HOUSTON, Feb. 4, 2026 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce the appointment of Nataly M. Marks as a new independent member of its Board of Directors (the "Board"). Ms. Marks will also serve on the Board's Audit Committee. Ms. Marks has served as the President of Triple-S Steel Holdings, Inc. since joining the company in 2022. Triple-S Steel is one of the nation's largest family-owned steel service centers with over 50 locations across North A ...

Core Insights - MSC Income Fund, Inc. announced strong preliminary operating results for the fourth quarter of 2025, highlighting a significant increase in net asset value per share and a return on equity exceeding 16% for the quarter [2][5]. Preliminary Operating Results - The estimated net investment income (NII) for the fourth quarter of 2025 is projected to be between $0.26 and $0.30 per share, with an adjusted net investment income (ANII) estimated between $0.32 and $0.36 per share [3][21]. - The estimated net asset value (NAV) per share as of December 31, 2025, is between $15.81 and $15.89, reflecting an increase of $0.27 to $0.35 per share, or 1.8% to 2.3% from the previous quarter [4]. Investment Portfolio Activity - The Fund's fourth quarter included $100.9 million in total private loan portfolio investments, resulting in a net increase of $57.1 million in the total cost basis of the private loan investment portfolio [7]. - Additionally, there were $23.0 million in total lower middle market (LMM) portfolio follow-on investments, leading to a net increase of $14.9 million in the total cost basis of the LMM investment portfolio [8]. Federal Tax Treatment of Dividends - MSC Income's total dividends for 2025 were $1.44 per share, with approximately 81% taxed as ordinary income, 18% as qualified dividends, and 1% as long-term capital gains [9]. - For non-U.S. shareholders, approximately 64% of the dividends relate to "interest-related" dividends, short-term capital gains, and long-term capital gains, which are exempt from U.S. withholding tax [10]. Upcoming Earnings Release - The Fund will release its fourth quarter and full year 2025 results on February 26, 2026, with a conference call scheduled for February 27, 2026, at 11:00 a.m. Eastern time [12].

Core Insights - MSC Income Fund, Inc. has reported significant activity in its private loan portfolio during the fourth quarter of 2025, with new or increased commitments totaling $131.8 million and total investments funded amounting to $100.9 million [1] Group 1: Private Loan Portfolio Activity - As of December 31, 2025, the private loan portfolio of MSC Income included total investments at cost of approximately $821.7 million across 81 unique companies [2] - The portfolio composition indicates that 92.1% is invested in first lien senior secured debt investments, while 7.9% is allocated to equity investments or other securities [2] Group 2: Investment Strategy and Focus - MSC Income primarily provides debt capital to private companies, particularly those owned by or in the process of being acquired by private equity funds, focusing on leveraged buyouts, recapitalizations, growth financings, refinancings, and acquisitions [3] - The Fund's investments are primarily in secured debt, and it also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, partnering with entrepreneurs and management teams [3] Group 3: Notable Investments - Significant commitments during the fourth quarter include: - $12.0 million in a first lien senior secured term loan to a beverage solutions manufacturer [4] - $12.9 million in a first lien senior secured term loan to a satellite operations provider [4] - $21.6 million in a first lien senior secured term loan to a manufacturer of electrical utility solutions [4] - $16.0 million in a first lien senior secured term loan to a provider of therapy for children with autism [4] - $15.9 million in a first lien senior secured term loan to a digital marketing solutions provider [4] - Increased commitments include $3.4 million in a revolver to a wholesaler and $0.6 million in a term loan to a specialized welding services provider [4]

Core Insights - The company reported net sales of $965.7 million, reflecting a year-over-year increase of 4.0% [1] - Operating income was recorded at $76.2 million, with an adjusted operating income of $81.2 million [1] - The operating margin stood at 7.9%, or 8.4% on an adjusted basis [1] - Diluted earnings per share (EPS) increased to $0.93 compared to $0.83 in the same quarter of the previous fiscal year [1] - Adjusted diluted EPS rose to $0.99 [1]

