MidCap Financial Investment Corporation Declares Quarterly Distribution

MidCap Financial Investment Corporation (NASDAQ: MFIC) will distribute a quarterly dividend of $0.38 per share on December 23, 2025. This payment, authorized by the company's board in early November, represents the full net investment income per share earned for the fiscal quarter ended September 30. Shareholders of record on December 9, 2025, will be eligible for the disbursement, marking the final significant capital distribution for the business year.

The company's net asset value (NAV) per share experienced a slight decrease to $14.66, compared to $14.75 in the prior quarter. Management attributes this modest NAV reduction to challenges within a small number of portfolio companies, while emphasizing that the majority of its holdings continue to demonstrate solid fundamental performance. This results in an overall investment profile characterized by stable earnings and moderate asset volatility.

A key recent focus has been on de-risking the investment portfolio. Notably, the company received a repayment of approximately $97 million from Merx Aviation Finance during the September quarter. The remaining exposure to Merx now constitutes about 3.3% of the total portfolio based on market value. Management anticipates receiving further repayments totaling around $25 million in the near term.

Proceeds from these realizations are expected to be partially reinvested into middle-market loans, a strategy aimed at bolstering both yield and portfolio stability.

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Debt Structure and Operational Integration

MidCap Financial's credit facility was amended effective October 1, 2025. The key changes include an extension of the maturity date to October 1, 2030, a slight reduction in lender commitments to $1.61 billion, and a decrease in the interest rate spread by 10 basis points. As of the end of the reporting period, the company's net leverage ratio stood at 1.35x.

The portfolio maintains a defensive composition, with first-lien senior secured loans representing roughly 98% of all investments.

On the operational front, the company is now integrated within the Apollo Global Management infrastructure. The leadership team is led by CEO Tanner Powell, with Mr. Seifert serving as Chief Financial Officer since mid-2025. A new Chief Accounting Officer was also appointed in September.

Summary of Key Details

• Dividend Amount: $0.38 per share
• Record Date: December 9, 2025
• Payment Date: December 23, 2025
• Current NAV per Share: $14.66 (previous: $14.75)
• Net Leverage Ratio: 1.35x

For income-focused investors, this distribution provides a near-term cash flow event. The company's longer-term stability and earnings trajectory will be influenced by the expected additional repayments and the successful reallocation of capital into new middle-market loan investments.