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 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.
Main Street Capital (NYSE: MAIN) has announced an underwritten public offering of $300 million in 6.50% notes due 2027. The notes, which will bear interest at 6.50% per year and mature on June 4, 2027, can be redeemed at any time at par plus a premium. The offering is expected to close on June 4, 2024, subject to customary conditions.
Net proceeds will be used initially to repay outstanding indebtedness under Main Street's corporate and special purpose vehicle revolving credit facilities. Subsequently, funds will be re-borrowed for investments, operating expenses, and general corporate purposes.
Joint bookrunners for this offering include Truist Securities, J.P. Morgan Securities, RBC Capital Markets, and SMBC Nikko Securities America. Co-managers include Raymond James, Regions Securities, Zions Direct, Hancock Whitney Investment Services, Texas Capital Securities, Comerica Securities, B. Riley Securities, Oppenheimer, and WauBank Securities.
Investors are advised to review the preliminary prospectus supplement and other related documents filed with the SEC before investing.
Main Street Capital (NYSE: MAIN) recently completed a follow-on investment of $25.9 million in Nebraska Vet AcquireCo, , doing business as Heritage Vet Partners, P.C. The investment supports Heritage's acquisition of Muleshoe Animal Clinic, PLLC, Muleshoe Vet Labs, , and Muleshoe Vet Supply, LP, expanding Heritage's portfolio in mixed animal practices.
This marks Main Street's ninth follow-on investment in Heritage since their initial partnership in December 2020. Heritage, founded in 1985 and headquartered in West Point, Nebraska, is a leading provider of rural, mixed, and large animal veterinary services across the U.S. Since Main Street's initial investment, Heritage has completed fourteen acquisitions, significantly enhancing its national presence.
Main Street Capital (NYSE: MAIN) announced its first quarter 2024 financial results, showing strong performance with net investment income of $1.05 per share, distributable net investment income of $1.11 per share, and a net asset value of $29.54 per share. The company recorded total investment income of $131.6 million, a return on equity of 17.2%, and completed significant lower middle market and private loan portfolio investments. Main Street also declared increased monthly dividends and a supplemental dividend, showcasing its commitment to delivering value to shareholders.
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