Main Street Announces Amendment of its Credit Facility

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced an amendment to its revolving credit facility, extending the maturity to April 2026. The total commitments rose from $780 million to $855 million, with potential increases up to $1.2 billion. The interest rate on outstanding borrowings remains unchanged at LIBOR plus 1.875%, contingent on maintaining agreed collateral and leverage requirements. Additionally, Main Street retains two one-year extension options for the credit facility, which may extend maturity for two more years with lender approval.

Positive

• Credit facility maturity extended to April 2026.
• Total commitments increased from $780 million to $855 million.
• Accordion feature allows for an increase up to $1.2 billion.
• Interest rate remains unchanged at LIBOR plus 1.875%.

Negative

• None.

HOUSTON, April 8, 2021 /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 final maturity to April 2026.  The total commitments of the Credit Facility increased from $780.0 million to $855.0 million while maintaining an expanded accordion feature that allows for an increase up to $1.2 billion of total commitments from new and existing lenders on the same terms and conditions as the existing commitments.  The interest rate for outstanding borrowings under the Credit Facility remains unchanged at the applicable LIBOR rate plus 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 portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's 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
Brent D. Smith, CFO, bsmith@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:http://www.prnewswire.com/news-releases/main-street-announces-amendment-of-its-credit-facility-301264428.html

SOURCE Main Street Capital Corporation

FAQ

What is the significance of Main Street Capital's credit facility amendment?

The amendment extends the maturity of the credit facility to April 2026 and increases total commitments, enhancing liquidity.

How much did the total commitments increase in Main Street Capital's credit facility?

Total commitments increased from $780 million to $855 million.

What is the new maturity date for Main Street Capital's revolving credit facility?

The new maturity date is April 2026.

What is the interest rate on Main Street Capital's credit facility after the amendment?

The interest rate remains at LIBOR plus 1.875%, subject to collateral and leverage requirements.

Can Main Street Capital further increase its credit facility commitments?

Yes, the accordion feature allows for an increase up to $1.2 billion.