Monroe Capital Corporation (MRCC) announced that it will raise its final special distribution to legacy shareholders by $13.0 million, bringing the total pre‑merger closing distribution to $15.9 million ($0.75 per share). The increase is tied to the pending merger with Horizon Technology Finance (HRZN) and will be paid after MRCC sells its assets to Monroe Capital Income Plus Corporation (MCIP) and before the merger closes, contingent on shareholder approval and the fulfillment of closing conditions.
The distribution will be funded by proceeds from MRCC’s asset sale to MCIP, a transaction that precedes the merger. Shareholder approval of the merger is scheduled for March 13, 2026, and the distribution will be paid after that vote and before the merger’s closing date. The payment is therefore contingent on the merger’s approval and the completion of the asset sale.
MRCC’s 2025 net investment income (NII) fell to $11.4 million ($0.53 per share) from $24.5 million ($1.13 per share) in 2024. The decline was driven by a reduction in weighted‑average invested assets and lower effective rates as base rates fell. HRZN’s 2025 NII was $44.4 million ($1.05 per share), down from $47.8 million ($1.32 per share) in 2024, largely due to lower pre‑payment activity and a smaller investment portfolio.
The merger is structured as a NAV‑for‑NAV exchange, with HRZN becoming the surviving public entity. The transaction is intended to create a larger, more scalable business development company with enhanced capital for investment. By combining MRCC’s and HRZN’s assets and operations, the new entity aims to unlock shareholder value and position itself for long‑term growth.
"We are pleased to announce the planned increase in MRCC's final special distribution to MRCC's legacy stockholders," said Theodore L. Koenig, Chairman and CEO of Monroe Capital. Mike Balkin, CEO of Horizon, described 2025 as "a year of transformation" and noted that the merger would "significantly increase equity capital available for investment and improve scale."
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