Investment Overview - MSC Income Fund, Inc. has completed a new portfolio investment of $12.7 million in UBM ParentCo, LLC to facilitate UBM's merger with Mystic Logistics Holdings, LLC [1] - The investment includes a combination of first lien, senior secured term debt and direct minority equity [1] - The Fund has fully exited its debt and equity investments in Mystic and is now a lender and minority equity owner in UBM [1] Company Profiles - UBM is a leading provider of marketing mail commingle services, focusing on optimizing postage, transportation, and delivery performance for large-scale mailers [2] - UBM utilizes a nationwide logistics network and technology-driven processes to enhance speed-to-market, visibility, and cost efficiency for clients [2] - Mystic specializes in marketing mail consolidation and logistics solutions, supporting precise, date-driven in-home delivery performance [3] - Mystic employs disciplined transportation planning, mail flow optimization, and performance tracking to align marketing campaigns with targeted delivery windows [3] Historical Investment Performance - The Fund initially partnered with Mystic's management in August 2014 with a $2.5 million first lien, senior secured term loan and a $0.7 million equity investment [4] - Mystic experienced significant growth post-investment, expanding its customer base and strengthening partnerships [4] - The Fund realized a gain of $6.0 million on the exit of its equity investment in Mystic, along with total dividends of $5.5 million [5] - The cumulative annual internal rate of return (IRR) for the Fund's equity investment in Mystic is 32.9%, with a total money invested (TMI) return of 17.9 times [5] - Including both debt and equity investments, the Fund achieved an IRR of 22.9% and a TMI return of 5.1 times [5] Fund Overview - MSC Income Fund primarily provides debt capital to private companies owned by or in the process of being acquired by private equity funds [6] - The Fund's investments support leveraged buyouts, recapitalizations, growth financings, refinancings, and acquisitions across diverse industry sectors [6] - The Fund typically invests in secured debt and maintains a portfolio of customized long-term debt and equity investments in lower middle market companies [6] - Portfolio companies generally have annual revenues between $25 million and $500 million for private loan investments and between $10 million and $150 million for lower middle market investments [6]

Core Viewpoint - MSC Industrial Supply Co. has declared a cash dividend of $0.87 per share, reflecting its commitment to returning value to shareholders [1] Company Announcement - The dividend of $0.87 is scheduled to be paid on January 28, 2026 [1] - Shareholders must be on record by the close of business on January 14, 2026, to receive the dividend [1]

Core Points - MSC Industrial Supply Co. is a leading distributor of Metalworking and Maintenance, Repair and Operations (MRO) products and services in North America [1] - The company will hold a conference call to discuss its fiscal year 2026 first quarter results and current operations [1] - The conference call is scheduled for January 7, 2026, at 8:30 a.m. and will be broadcast online live [1]

Group 1 - The current year has been challenging for short-cycle industrial end-markets and the distributors serving them [1] - A negative macroeconomic outlook for the first half of 2025 has influenced the overall market sentiment [1]

Core Viewpoint - BlackRock and MSC's acquisition of most of CK Hutchison's global port operations is facing scrutiny from EU antitrust regulators, particularly concerning the Spanish segment of the deal [1] Group 1 - The deal involves a significant portion of CK Hutchison's global port operations [1] - EU antitrust regulators are set to investigate the Spanish part of the acquisition [1]

Core Insights - MSC Income Fund reported a net investment income (NII) of $0.35 per share for Q3 2025, reflecting a 9% increase from $0.32 per share in Q3 2024 [1][9][7] - The Fund's net asset value (NAV) as of September 30, 2025, was $15.54 per share, slightly up from $15.53 per share at the end of 2024 [1][29] - The Fund achieved an annualized return on equity of 14.6% for the quarter, indicating strong performance [3][9] Financial Performance - Total investment income for Q3 2025 was $35.4 million, a 6% increase from $33.5 million in Q3 2024 [4][9] - NII increased by $3.7 million, or 28%, from $12.9 million in Q3 2024 to $16.6 million in Q3 2025 [7][9] - The Fund's total expenses decreased by $1.0 million, or 5%, to $18.3 million in Q3 2025, primarily due to a reduction in interest expenses [5][9] Investment Portfolio - As of September 30, 2025, the Fund's investment portfolio consisted of approximately 60% private loans and 37% lower middle market (LMM) investments [17][19] - The Fund completed $74.6 million in private loan portfolio investments during the quarter, with a net decrease of $6.7 million in the total cost basis due to repayments and realized losses [9][27] - The fair value of the Fund's LMM portfolio company equity investments was 197% of the cost of such equity investments [18] Liquidity and Capital Structure - The Fund had aggregate liquidity of $183.5 million, including $18.1 million in cash and cash equivalents [12] - The debt-to-equity ratio was 0.72x as of September 30, 2025, indicating a conservative leverage position [13] - The Fund maintains an investment grade rating of BBB- with a stable outlook from Kroll Bond Rating Agency [15] Dividends - The Fund declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, totaling $0.36 per share for Q3 2025 [9][30]