The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Main Street Announces Dividend Increase

Wednesday, August 01, 2012

Main Street Announces Dividend Increase06:00 EDT Wednesday, August 01, 2012Dividends of $0.15 per Share for October, November and December 2012 Represent an 11.1% Increase Compared to Fourth Quarter 2011HOUSTON, Aug. 1, 2012 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced today that its Board of Directors declared monthly dividends of $0.15 per share for each of October, November and December 2012.  These monthly dividends, which will be payable pursuant to the table below, equal a total of $0.45 per share for the fourth quarter of 2012. The fourth quarter 2012 dividends represent an 11.1% increase from the dividends declared for the fourth quarter of 2011 and a 3.4% increase compared to the third quarter of 2012.  Including the dividends declared for the fourth quarter of 2012, Main Street will have paid $8.03 per share in cumulative dividends since its October 2007 initial public offering.Summary of Fourth Quarter 2012 Monthly Dividends Declared      Ex-Dividend Date Record DatePayment DateAmount Per Share7/31/2012      9/18/20129/20/201210/15/2012$0.157/31/2012       10/17/201210/19/201211/15/2012$0.157/31/2012        11/19/201211/21/201212/14/2012$0.15Total for Fourth Quarter 2012: $0.45When declaring dividends, the Main Street Board of Directors reviews estimates of taxable income available for distribution, which differs from consolidated income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, (iii) activity at our taxable subsidiaries, and (iv) the amount of undistributed taxable income (or "spillover income") carried over from a given year for distribution in the following year. The final determination of 2012 taxable income, as well as the tax attributes for 2012 dividends, will be made after the close of the 2012 tax year.  The final tax attributes for 2012 dividends are expected to include ordinary taxable income, capital gains and qualified dividends.Main Street maintains a dividend reinvestment plan ("DRIP") that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if Main Street declares a dividend, our stockholders who have not "opted out" of the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of our common stock.  Main Street has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator.  Newly-issued shares will be valued based upon the final closing price of Main Street's common stock on a specified valuation date for each dividend as determined by Main Street's Board of Directors.  Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs.ABOUT MAIN STREET CAPITAL CORPORATIONMain Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements, including but not limited to the potential tax attributes for 2012 dividends. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance and results could vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and Main Street undertakes no obligation to update any such statement now or in the future.Contacts:Main Street Capital CorporationDwayne L. Hyzak, CFO and Senior Managing Directordhyzak@mainstcapital.com 713-350-6000Dennard Rupp Gray & Lascar, LLCKen Dennard  |  ksdennard@drg-l.com Ben Burnham |  bburnham@drg-l.com 713-529-6600SOURCE Main Street Capital Corporation