Monroe Capital to invest in middle-market debt via stock proceeds

By Toni Weeks

San Luis Obispo, Calif., Feb. 6 – Monroe Capital Corp. plans to raise $50 million by selling stock, with the proceeds used to invest in middle-market debt, according to a 497 filing with the Securities and Exchange Commission.

The externally managed, closed-end, non-diversified management investment company seeks to maximize total return in the form of current income and capital appreciation by investing in senior, unitranche and junior secured debt and, to a lesser extent, unsecured subordinated debt and equity investments.

The company invests in securities that are rated below investment grade.

Michael J. Egan, Theodore L. Koenig, Jeremy T. Van der Meid and Aaron D. Peck comprise the investment committee.

MLV & Co. LLC and JMP Securities LLC will act as sales agents for the deal, which will offer the stock from time to time in at-the-market or negotiated transactions.

Proceeds will be used to invest in portfolio companies in accordance with Monroe’s investment objectives and for general corporate purposes.

Monroe Capital’s common stock (Nasdaq: MRCC) closed at $14.72 on Thursday.

The sales load is 2%. Including a base management fee of 3.18%, total annual expenses are expected to be 11.6%.

Chicago-based Monroe Capital BDC Advisors, LLC serves as the investment adviser.

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