MSDLMEDIUM SIGNALFINANCIAL10-K

MSDL experienced a meaningful decline in net income while actively rebalancing its debt investment portfolio through several exits and new positions.

The substantial reduction in net income suggests challenging market conditions or portfolio performance issues that investors should monitor closely. The extensive portfolio turnover, including exits from Procure Analytics, Brightpet, and Teasdale Latin Foods while adding new positions in Alert Media, Routeware, and Excelitas Technologies, indicates active portfolio management but also potential stress in certain holdings.

Comparing 2026-02-26 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

MSDL's financial performance showed mixed signals with net income declining meaningfully from $215.6M to $122.1M, reflecting potential headwinds in the business development company's investment returns. Cash and equivalents grew modestly to $81.4M, providing some financial flexibility. The combination of reduced profitability alongside active portfolio restructuring suggests the company is navigating a challenging investment environment while maintaining adequate liquidity.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-43.4%
$215.6M→$122.1M

Net income declined 43.4% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+12.5%
$72.4M→$81.4M

Cash grew 12.5% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-27
ADDED
Investment First Lien Debt Reference Rate and Spread S + 7.00% (incl.
3.75% PIK) Interest Rate 12.34% Maturity Date 4/5/2028 2024-12-31 0001782524 Investments-non-controlled/non-affiliated Debt Investments Software Alert Media, Inc.
Investment First Lien Debt Reference Rate and Spread S + 6.25% (incl.
Investment First Lien Debt Reference Rate and Spread S + 5.00% Interest Rate 8.84% Maturity Date 06/30/2031 2025-12-31 0001782524 Investments-non-controlled/non-affiliated Debt Investments Commercial Services Supplies Routeware, Inc.
Investment Second Lien Debt Reference Rate and Spread S + 7.50% (incl.
Investment First Lien Debt Reference Rate and Spread S + 4.50% Interest Rate 8.17% Maturity Date 04/12/2032 One 2025-12-31 0001782524 msdl:OtherDebtInvestmentsMember 2024-12-31 0001782524 Investments-non-controlled/non-affiliated Debt Investments Industrial Conglomerates Excelitas Technologies Corp.
Investment First Lien Debt Reference Rate and Spread S + 5.25% Interest Rate 9.61% Maturity Date 8/14/2028 2024-12-31 0001782524 Investments-non-controlled/non-affiliated Debt Investments Wireless Telecommunication Services Mobile Communications America, Inc.
Investment First Lien Debt Reference Rate and Spread S + 5.25% Interest Rate 8.97% Maturity Date 8/13/2029 One 2025-12-31 0001782524 msdl:BNPFundingFacilityMember 2021-12-31 0001782524 Investments-non-controlled/non-affiliated Equity Investments IT Services Recovery Point Systems, Inc.
Investment Common Equity Acquisition Date 03/05/2021 2025-12-31 0001782524 us-gaap:EquitySecuritiesMember 2025-12-31 0001782524 msdl:InterestRateFloorOneMember 2024-12-31 0001782524 Investments-non-controlled/non-affiliated Debt Investments Professional Services ComPsych Investment Corp.
Investment First Lien Debt Reference Rate and Spread S + 4.75% Interest Rate 8.57% Maturity Date 1/30/2031 2025-12-31 0001782524 Investments - non-controlled/non-affiliated First Lien Debt Excelitas Technologies Corp.
REMOVED
(Procure Analytics), First Lien Debt 1 2024-12-31 0001782524 Procure Acquireco, Inc.
(Procure Analytics), First Lien Debt 2 2024-12-31 0001782524 Procure Acquireco, Inc.
(Brightpet), First Lien Debt 1 2024-12-31 0001782524 AMCP Pet Holdings, Inc.
(Brightpet), First Lien Debt 2 2024-12-31 0001782524 Familia Intermediate Holdings I Corp.
(Teasdale Latin Foods), Other Debt 2024-12-31 0001782524 Nellson Nutraceutical, Inc., First Lien Debt 2024-12-31 0001782524 Teasdale Foods, Inc.
Foy Associates Insurance Services, LLC, First Lien Debt 1 2024-12-31 0001782524 Peter C.
Foy Associates Insurance Services, LLC, First Lien Debt 2 2024-12-31 0001782524 Peter C.
(Thrive Networks), First Lien Debt 1 2024-12-31 0001782524 Thrive Buyer, Inc.
(Thrive Networks), First Lien Debt 2 2024-12-31 0001782524 Thrive Buyer, Inc.
(AbacusNext), First Lien Debt 1 2024-12-31 0001782524 Abacus Data Holdings, Inc.
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