Quarterly report [Sections 13 or 15(d)]

DEBT

v3.26.1
DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
A summary of Main Street’s debt as of March 31, 2026 is as follows:
Outstanding
Balance
Unamortized Debt Issuance
Premiums (Costs) (1)
 Recorded Value
Estimated
Fair Value (2)
(in thousands)
Corporate Facility $ 119,000  $ —  $ 119,000  $ 119,000 
SPV Facility 267,000  —  267,000  267,000 
March 2029 Notes
 550,000  1,015  551,015  565,873 
July 2026 Notes
 500,000  (154) 499,846  497,190 
June 2027 Notes
 400,000  (359) 399,641  404,012 
August 2028 Notes
 350,000  (1,813) 348,187  348,464 
SBIC debentures 350,000  (5,113) 344,887  306,177 
Total Debt $ 2,536,000  $ (6,424) $ 2,529,576  $ 2,507,716 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets. The unamortized debt issuance costs related to the July 2026 Notes, June 2027 Notes, August 2028 Notes and SBIC debentures are reflected as contra-liabilities on the Consolidated Balance Sheets, while the unamortized debt issuance premium related to the March 2029 Notes is reflected as an addition to the carrying value on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt is shown as if Main Street had adopted the fair value option under ASC 825, Financial Instruments (“ASC 825”). See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
A summary of Main Street’s debt as of December 31, 2025 is as follows:
Outstanding
Balance		 Unamortized Debt
Issuance Costs (1)		 Recorded Value Estimated
Fair Value (2)
(in thousands)
Corporate Facility $ 432,000  $ —  $ 432,000  $ 432,000 
SPV Facility 86,000  —  86,000  86,000 
July 2026 Notes
 500,000  (285) 499,715  496,150 
June 2027 Notes
 400,000  (431) 399,569  408,764 
August 2028 Notes
 350,000  (2,004) 347,996  352,293 
March 2029 Notes
 350,000  (2,279) 347,721  365,649 
SBIC debentures 350,000  (5,407) 344,593  310,930 
Total Debt $ 2,468,000  $ (10,406) $ 2,457,594  $ 2,451,786 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the unamortized debt issuance costs related to the July 2026 Notes, June 2027 Notes, August 2028 Notes, March 2029 Notes and SBIC debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt is shown as if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
A summary of Main Street’s interest expense for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
2026
2025
(in thousands)
Corporate Facility $ 5,892  $ 4,455 
SPV Facility 3,423  3,816 
March 2029 Notes
 6,261  6,261 
July 2026 Notes
 3,882  3,882 
June 2027 Notes
 6,572  6,572 
August 2028 Notes
 4,916  — 
SBIC debentures 3,097  3,151 
December 2025 Notes
 —  3,031 
Total Interest Expense $ 34,043  $ 31,168 
A summary of Main Street’s weighted-average amount of total borrowings outstanding and overall weighted-average effective interest rate including amortization of debt issuance costs, original issuance discounts and premiums and fees on unused lender commitments for the three months ended March 31, 2026 and 2025 is as follows:
Three Months Ended March 31,
2026
2025
(dollars in millions)
Weighted-average borrowings outstanding $ 2,487.4  $ 2,150.4 
Weighted-average effective interest rate 5.5  % 5.8  %
Corporate Facility
Main Street maintains a multi-year revolving credit facility (the “Corporate Facility”) to provide additional liquidity to support its investment and operational activities. In February 2026, Main Street expanded the total commitments under the Corporate Facility by $30.0 million to $1.175 billion.
As of March 31, 2026, the Corporate Facility included (i) total commitments of $1.175 billion from a diversified group of 18 lenders, (ii) an accordion feature with the right to request an increase in commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments up to a total of $1.718 billion and (iii) a revolving period through April 2029 and a final maturity date in April 2030.
As of March 31, 2026, borrowings under the Corporate Facility bore interest, subject to Main Street’s election and resetting on a monthly basis on the first of each month, at a rate equal to the applicable SOFR plus a credit spread adjustment of 0.10% plus 1.775% (or 1.65% after satisfying certain step-down conditions in the future). Main Street pays unused commitment fees of 0.25% on the unused lender commitments under the Corporate Facility. The Corporate Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the equity ownership and assets of the Funds, the Structured Subsidiaries and the External Investment Manager. In connection with the Corporate Facility, MSCC has made customary representations and warranties and is subject to certain leverage and borrowing base limitations, covenants, reporting and other requirements customary for similar credit facilities.
