Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:             to             

Commission File Number: 814-00939

MSC Income Fund, Inc.

(Exact name of registrant as specified in its charter)

Maryland
(State or other jurisdiction of
incorporation or organization)

45-3999996
(I.R.S. Employer
Identification No.)

1300 Post Oak Boulevard, 8th Floor
Houston, TX
(Address of principal executive offices)

77056
(Zip Code)

(713) 350-6000

(Registrant’s telephone number including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

  

Trading Symbol

 

Name of Each Exchange on Which
Registered

None

N/A

N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

The number of shares outstanding of the issuer’s common stock as of May 16, 2022 was 80,013,491.


Table of Contents

TABLE OF CONTENTS

PART I

FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements

Consolidated Balance Sheets—March 31, 2022 (unaudited) and December 31, 2021

1

Consolidated Statements of Operations (unaudited)—Three months ended March 31, 2022 and 2021

2

Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, 2022 and 2021

3

Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, 2022 and 2021

4

Consolidated Schedule of Investments (unaudited)—March 31, 2022

5

Consolidated Schedule of Investments—December 31, 2021

20

Notes to Consolidated Financial Statements (unaudited)

33

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Three months ended March 31, 2022 and 2021

66

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

72

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

84

Item 4.

Controls and Procedures

85

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

85

Item 1A.

Risk Factors

86

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

86

Item 6.

Exhibits

87

Signatures

88


Table of Contents

MSC INCOME FUND, INC.

Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

March 31, 

December 31, 

    

2022

    

2021

ASSETS

 

(Unaudited)

 

  

Investments at fair value:

 

 

  

Control investments (cost: $29,072 and $28,903 as of March 31, 2022 and December 31, 2021, respectively)

$

46,930

$

46,583

Affiliate investments (cost: $216,740 and $209,971 as of March 31, 2022 and December 31, 2021, respectively)

 

241,000

 

234,158

Non‑Control/Non‑Affiliate investments (cost: $822,092 and $828,301 as of March 31, 2022 and December 31, 2021, respectively)

 

793,666

 

796,395

Total investments (cost: $1,067,904 and $1,067,175 as of March 31, 2022 and December 31, 2021, respectively)

 

1,081,596

 

1,077,136

Cash and cash equivalents

 

39,242

 

25,813

Dividends and interest receivable

 

10,425

 

12,991

Deferred financing costs (net of accumulated amortization of $1,492 and $1,290 as of March 31, 2022 and December 31, 2021, respectively)

3,825

4,049

Receivable for securities sold

 

 

21,729

Prepaids and other assets

1,739

2,059

Total assets

$

1,136,827

$

1,143,777

LIABILITIES

 

 

Credit facilities

$

346,688

$

426,688

Series A Notes due 2026 (par: $150,000 and $77,500 as of March 31, 2022 and December 31, 2021, respectively)

 

148,663

 

 

76,184

Accounts payable and other liabilities

 

1,889

 

 

3,159

Interest payable

4,310

3,093

Dividend payable

 

13,178

 

 

11,974

Management and incentive fees payable

 

5,141

 

5,339

Payable for securities purchased

 

210

 

4,170

Deferred tax liability, net

 

121

 

Total liabilities

 

520,200

 

530,607

Commitments and contingencies (Note J)

 

 

NET ASSETS

 

 

Common stock, $0.001 par value per share (450,000,000 shares authorized; 79,870,636 and 79,826,605 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively)

 

80

 

80

Additional paid‑in capital

 

682,848

 

682,426

Total overdistributed earnings

 

(66,301)

 

(69,336)

Total net assets

 

616,627

 

613,170

Total liabilities and net assets

$

1,136,827

$

1,143,777

NET ASSET VALUE PER SHARE

$

7.72

$

7.68

The accompanying notes are an integral part of these consolidated financial statements

1


Table of Contents

MSC INCOME FUND, INC.

