Main Street Capital prices $200 million note offering at premium

Main Street Capital Corporation (NYSE: MAIN) priced an underwritten public offering of $200 million in aggregate principal amount of its 6.95% notes due 2029, the company announced March 27.

The notes are being issued at a premium to par at a public offering price of 102.061% of the principal amount per note, resulting in estimated gross proceeds of approximately $204.1 million and a yield-to-worst of 6.146%.

The new notes represent a further issuance of the 6.95% notes due 2029 that Main Street initially issued on January 12, 2024, in an aggregate principal amount of $350 million. The new notes will be treated as a single series with the existing notes under the indenture and will have identical terms. Upon issuance of the new notes, the outstanding aggregate principal amount of Main Street's 6.95% notes due 2029 will total $550 million.

The offering is subject to customary closing conditions and is expected to close on March 31, 2026.

Main Street intends to use the net proceeds initially to repay outstanding indebtedness, including amounts under its corporate revolving credit facility and special purpose vehicle revolving credit facility. The company plans to then re-borrow under the credit facilities to make investments in accordance with its investment objective and strategies, invest in marketable securities and idle funds investments, pay operating expenses and other cash obligations, and for general corporate purposes.

RBC Capital Markets, J.P. Morgan Securities, SMBC Nikko Securities America and Truist Securities are acting as joint book-runners for the offering. Multiple firms are serving as co-managers, including Huntington Securities, Raymond James & Associates, Academy Securities, Zions Direct, TCBI Securities, Hancock Whitney Investment Services, Comerica Securities, FNB America Securities and B. Riley Securities.

Main Street is a principal investment firm that provides debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or being acquired by private equity funds.

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