Main Street Announces Amendment of its SPV Credit Facility

Rhea-AI Summary

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.

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.

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

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.