Consolidated Statements of Operations

(in thousands, except shares and per share amounts)

(Unaudited)

Three Months Ended

    

March 31, 

    

    

2022

    

2021

INVESTMENT INCOME:

 

  

 

  

 

Interest, fee and dividend income:

 

 

Control investments

$

1,001

$

600

Affiliate investments

 

5,206

3,650

Non‑Control/Non‑Affiliate investments

 

17,194

16,022

Total investment income

 

23,401

20,272

EXPENSES:

 

Interest

 

4,529

3,164

Base management fees

 

4,990

3,903

Internal administrative services expenses

1,181

1,055

Offering costs

62

Professional fees

347

558

Insurance

130

114

Board of director fees

90

108

General and administrative

409

483

Total expenses before expense waivers

11,738

9,385

Waiver of internal administrative services expenses

 

(1,030)

(1,055)

Total expenses, net of expense waivers

 

10,708

8,330

NET INVESTMENT INCOME

 

12,693

11,942

NET REALIZED GAIN (LOSS):

 

Affiliate investments

 

446

Non‑Control/Non‑Affiliate investments

 

(193)

(1,991)

Realized loss on extinguishment of debt

(2,091)

Total net realized gain (loss)

 

253

(4,082)

NET UNREALIZED APPRECIATION (DEPRECIATION):

 

Control investments

 

177

(66)

Affiliate investments

 

77

1,003

Non‑Control/Non‑Affiliate investments

 

3,477

4,256

Total net unrealized appreciation (depreciation)

 

3,731

5,193

INCOME TAXES:

 

Federal and state income, excise and other taxes

 

(343)

(396)

Deferred taxes

(121)

Income tax benefit (provision)

(464)

(396)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

$

16,213

$

12,657

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

$

0.16

$

0.15

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER
SHARE—BASIC AND DILUTED

$

0.20

$

0.16

WEIGHTED-AVERAGE SHARES
OUTSTANDING—BASIC AND DILUTED

 

79,861,392

79,608,304

The accompanying notes are an integral part of these consolidated financial statements

2


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MSC INCOME FUND, INC.

Consolidated Statements of Changes in Net Assets

(in thousands, except shares)

(Unaudited)

Common Stock

Additional

Total

Number of

Par

PaidIn

Overdistributed

Total Net

    

Shares

    

Value

    

Capital

    

Earnings

    

Asset Value

Balances at December 31, 2020

 

79,608,304

$

80

$

682,028

$

(102,484)

$

579,624

Net increase resulting from operations

12,657

12,657

Dividends to stockholders

(7,961)

(7,961)

Balances at March 31, 2021

79,608,304

$

80

$

682,028

$

(97,788)

$

584,320

Balances at December 31, 2021

79,826,605

$

80

$

682,426

$

(69,336)

$

613,170

Dividend reinvestment

533,062

4,212

4,212

Common stock repurchased

(489,031)

(3,790)

(3,790)

Net increase resulting from operations

16,213

16,213

Dividends to stockholders

(13,178)

(13,178)

Balances at March 31, 2022

79,870,636

$

80

$

682,848

$

(66,301)

$

616,627

The accompanying notes are an integral part of these consolidated financial statements

3


Table of Contents

MSC INCOME FUND, INC.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

Three Months Ended

March 31, 

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net increase (decrease) in net assets resulting from operations

$

16,213

$

12,657

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

Principal repayments received, proceeds from sales of investments in portfolio companies

51,769

60,744

Investments in portfolio companies

(49,899)

(79,381)

Net unrealized (appreciation) depreciation

(3,731)

(5,193)

Net realized (gain) loss on the sale of portfolio investments

(253)

1,991

Realized loss on extinguishment of debt

2,091

Amortization of deferred financing costs

325

311

Accretion of unearned income

(1,337)

(959)

Payment-in-kind interest

(1,009)

(1,412)

Deferred tax provision

121

Changes in other assets and liabilities:

Dividends and interest receivable

2,566

(2,356)

Receivable for securities sold

21,729

(1,789)

Prepaid and other assets

320

919

Payable for securities purchased

(3,960)

10,782

Management and incentive fees payable

(198)

