| Schedule of Debt and Average Amount of Total Borrowings Outstanding and Weighted-Overall Average Effective Interest Rate |
A summary of Main Street’s debt as of September 30, 2026 is as follows:
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Outstanding
Balance |
|
Net Unamortized Debt
Issuance Premiums
(Costs/Discounts) (1)
|
|
Recorded Value |
|
Estimated
Fair Value (2)
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|
(in thousands) |
| Corporate Facility |
$ |
495,000 |
|
|
$ |
— |
|
|
$ |
495,000 |
|
|
$ |
495,000 |
|
| SPV Facility |
300,500 |
|
|
— |
|
|
300,500 |
|
|
300,500 |
|
March 2029 Notes |
550,000 |
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|
555 |
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|
550,555 |
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|
556,265 |
|
June 2027 Notes |
400,000 |
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|
(215) |
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|
399,785 |
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|
402,780 |
|
August 2028 Notes |
350,000 |
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|
(1,431) |
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|
348,569 |
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|
346,273 |
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| SBIC debentures |
350,000 |
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|
(4,524) |
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|
345,476 |
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|
306,346 |
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April 2031 Notes |
150,000 |
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|
(957) |
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|
149,043 |
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|
144,806 |
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| Total debt |
$ |
2,595,500 |
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|
$ |
(6,572) |
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|
$ |
2,588,928 |
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$ |
2,551,970 |
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___________________________
(1)The unamortized deferred financing costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets. The net unamortized debt issuance costs/discounts related to the June 2027 Notes, August 2028 Notes, SBIC debentures and April 2031 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets, while the net 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:
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|
Outstanding
Balance |
|
Net Unamortized
Debt Issuance
Costs/Discounts (1) |
|
Recorded Value |
|
Estimated
Fair Value (2) |
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|
|
(in thousands) |
| Corporate Facility |
$ |
432,000 |
|
|
$ |
— |
|
|
$ |
432,000 |
|
|
$ |
432,000 |
|
| SPV Facility |
86,000 |
|
|
— |
|
|
86,000 |
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|
86,000 |
|
July 2026 Notes |
500,000 |
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|
(285) |
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|
499,715 |
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|
496,150 |
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June 2027 Notes |
400,000 |
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|
(431) |
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|
399,569 |
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|
408,764 |
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August 2028 Notes |
350,000 |
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|
(2,004) |
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|
347,996 |
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|
352,293 |
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March 2029 Notes |
350,000 |
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(2,279) |
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|
347,721 |
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|
365,649 |
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| SBIC debentures |
350,000 |
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|
(5,407) |
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|
344,593 |
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|
310,930 |
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| Total debt |
$ |
2,468,000 |
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|
$ |
(10,406) |
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|
$ |
2,457,594 |
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|
$ |
2,451,786 |
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___________________________
(1)The unamortized deferred financing costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the net unamortized debt issuance costs/discounts 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 weighted-average amount of total debt 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 and nine months ended September 30, 2026 and 2025 is as follows:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
|
2025 |
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2026 |
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2025 |
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|
(dollars in millions) |
| Weighted-average debt outstanding |
$ |
2,562.9 |
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|
$ |
2,242.1 |
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|
$ |
2,548.6 |
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|
$ |
2,208.9 |
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| Weighted-average effective interest rate |
6.1 |
% |
|
5.8 |
% |
|
5.7 |
% |
|
5.8 |
% |
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| Schedule of Interest Expense |
A summary of Main Street’s interest expense for the three and nine months ended September 30, 2026 and 2025 is as follows:
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
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|
(in thousands) |
| Corporate Facility |
$ |
6,795 |
|
|
$ |
4,107 |
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|
$ |
14,761 |
|
|
$ |
14,431 |
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| SPV Facility |
4,724 |
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|
3,033 |
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|
12,327 |
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|
10,621 |
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March 2029 Notes |
9,499 |
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|
6,261 |
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|
25,235 |
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|
18,783 |
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June 2027 Notes |
6,571 |
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|
6,572 |
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|
19,715 |
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|
19,715 |
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August 2028 Notes |
4,916 |
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|
2,452 |
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|
14,748 |
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|
2,452 |
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| SBIC debentures |
3,159 |
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|
3,166 |
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|
9,384 |
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|
9,452 |
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| April 2031 Notes |
2,652 |
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|
— |
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|
5,063 |
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|
— |
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July 2026 Notes |
605 |
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|
3,882 |
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|
8,368 |
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|
11,645 |
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December 2025 Notes |
— |
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|
2,999 |
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|
— |
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|
9,060 |
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| Total interest expense |
$ |
38,921 |
|
|
$ |
32,472 |
|
|
$ |
109,601 |
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$ |
96,159 |
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| Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding |
MSCC Funding’s balance sheets as of September 30, 2026 and December 31, 2025 are as follows:
Balance Sheets
(in thousands)
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September 30, 2026 |
|
December 31, 2025 |
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(Unaudited) |
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| ASSETS |
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Investments at fair value (cost: $536,968 and $348,954, respectively) |
$ |
528,368 |
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$ |
344,093 |
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| Cash and cash equivalents |
9,181 |
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|
6,375 |
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| Interest and dividend receivable and other assets |
3,177 |
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|
2,149 |
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Deferred financing costs (net of accumulated amortization of $4,432 and $3,314, respectively) |
5,966 |
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|
7,084 |
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| Total assets |
$ |
546,692 |
|
|
$ |
359,701 |
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| LIABILITIES |
|
|
|
| SPV Facility |
$ |
300,500 |
|
|
$ |
86,000 |
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| Accounts payable and other liabilities to affiliates |
— |
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|
42 |
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| Interest payable |
1,513 |
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|
695 |
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| Total liabilities |
302,013 |
|
|
86,737 |
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| NET ASSETS |
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| Contributed capital |
153,709 |
|
|
197,064 |
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|
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| Total undistributed earnings |
90,970 |
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|
75,900 |
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| Total net assets |
244,679 |
|
|
272,964 |
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| Total liabilities and net assets |
$ |
546,692 |
|
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$ |
359,701 |
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MSCC Funding’s statements of operations for the three and nine months ended September 30, 2026 and 2025 are as follows:
Statements of Operations
(in thousands)
(Unaudited)
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
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|
2026 |
|
2025 |
|
2026 |
|
2025 |
| INVESTMENT INCOME: |
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| Interest, dividend and fee income |
|
$ |
14,587 |
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$ |
10,154 |
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$ |
39,774 |
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$ |
31,242 |
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| EXPENSES: |
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| Interest |
|
(4,724) |
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|
(3,033) |
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|
(12,327) |
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|
(10,621) |
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| Management fee to MSCC |
|
(697) |
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|
(459) |
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|
(1,848) |
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|
(1,203) |
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| General and administrative |
|
(24) |
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|
(11) |
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|
(66) |
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|
(127) |
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| Total expenses |
|
(5,445) |
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|
(3,503) |
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|
(14,241) |
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|
(11,951) |
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| NET INVESTMENT INCOME |
|
9,142 |
|
|
6,651 |
|
|
25,533 |
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|
19,291 |
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| Total net realized loss |
|
— |
|
|
(2,481) |
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|
(6,725) |
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|
(2,481) |
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| Total net unrealized appreciation (depreciation) |
|
741 |
|
|
2,226 |
|
|
(3,738) |
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|
(64) |
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| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
$ |
9,883 |
|
|
$ |
6,396 |
|
|
$ |
15,070 |
|
|
$ |
16,746 |
|
|