MSC Income Fund, Inc. Initiates Public Offering of Common Stock

MSC Income Fund, Inc. Launches Public Offering of Common Stock

MSC Income Fund, Inc. (referred to as "MSC Income" or "the Company"), a business development entity, recently disclosed plans for a public offering of its common stock. The announcement was made on January 21, 2025, indicating the issuance of approximately 4,850,000 shares at a projected price of $15.53 each. It’s essential to note that the completion of this offering hinges on various factors, including market conditions, indicating a level of uncertainty that prospective investors must consider.

In order to facilitate this public offering, shares are expected to be listed on the New York Stock Exchange under the ticker symbol "MSIF." Additionally, MSC Income plans to afford underwriters the option to purchase up to an additional 727,500 shares to manage over-allotments.

The funds generated from this offering are primarily earmarked for repaying existing debts accrued through credit facilities. With the intention to subsequently re-borrow from these facilities, the Company aims to make investments aligned with its established strategies, covering operational expenses and fulfilling other financial obligations.

For the execution of this offering, a group of well-known financial institutions have been designated as joint book-running managers, including RBC Capital Markets, Truist Securities, Raymond James, UBS Investment Bank, and Keefe, Bruyette & Woods, a Stifel Company. Supporting them as co-managers are several entities such as B. Riley Securities, Citizens JMP, Sanders Morris, and others.

It’s important to highlight that a registration statement related to this offering has been submitted to the U.S. Securities and Exchange Commission (SEC) but has yet to gain effectiveness. Consequently, offers for these securities cannot be accepted until the registration becomes effective, underlining the need for investors to stay informed on this development.

In advance of making any investments, potential investors are encouraged to thoroughly evaluate the investment goals, risks, and costs associated with MSC Income. The preliminary prospectus released on the same day contains critical information and should be reviewed with care.

MSC Income Fund Overview

MSC Income Fund operates as a principal investment firm predominantly focused on offering debt capital to private firms that are either owned by or in the process of being acquired by private equity funds. Additionally, it provides long-term debt and equity capital tailored specifically for lower middle-market firms. The Company’s investment strategies typically support leveraged buyouts, recapitalizations, growth financings, and various acquisitions across diverse industry sectors.

The firms receiving investments from MSC Income generally report annual revenues between $25 million and $500 million, while the lower middle market companies fall within a revenue range of $10 million to $150 million. By collaborating with private equity fund sponsors, MSC Income emphasizes secured debt investments, demonstrating a strategic focus on fostering growth within the private loan investment landscape.

Conclusion

In summary, the public offering by MSC Income Fund serves as a strategic move aimed at bolstering the Company's financial standing while simultaneously providing investors with a potential opportunity. However, significant caution is advised as the success of the offering hinges on various unpredictable factors. As always, thorough diligence is paramount for those considering an investment in this venture. Investors should keep an eye on the SEC's actions regarding the effectiveness of the registration statement, which will pave the way for this public offering to proceed.