MSC Income Fund Announces Investments in New Portfolio Company and Exit of Investments in an Existing Portfolio Company

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]