MSC Income Fund Plans for Strategic Public Stock Offering

MSC Income Fund Proposes Exciting Public Offering

MSC Income Fund, Inc. ("MSC Income" or the "Company"), an externally managed business development company, has announced its intention to embark on a public offering to provide numerous strategic opportunities for the company’s growth and enhancement. This offering includes approximately 4,850,000 shares of common stock, aimed at driving the financial position of MSC Income.

The expected public offering price per share is around $15.53, and the shares will likely be listed on the New York Stock Exchange under the ticker symbol "MSIF." In addition, MSC Income plans to give underwriters the option to purchase up to an additional 727,500 shares to cover any over-allotments, if necessary. As with any public offering, the eventual completion will depend on market conditions and other factors, making it crucial to monitor the outcome as it unfolds.

Purpose and Use of Proceeds

MSC Income has laid out a comprehensive plan for the use of the proceeds from this offering. Initially, the funds raised will be directed towards repaying outstanding debts currently held under its credit facilities. This proactive approach aims to strengthen the company’s financial foundation. Subsequently, MSC Income intends to re-borrow from these facilities to pursue investments that align with its long-term objectives, covering operational expenses and other necessary cash obligations.

Underwriters and Management Team

A strong lineup of experienced financial partners will lead this offering. RBC Capital Markets, Truist Securities, Raymond James, UBS Investment Bank, along with Keefe, Bruyette & Woods, will serve as joint book-running managers for the public offering. Moreover, B. Riley Securities, Citizens JMP, Sanders Morris, Clear Street, Comerica Securities, Texas Capital Securities, and Zions Capital Markets will play crucial roles as co-managers, ensuring that the offering receives expert guidance.

Understanding the Registration Process

It is important for potential investors to note that a registration statement regarding these securities has been submitted to the U.S. Securities and Exchange Commission but has yet to be effective. Until the registration becomes effective, no offers to purchase can be made, emphasizing the necessity of patience from stakeholders. Once effective, all offers can proceed as outlined in the related prospectus, which will provide detailed information about the investment opportunity.

Investment Considerations for Potential Investors

Before participating, potential investors are encouraged to carefully review the investment objectives, risks, charges, and expenses associated with MSC Income. The preliminary prospectus contains essential insights about the Company and should be thoroughly understood prior to any investment decisions. Information within this document may evolve, stressing the importance of staying informed.

Company Overview and Strategy

MSC Income Fund, Inc. functions as a principal investment firm, primarily focusing on providing debt capital to private companies supported by private equity funds. The company offers tailored long-term debt and equity capital solutions targeting lower middle-market firms. Its investment strategy encompasses leveraged buyouts, growth financing, recapitalizations, and acquisitions, offering a diverse portfolio across various industry sectors.

By partnering with private equity sponsors, MSC Income largely invests in secured debt investments, which allows for the supporting of management teams and entrepreneurs in achieving their business goals. The Company’s private loan portfolio typically includes companies with annual revenues ranging between $25 million and $500 million, ensuring a robust investment landscape.

MSC Adviser I, LLC and Its Role

MSC Adviser I, LLC, a wholly-owned subsidiary of Main Street Capital Corporation, functioning under the Investment Advisers Act of 1940, actively manages external investments on behalf of MSC Income. Through this relationship, MSC Income taps into a wealth of expertise and resources, reinforcing its commitment to delivering value to stakeholders and investors alike.

Frequently Asked Questions

What is the primary purpose of MSC Income’s public offering?

The primary purpose of the public offering is to raise capital to repay outstanding debts and invest in new opportunities that align with the company's strategic goals.

How will the proceeds from the offering be utilized?

The proceeds will initially be used to repay debt, followed by re-borrowing to facilitate investments, cover operational expenses, and for general corporate purposes.

Who are the key underwriters managing this offering?

RBC Capital Markets, Truist Securities, Raymond James, UBS Investment Bank, and Keefe, Bruyette & Woods are among the key underwriters for the offering.

What should investors review before committing to this investment?

Potential investors should carefully examine the preliminary prospectus, which outlines investment objectives, risks, charges, and expenses associated with MSC Income.

What kind of companies does MSC Income typically invest in?

MSC Income generally invests in private companies undergoing leveraged buyouts and recapitalizations with annual revenues between $25 million and $500 million.

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