Midcap Financial Investment Corporation · NASDAQ:MFIC
Midcap Financial Investment — Q2 2023 Earnings Presentation
19 slides from Midcap Financial Investment's earnings presentation, Aug 2, 2023
Slide 1: Financial Results for the Quarter Ended June 30, 2023
Financial Results for the Quarter Ended June 30, 2023 MidCap Financial Investment Corporation August 2, 2023 Unless otherwise noted, information as of June 30, 2023. Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Managem
Slide 2: Disclaimers, Definitions and Important Notes
Disclaimers, Definitions and Important Notes Forward-Looking Statements We make forward-looking statements in this presentation and other filings we make with the Securities and Exchange Commission (“SEC”) within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E o
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results Results for Quarter ended June 30, 2023 and other recent highlights Results for Quarter Ended June 30, 2023 and Other Recent Highlights Net investment income for the quarter ended June 30, 2023 was $28.9 million, or $0.44 per share, compared to $29.5 million, or $0.45
Slide 4: Investment Portfolio as of June 30, 2023
Investment Portfolio as of June 30, 2023 Corporate Lending and Other 3 Merx Aviation $2.2 billion or 92.0% of portfolio $193 million or 8.0% of portfolio Weighted Average Yield 2 11.7% 42 aircraft (40 narrowbody, 2 widebody) First Lien % 95% 9 aircraft types Floating Rate % 100% 22 lessees in 16 cou
Slide 5: Financial Highlights
Financial Highlights ($ in thousands, except per share data) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Financial Highlights Net investment income per share $0.44 $0.45 $0.43 $0.35 $0.37 Net realized and change in unrealized gains (losses) from investments and ($0.05) $0.01 ($0.41) ($0.10) ($0.28) foreign c
Slide 6: Portfolio Highlights
Portfolio Highlights ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Portfolio by Strategy, at fair value ($) Leveraged lending $1,830,834 $1,803,762 $1,733,659 $1,759,078 $1,748,935 Life sciences 189,687 204,036 213,278 195,816 219,669 Asset based, franchise finance and lender finance 147,661 1
Slide 7: Corporate Lending Portfolio Detail
Corporate Lending Portfolio Detail1 ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Portfolio by Asset Class, measured at fair value ($) First Lien $2,050,105 $2,015,709 $1,965,800 $1,976,115 $2,009,467 Second lien 68,441 69,357 70,919 85,410 89,951 Other 49,636 50,852 47,994 50,111 41,454 Total
Slide 8: Corporate Lending Commitments
Corporate Lending Commitments1 ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Gross Commitments Made by Asset Class First lien $78,733 $110,020 $73,178 $20,486 $194,611 Second lien and Other 0 311 90 367 30 Gross commitments made $78,733 $110,331 $73,269 $20,853 $194,641 Gross Commitments Made
Slide 9: Funded Investment Activity
Funded Investment Activity ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Fundings, excluding Merx Aviation and Revolvers Gross fundings $72,828 $105,792 $104,551 $66,719 $165,471 Sales and syndications 0 0 (27,500) 0 0 Repayments (57,666) (54,151) (113,460) (139,652) (121,199) Net fundings, ex
Slide 10: Credit Quality
Credit Quality As of June 30, 2023, 1.0% of total investments at amortized cost, or 0.3% of total investments at fair value, were on non-accrual status ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Investments on Non-Accrual Status Non-accrual investments at amortized cost $25,822 $25,822 $49,
Slide 11: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in thousands, except per share data) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Per Share NAV, beginning of period $15.18 $15.10 $15.45 $15.52 $15.79 Net investment income 0.44 0.45 0.43 0.35 0.37 Net realized and change in unrealized gains (losses) (0.05) 0.01 (0.41) (0.10) (
Slide 12: Quarterly Operating Results
Quarterly Operating Results ($ in thousands, except per share data) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Total investment income Interest income (excluding PIK) $66,655 $64,787 $61,543 $56,318 $51,597 Dividend income 115 23 191 252 336 PIK interest income 812 784 851 855 956 Other income 1,034 2,184 7
Slide 13: Quarterly Balance Sheet
Quarterly Balance Sheet ($ in thousands, except share and per share data) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Assets Investments at fair value $2,409,287 $2,385,211 $2,398,120 $2,463,545 $2,549,503 Cash and cash equivalents (including foreign currencies) 50,197 70,063 87,091 61,736 35,462 Interest re
Slide 14: Funding Sources as of June 30, 2023
Funding Sources as of June 30, 2023 Debt Facilities ($ in thousands) Principal Amount Debt Issued/ Final Maturity Interest Outstanding Amended Date Rate Senior Secured Facility ($1.705 billion)1 4/19/2023 4/19/2028 SOFR + 187.5 +10bps4 $1,011,127 2025 Notes 3/3/2015 3/3/2025 5.25% 350,000 2026 Notes
Slide 15: Interest Rate Exposure as of June 30, 2023
Interest Rate Exposure as of June 30, 2023 1 Investment Portfolio by Interest Rate Type Funding Sources by Interest Rate Type Variable rate assets Fixed rate debt 2% Fixed rate assets 19% 4% Non yielding and non-accrual assets 8% Common equity 40% Floating rate debt Floating rate 41% assets 86% Floa
Slide 16: Realized and Change in Unrealized Gains (Losses) by Strategy
Realized and Change in Unrealized Gains (Losses) by Strategy ($ in millions) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Leveraged lending ($0.5) $1.0 ($13.6) ($3.7) ($9.4) Life sciences ($2.0) $0.1 $1.3 ($0.7) ($0.6) Franchise Finance $0.1 ($0.1) ($0.1) $0.0 ($0.1) Asset based and Lender finance $1.8 $0.2 (
Slide 17: Portfolio by Industry
Portfolio by Industry1 Portfolio Diversification High Tech Industries 18.6% Healthcare & Pharmaceuticals 18.3% Business Services 12.1% Aviation and Consumer Transport 8.2% Consumer Services 7.7% Beverage, Food & Tobacco 4.3% Insurance 3.5% Consumer Goods – Non-durable 3.4% Transportation – Cargo, Di
Slide 18: Outstanding Commitments
Outstanding Commitments ($ in thousands) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Revolver Obligations and Bridge Loans Funded 1 $88,357 $100,566 $106,919 $117,490 $108,368 Unfunded 1, 2 181,088 182,462 196,408 192,653 211,667 Par $269,445 $283,029 $303,327 $310,143 $320,035 Unfunded Revolver and Bridge L
Slide 19: Contact Information
Contact Information Elizabeth Besen Gregory W. Hunt Investor Relations Manager Chief Financial Officer and Treasurer Phone: (212) 822-0625 Phone: (212) 822-0655 Email: ebesen@apollo.com Email: ghunt@apollo.com 19
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