Main Street Announces Increase in Commitments Under its Credit Facility

Rhea-AI Summary

Total Commitments for Main Street Capital Corporation have increased from $920 million to $980 million, marking a $60 million rise due to a new lender relationship. This increment was made possible through the accordion feature of the Credit Facility, which allows total commitments up to $1.38 billion. CEO Dwayne L. Hyzak expressed satisfaction regarding the diversification of the lender group and the additional $415 million of debt capital that supports future growth and repayment of matured borrowings. Main Street focuses on providing long-term debt and equity to lower middle market companies.

Positive

• Total commitments under the credit facility increased by $60 million, reaching $980 million.
• Access to additional financing capacity supports future investments and operational activities.
• Successful diversification of the lender group indicates growing investor confidence.

Negative

• None.

Total Commitments Increased to $980 Million

HOUSTON, Jan. 18, 2023 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the expansion of total commitments under its revolving credit facility (the "Credit Facility") from $920.0 million to $980.0 million. The $60.0 million net increase in total commitments was the result of the addition of a new lender relationship. The recent increase in total commitments was executed under the accordion feature of the Credit Facility, which allows for an increase up to $1.38 billion in total commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments. The recent increase in total commitments under the Credit Facility provides Main Street with access to additional financing capacity in support of its future investment and operational activities.

Dwayne L. Hyzak, Main Street's Chief Executive Officer, commented, "We are very pleased that we were able to further diversify our lender group and expand the commitments under our corporate credit facility.  Taken together with the recently completed debt private placement and the new SPV credit facility that we executed in the fourth quarter of 2022, these positive developments provide us with access to $415 million of additional debt capital and the ability to repay borrowings that matured in December and to fund the continued growth of our investment portfolio. The confidence shown by these new lending relationships and the continued support from our long-term relationships within our lending group is greatly appreciated."

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, including but not limited to the availability of future financing capacity under the 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 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

 

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SOURCE Main Street Capital Corporation