Main Street Capital Corp (NYSE:MAIN) has successfully entered into an agreement to issue an additional $100 million of 6.50% notes due 2027, according to a recent SEC filing. The agreement, dated September 11, 2024, involves the sale of the new notes as an addition to the existing $300 million of the same series issued on June 4, 2024.
The notes, which will mature on June 4, 2027, bear interest payable semiannually and are direct unsecured obligations of Main Street. They rank equally with the company's existing and future unsecured indebtedness and are effectively subordinated to secured indebtedness and to the debt of Main Street's subsidiaries.
Main Street may redeem the notes before May 4, 2027, at a price greater than the sum of the present values of the remaining scheduled payments or 100% of the principal amount, plus accrued interest. After this date, redemption is at 100% of the principal plus interest. In case of a change of control, note holders have the right to require Main Street to repurchase the notes at 100% of the principal plus accrued interest.
The offering, which was closed and funded today, raised net proceeds of approximately $101.3 million after underwriting discounts and estimated offering expenses. Main Street intends to use these funds to repay outstanding indebtedness, including amounts under its credit facilities.
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