MFICMEDIUM SIGNALFINANCIAL10-K
MFIC experienced substantially higher interest expenses that compressed profitability despite maintaining a stable debt growth trajectory.
The business development company saw interest expenses roughly double while net income declined by over one-third, indicating either rising interest rates on floating-rate debt or increased borrowing costs impacting portfolio returns. The portfolio composition shows active turnover with multiple new investments across healthcare, technology, and consumer sectors, suggesting ongoing deployment of capital but at potentially higher financing costs.
Comparing 2026-02-26 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS
Interest expenses substantially increased from $55.0M to $104.2M, likely reflecting higher SOFR rates given the company's floating-rate debt structure, while net income fell 36% to $63.2M as financing costs outpaced investment returns. Total debt grew modestly from $1.8B to $2.0B, and cash increased 32% to $98.2M, suggesting the company maintained liquidity while managing through a higher rate environment. The overall picture reflects a BDC navigating interest rate headwinds that compressed net investment income despite continued capital deployment activity.
FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
$55.0M→$104.2M
Interest expense surged 89.4% — significant debt increase or rising rates materially impacting earnings.
Net Income
P&L
$98.8M→$63.2M
Net income declined 36.1% — review whether driven by operations, interest costs, or non-recurring items.
Cash & Equivalents
Balance Sheet
$74.4M→$98.2M
Cash position surged 32% — strong cash generation or capital raise providing significant financial cushion.
Total Debt
Balance Sheet
$1.8B→$2.0B
Debt rose 13.9% — additional borrowing for investment or operations; monitor coverage ratios.
Total Liabilities
Balance Sheet
$1.8B→$2.0B
Liabilities increased 12.9% — monitor debt-to-equity ratio and interest coverage.
LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-25
ADDED
Aventiv Technologies, LLC (fka Securus Technologies Holdings, LLC) First Lien Secured Debt - Term Loan SOFR+1026, 1.00% Floor Maturity date - 03/25/26 2025-12-31 0001278752 Controlled Investments Merx Aviation Finance, LLC, Membership Interests 2024-12-31 0001278752 mfic:TrilliumMember mfic:HealthcarePharmaceuticalsMember 2024-12-31 0001278752 mfic:AkoyaMember mfic:HealthcarePharmaceuticalsMember 2024-12-31 0001278752 mfic:SeniorUnsecuredNotesTwoThousandTwentyEightMember 2025-12-31 0001278752 Hotels, Restaurants Leisure, International Cruise Excursion Gallery, Inc., Arrivia, Inc.
Trust) ,Membership Interests 2025-12-31 0001278752 mfic:BannerBuyerLLCMember 2025-12-31 0001278752 2015-08-05 2015-08-05 0001278752 mfic:SigmaBuyerLLCMember 2024-12-31 0001278752 Automobile Components Truck-Lite Co., LLC Truck-Lite Co., LLC First Lien Secured Debt - Delayed Draw SOFR+475, 0.75% Floor Maturity Date 02/13/32 2025-12-31 0001278752 Aerospace Defense Beaufort, Eagle Aggregator Ltd Common Equity - Common Stock 2025-12-31 0001278752 Affiliated Investments Golden Bear 2016-R, LLC, Membership Interests 2024-12-31 0001278752 Construction Engineering Trench Plate Trench Plate Rental Co.
First Lien Secured Debt - Delayed Draw SOFR+625, 2.00% Floor Maturity Date 10/25/27 2025-12-31 0001278752 Personal Care Products Summer Fridays Summer Fridays, LLC First Lien Secured Debt - Revolver SOFR+525, 1.00% Floor Maturity Date 05/16/31 2025-12-31 0001278752 Software Zafin Zafin Labs Americas Incorporated First Lien Secured Debt - Revolver SOFR+475, 0.75% Floor Maturity Date 02/14/31 2025-12-31 0001278752 mfic:ArcadiaSolutionsIncMember 2025-12-31 0001278752 High Tech Industries New Relic Crewline Buyer, Inc.
First Lien Secured Debt - Term Loan SOFR+675, 1.00% Floor Maturity Date 11/08/30 2024-12-31 0001278752 Pharmaceuticals Avid Bioservices Space Parent, LP Common Equity - Common Stock 2025-12-31 0001278752 High Tech Industries Uplight Uplight, Inc.
