HOUSTON, Oct. 18, 2022 /PRNewswire/ -- Main
Street Capital Corporation (NYSE: MAIN) ("Main Street" or the
"Company") is pleased to announce its preliminary operating results
for the third quarter of 2022.
Preliminary Estimates of Third
Quarter 2022 Results
In commenting on the Company's operating results for the third
quarter of 2022, Dwayne L. Hyzak,
Main Street's Chief Executive Officer, stated, "We are very pleased
with our third quarter results which include new quarterly records
for net investment income per share and distributable net
investment income per share. These results include positive
contributions from each of our core strategies, demonstrating the
continued strength of our overall platform, the benefits of our
differentiated and diversified investment strategies and the
quality of our portfolio companies. We also continue to maintain an
attractive pipeline of investment opportunities across both our
lower middle market and private loan investment strategies. As a
result of our strong performance, distributable net investment
income for the third quarter exceeded our regularly monthly
dividends paid by over 25%."
Main Street's preliminary estimate of third quarter 2022 net
investment income ("NII") is $0.82 to
$0.84 per share. Main Street's
preliminary estimate of third quarter 2022 distributable net
investment income ("DNII"), which is NII before non-cash
compensation expense, is $0.87 to
$0.89 per
share.1
Main Street's preliminary estimate of net asset value ("NAV")
per share as of September 30, 2022 is
$25.92 to $25.97, representing an increase of approximately
$0.55 to $0.60 per share, or 2.2% to 2.4%, from the NAV
per share of $25.37 as of
June 30, 2022, with this increase
after the impact of the supplemental dividend paid in September 2022 of $0.10 per share. The estimated increase in
NAV per share is primarily due to the record estimated NII
described above in excess of the regular monthly dividends of
$0.645 per share and supplemental
dividend of $0.10 per share paid in
the third quarter, the accretive impact from equity issuances
during the quarter and net realized gains from our investment
portfolio, partially offset by the impact of net unrealized
depreciation from our investment portfolio.
Investment Portfolio
Activity
The Company's third quarter of 2022 operating activities include
the following investment activity in its LMM, private loan and
middle market investment strategies:
- $111.5 million in total LMM
portfolio investments, which after aggregate repayments of debt
principal and return of invested equity capital from several LMM
portfolio investments, resulted in a net increase of $84.5 million in the cost basis of our LMM
investment portfolio;
- a net increase of $174.3 million
in the cost basis of our private loan investment portfolio;
and
- a net decrease of $1.1 million in
the cost basis of our middle market investment portfolio.
ABOUT MAIN STREET CAPITAL
CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily provides long-term debt and equity capital to
lower middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically made
to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner with
entrepreneurs, business owners and management teams and generally
provides "one stop" financing alternatives within its lower middle
market investment strategy. Main Street's lower middle market
companies generally have annual revenues between $10 million and $150
million. Main Street's middle market debt investments are
made in businesses that are generally larger in size than its lower
middle market portfolio companies.
Main Street, through its wholly owned portfolio company MSC
Adviser I, LLC ("MSC Adviser"), also maintains an asset management
business through which it manages investments for external
parties. MSC Adviser is registered as an investment adviser
under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS AND OTHER
MATTERS
Main Street cautions that statements in this press release which
are forward–looking and provide other than historical information,
including but not limited to the preliminary estimates of third
quarter 2022 financial information and results, are based on
current conditions and information available to Main Street as of
the date hereof. Although its management believes that the
expectations reflected in those forward–looking statements are
reasonable, Main Street can give no assurance that those
expectations will prove to be correct. Those forward-looking
statements are made based on various underlying assumptions and are
subject to numerous uncertainties and risks, including, without
limitation, such factors described under the captions "Cautionary
Statement Concerning Forward-Looking Statements" and "Risk Factors"
included in Main Street's filings with the Securities and Exchange
Commission (www.sec.gov) (the "SEC"). Main Street undertakes no
obligation to update the information contained herein to reflect
subsequently occurring events or circumstances, except as required
by applicable securities laws and regulations.
The preliminary estimates of third quarter 2022 financial
information and results furnished above are based on Main Street
management's preliminary determinations and current expectations,
and such information is inherently uncertain. The preliminary
estimates are subject to completion of Main Street's customary
quarter-end closing and review procedures and third-party review,
including the determination of the fair value of Main Street's
portfolio investments. As a result, actual results could differ
materially from the current preliminary estimates based on
adjustments made during Main Street's quarter-end closing and
review procedures and third-party review, and Main Street's
reported information in its Quarterly Report on Form 10-Q for the
quarter ended September 30,
2022 may differ from this information, and any such
differences may be material. In addition, the information
furnished above does not include all of the information regarding
Main Street's financial condition and results of operations for the
quarter ended September 30, 2022 that may be important to
readers. As a result, readers are cautioned not to place
undue reliance on the information furnished in this press release
and should view this information in the context of Main Street's
full third quarter 2022 results when such results are disclosed by
Main Street in its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2022. The information furnished in
this press release is based on current Main Street management
expectations that involve substantial risks and uncertainties that
could cause actual results to differ materially from the results
expressed in, or implied by, such information.
Main Street has an existing effective shelf registration
statement on Form N-2 on file with the SEC relating to the offer
and sale from time to time of its securities. Investors are
advised to carefully consider the investment objective, risks and
charges and expenses of Main Street before investing in any of Main
Street's securities. The prospectus included in the shelf
registration statement, together with any related prospectus
supplement, contain this and other information about Main Street
and should be read carefully before investing. A copy of the
prospectus and any related prospectus supplement may be obtained by
contacting Main Street.
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(1)
Distributable net investment income is
net investment income as determined in accordance with U.S.
Generally Accepted Accounting Principles, or U.S. GAAP, excluding
the impact of non-cash compensation expense, which includes both
share-based compensation expense and deferred compensation expense
or benefit. Main Street believes presenting distributable net
investment income per share is useful and appropriate supplemental
disclosure for analyzing its financial performance, since
share-based compensation does not require settlement in cash and
deferred compensation expense or benefit does not result in a net
cash impact to Main Street upon settlement. However,
distributable net investment income is a non-U.S. GAAP measure and
should not be considered as a replacement for net investment income
and other earnings measures presented in accordance with U.S.
GAAP. Instead, distributable net investment income should be
reviewed only in connection with such U.S. GAAP measures in
analyzing Main Street's financial performance. In order to
reconcile estimated distributable net investment income per share
to estimated net investment income per share in accordance with
U.S. GAAP for the third quarter of 2022, $0.04 to $0.05 per share
of estimated non-cash compensation expense is added back to
calculate estimated distributable net investment income per
share.
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Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO,
dhyzak@mainstcapital.com
Jesse E. Morris, CFO & COO,
jmorris@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard /
ken@dennardlascar.com
Zach Vaughan /
zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation