Monroe Capital Income Plus Corp 8-K

What Happened

• Monroe Capital Income Plus Corporation filed an 8-K reporting that on December 18, 2025 its indirect, wholly owned consolidated subsidiary Monroe Capital Income Plus ABS Funding III, LLC completed a $500,000,000 asset-backed securitization.
• The transaction issued $320,000,000 of Class A Senior Secured Notes (interest = benchmark + 2.00% p.a.), $55,000,000 of Class B Senior Secured Notes (4.00% p.a.), $40,000,000 of Class C Senior Secured Notes (7.00% p.a.) and $85,000,000 of non‑interest bearing Subordinated Notes. The Secured notes were privately placed with Jefferies LLC as initial purchaser and NatWest Markets Securities Inc. as placement agent. All Subordinated Notes were retained by the Company to satisfy risk‑retention requirements.

Key Details

• Closing date: December 18, 2025; 2025 Notes maturity: December 18, 2035.
• Total proceeds used to buy portfolio company investments (Collateral Obligations) from the Company and affiliates under a Loan Sale and Contribution Agreement.
• Collateral: diversified portfolio of primarily middle‑market loans, recurring‑revenue loans and participation interests managed by Monroe Capital BDC Advisors, LLC (the collateral manager), which irrevocably waived its management fee.
• Through December 18, 2027, principal collections on the collateral may be reinvested to purchase new collateral (subject to transaction documents), allowing the issuer to maintain initial leverage.

Why It Matters

• This is a material financing and funding event: the securitization raises $500M of secured and subordinated debt and transfers certain portfolio assets to a consolidated subsidiary. For investors, it affects the Company’s capital structure, leverage and asset coverage because the issuer is consolidated by the Company and the financing is subject to the Company’s asset‑coverage requirement.
• The Company retained the subordinated notes to meet regulatory risk‑retention rules, so it keeps first‑loss exposure on the securitization. The secured notes carry stated interest rates and contain customary covenants and events of default, which create ongoing obligations for the issuing subsidiary.
• The 8‑K discloses transaction documents (indenture, note purchase agreement, collateral management agreement, loan sale agreement) filed as exhibits; the notes were privately placed and are not registered under the Securities Act.