Monroe Capital Corporation Announces Second Quarter Distribution of $0.25 Per Share

Rhea-AI Summary

Monroe Capital (NASDAQ: MRCC) has declared a quarterly distribution of $0.25 per share for Q2 2024. The dividend is payable on June 28, 2024, to shareholders on record by June 17, 2024. The company's dividend reinvestment plan, adopted in October 2012, allows distributions to be reinvested in additional shares unless shareholders opt for cash. The tax characteristics of the distribution will be detailed in Form 1099 and included in the company's periodic SEC filing.

Positive

• Quarterly distribution of $0.25 per share declared for Q2 2024.
• Distribution is payable on June 28, 2024, offering timely returns to shareholders.
• Adoption of dividend reinvestment plan promotes reinvestment into the company.
• Tax characteristics to be reported clearly on Form 1099.

Negative

• No information on growth or profitability provided in the announcement.
• Potential dilution of shares due to dividend reinvestment plan.
• Uncertain macroeconomic impacts on future distributions not discussed.

Insights

Financial Analyst

The announcement of a $0.25 per share distribution for Monroe Capital Corporation (MRCC) is a significant indicator of the company's financial health and profitability. For investors, this is a tangible return on investment, paid quarterly, which should be reassuring. The company's ability to sustain such distributions implies solid revenue streams and cash flow management. However, it's important to analyze the consistency of these payouts over time. If Monroe Capital has been able to maintain or increase this distribution regularly, it further solidifies the company's stability and attractiveness to income-focused investors.

One potential concern is the impact of this payout on the company's retained earnings and future growth. While distributions are favorable, they should not excessively deplete funds that could be directed towards growth opportunities. Investors should monitor the balance between dividends and retained earnings to ensure that the company can sustain its growth while continuing to pay dividends.

The dividend reinvestment plan (DRIP) is another key point. It enables shareholders to reinvest their dividends into additional shares, which can be advantageous for long-term growth of their equity stake. This plan also indicates the company's confidence in its own future performance, encouraging shareholders to grow their investment in Monroe Capital.

From a tax perspective, shareholders should be mindful of the tax characteristics of these distributions, reported via Form 1099. Depending on individual tax situations, this could affect net returns.

CHICAGO, June 03, 2024 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (the “Company”) (NASDAQ: MRCC) announced today that its Board of Directors has declared a distribution of $0.25 per share for the second quarter of 2024, payable on June 28, 2024 to stockholders of record as of June 17, 2024. In October 2012, the Company adopted a dividend reinvestment plan that provides for reinvestment of distributions on behalf of its stockholders, unless a stockholder elects to receive cash prior to the record date. When the Company declares a cash distribution, stockholders who have not opted out of the dividend reinvestment plan prior to the record date will have their distribution automatically reinvested in additional shares of the Company’s capital stock. The specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company’s periodic report filed with the Securities and Exchange Commission.

About Monroe Capital Corporation

Monroe Capital Corporation is a publicly-traded specialty finance company that principally invests in senior, unitranche and junior secured debt and, to a lesser extent, unsecured debt and equity investments in middle-market companies. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The Company’s investment activities are managed by its investment adviser, Monroe Capital BDC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an affiliate of Monroe Capital LLC. To learn more about Monroe Capital Corporation, visit www.monroebdc.com.

About Monroe Capital

Monroe Capital LLC (including its subsidiaries and affiliates, together “Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains 10 offices throughout the United States and Asia.

Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2023 Lower Mid-Market Lender of the Decade, 2023 Lower Mid-Market Lender of the Year, 2023 CLO Manager of the Year, Americas; Inc.’s 2023 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.

Forward-Looking Statements

This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future.

SOURCE:          Monroe Capital Corporation

Investor Contact:	Mick Solimene
	Chief Financial Officer and Chief Investment Officer
	Monroe Capital Corporation
	(312) 598-8401
	msolimene@monroecap.com
Media Contact:	Daniel Abramson
	BackBay Communications
	(857) 305-8441
	daniel.abramson@backbaycommunications.com

FAQ

What is the quarterly distribution declared by Monroe Capital for Q2 2024?

Monroe Capital announced a quarterly distribution of $0.25 per share for Q2 2024.

When will Monroe Capital 's Q2 2024 distribution be paid?

The Q2 2024 distribution will be paid on June 28, 2024.

What is the record date for Monroe Capital 's Q2 2024 distribution?

The record date for the distribution is June 17, 2024.

What does Monroe Capital 's dividend reinvestment plan entail?

The plan allows distributions to be automatically reinvested in additional shares unless shareholders opt for cash.

How will Monroe Capital report the tax characteristics of the Q2 2024 distribution?

The tax characteristics will be detailed on Form 1099 and included in the company's periodic SEC filing.