Main Street Announces Amendment of its SPV Credit Facility

Rhea-AI Summary

Main Street Capital (NYSE: MAIN) has announced key amendments to its SPV revolving credit facility through its subsidiary MSCC Funding I, The changes include:

• A reduction in interest rate during the revolving period to Term SOFR plus 1.95% (previously Term SOFR plus 2.35%)
• Lower interest rates for post-revolving periods: Term SOFR plus 2.075% for first year and 2.20% for second year (down from 2.475% and 2.60% respectively)
• Extension of revolving period through September 2028
• Extension of final maturity date to September 2030
• Decrease in unused fee to 0.40% on unused amounts up to 50% of commitment amount (previously 0.50% up to 35%)

Positive

• Interest rate reduction of 40 basis points during revolving period
• Extended maturity date by one year to September 2030
• Lower unused fee rate (0.40% vs 0.50%)
• Higher threshold for unused fee application (50% vs 35% of commitment amount)

Negative

• None.

News Market Reaction

-0.90%

1 alert

-0.90% News Effect

On the day this news was published, MAIN declined 0.90%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Interest Rate Reduced

Final Maturity Date Extended to September 2030

HOUSTON, April 24, 2025 /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 decreases the interest rate during the revolving period to one-month term Secured Overnight Financing Rate ("Term SOFR") plus 1.95% (from the prior interest rate of Term SOFR plus 2.35%) and during the first and second years after the revolving period to Term SOFR plus 2.075% and 2.20%, respectively (from the prior interest rate of Term SOFR plus 2.475% and 2.60%, respectively). The amendment also extends both the revolving period, or reinvestment period, and the final maturity date by one year through September 2028 and to September 2030, respectively. The amendment also decreases the unused fee to 0.40% (from 0.50%) on the unused amount up to 50% (from 35%) of the commitment amount.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. 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 customized "one-stop" debt and equity financing alternatives within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

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-302437890.html

SOURCE Main Street Capital Corporation

FAQ

What changes were made to MAIN's SPV credit facility interest rates?

The interest rate was reduced to Term SOFR plus 1.95% during revolving period, and to Term SOFR plus 2.075% and 2.20% for the first and second post-revolving years respectively.

When is the new maturity date for Main Street Capital's SPV facility?

The final maturity date has been extended to September 2030.

How long is MAIN's new revolving period for the SPV facility?

The revolving period has been extended through September 2028.

What are the new unused fee terms for Main Street Capital's SPV facility?

The unused fee was decreased to 0.40% on unused amounts up to 50% of the commitment amount.