MSC Income Fund, Inc. Files Definitive Proxy Statement in Connection with Potential Listing of its Shares on a National Securities Exchange
Main Street Capital (NYSE: MAIN) announced that MSC Income Fund, Inc., a non-listed BDC managed by Main Street's subsidiary MSC Adviser I, , filed a Definitive Proxy Statement for a Special Meeting. The meeting aims to approve proposals that could lead to listing MSC Income's shares on a national securities exchange, potentially followed by a public offering.
Key benefits of the proposed changes include:
- Opportunity for significant growth through access to public capital markets
- Transition to a private loan-only investment strategy
- Potential for an attractive recurring and growing quarterly dividend
- Path to full liquidity for existing shareholders
- Possible future reduction in minimum asset coverage ratio
The proposed changes, including amendments to the investment advisory agreement, are subject to shareholder approval.
Main Street Capital (NYSE: MAIN) ha annunciato che MSC Income Fund, Inc., un BDC non quotato gestito dalla filiale di Main Street, MSC Adviser I, ha presentato una Dichiarazione di Voto Definitivo per una Riunione Straordinaria. L'obiettivo della riunione è approvare proposte che potrebbero portare alla quotazione delle azioni di MSC Income su una borsa valori nazionale, potenzialmente seguita da un'offerta pubblica.
I principali vantaggi delle modifiche proposte includono:
- Opportunità di crescita significativa attraverso l'accesso ai mercati dei capitali pubblici
- Transizione a una strategia di investimento esclusivamente in prestiti privati
- Potenziale per un dividendo ricorrente e crescenti trimestrale attraente
- Via verso una piena liquidità per gli azionisti esistenti
- Possibile riduzione futura del rapporto minimo di copertura degli attivi
Le modifiche proposte, comprese le modifiche all'accordo di consulenza per gli investimenti, sono soggette all'approvazione degli azionisti.
Main Street Capital (NYSE: MAIN) anunció que MSC Income Fund, Inc., un BDC no cotizado gestionado por la filial de Main Street, MSC Adviser I, presentó una Declaración de Poder Definitiva para una Reunión Especial. El objetivo de la reunión es aprobar propuestas que podrían llevar a la cotización de las acciones de MSC Income en una bolsa de valores nacional, potencialmente seguida de una oferta pública.
Los beneficios clave de los cambios propuestos incluyen:
- Oportunidad de crecimiento significativo a través del acceso a los mercados de capitales públicos
- Transición a una estrategia de inversión solo en préstamos privados
- Potencial para un dividendo trimestral recurrente y en crecimiento atractivo
- Camino hacia la plena liquidez para los accionistas existentes
- Posible disminución futura en el ratio mínimo de cobertura de activos
Los cambios propuestos, incluidas las enmiendas al acuerdo de asesoría de inversiones, están sujetos a la aprobación de los accionistas.
메인 스트리트 캐피탈 (NYSE: MAIN)은 메인 스트리트의 자회사인 MSC 어드바이저 I이 관리하는 비상장 BDC인 MSC 인컴 펀드, Inc.가 특별 회의를 위한 최종 위임장(Definitive Proxy Statement)을 제출했다고 발표했습니다. 이 회의의 목표는 MSC 인컴의 주식을 국가 증권 거래소에 상장하는 제안을 승인하는 것입니다. 이는 공개 제안으로 이어질 수 있습니다.
제안된 변화의 주요 이점은 다음과 같습니다:
- 공개 자본 시장에 접근하여 상당한 성장 기회 제공
- 사적 대출 전용 투자 전략으로의 전환
- 매력적인 배당금으로 성장하는 분기별 배당금의 잠재력
- 기존 주주를 위한 완전한 유동성 경로
- 미래의 최소 자산 커버리지 비율 감소 가능성
제안된 변경 사항, 투자 자문 계약 수정 사항을 포함하여, 주주 승인을 받아야 합니다.
Main Street Capital (NYSE: MAIN) a annoncé que MSC Income Fund, Inc., un BDC non coté géré par la filiale de Main Street, MSC Adviser I, a déposé une Déclaration de Pouvoirs Finale pour une Réunion Spéciale. L'objectif de la réunion est d'approuver des propositions qui pourraient mener à la cotation des actions de MSC Income sur une bourse nationale, suivie potentiellement d'une offre publique.
Les principaux avantages des changements proposés incluent :
- Opportunité de croissance significative grâce à l'accès aux marchés de capitaux publics
- Transition vers une stratégie d'investissement uniquement en prêts privés
- Potentiel pour un dividende trimestriel attrayant et croissant
- Voie vers une liquidité totale pour les actionnaires existants
- Possible réduction future du ratio de couverture minimal des actifs
Les changements proposés, y compris les modifications de l'accord de conseil en investissement, sont soumis à l'approbation des actionnaires.