(299)

Interest payable

1,217

1,485

Accounts payable and other liabilities

(1,270)

620

Net cash provided by (used in) operating activities

32,603

211

CASH FLOWS FROM FINANCING ACTIVITIES

Redemption of common stock

(3,790)

Dividends paid

(7,762)

Repayments on Credit Facilities

(112,000)

(311,816)

Proceeds from Credit Facilities

32,000

294,688

Proceeds from Series A Notes due 2026

72,500

Payment of deferred financing costs

(122)

(3,545)

Net cash provided by (used in) financing activities

(19,174)

(20,673)

Net increase (decrease) in cash, cash equivalents and restricted cash

13,429

(20,462)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

25,813

49,066

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

$

39,242

$

28,604

Supplemental cash flow disclosures:

Interest paid

$

2,988

$

1,369

Taxes paid

$

1,668

$

396

Non-cash financing activities:

Value of shares issued pursuant to the DRIP

$

4,212

$

-

The accompanying notes are an integral part of these consolidated financial statements

4


Table of Contents

MSC INCOME FUND, INC.

Consolidated Schedule of Investments

March 31, 2022

(dollars in thousands)

(Unaudited)

Portfolio Company (1) (20)

Business Description

Type of Investment (2) (3) (15)

Investment Date (22)

Shares/Units

Rate

Maturity Date

Principal (4)

Cost (4)

Fair Value (18)

Control Investments (5)

Copper Trail Fund Investments

(12) (13)

Investment Partnership

LP Interests (CTMH, LP)

(24)

7/17/2017

38.8%

$

835

$

710

GRT Rubber Technologies LLC

Manufacturer of Engineered Rubber Products

Secured Debt

12/19/2014

8.23% (L+8.00%)

10/29/2026

19,152

18,942

19,153

Member Units

(8)

12/19/2014

2,896

6,435

22,750

25,377

41,903

Harris Preston Fund Investments

(12) (13)

Investment Partnership

LP Interests (2717 MH, L.P.)

(24)

10/1/2017

49.3%

2,860

4,317

Subtotal Control Investments (7.6% of net assets at fair value)

$

29,072

$

46,930

Affiliate Investments

AFG Capital Group, LLC

Provider of Rent-to-Own Financing Solutions and Services

Secured Debt

4/25/2019

10.00%

5/25/2022

$

14

$

14

$

14

Preferred Member Units

(8)

11/7/2014

46

300

2,090

314

2,104

Analytical Systems Keco Holdings, LLC

Manufacturer of Liquid and Gas Analyzers

Secured Debt

(9)

8/16/2019

12.00% (L+10.00%, Floor 2.00%)

8/16/2024

1,219

1,168

1,168

Preferred Member Units

8/16/2019

800

800

-

Preferred Member Units

5/20/2021

607

607

1,080

Warrants

(27)

8/16/2019

105

8/16/2029

79

-

2,654

2,248

ATX Networks Corp.

(11)

Provider of Radio Frequency Management Equipment

Secured Debt

(9)

9/1/2021

8.50% (L+7.50%, Floor 1.00%)

9/1/2026

7,602

7,057

7,260

Unsecured Debt

(19)

9/1/2021

10.00% PIK

9/1/2028

3,164

2,085

2,136

Common Stock

9/1/2021

585

-

-

9,142

9,396

Barfly Ventures, LLC

(10)

Casual Restaurant Group

Member Units

10/26/2020

12

528

683

Batjer TopCo, LLC

HVAC Mechanical Contractor

Secured Debt

3/7/2022

11.00%

3/31/2027

1,225

1,201

1,201

Preferred Stock

3/7/2022

453

453

453

1,654

1,654

Brewer Crane Holdings, LLC

Provider of Crane Rental and Operating Services

Secured Debt

(9)

1/9/2018

11.00% (L+10.00%, Floor 1.00%)

1/9/2023

1,984

1,976

1,976

Preferred Member Units

(8)

