Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.24.2.u1
DEBT (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
Summary of Main Street’s debt as of June 30, 2024 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 465,000  $ —  $ 465,000  $ 465,000 
SPV Facility 160,000  —  160,000  160,000 
July 2026 Notes
 500,000  (1,075) 498,925  467,950 
March 2029 Notes
 350,000  (3,358) 346,642  353,654 
June 2027 Notes
 300,000  (2,340) 297,660  300,081 
SBIC Debentures 286,200  (5,583) 280,617  229,680 
December 2025 Notes
 150,000  (776) 149,224  149,257 
Total Debt $ 2,211,200  $ (13,132) $ 2,198,068  $ 2,125,622 
____________________
(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, March 2029 Notes, June 2027 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.
Schedule of Interest Expense
Summarized interest expense for the three and six months ended June 30, 2024 and 2023 is as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
(dollars in thousands)
Corporate Facility $ 7,240  $ 7,898  $ 11,522  $ 14,508 
SPV Facility 3,096  3,511  4,774  6,941 
July 2026 Notes
 3,882  3,882  7,763  7,763 
May 2024 Notes
 1,905  5,714  7,618  11,427 
March 2029 Notes
 6,261  —  11,747  — 
June 2027 Notes
 1,473  —  1,473  — 
SBIC Debentures 2,273  2,718  4,979  5,470 
December 2025 Notes
 3,031  3,031  6,061  5,643 
Total Interest Expense $ 29,161  $ 26,754  $ 55,937  $ 51,752 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
MSCC Funding’s balance sheets as of June 30, 2024 and December 31, 2023 are as follows:
Balance Sheets
(dollars in thousands)
June 30, 2024 December 31, 2023
(Unaudited)
ASSETS
Investments at fair value:
Non-Control Investments (cost: $335,118 and $315,373 as of June 30, 2024 and December 31, 2023, respectively)
 $ 335,892  $ 317,392 
Cash and cash equivalents 6,618  12,817 
Interest and dividend receivable and other assets 2,734  2,956 
Receivable for securities sold 124  — 
Deferred financing costs (net of accumulated amortization of $1,272 and $783 as of June 30, 2024 and December 31, 2023, respectively)
 3,340  3,829 
Total assets 348,708  336,994 
LIABILITIES
SPV Facility $ 160,000  $ 160,000 
Accounts payable and other liabilities to affiliates —  7,170 
Interest payable 1,195  1,135 
Total liabilities 161,195  168,305 
NET ASSETS
Contributed capital 142,619  138,163 
Total undistributed earnings 44,894  30,526 
Total net assets 187,513  168,689 
Total liabilities and net assets $ 348,708  $ 336,994 
MSCC Funding’s statements of operations for the three and six months ended June 30, 2024 and 2023 are as follows:
Statements of Operations
(dollars in thousands)
(Unaudited)
Three Months Ended June 30, Six Months Ended
June 30,
2024 2023 2024 2023
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 10,118  $ 9,873  $ 21,185  $ 18,590 
Total investment income 10,118  9,873  21,185  18,590 
EXPENSES:
Interest (3,096) (3,512) (4,774) (6,940)
Management Fee to MSCC (395) (410) (800) (686)
General and administrative (18) (19) (36) (51)
Total expenses (3,509) (3,941) (5,610) (7,677)
NET INVESTMENT INCOME 6,609  5,932  15,575  10,913 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments (769) 1,956  (1,246) 565 
Total net unrealized appreciation (depreciation) (769) 1,956  (1,246) 565 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,840  $ 7,888  $ 14,329  $ 11,478