Welcome to our dedicated page for Main Street Capital Corporation news (Ticker: MAIN), a resource for investors and traders seeking the latest updates and insights on Main Street Capital Corporation stock.
Main Street Capital Corporation (NYSE: MAIN) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. The company's portfolio investments typically support management buyouts, recapitalizations, growth financings, refinancings, and acquisitions across various industry sectors. Main Street's lower middle market investments target companies with annual revenues between $10 million and $150 million, offering a 'one-stop' financing solution for entrepreneurs, business owners, and management teams. In contrast, its middle market investments focus on larger businesses.
Recent milestones include:
- In Q4 2023, Main Street reported new or increased commitments in its private loan portfolio amounting to $136.8 million, with investments totaling $160.4 million, bringing the private loan portfolio to around $1.5 billion across 87 unique borrowers.
- Preliminary Q4 2023 results show a record net investment income per share, a new high for net asset value per share for the sixth consecutive quarter, and a return on equity exceeding 22% for the quarter.
- For the full year 2023, Main Street achieved a 19% return on equity, with distributable net investment income per share setting annual records.
Strategic partnerships and diversified investment strategies have enabled Main Street to maintain a conservative capital structure while delivering significant shareholder value. In January 2024, the company issued $350 million in unsecured notes at 6.95%, further solidifying its financial foundation.
Main Street also manages external investments through its wholly-owned subsidiary MSC Adviser I, LLC, which is registered as an investment adviser. This asset management business, which ended 2023 with $1.5 billion in assets under management, contributes substantially to the company's net investment income.
Main Street's robust pipeline and strong performance trends indicate ongoing growth and value creation for stakeholders. For more information, visit the company's website at www.mainstcapital.com.
Main Street Capital (NYSE: MAIN) has completed a new portfolio investment of $11.2 million to facilitate the majority recapitalization of MoneyThumb, Inc., a leading software-as-a-service provider of financial file conversion, reconciliation, and analysis software. The investment includes a combination of first lien, senior secured debt with equity warrant participation and a direct minority equity investment.
MoneyThumb, founded in 2014 and based in Encinitas, California, primarily supports merchant cash advance (MCA) customers through document automation products that analyze applicant bank statements for underwriting processes. The company also offers a proprietary fraud detection product called Thumbprint and serves accounting and bookkeeping customers with document conversion services. MoneyThumb is expanding its product offerings into adjacent segments, including the small to medium business lending industry.
Main Street Capital (NYSE: MAIN) reported its Q2 2024 results, highlighting a net investment income of $87.3 million ($1.01 per share) and distributable net investment income of $92.3 million ($1.07 per share). Total investment income was $132.2 million. Net asset value (NAV) increased to $29.80 per share from $29.54 in Q1 2024. The company declared regular monthly dividends totaling $0.735 per share for Q3 2024, and a supplemental dividend of $0.30 per share, enhancing shareholder returns.
Key metrics include:
- Net increase in net assets: $102.7 million (16.1% ROI).
- Investment activity: $154.5 million in lower middle market (LMM) and $323.8 million in private loans.
- Capital structure: Issued $300 million in senior unsecured notes and increased total commitments under the Corporate Facility to $1.110 billion.
Despite a 4% YoY decline in net investment income per share, Main Street continues to show robust investment activity and a strong dividend growth trend.
Main Street Capital (NYSE: MAIN) has announced key promotions in its finance, accounting, and treasury departments, effective August 12, 2024.
Ryan R. Nelson will step into the roles of Chief Financial Officer and Treasurer, replacing Jesse E. Morris, who will continue as Executive Vice President, Chief Operating Officer, and Senior Managing Director. Nelson has been with Main Street since December 2022 and has prior experience at Conn's Inc. and EnLink Midstream Partners.
Cory E. Gilbert is promoted to Chief Financial Officer – Asset Management Business, having joined Main Street in November 2020. He has previous experience with Oak Hill Advisors and ORIX USA.
Ryan H. McHugh will become Vice President, Chief Accounting Officer, and Assistant Treasurer. McHugh joined Main Street in May 2024 and has a background at Academy Sports + Outdoors, Glori Energy, Stewart Title Company, and Grant Thorton.
