HG bonds: Main Street Capital returns with 2026 refi-driven notes; terms

Main Street Capital Corp. today completed a $300 million offering of 3% five-year senior notes due July 14, 2026, at T+270, or 3.199%.

Proceeds will be used to repay outstanding debt borrowed under the company's credit facility, according to regulatory filings.

In April 2019, Main Street Capital completed a $250 million offering of 5.2% notes due May 1, 2024. Subsequently, in December 2019, it added a $75 million reopening to the existing 2024 notes at a sub-coupon of 3.951%. Finally, in July 2020, the company added a $125 million tap to the 2024 issue at a sub-coupon 4.418%.

Houston-based Main Street Capital is a business development company specializing in long-term equity, equity-related, and debt investments in small and lower-middle-market companies.

S&P Global Ratings maintains a stable outlook on its BBB- rating. The agency lowered its rating by one notch, from BBB, in March 2020 as a result of the economic impact of the COVID-19 pandemic.

"The stable outlook reflects Main Street Capital Corp.'s very strong capital position, long track record of good performance, and diversity of funding sources. Over the next 12 months, S&P Global Ratings expects the company to operate with total debt to adjusted total equity (ATE) of less than 1.0x, a substantial cushion to the minimum 200% asset coverage ratio, and debt (excluding Small Business Investment Co. debt) to reported equity below 0.85x," S&P Global Ratings said in September 2020. Terms: