Monroe plans $75 million IPO for investments in middle-market debt

By Toni Weeks

San Diego, Oct. 25 - Monroe Capital Corp. announced it will sell $75 million of its common stock in its initial public offering, according to a 497 filing with the Securities and Exchange Commission.

The newly formed, externally managed, closed-end, non-diversified management investment company seeks to maximize total return in the form of current income and capital appreciation by investing primarily in senior, uni-tranche and junior secured debt of middle-market companies and, to a lesser extent, in unsecured subordinated debt and equity.

The investment committee is led by Theodore L. Koenig and Aaron D. Peck and includes Michael J. Egan and Jeremy T. VanDerMeid.

Robert W. Baird & Co. Inc., William Blair & Co., LLC and Janney Montgomery Scott LLC are the joint bookrunners. BB&T Capital Markets and Stephens Inc. are the co-lead managers, and Ladenburg Thalmann & Co. Inc. and Wunderlich Securities, Inc. are the co-managers.

The company plans to sell 5 million shares at $15 apiece. The underwriters have an over-allotment option to sell another 750,000 shares for additional proceeds of $11.25 million.

The filing noted that the Monroe Capital's common stock has been approved for listing on the Nasdaq under the symbol "MRCC."

Stockholder transaction expenses consist of a 2.05% sales load. The base management fee is 2.57%, with total annual expenses estimated at 7.29%.

Chicago-based Monroe Capital BDC Advisors, LLC, or MC Advisors, is the investment advisor.

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