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Main Street Announces Amendment of its SPV Credit Facility

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Main Street Capital (NYSE: MAIN) has announced that its wholly-owned subsidiary, MSCC Funding I, , has amended its special purpose vehicle revolving credit facility (SPV Facility). The amendment includes:

  • An increase in total commitments from $430.0 million to $600.0 million
  • An expanded accordion feature allowing for an increase up to $800.0 million of total commitments
  • Extension of the revolving period through September 2027
  • Extension of the final maturity date to September 2029
  • Decreased interest rates during the revolving period and subsequent years

These changes aim to enhance Main Street's financial flexibility and reduce borrowing costs.

Main Street Capital (NYSE: MAIN) ha annunciato che la sua controllata interamente posseduta, MSCC Funding I, ha modificato la sua linea di credito revolving dedicata (SPV Facility). La modifica include:

  • Un aumento degli impegni totali da 430,0 milioni a 600,0 milioni
  • Una funzionalità accordion ampliata che consente un incremento fino a 800,0 milioni degli impegni totali
  • Estensione del periodo di revolving fino a settembre 2027
  • Estensione della data di scadenza finale a settembre 2029
  • Tassi di interesse ridotti durante il periodo di revolving e negli anni successivi

Questi cambiamenti mirano a migliorare la flessibilità finanziaria di Main Street e a ridurre i costi di finanziamento.

Main Street Capital (NYSE: MAIN) ha anunciado que su subsidiaria de propiedad total, MSCC Funding I, ha modificado su línea de crédito rotativo para vehículos de propósito especial (SPV Facility). La modificación incluye:

  • Un aumento en los compromisos totales de 430,0 millones a 600,0 millones
  • Una función de acordeón ampliada que permite un incremento de hasta 800,0 millones en los compromisos totales
  • Prórroga del período rotativo hasta septiembre de 2027
  • Prórroga de la fecha de vencimiento final a septiembre de 2029
  • Tasas de interés reducidas durante el período rotativo y en los años posteriores

Estos cambios buscan mejorar la flexibilidad financiera de Main Street y reducir los costos de financiamiento.

Main Street Capital (NYSE: MAIN)은 완전 자회사인 MSCC Funding I가 특수 목적 차량 회전 신용 시설(SPV Facility)을 수정했다고 발표했습니다. 수정 사항은 다음과 같습니다:

  • 총 약정액을 4억 3천만 달러에서 6억 달러로 증가
  • 총 약정액을 최대 8억 달러까지 증가시킬 수 있는 확장된 아코디언 기능
  • 회전 기간을 2027년 9월까지 연장
  • 최종 만기일을 2029년 9월로 연장
  • 회전 기간 및 이후 몇 년 동안의 금리 인하

이러한 변경 사항은 Main Street의 재정적 유연성을 향상시키고 차입 비용을 줄이기 위한 것입니다.

Main Street Capital (NYSE: MAIN) a annoncé que sa filiale entièrement détenue, MSCC Funding I, a modifié son crédit revolving pour véhicule à usage spécial (SPV Facility). La modification comprend :

  • Une augmentation des engagements totaux de 430,0 millions $ à 600,0 millions $
  • Une fonctionnalité d'accordéon élargie permettant une augmentation jusqu'à 800,0 millions $ des engagements totaux
  • Extension de la période de revolving jusqu'à septembre 2027
  • Extension de la date d'échéance finale à septembre 2029
  • Des taux d'intérêt réduits pendant la période de revolving et les années suivantes

Ces changements visent à améliorer la flexibilité financière de Main Street et à réduire les coûts d'emprunt.

Main Street Capital (NYSE: MAIN) hat bekannt gegeben, dass ihre hundertprozentige Tochtergesellschaft, MSCC Funding I, ihre Revolving-Kreditfazilität für Zweckgesellschaften (SPV Facility) geändert hat. Die Änderung umfasst:

  • Eine Erhöhung des Gesamtengagements von 430,0 Millionen auf 600,0 Millionen
  • Eine erweiterte Akkordeon-Funktion, die eine Erhöhung des Gesamtengagements auf bis zu 800,0 Millionen ermöglicht
  • Verlängerung der Revolving-Periode bis September 2027
  • Verlängerung des endgültigen Fälligkeitsdatums bis September 2029
  • Gesunkene Zinssätze während der Revolving-Periode und der Folgejahre

Diese Änderungen zielen darauf ab, die finanzielle Flexibilität von Main Street zu erhöhen und die Kreditkosten zu senken.

