Main Street Prices Public Offering of $200 Million of Notes due 2026

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced a public offering of $200 million in 3.00% notes due 2026, priced at 101.741% of the principal amount. This issuance will increase total outstanding notes to $500 million. The offering aims to repay existing debt and fund further investments, including marketable securities and operational expenses. The offering is expected to close on October 1, 2021, with expected gross proceeds of approximately $203.5 million and a yield-to-maturity of 2.604%.

Positive

• The issuance aims to raise approximately $203.5 million to repay existing debt and facilitate further investments.
• The total outstanding 3.00% notes due 2026 will increase to $500 million, potentially strengthening capital structure.

Negative

• Issuing additional notes may lead to shareholder dilution as the total principal amount increases.
• Potentially increased interest obligations could impact profitability.

HOUSTON, Sept. 28, 2021 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it has priced an underwritten public offering of an additional $200 million in aggregate principal amount of its 3.00% notes due 2026 (the "Notes"). The Notes are being issued at a premium to par at a public offering price of 101.741% of the principal amount per Note, resulting in estimated gross proceeds of approximately $203.5 million and a yield-to-maturity of 2.604%.

The Notes are a further issuance of the 3.00% notes due 2026 that Main Street issued on January 14, 2021 in an aggregate principal amount of $300.0 million (the "Existing 2026 Notes"). The Notes will be treated as a single series with the Existing 2026 Notes under the indenture and will have the same terms as the Existing 2026 Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing 2026 Notes. Upon the issuance of the Notes, the outstanding aggregate principal amount of Main Street's 3.00% notes due 2026 will be $500.0 million. The offering is subject to customary closing conditions and is expected to close on October 1, 2021.

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, Truist Securities, Inc., SMBC Nikko Securities America, Inc. and Raymond James & Associates, Inc. are acting as joint bookrunners for this offering. Comerica Securities, Inc., Hancock Whitney Investment Services, Inc., and Zions Direct, Inc. 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 28, 2021, the preliminary prospectus supplement dated September 28, 2021, 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,  Truist Securities, Inc., Attention: Prospectus Department, 303 Peachtree Street, Atlanta, GA 30308, telephone: 800-685-4786, or e-mail: TSIdocs@Truist.com, SMBC Nikko Securities America, Inc. at 277 Park Avenue, New York, New York 10172, Attn: Debt Capital Markets, 1-888-868-6856, or e-mail: prospectus@smbcnikko-si.com, or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, telephone: 800-248-8863, or e-mail: prospectus@raymondjames.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.

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.

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 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

FAQ

What is the size of the recent offering by Main Street Capital?

Main Street Capital announced a public offering of $200 million in 3.00% notes due 2026.

What are the intended uses of the proceeds from Main Street's notes offering?

The proceeds will be used to repay existing debt and fund investments, operating expenses, and general corporate purposes.

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

The offering is expected to close on October 1, 2021.

What are the financial terms of the Main Street Capital notes being offered?

The notes are priced at 101.741% of the principal amount with a yield-to-maturity of 2.604%.

How much will the total outstanding notes amount to after this offering?

Post-offering, the total outstanding amount of the 3.00% notes due 2026 will be $500 million.