Main Street Announces Amendment of its Credit Facility

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has announced an amendment to its revolving credit facility, increasing total commitments from $855 million to $920 million. The maturity of the facility is now extended to August 2027. The credit facility includes an accordion feature to raise commitments up to $1.4 billion. Borrowing rates will now be determined using the Term SOFR index, maintaining an interest spread of 1.875% if certain conditions are met.

Positive

• Increased total commitments of the revolving credit facility to $920 million.
• Extended maturity of the facility to August 2027.
• Accordion feature allows for total commitments to increase up to $1.4 billion.

Negative

• None.

Total Commitments Increased to $920 Million
Maturity of the Facility Extended to August 2027 

HOUSTON, Aug. 4, 2022 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the amendment of its revolving credit facility (the "Credit Facility"). The recently closed amendment provides an extension of the Credit Facility's final maturity to August 2027. The total commitments of the Credit Facility increased from $855.0 million to $920.0 million while maintaining an expanded accordion feature that allows for an increase up to $1.4 billion of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. As part of this amendment, the reference rate used to determine the borrowing interest rate was changed from LIBOR to Term SOFR plus an applicable credit spread adjustment. Borrowings will bear interest at the same interest rate spread of 1.875% so long as Main Street satisfies certain agreed upon excess collateral and leverage requirements, consistent with the historical requirements under the Credit Facility. In addition to the extended maturity and increased commitments, Main Street continues to maintain two, one-year extension options under the amended Credit Facility which could extend the final maturity of the Credit Facility for up to two additional years, subject to certain conditions, including lender approval.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market investment strategy. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's private loan and middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO and COO, jmorris@mainstcapital.com                
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com 
713-529-6600

View original content:https://www.prnewswire.com/news-releases/main-street-announces-amendment-of-its-credit-facility-301600179.html

SOURCE Main Street Capital Corporation

FAQ

What is the new total commitment of Main Street Capital's credit facility?

The new total commitment is $920 million.

When does the credit facility for Main Street Capital mature?

The maturity of the credit facility is extended to August 2027.

How much can Main Street Capital increase its credit facility commitments?

Main Street Capital can increase its commitments up to $1.4 billion.

What interest rate spread does Main Street Capital's credit facility maintain?

The interest rate spread is maintained at 1.875%.

What changes were made to the reference rate for borrowing?

The reference rate changed from LIBOR to Term SOFR.