v3.26.3
DEBT
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
A summary of Main Street’s debt as of September 30, 2026 is as follows:
Outstanding
Balance
Net Unamortized Debt
Issuance Premiums
(Costs/Discounts) (1)
Recorded Value
Estimated
Fair Value (2)
(in thousands)
Corporate Facility$495,000 $— $495,000 $495,000 
SPV Facility300,500 — 300,500 300,500 
March 2029 Notes
550,000 555 550,555 556,265 
June 2027 Notes
400,000 (215)399,785 402,780 
August 2028 Notes
350,000 (1,431)348,569 346,273 
SBIC debentures350,000 (4,524)345,476 306,346 
April 2031 Notes
150,000 (957)149,043 144,806 
Total debt$2,595,500 $(6,572)$2,588,928 $2,551,970 
___________________________
(1)The unamortized deferred financing costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets. The net unamortized debt issuance costs/discounts related to the June 2027 Notes, August 2028 Notes, SBIC debentures and April 2031 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets, while the net unamortized debt issuance premium related to the March 2029 Notes is reflected as an addition to the carrying value on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt is shown as if Main Street had adopted the fair value option under ASC 825, Financial Instruments (“ASC 825”). See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
A summary of Main Street’s debt as of December 31, 2025 is as follows:
Outstanding
Balance		Net Unamortized
Debt Issuance
Costs/Discounts (1)		Recorded ValueEstimated
Fair Value (2)
(in thousands)
Corporate Facility$432,000 $— $432,000 $432,000 
SPV Facility86,000 — 86,000 86,000 
July 2026 Notes
500,000 (285)499,715 496,150 
June 2027 Notes
400,000 (431)399,569 408,764 
August 2028 Notes
350,000 (2,004)347,996 352,293 
March 2029 Notes
350,000 (2,279)347,721 365,649 
SBIC debentures350,000 (5,407)344,593 310,930 
Total debt$2,468,000 $(10,406)$2,457,594 $2,451,786 
___________________________
(1)The unamortized deferred financing costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the net unamortized debt issuance costs/discounts related to the July 2026 Notes, June 2027 Notes, August 2028 Notes, March 2029 Notes and SBIC debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt is shown as 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.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
A summary of Main Street’s interest expense for the three and nine months ended September 30, 2026 and 2025 is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
Corporate Facility$6,795 $4,107 $14,761 $14,431 
SPV Facility4,724 3,033 12,327 10,621 
March 2029 Notes
9,499 6,261 25,235 18,783 
June 2027 Notes
6,571 6,572 19,715 19,715 
August 2028 Notes
4,916 2,452 14,748 2,452 
SBIC debentures3,159 3,166 9,384 9,452 
April 2031 Notes2,652 — 5,063 — 
July 2026 Notes
605 3,882 8,368 11,645 
December 2025 Notes
— 2,999 — 9,060 
Total interest expense$38,921 $32,472 $109,601 $96,159 
A summary of Main Street’s weighted-average amount of total debt outstanding and overall weighted-average effective interest rate including amortization of debt issuance costs, original issuance discounts and premiums and fees on unused lender commitments for the three and nine months ended September 30, 2026 and 2025 is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(dollars in millions)
Weighted-average debt outstanding$2,562.9 $2,242.1 $2,548.6 $2,208.9 
Weighted-average effective interest rate6.1 %5.8 %5.7 %5.8 %
Corporate Facility
Main Street maintains a multi-year revolving credit facility (the “Corporate Facility”) to provide additional liquidity to support its investment and operational activities. In June 2026, Main Street entered into an amendment to the Corporate Facility to, among other things: (i) increase the revolving commitments to $1.240 billion, (ii) increase the accordion feature providing Main Street with the right to request increases in commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments to up to a total of $1.860 billion and (iii) extend the revolving period and final maturity date through June 2030 and to June 2031, respectively.
As of September 30, 2026, the Corporate Facility included (i) total commitments of $1.240 billion from a diversified group of 18 lenders, (ii) an accordion feature with the right to request an increase in commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments up to a total of $1.860 billion and (iii) a revolving period through June 2030 and a final maturity date in June 2031.
As of September 30, 2026, borrowings under the Corporate Facility bore interest, subject to Main Street’s election and resetting on a monthly basis on the first of each month, at a rate equal to the applicable SOFR plus a credit spread adjustment of 0.10% plus 1.775% (or 1.65% after satisfying certain step-down conditions in the future). Main Street pays unused commitment fees of 0.25% on the unused lender commitments under the Corporate Facility. The Corporate Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the equity ownership and assets of the Funds, the Structured Subsidiaries and the External Investment Manager. In connection with the Corporate Facility, MSCC has made customary representations and warranties and is subject to certain leverage and borrowing base limitations, covenants, reporting and other requirements customary for similar credit facilities.
