🧾 What This Document Is

This is an 8-K filing, which is a report companies use to announce major news to investors. In this case, Monroe Capital Corporation (MRCC) is announcing the final cash payout it will make to its shareholders before it merges with another company and ceases to exist as an independent entity.

👉 Why it matters: If you own MRCC stock, this document tells you the crucial details about the final payment you'll receive, when you need to own the shares to get it, and what happens next.

🏢 What The Company Does

Monroe Capital Corporation is a "Business Development Company" (BDC). In simple terms, it's a type of investment fund that is publicly traded. It raises money from investors and uses that money to provide loans (like senior, junior, and unitranche debt) to mid-sized companies in the United States. It earns income from the interest on these loans.

👉 Why it matters: BDCs are often held for their dividend income. This company is now at the end of its life as a standalone business due to its pending merger.

💰 The Final Distribution Details

This is the core announcement. The Board has declared a final cash distribution. The total amount will be the sum of:

1. All the company's earned but undistributed profits and gains up to the merger date.
2. A specific $13.0 million payment. This extra cash comes from a separate, pre-merger sale of assets to another entity called Monroe Capital Income Plus Corporation (MCIP).

👉 Why it matters: Shareholders will get one last, combined cash payment. The final dollar amount isn't set yet but will be announced before the merger closes.

📅 Key Dates & Requirements

The timeline is very important for shareholders:

• Record Date: You must be listed as a shareholder of record at the close of business on April 10, 2026, to be eligible.
• Expected Closing Date: The asset sale and the final merger are both targeted to happen on April 14, 2026.
• Critical Rule: You must continue to hold your MRCC shares through the closing date (April 14) to receive the final distribution. Nasdaq has confirmed that if you sell your shares before or on the closing day, you also sell away your right to this final payout.

👉 Why it matters: If you plan to sell your MRCC stock, doing so before the merger closes means the new buyer will get this final dividend, not you.

🔄 Special Plan Update

MRCC has a Dividend Reinvestment Plan (DRIP) where shareholders can automatically use their dividends to buy more shares. For this final distribution only, the DRIP will not apply. Every single shareholder, even those enrolled in DRIP, will receive the payment in cash.

👉 Why it matters: There will be no new shares issued as part of this final payout. It's a pure cash exit for all investors.

🧩 What's Next & The Bigger Picture

The entire process hinges on two events happening:

1. Asset Sale: The sale of assets to MCIP, generating the $13 million.
2. Merger: The acquisition of MRCC by Horizon Technology Finance Corporation (HRZN). Both are expected to close on April 14, 2026. Once the merger is complete, MRCC will be dissolved into HRZN and will no longer trade on Nasdaq under the symbol "MRCC."

👉 Why it matters: This filing is the final major communication from MRCC as an independent company. It's the wind-down plan.

⚖️ Strengths (👍) and Risks (⚠️)

• 👍 Clarity & Certainty: The process is well-defined with specific dates and clear rules for shareholders. The $13 million from the asset sale provides a known cash boost to the final distribution.
• 👍 Simplicity: The suspension of the DRIP simplifies the final payment, ensuring everyone gets cash.
• ⚠️ Contingency Risk: The final distribution amount and the entire plan are still contingent on the successful completion of the asset sale and merger.
• ⚠️ Timing Risk: Shareholders must be vigilant about the dates. Selling even one day too early could mean missing the final payout.

🧠 The Analogy

Think of MRCC as a closing restaurant. It's announcing a "final chef's tasting menu" (the distribution) that will be served on a specific night (payment date). To get it, you need to have had a reservation booked by the cutoff date (record date) and you must stay seated in the restaurant until the end of the meal (merger closing). If you leave early, your seat—and your meal—goes to whoever takes it next.

📇 Key Contacts & People

• Investor Relations: Mick Solimene, Chief Financial Officer & Chief Investment Officer, [email protected], (312) 598-8401
• Media Relations: Daniel Abramson, [email protected], (857) 305-8441

🧩 Final Takeaway

MRCC is paying its shareholders one last cash distribution, sourced from recent profits and a $13 million asset sale, as it completes its merger with HRZN. You must hold your shares through the merger closing on April 14, 2026, to receive this final cash payment.