#United States #Houston #Main Street Capital #SPV Credit Facility #MSCC Funding

Main Street Capital Corporation Enhances SPV Credit Facility

On April 24, 2025, Main Street Capital Corporation (NYSE: MAIN) made a significant announcement regarding its wholly-owned subsidiary, MSCC Funding I, LLC, which operates in the financial sector. The company has recently amended its special purpose vehicle (SPV) revolving credit facility, marking a strategic move aimed at improving financial terms for the organization.

Key Features of the Amendment

The recent amendment to the SPV Credit Facility presents several advantageous changes. Notably, it reduces the interest rate applicable during the revolving period to the one-month term Secured Overnight Financing Rate (Term SOFR) plus 1.95%. This change is a decrease from the previous rate of Term SOFR plus 2.35%.

Further, for the first and second years following the end of the revolving period, the interest rates have also been adjusted downward to Term SOFR plus 2.075% and 2.20%, respectively, compared to the former rates of Term SOFR plus 2.475% and 2.60%.

In addition to the reduced interest rates, the amendment extends the revolving period, or reinvestment period, by an additional year, now running through September 2028. Furthermore, the final maturity date has been extended to September 2030, thereby enhancing the long-term financial outlook for the SPV Facility.

Another notable enhancement is the reduction in the unused fee from 0.50% to 0.40% on the amount that remains unused, specifically for amounts up to 50%, which was previously limited to 35% of the commitment amount.

About Main Street Capital Corporation

Founded with an objective of becoming a leading player in providing financial solutions, Main Street Capital Corporation primarily focuses on offering customized long-term debt and equity capital to lower middle-market companies. The firm frequently collaborates with business owners, private equity fund sponsors, and management teams, thereby enabling a tailored financing approach suited to specific needs.

Main Street is recognized for its commitment to delivering a comprehensive suite of financial products, thereby supporting management buyouts, growth financings, and as part of their investment strategy, providing secured debt solutions to private enterprises that yield considerable financial returns. Typically, their portfolio companies generate annual revenues ranging from $10 million to $150 million for the lower middle-market segment, while their private loan portfolio comprises firms with revenues between $25 million and $500 million annually.

As part of its diversified financial operations, Main Street also manages assets through its subsidiary, MSC Adviser I, LLC, which acts as an investment adviser under the Investment Advisers Act of 1940.

Looking Ahead

The strategic amendments made to the SPV Credit Facility signify Main Street's proactive approach in navigating the financial landscape and ensuring its portfolio remains robust and flexible, even in fluctuating market conditions. With these updates, the firm is positioned to not only support its growth but also the growth of its partner businesses in a diversified array of industries. Main Street intends to continue facilitating corporate transformations through improved financial strategies that foster long-term partnerships and sustainable growth.

The forward-looking statements included in this release are indicative of Main Street’s optimism for the future, reinforcing its commitment to its stakeholders, employees, and clients.

For more detailed insights into Main Street Capital Corporation’s offerings or to seek financial solutions tailored to specific business needs, interested parties can visit Main Street Capital’s website.