As of September 30, 2026, the interest rate for borrowings on the Corporate Facility was 5.6%. The average interest rate for borrowings under the Corporate Facility was 5.6% and 6.2% for the three months ended September 30, 2026 and 2025, respectively, and 5.5% and 6.2%, for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, Main Street was in compliance with all financial covenants of the Corporate Facility.
SPV Facility
Main Street, through MSCC Funding I, LLC (“MSCC Funding”), a wholly-owned Structured Subsidiary that primarily holds debt investments, maintains a special purpose vehicle revolving credit facility (the “SPV Facility” and, together with the Corporate Facility, the “Credit Facilities”) to finance its investment and operational activities.
As of September 30, 2026, the SPV Facility included (i) total commitments of $600.0 million from a diversified group of six lenders, (ii) an accordion feature providing MSCC Funding with the right to request increases in commitments under the facility, subject to the satisfaction of various conditions, from new and existing lenders on the same terms and conditions as the existing commitments to up to a total of $800.0 million and (iii) a revolving period through September 2028 and a final maturity date in September 2030. Advances under the SPV Facility bear interest at a rate equal to the applicable SOFR in effect, plus an applicable margin of 1.95% during the revolving period and 2.075% and 2.20% during the first and second years thereafter, respectively. MSCC Funding pays a commitment fee of 0.40% on the unused lender commitments up to 50% of the total lender commitments and 0.75% on the unused lender commitments greater than 50% of the total lender commitments. The SPV Facility is secured by a first lien on the assets of MSCC Funding and its subsidiaries. In connection with the SPV Facility, MSCC Funding has made customary representations and warranties and is subject to certain leverage and borrowing base limitations, covenants, reporting and other requirements customary for similar credit facilities.
As of September 30, 2026, the interest rate for borrowings on the SPV Facility was 5.6%. The average interest rate for borrowings under the SPV Facility was 5.6% and 6.3% for the three months ended September 30, 2026 and 2025, respectively, and 5.6% and 6.4%, for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, MSCC Funding was in compliance with all financial covenants of the SPV Facility.
MSCC Funding’s balance sheets as of September 30, 2026 and December 31, 2025 are as follows:
Balance Sheets
(in thousands)
September 30, 2026December 31, 2025
(Unaudited)
ASSETS
Investments at fair value (cost: $536,968 and $348,954, respectively)
$528,368 $344,093 
Cash and cash equivalents9,181 6,375 
Interest and dividend receivable and other assets3,177 2,149 
Deferred financing costs (net of accumulated amortization of $4,432 and $3,314, respectively)
5,966 7,084 
Total assets$546,692 $359,701 
LIABILITIES
SPV Facility$300,500 $86,000 
Accounts payable and other liabilities to affiliates— 42 
Interest payable1,513 695 
Total liabilities302,013 86,737 
NET ASSETS
Contributed capital153,709 197,064 
Total undistributed earnings90,970 75,900 
Total net assets244,679 272,964 
Total liabilities and net assets$546,692 $359,701 
MSCC Funding’s statements of operations for the three and nine months ended September 30, 2026 and 2025 are as follows:
Statements of Operations
(in thousands)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
INVESTMENT INCOME:
Interest, dividend and fee income$14,587 $10,154 $39,774 $31,242 
EXPENSES:
Interest(4,724)(3,033)(12,327)(10,621)
Management fee to MSCC(697)(459)(1,848)(1,203)
General and administrative(24)(11)(66)(127)
Total expenses(5,445)(3,503)(14,241)(11,951)
NET INVESTMENT INCOME9,142 6,651 25,533 19,291 
Total net realized loss— (2,481)(6,725)(2,481)
Total net unrealized appreciation (depreciation)741 2,226 (3,738)(64)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$9,883 $6,396 $15,070 $16,746 
March 2029 Notes
In January 2024, Main Street issued $350.0 million in aggregate principal amount of 6.95% unsecured notes due March 1, 2029 (the “March 2029 Notes”) at an issue price of 99.865%. Subsequently, in March 2026, Main Street issued an additional $200.0 million in aggregate principal amount of the March 2029 Notes at a public offering price of 102.061% resulting in a yield-to-maturity of 6.164% on such issuance. The March 2029 Notes issued in March 2026 have identical terms as, and are a part of a single series with, the March 2029 Notes issued in January 2024. The $550.0 million of outstanding March 2029 Notes bear interest at 6.95% per year, payable semiannually on March 1 and September 1 of each year, with a yield-to-maturity of 6.68%. The March 2029 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The March 2029 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions.
As of September 30, 2026, Main Street was in compliance with all covenants and other requirements of the March 2029 Notes.
