Board Authorized New
Results for the Quarter and Fiscal Year Ended
- Net investment income per share for the quarter was
$0.39 , compared to$0.38 for the quarter endedSeptember 30, 2025 - Net asset value (“NAV”) per share as of the end of the quarter was
$14.18 , compared to$14.66 as ofSeptember 30, 2025 , representing a 3.3% decline primarily driven by a handful of investments predominantly from 2022 and earlier vintages - New investment commitments made during the quarter totaled
$141 million (1) - Gross fundings, excluding revolver fundings,(2) totaled
$156 million for the quarter - Net fundings, including revolvers(2) and Merx, totaled
$25 million for the quarter - Merx repaid
$7.5 million to the Company (as defined below) in the December quarter and an additional$22 million inFebruary 2026 for a total amount of$29.5 million - Net leverage(3) was 1.45x as of
December 31, 2025 - Repurchased 1,091,753 shares of common stock at a weighted average price per share of
$11.81 , inclusive of commissions, for an aggregate cost of$12 .9 million during the quarter, generating$0.03 per share of NAV accretion - On
February 25, 2026 , the Company’s Board of Directors (the “Board”) declared a dividend of$0.31 per share payable onMarch 26, 2026 , to stockholders of record as ofMarch 10, 2026 (4) - The Board authorized a new
$100 million stock repurchase plan (the “Repurchase Plan”)
On
Commenting on the Company’s results for the fourth quarter of 2025, Mr.
Mr.
___________________
(1) Commitments made for the direct origination portfolio.
(2) During the quarter ended
(3) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4) There can be no assurances that the Board will continue to declare a base dividend of
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share data) | 2025 | 2025 | 2025 | 2025 | 2024 | ||||||||||||||
| Total assets | $ | 3.32 | $ | 3.31 | $ | 3.46 | $ | 3.36 | $ | 3.19 | |||||||||
| Investment portfolio (fair value) | $ | 3.17 | $ | 3.18 | $ | 3.33 | $ | 3.19 | $ | 3.01 | |||||||||
| Debt outstanding | $ | 2.00 | $ | 1.92 | $ | 2.05 | $ | 1.94 | $ | 1.75 | |||||||||
| Net assets | $ | 1.31 | $ | 1.37 | $ | 1.38 | $ | 1.39 | $ | 1.40 | |||||||||
| Net asset value per share | $ | 14.18 | $ | 14.66 | $ | 14.75 | $ | 14.93 | $ | 14.98 | |||||||||
| Debt-to-equity ratio | 1.53 x | 1.40 x | 1.49 x | 1.39 x | 1.25 x | ||||||||||||||
| Net leverage ratio (1) | 1.45 x | 1.35 x | 1.44 x | 1.31 x | 1.16 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 | Year Ended | ||||||||||||||||
| (in millions)* | 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Investments made in portfolio companies | $ | 193.6 | $ | 303.5 | $ | 1,274.6 | $ | 1,613.6 | |||||||||
| Investments sold | (14.7 | ) | (82.9 | ) | (111.1 | ) | (271.5 | ) | |||||||||
| Net activity before repaid investments | 178.9 | 220.6 | 1,163.6 | 1,342.1 | |||||||||||||
| Investments repaid | (154.3 | ) | (226.9 | ) | (972.6 | ) | (657.5 | ) | |||||||||
| Net investment activity | $ | 24.6 | $ | (6.4 | ) | $ | 191.0 | $ | 684.6 | ||||||||
| Portfolio companies, at beginning of period | 246 | 250 | 233 | 152 | |||||||||||||
| Number of investments in new portfolio companies | 11 | 11 | 54 | 167 | |||||||||||||
| Number of exited companies | (10 | ) | (28 | ) | (40 | ) | (86 | ) | |||||||||
| Portfolio companies at end of period | 247 | 233 | 247 | 233 | |||||||||||||
| Number of investments in existing portfolio companies | 92 | 83 | 156 | 130 | |||||||||||||
___________________
* Totals may not foot due to rounding.
OPERATING RESULTS
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in millions)* | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net investment income | $ | 36.0 | $ | 37.1 | $ | 142.0 | $ | 133.3 | ||||||||
| Net realized and change in unrealized gains (losses) | (48.7 | ) | (13.0 | ) | (78.8 | ) | (34.5 | ) | ||||||||
| Net increase in net assets resulting from operations | $ | (12.7 | ) | $ | 24.1 | $ | 63.2 | $ | 98.8 | |||||||
| (per share)* (1) | ||||||||||||||||
| Net investment income on per average share basis | $ | 0.39 | $ | 0.40 | $ | 1.52 | $ | 1.71 | ||||||||
| Net realized and change in unrealized gain (loss) per share | (0.53 | ) | (0.14 | ) | (0.84 | ) | (0.44 | ) | ||||||||
| Earnings per share — basic | $ | (0.14 | ) | $ | 0.26 | $ | 0.68 | $ | 1.27 | |||||||
___________________
* 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
The Company has not repurchased any shares from
Since the inception of the share repurchase program and through
The Company also announced today that the Board has approved the Repurchase Plan to acquire up to
Since the inception of the share repurchase program in
Since the inception of the share repurchase program and through
* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on
LIQUIDITY
As of
On
The final maturity date under the Amended Senior Secured Facility was extended from
Borrowings under the Amended Senior Secured Facility (and the incurrence of certain other permitted debt) continue to be subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. The advance rate applicable to any specific type of asset in the Company’s portfolio depends on the relevant asset coverage ratio as of the date of determination. Borrowings under the Amended Senior Secured Facility continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended (the “1940 Act”). Terms used in this disclosure have the meanings set forth in the Amended Senior Secured Facility.