1/9/2018

737

1,070

1,940

3,046

3,916

Centre Technologies Holdings, LLC

Provider of IT Hardware Services and Software Solutions

Secured Debt

(9)

1/4/2019

12.00% (L+10.00%, Floor 2.00%)

1/4/2024

2,316

2,296

2,181

Preferred Member Units

1/4/2019

3,174

1,460

1,460

3,756

3,641

Chamberlin Holding LLC

Roofing and Waterproofing Specialty Contractor

Secured Debt

(9)

2/26/2018

9.00% (L+8.00%, Floor 1.00%)

2/26/2023

4,420

4,382

4,420

Member Units

(8)

2/26/2018

1,087

2,860

6,030

Member Units

(8) (23)

11/2/2018

261,786

330

358

7,572

10,808

5


Table of Contents

MSC INCOME FUND, INC.

Consolidated Schedule of Investments (Continued)

March 31, 2022

(dollars in thousands)

(Unaudited)

Portfolio Company (1) (20)

Business Description

Type of Investment (2) (3) (15)

Investment Date (22)

Shares/Units

Rate

Maturity Date

Principal (4)

Cost (4)

Fair Value (18)

Charps, LLC

Pipeline Maintenance and Construction

Preferred Member Units

(8)

2/3/2017

457

491

3,520

Clad-Rex Steel, LLC

Specialty Manufacturer of Vinyl-Clad Metal

Secured Debt

(9)

12/20/2016

10.50% (L+9.50%, Floor 1.00%)

1/15/2024

2,620

2,620

2,620

Secured Debt

12/20/2016

10.00%

12/20/2036

268

266

266

Member Units

(8)

12/20/2016

179

1,820

2,560

Member Units

(23)

12/20/2016

200

53

152

4,759

5,598

Cody Pools, Inc.

Designer of Residential and Commercial Pools

Secured Debt

(9)

3/6/2020

12.25% (L+10.50%, Floor 1.75%)

12/17/2026

7,190

7,059

7,190

Preferred Member Units

(8) (23)

3/6/2020

147

2,079

11,910

9,138

19,100

Colonial Electric Company LLC

Provider of Electrical Contracting Services

Secured Debt

3/31/2021

12.00%

3/31/2026

6,064

5,938

5,938

Preferred Member Units

(8)

3/31/2021

4,320

1,920

2,280

7,858

8,218

Datacom, LLC

Technology and Telecommunications Provider

Secured Debt

3/31/2021

7.50%

12/31/2025

981

899

851

Preferred Member Units

(8)

3/31/2021

1,000

290

300

1,189

1,151

Digital Products Holdings LLC

Designer and Distributor of Consumer Electronics

Secured Debt

(9)

4/1/2018

11.00% (L+10.00%, Floor 1.00%)

4/1/2023

4,131

4,109

4,109

Preferred Member Units

(8)

4/1/2018

964

2,375

2,459

6,484

6,568

Direct Marketing Solutions, Inc.

Provider of Omni-Channel Direct Marketing Services

Secured Debt

(9)

2/13/2018

12.00% (L+11.00%, Floor 1.00%)

2/13/2024

4,637

4,585

4,637

Preferred Stock

(8)

2/13/2018

2,100

2,100

5,610

6,685

10,247

Flame King Holdings, LLC

Propane Tank and Accessories Distributor

Secured Debt

(9)

10/29/2021

7.50% (L+6.50%, Floor 1.00%)

10/31/2026

1,900

1,882

1,882

Secured Debt

(9)

10/29/2021

12.00% (L+11.00%, Floor 1.00%)

10/31/2026

5,300

5,153

5,153

Preferred Equity

(8)

10/29/2021

2,340

2,600

2,600

9,635

9,635

Freeport Financial Funds

(12) (13)

Investment Partnership

LP Interests (Freeport First Lien Loan Fund III LP)

(8) (24)

7/31/2015

6.0%

7,629

7,231

Gamber-Johnson Holdings, LLC

Manufacturer of Ruggedized Computer Mounting Systems

Secured Debt

(9)

6/24/2016

10.50% (L+8.50%, Floor 2.00%)

1/1/2025

5,400

5,384

5,400

Member Units

(8)

6/24/2016

2,261

4,424

11,279

9,808

16,679

6


Table of Contents

MSC INCOME FUND, INC.

