| Schedule of Debt |
Summary of debt as of March 31, 2023 is as follows:
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Outstanding
Balance |
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Unamortized Debt
Issuance
(Costs)/Premiums (1)
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Recorded Value |
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Estimated Fair
Value (2)
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(dollars in thousands) |
| Corporate Facility |
$ |
394,000 |
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$ |
— |
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$ |
394,000 |
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$ |
394,000 |
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| SPV Facility |
170,000 |
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— |
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|
170,000 |
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|
170,000 |
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July 2026 Notes |
500,000 |
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(1,733) |
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498,267 |
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438,945 |
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May 2024 Notes |
450,000 |
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590 |
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450,590 |
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439,754 |
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| SBIC Debentures |
334,000 |
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(5,794) |
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328,206 |
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261,555 |
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December 2025 Notes |
150,000 |
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(1,422) |
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148,578 |
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153,598 |
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| Total Debt |
$ |
1,998,000 |
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$ |
(8,359) |
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$ |
1,989,641 |
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$ |
1,857,852 |
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____________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, December 2025 Notes and SBIC Debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt 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.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Summary of debt as of December 31, 2022 is as follows:
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Outstanding
Balance |
|
Unamortized Debt
Issuance
(Costs)/Premiums (1)
|
|
Recorded Value |
|
Estimated Fair
Value (2)
|
|
(dollars in thousands) |
| Corporate Facility |
$ |
407,000 |
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$ |
— |
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$ |
407,000 |
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$ |
407,000 |
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| SPV Facility |
200,000 |
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— |
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|
200,000 |
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|
200,000 |
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July 2026 Notes |
500,000 |
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(1,864) |
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498,136 |
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434,250 |
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May 2024 Notes |
450,000 |
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|
727 |
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450,727 |
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444,749 |
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| SBIC Debentures |
350,000 |
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(6,086) |
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|
343,914 |
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290,204 |
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December 2025 Notes |
100,000 |
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(675) |
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99,325 |
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106,607 |
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| Total Debt |
$ |
2,007,000 |
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$ |
(7,898) |
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$ |
1,999,102 |
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$ |
1,882,810 |
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____________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, December 2025 Notes and SBIC Debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt 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.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
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| Schedule of Interest Expense |
Summarized interest expense for the three months ended March 31, 2023 and 2022 is as follows:
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Three Months Ended March 31, |
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2023 |
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2022 |
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(dollars in thousands) |
| Corporate Facility |
$ |
6,610 |
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$ |
2,059 |
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| SPV Facility |
3,427 |
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— |
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| July 2026 Notes |
3,882 |
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3,882 |
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| May 2024 Notes |
5,714 |
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5,714 |
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| SBIC Debentures |
2,752 |
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2,799 |
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December 2025 Notes |
2,612 |
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— |
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December 2022 Notes |
— |
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2,233 |
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| Total Interest Expense |
$ |
24,997 |
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$ |
16,687 |
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| Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding |
MSCC Funding balance sheets as of March 31, 2023 and December 31, 2022 are as follows:
Balance Sheets
(dollars in thousands)
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March 31, 2023 |
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December 31, 2022 |
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(Unaudited) |
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| ASSETS |
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| Investments at fair value: |
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Non-Control Investments (cost: $300,018 and $314,752 as of March 31, 2023 and December 31, 2022, respectively) |
$ |
301,102 |
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$ |
316,507 |
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| Cash and cash equivalents |
10,865 |
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10,838 |
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| Interest and dividend receivable and other assets |
3,281 |
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2,828 |
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| Accounts receivable to MSCC and its subsidiaries |
— |
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|
556 |
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| Receivable for securities sold |
62 |
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|
369 |
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Deferred financing costs (net of accumulated amortization of $282 and $141 as of March 31, 2023 and December 31, 2022, respectively) |
2,679 |
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2,630 |
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| Total assets |
317,989 |
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|
333,728 |
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| LIABILITIES |
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| SPV Facility |
$ |
170,000 |
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$ |
200,000 |
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| Accounts payable and other liabilities |
192 |
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112 |
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| Interest payable |
1,104 |
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1,272 |
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| Total liabilities |
171,296 |
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201,384 |
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| NET ASSETS |
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| Contributed capital |
136,883 |
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126,010 |
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| Total undistributed earnings |
9,810 |
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6,334 |
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| Total net assets |
146,693 |
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132,344 |
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| Total liabilities and net assets |
$ |
317,989 |
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$ |
333,728 |
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MSCC Funding statement of operations for the three months ended March 31, 2023 are as follows:
Statement of Operations
(dollars in thousands)
(Unaudited)
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March 31, 2023 |
| INVESTMENT INCOME: |
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| Interest, fee and dividend income: |
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| Non‑Control/Non‑Affiliate investments |
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$ |
8,717 |
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| EXPENSES: |
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| Interest |
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(3,428) |
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| Management Fee to MSCC |
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(365) |
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| General and administrative |
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(57) |
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| Total expenses |
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(3,850) |
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| NET INVESTMENT INCOME (LOSS) |
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4,867 |
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| NET UNREALIZED APPRECIATION (DEPRECIATION): |
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| Non‑Control/Non‑Affiliate investments |
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(1,391) |
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| SBIC debentures |
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— |
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| Total net unrealized appreciation (depreciation) |
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(1,391) |
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| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
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$ |
3,476 |
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