Here’s why Main Street’s capital stock is falling today
Main Street Capital Corporation MAIN Shares are trading down 5.79% at $42.29 on Thursday morning after the company announced a public offering of $50 million common stock in Wednesday’s after-hours session.
The company said Thursday morning that it had priced an underwritten public offering of 1,170,000 shares of its common stock.
The price has been set at $42.85 per share, and the net proceeds from the offering, after deducting underwriting discounts and estimated offering costs payable by Main Street, are expected to be approximately $47.9 million. dollars.
Main Street intends to initially use the net proceeds of this offering, including the net proceeds of any exercise of the underwriters’ option to purchase additional shares, to repay outstanding debt borrowed under its credit facility, and then, by further borrowing under the credit facility, to make investments in accordance with its investment objective and strategies, to make investments in marketable securities and investments of idle funds, to pay operating expenses and other obligations in cash and for general corporate purposes.
The offer is expected to close on August 15.
According to data from Benzinga Pro, Main Street Capital has a 52-week high of $47.13 and a 52-week low of $34.35.