First Lien Secured Debt Term Loan SOFR+610, 1.00% Floor Maturity Date 03/01/29 2025-12-31 0001278752 mfic:OMH-HealthedgeHoldingsIncMember 2024-12-31 0001278752 mfic:RiskOfCurrentlyUseBorrowedFundsToMakeInvestmentsMember 2025-01-01 2025-12-31 0001278752 Wholesale Ambrosia Buyer Corp.
Common Equity Common Stock 2024-12-31 0001278752 us-gaap:FairValueInputsLevel3Member mfic:StructuredProductsAndOtherMember 2024-01-01 2024-12-31 0001278752 Diversified Consumer Services Village Pet Care Village Pet Care, LLC First Lien Secured Debt - Revolver SOFR+650, 1.00% Floor Maturity Date 09/22/29 2025-12-31 0001278752 mfic:MacQueenEquipmentLLCMember 2025-12-31 0001278752 Wholesale Universal Air Conditioner Cool Buyer, Inc.
First Lien Secured Debt - Revolver SOFR+475, 0.75% Floor Maturity Date 09/22/28 2025-12-31 0001278752 Financial Services AML Rightsource Gabriel Partners, LLC First Lien Secured Debt - Delayed Draw SOFR+195 Cash plus 5.45% PIK, 1.00% Floor Maturity Date 01/21/27 2025-12-31 0001278752 Trading Companies Distributors PSE Painters Supply and Equipment Co.
(fka Graffiti Buyer, Inc.) First Lien Secured Debt - Revolver SOFR+560, 1.00% Floor Maturity Date 08/10/27 2025-12-31 0001278752 Business Services IRP Precision Refrigeration Air Conditioning LLC Investment Type First Lien Secured Debt - Revolver SOFR+690, 1.00% Floor Maturity Date 03/08/28 2024-12-31 0001278752 us-gaap:InvestmentUnaffiliatedIssuerMember mfic:FirstLienSecuredDebtMember mfic:BuildingProductsMember 2025-12-31 0001278752 Software Beeline IQN Holding Corp.
First Lien Secured Debt - Delayed Draw SOFR+635, 1.00% Floor Maturity Date 03/30/29 2025-12-31 0001278752 mfic:HealthManagementAssociatesSuperholdingsIncMember 2024-12-31 0001278752 Hotels, Restaurants Leisure, Crumbl, Crumbl Enterprises LLC, First Lien Secured Debt - Revolver, SOFR+450, 0.75% Floor, Maturity Date 05/05/32 2025-12-31 0001278752 mfic:CollateralizedLoanObligationsTwoMember 2018-04-01 2019-03-31 0001278752 High Tech Industries Beeline IQN Holding Corp.
First Lien Secured Debt - Revolver SOFR+525, 0.75% Floor Maturity Date 05/02/28 2024-12-31 0001278752 Consumer Goods - Non-durable Paladone Paladone Group Bidco Limited First Lien Secured Debt Term Loan SOFR+560, 1.00% Floor Maturity Date 11/12/27 2024-12-31 0001278752 Healthcare Pharmaceuticals Rarebreed Rarebreed Veterinary Partners, Inc.
REMOVED
2024-12-31 0001278752 mfic:AutoPoolMember 2023-12-31 0001278752 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2023-12-31 0001278752 Non-Controlled/Non-Affiliated Investments, Telecommunications, Unsecured Debt 2024-12-31 0001278752 mfic:TwoThousandTwentySixNotesMember 2015-04-01 2016-03-31 0001278752 us-gaap:FairValueInputsLevel3Member mfic:SecondLienSecuredDebtMember 2023-12-31 0001278752 mfic:ConstructionAndBuildingMember 2024-12-31 0001278752 Kure Pain Holdings, Inc.
Undrawn Commitment 2024-12-31 0001278752 Non-Controlled/Non-Affiliated Investments, Second Lien - Secured Debt 2023-12-31 0001278752 Hotel, Gaming, Leisure, Restaurants Cave Cave Enterprises Operations, LLC First Lien Secured Debt SOFR+660, 1.50% Floor Maturity Date 08/09/28 2023-12-31 0001278752 mfic:EnvironmentalIndustriesMember 2024-12-31 0001278752 Healthcare Pharmaceuticals Treace Treace Medical Concepts, Inc.
