High-grade supply thins; Main Street taps 5.2% notes due 2024 for $125 million

By Devika Patel

Knoxville, Tenn., July 23 – Primary activity in the investment-grade bond market was sluggish on Thursday, with only one new deal pricing.

Herndon, Va.-based Main Street Capital Corp., a market lender for electric cooperatives, sold a $125 million tap of its 5.2% notes due May 1, 2024.

Main Street taps 5.2% notes

Main Street Capital priced a $125 million add-on to its 5.2% notes (/BBB/) due May 1, 2024 on Thursday.

The company priced the notes at 102.674 to yield 4.418%, or 415 basis points over Treasuries.

Main Street Capital originally issued $250 million of the notes on April 23, 2019 at 99.125 to yield 5.401%, or a spread of 300 bps over Treasuries. The company tapped the notes on Dec. 2, 2019, selling $75 million at 105.991 to yield 3.951%, with a spread of 230 basis points over Treasuries. The total outstanding is now $450 million.

RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc. and Raymond James & Associates were the bookrunners.

Proceeds will be used to repay debt outstanding under the company’s credit facility.

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