Main Street Announces Third Quarter 2020 Private Loan Portfolio Activity

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced strong third-quarter 2020 activity in its private loan portfolio, originating approximately $85.0 million in new commitments across five borrowers. The net new investments totaled around $71.0 million. Notable commitments included significant loans to diverse sectors, such as $17.3 million to a consumer product manufacturer and $16.7 million to a defense contractor. As of September 30, 2020, the total portfolio was valued at $823.0 million, with 90% in first lien debt investments.

Positive

• Originated $85.0 million in new private loan commitments.
• Total investments in private loan portfolio reached $823.0 million.
• Strong diversification with investments across five new borrowers.

Negative

• None.

HOUSTON, Oct. 7, 2020 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the following recent activity in its private loan portfolio.  During the third quarter of 2020, Main Street originated approximately $85.0 million in new private loan commitments across five (5) new borrowers and funded net new investments across its private loan portfolio with a cost basis totaling approximately $71.0 million.

The following represent notable new private loan commitments during the third quarter of 2020:

• $17.3 million in a first lien senior secured loan and $2.7 million in a first lien senior secured revolver to a niche consumer product manufacturer;
• $16.7 million in a first lien senior secured loan and $3.3 million in a first lien senior secured revolver to a defense contractor;
• $15.0 million in a first lien senior secured loan and $1.3 million in a first lien senior secured revolver to a cloud-based technology company focused on procurement processes and activities;
• $15.0 million in a first lien senior secured loan to a dental support organization; and
• $10.0 million in a first lien senior secured loan and $3.7 million in a first lien senior secured revolver to an electronic road tolling software and service provider.

As of September 30, 2020, Main Street's private loan portfolio included total investments at cost of approximately $823.0 million across 68 unique borrowers. The private loan portfolio, as a percentage of cost, included 90% invested in first lien debt investments, 3% invested in second lien debt investments, and 7% invested in equity investments or other securities.

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 portfolio.  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.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Brent D. Smith, CFO, bsmith@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:http://www.prnewswire.com/news-releases/main-street-announces-third-quarter-2020-private-loan-portfolio-activity-301147272.html

SOURCE Main Street Capital Corporation

FAQ

What were the new loan commitments for Main Street in Q3 2020?

Main Street originated approximately $85.0 million in new private loan commitments in Q3 2020.

How much did Main Street fund in net new investments during Q3 2020?

Main Street funded net new investments totaling approximately $71.0 million during Q3 2020.

What is the total value of Main Street's private loan portfolio?

As of September 30, 2020, Main Street's private loan portfolio included total investments at cost of approximately $823.0 million.

What percentage of Main Street's portfolio is in first lien debt investments?

90% of Main Street's private loan portfolio is invested in first lien debt investments.

Which sectors received loans from Main Street in Q3 2020?

Main Street's loans in Q3 2020 included commitments to a consumer product manufacturer, a defense contractor, a cloud-based tech company, a dental support organization, and an electronic road tolling software provider.