First Lien Secured Debt Revolver SOFR+410, 1.00% Floor Maturity Date 04/01/27 2024-12-31 0001278752 mfic:SeniorUnsecuredNotesTwoThousandTwentyFiveMember 2024-01-01 2024-12-31 0001278752 mfic:AutoPoolMember 2024-12-31 0001278752 EmpiRx Health LLC 2023-12-31 0001278752 Affiliated Investments Blue Jay Transit Inc.,Term Loan 2024-01-01 2024-12-31 0001278752 Non-Controlled/Non-Affiliated Investments, Consumer Goods - Non-durable 2024-12-31 0001278752 Beverage, Food Tobacco Nutpods Green Grass Foods, Inc.
First Lien Secured Debt - Revolver SOFR+625, 1.00% Floor Maturity Date 12/26/29 2023-12-31 0001278752 Healthcare Pharmaceuticals Celerion 2024-12-31 0001278752 Business Services AlpineX Alpinex Opco, LLC First Lien Secured Debt SOFR+626, 1.00% Floor Maturity Date 12/27/27 2023-12-31 0001278752 Healthcare Pharmaceuticals TELA Bio, Inc.
First Lien Secured Debt - Delayed Draw SOFR+635, 1.00% Floor Maturity Date 05/01/27 2024-12-31 0001278752 Consumer Services Clarus Commerce Marlin DTC-LS MIDCO2, LLC First Lien Secured Debt - Revolver SOFR+660, 1.00% Floor Maturity Date 07/01/25 2023-12-31 0001278752 Consumer Goods - Non-durable LashCo Lash OpCo, LLC First Lien Secured Debt - Delayed Draw SOFR+275 Cash plus 5.10% PIK, 1.00% Floor Maturity Date 03/18/26 2024-12-31 0001278752 Preferred Equity 2023-12-31 0001278752 High Tech Industries Align RMCF V CIV L, L.P.
Common Equity - Common Stock 2024-12-31 0001278752 us-gaap:FairValueInputsLevel3Member mfic:StructuredProductsAndOtherMember 2023-12-31 0001278752 Business Services US Legal Support USLS Acquisition, Inc.
Investment Type First Lien Secured Debt - Term Loan SOFR+590, 1.00% Floor Maturity Date 06/01/26 2024-12-31 0001278752 Cave Enterprises Operations, LLC 2024-12-31 0001278752 us-gaap:CollateralizedLoanObligationsMember 2024-12-31 0001278752 mfic:MFICBethesdaCLOTwoLLCDebtSecuritizationMember mfic:ClassA2SeniorSecuredFloatingRateNotesDueTwoThousandThirtySevenMember us-gaap:SubsequentEventMember 2025-02-24 0001278752 Healthcare Pharmaceuticals Omega Healthcare OMH-Healthedge Holdings, Inc.
First Lien Secured Debt - Term Loan SOFR+600, 1.00% Floor 10/08/29 2024-12-31 0001278752 Automotive 2024-12-31 0001278752 Controlled Investments, Aviation and Consumer Transport, First Lien - Secured Debt 2023-12-31 0001278752 us-gaap:CommonStockMember 2018-10-30 2018-10-30 0001278752 Paladone Group Bidco Limited Undrawn Commitment 2024-12-31 0001278752 Transportation - Cargo, Distribution Beacon Mobility Beacon Mobility Corp.
First Lien Secured Debt SOFR+635, 1.00% Floor Maturity Date 12/31/25 2023-12-31 0001278752 Telecommunications Securus Technologies Holdings, Inc.
2023-12-31 0001278752 mfic:SECRule10b51RepurchasePlanMember 2016-09-30 0001278752 Non-Controlled/Non-Affiliated Investments, Consumer Goods Durable, First Lien - Secured Debt 2023-12-31 0001278752 Upstack Holdco Inc., Letters of Credit 2023-12-31 0001278752 Total Healthcare Pharmaceuticals 2024-12-31 0001278752 TerSera Therapeutics LLC Undrawn Commitment 2024-12-31 0001278752 Controlled Investments, Transportation Cargo, Distribution 2023-12-31 0001278752 Wholesale Universal Air Conditioner Cool Buyer, Inc.
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