Main Street Announces Completion of $100.0 Million Investment Grade Notes Offering

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced the successful closure of a private notes offering totaling $100.0 million. The unsecured notes carry a fixed interest rate of 7.84%, maturing on December 23, 2025. Proceeds will be primarily used to repay debt from its revolving credit facility and fund investments. The notes have not been registered under the Securities Act, limiting their sale in the U.S. without proper registration or exemption. Main Street aims to support lower middle market companies through long-term debt and equity capital.

Positive

• Successfully closed a private notes offering of $100.0 million.
• The notes carry a fixed interest rate of 7.84%, providing predictable financing costs.
• Proceeds will be used to reduce existing debt, potentially improving financial stability.

Negative

• The notes are unsecured, which may pose a risk to investors in case of financial distress.

HOUSTON, Dec. 27, 2022 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the closing of a private notes offering totaling $100.0 million in aggregate principal amount (the "Notes"). The Notes are unsecured and bear interest at a fixed rate of 7.84% per year, payable semiannually, mature on December 23, 2025 and may be redeemed in whole or in part at any time or from time to time at the Company's option at par plus accrued interest to the prepayment date and, if applicable, a make-whole premium.

Main Street intends to use the net proceeds from this offering to initially repay a portion of the outstanding debt borrowed under its revolving credit facility and then, through re-borrowing under its revolving credit facility, to fund investments in accordance with its investment objective and strategies, to pay operating expenses and other cash obligations and for general corporate purposes.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This news release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

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 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, as amended.     

FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements.  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 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
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-completion-of-100-0-million-investment-grade-notes-offering-301710135.html

SOURCE Main Street Capital Corporation

FAQ

What is the interest rate for the newly issued notes by MAIN?

The interest rate for the newly issued notes is 7.84% per year.

When do the notes issued by Main Street Capital mature?

The notes will mature on December 23, 2025.

How much did Main Street Capital raise from the notes offering?

Main Street Capital raised $100.0 million from the notes offering.

What are the intended uses for the proceeds from the notes offering by MAIN?

The proceeds will initially repay debt and subsequently fund investments, operating expenses, and general corporate purposes.

Are the newly issued notes by MAIN registered with the SEC?

No, the notes have not been registered under the Securities Act.