ | 133,296 | $ | 115,999 | $ | 74,143 | ||||||
| Net Realized and Change in Unrealized Gains (Losses) | ||||||||||||
| Net realized gains (losses): | ||||||||||||
| Non-controlled/non-affiliated investments | $ | (4,273 | ) | $ | 131 | $ | 1,977 | |||||
| Non-controlled/affiliated investments | (11,668 | ) | — | (2,224 | ) | |||||||
| Controlled investments | (60,487 | ) | — | (69,265 | ) | |||||||
| Foreign currency transactions | (592 | ) | 69 | 273 | ||||||||
| Net realized gains (losses) | (77,020 | ) | 200 | (69,239 | ) | |||||||
| Net change in unrealized gains (losses): | ||||||||||||
| Non-controlled/non-affiliated investments | (19,626 | ) | (1,326 | ) | (35,113 | ) | ||||||
| Non-controlled/affiliated investments | (5,232 | ) | 3,799 | (5,008 | ) | |||||||
| Controlled investments | 65,876 | 2,636 | 53,726 | |||||||||
| Foreign currency translations | 1,525 | (2,548 | ) | 4,431 | ||||||||
| Net change in unrealized gains (losses) | 42,543 | 2,561 | 18,036 | |||||||||
| Net Realized and Change in Unrealized Gains (Losses) | $ | (34,477 | ) | $ | 2,761 | $ | (51,203 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 98,819 | $ | 118,760 | $ | 22,940 | ||||||
| Earnings (Loss) Per Share — Basic | 1.27 | 1.82 | 0.36 | |||||||||
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 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
Forward-Looking Statements
Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of MFIC and distribution projections; business prospects of MFIC, and the prospects of its portfolio companies, if applicable; and the impact of the investments that MFIC expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); 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. MFIC has based the forward-looking statements included in this press release on information available to it on the date hereof, and assumes no obligation to update any such forward-looking statements. Although MFIC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contact
Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
212.822.0625
ebesen@apollo.com
FAQ
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