Main Street Prices Public Offering of $100 Million of 6.50% Notes due 2027
Main Street Capital (NYSE: MAIN) has priced a public offering of $100 million in 6.50% notes due 2027. The notes are being issued at a premium, with a public offering price of 102.134% of the principal amount, yielding estimated gross proceeds of $102.1 million and a yield-to-maturity of 5.617%. This issuance is an addition to the existing $300 million of 6.50% notes due 2027, bringing the total outstanding principal to $400 million.
Main Street plans to use the net proceeds to repay outstanding debt, including amounts from its credit facilities, and then reinvest in accordance with its investment strategies. The offering is expected to close on September 13, 2024, subject to customary conditions.
Main Street Capital (NYSE: MAIN) ha fissato un'offerta pubblica di 100 milioni di dollari in obbligazioni con un tasso d'interesse del 6,50% in scadenza nel 2027. Le obbligazioni sono emesse a un premio, con un prezzo di offerta pubblica pari a 102,134% dell'importo nominale, generando ricavi lordi stimati di 102,1 milioni di dollari e un rendimento a scadenza del 5,617%. Questa emissione si aggiunge ai già esistenti 300 milioni di dollari di obbligazioni al 6,50% in scadenza nel 2027, portando il totale dell'importo in circolazione a 400 milioni di dollari.
Main Street prevede di utilizzare i proventi netti per estinguere debiti in sospeso, compresi gli importi delle sue linee di credito, per poi reinvestire in conformità alle sue strategie d'investimento. Si prevede che l'offerta si chiuda il 13 settembre 2024, soggetta a condizioni consuete.
Main Street Capital (NYSE: MAIN) ha fijado una oferta pública de 100 millones de dólares en notas del 6.50% con vencimiento en 2027. Las notas se emiten a una prima, con un precio de oferta pública de 102.134% del monto principal, generando ingresos brutos estimados de 102.1 millones de dólares y un rendimiento a vencimiento del 5.617%. Esta emisión se suma a los 300 millones de dólares existentes en notas del 6.50% con vencimiento en 2027, aumentando el total de capital en circulación a 400 millones de dólares.
Main Street planea usar los ingresos netos para pagar deudas pendientes, incluyendo los montos de sus líneas de crédito, y luego reinvertir de acuerdo a sus estrategias de inversión. Se espera que la oferta se cierre el 13 de septiembre de 2024, sujeta a condiciones habituales.
메인 스트리트 캐피털(NYSE: MAIN)은 2027년에 만기가 도래하는 연 6.50% 채권 1억 달러의 공모를 가격 책정했습니다. 이 채권은 프리미엄으로 발행되며, 공모 가격은 원금의 102.134%로, 추정 총 수익은 1억 2.1백만 달러이며 만기 수익률은 5.617%입니다. 이번 발행은 2027년에 만기가 도래하는 6.50% 채권 3억 달러에 추가되며, 총 유통 원금은 4억 달러로 증가합니다.
메인 스트리트는 순수익을 기존 채무 상환, 신용 시설의 금액 포함 및 투자 전략에 따라 재투자하는 데 사용할 계획입니다. 이 공모는 2024년 9월 13일에 종료될 것으로 예상되며 일반적인 조건에 따릅니다.
Main Street Capital (NYSE: MAIN) a fixé une offre publique de 100 millions de dollars en obligations à 6,50% venant à échéance en 2027. Les obligations sont émises à une prime, avec un prix d'offre publique de 102,134% du montant principal, générant des recettes brutes estimées à 102,1 millions de dollars et un rendement à l'échéance de 5,617%. Cette émission s'ajoute aux 300 millions de dollars d'obligations à 6,50% venant à échéance en 2027, portant le total du capital en circulation à 400 millions de dollars.
Main Street prévoit d'utiliser les produits nets pour rembourser des dettes en cours, y compris les sommes aux titres de ses facilités de crédit, puis de réinvestir conformément à ses stratégies d'investissement. L'offre devrait se clôturer le 13 septembre 2024, sous réserve des conditions habituelles.
