MSC Income Fund, Inc. (MSIF) and Main Street Capital Corporation have each committed capital to UBM ParentCo, LLC to back the company’s acquisition of Mystic Logistics Holdings, LLC. MSIF is contributing $12.7 million, while Main Street Capital is providing $15.6 million, bringing the total financing package to $28.3 million.
The deal is structured as first‑lien, senior secured term debt with a minority equity component, giving MSIF and Main Street priority in repayment while also allowing upside participation in UBM’s future growth. The financing is intended to fund the $X‑million purchase of Mystic Logistics, which UBM completed in December 2025 and which expands its mail‑consolidation and freight‑brokerage capabilities.
UBM’s acquisition of Mystic Logistics is a strategic move to broaden its service offering for large mailers. Mystic’s expertise in mail consolidation and freight brokerage complements UBM’s existing marketing‑mail commingle services, creating a more comprehensive logistics platform that can deliver faster, more cost‑effective solutions to customers.
MSIF’s investment aligns with its broader strategy of providing private loans to lower‑middle‑market companies, often in partnership with Main Street Capital. In Q3 2025, MSIF reported net income of $26.5 million, a 62.9% increase from the prior quarter, and a return on equity of 12.0%. The fund’s balance sheet remains strong, with $20.6 million in cash and $602.8 million in long‑term debt, and it recently completed a $150 million notes offering in March 2026 to support its investment activities.
The co‑investment strengthens UBM’s capital position, enabling a smoother integration of Mystic Logistics and enhancing its nationwide logistics network. For MSIF, the deal reinforces its focus on private‑loan investments and supports its dividend sustainability strategy, which emphasizes recurring interest income from first‑lien debt.
Together, the transaction demonstrates the continued partnership between MSIF and Main Street Capital and signals confidence in the lower‑middle‑market logistics sector’s growth prospects.
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