Monroe Capital Raises Pre-Merger Distribution to $0.75/Share and Plans Supplemental Payouts
Monroe Capital plans to increase its final pre-merger closing distribution by $13.0 million ($0.61 per share) to total $15.9 million ($0.75 per share), contingent on stockholder approval at its March 13 meeting. Post-merger, the combined company will deploy $27.6 million of undistributed earnings to boost monthly payouts by $0.02 to $0.04 per share for two quarters.
1. Increase in Pre-Merger Distribution
Monroe Capital will pay legacy stockholders a one-time supplemental distribution of $13.0 million ($0.61 per share) in addition to its $2.9 million ($0.14 per share) final tax distribution. This brings the total pre-merger closing distribution to $15.9 million ($0.75 per share), funded by proceeds from the sale of substantially all assets to Monroe Capital Income Plus Corporation.
2. Post-Merger Supplemental Payouts
Upon closing of the merger with Horizon Technology Finance, the surviving company will use $27.6 million of undistributed taxable earnings to supplement regular monthly distributions for two quarters. The board anticipates these supplemental payouts will total $0.02 to $0.04 per share per month, subject to asset coverage and covenant compliance.
3. Merger Approval and Conditions
Payment of the pre-merger distribution and post-merger supplements is contingent on approval by MRCC and Horizon stockholders at special meetings scheduled for March 13, 2026, and on satisfaction of closing conditions under the definitive merger agreement.