Main Street to raise $70 million for lower middle-market investments

By Toni Weeks

San Diego, Dec. 11 - Main Street Capital Corp. plans to raise $70 million in its public offering of shares, according to a 497 filing with the Securities and Exchange Commission.

The internally managed, closed-end, non-diversified management investment company seeks to maximize portfolio total return by generating current income from debt investments and capital appreciation from equity and equity-related investments, including warrants, convertible securities and rights to acquire equity securities.

Raymond James and Baird are the lead bookrunning managers for the public offering.

Proceeds will initially be used to repay outstanding debt under the company's $287.5 million credit facilities. Main Street intends to reborrow from the facility to make further investments, the filing noted.

The company priced 2.5 million shares at $28.00 apiece. Underwriters have a 30-day over-allotment option for an additional 375,000 shares, potentially raising another $10.5 million. The shares are listed on the New York Stock Exchange under the symbol "MAIN."

The sales load will be 4%. Including operating expenses of 2.8%, total annual expenses are expected to be 6.84%.

Main Street Capital is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle-market companies and debt capital to middle-market companies.

Houston-based Main Street Capital Partners, LLC serves as the investment manager.

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