"By Q4 2025, the spillover cushion had nearly vanished. Management reduced the Q1 2026 distribution to $0.09 per share to align with actual NII."
"The gap between what MRCC earned and what it paid widened every quarter last year. In Q1 2025, NII was $0.19 per share against a $0.25 dividend."
"Non-accrual investments rose from 3% in Q1 2025 to 4% by Q4 2025. The average portfolio mark fell to 90% from 92% year-over-year."
"NAV per share declined every quarter, falling from roughly $8.63 in Q1 to $7.68 by Q4 2025. The asset base backing the dividend was shrinking."
Monroe Capital Corp merged with Horizon Technology Finance Corporation, ending its existence as a standalone public company. The merger closed on April 14, 2026, converting MRCC common shares into HRZN stock. MRCC generated income primarily from interest and fees on loans to middle-market companies, but faced declining net investment income (NII) and increasing non-accrual investments. By Q4 2025, the dividend was cut to $0.09 per share due to insufficient NII, raising concerns about the sustainability of payouts for former shareholders.
Read at 24/7 Wall St.
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