Main Street Capital Fixed Income Presentation Deck
Interest Rate Impact and Sensitivity
MAIN's financial results are subject
to impact from changes in interest
rates; MAIN's capital structure
includes a majority of fixed rate
debt obligations, while MAIN's
investment portfolio includes a
majority of floating rate debt
investments with minimum interest
rate floors
- 71% of MAIN's outstanding debt
obligations have fixed interest
rates(5), limiting the increase in
interest expense
70% of MAIN's debt investments
bear interest at floating rates(5), the
majority of which contain contractual
minimum index rates, or "interest
rate floors" (weighted-average floor
of approximately 110 basis points)(6)
- Provides MAIN the opportunity to
achieve increases in net investment
income if market interest rates
increase, but also results in
reductions to net investment income
if market interest rates decrease
Main Street Capital Corporation
Basis Point
Increase
(Decrease) in
Interes
The following table illustrates the approximate annual changes in the components of MAIN's net
investment income due to hypothetical increases (decreases) in interest rates(1)(2) (dollars in
thousands, except per share data):
(100)
(75)
(50)
(25)
25
50
75
100
$
Increase
(Decrease)
in Interest
Income
(20,695) $
(15,521)
(10,347)
(5,174)
5,174
10,347
15,521
20,695
(Increase)
Decrease
in Interest
Expense(3
5,800 $
4,350
2,900
1,450
NYSE: MAIN
MAIN ST
(1,450)
(2,900)
(4,350)
(5,800)
CAPITAL CORPORATION
Increase
(Decrease) in
Net Investment
Income
Increase
(Decrease) in
Net Investment
Income per
Share (4)
(14,895) $
(11,171)
(7,447)
(3,724)
3,724
7,447
11,171
14,895
(0.18)
(0.14)
(0.09)
(0.05)
0.05
0.09
0.14
0.18
(1) Assumes no changes in the portfolio investments, outstanding borrowings on the Credit Facilities (as
defined on page 18) or other debt obligations existing as June 30, 2023
(2)
Assumes that all LIBOR, SOFR and Prime rates would change effective immediately on the first day of
the period; however, the actual contractual index rate reset dates will vary in future periods generally on
either a monthly or quarterly basis across both our debt investments and our Credit Facilities resulting in
a delay in the realization of the increases or decreases in interest income
(3) The hypothetical (increase) decrease in interest expense would be impacted by the changes in the
amount of debt outstanding under our Credit Facilities, with interest expense (increasing) decreasing as
the debt outstanding under our Credit Facilities increases (decreases)
(4) Per share amount is calculated using shares outstanding as of June 30, 2023
(5) As of June 30, 2023, based on par
(6) Weighted-average interest rate floor calculated based on debt principal balances as of June 30, 2023
Although we believe that this analysis is indicative of the impact of interest rate changes to our net investment
income as of June 30, 2023, the analysis does not take into consideration future changes in the credit market,
credit quality or other business or economic developments that could affect our net investment income.
Accordingly, we can offer no assurances that actual results would not differ materially from the analysis
above.
mainstcapital.com
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