Main Street to invest in lower middle-market firms with stock proceeds

By Toni Weeks

San Luis Obispo, Calif., April 7 - Main Street Capital Corp. plans to conduct a public offering of shares with a 30-day greenshoe, 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 & Associates, Inc., Goldman Sachs & Co., Robert W. Baird & Co. Inc. and RBC Capital Markets, LLC are the underwriters.

Proceeds will initially be used to repay outstanding debt under the company's $445 million credit facility due September 2018. The company has about $227 million outstanding under the credit facility, the filing noted. Main Street intends to reborrow from the facility to make further investments, according to the filing.

The sales load will be 3.5%. Including operating expenses of 2.63%, total annual expenses are expected to be 5.85%.

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 is the investment manager.

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