Consolidated Schedule of Investments (Continued)

March 31, 2022

(dollars in thousands)

(Unaudited)

Portfolio Company (1) (20)

Business Description

Type of Investment (2) (3) (15)

Investment Date (22)

Shares/Units

Rate

Maturity Date

Principal (4)

Cost (4)

Fair Value (18)

GFG Group, LLC.

Grower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers

Secured Debt

3/31/2021

12.00%

3/31/2026

3,136

3,058

3,136

Preferred Member Units

(8)

3/31/2021

56

1,225

1,750

4,283

4,886

Gulf Publishing Holdings, LLC

Energy Industry Focused Media and Publishing

Secured Debt

(9) (17) (19)

9/29/2017

10.50% (5.25% Cash, 5.25% PIK) (L+9.50%, Floor 1.00%)

9/30/2020

64

64

64

Secured Debt

(17) (19)

4/29/2016

12.50% (6.25% Cash, 6.25% PIK)

4/29/2021

3,391

3,391

2,000

Member Units

4/29/2016

920

920

-

4,375

2,064

Harris Preston Fund Investments

(12) (13)

Investment Partnership

LP Interests (HPEP 3, L.P.)

(8) (24)

8/9/2017

8.2%

3,193

4,432

Kickhaefer Manufacturing Company, LLC

Precision Metal Parts Manufacturing

Secured Debt

10/31/2018

11.50%

10/31/2023

5,104

5,049

5,049

Secured Debt

10/31/2018

9.00%

10/31/2048

977

967

967

Member Units

10/31/2018

145

3,060

3,060

Member Units

(8) (23)

10/31/2018

200

248

615

9,324

9,691

Market Force Information, LLC

Provider of Customer Experience Management Services

Secured Debt

(14) (19)

7/28/2017

12.00% PIK

7/28/2023

6,520

6,466

2,237

Member Units

7/28/2017

185,980

4,160

-

10,626

2,237

MH Corbin Holding LLC

Manufacturer and Distributor of Traffic Safety Products

Secured Debt

8/31/2015

13.00%

3/31/2022

2,043

2,043

1,092

Preferred Member Units

3/15/2019

16,500

1,100

-

Preferred Member Units

9/1/2015

1,000

1,500

-

4,643

1,092

Mystic Logistics Holdings, LLC

Logistics and Distribution Services Provider for Large Volume Mailers

Secured Debt

8/18/2014

10.00%

1/31/2024

1,524

1,524

1,524

Common Stock

(8)

8/18/2014

1,468

680

2,764

2,204

4,288

NexRev LLC

Provider of Energy Efficiency Products & Services

Secured Debt

2/28/2018

11.00%

2/28/2025

4,000

3,982

3,462

Preferred Member Units

(8)

2/28/2018

21,600,000

1,720

670

5,702

4,132

NuStep, LLC

Designer, Manufacturer and Distributor of Fitness Equipment

Secured Debt

(9)

1/31/2017

7.50% (L+6.50%, Floor 1.00%)

1/31/2025

730

729

730

Secured Debt

1/31/2017

12.00%

1/31/2025

4,310

4,308

4,310

Preferred Member Units

1/31/2017

102

2,550

3,379

7,587

8,419

Oneliance, LLC

Construction Cleaning Company

Secured Debt

(9)

8/6/2021

12.00% (L+11.00%, Floor 1.00%)

8/6/2026

1,400

1,375

1,375

Preferred Stock

8/6/2021

264

264

264

1,639

1,639

7


Table of Contents

MSC INCOME FUND, INC.

