HOUSTON, Jan. 19, 2017 /PRNewswire/ -- Main Street Capital
Corporation (NYSE: MAIN) ("Main Street") today announced the tax
treatment of its 2016 dividends, preliminary operating results for
the fourth quarter of 2016 and its fourth quarter and full year
2016 earnings release and conference call schedule.
Federal Tax Treatment of 2016 Dividends
Main Street has posted information regarding the U.S. federal
income tax characteristics of its dividends that are attributable
to 2016 (the "2016 Form 1099 Information") on its website
(http://ir.mainstcapital.com/tax-information). Main Street
paid dividends totaling $2.73 per
share that are attributable to 2016 for tax purposes, with
approximately 27.9% of such dividends taxed as long-term capital
gains, approximately 2.1% taxed as qualified dividends and
approximately 70.0% taxed as ordinary income. Long-term
capital gains and qualified dividends paid to non-corporate
taxpayers (including individuals) qualify for favorable tax
treatment under the Internal Revenue Code ("IRC") and, for 2016,
will generally be subject to a maximum 20% U.S. federal income tax
rate (plus a 3.8% Medicare surtax, if applicable).
Federal Tax Treatment of 2016 Dividends – Non-U.S.
Shareholders
Non-U.S. resident and foreign corporation shareholders
("Non-U.S. Shareholders") in a Regulated Investment Company ("RIC")
such as Main Street are exempt from U.S. withholding tax on both
"interest-related" dividends and short-term capital gains in
accordance with the IRC sections 871(k) and 881(e). In
addition, Non-U.S. Shareholders in a RIC are also exempt from U.S.
withholding tax on long-term capital gains. Main Street paid
dividends totaling $2.73 per share
that are attributable to 2016 for tax purposes, with approximately
76.2% of such dividends relating to "interest-related" dividends,
short-term capital gains and long-term capital gains. See the "Tax
Treatment of 2016 Dividends for Non-U.S. Shareholders" posted on
Main Street's website for more details
(http://ir.mainstcapital.com/tax-information).
To the extent Non-U.S. Shareholder taxes were withheld on
dividends distributed, this information may be considered in
connection with any claims for refund of taxes made with the U.S.
Internal Revenue Service. Non-U.S. Shareholders should
contact their tax advisor with any questions regarding this
information.
Preliminary Estimates of Fourth Quarter 2016 Results
Main Street's preliminary estimate of fourth quarter 2016
distributable net investment income ("DNII"), which is net
investment income before non-cash, share-based compensation
expense, is $0.60 to $0.61 per
share. (1) Main Street's preliminary estimate
of net investment income is $0.56 to
$0.57 per share. The preliminary estimate of DNII
significantly exceeds the regular monthly dividends paid per share
for the fourth quarter of 2016 of $0.555 per share and is within the previously
provided DNII guidance range for the fourth quarter of 2016 of
between $0.59 and $0.61 per
share.
Main Street's preliminary estimate of net asset value ("NAV")
per share as of December 31, 2016 is
$22.05 to $22.15. After
adjustment for the semi-annual supplemental dividend paid in
December 2016 of $0.275 per share, this represents an increase of
approximately $0.71 to $0.81 per
share, or 3.3% to 3.7%, from the reported NAV per share of
$21.62 as of September 30, 2016. Main Street estimates
that the increase in NAV per share is primarily due to net
unrealized appreciation relating to its Lower Middle Market, Middle
Market and Private Loan portfolio investments and the accretive
impact from equity issued under its at-the-market equity
program.
Fourth Quarter and Full Year 2016 Earnings Release and
Conference Call Scheduled
Main Street's fourth quarter and full year 2016 results will be
released on Thursday, February 23,
2017, after the market closes. In conjunction with the
release, Main Street has scheduled a conference call, which will be
broadcast live via phone and over the Internet, on Friday, February 24, 2017, at 10:00 a.m. Eastern time. Investors may
participate either by phone or audio webcast.
By
Phone:
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Dial 412-902-0030 at
least 10 minutes before the call. A replay will be available
through March 3, 2017 by dialing 201-612-7415 and using the access
code 13652927#.
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By
Webcast:
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Connect to the
webcast via the Investor Relations section of Main Street's website
at www.mainstcapital.com. Please log in at least 10 minutes
in advance to register and download any necessary software. A
replay of the conference call will be available on Main Street's
website shortly after the call and will be accessible for
approximately 90 days.
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ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily 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.
Main Street's common stock trades on the New York Stock Exchange
("NYSE") under the symbol "MAIN." In addition, Main Street has
outstanding 6.125% Notes due 2023, which trade on the NYSE under
the symbol "MSCA."
