Main Street Announces Amendment of its Corporate Credit Facility

Rhea-AI Summary

Main Street Capital (NYSE: MAIN) has successfully amended its revolving credit facility with several key improvements. The amendment includes a reduction in interest rates to SOFR plus 0.10% plus either 1.775% or 1.65% (based on certain conditions). The facility's total commitments have been increased from $1.110 billion to $1.145 billion, with an accordion feature allowing expansion up to $1.718 billion. Additionally, the amendment extends both the revolving period to April 2029 and the final maturity date to April 2030. The facility maintains flexibility with options for up to two additional years of extension, subject to conditions and lender approval, while preserving its diverse lending group of 19 lenders.

Positive

• Decreased interest rate on the credit facility, reducing borrowing costs
• Increased total commitments by $35 million to $1.145 billion
• Extended maturity date to April 2030, providing longer-term funding stability
• Maintained accordion feature allowing expansion up to $1.718 billion
• Preserved diverse lending group of 19 lenders

Negative

• None.

News Market Reaction

-1.74%

1 alert

-1.74% News Effect

On the day this news was published, MAIN declined 1.74%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Interest Rate Decreased

Total Commitments Increased to $1.145 Billion

Final Maturity Date Extended to April 2030

HOUSTON, May 1, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the amendment of its revolving credit facility (the "Corporate Facility"). The recently closed amendment decreases the interest rate to the applicable Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment of 0.10% plus (a) 1.775% prior to satisfying certain step-down conditions or (b) 1.65% after satisfying certain step-down conditions. The amendment also provides an increase in total commitments from $1.110 billion to $1.145 billion, while maintaining an expanded accordion feature that allows for an increase up to $1.718 billion of total commitments from new and existing lenders on the same terms and conditions as the existing commitments and maintaining the benefits of a diversified group of 19 lenders. The amendment also extends both the revolving period, or reinvestment period, and the final maturity date through April 2029 and to April 2030, respectively. In addition, Main Street continues to maintain options under the amended Corporate Facility which could extend each of the revolving period and the final maturity of the Corporate Facility for up to two additional years, subject to certain conditions, including lender approval.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. 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 customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements, including but not limited to the availability of future financing capacity under its credit facilities, which are based upon Main Street management's current expectations and are inherently uncertain. 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 control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.

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

View original content:https://www.prnewswire.com/news-releases/main-street-announces-amendment-of-its-corporate-credit-facility-302443501.html

SOURCE Main Street Capital Corporation

FAQ

What changes were made to Main Street Capital's (MAIN) credit facility in May 2025?

Main Street Capital amended its credit facility to reduce interest rates, increase total commitments from $1.110B to $1.145B, and extend the maturity date to April 2030. The facility maintains an accordion feature up to $1.718B.

What is the new interest rate structure for MAIN's corporate credit facility?

The new interest rate is SOFR plus 0.10% plus either 1.775% (before meeting step-down conditions) or 1.65% (after meeting step-down conditions).

When does Main Street Capital's (MAIN) amended credit facility mature?

The amended credit facility matures in April 2030, with options for up to two additional years of extension subject to conditions and lender approval.

How many lenders are participating in MAIN's corporate credit facility?

Main Street Capital maintains a diverse lending group of 19 lenders in its corporate credit facility.