Main Street Capital Investor Day Presentation Deck
5 Year Strategic Overview - Capital Structure
Maintain conservative
leverage and low cost,
diversified capital
structure
Main Street Capital Corporation
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Continue to diversify capital structure
Utilize maximum permitted amount of attractive Small Business Investment
Company (SBIC) debentures ($350 million)
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MAIN ST
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CAPITAL CORPORATION
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Long-term, low cost capital not subject to regulatory leverage limits
Maintain investment grade debt ratings from Fitch and S&P and issue
investment grade notes (with timing based upon market conditions) to
maintain an attractive overall cost of capital, staggered debt maturities
schedule and debt maturities that match profile of portfolio investments
Maintain attractive revolving credit facilities to ensure adequate liquidity,
provide short-term funding of portfolio investments and provide interim
funding between long-term debt and equity capital activities
Continue to operate with a conservative leverage profile
Target Regulatory Debt to Equity, excluding SBIC debentures, of
approximately 0.8x to 0.9x
Continue effective use of low cost and efficient ATM equity offerings to
maintain optimal liquidity, match capital with long term to permanent nature
of LMM equity investments and maintain conservative leverage position
Target Regulatory Asset Coverage Ratio between 2.25x to 2.1x, providing
meaningful and conservative cushion to minimum BDC regulatory required
ratio of 1.5x
Maintain significant liquidity position at all times – liquidity is a significant
strength at all times, but particularly during times of market stress or
disruption (i.e. COVID-19 pandemic and banking industry disruptions)
NYSE: MAIN
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