Quarterly report [Sections 13 or 15(d)]

DEBT (Tables)

v3.26.1
DEBT (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
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 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 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  %
Schedule of Interest Expense
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 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
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