Main Street Capital Corporation · NYSE:MAIN
Main Street Capital — IPO Roadshow (May 2022)
42 slides from Main Street Capital's IPO roadshow presentation, May 11, 2022
Slide 1: Debt Capital Markets Presentation First Quarter 2022
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 1 Debt Capital Markets Presentation First Quarter – 2022 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Filed pursuant to Rule 433 Issuer Free Writing Prospectus dated May 6, 2022 Relating to Registration Statement No. 3
Slide 2: Disclaimers
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 2 Disclaimers Main Street Capital Corporation (MAIN) cautions that statements in this presentation that are forward - looking, and provide other than historical information, involve risks and uncertainties that may impact our future r
Slide 3: Main Street Capital Corporation 1st Quarter 2022
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 3 Main Street Capital Corporation 1 st Quarter – 2022
Slide 4: MAIN is a Principal Investor in Private Debt and Equity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 4 MAIN is a Principal Investor in Private Debt and Equity Hybrid debt and equity investment strategy, internally managed operating structure and focus on Lower Middle Market differentiates MAIN from other investment firms Conservative
Slide 5: Investment Portfolio by Type of Investment
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 5 First Lien Debt, 99.1%, $2.6b Junior Debt, 0.9%, $22.7m Total Debt Investments $2.6 billion Investment Portfolio – By Type of Investment (1) Equity, 26.5%, $978.1m Other Portfolio Equity, 2.8%, $102.4m Total Investment Portfolio $3.
Slide 6: Unique Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 6 Unique Investment Strategy Middle Market • Larger companies than LMM strategy, with EBITDA between $20 - $100 million • First lien, senior secured debt investments • Floating rate debt investments • Large addressable market • Can pr
Slide 7: Portfolio Highlights
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 7 Portfolio Highlights (1) Middle Market • $397.3 million of total investments • 36 companies • $382.0 million of debt investments (96% of Middle Market portfolio) • 99% of debt investments are first lien (2) • Average investment size
Slide 8: Business Development Company (BDC) Background
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 8 Business Development Company (BDC) Background Leverage • Regulatory restrictions on debt leverage levels require BDCs to maintain conservative leverage • Must maintain an asset to debt coverage ratio of at least 1.5x (1) Full Transp
Slide 9: MAIN Capital Structure
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 9 MAIN Capital Structure (1) Debt amounts reflected at par value (2) Based on stock price of $42.64 as of March 31, 2022 Current capitalization ($ in 000's) March 31, 2022 % of Capitalization Cash 17,952 $ Debt at parent Credit Facili
Slide 10: Conservative Leverage
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 10 Conservative Leverage (1) Assets at the BDC/RIC parent level represent the collateral available to MAIN’s debt capital market investors (2) As of March 31, 2022, the Credit Facility includes total commitments of $855.0 million, mat
Slide 11: Conservative Leverage - Regulatory
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 11 Conservative Leverage - Regulatory Passage of the Small Business Credit Availability Act in December 2017 provided the opportunity for BDCs to obtain board or shareholder approval to access additional leverage by lowering the requi
Slide 12: Conservative Leverage - Excess Collateral Improves Over Time
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 12 Conservative Leverage - Excess Collateral Improves Over Time MAIN’s conservative use of leverage and use of equity to fund its growth results in significant excess collateral that provides protection to lenders MAIN’s management of
Slide 13: Key Credit Highlights
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 13 Key Credit Highlights • Management team has over 100 years of collective investment experience and relationships • Long - term working relationships together dating back over 20 years • Significant management equity ownership • Mea
Slide 14: MAIN Executive Management Team
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 14 MAIN Executive Management Team (1) Member of MAIN Executive Committee (2) Member of MAIN Investment Committee; Vince Foster, MAIN’s Chairman of the Board, is also a member of MAIN’s Investment Commit tee (3) Chief Investment Office
Slide 15: Significant Management Ownership / Investment
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 15 March 31, 2022 (3) Management (1) 3,125,030 $133,251,279 # of Shares (2) Significant Management Ownership / Investment Significant equity ownership by MAIN’s management team, coupled with internally managed structure, provides alig
Slide 16: Efficient and Leverageable Operating Structure
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 16 Efficient and Leverageable Operating Structure “Internally managed” structure means no external management fees or expenses are paid Alignment of interest between management and investors • Greater incentives to maximize increases
Slide 17: MAIN Maintains a Significant Operating Cost Advantage
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 17 MAIN Maintains a Significant Operating Cost Advantage (1) Total operating expenses excluding interest expense (2) For the trailing twelve month period ended March 31, 2022 (3) For the trailing twelve month period ended March 31, 20
Slide 18: Stable, Long-Term Leverage – Significant Unused Capacity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 18 Stable, Long - Term Leverage – Significant Unused Capacity MAIN maintains a conservative capital structure, with limited overall leverage and low cost, long - term debt Capital structure is designed to correlate to and complement t
Slide 19: Long-term Maturity of Debt Obligations
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 19 MAIN (2) Internally Managed BDC’s (3)(5) Externally Managed BDC’s (4)(5) Long - term Maturity of Debt Obligations MAIN’s conservative capital structure provides long - term access to attractively - priced and structured debt facili
Slide 20: Interest Rate Impact and Sensitivity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 20 Interest Rate Impact and Sensitivity 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 th
Slide 21: At-The-Market (ATM) Equity Program
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 21 At - The - Market (ATM) Equity Program Provides permanent capital to match indefinite or long - term holding period for LMM investments Facilitates maintenance of conservative leverage position Issued equity is accretive to NAV per