As of March 31, 2026, the interest rate for borrowings on the Corporate Facility was 5.5%. The average interest rate for borrowings under the Corporate Facility was 5.6% and 6.3% for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, Main Street was in compliance with all financial covenants of the Corporate Facility.
SPV Facility
Main Street, through MSCC Funding I, LLC (“MSCC Funding”), a wholly-owned Structured Subsidiary that primarily holds debt investments, maintains a special purpose vehicle revolving credit facility (the “SPV Facility” and, together with the Corporate Facility, the “Credit Facilities”) to finance its investment and operational activities.
As of March 31, 2026, the SPV Facility included (i) total commitments of $600.0 million from a diversified group of six lenders, (ii) an accordion feature providing MSCC Funding with the right to request increases in commitments under the facility, subject to the satisfaction of various conditions, from new and existing lenders on the same terms and conditions as the existing commitments to up to a total of $800.0 million and (iii) a revolving period through September 2028 and a final maturity date in September 2030. Advances under the SPV Facility bear interest at a rate equal to the applicable SOFR in effect, plus an applicable margin of 1.95% during the revolving period and 2.075% and 2.20% during the first and second years thereafter, respectively. MSCC Funding pays a commitment fee of 0.40% on the unused lender commitments up to 50% of the total lender commitments and 0.75% on the unused lender commitments greater than 50% of the total lender commitments. The SPV Facility is secured by a first lien on the assets of MSCC Funding and its subsidiaries. In connection with the SPV Facility, MSCC Funding has made customary representations and warranties and is subject to certain leverage and borrowing base limitations, covenants, reporting and other requirements customary for similar credit facilities.
As of March 31, 2026, the interest rate for borrowings on the SPV Facility was 5.6%. The average interest rate for borrowings under the SPV Facility was 5.6% and 6.7% for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, MSCC Funding was in compliance with all financial covenants of the SPV Facility.
MSCC Funding’s balance sheets as of March 31, 2026 and December 31, 2025 are as follows:
Balance Sheets
(in thousands)
March 31, 2026 December 31, 2025
(Unaudited)
ASSETS
Investments at fair value:
Control investments (cost: $13,840 as of both March 31, 2026 and December 31, 2025)
 $ 2,940  $ 12,128 
Non-Control investments (cost: $496,094 and $335,114 as of March 31, 2026 and December 31, 2025, respectively)
 490,857  331,965 
Total investments (cost: $509,934 and $348,954 as of March 31, 2026 and December 31, 2025, respectively)
 493,797  344,093 
Cash and cash equivalents 9,835  6,375 
Interest and dividend receivable and other assets 3,044  2,149 
Accounts receivable from MSCC and its subsidiaries 397  — 
Deferred financing costs (net of accumulated amortization of $3,684 and $3,314 as of March 31, 2026 and December 31, 2025, respectively)
 6,714  7,084 
Total assets $ 513,787  $ 359,701 
LIABILITIES
SPV Facility $ 267,000  $ 86,000 
Accounts payable and other liabilities to affiliates —  42 
Interest payable 1,416  695 
Total liabilities 268,416  86,737 
NET ASSETS
Contributed capital 173,319  197,064 
Total undistributed earnings 72,052  75,900 
Total net assets 245,371  272,964 
Total liabilities and net assets $ 513,787  $ 359,701 
MSCC Funding’s statements of operations for the three months ended March 31, 2026 and 2025 are as follows:
Statements of Operations
(in thousands)
(Unaudited)
Three Months Ended
March 31,
2026 2025
INVESTMENT INCOME:
Interest, dividend and fee income:
Non‑Control/Non‑Affiliate investments $ 11,368  $ 10,598 
Total investment income 11,368  10,598 
EXPENSES:
Interest (3,423) (3,816)
Management fee to MSCC (500) (290)
General and administrative (18) (69)
Total expenses (3,941) (4,175)
NET INVESTMENT INCOME 7,427  6,423 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments (9,187) — 
Non‑Control/Non‑Affiliate investments (2,088) 63 
Total net unrealized appreciation (depreciation) (11,275) 63 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (3,848) $ 6,486 
March 2029 Notes
In January 2024, Main Street issued $350.0 million in aggregate principal amount of 6.95% unsecured notes due March 1, 2029 (the “March 2029 Notes”) at an issue price of 99.865%. Subsequently, in March 2026, Main Street issued an additional $200.0 million in aggregate principal amount of the March 2029 Notes at a public offering price of 102.061% resulting in a yield-to-maturity of 6.164% on such issuance. The March 2029 Notes issued in March 2026 have identical terms as, and are a part of a single series with, the March 2029 Notes issued in January 2024. The $550.0 million of outstanding March 2029 Notes bear interest at 6.95% per year, payable semiannually on March 1 and September 1 of each year, with a yield-to-maturity of 6.68% as of March 31, 2026. The March 2029 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The March 2029 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions.
