MONROE CAPITAL Corp 8-K

What Happened

• Monroe Capital Corporation announced on January 14, 2026 that it entered into Amendment No. 9 to its Second Amended and Restated Senior Secured Revolving Credit Agreement with certain lenders and ING Capital LLC (administrative agent). The Amendment creates a temporary "Borrowing Base Flex Period," raises interest margins, adjusts borrowing-base mechanics and prepayment terms, and adds financing tied to the Company’s 4.75% Notes due 2026 (CUSIP 610335 AB7).
• On January 15, 2026 the Company completed the redemption of all outstanding 4.75% Notes due 2026 in the aggregate principal amount of $130,000,000 at 100% of principal plus accrued interest; no 2026 Notes remain outstanding.

Key Details

• Amendment effective date: January 14, 2026; redemption completed January 15, 2026.
• 2026 Notes redeemed: $130,000,000 principal at 100% of principal plus accrued interest.
• Interest margin increase: +0.75% (now 2.375% for ABR loans; 3.375% for SOFR/Eurocurrency/RFR loans).
• Introduces a Borrowing Base Flex Period that changes borrowing-base calculations, concentration limits and requires 100% prepayment of specified proceeds during that period (subject to customary exceptions).
• Credit Facility remains secured by substantially all of the Company’s assets and continues to include customary covenants (asset coverage, senior debt coverage, net worth, limits on additional indebtedness), and default/acceleration provisions.

Why It Matters

• The Amendment restructures the Company’s bank financing and establishes steps to refinance and eliminate the 2026 notes, which the Company has now redeemed in full—removing $130M of that specific note liability.
• However, the Amendment increases borrowing costs (higher interest margins) and tightens prepayment/borrowing-base mechanics during the temporary Flex Period, which can affect Monroe’s liquidity and borrowing capacity while those terms remain in effect.
• Investors should note the Company remains subject to customary covenants and default provisions under the Credit Facility; breaches could accelerate repayment obligations and materially affect liquidity and financial condition.