Main Street Capital (NYSE: MAIN) hat angekündigt, dass der MSC Income Fund, Inc., ein nicht börsennotiertes BDC, das von der Tochtergesellschaft von Main Street, MSC Adviser I, verwaltet wird, eine endgültige Erklärungen für eine außerordentliche Hauptversammlung eingereicht hat. Ziel der Versammlung ist es, Vorschläge zu genehmigen, die zu einer Börsennotierung der Aktien von MSC Income an einer nationalen Wertpapierbörse führen könnten, gefolgt möglicherweise von einem öffentlichen Angebot.
Die wichtigsten Vorteile der vorgeschlagenen Änderungen umfassen:
- Gelegenheit für erhebliches Wachstum durch Zugang zu den öffentlichen Kapitalmärkten
- Übergang zu einer ausschließlich privat finanzierten Anlagestrategie
- Potenzial für eine attraktive wiederkehrende und wachsende vierteljährliche Dividende
- Weg zu vollständiger Liquidität für bestehende Aktionäre
- Mögliche zukünftige Verringerung des Mindestverhältnisses der Vermögensdeckung
Die vorgeschlagenen Änderungen, einschließlich der Änderungen des Anlageberatungsvertrags, bedürfen der Genehmigung der Aktionäre.
- Potential listing of MSC Income Fund on a national securities exchange, providing access to public capital markets
- Transition to a private loan-only investment strategy, potentially generating attractive recurring dividends
- Opportunity for significant growth of MSC Income Fund
- Possible future reduction in minimum asset coverage ratio from 200% to 150%, allowing for optimized leverage profile
- Increased management fees for Main Street's asset management business
- Proposed changes are subject to shareholder approval, introducing uncertainty
- Transition in investment strategy may carry execution risks
- Potential follow-on public offering could lead to dilution for existing shareholders
Insights
This proxy filing signals a significant strategic shift for MSC Income Fund. The potential listing on a national exchange could enhance liquidity for existing shareholders and expand access to capital. The transition to a private loan-focused strategy may lead to more predictable income streams, potentially supporting a
However, investors should note that the proposed changes to the advisory agreement could impact fee structures. The potential to increase leverage from 200% to 150% asset coverage ratio presents both opportunities for higher returns and increased risk. Overall, this move could position MSC Income for growth but also introduces new operational dynamics that warrant close monitoring.
The potential listing of MSC Income Fund represents a strategic market positioning move. By transitioning to a publicly traded entity, the fund aims to capitalize on current market conditions that favor BDCs with strong private loan portfolios. This shift could attract a broader investor base, potentially leading to improved valuation and increased trading volume.
The focus on private loans aligns with market trends showing increased demand for private credit in a rising interest rate environment. However, success will depend on the fund's ability to maintain quality underwriting and manage risk effectively in a potentially more competitive landscape post-listing.
The filing of the Definitive Proxy Statement is a crucial legal step towards potential listing. Shareholders' approval of the proposals is legally required for implementing these significant changes. The amendment of the investment advisory agreement is particularly noteworthy, as it must comply with the Investment Company Act of 1940.
The potential reduction in asset coverage ratio from
In commenting on the Definitive Special Proxy Statement, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We continue to be very excited about the potential changes at MSC Income Fund that are detailed in its recent Definitive Special Proxy Statement filing, which are the result of our continued efforts to find the best long-term outcome for all MSC Income Fund stakeholders. We believe that the planned activities and changes represent significant catalysts to the future growth of MSC Income Fund and strengthen its ability to continue to provide its shareholders with an attractive recurring and growing quarterly dividend and favorable total shareholder returns through a transition of MSC Income Fund's investment strategy and investment portfolio to be solely focused on its private loan investment strategy. We also understand that an option for liquidity is a valuable feature of any investment, so we are pleased that the Definitive Special Proxy Statement is a significant step in providing all MSC Income Fund shareholders the benefits of an equity security that is listed on a national securities exchange."
Mr. Hyzak continued, "At the same time, we believe these planned activities and changes provide significant future benefits to Main Street's asset management business through the opportunity to grow the management fees that our wholly owned adviser receives from MSC Income Fund as it executes its growth plans. The changes also increase the future growth potential of our lower middle market investment portfolio as a result of MSC Income Fund's planned transition to a private loan only investment strategy. We look forward to sharing additional details of the expected future benefits to the shareholders of both Main Street and MSC Income Fund and the potential timing of a Listing and to executing on the plans detailed in MSC Income Fund's Definitive Special Proxy Statement."
Main Street believes that a Listing, and actions taken in connection therewith, would provide several benefits to MSC Income stakeholders, including, but not limited to the following:
- an opportunity for the significant growth of MSC Income through near-term access to additional capital through the public capital markets;
- significant benefits for MSC Income's shareholders associated with an investment strategy intended to generate an attractive recurring and growing quarterly dividend through an intentional transition of MSC Income's investment strategy and investment portfolio to be solely focused on its private loan investment strategy, rather than its current focus primarily on its private loan investment strategy and secondarily on its lower middle market investment strategy; and
- a path to an option for full liquidity for those existing MSC Income shareholders who desire such an option.
