Monroe Capital Corporation BDC Announces Third Quarter 2019 Results

Monroe Capital Corporation BDC (Nasdaq: MRCC) Announces

Third Quarter 2019 Financial Results

Third Quarter 2019 Financial Highlights:

•            Paid quarterly dividend of $0.35 per share ($1.40 annualized), our 28th consecutive quarterly dividend payment and our 22nd consecutive quarterly dividend payment where per share Adjusted Net Investment Income (a non-GAAP measure described in our press release) met or exceeded our quarterly dividend per share;

•            Current annual cash dividend yield to shareholders of approximately 12.5%1;

•            Reduced management fee rate on assets (excluding cash and restricted cash) in excess of regulatory leverage of 1:1 debt to equity (200% of the Company’s total net assets) to 1.00% from 1.75% per annum;

•            Shares trading at a Price to NAV of 0.91x2;

•            Net investment income of $7.2 million, or $0.35 per share; and

•            Adjusted Net Investment Income of $7.2 million, or $0.35 per share

1. Based on closing share price as of November 6, 2019

2. Based on closing share price as of November 6, 2019 and book value per share as of September 30, 2019

Chief Executive Officer Theodore L. Koenig commented,

“This is the 22nd straight quarter where per share Adjusted Net Investment Income met or exceeded our quarterly per share dividend.  We have also made our 28th consecutive quarterly dividend payment to our shareholders. While we are pleased with the growth in our portfolio, an increase of $26.6 million during the quarter, and the continued coverage of our dividend by net investment income, we are not happy with the slight decline of 1.4% in our per share NAV. Over the past several quarters, we have seen some idiosyncratic credit issues with a few borrowers. We do not believe these isolated issues are representative of our portfolio as a whole. We feel we are on the right track in resolving some of these credit issues and we hope to be able to see the results of our efforts in the coming quarters. Separately, as we have grown the portfolio over the last year to utilize the additional leverage capacity available under the Small Business Credit Availability Act, we have taken a shareholder friendly action to amend and reduce our management fee calculation, effective as of the beginning of the third quarter. This amendment has the effect of reducing our annual base management fee rate on assets in excess of regulatory leverage of 1:1 debt to equity to 1.00% from 1.75% per annum. As with the prior calculation, there is no management fee paid on cash and restricted cash assets. The combination of our reduced management fee structure and our continued incentive fee waiver demonstrates our commitment to maintaining dividend coverage with net investment income and creating value for our shareholders. All of this reflects our confidence in the long-term strength of our business.”

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

Monroe Capital Corporation 3rd Quarter 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 private credit asset management firm specializing in direct lending and opportunistic private credit investing. Since 2004, the firm has provided private credit solutions to borrowers in the U.S. and Canada. Monroe’s middle market lending platform provides debt financing to businesses, special situation borrowers, and private equity sponsors. Investment types include cash flow, enterprise value and asset-based loans; unitranche financings; and equity co-investments. Monroe is committed to being a value-added and user-friendly partner to business owners, senior management, and private equity and independent sponsors. The firm is headquartered in Chicago and maintains offices in Atlanta, Boston, Los Angeles, New York, and San Francisco.

Monroe has been recognized by Creditflux as the 2019 Best US Direct Lending Fund; Private Debt Investor as the 2018 Lower Mid-Market Lender of the Year; Global M&A Network as the 2018 Small Middle Markets Lender of the Year; M&A Advisor as the 2016 Lender Firm of the Year; and the U.S. Small Business Administration as the 2015 Small Business Investment Company (SBIC) 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

To learn more about Monroe Capital Corporation, visit www.monroebdc.com.