Monroe Capital Corporation Announces Final Distribution and Merger Details

Key Points for Investors

• Final Distribution Announced: Monroe Capital Corporation (NASDAQ: MRCC) has declared a final distribution of \$0.60 per share, totaling an aggregate payout of \$13.0 million.
• Contingent on Asset Sale and Merger: This distribution is conditional upon the successful closing of the proposed asset sale to Monroe Capital Income Plus Corporation (MCIP) and the merger with Horizon Technology Finance Corporation (NASDAQ: HRZN).
• Key Dates:
  • Record date for shareholders: April 10, 2026
  • Expected closing date for the asset sale and merger: April 14, 2026
  • Anticipated payment date for the final distribution: On or around April 17, 2026
• Dividend Reinvestment Plan (DRIP): The DRIP will not apply to the final distribution; all participants will receive the payout in cash.
• No Undistributed Earnings or Capital Gains: MRCC has confirmed there are no undistributed earnings or capital gains through the anticipated merger closing date requiring further distribution.

Details and Shareholder Implications

Monroe Capital Corporation has provided clarity on the mechanics and implications of its final distribution in the context of its pending strategic transactions. This final payout of \$0.60 per share is a direct result of the expected proceeds from the proposed asset sale to MCIP. Importantly, this distribution is contingent—it will only occur if both the asset sale and the subsequent merger with Horizon Technology Finance Corporation are finalized.

Shareholder Eligibility and Trading Considerations: The final distribution will be paid to shareholders of record as of the close of business on April 10, 2026. However, the company has highlighted a critical detail for investors: any shareholders who sell their MRCC shares before or on the closing date of the merger (April 14, 2026) will also transfer their entitlement to the final distribution to the purchaser of their shares. This means the entitlement to the \$0.60 payout is closely tied to share ownership as of the merger’s closing—not just the record date. This distinction could potentially impact trading activity and the share price in the lead-up to the merger.

No DRIP for Final Distribution: MRCC has confirmed that its Dividend Reinvestment Plan (DRIP) will not apply to this final distribution. All shareholders, including DRIP participants, will receive the distribution in cash. This is a departure from the typical mechanism where dividends can be reinvested in additional shares.

Forward-Looking Statements and Risks: The company has provided standard cautionary language regarding forward-looking statements, highlighting that the completion of the asset sale and merger are subject to risks and uncertainties. Factors such as regulatory approvals, market conditions, and the ability to close the transactions as planned could materially affect outcomes. Shareholders are advised to review all public filings for further details on potential risks.

What This Means for the Share Price

The announcement of a final, contingent \$0.60 per share cash distribution, coupled with the significant strategic transactions involving an asset sale and merger, are potentially price-sensitive events. The structure of the distribution—specifically the transfer of entitlement with the shares up to the merger closing—could affect trading volumes and share price volatility in the days preceding the merger. Additionally, the cessation of the DRIP for this distribution may impact investor behavior.

Contact Information

• Investor Relations: Mick Solimene, Chief Financial Officer & Chief Investment Officer, [email protected], (312) 598-8401
• Media Relations: Daniel Abramson, [email protected], (857) 305-8441

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should review all company filings with the SEC and consult with financial advisors regarding their individual circumstances. The completion and results of announced transactions are subject to risks and uncertainties.

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