Positive
  • Increased total commitments from $430.0 million to $600.0 million
  • Expanded accordion feature allowing for up to $800.0 million in total commitments
  • Extended revolving period to September 2027
  • Extended final maturity date to September 2029
  • Decreased interest rates during revolving period and subsequent years
Negative
  • None.

Insights

The amendment to Main Street Capital 's SPV credit facility is a positive development for the company. The increase in total commitments from $430 million to $600 million represents a significant 39.5% boost in available capital. This expansion, coupled with the accordion feature allowing up to $800 million, provides MAIN with enhanced financial flexibility and liquidity.

The extension of the revolving period to September 2027 and the final maturity to September 2029 offers longer-term stability for the company's financing structure. Moreover, the decrease in interest rates during various periods of the facility will result in lower borrowing costs, potentially improving MAIN's profitability and cash flow.

For investors, this amendment signals confidence from lenders in MAIN's business model and creditworthiness. The improved terms could support more efficient capital deployment and potentially enhance returns for shareholders in the long run.

This credit facility amendment positions Main Street Capital favorably in the competitive business development company (BDC) landscape. The increased capital access at improved terms could enhance MAIN's ability to pursue investment opportunities and maintain its market position.

The reduction in interest rates is particularly noteworthy given the current high-interest rate environment. For instance, the decrease from SOFR plus 2.60% to SOFR plus 2.35% during the revolving period represents meaningful cost savings. This could translate to improved net investment income and potentially support MAIN's dividend payments, which are important for BDC investors.

The extended maturity and revolving period also provide MAIN with a longer runway for strategic planning and investment, which could be a competitive advantage in navigating economic cycles and market volatility.

Total Commitments Increased to $600.0 Million

Final Maturity of the Facility Extended to September 2029

HOUSTON, Oct. 1, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its wholly-owned subsidiary, MSCC Funding I, LLC ("MSCC Funding"), recently amended its special purpose vehicle revolving credit facility (the "SPV Facility"). The recently closed amendment provides an increase in total commitments from $430.0 million to $600.0 million, while maintaining an expanded accordion feature that allows for an increase up to $800.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. The amendment also extends the revolving period, or reinvestment period, through September 2027 and the final maturity date to September 2029. The amendment also decreases the interest rate during the revolving period to one-month Term SOFR ("SOFR") plus 2.35% (from the prior interest rate of SOFR plus 2.50% plus a 0.10% credit spread adjustment, or SOFR plus 2.60% in total) and during the first and second years after the revolving period to SOFR plus 2.475% and 2.60%, respectively (from the prior interest rate of SOFR plus 2.625% and 2.75%, respectively).

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 portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's middle market portfolio companies 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, as amended.

FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including but not limited to the availability of future financing capacity under its credit facilities, which are based upon Main Street management's current expectations and are inherently uncertain. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Ryan R Nelson, CFO, rnelson@mainstcapital.com
713-350-6000

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

Cision View original content:https://www.prnewswire.com/news-releases/main-street-announces-amendment-of-its-spv-credit-facility-302263269.html

SOURCE Main Street Capital Corporation

FAQ

What changes were made to Main Street Capital's (MAIN) SPV credit facility?

Main Street Capital (MAIN) amended its SPV credit facility, increasing total commitments to $600.0 million, extending the revolving period to September 2027, extending the final maturity to September 2029, and decreasing interest rates during the revolving period and subsequent years.

How much did Main Street Capital (MAIN) increase its credit facility commitments?

Main Street Capital (MAIN) increased its credit facility commitments from $430.0 million to $600.0 million, with an expanded accordion feature allowing for up to $800.0 million in total commitments.

What are the new interest rates for Main Street Capital's (MAIN) amended credit facility?

The new interest rates for Main Street Capital's (MAIN) amended credit facility are SOFR plus 2.35% during the revolving period, and SOFR plus 2.475% and 2.60% during the first and second years after the revolving period, respectively.

When is the new maturity date for Main Street Capital's (MAIN) amended credit facility?

The new maturity date for Main Street Capital's (MAIN) amended credit facility is September 2029.

Main Street Capital Corporation

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