Main Street Capital Launches $100 Million Note Offering
Main Street Capital Launches $100 Million Note Offering
Main Street Capital Corporation (NYSE: MAIN) is excited to announce its latest underwritten public offering for an additional $100 million worth of 6.50% notes due in 2027, which signifies a robust market response. The pricing for these notes is at a premium; specifically, the public offering price stands at 102.134% of the principal amount, aiming to yield approximately $102.1 million in gross proceeds with a yield-to-maturity of 5.617%.
Details of the Offering
This new note issuance is part of Main Street's strategy to optimize its capital structure. The current offering expands on the existing 6.50% notes due 2027, issued previously with an aggregate amount of $300 million. The new notes will share identical terms as the existing notes and are categorized under the same CUSIP number. Thus, upon release, the total outstanding amount for these notes will reach $400 million.
Use of Proceeds
The net proceeds from this offering are set to primarily service outstanding debts, which include the balances under Main Street's corporate revolving credit facility and its special purpose vehicle revolving credit facility. Subsequently, Main Street plans to reuse its re-borrowed funds for strategic investments aligned with its objectives and corporate strategies. These investments will include marketable securities, operational expenses, and general business purposes.
Participating Financial Institutions
A consortium of financial institutions is facilitating the offering, including prominent firms such as Truist Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and SMBC Nikko Securities America, Inc. They serve as joint bookrunners, providing a breadth of experience in capital markets.
Investment Considerations
Investors interested in the notes should engage with the comprehensive details surrounding the offering, including potential risks involved. Main Street advises a careful review of their investment objectives and strategies in relation to this offering. Essential documents related to the offering, including the preliminary prospectus and pricing term sheet, are available for review and provide deeper insights.
About Main Street Capital Corporation
Main Street Capital Corporation is a principal investment firm devoted to supporting lower middle market companies through long-term debt and equity capital. Their investment portfolio is diverse, covering various sectors and including management buyouts, recapitalizations, and acquisitions. Their services provide crucial capital solutions designed to foster business growth.
Asset Management Services
Beyond direct investments, Main Street also operates an asset management division through its subsidiary MSC Adviser I, LLC. Registered under federal laws, this partition manages investments for external parties, further diversifying its operational focus.
Frequently Asked Questions
What is the total amount of the notes being offered?
Main Street is offering a total of $100 million in 6.50% notes due 2027.
Who are the joint bookrunners for this offering?
The joint bookrunners include Truist Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and SMBC Nikko Securities America, Inc.
What is the expected use of proceeds from the note offering?
Proceeds will primarily be used to repay existing debt and for general corporate purposes including investments in accordance with Main Street's objectives.
How does Main Street Capital define lower middle market companies?
Lower middle market companies are generally defined as those having annual revenues between $10 million and $150 million.
What are the common investment focus areas for Main Street?
Main Street primarily focuses on management buyouts, recapitalizations, and acquisitions of businesses across diverse sectors.
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