Consolidated Schedule of Investments (Continued)

March 31, 2022

(dollars in thousands)

(Unaudited)

Portfolio Company (1) (20)

Business Description

Type of Investment (2) (3) (15)

Investment Date (22)

Shares/Units

Rate

Maturity Date

Principal (4)

Cost (4)

Fair Value (18)

Orttech Holdings, LLC

Distributor of Industrial Clutches, Brakes and Other Components

Secured Debt

(9)

7/30/2021

12.00% (L+11.00%, Floor 1.00%)

7/31/2026

6,094

5,984

5,984

Preferred Stock

(8) (23)

7/30/2021

2,500

2,500

2,500

8,484

8,484

Robbins Bros. Jewelry, Inc.

Bridal Jewelry Retailer

Secured Debt

(9)

12/15/2021

12.00% (L+11.00%, Floor 1.00%)

12/15/2026

4,040

3,955

3,955

Preferred Equity

12/15/2021

1,230

1,230

1,230

5,185

5,185

SI East, LLC

Rigid Industrial Packaging Manufacturing

Secured Debt

8/31/2018

10.25%

8/31/2023

21,848

21,684

21,848

Preferred Member Units

(8)

8/31/2018

52

406

4,180

22,090

26,028

Sonic Systems International, LLC

(10)

Nuclear Power Staffing Services

Secured Debt

(9)

8/20/2021

8.50% (L+7.50%, Floor 1.00%)

8/20/2026

14,000

13,752

13,752

Common Stock

8/20/2021

9,191

1,250

1,180

15,002

14,932

Tedder Industries, LLC

Manufacturer of Firearm Holsters and Accessories

Secured Debt

8/31/2018

12.00%

8/31/2022

4,200

4,170

4,170

Preferred Member Units

8/31/2018

126

2,145

2,145

6,315

6,315

Trantech Radiator Topco, LLC

Transformer Cooling Products and Services

Secured Debt

5/31/2019

12.00%

5/31/2024

2,080

2,043

2,080

Common Stock

(8)

5/31/2019

154

1,164

2,160

3,207

4,240

VVS Holdco LLC

Omnichannel Retailer of Animal Health Products

Secured Debt

(9) (23)

12/1/2021

7.00% (L+6.00%, Floor 1.00%)

12/1/2026

200

193

193

Secured Debt

(23)

12/1/2021

11.50%

12/1/2026

7,600

7,386

7,386

Preferred Equity

(8) (23)

12/1/2021

2,960

2,960

2,960

10,539

10,539

Subtotal Affiliate Investments (39.1% of net assets at fair value)

$

216,740

$

241,000

8


Table of Contents

MSC INCOME FUND, INC.

Consolidated Schedule of Investments (Continued)

March 31, 2022

(dollars in thousands)

(Unaudited)

Portfolio Company (1) (20)

Business Description

Type of Investment (2) (3) (15)

Investment Date (22)

Shares/Units

Rate (30)

Maturity Date

Principal (4)

Cost (4)

Fair Value (18)

Non-Control/Non-Affiliate Investments (7)

AAC Holdings, Inc.

(11)

Substance Abuse Treatment Service Provider

Secured Debt

(19)

12/11/2020

18.00% (10.00% Cash, 8.00% PIK)

6/25/2025

$

3,710

$

3,437

$

3,580

Common Stock

12/11/2020

593,927

3,148

2,079

Warrants

(27)

12/11/2020

197,717

12/11/2025

692

6,585

6,351

Adams Publishing Group, LLC

(10)

Local Newspaper Operator

Secured Debt

(9)

3/11/2022

8.50% (L+7.50%, Floor 1.00%)

3/11/2027

3,059

3,051

3,051

ADS Tactical, Inc.

(11)

Value-Added Logistics and Supply Chain Provider to the Defense Industry

Secured Debt

(9)

3/29/2021

6.75% (L+5.75%, Floor 1.00%)

3/19/2026

9,500

9,337

9,112

American Health Staffing Group, Inc.

(10)

Healthcare Temporary Staffing

Secured Debt

(9)

11/19/2021

7.00% (L+6.00%, Floor 1.00%)

11/19/2026

8,333

8,240

8,240