Main Street Capital Corp.'s Proposed $300 Million Senior Unsecured Notes Due 2027 Rated 'BBB-'

NEW YORK (S&P Global Ratings) May 28, 2024--S&P Global Ratings today assigned its 'BBB-' debt rating to Main Street Capital Corp.'s proposed issuance of $300 million senior unsecured notes due 2027. The company initially intends to use the net proceeds to repay existing borrowings under its two credit facilities ($616 million outstanding as of May 24, 2024). As of March 31, 2024, Main Street (BBB-/Stable/--) had an asset coverage ratio of 241% and leverage--as measured by debt to adjusted total equity (ATE)--of 1.03x. We adjust equity by reversing the unrealized appreciation (or depreciation) on the balance sheet, as well as equity investments in leveraged finance companies or structured finance vehicles. As of March 31, 2024, the company's nonaccrual loans at

...May 28, 2024 NEW YORK (S&P Global Ratings) May 28, 2024--S&P Global Ratings today assigned its '###-' debt rating to Main Street Capital Corp.'s proposed issuance of $300 million senior unsecured notes due 2027. The company initially intends to use the net proceeds to repay existing borrowings under its two credit facilities ($616 million outstanding as of May 24, 2024). As of March 31, 2024, Main Street (###-/Stable/--) had an asset coverage ratio of 241% and leverage--as measured by debt to adjusted total equity (ATE)--of 1.03x. We adjust equity by reversing the unrealized appreciation (or depreciation) on the balance sheet, as well as equity investments in leveraged finance companies or structured finance vehicles. As of March 31, 2024, the company's nonaccrual loans at cost were 2.5% of loans at cost (versus 2.9% at year-end 2023), and payment-in-kind (PIK) income was 2.7% of gross investment income for the 12 months ended March 2024 (versus 2.1% a year ago). Because of higher-for-longer...

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