MidCap Financial Investment Corporation held a conference call to announce its mergers and discuss its financial results for the period ending September 30, 2023. The call was led by Elizabeth Besen, Investor Relations Manager, and featured company executives, including Howard Widra, Executive Chairman, and Tanner Powell, Chief Executive Officer. The mergers involve Apollo Senior Floating Rate Fund Inc. and Apollo Tactical Income Fund Inc. merging into MidCap Financial Investment Corporation, subsequently creating a larger business development company (BDC) focused on first lien, floating rate loans to middle market companies. The executives outlined the financial benefits of the merger, including accretive returns on equity and net investment income per share, as well as a special cash payment to shareholders. The call concluded with a question and answer session for participants to gain further insight into the mergers.
MidCap Financial Investment Corporation’s Q2 2024 Earnings Call Transcript reveals the company’s strategic moves to solidify its position in the middle market business development industry. With mergers planned with Apollo Senior Floating Rate Fund Inc. and Apollo Tactical Income Fund Inc., the company aims to become a leading pure-play middle market BDC, expanding its investments to approximately 215 portfolio companies with a net asset value of over $1.4 billion. The call emphasized the expected benefits of the mergers, including an increase in returns on equity and net investment income per share, as well as special cash payments to shareholders and the reimbursements of transaction expenses. The company’s top executives provided in-depth details about the mergers and the potential financial advantages, positioning MidCap Financial Investment Corporation for future growth and success in its market segment.
The conference call not only outlined the mergers and financial results but also provided valuable insights into the financial landscape and opportunities for investors. MidCap Financial Investment Corporation’s efforts to combine forces with Apollo’s entities reflect a strategic move to enhance its market position and shareholder value. By focusing on first lien, floating rate loans to middle market companies, the company aims to capitalize on investment opportunities and drive growth. The call underscored the importance of the mergers in driving value creation for all stakeholders while providing clarity on the timing and expectations associated with the transactions.
