Monroe Capital Declares $0.75 Special Pre-Merger Distribution
Monroe Capital Corp (NASDAQ: MRCC) declared a special distribution of approximately $0.75 per share totaling $15.9 million. The payout is contingent on closing a pending merger with Horizon Technology Finance.
Monroe Capital Corp (NASDAQ: MRCC), a specialty finance company, declared a special pre-merger distribution of approximately $0.75 per share, totaling $15.9 million. The payment is contingent upon the consummation of the company's pending merger with Horizon Technology Finance and a related asset sale to Monroe Capital Income Plus Corp. Read more dividend announcements.
The distribution consists of two components. The first is a final tax distribution covering Monroe Capital's undistributed taxable earnings through the anticipated merger closing date. This payment is necessary to preserve the company's regulated investment company tax treatment. The second component is a one-time supplemental cash distribution of $13.0 million.
Monroe Capital will announce the record date and payment date at a later time. The company's dividend reinvestment plan will not apply to the final tax distribution portion. All participants in the plan will receive that component in cash rather than shares of common stock.
The actual amount of the distribution will be determined at the closing of the merger. Monroe Capital expects the total to approximate $15.9 million based on current calculations of undistributed taxable earnings.
Distribution Details
| Component | Details |
|---|---|
| Total Amount | Approximately $0.75 per share ($15.9 million) |
| Distribution Type | Special (One-Time) |
| Record Date | To be announced |
| Payment Date | To be announced |
| Contingency | Merger consummation required |
| DRIP Eligibility | Not applicable to tax distribution portion |
Merger Context
Horizon Technology Finance's board previously announced plans to use $27.6 million in undistributed taxable earnings as of December 31, 2025 to supplement the combined company's regular monthly distributions for two quarters following the merger closing. Those supplemental distributions remain subject to board declaration and various compliance considerations.
Under the merger agreement, Monroe Capital shareholders will receive newly issued Horizon shares based on the ratio of each company's net asset value per share at closing.