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Subsequent Events
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
The Company has evaluated subsequent events through August 9, 2024, the date on which the consolidated financial statements were issued.
Distributions: On July 5, 2024, the Board declared the following regular distributions:
Record DatePayment DateAmount Per Share
July 15, 2024September 30, 2024$0.09
August 15, 2024September 30, 20240.09
September 16, 2024September 30, 20240.09
Total regular distributions declared$0.27
Additionally, on July 5, 2024, the Board also declared a supplemental dividend of $0.02 per share, to stockholders of record as of the close of business on July 15, 2024, payable on September 30, 2024.
SPV IV Credit Facility: On July 11, 2024, the Company entered into a senior secured revolving credit facility (the “SPV IV Credit Facility”) with Capital One, National Association, as administrative agent, through a special purpose wholly-owned subsidiary, MC Income Plus Financing SPV IV LLC (“SPV IV”). The SPV IV Credit Facility allows the Company, through SPV IV, to borrow an aggregate principal amount of up to $350,000, and includes an accordion feature which allows the Company, under certain circumstances, to increase the total size of the facility to $450,000 upon request to the administrative agent and with consent of the lenders. Under the terms of the SPV IV Credit Facility, SPV IV is permitted to reinvest available cash and make new borrowings under the SPV IV Credit Facility through July 11, 2027. The SPV IV Credit Facility matures on July 11, 2029, unless sooner terminated in accordance with its terms. Borrowings under the SPV IV Credit Facility bear interest at SOFR (subject to a SOFR minimum of 0.00%) plus an applicable margin rate of 2.15% per annum. Advances under the SPV IV Credit Facility are subject to availability governed by a borrowing base comprised of eligible loan assets, which receive advance rates under the SPV IV Credit Facility of up to 75%. Undrawn capacity under the SPV IV Credit Facility is subject to a non-usage fee of between 0.25% and 0.75% per annum on such undrawn capacity, depending on the level of usage of the SPV IV Credit Facility.
The SPV IV Credit Facility contains representations and warranties and affirmative and negative covenants customary for secured financings of this type. The SPV IV Credit Facility also contains customary events of default (subject to certain grace periods, as applicable), including but not limited to the nonpayment of principal, interest or fees; breach of covenants; voluntary or involuntary bankruptcy proceedings; and change of control of SPV IV.
Borrowing under the SPV IV Credit Facility remains subject to the leverage restrictions contained in the 1940 Act.
Amendment to SPV Credit Facility: On July 15, 2024, the Company entered into an amendment (the “Sixth Credit Facility Amendment”) to the SPV Credit Facility. The Sixth Credit Facility Amendment amended the SPV Credit Facility to, among other things, reduce the interest rate applicable to the borrowings to SOFR plus 2.40% and to remove the SOFR credit spread adjustment as a component of pricing thereunder. Additionally, the Sixth Credit Facility Amendment amended the SPV Credit Facility to extend the reinvestment period under the SPV Credit Facility to July 16, 2027 and the final maturity date under the SPV Credit Facility to July 16, 2029. The terms of the Sixth Credit Facility Amendment became effective as of July 15, 2024.
2029 Notes: On July 24, 2024, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) governing the issuance of $156,000 in aggregate principal amount of Series C Notes, due July 24, 2029, with a fixed interest rate of 7.47% per year and $48,000 in aggregate principal amount of Series D Notes, due September 18, 2029, with a fixed interest rate of 7.47% per year (collectively, the “2029 Notes”), to institutional accredited investors (as defined in Regulation D under the Securities Act) in a private placement. The interest rates on the 2029 notes may be increased in the event a Below Investment Grade Event (as defined in the Note Purchase Agreement) occurs. The 2029 Notes are guaranteed by various subsidiaries of the Company.
The closing for the Series C Notes occurred on July 24, 2024, and the closing for the Series D Notes shall occur on or about September 18, 2024. The 2029 Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option, upon notice, in an amount not less than 10% of the aggregate principal amount of 2029 Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Prepayment Settlement Amount (as defined in the Note Purchase Agreement) applicable to 2029 Notes determined for the prepayment date with respect to such principal amount. In addition, the Company is obligated to offer to prepay 100% of the principal amount of 2029 Notes, together with interest on such 2029 Notes accrued to, but excluding, the date of prepayment. The 2029 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.