Main Street Capital (NYSE: MAIN) has announced its fourth quarter 2024 regular monthly dividends and a supplemental dividend for September 2024. The company declared regular monthly cash dividends of $0.245 per share for October, November, and December 2024, totaling $0.735 per share for the quarter. This represents a 4.3% increase from the fourth quarter of 2023. Additionally, a supplemental cash dividend of $0.30 per share will be paid in September 2024.
The total dividends declared amount to $1.035 per share, offering an annualized current yield of 8.8% based on the closing price of $47.05 on August 5, 2024. Since its IPO in October 2007, Main Street has paid $42.625 per share in cumulative cash dividends and has never reduced its regular monthly dividend amount.
Main Street Capital (NYSE: MAIN) announced that MSC Income Fund, Inc., a non-listed BDC managed by Main Street's wholly owned adviser, has filed a Preliminary 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.
The proposed changes include:
- Transitioning MSC Income's strategy to focus solely on Private Loan investments
- Amending the investment advisory agreement to align with this new focus
- Providing liquidity options for existing shareholders
- Enabling significant growth through access to public capital markets
These changes are expected to benefit both MSC Income and Main Street shareholders, offering growth opportunities and increased management fees for Main Street's asset management business.
Main Street Capital (NYSE: MAIN) has announced preliminary operating results for Q2 2024, highlighting strong performance with a new record for net asset value per share for the eighth consecutive quarter. The company's estimated distributable net investment income (DNII) per share exceeded dividends paid to shareholders by over 48.5% for monthly dividends and over 4.5% for total dividends.
Key preliminary estimates include:
- Net investment income (NII) of $1.00 to $1.02 per share
- DNII of $1.06 to $1.08 per share
- NAV per share of $29.77 to $29.83, a 0.8% to 1.0% increase from Q1 2024
- Quarterly annualized return on equity of 15% to 17%
The company reported significant investment activity, with net increases in both lower middle market and private loan investment portfolios.
Main Street Capital announced its second-quarter 2024 activities in its private loan portfolio, originating $375.9 million in new or increased commitments and funding $323.8 million in investments.
Notable investments included $107.6 million in a first lien senior secured loan and $15.4 million in a revolver for a custom component manufacturer, $47.5 million in a senior secured loan and $10.5 million in a revolver for a talent advisory solutions provider, and $52.8 million in a senior secured loan and $6.2 million in a revolver for a datacenter services provider.
As of June 30, 2024, the portfolio totaled $1.8 billion across 92 borrowers, with 95.4% in first lien debt and 4.6% in equity or other securities.
Main Street Capital (NYSE: MAIN) has amended its revolving credit facility, increasing total commitments from $995 million to $1.110 billion. The amendment also extends the final maturity of the facility to June 2029, with $1.035 billion maturing by that date and $75 million maturing by August 2027. The facility now includes 19 lenders and maintains an accordion feature allowing for up to $1.665 billion in total commitments under the same terms. Main Street retains two one-year extension options, subject to lender approval, potentially extending the maturity by two additional years.
Main Street Capital (NYSE: MAIN) has announced two significant transactions. The first is a $36.9 million investment in Nello Industries, to facilitate a management-led buyout. Nello, a manufacturer of engineered poles and towers, received a combination of first lien, senior secured term debt, a direct equity investment, and a revolving line of credit from Main Street and its co-investor to support future growth.
The second involves a partial exit from a Lower Middle Market portfolio company after the company's combination with a strategic acquirer. Main Street realized a $10.4 million gain from selling the company’s operating assets and holds a minority equity ownership in the acquirer. Additionally, Main Street has earned $10.1 million in dividends and achieves an annual IRR of 53.2% and a 4.6x money invested return on its equity investment. On a cumulative basis, including both debt and equity investments, the IRR is 22.1% with a 1.7x money invested return.
Main Street Capital (NYSE: MAIN) has invested $32.8 million in a leading provider of supply chain management services for U.S. federal government agencies.
The investment is aimed at supporting the Company's acquisition of an equipment sales and rental solutions provider for U.S. federal government agencies, aligning with Main Street's growth strategy.
Main Street funded $32.8 million of first lien, senior secured term debt with equity warrant participation. The Company has over 30 years of experience in supporting U.S. and allied government agencies with procurement logistics and global supply chain management services.
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