FORWARD-LOOKING STATEMENTS AND OTHER MATTERS
Main Street cautions that statements in this press release which
are forward‑looking and provide other than historical information,
including but not limited to the preliminary estimates of fourth
quarter 2016 results, involve risks and uncertainties that may
impact its future results of operations. The forward‑looking
statements in this press release are based on current conditions
and include statements regarding Main Street's goals, beliefs,
strategies and future operating results and cash flows.
Although its management believes that the expectations reflected in
those forward‑looking statements are reasonable, Main Street can
give no assurance that those expectations will prove to have been
correct. Those statements are made based on various
underlying assumptions and are subject to numerous uncertainties
and risks, including, without limitation: Main Street's continued
effectiveness in raising, investing and managing capital; adverse
changes in the economy generally or in the industries in which its
portfolio companies operate; changes in laws and regulations that
may adversely impact its operations or the operations of one or
more of its portfolio companies; the operating and financial
performance of its portfolio companies; retention of key investment
personnel; competitive factors; and such other factors described
under the captions "Cautionary Statement Concerning Forward Looking
Statements" and "Risk Factors" included in its filings with the
Securities and Exchange Commission (www.sec.gov). Main Street
undertakes no obligation to update the information contained herein
to reflect subsequently occurring events or circumstances, except
as required by applicable securities laws and regulations.
The preliminary estimates of fourth quarter 2016 results
furnished above are based on Main Street management's preliminary
determinations and current expectations, and such information is
inherently uncertain. The preliminary estimates are subject
to completion of Main Street's customary year-end closing and
review procedures and third party audit, including the
determination of the fair value of Main Street's portfolio
investments by the Main Street Board of Directors, and have not yet
been approved by the Main Street Board of Directors. As a
result, actual results could differ materially from the current
preliminary estimates based on adjustments made during Main
Street's year-end closing and review procedures and third party
audit and Main Street's reported information in its Annual Report
on Form 10-K for the year ended December
31, 2016 may differ from this information, and any such
differences may be material. In addition, the information
furnished above does not include all of the information regarding
Main Street's financial condition and results of operations for the
quarter and full year periods ended December 31,
2016 that may be important to readers. As a result,
readers are cautioned not to place undue reliance on the
information furnished in this press release and should view this
information in the context of Main Street's full fourth quarter and
full year 2016 results when such results are disclosed by Main
Street in its Annual Report on Form 10-K for the year
ended December 31, 2016. The information furnished in
this press release is based on current Main Street management
expectations that involve substantial risks and uncertainties that
could cause actual results to differ materially from the results
expressed in, or implied by, such information.
Neither this press release, the 2016 Form 1099 Information nor
the Tax Treatment of 2016 Dividends for Non-U.S. Shareholders, is
intended to constitute tax, legal, investment, or other
professional advice. This is general information and reference
should be made to your 2016 Form 1099-DIV for tax reporting
purposes. Shareholders should receive their 2016 Form 1099-DIVs by
mid-February (generally from their brokers) and should consult a
tax advisor for tax guidance pertinent to their specific facts and
circumstances. If you did not hold Main Street stock for all of
calendar year 2016, your 1099-DIV will only reflect the tax
characteristics for the portion of the year you owned Main Street
stock.
Main Street has an existing effective shelf registration
statement on Form N-2 on file with the Securities and Exchange
Commission relating to the offer and sale from time to time of its
securities. Investors are advised to carefully consider the
investment objective, risks and charges and expenses of Main Street
before investing. The prospectus included in the shelf
registration statement, together with any related prospectus
supplement, contain this and other information about Main Street
and should be read carefully before investing. A copy of the
prospectus and the related preliminary prospectus supplement may be
obtained by contacting Main Street.
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(1) Distributable net
investment income is net investment income as determined in
accordance with U.S. Generally Accepted Accounting Principles, or
U.S. GAAP, excluding the impact of share-based compensation expense
which is non-cash in nature. Main Street believes presenting
distributable net investment income and the related per share
amount is useful and appropriate supplemental disclosure for
analyzing its financial performance since share-based compensation
does not require settlement in cash. However, distributable
net investment income is a non-U.S. GAAP measure and should not be
considered as a replacement for net investment income and other
earnings measures presented in accordance with U.S. GAAP.
Instead, distributable net investment income should be reviewed
only in connection with such U.S. GAAP measures in analyzing Main
Street's financial performance. In order to reconcile
estimated distributable net investment income per share to
estimated net investment income share in accordance with U.S. GAAP,
$0.04 to $0.05 per share of estimated share-based compensation
expense is added back to calculate estimated distributable net
investment income per share.
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Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, President &
COO, dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard - Lascar Associates
Ken Dennard /
ken@dennardlascar.com
Mark Roberson /
mroberson@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation