Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2013

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from:               to              

 

Commission File Number: 001-33723

 

Main Street Capital Corporation

(Exact name of registrant as specified in its charter)

 

Maryland

 

41-2230745

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

1300 Post Oak Boulevard, Suite 800

 

 

Houston, TX

 

77056

(Address of principal executive offices)

 

(Zip Code)

 

(713) 350-6000

(Registrant’s telephone number including area code)

 

n/a

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  o  No  o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer o

 

Accelerated filer x

 

 

 

Non-accelerated filer o

 

Smaller reporting company o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o  No  x

 

The number of shares outstanding of the issuer’s common stock as of May 9, 2013 was 34,773,469.

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

PART I
FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

 

 

Consolidated Balance Sheets — March 31, 2013 (unaudited) and December 31, 2012

 

1

 

 

 

 

 

Consolidated Statements of Operations (unaudited) — Three months ended March 31, 2013 and 2012

 

2

 

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) — Three months ended March 31, 2013 and 2012

 

3

 

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) — Three months ended March 31, 2013 and 2012

 

4

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) — March 31, 2013

 

5

 

 

 

 

 

Consolidated Schedule of Investments — December 31, 2012

 

19

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

31

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

55

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

70

 

 

 

 

Item 4.

Controls and Procedures

 

70

 

 

 

 

PART II
OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

71

 

 

 

 

Item 1A.

Risk Factors

 

71

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

71

 

 

 

 

Item 6.

Exhibits

 

71

 

 

 

 

 

Signatures

 

72

 



Table of Contents

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

 

 

 

March 31, 2013

 

December 31, 2012

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Portfolio investments at fair value:

 

 

 

 

 

Control investments (cost: $210,213 and $217,483 as of March 31, 2013 and December 31, 2012, respectively)

 

$

272,698

 

$

278,475

 

Affiliate investments (cost: $183,251 and $142,607 as of March 31, 2013 and December 31, 2012, respectively)

 

223,173

 

178,413

 

Non-Control/Non-Affiliate investments (cost: $474,917 and $456,975 as of March 31, 2013 and December 31, 2012, respectively)

 

489,620

 

467,543

 

Investment in affiliated Investment Manager (cost: $2,668 as of March 31, 2013 and December 31, 2012)

 

 

 

 

 

 

 

 

 

Total portfolio investments (cost: $871,049 and $819,733 as of March 31, 2013 and December 31, 2012, respectively)

 

985,491

 

924,431

 

Marketable securities and idle funds investments (cost: $0 and $28,469 as of March 31, 2013 and December 31, 2012, respectively)

 

 

28,535

 

 

 

 

 

 

 

Total investments (cost: $871,049 and $848,202 as of March 31, 2013 and December 31, 2012, respectively)

 

985,491

 

952,966

 

 

 

 

 

 

 

Cash and cash equivalents

 

26,221

 

63,517

 

Interest receivable and other assets

 

11,409

 

14,580

 

Deferred financing costs (net of accumulated amortization of $3,430 and $3,203 as of March 31, 2013 and December 31, 2012, respectively)

 

5,135

 

5,162

 

 

 

 

 

 

 

Total assets

 

$

1,028,256

 

$

1,036,225

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

SBIC debentures (par: $225,000 as of March 31, 2013 and December 31, 2012, par of $100,000 is recorded at a fair value of $87,679 and $86,467 as of March 31, 2013 and December 31, 2012, respectively)

 

$

212,679

 

$

211,467

 

Credit facility

 

141,000

 

132,000

 

Payable for securities purchased

 

6,990

 

20,661

 

Interest payable

 

1,128

 

3,562

 

Dividend payable

 

5,390

 

5,188

 

Deferred tax liability, net

 

13,158

 

11,778

 

Payable to affiliated Investment Manager

 

106

 

4,066

 

Accounts payable and other liabilities

 

2,595

 

4,527

 

 

 

 

 

 

 

Total liabilities

 

383,046

 

393,249

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 34,773,469 and 34,589,484 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively)

 

348

 

346

 

Additional paid-in capital

 

550,637

 

544,136

 

Accumulated net investment income, net of cumulative dividends of $143,116 and $115,401 as of March 31, 2013 and December 31, 2012, respectively

 

25,437

 

35,869

 

