Street Calls of the Week
Main Street Capital Corporation (NYSE:MAIN), a business development company with a market capitalization of $5.9 billion and an impressive InvestingPro Financial Health Score of "GREAT," completed the issuance and sale of $350 million in aggregate principal amount of 5.40% notes due 2028. The transaction closed Friday, according to a statement in a press release based on a recent SEC filing.
The notes, which were issued under an underwriting agreement with J.P. Morgan Securities LLC as representative of the underwriters, will mature on August 15, 2028, unless earlier redeemed or repurchased according to their terms. The notes bear cash interest at an annual rate of 5.40%, payable semiannually on February 15 and August 15 each year, beginning February 15, 2026. This debt offering comes as the company maintains a healthy dividend yield of 5.9% and has maintained dividend payments for 19 consecutive years, according to InvestingPro data.
The notes are unsecured obligations of Main Street Capital and rank equally with the company’s existing and future unsecured indebtedness. They are effectively subordinated to all secured indebtedness and structurally subordinated to the debt and obligations of Main Street’s subsidiaries and financing vehicles.
Main Street may redeem the notes, in whole or in part, at its option before July 15, 2028, at a price calculated according to the terms specified in the indenture, or at par plus accrued interest on or after that date. In the event of a change of control repurchase event, holders of the notes can require Main Street to repurchase the notes at 100% of the principal amount plus accrued and unpaid interest. The company’s strong financial position is evidenced by its current ratio of 2.09, indicating sufficient liquid assets to meet short-term obligations.
The net proceeds from the offering were approximately $347.7 million after underwriting discounts and estimated offering expenses. Main Street Capital stated it intends to initially use the net proceeds to repay outstanding indebtedness, including amounts under its credit facilities.
The notes were issued under an Eighth Supplemental Indenture dated August 15, 2025, between Main Street and The Bank of New York Mellon Trust Company, N.A., as trustee. The offering was made pursuant to an effective shelf registration statement previously filed with the SEC.
This report is based on information provided in a press release statement and a filing with the Securities and Exchange Commission. For a comprehensive analysis of Main Street Capital’s financial health, growth prospects, and additional investment insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Main Street Capital Corporation reported its second-quarter 2025 earnings, meeting expectations with an earnings per share (EPS) of $0.99. The company’s revenue exceeded forecasts, coming in at $144 million, which was a 5.04% surprise. In addition to its earnings report, Main Street Capital has priced an underwritten public offering of $350 million in aggregate principal amount of notes due in 2028. These notes will bear an interest rate of 5.40% per year and are expected to close on August 15, 2025.
Truist Securities has raised its price target for Main Street Capital to $64.00 from $54.00, maintaining a Hold rating on the stock. The firm highlighted the company’s successful Lower Middle Market (LMM) strategy and strong performance as key factors in the price target increase. These developments reflect the company’s strategic direction and financial health, as emphasized by Truist Securities.
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