HOUSTON - Main Street Capital Corporation (NYSE: NYSE:MAIN), a principal investment firm, has announced the pricing of a public offering of $300 million in notes with a 6.50% annual interest rate, due June 4, 2027. The notes are set to mature on the specified date and feature semiannual interest payments.
Main Street has the option to redeem the notes, in whole or in part, at any time at par plus a "make-whole" premium if applicable. The offering is expected to close on June 4, 2024, subject to customary closing conditions.
The company plans to use the net proceeds to repay existing debts, such as those under its corporate and special purpose vehicle revolving credit facilities. Subsequently, Main Street aims to re-borrow under these facilities to finance investments aligned with its investment objectives and strategies, purchase marketable securities, cover operating expenses, and for general corporate purposes.
The joint bookrunners for this offering are Truist Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and SMBC Nikko Securities America, Inc. Moreover, several other financial institutions are serving as co-managers.
Investors are urged to carefully consider Main Street's investment objectives, strategies, and the associated risks before investing. Important information about the company and the offering is available in the pricing term sheet, the preliminary prospectus supplement, and the accompanying prospectus, all of which have been filed with the Securities and Exchange Commission.
Main Street Capital Corporation specializes in providing long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. It focuses on partnering with entrepreneurs, business owners, and management teams, offering financing solutions to support various corporate activities.
The company also manages investments for external parties through its wholly owned portfolio company, MSC Adviser I, LLC, which is a registered investment adviser.
This press release includes forward-looking statements regarding the notes offering and the anticipated use of the net proceeds, which are subject to uncertainties and are based on management's current expectations.
This article is based on a press release statement from Main Street Capital Corporation.
InvestingPro Insights
As Main Street Capital Corporation (NYSE: MAIN) positions itself with a fresh public offering of notes, savvy investors may find the company's financial health and market performance to be of particular interest. With a robust market capitalization of $4.13 billion and a compelling P/E ratio of 8.79, Main Street stands out in the financial sector.
The company's revenue growth further underscores its fiscal strength, showcasing a significant year-over-year increase of 22.51% in the last twelve months as of Q1 2024. This growth is complemented by a quarterly revenue upswing of 9.44% in Q1 2024, reflecting Main Street's consistent performance.
InvestingPro Tips reveal that Main Street has not only raised its dividend for three consecutive years but also pays a substantial dividend to shareholders, with a notable dividend yield of 7.86%. This commitment to returning value to shareholders is further evidenced by the company's track record of maintaining dividend payments for 18 consecutive years. Moreover, the company's stock generally trades with low price volatility, offering a degree of predictability in an otherwise fluctuating market.
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