Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.24.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
Summary of Mains Street’s debt as of December 31, 2023 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 200,000  $ —  $ 200,000  $ 200,000 
SPV Facility 160,000  —  160,000  160,000 
July 2026 Notes
 500,000  (1,338) 498,662  458,105 
May 2024 Notes
 450,000  182  450,182  447,246 
SBIC Debentures 350,000  (5,465) 344,535  288,468 
December 2025 Notes
 150,000  (1,035) 148,965  151,155 
Total Debt $ 1,810,000  $ (7,656) $ 1,802,344  $ 1,704,974 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, SBIC Debentures and December 2025 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Summary of Main Street’s debt as of December 31, 2022 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 407,000  $ —  $ 407,000  $ 407,000 
SPV Facility 200,000  —  200,000  200,000 
July 2026 Notes
 500,000  (1,864) 498,136  434,250 
May 2024 Notes
 450,000  727  450,727  444,749 
SBIC Debentures 350,000  (6,086) 343,914  290,204 
December 2025 Notes
 100,000  (675) 99,325  106,607 
Total Debt $ 2,007,000  $ (7,898) $ 1,999,102  $ 1,882,810 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, SBIC Debentures and December 2025 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Schedule of Interest Expense
Summarized interest expense for the years ended December 31, 2023, 2022 and 2021 is as follows:
Year Ended December 31,
2023 2022 2021
(dollars in thousands)
Corporate Facility $ 26,605  $ 18,820  $ 5,204 
SPV Facility 14,491  1,375  — 
July 2026 Notes
 15,526  15,526  10,988 
May 2024 Notes
 22,855  22,855  22,855 
SBIC Debentures 11,394  11,337  10,857 
December 2025 Notes
 11,704  174  — 
December 2022 Notes
 —  8,189  8,932 
Total Interest Expense $ 102,575  $ 78,276  $ 58,836 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
MSCC Funding’s balance sheets as of December 31, 2023 and 2022 are as follows:
Balance Sheets
(dollars in thousands)

December 31, 2023
December 31, 2022
ASSETS
Investments at fair value:
Non-Control Investments (cost: $315,373 and $314,752 as of December 31, 2023 and 2022, respectively)
 $ 317,392  $ 316,507 
Cash and cash equivalents 12,817  10,838 
Interest and dividend receivable and other assets 2,956  2,828 
Accounts receivable to MSCC and its subsidiaries —  556 
Receivable for securities sold —  369 
Deferred financing costs (net of accumulated amortization of $783 and $141 as of December 31, 2023 and 2022, respectively)
 3,829  2,630 
Total assets $ 336,994  $ 333,728 
LIABILITIES
SPV Facility $ 160,000  $ 200,000 
Accounts payable and other liabilities 7,170  112 
Interest payable 1,135  1,272 
Total liabilities 168,305  201,384 
NET ASSETS
Contributed capital 138,163  126,010 
Total undistributed earnings 30,526  6,334 
Total net assets 168,689  132,344 
Total liabilities and net assets $ 336,994  $ 333,728 
MSCC Funding’s statements of operations for the year ended December 31, 2023 and the period from November 22, 2022 to December 31, 2022 are as follows:
Statements of Operations
(dollars in thousands)
Year Ended December 31, Period from November 22, 2022 to December 31,
2023 2022
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 40,152  $ 3,454 
Total investment income 40,152  3,454 
EXPENSES:
Interest (14,491) (1,414)
Management Fee to MSCC (1,603) (89)
General and administrative (130) (25)
Total expenses (16,224) (1,528)
NET INVESTMENT INCOME 23,928  1,926 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments 264  4,408 
Total net unrealized appreciation (depreciation) 264  4,408 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 24,192  $ 6,334 
Schedule of Maturity Dates and Fixed Interest Rates
The maturity dates and fixed interest rates for Main Street’s SBIC debentures as of December 31, 2023 and 2022 are summarized as follows:
Maturity Date Fixed Interest Rate Principal Balance
December 31,
2023		 December 31,
2022
3/1/2023 3.16% $ —  $ 16,000,000 
3/1/2024 3.95% 39,000,000  39,000,000 
3/1/2024 3.55% 24,800,000  24,800,000 
3/1/2027 3.52% 40,400,000  40,400,000 
9/1/2027 3.19% 34,600,000  34,600,000 
3/1/2028 3.41% 43,000,000  43,000,000 
9/1/2028 3.55% 32,000,000  32,000,000 
3/1/2030 2.35% 15,000,000  15,000,000 
9/1/2030 1.13% 10,000,000  10,000,000 
9/1/2030 1.31% 10,000,000  10,000,000 
3/1/2031 1.94% 25,200,000  25,200,000 
9/1/2031 1.58% 60,000,000  60,000,000 
9/1/2033 5.74% 16,000,000  — 
Ending Balance $ 350,000,000  $ 350,000,000 
Schedule of Contractual Payment Obligations
A summary of Main Street’s contractual payment obligations for the repayment of outstanding indebtedness at December 31, 2023 is as follows:
2024 2025 2026 2027 2028 Thereafter Total
(dollars in thousands)
Corporate Facility $ —  $ —  $ —  $ 200,000  $ —  $ —  $ 200,000 
SPV Facility —  —  —  160,000  —  —  160,000 
July 2026 Notes
 —  —  500,000  —  —  —  500,000 
May 2024 Notes
 450,000  —  —  —  —  —  450,000 
SBIC debentures 63,800  —  —  75,000  75,000  136,200  350,000 
December 2025 Notes
 —  150,000  —  —  —  —  150,000 
Total $ 513,800  $ 150,000  $ 500,000  $ 435,000  $ 75,000  $ 136,200  $ 1,810,000