MidCap Financial Completes Mergers with Apollo Funds, Launches as Combined Entity on Nasdaq

MidCap Financial Investment Corporation, also known as MFIC, has completed its mergers with Apollo Senior Floating Rate Fund Inc. (AFT) and Apollo Tactical Income Fund Inc. (AIF). This announcement was made on July 22, 2024, emphasizing a significant step in expanding its investment footprint. After the merger, the new combined company will trade under the Nasdaq ticker symbol “MFIC.”

Shareholders of AFT and AIF received new shares in MFIC based on predetermined exchange ratios. For each AFT share they held, stockholders received 0.9547 shares of MFIC, while former AIF stockholders received 0.9441 shares for each share of AIF they held. These ratios were determined based on each fund’s net asset value (NAV) as of July 19, 2024. The combined share ownership in MFIC will approximately consist of 69.6% legacy MFIC stockholders, 15.8% from AFT, and 14.6% from AIF, marking a new era for the company.

Additionally, in connection with the closing of the mergers, MFIC’s board declared a cash distribution of $0.20 per share to its stockholders, scheduled for payment on August 15, 2024. Financial advisors for the mergers included Lazard for MFIC and Keefe, Bruyette & Woods for the CEFs. The mergers are expected to be tax-free for shareholders, further adding a favorable aspect to this strategic development in MidCap Financial’s operations.