Main Street adds lender, expands loan commitments to $287.5 million

By Susanna Moon

Chicago, July 18 - Main Street Capital Corp. added another lender, boosting its total commitments by $10 million to $287.5 million under its credit agreement with Branch Banking and Trust Co. as administrative agent.

The lending group now consists of nine banks, according to a company press release.

The company said it secured the recent bump in total commitments by exercising the accordion feature of the facility, which allows it to increase the total commitments up to $350 million.

There is $89 million of outstanding debt under the facility.

Main Street amended its credit agreement Tuesday with Branch Banking and Trust Co. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Most recent boost

On May 3 Main Street said it raised total commitments to $277.5 million from $235 million.

Before that, the company increased the total commitments on Dec. 30, adding Amegy Bank NA as a lender for $20 million of commitments under the agreement. Cadence Bank, NA, an existing lender, agreed to increase its revolver commitments to $22.5 million from $17.5 million.

There was about $94 million of debt outstanding under the facility at the time. There was $58 million of outstanding debt as of Nov. 22.

Another upsizing

Main Street Capital amended the agreement with Branch Banking on Nov. 21, 2011, boosting the total commitments to $210 million from $155 million.

Capital One, NA, Regions Bank, Frost National Bank, Texas Capital Bank, Compass Bank and Cadence Bank, NA were the other lenders.

At the time, the agreement contained an accordion that allowed for $300 million of total commitments.

Under the November 2011 changes, Main Street also added two one-year extension options that could extend the maturity to Sept. 20, 2016 from Sept. 20, 2014.

Main Street Capital Partners, LLC and Main Street Equity Interests, Inc. are guarantors under the loan.

Interest on the loans was Libor plus 250 basis points with no floor, according to a previous news release.

Main Street is a Houston-based principal investment firm that primarily provides long-term debt and equity capital to lower middle-market companies.

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