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Main Street Capital (MAIN)

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  • Tue, Mar. 10, 9:05 AM
    | 13 Comments
  • Tue, Feb. 3, 3:44 PM
    • Lower interest rates hadn't really helped one of income players' favorite sectors as they were accompanied by the plunge in oil prices, and worry about what blowups were lurking in BDC portfolios.
    • So even with the 10-year Treasury yield higher by 11 basis points to 1.78% today, oil's now more than 20% run higher in the past few sessions looks to be easing some of those credit concerns, and alongside the rally in BDCs is a nice move higher in junk bonds (HYG +0.6%), (JNK +0.6%).
    • BDC ETFs: BDCL, BDCS, BIZD
    • Individual names: Prospect Capital (PSEC +2.3%), Fifth Street Finance (FSC +3%), FS Investment (FSIC +1.6%), Main Street Capital (MAIN +2.4%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +2.7%), TICC Capital (TICC +3%), PennantPark Investment (PNNT +3.8%), THL Credit (TCRD +3.5%), Golub Capital (GBDC +1.9%).
    | 19 Comments
  • Tue, Jan. 6, 2:11 PM
    • These income producers might typically enjoy the big run lower in interest rates (the 10-year yield is all the way down to 1.94%), but it's coming alongside a continued plunge in oil (now all the way down to $47.61).
    • ETFs: BDCL, BDCS, BIZD
    • Individual names: Fifth Street Finance (FSC -2.1%), Ares Capital (ARCC -1%), FS Investment (FSIC -1.6%), Main Street Capital (MAIN -2.6%), PennantPark Investment (PNNT -3.2%), TCP Capital (TCPC -2.9%), KCAP Financial (KCAP -1.6%).
    • Notably higher for a 2nd straight day is OHA Investment (OHAI +1.9%) after SA Pro's Cahaba Research on Monday morning made the case for buying this busted BDC at a greater than 40% discount to book value.
    | 22 Comments
  • Dec. 17, 2014, 3:41 PM
    • Popular high-yield ETFs HYG and JNK are each ahead by 2% in today's session as the energy sector - which makes up a sizable portion of the high-yield universe posts a strong rally, with the XLE higher by 4.1%.
    • BDCs can sort of be considered the equity equivalents of junk bonds, and they're putting in a big rally today as well.
    • Prospect Capital (PSEC +1.5%), Main Street (MAIN +4.1%), Blackrock Kelso (BKCC +2.4%), Triangle Capital (TCAP +6.4%), KCAP Financial (KCAP +2.6%), THL Credit (TCRD +3.5%), Medley Capital (MCC +2.2%), Fifth Street Finance (FSC +1.5%)
    • ETFs: BDCL, BDCS, BIZD
    | 20 Comments
  • Dec. 8, 2014, 11:30 AM
    • A bellwether of sorts in the BDC sector, Prospect Capital (PSEC -6.2%) earlier announced a big dividend cut, and the suspension of its stock issuance program so long as the share price is so far south of book value.
    • Prospect has some of its own issues to deal with, but common across the sector is too much money chasing too few deals, and the resultant lower yields for lower quality lending.
    • Fifth Street Capital (FSC -2.9%), Triangle Capital (TCAP -6.1%), TICC Capital (TICC -2.2%), KCAP Financial (KCAP -1.7%), Medley Capital (MCC -2.3%) Gladstone (GLAD -3.6%), OHA Investment (OHAI -5%), Blackrock Kelso (BKCC -1.1%), Main Street Capital (MAIN -0.2%), PennantPark (PNNT -1.3%).
    • ETFs: BDCL, BDCS, BIZD
    • Previously: Prospect Capital suspends ATM stock issuance program as dividend is cut (Dec. 8, 2014)
    | 47 Comments
  • Dec. 1, 2014, 11:17 AM
    • Fifth Street Finance (FSC -4.1%) reported mediocre FQ4 results earlier this morning, but nothing particularly out of line with the rest of the sector for the quarter ended September 30.
    • Nevertheless, the entire industry (BDCS -2.2%) is lit up red in mid-morning action: Prospect Capital (PSEC -3.7%), Ares Capital (ARCC -2.2%) FS Investment (FSIC -2.4%), Main Street (MAIN -2.1%), Triangle (TCAP -3.5%), OHA Investment (OHAI -3.8%), FIdus Investment (FDUS -4.2%), PennantPark Investmnet (PNNT -3.2%).
    • ETFs: BDCL, BDCS, BIZD
    | 45 Comments
  • Oct. 15, 2014, 11:05 AM
    • The spread of the junk bond index over Treasurys was below 300 basis points around the start of the summer, and around 400 bps near Labor Day. With today's sharp drop in Treasury yields (without a comparable move down in junk), the spread has blown out to more than 500 basis points.
    • HYG -0.25%, JNK -0.3%
    • Rough publicly traded equity proxies for high-yield, if you will, BDCs remain stuck in a bear market. Prospect Capital (PSEC -3.6%), Fifth Street Finance (FSC -2%), Main Street Capital (MAIN -3.8%), Blackrock Kelso (BKCC -2.6%), TICC Capital (TICC -5.1%), KCAP Financial (KCAP -4.7%).
    • BDC ETFs: BDCL, BDCS, BIZD
    • High-yield ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC
    | 21 Comments
  • Sep. 22, 2014, 2:55 PM
    • As income favorites, business development companies often catch a bid during broader market selloffs (and bond market rallies), but the small caps (IWM -1.3%) are bearing the brunt of today's selling and the BDCs tend to fall into the that sector (though excluded from Russell indices).
