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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