MSC Income Fund, Inc. (MSIF) completed a $12.7 million investment in United Business Mail (UBM) ParentCo, LLC, a provider of marketing‑mail commingle services. The transaction combines a first‑lien, senior‑secured term loan with a minority equity stake, allowing UBM to merge with Mystic Logistics Holdings, LLC, a MSC Income portfolio company that specializes in marketing‑mail consolidation.
The deal also marks the full exit of MSC Income’s debt and equity positions in Mystic Logistics. The fund realized a $6.0 million gain on the equity sale and had previously collected $5.5 million in dividends from the investment that began in August 2014 with a $2.5 million term loan and a $0.7 million equity stake. The $12.7 million now deployed in UBM represents a redeployment of capital into a new debt‑equity structure that preserves exposure to the logistics sector while shifting the fund’s risk profile toward secured lending.
The transaction aligns with MSC Income’s stated strategy to concentrate on private‑loan opportunities and to streamline its legacy lower‑middle‑market portfolio. By exiting a mature equity investment and redeploying the proceeds into a secured loan, the fund reduces equity concentration in a single company and positions itself to capture higher yields from private debt. The merger of UBM and Mystic Logistics is expected to create operational synergies in marketing‑mail logistics, expanding UBM’s service footprint and enhancing its revenue base.
MSIF’s Q3 2025 results showed a return on equity of 14.6 percent and a net investment income that exceeded analyst expectations, reflecting disciplined capital deployment and strong portfolio performance. The fund’s portfolio is currently weighted heavily toward private loans, with equity exposure concentrated in a few high‑growth companies. The $12.7 million investment in UBM adds a new private‑loan asset that complements the fund’s existing debt holdings and supports its goal of generating consistent income and capital appreciation.
Chief Executive Officer Dwayne L. Hyzak said the move demonstrates MSC Income’s commitment to its private‑loan focus and its ability to generate attractive returns from both debt and equity. He noted that the fund’s transition to a private‑loan‑only strategy is expected to increase net investment income and shareholder dividends, while the UBM investment provides a platform for continued growth in the marketing‑mail logistics market.
The transaction comes at a time when the logistics sector faces modest headwinds from rising transportation costs, but the combined UBM‑Mystic entity is positioned to benefit from growing demand for integrated marketing‑mail services. MSC Income’s disciplined approach to capital allocation and its focus on secured lending are expected to mitigate exposure to market volatility while delivering stable income streams to investors.
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