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Based in Chicago, IL, Monroe Capital (MRCC) scheduled a $65 million IPO with a market capitalization of $65 million at a price range mid-point of $15, for Thursday, October 25, 2012.

Five other IPOs are scheduled for the week of October 22. The full IPO calendar is available here.

N-2A filed October 15, 2012.

Manager, Joint Managers: Baird; William Blair; Janney Montgomery Scott.
Co Managers: BB&T Capital Markets; Stephens; Ladenburg Thalmann; Wunderlich Securities.

SUMMARY
MRCC is a Business Development Company -- BDC -- which provides loans to smaller companies. The initial loan portfolio of $68 million includes 16 loans.

The projected payout is 9%

CONCLUSION
Avoid, too small, selling 100% of the the company on the IPO. 16 loans does not a business make.

BUSINESS
MRCC is a specialty finance company focused on providing financing primarily to lower middle-market companies in the United States and Canada. MRCC was formed as a Maryland corporation on February 9, 2011.

Immediately prior to MRCC's election to be regulated as a business development company, MRCC will purchase an initial portfolio of loans for $67.6 million from two funds managed by Monroe Capital.

This portfolio is comprised of 16 loans that are either senior secured debt, junior secured debt or unitranche secured debt (a combination of senior secured debt and junior secured debt under the same facility) obligations of companies that MRCC believes will provide a sound foundation for its business.

DISTRIBUTIONS
MRCC intends to pay a distribution of $0.34 per share (assuming an initial offering price of our common stock of $15.00 per share) for the quarter ending December 31, 2012, representing a 9% annualized yield.

USE OF PROCEEDS
MRCC expects to net $64 million from its IPO.

Proceeds are allocated to pay debt.

Disclaimer: This MRCC IPO report is based on a reading and analysis of MRCC's S-1 filing which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: Monroe Capital IPO