On
CONFERENCE CALL / WEBCAST AT
The Company will host a conference call on
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
2025 | 2025 | 2025 | 2025 | 2024 | |||||||
| Portfolio composition, at fair value: | |||||||||||
| First lien secured debt | 95% | 95% | 93% | 93% | 92% | ||||||
| Second lien secured debt | 0% | 0% | 0% | 0% | 1% | ||||||
| Total secured debt | 95% | 95% | 93% | 93% | 93% | ||||||
| Unsecured debt | 0% | 0% | 0% | 0% | 0% | ||||||
| Structured products and other | 0% | 1% | 1% | 1% | 1% | ||||||
| Preferred equity | 1% | 1% | 1% | 1% | 1% | ||||||
| Common equity/interests and warrants | 4% | 3% | 5% | 5% | 5% | ||||||
| Weighted average yields, at amortized cost (1): | |||||||||||
| First lien secured debt (2) | 9.7% | 10.2% | 10.4% | 10.5% | 10.8% | ||||||
| Second lien secured debt (2) | 13.0% | 13.5% | 13.7% | 13.8% | 14.4% | ||||||
| Total secured debt (2) | 9.7% | 10.2% | 10.4% | 10.5% | 10.8% | ||||||
| Unsecured debt portfolio (2) | 11.1% | 11.1% | 9.5% | 9.5% | 9.5% | ||||||
| Total debt portfolio (2) | 9.7% | 10.2% | 10.4% | 10.5% | 10.8% | ||||||
| Total portfolio (3) | 8.6% | 9.0% | 9.2% | 9.4% | 9.5% | ||||||
| Interest rate type, at fair value (4): | |||||||||||
| Fixed rate amount | |||||||||||
| Floating rate amount | |||||||||||
| Fixed rate, as percentage of total | 0% | 0% | 1% | 1% | 1% | ||||||
| Floating rate, as percentage of total | 100% | 100% | 99% | 99% | 99% | ||||||
| Interest rate type, at amortized cost (4): | |||||||||||
| Fixed rate amount | |||||||||||
| Floating rate amount | |||||||||||
| Fixed rate, as percentage of total | 0% | 0% | 1% | 1% | 1% | ||||||
| Floating rate, as percentage of total | 100% | 100% | 99% | 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 and investments on non-accrual status.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) | ||||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Non-controlled/non-affiliated investments (cost — | $ | 2,819,511 | $ | 2,605,329 | ||||
| Non-controlled/affiliated investments (cost — | 107,111 | 84,334 | ||||||
| Controlled investments (cost — | 241,216 | 324,753 | ||||||
| Cash and cash equivalents | 98,184 | 74,357 | ||||||
| Foreign currencies (cost — | 1,264 | 1,429 | ||||||
| Receivable for investments sold | 6,253 | 57,195 | ||||||
| Interest receivable | 23,678 | 19,289 | ||||||
| Dividends receivable | 630 | 709 | ||||||
| Deferred financing costs | 23,626 | 23,555 | ||||||
| Prepaid expenses and other assets | 2,171 | — | ||||||
| Total Assets | $ | 3,323,644 | $ | 3,190,950 | ||||
| Liabilities | ||||||||
| Debt (net of deferred financing costs and unamortized original discount of 5,838 and 5,527 at | $ | 1,995,210 | $ | 1,751,621 | ||||
| Payable for investments purchased | 558 | 4,190 | ||||||
| Management fees payable | 6,034 | 6,247 | ||||||
| Performance-based incentive fees payable | — | 5,336 | ||||||
| Interest payable | 12,867 | 12,813 | ||||||
| Accrued administrative services expense | 228 | 60 | ||||||
| Other liabilities and accrued expenses | 1,486 | 6,037 | ||||||
| Total Liabilities | $ | 2,016,383 | $ | 1,786,304 | ||||
| Commitments and contingencies (Note 8) | ||||||||
| Net Assets | $ | 1,307,261 | $ | 1,404,646 | ||||
| Net Assets | ||||||||
| Common stock, | $ | 92 | $ | 94 | ||||
| Capital in excess of par value | 2,652,891 | 2,658,090 | ||||||
| Accumulated under-distributed (over-distributed) earnings | (1,345,722 | ) | (1,253,538 | ) | ||||
| Net Assets | $ | 1,307,261 | $ | 1,404,646 | ||||
| Net Asset Value Per Share | $ | 14.18 | $ | 14.98 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Investment Income | ||||||||||||||||
| Non-controlled/non-affiliated investments: | ||||||||||||||||
