Main Street Receives Stockholder Approval to Reduce Asset Coverage Ratio to 150%

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced that at its 2022 annual stockholder meeting, shareholders approved a reduction in the minimum asset coverage ratio from 200% to 150%. This change takes effect immediately and complies with Section 61(a)(2) of the Investment Company Act of 1940. Main Street primarily invests in lower middle market companies and aims to provide comprehensive financing solutions.

Positive

• Approval of reduced asset coverage ratio, enhancing financial flexibility.

Negative

• Reduction in asset coverage ratio may indicate potential risks in maintaining financial stability.

HOUSTON, May 3, 2022 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that at its 2022 annual meeting of stockholders, it received approval from its stockholders to reduce its minimum asset coverage ratio to 150% from 200%. The change to Main Street's minimum asset coverage ratio is effective as of today. The reduction to Main Street's minimum asset coverage ratio is being made pursuant to Section 61(a)(2) of the Investment Company Act of 1940. 

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 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 may contain certain forward-looking statements.  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 new asset coverage ratio for Main Street Capital Corporation?

The new asset coverage ratio for Main Street Capital Corporation is 150%, down from 200%.

When did Main Street Capital Corporation announce the change in asset coverage ratio?

The announcement was made on May 3, 2022.

What does a reduced asset coverage ratio mean for shareholders of MAIN?

A reduced asset coverage ratio may provide more financial flexibility but could also imply increased risks.

How does the asset coverage ratio reduction comply with regulations?

The reduction complies with Section 61(a)(2) of the Investment Company Act of 1940.