Main Str Cap Corp Stock Price, News & Analysis

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.

Main Street Capital (NYSE: MAIN) has announced an increase in its regular monthly dividends for July, August, and September 2024, totaling $0.735 per share for the third quarter. The dividends represent a 2.1% increase from the second quarter of 2024 and a 6.5% increase from the third quarter of 2023. In addition, a supplemental dividend of $0.30 per share will be paid in June 2024, bringing the total cumulative cash dividends to $41.59 per share since the company's IPO in October 2007. The recent dividend declarations yield an annualized 8.1% based on the closing price of $50.88 per share on May 6, 2024.