Core Viewpoint - MidCap Financial has announced the signing of approximately $3.1 billion in senior unsecured notes and junior subordinated notes, marking a transformative milestone that enhances its balance sheet strength and financial flexibility, with an expected improvement in its Senior Unsecured credit rating to investment grade status [1][2]. Group 1: Financial Impact - The issuance of notes is expected to significantly improve MidCap's credit profile, expanding access to capital markets and reinforcing its ability to serve around 600 borrowers [2]. - The transaction diversifies funding sources, extends liability duration, and is anticipated to lower the cost of capital over time, enhancing competitive positioning and supporting growth across lending platforms [2][3]. Group 2: Management Statements - David Moore, Co-Founder and Vice Chairman, stated that this transaction fundamentally reshapes the balance sheet and accelerates the evolution into an investment-grade institution, validating the business model and long-term growth strategy [3]. - CEO Josh Groman emphasized that this inaugural investment-grade financing will fuel continued expansion as a leading diversified private credit platform, highlighting the team's achievements leading to this milestone [3]. Group 3: Financial Policies - MidCap is committed to a conservative financial policy, targeting an adjusted net leverage ratio below 2.5x, net secured debt to total assets below 30%, and net senior unsecured leverage below 1.5x, while maintaining at least $2 billion in liquidity [4]. Group 4: Company Overview - MidCap Financial is a middle-market focused specialty finance firm providing senior debt solutions across all industries, managing over $62 billion in commitments as of December 31, 2025 [5]. - The firm is managed by Apollo Capital Management, a subsidiary of Apollo Global Management, which had approximately $908 billion in assets under management as of September 30, 2025 [5].