| Interest income (excluding Payment-in-kind (“PIK”) interest income) | $ | 69,293 | $ | 71,915 | $ | 280,556 | $ | 265,157 | ||||||||
| Dividend income | 31 | — | 31 | 40 | ||||||||||||
| PIK interest income | 3,781 | 4,640 | 16,736 | 12,011 | ||||||||||||
| Other income | 896 | 554 | 1,899 | 4,147 | ||||||||||||
| Non-controlled/affiliated investments: | ||||||||||||||||
| Interest income (excluding PIK interest income) | 914 | 587 | 5,207 | 2,685 | ||||||||||||
| Dividend income | 200 | 250 | 840 | 726 | ||||||||||||
| PIK interest income | — | 35 | 1,162 | 140 | ||||||||||||
| Controlled investments: | ||||||||||||||||
| Interest income (excluding PIK interest income) | 3,113 | 4,132 | 14,306 | 16,781 | ||||||||||||
| Other income | 128 | 45 | 138 | 95 | ||||||||||||
| Total Investment Income | $ | 78,356 | $ | 82,158 | $ | 320,875 | $ | 301,782 | ||||||||
| Expenses | ||||||||||||||||
| Management fees | $ | 6,034 | $ | 6,247 | $ | 24,243 | $ | 19,450 | ||||||||
| Performance-based incentive fees | — | 5,336 | 16,100 | 21,548 | ||||||||||||
| Interest and other debt expenses | 30,994 | 30,937 | 127,076 | 115,961 | ||||||||||||
| Administrative services expense | 3,619 | 1,036 | 6,675 | 4,120 | ||||||||||||
| Other general and administrative expenses | 1,806 | 1,698 | 6,263 | 8,176 | ||||||||||||
| Total expenses | 42,453 | 45,254 | 180,357 | 169,255 | ||||||||||||
| Performance-based incentive fee offset | — | — | — | — | ||||||||||||
| Expense reimbursements | (107 | ) | (172 | ) | (1,477 | ) | (769 | ) | ||||||||
| Net Expenses | $ | 42,346 | $ | 45,082 | $ | 178,880 | $ | 168,486 | ||||||||
| Net Investment Income | $ | 36,010 | $ | 37,076 | $ | 141,995 | $ | 133,296 | ||||||||
| Net Realized and Change in Unrealized Gains (Losses) | ||||||||||||||||
| Net realized gains (losses): | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | (13,351 | ) | $ | 2,641 | $ | (45,539 | ) | $ | (4,273 | ) | |||||
| Non-controlled/affiliated investments | (14 | ) | (11,668 | ) | (338 | ) | (11,668 | ) | ||||||||
| Controlled investments | — | (44,787 | ) | — | (60,487 | ) | ||||||||||
| Foreign currency forward contracts | — | — | (610 | ) | — | |||||||||||
| Foreign currency transactions | (37 | ) | 32 | (233 | ) | (592 | ) | |||||||||
| Extinguishment of debt | (3,406 | ) | — | (3,406 | ) | — | ||||||||||
| Net realized gains (losses) | (16,808 | ) | (53,782 | ) | (50,126 | ) | (77,020 | ) | ||||||||
| Net change in unrealized gains (losses): | ||||||||||||||||
| Non-controlled/non-affiliated investments | (30,705 | ) | (8,980 | ) | (43,004 | ) | (19,626 | ) | ||||||||
| Non-controlled/affiliated investments | (5,036 | ) | 2,757 | (8,601 | ) | (5,232 | ) | |||||||||
| Controlled investments | 3,988 | 44,755 | 25,598 | 65,876 | ||||||||||||
| Foreign currency forward contracts | — | — | (9 | ) | — | |||||||||||
| Foreign currency translations | (179 | ) | 2,232 | (2,684 | ) | 1,525 | ||||||||||
| Net change in unrealized gains (losses) | (31,932 | ) | 40,764 | (28,700 | ) | 42,543 | ||||||||||
| Net Realized and Change in Unrealized Gains (Losses) | $ | (48,740 | ) | $ | (13,018 | ) | $ | (78,826 | ) | $ | (34,477 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (12,730 | ) | $ | 24,058 | $ | 63,169 | $ | 98,819 | |||||||
| Earnings (Loss) Per Share — Basic | $ | (0.14 | ) | $ | 0.26 | $ | 0.68 | $ | 1.27 | |||||||
Important Information
Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The prospectus dated
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
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, tariffs and trade disputes with other countries, 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
Contact
Investor Relations Manager
212.822.0625
ebesen@apollo.com
