Annual report [Section 13 and 15(d), not S-K Item 405]

DEBT (Tables)

v3.25.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2024 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
 Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 208,000  $ —  $ 208,000  $ 208,000 
SPV Facility 176,000  —  176,000  176,000 
July 2026 Notes
 500,000  (812) 499,188  482,180 
June 2027 Notes
 400,000  (718) 399,282  407,388 
March 2029 Notes
 350,000  (2,998) 347,002  364,959 
SBIC Debentures 350,000  (6,583) 343,417  298,250 
December 2025 Notes
 150,000  (518) 149,482  149,940 
Total Debt $ 2,134,000  $ (11,629) $ 2,122,371  $ 2,086,717 
___________________________
(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:
Year Ended December 31,
2024 2023 2022
(dollars in millions)
Weighted-average borrowings outstanding $ 2,105.6  $ 1,949.0  $ 1,900.5 
Weighted-average effective interest rate 5.9  % 5.3  % 4.1  %
Schedule of Interest Expense
Summarized interest expense for the years ended December 31, 2024, 2023 and 2022 is as follows:
Year Ended December 31,
2024 2023 2022
(dollars in thousands)
Corporate Facility $ 27,108  $ 26,605  $ 18,820 
SPV Facility 12,734  14,491  1,375 
July 2026 Notes
 15,526  15,526  15,526 
June 2027 Notes
 13,361  —  — 
March 2029 Notes
 24,269  —  — 
SBIC Debentures 10,690  11,394  11,337 
December 2025 Notes
 12,123  11,704  174 
May 2024 Notes
 7,618  22,855  22,855 
December 2022 Notes
 —  —  8,189 
Total Interest Expense $ 123,429  $ 102,575  $ 78,276 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
MSCC Funding’s balance sheets as of December 31, 2024 and 2023 are as follows:
Balance Sheets
(dollars in thousands)
December 31, 2024
December 31, 2023
ASSETS
Investments at fair value:
Non-Control Investments (cost: $351,053 and $315,373 as of December 31, 2024 and 2023, respectively)
 $ 350,892  $ 317,392 
Cash and cash equivalents 11,212  12,817 
Interest and dividend receivable and other assets 4,124  2,956 
Deferred financing costs (net of accumulated amortization of $1,859 and $783 as of December 31, 2024 and 2023, respectively)
 6,512  3,829 
Total assets $ 372,740  $ 336,994 
LIABILITIES
SPV Facility $ 176,000  $ 160,000 
Accounts payable and other liabilities to affiliates 65  7,170 
Interest payable 1,229  1,135 
Total liabilities 177,294  168,305 
NET ASSETS
Contributed capital 138,088  138,163 
Total undistributed earnings 57,358  30,526 
Total net assets 195,446  168,689 
Total liabilities and net assets $ 372,740  $ 336,994 
MSCC Funding’s statements of operations for the years ended December 31, 2024 and 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,
2024 2023 2022
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 43,477  $ 40,152  $ 3,454 
Total investment income 43,477  40,152  3,454 
EXPENSES:
Interest (12,734) (14,491) (1,414)
Management Fee to MSCC (1,648) (1,603) (89)
General and administrative (121) (130) (25)
Total expenses (14,503) (16,224) (1,528)
NET INVESTMENT INCOME 28,974  23,928  1,926 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments (2,181) 264  4,408 
Total net unrealized appreciation (depreciation) (2,181) 264  4,408 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 26,793  $ 24,192  $ 6,334 
Schedule of Long-Term Debt Instruments
The maturity dates and fixed interest rates for Main Street’s SBIC debentures as of December 31, 2024 and 2023 are summarized as follows:
Maturity Date Fixed Interest Rate Principal Balance
December 31,
2024		 December 31,
2023
3/1/2024 3.95% $ —  $ 39,000,000 
