Monroe Capital Corporation BDC (Nasdaq: MRCC) Announces Fourth Quarter and Full Year 2020 Financial Results

Fourth Quarter 2020 Financial Highlights:

•            Paid quarterly dividend of $0.25 per share

•            Current annual cash dividend yield to shareholders of approximately 10.5%1

•            Shares trading at a Price to NAV of 0.86x2

•            Net investment income of $5.3 million, or $0.25 per share

•            Adjusted Net Investment Income (a non GAAP measure described in our press release) of $5.4 million, or $0.25 per share

•            Net increase in net assets resulting from operations of $9.1 million, or $0.42 per share

•            NAV of $234.4 million, or $11.00 per share

1. Based on an annualized dividend and closing share price as of March 1, 2021

2. Based on closing share price as of March 1, 2021 and book value per share as of December 31, 2020

Full Year 2020 Financial Highlights:

•            Net investment income of $30.4 million, or $1.45 per share

•            Adjusted Net Investment Income (a non GAAP measure described in our press release) of $30.8 million, or $1.47 per share

•            Net increase in net assets resulting from operations of $1.6 million, or $0.08 per share

Chief Executive Officer Theodore L. Koenig commented, “We are pleased to report another quarter of strong financial results. During the fourth quarter, we reported another increase in our Net Asset Value and we again fully covered our dividend with Net Investment Income. We continue to believe the vast majority of our portfolio companies have strong long-term outlooks and we have seen recovery and stabilization in many of our portfolio companies that have been impacted by the COVID-19 pandemic. As market volatility resulting from the uncertainty related to the impacts of COVID-19 continued to decline during the fourth quarter, we saw spreads continue to tighten and valuations for portfolio companies without significant long-term COVID-19 impact continue to rebound, consistent with our experience in the prior two quarters. We had a very active late fourth quarter, redeploying a portion of the proceeds we received from recent repayment activity into current yielding assets which should positively contribute to earnings in future quarters. We are also very pleased with the January 25, 2021 issuance of $130.0 million in senior unsecured notes at an interest rate of 4.75% per annum with a maturity date of February 15, 2026 (the “2026 Notes”). The proceeds from the 2026 Notes were used to redeem all of the outstanding 5.75% 2023 Notes and repay a portion of the outstanding revolving credit facility. This refinancing lowered our debt financing costs which should positively impact our Adjusted Net Investment Income and earnings in future quarters. As always, we continue to be focused on the interests of our shareholders and will operate with caution and remain focused on generation of Net Investment Income, preservation of capital and creation of shareholder value.”

To read the Fourth Quarter Press Release in its entirety, please click on the following link:

Monroe Capital Corporation 4th Quarter and Full Year 2020 Earnings Press Release

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 LLC

Monroe Capital LLC ("Monroe") is a premier boutique asset management firm specializing in private credit markets across the various strategies, including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, 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 offices in Atlanta, Boston, Los Angeles, New York, and San Francisco.

Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2020 Lower Mid-Market Lender of the Year, 2020 Lender of the Year, and 2020 CLO Manager of the Year, Americas; Creditflux as the 2020 Best U.S. Direct Lending Fund; Pension Bridge as the 2020 Private Credit Strategy of the Year; and Global M&A Network as the 2020 Small Middle Markets Lender of the Year. For more information, please visit www.monroecap.com.

For questions about Monroe Capital Corporation, please contact:

Aaron Peck, Chief Financial Officer & Chief Investment Officer

+1 (312) 523-2363
apeck@monroecap.com

For investor relations, please contact:

R. Sean Duff, Managing Director
+1 (312) 523-2372
sduff@monroecap.com