Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate. It focuses to invest in the United States and Canada. The fund focuses on companies with a maximum of $25 million in EBITDA per year. http://www.monroebdc.com
Second Quarter 2019 Financial Highlights Net investment income of $7.1 million, or $0.35 per share Adjusted Net Investment Income (a non-GAAP measure described below) of $7.1 million, or $0.35 per share Net increase in net assets resulting from operations of $4.0 million, or $0.20 per share Net asset value (“NAV”) of $255.9 million, or $12.52 per share Paid quarterly dividend of $0.35 per share on June 28, 2019 Current annual cash dividend yield to shareholders of approximately 12.4% (1) Based on an annualized dividend and closing share price as of August 5, 2019. http://ir.monroebdc.com/news-releas...corporation-bdc-announces-second-quarter-2019
Monroe Capital Corporation (the “Company”) (MRCC) announced today that its Board of Directors has declared a distribution of $0.35 per share for the third quarter of 2019, payable on September 30, 2019 to stockholders of record as of September 16, 2019. The Company has adopted a dividend reinvestment plan that provides for reinvestment of distributions on behalf of its stockholders, unless a stockholder elects to receive cash prior to the record date. As a result, when the Company declares a cash distribution, stockholders who have not opted out of the dividend reinvestment plan prior to the record date will have their distribution automatically reinvested in additional shares of the Company’s capital stock. The specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company’s periodic report filed with the Securities and Exchange Commission. https://finance.yahoo.com/news/monroe-capital-corporation-announces-third-200533757.html
Monroe Capital (MRCC) Tops Q4 Earnings and Revenue Estimates Monroe Capital (MRCC) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.71%. A quarter ago, it was expected that this business development company would post earnings of $0.35 per share when it actually produced earnings of $0.35, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Monroe Capital, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $17.99 million for the quarter ended December 2019, surpassing the Zacks Consensus Estimate by 2.98%. This compares to year-ago revenues of $14.84 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Monroe Capital shares have lost about 4.1% since the beginning of the year versus the S&P 500's decline of -4.4%. https://uk.finance.yahoo.com/news/monroe-capital-mrcc-tops-q4-222510844.html
Lessons Learned from the ’08 – ‘09 Global Financial Crisis There are similarities to the global financial crisis as well as notable differences that will influence lender activity in the months ahead. Here are four key lessons learned from the past crisis: Liquidity is Key: During the ’08 – ’09 global financial crisis, it was impossible to understate the importance of liquidity. Failures during didn’t stem from degrading net income or lower gross margins, but rather asset-liability and liquidity mismatches stemming from the freeze of the capital markets. A key lesson that will serve investors today is the significant premium on liquidity, which should become only more pronounced in the months ahead as unemployment levels rise, consumer spending decreases, and the economic effects of the pandemic become better known. Attentive Engagement is Critical: Amid such widespread economic disruption, clarity around the direct and secondary impacts can be hard to discern. The best way to serve borrowers is through staying active, staying present, and “over communicating” to understand the shifting dynamics in real time. We’re currently providing working capital to borrowers through revolving commitments that will help them emerge the crisis. We’re also engaging in continual dialogue with CFOs to gain transparency into their supply chains, evolving cash flow patterns, and other knock-on effects to ensure they can manage through the coming liquidity crisis. Differentiation through Portfolio Management: Nobody could predict that a pandemic would trigger a global recession, but careful underwriting, conservative capital structures, and active portfolio management can certainly prepare investors for a downturn. Those who rotated out of cyclical industries, such as the airlines, energy, and hospitality, will be in a better position than those who weren’t attentive to the risks or those who assumed they could rotate out of these areas once signs of distress became evident. Dry Powder Enables an Offensive Approach: The global financial crisis effectively gave birth to the Private Credit asset class. With long-term, locked-up capital, private debt is generally better equipped than commercial banks to be flexible in volatile markets – be it to provide relief to existing borrowers or take advantage of mispricing opportunities as liquidity dries up. Those with dry powder available will be opportunistic as mark-to-market repricings force other lenders to sell positions at a significant discount and can step in with rescue financing for otherwise appealing credits caught in the crosshairs of the pandemic. Theodore Koenig President & CEO at Monroe Capital LLC https://www.linkedin.com/pulse/less...e-koenig/?trackingId=fy2i/SgpcYe7WdEBfJPqBg==