June 2027 Notes
In June 2024, Main Street issued $300.0 million in aggregate principal amount of 6.50% unsecured notes due June 4, 2027 (the “June 2027 Notes”) at an issue price of 99.793%. Subsequently, in September 2024, Main Street issued an additional $100.0 million in aggregate principal amount of the June 2027 Notes at a public offering price of 102.134% resulting in a yield-to-maturity of 5.617% on such issuance. The June 2027 Notes issued in September 2024 have identical terms as, and are a part of a single series with, the June 2027 Notes issued in June 2024. The $400.0 million of outstanding June 2027 Notes bear interest at 6.50% per year, payable semiannually on June 4 and December 4 of each year, with a yield-to-maturity of 6.34%. The June 2027 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The June 2027 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions.
As of September 30, 2026, Main Street was in compliance with all covenants and other requirements of the June 2027 Notes.
August 2028 Notes
In August 2025, Main Street issued $350.0 million in aggregate principal amount of 5.40% unsecured notes due August 15, 2028 (the “August 2028 Notes”) at an issue price of 99.989%. The August 2028 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The August 2028 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The August 2028 Notes bear interest at a rate of 5.40% per year payable semiannually on February 15 and August 15 of each year.
As of September 30, 2026, Main Street was in compliance with all covenants and other requirements of the August 2028 Notes.
SBIC Debentures
Under previous SBIC regulations, SBA-approved SBICs under common control had the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. In May 2026, the Investing in All of America Act was enacted, increasing the maximum leverage available to commonly controlled SBICs. This allows access to an additional $125.0 million of SBIC debenture capacity above the previous $350.0 million maximum, bringing total potential capacity to $475.0 million. In September 2026, MSMF received SBA approval to increase its SBIC debenture capacity by $75.0 million to $250.0 million. Combined with MSC III, this gives Main Street, through the Funds, $425.0 million of SBIC debenture capacity. Under existing SBA-approved commitments, Main Street, through the Funds, had $350.0 million of outstanding SBIC debentures as of both September 30, 2026 and December 31, 2025. SBIC debentures provide for interest to be paid semiannually, with principal due at the applicable 10-year maturity date of each debenture. The principal amount of the debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. The weighted-average annual interest rate on the SBIC debentures was 3.3% as of both September 30, 2026 and December 31, 2025. The first principal maturity due under the existing SBIC debentures is in 2027, and the weighted-average remaining duration as of September 30, 2026 was 3.9 years. In accordance with SBIC regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA. Main Street expects to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds.
As of September 30, 2026, the SBIC debentures consisted of (i) $175.0 million par value of SBIC debentures issued by MSMF, with a recorded value of $171.4 million net of unamortized debt issuance costs of $3.6 million, and (ii) $175.0 million par value of SBIC debentures issued by MSC III, with a recorded value of $174.1 million net of unamortized debt issuance costs of $0.9 million.
April 2031 Notes
Pursuant to a Master Note Purchase Agreement dated April 8, 2026 (the “April 2031 Note Purchase Agreement”), Main Street issued $150.0 million in aggregate principal amount of 6.93% Series A Senior Notes due April 15, 2031 (the “April 2031 Notes”).
Interest on the April 2031 Notes is due semiannually on April 15 and October 15 of each year, beginning on October 15, 2026. The April 2031 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. In addition, Main Street is obligated to offer to prepay the April 2031 Notes at par plus accrued and unpaid interest up to, but excluding, the date of prepayment, if certain change in control events occur. In the event of a Below Investment Grade Event, a Secured Debt Ratio Event and/or an Unsecured Debt Coverage Ratio Event (each as defined in the April 2031 Note Purchase Agreement), the April 2031 Notes will bear interest at an increased rate from the date of the occurrence of the Below Investment Grade Event, Secured Debt Ratio Event and/or Unsecured Debt Coverage Ratio Event to and until the date on which the Below Investment Grade Event, Secured Debt Ratio Event and/or Unsecured Debt Coverage Ratio Event ends. The April 2031 Notes are general unsecured obligations of Main Street and its subsidiary guarantors that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by Main Street and its subsidiary guarantors.
The April 2031 Note Purchase Agreement also contains customary terms, conditions, covenants and events of default for senior unsecured notes issued in a private placement. As of September 30, 2026, Main Street was in compliance with all covenants and other requirements of the April 2031 Notes.
July 2026 Notes
In July 2026, Main Street repaid the $500.0 million principal amount of the issued and outstanding 3.00% unsecured notes (the “July 2026 Notes”) at par on their scheduled maturity date. The outstanding aggregate principal amount of the July 2026 Notes was $500.0 million as of December 31, 2025.
December 2025 Notes
In September 2025, Main Street repaid the $100.0 million principal amount of the issued and outstanding 7.84% Series A unsecured notes (the “December 2025 Series A Notes”) and the $50.0 million principal amount of the issued and outstanding 7.53% Series B unsecured notes (the “December 2025 Series B Notes” and, together with the December 2025 Series A Notes, the “December 2025 Notes”) prior to maturity at par value plus the accrued and unpaid interest. The December 2025 Notes were due to mature on December 23, 2025.