Main Street Prices Public Offering of $125 Million of Notes due 2024

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has priced a public offering of $125 million in 5.20% notes due 2024, with an estimated gross proceeds of approximately $128.3 million at a price of 102.67% of principal. This offering brings the total outstanding amount to $450 million for these notes. Proceeds will primarily go towards repaying existing debt and funding investments, including marketable securities and operating expenses. The offering is expected to close on July 28, 2020, with RBC Capital Markets and others acting as underwriters.

Positive

• Issuing $125 million in notes may enhance liquidity and investment capacity.
• Proceeds will be used to repay debt, potentially improving financial stability.

Negative

• The public offering could dilute existing shareholders' stakes.
• The pricing at 102.67% indicates the notes are being sold at a premium, reflecting market conditions.

HOUSTON, July 23, 2020 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it has priced an underwritten public offering of an additional $125.0 million in aggregate principal amount of its 5.20% notes due 2024 (the "Notes"). The Notes are being issued at a premium to par at a public offering price of approximately 102.67% of the principal amount per Note, resulting in estimated gross proceeds of approximately $128.3 million and a yield-to-maturity of approximately 4.42%.

The Notes are a further issuance of the 5.20% notes due 2024 that Main Street issued on April 23, 2019 in an aggregate principal amount of $250.0 million and on December 5, 2019 in an aggregate principal amount of $75.0 million (together, the "Existing 2024 Notes"). The Notes will be treated as a single series with the Existing 2024 Notes under the indenture and will have the same terms as the Existing 2024 Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing 2024 Notes. Upon the issuance of the Notes, the outstanding aggregate principal amount of Main Street's 5.20% notes due 2024 will be $450.0 million. The offering is subject to customary closing conditions and is expected to close on July 28, 2020. 

Main Street intends to initially use the net proceeds from this offering to 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.

RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and Raymond James & Associates, Inc. are acting as joint bookrunners for this offering. Comerica Securities, Inc. and WoodRock Securities, L.P. 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 July 23, 2020, the preliminary prospectus supplement dated July 23, 2020, the accompanying prospectus dated April 30, 2019, 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 RBC Capital Markets, LLC, Attention: Investment Grade Syndicate Desk, 200 Vesey Street, 8th Floor, New York, NY 10281, telephone: 866-375-6829, or e-mail: rbcnyfixedincomeprospectus@rbccm.com and SunTrust Robinson Humphrey, Inc., Attention: Prospectus Department, 303 Peachtree Street, Atlanta, GA 30308, telephone: 800-685-4786, or e-mail: STRHdocs@SunTrust.com.

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 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.

FORWARD-LOOKING STATEMENTS
This press release may contain 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 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
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

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SOURCE Main Street Capital Corporation

FAQ

What is the amount raised by Main Street Capital's recent offering?

Main Street Capital Corporation raised $125 million through its recent offering of 5.20% notes due 2024.

When is the expected closing date for Main Street's notes offering?

The expected closing date for the offering is July 28, 2020.

What will the proceeds from the Main Street offering be used for?

The proceeds will be used to repay outstanding debt and for various investments, including marketable securities and operating expenses.

How much will the total outstanding amount of the 5.20% notes be after this offering?

After this offering, the total outstanding amount of the 5.20% notes will be $450 million.

Who are the underwriters for Main Street's public offering?

The underwriters for the offering include RBC Capital Markets, SunTrust Robinson Humphrey, and Raymond James.