The following is a summary of the MidCap Financial Investment Corporation (MFIC) Q4 2023 Earnings Call Transcript:

Financial Performance:

• MidCap Financial reported Q4 net income per share at $0.51, with net asset value per share increasing by 1% to $15.41.

• The portfolio's fair value increased to $2.33 billion, with a weighted average yield at cost of 12.2%.

• The reported net investment income per share for Q4 increased to $0.46 from $0.43 in the last quarter, indicating a strong ROE of 11.9%.

• However, net expenses for Q4 increased to $42.2 million due to higher interest expenses.

• Investment in Merx reduced over $70 million, now comprising 8% of the total portfolio's fair value.

• The company declared a steady dividend of $0.38 per share, offering an annual yield of approximately 9.9% based on December 31's NAV per share.

Business Progress:

• MFIC deployed $175 million of new commitments, with 45% directed to existing portfolio companies, diversifying its portfolio to 152 companies across 23 industries.

• By December 2023, unsecured debt made up 38% of total principal debt, contributing to a rise in the weighted average interest rate on debt to 6.94% from 6.76%.

• The company managed to decrease its net leverage ratio to 1.34x as of December 2023, from 1.4x in the previous quarter.

• MFIC executed its first CLO transaction, and issued $80 million of 5-year non-core unsecured notes in December, helping reduce reliance on their revolving credit facility.

• The company is in the final stages of discussing with the SEC on their N14 and announced it's entering into a merger agreement with Apollo Senior Floating Rate Fund Inc. and Apollo Tactical Income Fund Inc.

More details: MidCap Financial Investment Corporation IR

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