MSC Income: Secondary Price Discovery

Price discovery is a dynamic process, especially in illiquid markets, and large transactions with narrow bid/ask spreads are rare. Interestingly, this week MSC Income Fund sellers accepted and rejected the same price just days apart (as evidenced by the chart below).

Earlier today, the Fund reported the results of its Dutch auction style tender offer. The Fund also exercised its right to increase the amount of accepted shares. Seller price convergence landed at $5.50/share, which represents a 27.5% discount to the most recently disclosed net asset value.