Main Street Capital CORP 8-K, filed Jul 14, 2022
Main Street Capital CORP (MAIN)
About this 8-K
Main Street Capital CORP filed this 8-K on July 14, 2022, reporting on events of July 13, 2022.
Items reported
- Item 2.02: Financial results
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 13, 2022
Main Street Capital Corporation
(Exact name of registrant as specified in its charter)
Maryland |
| 001-33723 |
| 41-2230745 |
(State or other jurisdiction |
| (Commission File Number) |
| (IRS Employer Identification No.) |
| 1300 Post Oak Boulevard, 8th Floor, Houston, Texas | 77056 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code: 713-350-6000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | MAIN | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. | Results of Operations and Financial Condition. |
On July 13, 2022, the Registrant issued a press release. A copy of such press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
Item 8.01 | Other Events. |
On July 14, 2022, the Registrant issued a press release. A copy of such press release is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01. | Financial Statements and Exhibits. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| Main Street Capital Corporation (Registrant) | |
July 14, 2022 (Date) |
| By: | /s/ Jason B. Beauvais |
| | Name: | Jason B. Beauvais |
| | Title: | General Counsel |
Exhibit 99.1
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO and COO, jmorris@mainstcapital.com
713-350-6000
Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600
NEWS RELEASE
Main Street Announces Second Quarter 2022 Private Loan Portfolio Activity
HOUSTON – July 13, 2022 – Main Street Capital Corporation (NYSE: MAIN) (“Main Street”) is pleased to announce the following recent activity in its private loan portfolio. During the second quarter of 2022, Main Street originated approximately $187.3 million in new commitments in its private loan portfolio across six new and three existing borrowers and funded total investments across its private loan portfolio with a cost basis totaling approximately $182.1 million.
The following represent notable new and increased private loan commitments and investments during the second quarter of 2022:
| • | $29.6 million in a first lien senior secured loan and $3.6 million in a first lien senior secured revolver to a health focused company specializing in dietary supplements; |
| • | $17.0 million in a first lien senior secured loan, $3.7 million in a first lien senior secured revolver and $10.5 million in a first lien senior secured delayed draw loan to a provider of media intelligence solutions software; |
| • | $26.8 million in a first lien senior secured loan and $4.2 million in a first lien senior secured revolver to a provider of solutions for managing software-as-a-service applications; |
| • | $16.4 million in a first lien senior secured loan and $2.6 million in a first lien senior secured revolver to a defense contractor providing engineering and technical services to government agencies; |
| • | $17.8 million in a first lien senior secured loan and $1.2 million in a first lien senior secured delayed draw loan to a managed security provider offering cyber security and network monitoring to multi-site businesses; |
| • | $6.2 million in a first lien senior secured loan, $1.2 million in a first lien senior secured revolver and $9.2 million in a first lien senior secured delayed draw loan to a case and program management software business for social organizations; |
| • | Increased commitments of $13.5 million in a first lien senior secured loan to a manufacturer and distributor of charitable gaming supplies; |
| • | Increased commitments of $12.9 million in a first lien senior secured loan to a provider of emergency and disaster response, facility management and environmental services to corporate clients across the United States and Canada; and |
| • | Increased commitments of $10.9 million in a first lien senior secured loan to a healthcare logistics and courier service company. |
As of June 30, 2022, Main Street’s private loan portfolio included total investments at cost of approximately $1.3 billion across 82 unique borrowers. The private loan portfolio, as a percentage of cost, included 95.5% invested in first lien debt investments, 0.4% invested in second lien debt investments and 4.1% invested in equity investments or other securities.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. 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 “one stop” financing alternatives within its
lower middle market investment strategy. Main Street’s lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
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.
Exhibit 99.2
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO and COO, jmorris@mainstcapital.com
713-350-6000
Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600
NEWS RELEASE
Main Street Announces Investment Grade Rating from Fitch Ratings, Inc.
Main Street Receives BBB- Rating with Stable Outlook
HOUSTON, July 14, 2022 – Main Street Capital Corporation (NYSE: MAIN) (“Main Street”) is pleased to announce that Fitch Ratings, Inc. (“Fitch”) has assigned Main Street an investment grade credit and corporate rating of BBB- with a stable outlook. Factors cited by Fitch in support of its rating include Main Street’s portfolio focus on senior debt investments, strong portfolio diversification, solid track record in credit and equity investments, above-average asset coverage cushion, consistent operating performance, experienced management team and strong funding flexibility with demonstrated access to the public debt and equity markets.
“We are extremely pleased with the investment grade rating assigned to us by Fitch, which is a positive reflection of our unique investment strategy, strong management team and investment underwriting and monitoring processes and the favorable credit quality and investment performance of our portfolio,” said Dwayne L. Hyzak, Main Street’s Chief Executive Officer.
Fitch stated that its stable outlook for its rating reflects its expectation that Main Street will maintain a relatively consistent portfolio mix between first lien debt and equity investments, along with consistent core earnings generation, solid asset quality, adequate asset coverage cushion and satisfactory level of unsecured funding.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. 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 “one stop” financing alternatives within its lower middle market investment strategy. Main Street’s lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street’s private loan and middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
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.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements. 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 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.
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