MSC Income Fund Announces Completion of $150.0 Million Investment Grade Notes Offering

Rhea-AI Summary

MSC Income Fund (NYSE: MAIN) closed a private offering of $150.0 million aggregate principal of unsecured investment grade notes carrying a fixed interest rate of 6.34% payable semiannually and maturing on May 31, 2029.

According to the company, net proceeds will initially repay a portion of outstanding borrowings under its floating-rate revolving credit facility and then be re-borrowed to fund investments, pay operating expenses and for general corporate purposes.

Positive

• $150.0 million of new unsecured notes issued
• Fixed interest at 6.34% reduces short-term rate volatility
• Proceeds used to repay floating-rate revolver, lowering near-term exposure

Negative

• Creates fixed debt service obligation through May 31, 2029
• Notes are unsecured, increasing credit-risk sensitivity for creditors
• Interest expense at 6.34% raises fixed financing costs versus lower-cost options

News Market Reaction – MSIF

-0.08%

-0.08% Session close to close

In the Mar 13 session, MSIF declined 0.08%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement detailed a private issuance of $150.0 million in unsecured investment grade notes ...

Analysis

This announcement detailed a private issuance of $150.0 million in unsecured investment grade notes bearing 6.34% interest and maturing on May 31, 2029. Proceeds were designated first to repay borrowings under the floating rate revolving credit facility, then to be re-borrowed to fund new investments, expenses, and general corporate purposes. Historically, MSC Income’s offerings have supported balance sheet repositioning and portfolio growth, so investors may track future deployment of this capital and any changes in funding mix.

Key Figures

Notes offering size: $150.0 million Coupon rate: 6.34% per year Maturity date: May 31, 2029

3 metrics

Notes offering size $150.0 million Aggregate principal amount of private investment grade notes

Coupon rate 6.34% per year Fixed interest rate on the Notes, payable semiannually

Maturity date May 31, 2029 Stated maturity of the Notes

Previous Offering Reports

2 past events · Latest: Feb 04 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 04	Equity offering	Positive	+2.5%	Closed public stock offering raising about $91M in net proceeds.
Jan 30	Follow-on offering	Positive	+2.5%	Completed follow-on public offering tied to NYSE listing at $15.53.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Prior equity offerings used to repay credit facilities and reinvest saw modest positive reactions around +2.5%.

Recent Company History

In early 2025, MSC Income completed two equity offerings tied to its NYSE listing under ticker MSIF. On Jan 30, 2025 it sold 5,500,000 shares at $15.53, raising about $85.4M in gross proceeds. A follow-on on Feb 4, 2025 expanded this to 6,325,000 shares, generating roughly $91M in net proceeds. In both cases, funds were directed first to repay credit facilities, then re-borrowed to fund investments and general corporate needs, similar to the structure of today’s notes financing.

Key Terms

investment grade notes, revolving credit facility, make-whole premium

3 terms

investment grade notes financial

"MSC Income Fund ... announces the closing of a private notes offering totaling $150.0 million..."

Debt securities that have been given a high credit rating by independent rating firms, signaling a relatively low risk of default. Think of them as loans to a borrower judged dependable—so they usually pay lower interest but are more attractive to cautious investors and institutions. Their status affects how easily the borrower can raise money and at what cost, and influences portfolio risk and regulatory eligibility for many investors.

revolving credit facility financial

"repay a portion of the outstanding debt borrowed under its floating rate multi-year revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

make-whole premium financial

"at par plus accrued interest ... and, if applicable, a make-whole premium"

A make-whole premium is an extra payment a borrower must give bondholders when repaying debt early to compensate them for lost future interest; think of it as a lump-sum “catch-up” to leave lenders financially where they would have been if the loan had run its full term. It matters to investors because it affects how much they receive on early redemption and influences a company’s decision to refinance or repay debt, altering bond value and expected returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, March 13, 2026 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce the closing of a private notes offering totaling $150.0 million in aggregate principal amount (the "Notes").  The Notes are unsecured and bear interest at a fixed rate of 6.34% per year, payable semiannually, mature on May 31, 2029 and may be redeemed in whole or in part at any time or from time to time at MSC Income's option at par plus accrued interest to the prepayment date and, if applicable, a make-whole premium.

MSC Income intends to use the net proceeds from this offering to initially repay a portion of the outstanding debt borrowed under its floating rate multi-year revolving credit facility and then, through re-borrowing under its revolving credit facility, to fund investments in accordance with its investment objective and strategies, to pay operating expenses and other cash obligations and for general corporate purposes.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

ABOUT MSC INCOME FUND, INC.

The Fund (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) ("Main Street") utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.

ABOUT MSC ADVISER I, LLC

MSC Adviser I, LLC ("MSCA") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. MSCA serves as the investment adviser and administrator of the Fund in addition to several other advisory clients.

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements, including but not limited to the availability of future financing capacity under the Fund's revolving credit facility. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Fund's control, and that the Fund may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Fund's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to the Fund as of the date hereof and are qualified in their entirety by this cautionary statement. The Fund assumes no obligation to revise or update any such statement now or in the future.

Contacts:
MSC Income Fund, Inc.
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Cory E. Gilbert, CFO, cgilbert@mainstcapital.com
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard / ken@dennardlascar.com
Zach Vaughan / zvaughan@dennardlascar.com
713-529-6600

View original content:https://www.prnewswire.com/news-releases/msc-income-fund-announces-completion-of-150-0-million-investment-grade-notes-offering-302713633.html

SOURCE MSC Income Fund, Inc.

FAQ

What debt did MSC Income Fund (MAIN) issue on March 13, 2026?

MSC Income issued $150.0 million of unsecured notes maturing May 31, 2029. According to the company, the Notes bear a fixed 6.34% interest rate, payable semiannually, with optional early redemption at par plus accrued interest.

How will MSC Income Fund (MAIN) use proceeds from the $150.0M notes offering?

Proceeds will first repay a portion of the floating-rate revolving credit facility. According to the company, funds will then support re-borrowing to fund investments, pay operating expenses and meet general corporate needs.

When do the MAIN notes issued March 2026 mature and how is interest paid?

The Notes mature on May 31, 2029 and pay interest semiannually at a fixed rate. According to the company, the stated annual interest rate is 6.34%, with interest payable twice per year.

Are the $150.0M MAIN notes registered for public sale in the United States?

No, the Notes have not been and will not be registered under the Securities Act. According to the company, they may not be offered or sold in the U.S. absent registration or an applicable exemption.

Can MSC Income Fund (MAIN) redeem the notes before maturity and under what terms?

Yes, the company may redeem the Notes in whole or in part at its option before maturity. According to the company, redemption is at par plus accrued interest and, if applicable, a make-whole premium.