Main Street to raise $111 million for lower-middle-market investments

By Toni Weeks

San Luis Obispo, Calif., March 11 – Main Street Capital Corp. will raise $111,416,000 in its public offering of shares announced Tuesday, according to a 497 filing with the Securities and Exchange Commission.

The company will sell 3.8 million shares at $29.32 each. The underwriters may also exercise their option to sell an additional 570,000 shares for 30 days to satisfy over-allotments.

The internally managed, closed-end, non-diversified management investment company seeks to maximize portfolio total return by generating current income from debt investments and capital appreciation from equity and equity-related investments. The company focuses primarily on providing customized debt and equity financing to lower-middle-market companies and debt capital to middle-market companies.

Raymond James & Associates, Inc., Robert W. Baird & Co. Inc. and RBC Capital Markets, LLC are the joint bookrunning managers. Sanders Morris Harris Inc. is the co-manager.

The last sales price of the company’s stock on March 9 was $31.14 (NYSE: MAIN).

Settlement is expected March 13.

Proceeds will initially be used to repay outstanding debt under the company’s credit facility. Main Street intends to reborrow from the facility to make further investments, according to the filing.

The sales load is 5.84%. Including operating expenses of 2.52%, total annual expenses are expected to be 6.99%.

Houston-based Main Street Capital Partners, LLC is the investment manager.

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