MidCap Financial announced a $3.1 billion debt issuance that will be funded on January 15 2026. The package consists of senior unsecured notes and junior subordinated notes, with the senior portion representing the majority of the issuance.
The company says the new debt will reinforce its balance sheet, increase financial flexibility, and lower long‑term funding costs. While MidCap already holds investment‑grade ratings—BBB‑ from KBRA and BB‑ from S&P—the transaction is expected to affirm and potentially improve those ratings, positioning the firm for more favorable borrowing terms in the future.
The senior unsecured notes will carry a coupon that reflects the current market environment for investment‑grade floating‑rate debt, while the junior subordinated notes offer a higher yield to compensate for the additional risk. The exact split between the two components is not disclosed, but the senior notes are expected to comprise the bulk of the $3.1 billion package.
David Moore, Co‑Founder and Vice Chairman, described the deal as a “transformational moment” that “fundamentally reshapes our balance sheet and accelerates our evolution into an investment‑grade institution.” Chief Executive Officer Josh Groman added that the financing will “fuel our continued expansion as a leading, diversified private credit platform.”
By securing this capital at investment‑grade terms, MidCap positions itself to pursue growth opportunities, support its portfolio of first‑lien floating‑rate loans, and potentially fund future acquisitions or strategic initiatives. The lower cost of capital and enhanced credit profile are expected to improve the company’s ability to deploy capital efficiently and maintain a strong competitive stance in the private credit market.
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