    • Fifth Street Finance (FSC -1.1%) has a market cap of $1.3B; Main Street Capital (MAIN -2.6%) - market cap of $1.4B; Apollo Investment (AINV -2%) - $2B; Triangle Capital (TCAP -1.3%) - $730M; Ares Capital (ARCC -0.4%) - $5.1B. Hanging in there better than the rest is Prospect Capital (PSEC -0.1%), with a $3.45B market cap.
    • ETFs: BDCL, BDCS, BIZD
    | 7 Comments
  • Aug. 18, 2014, 11:30 AM
    • Prospect Capital's (PSEC +0.9%) sizable $210M lending deal announced this morning and 9 booked deals over $100M in the last year suggest it and many of its larger brethren are competing for larger borrowers who don't fit the mold of the larger syndicated loan market BDCs typically play in, writes Nicholas Marshi.
    • On the good side, these "story credits" allow Prospect and other BDCs to charge higher rates and fees than are available in the "dirt cheap" syndicated loan market. And Prospect (and others) have become so big that typical middle market deals aren't enough to move the needle on their portfolios anymore.
    • Ideally, though, no individual loan would represent more than a tiny fraction of the portfolio, so while "big fish" deals allow for good earnings and maintenance of the distribution today, Marshi worries about the impact of the blow-up of an individual company or of wider credit issues when the next economic downturn hits.
    • Other large players today: Ares Capital (ARCC +0.8%), FS Investment (FSIC), American Capital (ACAS +1.4%), Apollo Investment (AINV +0.4%), Main Street Capital (MAIN +0.1%).
    • ETFs: BDCL, BDCS, BIZD
    | 15 Comments
  • May. 22, 2014, 3:10 PM
    • Main Street Capital (MAIN +1.3%) has its tail in the air after board member Michael Appling reports the purchase Wednesday of 16.5K company shares at $30.13 each. It brings his stake in Main Street to nearly 82K shares.
    • SEC Form 4
    | Comment!
  • Apr. 30, 2014, 10:28 AM
    • Bridge Bancorp (BDGE +1.1%) is upgraded to Buy by Guggenheim.
    • First Financial Bankshares (FFIN +0.2%) has its Sell rating pulled at Macquarie.
    • MidSouth Bancorp (MSL +1.6%) is upgraded to Outperform by FIG Partners.
    • S&T Bancorp (STBA +0.6%) is upgraded to Outperform by KBW after posting Q1 results yesterday.
    • Deustche Bank boosts Texas Capital Bancshares (TCBI +0.6%) to Buy.
    • Sterne Agee upgrades The Bancorp (TBBK +0.5%) to Buy with an $18 PT.
    • In other financial sector moves, Main Street (MAIN -0.5%) is upgraded to Outperform by Raymond James with a $34 PT, and Waddell & Reed Financial (WDR +0.6%) has been upgraded to Outperform by KBW.
    | Comment!
  • Apr. 8, 2014, 11:34 AM
    • Main Street Capital (MAIN -3.7%) slips to $31.39 after pricing a 4M share secondary offering at $31.50 each.
    • Press release
    | 4 Comments
  • Feb. 25, 2014, 10:35 AM
    • Amid the dropping of Prospect Capital (PSEC -3%) from the S&P SmallCap 600 and Apollo Investment from the S&P MidCap 400, the business development sector is reeling a bit.
    • Ares Capital (ARCC -1.5%), Main Street (MAIN -1.8%), Blackrock Kelso (BKCC -3.3%), Triangle (TCAP -2.2%), TICC Capital (TICC -1.2%), PennantPark (PNNT -2.7%), THL Credit (TCRD -1.2%), Hercules Technology (HTGC -2.6%).
    • BDC ETFs: BDCL, BDCS, BIZD
    • See also: AINV with 12M share secondary
    | 41 Comments
  • Aug. 13, 2013, 9:15 AM
    • Main Street Capital (MAIN) prices a 4M share secondary at $29.75 with net proceeds expected to be about $114.3M.
    • If the 600K share greenshoe option is exercised, the offering will add 13.2% to the float.
    • Shares -4.8% to $29.60 premarket.
    • Source: Press release.
    | Comment!
  • Jun. 7, 2013, 10:43 AM
    Treasury prices are sharply lower, but high yield (HYG +0.6%) is enjoying a nice bounce after a rough few weeks. The move is translating into higher prices for BDCs (BDCS +1.5%) - whose assets are somewhat comparable to junk debt. Leading: Prospect (PSEC +1.2%), Main Street (MAIN +2.2%), Triangle (TCAP +1%), MCG (MCGC +1.6%), American Capital (ACAS +1.7%), Fifth Street (FSC +1.1%), and Golub (GBDC +0.9%). As SA's Alberto Alfonso points out, American Capital - for one - can take advantage of recent declines to buy back even more shares at well below book value.
    | 1 Comment
  • Jun. 4, 2013, 1:43 PM
    Main Street Capital (MAIN -4.2%) continues for a 2nd day to bear the brunt of the selling in the BDC sector (BDCS -0.7%). The company's just-published investor day presentation is typical conference stuff - showing how the company is different (and superior) to its sector brethren, explaining the opportunities in lower and middle-market lending, and including several case studies. Also notably lower: MCG Capital (MCGC -1.6%), Prospect (PSEC -1.3%), and Hercules (HTGC -1%).
    | 16 Comments
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Company Description
Main Street Capital Corporation is an investment firm engaged in providing customized debt and equity financing to lower middle market companies and debt capital to middle market companies.