Slide 22: LMM Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 22 LMM Investment Strategy Investment Objectives • High cash yield from secured debt investments (10.8% weighted - average cash coupon as of March 31, 2022); plus • Dividend income and periodic capital gains from equity investments In
Slide 23: LMM Investment Opportunity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 23 LMM Investment Opportunity Large and critical portion of U.S. economy • 195,000+ domestic LMM businesses (1) LMM is under - served from a capital perspective and less competitive Inefficient asset class generates pricing inefficien
Slide 24: Private Loan Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 24 Private Loan Investment Strategy Investment Objectives • Access proprietary investments with attractive risk - adjusted return characteristics • Generate cash yield to support MAIN monthly dividend Investment Characteristics • Inve
Slide 25: Middle Market Debt Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 25 Middle Market Debt Investment Strategy Investment Objective • Generate cash yield to support MAIN monthly dividend Investments in secured and/or rated debt investments • First lien, senior secured debt investments • Floating rate d
Slide 26: Asset Management Business
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 26 Asset Management Business MAIN (1) is the investment adviser to and administrator of MSC Income Fund, Inc. (MSIF), a non - listed BDC • MAIN (1) provides asset management services, including sourcing, diligence and post - investmen
Slide 27: Total Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 27 Total Investment Portfolio Includes complementary LMM debt and equity investments, Private Loan debt investments and Middle Market debt investments Total investment portfolio at fair value consists of approximately 49% LMM / 34% Pr
Slide 28: Portfolio Snapshot – Significant Diversification
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 28 Portfolio Snapshot – Significant Diversification (1) Excludes MAIN's one short - term portfolio investment of $2.0 million at cost and fair value as of March 31, 2022 and December 31, 2021. MAIN held no short - term portfolio inves
Slide 29: Portfolio Snapshot – Significant Diversification (cont.)
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 29 Portfolio Snapshot – Significant Diversification (cont.) (1) Excludes MAIN's one short - term portfolio investment of $2.0 million at cost and fair value as of March 31, 2022 and December 31, 2021. MAIN held no short - term portfol
Slide 30: Portfolio Snapshot – Significant Diversification (cont.)
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 30 Portfolio Snapshot – Significant Diversification (cont.) (1) Excludes MAIN's one short - term portfolio investment of $2.0 million at cost and fair value as of March 31, 2022 and December 31, 2021. MAIN held no short - term portfol
Slide 31: Total Portfolio by Industry
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 31 Total Portfolio by Industry (as a Percentage of Cost) (1) (1) Excluding MAIN’s Other Portfolio investments, the External Investment Manager, and short - term portfolio investments, each as des cribed in MAIN’s public filings, which
Slide 32: Total Portfolio: Invested Capital by Transaction Type and Geography
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 32 LBO/MBO Acquisition Recapitalization/ Refinancing Diversified Total Portfolio (as a Percentage of Cost) (1) Invested Capital by Transaction Type Invested Capital by Geography (2) 29% 15% 21% 13% 22% (1) Excluding MAIN’s Other Portf
Slide 33: LMM Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 33 LMM Investment Portfolio 75 portfolio companies / $1.8 billion in fair value • 49% of total investment portfolio at fair value Debt yielding 11.1% (1) (72% of LMM portfolio at cost) • 99% of debt investments have first lien positio
Slide 34: LMM Investment Portfolio Credit Statistics
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 34 LMM Investment Portfolio Median LMM portfolio credit statistics: • Senior leverage of 2.8 x EBITDA through MAIN debt position • 2.8 x EBITDA to senior interest coverage • Total leverage of 2.8x EBITDA including debt junior in prior
Slide 35: Private Loan Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 35 Private Loan Investment Portfolio 79 investments / $1.3 billion in fair value • 34% of total investment portfolio at fair value Average investment size of $16.1 million (1) (less than 1% of total portfolio) Investments in secured d
Slide 36: Middle Market Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 36 Middle Market Investment Portfolio 36 investments / $397.3 million in fair value • 11% of total investment portfolio at fair value Average investment size of $12.3 million (1) (less than 1% of total portfolio) Investments in secure
Slide 37: Non-GAAP Information
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 37 Non - GAAP Information Distributable net investment income is net investment income, as determined in accordance with U .. S .. generally accepted accounting principles, or U .. S .. GAAP, excluding the impact of share - based comp
Slide 38: Appendix
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 38 Main Street Capital Corporation Appendix
Slide 39: MAIN Income Statement Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 39 MAIN Income Statement Summary (1) Positive percentage represents an increase and negative percentage represents a decrease to the Net Increase (Decrease) in Ne t A ssets (2) See Non - GAAP Information disclosures on page 37 of this
Slide 40: MAIN Per Share Change in Net Asset Value
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 40 MAIN Per Share Change in Net Asset Value (NAV) (1) See Non - GAAP Information disclosures on page 37 and reconciliation of DNII per share to Net Investment Income per share on page 39 of this presentation (2) Includes accretive imp
Slide 41: MAIN Balance Sheet Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 41 MAIN Balance Sheet Summary (1) Includes $500.0 million of 3.00% Notes due July 2026, $450.0 million of 5.20% Notes due May 2024 and $185.0 million of 4.50% Not es due December 2022 ($ in 000's, except per share amounts) Q1 21 Q2 21
Slide 42: MAIN Corporate Data
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 42 MAIN Corporate Data Board of Directors Vincent D. Foster Chairman of the Board Main Street Capital Corporation J. Kevin Griffin Chief Strategy Officer MaineHealth Dwayne L. Hyzak CEO Main Street Capital Corporation John E. Jackson