Main Street (MAIN) Preliminary Estimates of Fourth Quarter 2018 Results
Main Street’s preliminary estimate of fourth quarter 2018 net investment income (“NII”) is $0.68 to $0.69 per share. Main Street’s preliminary estimate of fourth quarter 2018 distributable net investment income (“DNII”), which is NII before non-cash, share-based compensation expense, is $0.71 to $0.72 per share.(1) The preliminary estimates of NII per share and DNII per share each include a non-recurring benefit of approximately $0.03 per share related to lower operating expenses. The preliminary estimate of DNII of $0.71 to $0.72 per share, or $0.68 to $0.69 per share as adjusted for the non-recurring benefit of $0.03 per share, significantly exceeds both the regular monthly dividends paid for the fourth quarter of 2018 of $0.585 per share and the previously provided DNII guidance range for the fourth quarter of 2018 of between $0.63 and $0.65 per share.
Main Street’s preliminary estimate of net asset value (“NAV”) per share as of December 31, 2018 is $24.04 to $24.14. After adjustment for the semi-annual supplemental dividend paid in December 2018
of $0.275 per share, this represents a decrease of approximately $0.28 to $0.38 per share, or 1.1% to 1.5%, from the reported NAV per share of $24.69 as of September 30, 2018. Main Street estimates that the decrease in NAV per share is primarily due to net unrealized depreciation relating to its Middle Market and Private Loan portfolio investments, which Main Street believes is in large part due to the widening of middle market credit spreads during the fourth quarter. This net unrealized depreciation is partially offset by net unrealized appreciation relating to its Lower Middle Market portfolio investments.
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