MidCap Financial completes mergers with Apollo Senior Floating, Tactical Income

MidCap Financial Investment (MFIC) has completed its previously announced mergers with Apollo Senior Floating Rate Fund (AFT) and Apollo Tactical Income Fund (AIF). The combined company will operate as MidCap Financial Investment Corporation and will continue to trade on the Nasdaq Global Select Market under the ticker symbol “MFIC.” In connection with the closing of the mergers, former AFT stockholders will receive 0.9547 shares of MFIC common stock for each share of AFT common stock they held prior to the closing based on the final exchange ratio, subject to adjustments for cash payable in lieu of fractional shares. In addition, former AIF stockholders will receive 0.9441 shares of MFIC common stock for each share of AIF common stock they held prior to the closing based on the final exchange ratio, subject to adjustments for cash payable in lieu of fractional shares. The final exchange ratios were based on MFIC’s net asset value per share of $15.43, AFT’s NAV per share of $14.73, and AIF’s NAV per share of $14.57, each calculated as of July 19, 2024. As of June 30, 2024, MFIC’s NAV per share was $15.38, AFT’s NAV per share was $14.89, and AIF’s NAV per share was $14.77. MFIC’s NAV per share as of June 30, 2024 reflects net investment income of $0.45 per share for the June quarter and certain adjustments to the fair value of its investment portfolio. The change in MFIC’s NAV per share between June 30, 2024 and July 19, 2024 was primarily the result of the accrual of net income. The change in the CEFs’ NAVs per share between June 30, 2024 and July 19, 2024 was primarily the result of the accrual of net income and the pre-merger distributions that were declared and paid to their respective stockholders. As a result of the mergers, legacy MFIC stockholders, former AFT stockholders, and former AIF stockholders own approximately 69.6%, 15.8%, and 14.6%, respectively, of the combined company. Each merger is expected to qualify as a tax-free reorganization for federal tax purposes.