3/1/2024 3.55% —  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  16,000,000 
3/1/2035 5.34% 63,800,000  — 
Ending Balance $ 350,000,000  $ 350,000,000 
Schedule of Maturities of Long-Term Debt
A summary of Main Street’s contractual payment obligations for the repayment of outstanding indebtedness as of December 31, 2024 is as follows:
2025 2026 2027 2028 2029 Thereafter Total
(dollars in thousands)
Corporate Facility $ —  $ —  $ 14,100  $ —  $ 193,900  $ —  $ 208,000 
SPV Facility —  —  —  —  176,000  —  176,000 
July 2026 Notes
 —  500,000  —  —  —  —  500,000 
June 2027 Notes
 —  —  400,000  —  —  —  400,000 
March 2029 Notes —  —  —  —  350,000  —  350,000 
SBIC debentures —  —  75,000  75,000  —  200,000  350,000 
December 2025 Notes
 150,000  —  —  —  —  —  150,000 
Total $ 150,000  $ 500,000  $ 489,100  $ 75,000  $ 719,900  $ 200,000  $ 2,134,000 
Schedule of Senior Securities
Total Amount Outstanding Exclusive of Treasury Securities (1) Asset Coverage per Unit (2) Involuntary Liquidating Preference per Unit (3) Average Market Value per Unit (4)
(dollars in thousands)
SBIC Debentures
2015 $ 225,000  $ 2,368  —  N/A
2016 240,000  2,415  —  N/A
2017 295,800  2,687  —  N/A
2018 345,800  2,455  —  N/A
2019 311,800  2,363  —  N/A
2020 309,800  2,244  —  N/A
2021 350,000  1,985  —  N/A
2022 350,000  2,044  —  N/A
2023 350,000  2,364  —  N/A
2024 350,000  2,306  —  N/A
Corporate Facility
2015 $ 291,000  $ 2,368  —  N/A
2016 343,000  2,415  —  N/A
2017 64,000  2,687  —  N/A
2018 301,000  2,455  —  N/A
2019 300,000  2,363  —  N/A
2020 269,000  2,244  —  N/A
2021 320,000  1,985  —  N/A
2022 407,000  2,044  —  N/A
2023 200,000  2,364  —  N/A
2024 208,000  2,306  —  N/A
SPV Facility
2022 $ 200,000  $ 2,044  —  N/A
2023 160,000  2,364  —  N/A
2024 176,000  2,306  —  N/A
April 2023 Notes
2015 $ 90,738  $ 2,368  —  $ 25.40 
2016 90,655  2,415  —  25.76 
2017 90,655  2,687  —  25.93 
December 2019 Notes
2015 $ 175,000  $ 2,368  —  N/A
2016 175,000  2,415  —  N/A
2017 175,000  2,687  —  N/A
2018 175,000  2,455  —  N/A
December 2022 Notes
2017 $ 185,000  $ 2,687  —  N/A
Total Amount Outstanding Exclusive of Treasury Securities (1) Asset Coverage per Unit (2) Involuntary Liquidating Preference per Unit (3) Average Market Value per Unit (4)
(dollars in thousands)
2018 185,000  2,455  —  N/A
2019 185,000  2,363  —  N/A
2020 185,000  2,244  —  N/A
2021 185,000  1,985  —  N/A
May 2024 Notes
2019 $ 325,000  $ 2,363  —  N/A
2020 450,000  2,244  —  N/A
2021 450,000  1,985  —  N/A
2022 450,000  2,044  —  N/A
2023 450,000  2,364  —  N/A
July 2026 Notes
2021 $ 500,000  $ 1,985  —  N/A
2022 500,000  2,044  —  N/A
2023 500,000  2,364  —  N/A
2024 500,000  2,306  —  N/A
December 2025 Notes
2022 $ 100,000  $ 2,044  —  N/A
2023 150,000  2,364  —  N/A
2024 150,000  2,306  —  N/A
March 2029 Notes
2024 $ 350,000  $ 2,306  —  N/A
June 2027 Notes
2024 $ 400,000  $ 2,306  —  N/A
___________________________
(1)Total amount of each class of senior securities outstanding at the end of the period presented.
(2)Asset coverage per unit is the ratio of the carrying value of Main Street’s total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3)The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.
(4)Average market value per unit for the April 2023 Notes represents the average of the daily closing prices as reported on the NYSE during the period presented. Average market value per unit for all other senior securities included in the table is not applicable because these are not registered for public trading.