Overview

* Monroe Capital ( MRCC ) Q2 net investment income falls to $3.3 mln, $0.15 per share

* Net asset value declines to $179.6 mln, $8.29 per share

* Co announces merger with Horizon Technology Finance, pending approvals

Outlook

* Monroe Capital ( MRCC ) expects merger with HRZN to unlock shareholder value

* Company anticipates merger synergies and operating leverage benefits

* Monroe Capital ( MRCC ) sees long-term upside from HRZN merger participation

Result Drivers

* NET INVESTMENT INCOME DECLINE - Decrease in net investment income due to lower average invested assets and effective rates

* NAV DECREASE - NAV fell due to net unrealized losses and dividends exceeding net investment income

* LEVERAGE REDUCTION - Debt-to-equity leverage decreased as proceeds from sales and paydowns reduced revolving credit facility balance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $179.60

Asset mln

Value

Q2 Net $8.29

Asset

Value

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the closed end funds peer group is "hold."

* Wall Street's median 12-month price target for Monroe Capital Corp ( MRCC ) is $8.25, about 17% above its August 8 closing price of $6.85

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)