| COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES As of June 30, 2025, MSC Income had the following outstanding commitments (in thousands):
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| Investments with equity capital commitments that have not yet funded: |
|
Amount |
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| HPEP 3, L.P. |
|
1,308 |
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| 423 AER II, LP |
|
211 |
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| Brightwood Capital Fund III, LP |
|
22 |
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| Total Equity Commitments (1) |
|
$ |
1,541 |
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| Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded: |
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| Mission Critical Group |
|
$ |
10,890 |
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| South Coast Terminals Holdings, LLC |
|
4,460 |
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| GradeEight Corp. |
|
4,400 |
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| Winter Services LLC |
|
4,167 |
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| HEADLANDS OP-CO LLC |
|
3,600 |
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| ZRG Partners, LLC |
|
2,587 |
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| Electro Technical Industries, LLC |
|
2,238 |
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| Bluestem Brands, Inc. |
|
2,194 |
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| JDC Power Services, LLC |
|
2,105 |
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| Richardson Sales Solutions |
|
1,964 |
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| Ansira Partners II, LLC |
|
1,951 |
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| SI East, LLC |
|
1,750 |
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| IG Parent Corporation |
|
1,667 |
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| American Health Staffing Group, Inc. |
|
1,667 |
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| Creative Foam Corporation |
|
1,562 |
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| CQ Fluency, LLC |
|
1,500 |
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| Insight Borrower Corporation |
|
1,495 |
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| KMS, LLC |
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1,357 |
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| Mills Fleet Farm Group, LLC |
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1,349 |
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| ArborWorks, LLC |
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1,345 |
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| ITA Holdings Group, LLC |
|
1,328 |
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| BP Loenbro Holdings Inc. |
|
1,316 |
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| TEC Services, LLC |
|
1,167 |
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| Implus Footcare, LLC |
|
1,162 |
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| Gamber-Johnson Holdings, LLC |
|
938 |
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| BDB Holdings, LLC |
|
920 |
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| RA Outdoors LLC |
|
887 |
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| B-O-F Corporation |
|
840 |
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| Titan Meter Midco Corp. |
|
830 |
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| VVS Holdco LLC |
|
800 |
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| IG Investor, LLC |
|
600 |
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| Centre Technologies Holdings, LLC |
|
600 |
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| Garyline, LLC |
|
596 |
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| Bond Brand Loyalty ULC |
|
540 |
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| Obra Capital, Inc. |
|
521 |
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| Coregistics Buyer LLC |
|
513 |
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| AVEX Aviation Holdings, LLC |
|
512 |
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| The Affiliati Network, LLC |
|
500 |
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| Microbe Formulas, LLC |
|
434 |
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| Burning Glass Intermediate Holding Company, Inc. |
|
413 |
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| CenterPeak Holdings, LLC |
|
400 |
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| Chamberlin Holding LLC |
|
400 |
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| Colonial Electric Company LLC |
|
400 |
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| Pinnacle TopCo, LLC |
|
400 |
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| Trantech Radiator Topco, LLC |
|
400 |
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| Escalent, Inc. |
|
349 |
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| SPAU Holdings, LLC |
|
340 |
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| Career Team Holdings, LLC |
|
300 |
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| Clad-Rex Steel, LLC |
|
300 |
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| Roof Opco, LLC |
|
292 |
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| Victory Energy Operations, LLC |
|
277 |
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| Island Pump and Tank, LLC |
|
274 |
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| Mini Melts of America, LLC |
|
270 |
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| Batjer TopCo, LLC |
|
230 |
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| Metalforming Holdings, LLC |
|
205 |
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| Mystic Logistics Holdings, LLC |
|
200 |
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| Orttech Holdings, LLC |
|
200 |
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| PTL US Bidco, Inc |
|
177 |
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| Channel Partners Intermediateco, LLC |
|
171 |
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| ATS Operating, LLC |
|
150 |
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| GRT Rubber Technologies LLC |
|
100 |
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| Cody Pools, Inc. |
|
83 |
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| Wash & Wax Systems LLC |
|
65 |
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| Invincible Boat Company, LLC. |
|
42 |
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| HDC/HW Intermediate Holdings |
|
25 |
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| AAC Holdings, Inc. |
|
17 |
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| Total Loan Commitments |
|
$ |
75,732 |
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| Total Commitments |
|
$ |
77,273 |
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____________________
(1)This table excludes commitments related to one additional Other Portfolio investment for which the investment period has expired and remaining commitments may only be drawn to pay fund expenses or for follow-on investments in existing portfolio companies. The Company does not expect any material future capital to be called on its commitment to this investment to pay fund expenses, and based on representations from the fund manager, the Company does not expect any further capital will be called on its commitment for follow-on investments. As a result, the Company has excluded those commitments from this table.
MSC Income will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (which are typically through existing cash and cash equivalents and borrowings under the Credit Facilities). MSC Income follows a process to manage its liquidity and ensure that it has available capital to fund its unfunded commitments as necessary. MSC Income had no unrealized appreciation or depreciation on the outstanding unfunded commitments as of June 30, 2025.
MSC Income may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may seek to impose liability on MSC Income in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, MSC Income does not expect any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending or future legal proceedings will have a material adverse effect on MSC Income’s financial condition or results of operations in any future reporting period.
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