By late morning, shares had tumbled 4% to $31.27. Trading volume of 1.9 million was more than six times its three-month daily average.
The company said it will offer common stock at $31.50 a share with net proceeds after deducting underwriting discounts of around $121.4 million. The underwriters have also been granted a 30-day option to purchase up to an additional 600,000 shares.
In a statement, Main Street Capital said it intends to use net proceeds to "purchase additional shares, to initially repay outstanding debt borrowed under its credit facility, and then through re-borrowing under the credit facility, to make investments in accordance with its investment objective and strategies, to make investments in marketable securities and idle funds investments, to pay operating expenses and other cash obligations, and for general corporate purposes."
Raymond James, Goldman Sachs, Baird & Co. and RBC Capital Markets will act as underwriters for the offering.
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TheStreet Ratings team rates MAIN STREET CAPITAL CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAIN STREET CAPITAL CORP (MAIN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."