Item 1.02. Termination of a Material Definitive Agreement.
Since 2017, Monroe Capital Corporation (the "Company") has co-invested with Life Insurance Company of the Southwest ("LSW") in senior secured loans through MRCC Senior Loan Fund I, LLC ("SLF"). As previously disclosed, the Company and LSW agreed to work toward a wind-down of SLF in advance of the proposed merger between the Company and Horizon Technology Finance Corporation, and during the quarter ended September 30, 2025, SLF began actively selling portfolio investments.
On December 10, 2025, SLF's Board of Managers, pursuant to SLF's Limited Liability Company Agreement, dated October 31, 2017 (as amended, the "LLC Agreement"), adopted resolutions approving the wind-down and dissolution of SLF. SLF anticipates an orderly liquidation of SLF's remaining portfolio investments and other non-cash assets to occur on or before December 31, 2025.
The Company does not expect to incur any early termination penalties or fees in connection with the dissolution and related termination of the LLC Agreement and does not expect to have any material continuing obligations thereunder following termination.