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MSC Income Fund Prices Public Offering

On January 28, 2025, MSC Income Fund, Inc., recognized as a prominent externally managed business development company, revealed that it has successfully priced its public offering. The offering includes 5,500,000 shares of its common stock, setting the price at $15.53 per share. This strategic financial move is expected to play a critical role in bolstering the company's growth and investment initiatives.

Trading and Underwriters

The shares are slated to begin trading on the New York Stock Exchange on January 29, 2025, with the designated stock symbol "MSIF." In addition, MSC Income has granted underwriters the choice to purchase an extra 825,000 shares to cover any overallotments that may arise, ensuring flexibility in managing investor interest over the offering.

The successful offering will see its shares delivered approximately by January 30, 2025, following the closing of the offering, which is still contingent upon customary closing conditions.

A consortium of reputable financial institutions, including RBC Capital Markets, Truist Securities, Raymond James, UBS Investment Bank, and Keefe, Bruyette & Woods (a Stifel Company), will act as joint book-running managers for this offering. Moreover, firms such as B. Riley Securities, Citizens JMP, and others serve as co-managers of the offering, consolidating MSC Income’s reach and influence in the financial markets.

Purpose of the Proceeds

The primary aim behind this public offering is to generate capital that MSC Income plans to utilize for several strategic purposes. Initially, the company will use the net proceeds for repaying outstanding debts accrued under its existing credit facilities. Following the debt repayment, the firm intends to reinstate borrowing under those facilities to support investments aligned with its established objectives and strategies. These strategies include funding operating expenses, fulfilling various cash obligations, and addressing general corporate needs.

Corporate Overview

MSC Income Fund, Inc. primarily focuses on providing debt capital to privately held companies, particularly those leveraged by or being acquired by private equity firms. The company structures tailored long-term debt and equity solutions, targeting lower middle market companies. Investments are typically funneled into sectors such as leveraged buyouts, recapitalizations, and refinancings, which align with their strategic focus of partnering with private equity sponsors and management teams.

Through its private loan investment strategy, the company primarily invests in secured debt, targeting firms with annual revenues ranging from $25 million to $500 million. Specifically, its lower middle-market portfolio investments usually cater to companies with revenue brackets between $10 million and $150 million, showcasing a diverse investment portfolio.

Cautionary Notes

MSC Income Fund urges potential investors to thoroughly examine the investment objectives and risks associated with their offerings. The preliminary prospectus released on January 21, 2025, details these and other relevant information concerning MSC Income, thus reinforcing the necessity of understanding the investment landscape prior to commitment. Investors should be aware that the information presented in the registration statement has not been finalized and is subject to change.

The shares offered will only become available through the formal prospectus accompanying the registration statement, which can be requested from RBC Capital Markets, ensuring compliance with relevant securities laws.

Conclusion

As MSC Income Fund moves forward with its public offering, it positions itself for scalability and growth, emphasizing financial health and ability to serve its targeted sectors effectively. With notable backing from established financial institutions, the offering stands as a robust avenue for support and expansion within its operational domain.