Main Street Closes Public Offering of Common Stock

Rhea-AI Summary

Main Street Capital has successfully completed an underwritten offering of 1,345,500 shares of its common stock at a price of $42.85 per share, generating approximately $55.1 million in net proceeds. The funds will primarily be used to repay existing debt and support investments in line with Main Street's objectives. The offering was managed by RBC Capital Markets and others, under an effective SEC registration statement.

Positive

• Successfully raised approximately $55.1 million from the stock offering.
• Funds will be used to repay debt and support investment strategies.

Negative

• Potential dilution of existing shareholders due to the increase in total shares outstanding.

Underwriters Fully Exercise Option to Purchase Additional Shares

HOUSTON, Aug. 15, 2022 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it closed the previously announced underwritten offering of 1,170,000 shares of its common stock at a public offering price of $42.85 per share. In addition, the underwriters fully exercised their option to purchase 175,500 additional shares. Including the exercise of the underwriters' option, the total number of shares sold in the offering was 1,345,500. Net proceeds to Main Street from the offering, including exercise of the underwriters' option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by Main Street, were approximately $55.1 million.

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

The underwriters of this offering were RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities (as joint bookrunners) and Hovde Group, LLC and Oppenheimer & Co. (as co-managers).  The shares were sold pursuant to an effective shelf registration statement on Form N-2 that has been filed with, and has been declared effective by, the U.S. Securities and Exchange Commission (the "SEC").  

This press release does not constitute an offer to sell or a solicitation of an offer to buy the shares referred to in this press release.

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 private loan and 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 contains certain forward-looking statements 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 SEC.  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.

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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-closes-public-offering-of-common-stock-301605688.html

SOURCE Main Street Capital Corporation

FAQ

What is the total number of shares sold in Main Street's recent stock offering?

Main Street sold a total of 1,345,500 shares including the exercised option.

What is the public offering price for Main Street's shares?

The shares were offered at a public price of $42.85 each.

What will Main Street do with the proceeds from the stock offering?

The proceeds will be used to repay debt and for investments in accordance with Main Street's investment objectives.

Who managed Main Street's recent stock offering?

The offering was managed by RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities.

When was Main Street's stock offering announced?

The offering was announced on August 15, 2022.