Annual report [Section 13 and 15(d), not S-K Item 405]

COMMITMENTS AND CONTINGENCIES

v3.25.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
As of December 31, 2025, MSC Income had the following outstanding commitments (in thousands):
Investments with equity capital commitments that have not yet funded: Amount
HPEP 3, L.P. $ 1,308 
423 AER II, LP 147 
Brightwood Capital Fund III, LP 22 
Total Equity Commitments (1) $ 1,477
 
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
Royal Cup Inc. $ 17,143 
Auria Space, LLC 16,379 
Core Transformers 15,000 
AGS American Glass Services Acquisition, LLC 7,350 
Mission Critical Group 6,790 
Airo Purchaser, Inc. 6,393 
South Coast Terminals Holdings, LLC 4,460 
KMS, LLC 3,393 
MCT Purchaserco Holding Inc. 2,875 
Behavior Development Group Holdings 2,500 
GradeEight Corp. 2,347 
Bluestem Brands, Inc. 2,309 
Electro Technical Industries, LLC 2,238 
Rug Doctor, LLC. 2,116 
CRC Evans USA Bidco, Inc. 2,052 
Flame King Holdings, LLC 2,000 
Winter Services LLC 1,944 
SI East, LLC 1,750 
IG Parent Corporation 1,667 
Richardson Sales Solutions 1,623 
Creative Foam Corporation 1,563 
ZRG Partners, LLC 1,562 
Garyline, LLC 1,513 
CQ Fluency, LLC 1,500 
BP Loenbro Holdings Inc. 1,428 
Insight Borrower Corporation 1,329 
American Health Staffing Group, Inc. 1,250 
TEC Services, LLC 1,167 
SPAU Holdings, LLC 1,000 
Chamberlin Holding LLC 1,000 
UBM AcquireCo LLC 1,000 
AVEX Aviation Holdings, LLC 876 
B-O-F Corporation 840 
Titan Meter Midco Corp. 830 
Cody Pools, Inc. 786 
Bettercloud, Inc. 753 
Centre Technologies Holdings, LLC 600 
IG Investor, LLC 600 
Bond Brand Loyalty ULC 540 
Obra Capital, Inc. 521 
Coregistics Buyer LLC 513 
RA Outdoors LLC 438 
Microbe Formulas, LLC 434 
Victory Energy Operations, LLC 415 
Pinnacle TopCo, LLC 400 
Colonial Electric Company LLC 400 
Trantech Radiator Topco, LLC 400 
Roof Opco, LLC 389 
Escalent, Inc. 349 
Career Team Holdings, LLC 300 
Gamber-Johnson Holdings, LLC 300 
Clad-Rex Steel, LLC 300 
ArborWorks, LLC 271 
CenterPeak Holdings, LLC 200 
Mini Melts of America, LLC 195 
AAC Holdings, Inc. 181 
Implus Footcare, LLC 161 
Invincible Boat Company, LLC. 104 
Channel Partners Intermediateco, LLC 95 
ATS Operating, LLC 75 
Hornblower Sub, LLC 56 
Wash & Wax Systems LLC 22 
Total Loan Commitments $ 128,985 
Total Commitments $ 130,462 
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(1)This table excludes a commitment related to one additional Other Portfolio investment for which the investment period has expired and the remaining commitment may only be drawn to pay fund expenses or for follow-on investments in existing portfolio companies. The Fund 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 Fund does not expect any further capital will be called on its commitment for follow-on investments. As a result, the Fund has excluded this commitment 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 December 31, 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.