MSC Income Fund Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

DEBT (Tables)

12 Months Ended

Dec. 31, 2023

Summary of MSC Income Fund’s debt as of December 31, 2023 is as follows:


	Outstanding Balance		Unamortized Debt Issuance Costs (1)		Recorded Value		Estimated Fair Value (2)
	(dollars in thousands)

SPV Facility	$	203,688	$	—	$	203,688	$	203,688

Series A Notes	150,000		(845)		149,155		141,531
Corporate Facility	132,000		—		132,000		132,000
Total Debt	$	485,688	$	(845)	$	484,843	$	477,219

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(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the Series A Notes are reflected as a contra-liability to the Series A Notes on the Consolidated Balance Sheets.

(2)Estimated fair value for outstanding debt if MSC Income Fund had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of MSC Income Fund’s debt in Note B.9. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.

Summary of MSC Income Fund’s debt as of December 31, 2022 is as follows:


	Outstanding Balance		Unamortized Debt Issuance Costs (1)		Recorded Value		Estimated Fair Value (2)
	(dollars in thousands)

SPV Facility	$	223,688	$	—	$	223,688	$	223,688

Series A Notes	150,000		(1,144)		148,856		132,955
Corporate Facility	98,000		—		98,000		98,000
Total Debt	$	471,688	$	(1,144)	$	470,544	$	454,643

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Schedule of Interest Expense

Summarized interest expense for the years ended December 31, 2023, 2022 and 2021 is as follows:


	Year Ended December 31,
		2023		2022		2021
		(dollars in thousands)
SPV Facility		$	22,184	$	13,856	$	8,255
Series A Notes		6,358		6,167		653
Corporate Facility		7,916		4,400		2,681
Deutsche Bank Credit Facility(1)		—		—		1,045
Main Street Term Loan(2)		—		—		1,835
Total Interest Expense		$	36,458	$	24,423	$	14,469

_____________________________

(1)Deutsche Bank Credit Facility was fully repaid and extinguished on February 3, 2021.

(2)Main Street Term Loan was fully repaid and extinguished on October 22, 2021.

Schedule of Contractual Payment Obligations

A summary of the Company’s contractual payment obligations for the repayment of outstanding indebtedness at December 31, 2023 is as follows:


	2024		2025		2026		2027		2028		Thereafter		Total
	(dollars in thousands)
SPV Facility(1)	$	—	$	—	$	—	$	—	$	203,688	$	—	$	203,688
Series A Notes(2)	—		—		150,000		—		—		—		150,000
Corporate Facility(3)	—		—		132,000		—		—		—		132,000
Total	$	—	$	—	$	282,000	$	—	$	203,688	$	—	$	485,688

_____________________________

(1)At December 31, 2023, MSIF Funding had $96.3 million of undrawn lender commitments under the SPV Facility; however, MSIF Funding’s borrowing ability is limited by leverage and borrowing base restrictions imposed by the SPV Facility and the 1940 Act, as discussed above.

(2)MSC Income Fund issued $77.5 million of Series A Notes upon entering into the Note Purchase Agreement on October 22, 2021 and an additional $72.5 million on January 21, 2022.

(3)At December 31, 2023, MSC Income Fund had $33.0 million of undrawn lender commitments under the Corporate Facility; however, MSC Income Fund’s borrowing ability is limited by leverage and borrowing base restrictions imposed by the Corporate Facility and the 1940 Act, as discussed above.