Main Street Capital Corporation (NYSE:MAIN) Files An 8-K Entry into a Material Definitive Agreement

Main Street Capital Corporation (NYSE:MAIN) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On June5, 2018, Main Street Capital Corporation (“Main Street”) entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) among Main Street, as borrower, Main Street Capital Partners, LLC, Main Street Equity Interests,Inc., Main Street CA Lending, LLC and MS International Holdings,Inc., as guarantors, Branch Banking and Trust Company (“BB&T”), Frost Bank, Royal Bank of Canada, Hancock Whitney Bank, ZB, N.A. dba Amegy Bank, Texas Capital Bank, N.A., Cadence Bank, N.A., Trustmark National Bank, Comerica Bank, Raymond James Bank, N.A., BOKF, NA dba Bank of Texas, Woodforest National Bank, City National Bank, First Financial Bank, N.A., Veritex Community Bank, and Goldman Sachs Bank USA, collectively as lenders, and BB&T as administrative agent. The Amended Credit Agreement replaces the Second Amended and Restated Credit Agreement entered into on September27, 2013 among Main Street, as borrower, the guarantors party thereto, BB&T, as administrative agent and lender, and the lenders party thereto, as such agreement was amended from time to time.

Under the Amended Credit Agreement, (i)revolving commitments by lenders were increased to an amount not to exceed $655,000,000 (the “Credit Facility”), subject to the value of cash and cash equivalents and eligible investments included in a borrowing base, and Main Street has the right to request an increase in commitments under the Credit Facility from new and existing lenders on the same terms and conditions as the existing commitments up to a total of $800,000,000, subject to certain conditions, (ii)the term of the Credit Facility was extended to September27, 2023, and (iii)borrowings under the Credit Facility bear interest, subject to Main Street’s election, on a per annum basis at a rate equal to the applicable LIBOR rate plus (A)1.875% (or the applicable base rate plus 0.875%) as long as Main Street meets certain agreed upon excess collateral and maximum leverage requirements or (B)2.0% (or the applicable base rate plus 1.0%) if Main Street does not meet certain excess collateral and maximum leverage requirements. The Amended Credit Agreement also requires payment of 0.25% per annum in unused commitment fees based on average daily unused commitments under the Credit Facility. In addition, Main Street continues to maintain two, one-year extension options under the amended Credit Facility which could extend the final maturity of the Credit Facility for up to two additional years, subject to certain conditions, including lender approval.

The Credit Facility is guaranteed by the guarantors, each of which is a wholly owned subsidiary of Main Street. The Credit Facility is secured by (i)substantially all of the present and future property and assets of Main Street and the guarantors, (ii)50% of the equity interests in the domestic subsidiaries of Main Street, and (iii)65% of the voting equity interests and 50% of the non-voting equity interests in the foreign subsidiaries of Main Street, in each case excluding subsidiaries that are licensed as “small business investment companies”, MSC Adviser I, LLC and certain special purpose vehicles (collectively, the “Collateral”).

The Amended Credit Agreement contains cross default provisions to other material debt of Main Street and its subsidiaries and contains certain affirmative and negative covenants, including but not limited to: (i)maintaining a minimum availability of at least 10% of the borrowing base, (ii)maintaining a minimum consolidated tangible net worth (as defined), (iii)maintaining a minimum interest coverage ratio (as defined) and (iv)maintaining a minimum asset coverage ratio (as defined).

BB&T, Royal Bank of Canada, Raymond James Bank, N.A., Goldman Sachs Bank USA and the other lenders under the Credit Facility, and their respective affiliates, may from time to time receive customary fees and expenses in the performance of investment banking, financial advisory or other services for Main Street.

The above summary is not complete and is qualified in its entirety to the full text of the Amended Credit Agreement and related documents.

Item 8.01 Other Events.

On June6, 2018, the Registrant issued a press release. A copy of such press release is attached hereto as Exhibit99.1 and is incorporated herein by reference.

The information disclosed under Item 8.01, including Exhibit99.1 hereto, shall not be deemed “filed” for purposes


Main Street Capital CORP Exhibit
EX-10.1 2 a18-14883_1ex10d1.htm EX-10.1 Exhibit 10.1   Execution Version   THIRD AMENDED AND RESTATED   CREDIT AGREEMENT   dated as of   June 5,…
To view the full exhibit click here

About Main Street Capital Corporation (NYSE:MAIN)

Main Street Capital Corporation (MSCC) is a principal investment firm. MSCC is primarily focused on providing customized debt and equity financing to lower middle market (LMM) companies and debt capital to middle market (Middle Market) companies. The Company’s portfolio investments are made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in various industry sectors. The Company invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States. The Company’s investment portfolio includes its investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments, and the investment in MSC Adviser I, LLC (the External Investment Manager).

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