A Listing would also provide MSC Income with the longer-term opportunity to access additional leverage capacity through a potential future reduction in its minimum asset coverage ratio from
For more information on the Definitive Special Proxy Statement and the related MSC Income activities, including a supplemental presentation outlining the details of MSC Income's potential Listing and the potential impacts to Main Street, we encourage our investors to visit the Presentations section of the Main Street website at https://www.mainstcapital.com/investors/news-events/presentations.
IMPORTANT NOTICE
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of Main Street or MSC Income. The full details of the MSC Income proposals to be considered at the MSC Income Special Meeting (the "Proposals") are included in the Definitive Special Proxy Statement, which MSC Income filed with the SEC on September 3, 2024. You should carefully read the Definitive Special Proxy Statement because it contains important information about the MSC Income Special Meeting and the Proposals.
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, also maintains an asset management business through which it manages investments for external parties, the largest of which is MSC Income. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
ABOUT MSC INCOME FUND, INC.
MSC Income (www.mscincomefund.com) is a principal investment firm primarily focused on providing debt capital to middle market companies and customized debt and equity financing to lower middle market companies. MSC Income's lower middle market portfolio companies generally have annual revenues between
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements, which are based upon Main Street and MSC Income management's current expectations and are inherently uncertain and which involve substantial risks and uncertainties. These forward-looking statements include, without limitation, statements relating to the following: the completion of certain proposed transactions by MSC Income, including a Listing, any potential follow-on public equity offering and the completion of certain other transactions; MSC Income's planned transition to focus on its private loan investment strategy; MSC Income's potential to access additional leverage and to reduce the minimum asset coverage requirement applicable to it under the Investment Company Act of 1940, as amended; the declaration and payment of future dividends; MSC Income providing a path to an option for full liquidity for its shareholders; MSC Income, Main Street or their respective shareholders achieving any benefits from any of the foregoing; and anticipated approvals relating to the MSC Income Special Meeting. The use of words such as "anticipates," "believes," "intends," "plans," "expects," "projects," "estimates," "will," "should," "may" and similar expressions identify any such 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 or MSC Income's control, and that Main Street and MSC Income may or may not have considered; accordingly, such forward-looking statements are not guarantees or assurances of future performance or events and are subject to various risks and uncertainties. Certain factors could cause actual results, conditions and events to differ materially from those projected or anticipated, including the risks and uncertainties associated with (i) the timing or likelihood of the completion of the proposed transactions by MSC Income described in the Definitive Special Proxy Statement, (ii) the timing or likelihood of the commencement and/or completion of any Listing and/or any potential follow-on public equity offering and uncertainty with respect to the trading levels of shares of MSC Income's common stock following any Listing, (iii) the possibility that MSC Income may fail to obtain the requisite shareholder approval for one or more of the Proposals, (iv) regulatory factors and general economic, political and market conditions at the time of any potential future transaction or event referenced in this communication, as well as other external factors, (v) changes in laws or regulations or interpretations of current laws and regulations that could impact implementation of one or more of the Proposals or the transactions contemplated thereby, (vi) MSC Income's or Main Street's plans, expectations, objectives and intentions, as a result of any potential future transaction or event referenced in this communication, and (vii) other factors enumerated in Main Street's and MSC Income's filings with the SEC. You should not place undue reliance on such forward-looking statements, which speak only as of the date of this communication. None of Main Street, MSC Income or any of their affiliates undertakes any obligation to update any forward-looking statements made herein, unless required by law. Therefore, you should not rely on these forward-looking statements as representing the views of Main Street, MSC Adviser, MSC Income or any of their affiliates as of any date subsequent to the date of this communication. You should read this communication and the documents referenced in this communication completely and with the understanding that actual future events and results may be materially different from expectations. All forward-looking statements included in this communication are qualified by these cautionary statements.
NO OFFER OR SOLICITATION
This communication is not, and under no circumstances is it to be construed as, a prospectus or an advertisement. Nothing in this communication shall constitute an offer to sell, or a solicitation of an offer to buy, any securities and this communication should not be interpreted or construed as such. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended, or an exemption therefrom.
Information contained on our website or MSC Income's website is not incorporated by reference into this communication.
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
What is the purpose of MSC Income Fund's Definitive Proxy Statement filed on September 3, 2024?
How might the proposed changes affect Main Street Capital (NYSE: MAIN)?
What are the potential benefits for MSC Income Fund shareholders if the proposals are approved?
When is the Special Meeting for MSC Income Fund shareholders scheduled?
