Main Street Capital Investor Day Presentation Deck
MAIN ST
CAPITAL CORPORATION
MAIN's Target Leverage
In May 2022, MAIN received Board and Stockholder approval to reduce its minimum regulatory
asset coverage ratio (¹) from 200% to 150%; Our primary goal in obtaining the reduced minimum
regulatory asset coverage ratio (1) is to provide us greater operational flexibility during times of
significant macro disruptions
An additional benefit is to provide MAIN with the flexibility to grow our investment portfolio
under periods of robust net originations, when market conditions may not allow us to raise
additional equity capital at a pace which keeps up with our investment activity
MAIN's long-term leverage targets include a regulatory asset coverage ratio (¹) between 2.25x to
2.1x and a regulatory debt to NAV ratio (¹) between 0.8x to 0.9x
Currently operating at a more conservative position outside of those ranges due to the
current economic backdrop and market volatility
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MAIN's leverage position could flex to a regulatory asset coverage ratio(¹) of ~ 2.0x and a
regulatory debt to NAV ratio (¹1) of ~ 1.0x on a temporary basis under certain conditions (such as
periods of robust originations coupled with lower than expected repayments and/or lower ATM
equity issuance)
In such an event, MAIN will accelerate equity issuances in the current and future quarters
based upon such investment activities to adjust its leverage position back to its long-term
targets
NYSE: MAIN
(1) SBIC Debentures are not included as "senior debt" for purposes of the BDC asset coverage requirements pursuant to exemptive relief received by MAIN; Debt calculated
based on par value of debt
Main Street Capital Corporation
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