Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.23.3
DEBT (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
Summary of debt as of September 30, 2023 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 323,000  $ —  $ 323,000  $ 323,000 
SPV Facility 170,000  —  170,000  170,000 
July 2026 Notes
 500,000  (1,470) 498,530  442,405 
May 2024 Notes
 450,000  318  450,318  445,406 
SBIC Debentures 350,000  (5,761) 344,239  284,128 
December 2025 Notes
 150,000  (1,165) 148,835  150,781 
Total Debt $ 1,943,000  $ (8,078) $ 1,934,922  $ 1,815,720 
____________________
(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, SBIC Debentures and December 2025 Notes 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:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility $ 407,000  $ —  $ 407,000  $ 407,000 
SPV Facility 200,000  —  200,000  200,000 
July 2026 Notes
 500,000  (1,864) 498,136  434,250 
May 2024 Notes
 450,000  727  450,727  444,749 
SBIC Debentures 350,000  (6,086) 343,914  290,204 
December 2025 Notes
 100,000  (675) 99,325  106,607 
Total Debt $ 2,007,000  $ (7,898) $ 1,999,102  $ 1,882,810 
____________________
(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, SBIC Debentures and December 2025 Notes 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.
Schedule of Interest Expense
Summarized interest expense for the three and nine months ended September 30, 2023 and 2022 is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
(dollars in thousands)
Corporate Facility $ 7,157  $ 6,551  $ 21,666  $ 11,249 
SPV Facility 3,665  —  10,605  — 
July 2026 Notes
 3,882  3,882  11,645  11,645 
May 2024 Notes
 5,714  5,714  17,141  17,141 
SBIC Debentures 2,965  2,855  8,435  8,482 
December 2025 Notes
 3,031  —  8,673  — 
December 2022 Notes
 —  2,233  —  6,699 
Total Interest Expense $ 26,414  $ 21,234  $ 78,165  $ 55,216 
Schedule of Condensed Balance Sheet and Statement of Operations of MSCC Funding
MSCC Funding balance sheets as of September 30, 2023 and December 31, 2022 are as follows:
Balance Sheets
(dollars in thousands)
September 30, 2023 December 31, 2022
(Unaudited)
ASSETS
Investments at fair value:
Non-Control Investments (cost: $321,084 and $314,752 as of September 30, 2023 and December 31, 2022, respectively)
 $ 323,403  $ 316,507 
Cash and cash equivalents 11,555  10,838 
Interest and dividend receivable and other assets 3,305  2,828 
Accounts receivable to MSCC and its subsidiaries —  556 
Receivable for securities sold —  369 
Deferred financing costs (net of accumulated amortization of $572 and $141 as of September 30, 2023 and December 31, 2022, respectively)
 2,423  2,630 
Total assets 340,686  333,728 
LIABILITIES
SPV Facility $ 170,000  $ 200,000 
Accounts payable and other liabilities 7,076  112 
Interest payable 1,162  1,272 
Total liabilities 178,238  201,384 
NET ASSETS
Contributed capital 138,163  126,010 
Total undistributed earnings 24,285  6,334 
Total net assets 162,448  132,344 
Total liabilities and net assets $ 340,686  $ 333,728 
MSCC Funding statement of operations for the three and nine months ended September 30, 2023 are as follows:
Statement of Operations
(dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, 2023
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments $ 10,615  $ 29,205 
Total investment income 10,615  29,205 
EXPENSES:
Interest (3,666) (10,605)
Management Fee to MSCC (421) (1,107)
General and administrative (55) (105)
Total expenses (4,142) (11,817)
NET INVESTMENT INCOME 6,473  17,388 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments (1) 563 
Total net unrealized appreciation (depreciation) (1) 563 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,472  $ 17,951