The offering closed on March 13 2026, raising $150 million in senior unsecured notes with a 6.34 % coupon that matures on May 31 2029. The proceeds will be used to repay a portion of the fund’s floating‑rate multi‑year revolving credit facility and then re‑borrow to fund new investments.
The fixed‑rate financing locks in interest costs amid a rising floating‑rate environment, providing the fund with predictable debt service expenses while still allowing it to tap the credit facility for future deals. The transaction increases MSC Income’s leverage but also expands its regulatory leverage capacity, which was enhanced on January 29 2026, giving the fund greater flexibility to deploy capital.
In the fourth quarter of 2025, MSC Income reported a 16.3 % annualized return on equity and a significant net increase in the fair value of its investments. The new capital will support continued growth of its lower‑middle‑market portfolio—companies with $10 million to $150 million in revenue—and its private‑loan portfolio, which targets firms with $25 million to $500 million in revenue.
CEO Dwayne L. Hyzak highlighted the fund’s strong investment pipeline and confidence in generating attractive opportunities. He noted the “above‑average” private‑loan pipeline and the advantage of refinancing at a lower fixed rate to reduce exposure to volatile floating rates.
Analysts adjusted their outlooks, reflecting a cautious view of the increased leverage but recognition of the fund’s solid performance. The transaction positions MSC Income to capitalize on opportunities in both its lower‑middle‑market and private‑loan segments, while the fixed‑rate financing supports margin stability as the fund pursues new investments.
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