Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.22.4
DEBT (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Debt
Summary of 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)
SBIC Debentures $ 350,000  $ (6,086) $ 343,914  $ 290,204 
Corporate Facility 407,000  —  407,000  407,000 
SPV Facility 200,000  —  200,000  200,000 
May 2024 Notes
 450,000  727  450,727  444,749 
July 2026 Notes
 500,000  (1,864) 498,136  434,250 
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, December 2025 Notes and SBIC Debentures 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.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Summary of debt as of December 31, 2021 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
SBIC Debentures $ 350,000  $ (7,269) $ 342,731  $ 328,206 
Corporate Facility 320,000  —  320,000  320,000 
December 2022 Notes
 185,000  (556) 184,444  190,043 
May 2024 Notes
 450,000  1,272  451,272  480,767 
July 2026 Notes
 500,000  (2,391) 497,609  502,285 
Total Debt $ 1,805,000  $ (8,944) $ 1,796,056  $ 1,821,301 
___________________________
(1)The unamortized debt issuance costs for the Corporate Facility 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, December 2022 Notes and SBIC Debentures 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.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Schedule of Interest Expense
Summarized interest expense for the years ended December 31, 2022, 2021 and 2020 is as follows:
Year Ended December 31,
2022 2021 2020
(dollars in thousands)
SBIC Debentures $ 11,337  $ 10,857  $ 11,867 
Corporate Facility 18,820  5,204  9,232 
SPV Facility 1,375  —  — 
May 2024 Notes
 22,855  22,855  19,556 
July 2026 Notes
 15,526  10,988  — 
December 2022 Notes
 8,188  8,932  8,932 
December 2025 Notes
 174  —  — 
Total Interest Expense $ 78,276  $ 58,836  $ 49,587 
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, 2022 and 2021 are summarized in the following table:
Maturity Date Fixed Interest Rate December 31,
2022		 December 31,
2021
3/1/2023 3.16% $ 16,000,000  $ 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 
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, 2022 is as follows:
2023 2024 2025 2026 2027 Thereafter Total
(dollars in thousands)
SBIC debentures $ 16,000  $ 63,800  $ —  $ —  $ 75,000  $ 195,200  $ 350,000 
Corporate Facility —  —  —  —  407,000  —  407,000 
SPV Facility —  —  —  —  200,000  —  200,000 
May 2024 Notes
 —  450,000  —  —  —  —  450,000 
July 2026 Notes
 —  —  —  500,000  —  —  500,000 
December 2025 Notes
 —  —  100,000  —  —  —  100,000 
Total $ 16,000  $ 513,800  $ 100,000  $ 500,000  $ 682,000  $ 195,200  $ 2,007,000 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding A balance sheet and statement of operations of MSCC Funding as of December 31, 2022 and for the period from November 22, 2022 (date of inception of MSCC Funding and the SPV Facility) through December 31, 2022 are as follows:
Balance Sheet
(dollars in thousands)

December 31, 2022
ASSETS
Investments at fair value:
Non-Control Investments (cost: $314,752 as of December 31, 2022)
 $ 316,507 
Cash and cash equivalents 10,838 
Interest and dividend receivable and other assets 2,828 
Accounts receivable from MSCC and its subsidiaries 556 
Receivable for securities sold 369 
Deferred financing costs (net of accumulated amortization of $141 as of December 31, 2022)
 2,630 
Total assets $ 333,728 
LIABILITIES
SPV Facility $ 200,000 
Accounts payable and other liabilities 112 
Interest payable 1,272 
Total liabilities 201,384 
Commitments and contingencies (Note K)
NET ASSETS
Contributed capital 126,010 
Total undistributed earnings 6,334 
Total net assets 132,344 
Total liabilities and net assets $ 333,728 

Statement of Operations
(dollars in thousands)

Period from November 22, 2022 to December 31, 2022
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 3,454 
EXPENSES:
Interest (1,414)
Management fee (89)
General and administrative (25)
Total expenses (1,528)
NET INVESTMENT INCOME (LOSS) 1,926 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments 4,408 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,334