Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.24.3
DEBT (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt and Average Amount of Total Borrowings Outstanding and Weighted-Overall Average Effective Interest Rate
Summary of Main Street’s debt as of September 30, 2024 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
 Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 300,000  $ —  $ 300,000  $ 300,000 
SPV Facility 160,000  —  160,000  160,000 
July 2026 Notes
 500,000  (943) 499,057  479,325 
June 2027 Notes
 400,000  1,136  401,136  409,260 
March 2029 Notes
 350,000  (3,178) 346,822  365,862 
SBIC Debentures 350,000  (6,878) 343,122  285,982 
December 2025 Notes
 150,000  (647) 149,353  151,104 
Total Debt $ 2,210,000  $ (10,510) $ 2,199,490  $ 2,151,533 
____________________
(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, June 2027 Notes, March 2029 Notes, SBIC Debentures and December 2025 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt is shown as 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, 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 is shown as 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.
A summary of Main Street’s average amount of total borrowings outstanding and overall weighted-average effective interest rate including amortization of debt issuance costs, original issuance discounts and premiums and fees on unused lender commitments are as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
(dollars in millions)
Weighted-average borrowings outstanding $ 2,194.5  $ 1,968.5  $ 2,046.6  $ 1,986.0 
Weighted-average effective interest rate 6.1  % 5.4  % 5.8  % 5.3  %
Schedule of Interest Expense
Summarized interest expense for the three and nine months ended September 30, 2024 and 2023 is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
(dollars in thousands)
Corporate Facility $ 8,551  $ 7,157  $ 20,071  $ 21,666 
SPV Facility 3,941  3,665  8,715  10,605 
July 2026 Notes
 3,882  3,882  11,645  11,645 
June 2027 Notes
 5,316  —  6,790  — 
March 2029 Notes
 6,261  —  18,008  — 
SBIC Debentures 2,492  2,965  7,472  8,435 
December 2025 Notes
 3,031  3,031  9,092  8,673 
May 2024 Notes
 —  5,714  7,618  17,141 
Total Interest Expense $ 33,474  $ 26,414  $ 89,411  $ 78,165 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
MSCC Funding’s balance sheets as of September 30, 2024 and December 31, 2023 are as follows:
Balance Sheets
(dollars in thousands)
September 30, 2024 December 31, 2023
(Unaudited)
ASSETS
Investments at fair value:
Non-Control Investments (cost: $330,858 and $315,373 as of September 30, 2024 and December 31, 2023, respectively)
 $ 329,228  $ 317,392 
Cash and cash equivalents 7,618  12,817 
Interest and dividend receivable and other assets 3,514  2,956 
Receivable for securities sold —  — 
Deferred financing costs (net of accumulated amortization of $1,516 and $783 as of September 30, 2024 and December 31, 2023, respectively)
 6,855  3,829 
Total assets 347,215  336,994 
LIABILITIES
SPV Facility $ 160,000  $ 160,000 
Accounts payable and other liabilities to affiliates —  7,170 
Interest payable 1,179  1,135 
Total liabilities 161,179  168,305 
NET ASSETS
Contributed capital 136,744  138,163 
Total undistributed earnings 49,292  30,526 
Total net assets 186,036  168,689 
Total liabilities and net assets $ 347,215  $ 336,994 
MSCC Funding’s statements of operations for the three and nine months ended September 30, 2024 and 2023 are as follows:
Statements of Operations
(dollars in thousands)
(Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30,
2024 2023 2024 2023
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 11,179  $ 10,615  $ 32,365  $ 29,205 
Total investment income 11,179  10,615  32,365  29,205 
EXPENSES:
Interest (3,941) (3,666) (8,715) (10,605)
Management Fee to MSCC (418) (421) (1,218) (1,107)
General and administrative (20) (55) (56) (105)
Total expenses (4,379) (4,142) (9,989) (11,817)
NET INVESTMENT INCOME 6,800  6,473  22,376  17,388 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments (2,403) (1) (3,649) 563 
Total net unrealized appreciation (depreciation) (2,403) (1) (3,649) 563 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,397  $ 6,472  $ 18,727  $ 17,951