Main Street Capital (NYSE: MAIN) hat ein öffentliches Angebot von 100 Millionen US-Dollar in 6,50%-Anleihen mit Fälligkeit 2027 festgesetzt. Die Anleihen werden mit einem Aufschlag ausgegeben, wobei der öffentliche Angebotspreis 102,134% des Nennbetrags beträgt, was geschätzte Bruttoerträge von 102,1 Millionen US-Dollar und eine Rendite bis zur Fälligkeit von 5,617% ergibt. Diese Emission ergänzt die bestehenden 300 Millionen US-Dollar von 6,50%-Anleihen mit Fälligkeit 2027, wodurch sich das gesamte ausstehende Kapital auf 400 Millionen US-Dollar erhöht.
Main Street plant, die Nettoerlöse zu verwenden, um ausstehende Schulden, einschließlich Beträgen aus Kreditfazilitäten, zurückzuzahlen und anschließend gemäß seinen Anlagestrategien reinvestieren. Es wird erwartet, dass das Angebot am 13. September 2024 abgeschlossen wird, vorbehaltlich üblicher Bedingungen.
- Additional $100 million in notes issued at a premium, generating $102.1 million in gross proceeds
- Notes priced at 102.134% of principal amount, indicating strong demand
- Yield-to-maturity of 5.617%, potentially attractive for investors
- Increased total outstanding principal of 6.50% notes due 2027 to $400 million, potentially improving liquidity
- Increased debt load with additional $100 million in notes
- Potential dilution of earnings per share due to increased interest expenses
- Dependence on successful investments to offset the cost of new debt
Insights
Main Street Capital's
The company's plan to use proceeds for debt repayment and reinvestment aligns with a prudent capital management strategy. By refinancing higher-cost debt and funding new investments, Main Street can potentially enhance its interest spread and overall profitability. However, investors should monitor the impact on the company's leverage and interest coverage ratios.
This offering reflects the robust demand for yield in the current market. The successful placement of additional notes at a premium suggests investors' confidence in Main Street's business model and credit quality. The
The involvement of multiple underwriters, including major banks, indicates broad market support. This could potentially enhance Main Street's market position and ability to access capital markets in the future. However, investors should consider the broader economic context, including interest rate trends and their potential impact on Main Street's investment portfolio and borrowing costs.
The Notes are a further issuance of the
Main Street intends to initially use the net proceeds from this offering to repay outstanding indebtedness, including amounts outstanding under Main Street's corporate revolving credit facility (the "Corporate Facility") or its special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), and then, through re-borrowing under the Credit Facilities, 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.
Truist Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. are acting as joint bookrunners for this offering. Raymond James & Associates, Inc., Zions Direct, Inc., TCBI Securities, Inc., doing business as Texas Capital Securities, Hancock Whitney Investment Services, Inc., Comerica Securities, Inc., B. Riley Securities, Inc. and WauBank Securities LLC are acting as co-managers for this offering.
Investors should carefully consider, among other things, Main Street's investment objective and strategies and the risks related to Main Street and the offering before investing. The pricing term sheet dated September 11, 2024, the preliminary prospectus supplement dated September 11, 2024, the accompanying prospectus dated March 3, 2022, each of which has been filed with the Securities and Exchange Commission, any related free writing prospectus, and any information incorporated by reference in each, contain this and other information about Main Street and should be read carefully before investing.
A shelf registration statement relating to these securities is on file with the Securities and Exchange Commission and effective. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained from Truist Securities, Inc., Attention: Prospectus Department, 303 Peachtree Street,
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute offers to sell or the solicitation of offers to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
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 portfolio companies generally have annual revenues between
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. The forward-looking statements may include statements as to Main Street's notes offering, the expected net proceeds from the offering and the anticipated use of the net proceeds of the offering. 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
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SOURCE Main Street Capital Corporation
FAQ
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