MSC Income Fund, the investment‑adviser arm of Main Street Capital Corporation, completed a private offering of $150 million in unsecured fixed‑rate notes on March 13 2026. The notes carry a 6.34% annual coupon, payable semi‑annually, and mature on May 31 2029.
The proceeds will be used to repay a portion of the fund’s floating‑rate revolving credit facility and to refinance or fund new investments in lower‑middle‑market and private‑loan opportunities. By shifting to fixed‑rate debt, the fund reduces its exposure to rising interest rates and supports a conservative leverage profile that Main Street Capital has emphasized in recent communications.
MSC Income Fund is a wholly‑owned subsidiary of Main Street Capital Corporation, which provides debt capital to private‑equity‑backed companies. The fund’s portfolio includes companies with annual revenues between $25 million and $500 million for its private‑loan strategy and $10 million to $150 million for its lower‑middle‑market strategy. The new notes add to the fund’s existing debt structure, which previously included Series A notes with a 4.04% coupon maturing in October 2026.
KBRA assigned a BBB‑ rating with a stable outlook to the new notes, reflecting the diversified investment portfolio. The issuance follows a series of recent financing and investment activities by Main Street Capital, including a $61.5 million portfolio investment announced on March 10 2026 and a $28 million investment on March 4 2026.
By raising additional capital, MSC Income Fund can increase its deployment capacity and potentially enhance fee income from its private‑loan strategy. The fixed‑rate notes also provide a hedge against rising interest rates, aligning with Main Street Capital’s conservative leverage profile and supporting the firm’s broader strategy of providing debt and equity capital to lower‑middle‑market companies.
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