As of March 31, 2026, Main Street was in compliance with all covenants and other requirements of the March 2029 Notes.
July 2026 Notes
In January 2021, Main Street issued $300.0 million in aggregate principal amount of 3.00% unsecured notes due July 14, 2026 (the “July 2026 Notes”) at an issue price of 99.004%. Subsequently, in October 2021, Main Street issued an additional $200.0 million in aggregate principal amount of the July 2026 Notes at an issue price of 101.741%. The July 2026 Notes issued in October 2021 have identical terms as, and are a part of a single series with, the July 2026 Notes issued in January 2021. The July 2026 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The July 2026 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The July 2026 Notes bear interest at a rate of 3.00% per year payable semiannually on January 14 and July 14 of each year.
As of March 31, 2026, Main Street was in compliance with all covenants and other requirements of the July 2026 Notes.
June 2027 Notes
In June 2024, Main Street issued $300.0 million in aggregate principal amount of 6.50% unsecured notes due June 4, 2027 (the “June 2027 Notes”) at an issue price of 99.793%. Subsequently, in September 2024, Main Street issued an additional $100.0 million in aggregate principal amount of the June 2027 Notes at a public offering price of 102.134% resulting in a yield-to-maturity of 5.617% on such issuance. The $400.0 million of outstanding June 2027 Notes bear interest at 6.50% per year with a yield-to-maturity of 6.34%. The June 2027 Notes issued in September 2024 have identical terms as, and are a part of a single series with, the June 2027 Notes issued in June 2024. The June 2027 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The June 2027 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The June 2027 Notes bear interest at a rate of 6.50% per year payable semiannually on June 4 and December 4 of each year.
As of March 31, 2026, Main Street was in compliance with all covenants and other requirements of the June 2027 Notes.
August 2028 Notes
In August 2025, Main Street issued $350.0 million in aggregate principal amount of 5.40% unsecured notes due August 15, 2028 (the “August 2028 Notes”) at an issue price of 99.989%. The August 2028 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The August 2028 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The August 2028 Notes bear interest at a rate of 5.40% per year payable semiannually on February 15 and August 15 of each year.
As of March 31, 2026, Main Street was in compliance with all covenants and other requirements of the August 2028 Notes.
SBIC Debentures
Under existing SBIC regulations, SBA-approved SBICs under common control have the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Under existing SBA-approved commitments, Main Street, through the Funds, had $350.0 million of outstanding SBIC debentures as of both March 31, 2026 and December 31, 2025. SBIC debentures provide for interest to be paid semiannually, with principal due at the applicable 10-year maturity date of each debenture. The principal amount of the debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. The weighted-average annual interest rate on the SBIC debentures was 3.3% as of both March 31, 2026 and December 31, 2025. The first principal maturity due under the existing SBIC debentures is in 2027, and the weighted-average remaining duration as of March 31, 2026 was 4.4 years. In accordance with SBIC regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA. Main Street expects to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds.
As of March 31, 2026, the SBIC debentures consisted of (i) $175.0 million par value of SBIC debentures issued by MSMF, with a recorded value of $171.1 million net of unamortized debt issuance costs of $3.9 million, and (ii) $175.0 million par value of SBIC debentures issued by MSC III, with a recorded value of $173.8 million net of unamortized debt issuance costs of $1.2 million.
December 2025 Notes
In September 2025, Main Street repaid the $100.0 million principal amount of the issued and outstanding 7.84% Series A unsecured notes (the “December 2025 Series A Notes”) and the $50.0 million principal amount of the issued and outstanding 7.53% Series B unsecured notes (the “December 2025 Series B Notes” and, together with the December 2025 Series A Notes, the “December 2025 Notes”) prior to maturity at par value plus the accrued and unpaid interest. The December 2025 Notes were due to mature on December 23, 2025.