Accumulated net realized gain/loss from investments (accumulated net realized gain from investments of of $9,436 before cumulative dividends of 29,176 as of March 31, 2013 and accumulated net realized gain from investments of $9,838 before cumulative dividends of $28,993 as of December 31, 2012)

 

(19,740

)

(19,155

)

 

 

 

 

 

 

Net unrealized appreciation, net of income taxes

 

88,528

 

81,780

 

 

 

 

 

 

 

Total Net Asset Value

 

645,210

 

642,976

 

 

 

 

 

 

 

Total liabilities and net assets

 

$

1,028,256

 

$

1,036,225

 

 

 

 

 

 

 

NET ASSET VALUE PER SHARE

 

$

18.55

 

$

18.59

 

 

The accompanying notes are an integral part of these financial statements

 

1



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

INVESTMENT INCOME:

 

 

 

 

 

Interest, fee and dividend income:

 

 

 

 

 

Control investments

 

$

6,534

 

$

5,767

 

Affiliate investments

 

5,661

 

5,673

 

Non-Control/Non-Affiliate investments

 

13,138

 

8,147

 

Total interest, fee and dividend income

 

25,333

 

19,587

 

Interest from marketable securities, idle funds and other

 

311

 

972

 

Total investment income

 

25,644

 

20,559

 

EXPENSES:

 

 

 

 

 

Interest

 

(3,882

)

(3,864

)

General and administrative

 

(687

)

(608

)

Expenses reimbursed to affiliated Investment Manager

 

(3,189

)

(2,657

)

Share-based compensation

 

(603

)

(581

)

Total expenses

 

(8,361

)

(7,710

)

NET INVESTMENT INCOME

 

17,283

 

12,849

 

 

 

 

 

 

 

NET REALIZED GAIN (LOSS) FROM INVESTMENTS:

 

 

 

 

 

Control investments

 

 

(1,965

)

Affiliate investments

 

 

9,232

 

Non-Control/Non-Affiliate investments

 

(343

)

163

 

Marketable securities and idle funds investments

 

(59

)

708

 

Total net realized gain (loss) from investments

 

(402

)

8,138

 

NET REALIZED INCOME

 

16,881

 

20,987

 

 

 

 

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

 

 

 

 

 

Portfolio investments

 

10,078

 

4,507

 

Marketable securities and idle funds investments

 

(67

)

(29

)

SBIC debentures

 

(1,212

)

301

 

Investment in affiliated Investment Manager

 

 

(51

)

Total net change in unrealized appreciation

 

8,799

 

4,728

 

 

 

 

 

 

 

Income tax provision

 

(2,051

)

(1,876

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 

23,629

 

23,839

 

Noncontrolling interest

 

 

(54

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK

 

$

23,629

 

$

23,785

 

 

 

 

 

 

 

NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED

 

$

0.50

 

$

0.48

 

NET REALIZED INCOME PER SHARE - BASIC AND DILUTED

 

$

0.49

 

$

0.78

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK PER SHARE - BASIC AND DILUTED

 

$

0.68

 

$

0.89

 

DIVIDENDS PAID PER SHARE:

 

 

 

 

 

 

 

Regular monthly dividends

 

$

0.45

 

$

0.41

 

Special dividends

 

 

0.35

 

 

 

Total

 

$

0.80

 

$

0.41

 

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

 

34,699,505

 

26,871,084

 

 

The accompanying notes are an integral part of these financial statements

 

2


 


Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(in thousands, except shares)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Net Unrealized

 

 

 

 

 

Total Net

 

 

 

 

 

 

 

 

 

Accumulated

 

Net Realized

 

Appreciation from

 

 

 

 

 

Assets

 

 

 

Common Stock

 

Additional

 

Net Investment

 

Gain/Loss From

 

Investments,

 

 

 

 

 

Including

 

 

 

Number

 

Par

 

Paid-In

 

Income, Net

 

Investments,

 

Net of Income

 

Total Net

 

Noncontrolling

 

Noncontrolling

 

 

 

of Shares

 

Value

 

Capital

 

of Dividends

 

Net of Dividends

 

Taxes

 

Asset Value

 

Interest

 

Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2011

 

26,714,384

 

$

267

 

$

360,164

 

$

12,531

 

$

(20,445

)

$

53,194

 

$

405,711

 

$

5,477

 

$

411,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSC II noncontrolling interest acquisition

 

229,634

 

2

 

5,413

 

 

 

 

5,415

 

(5,417

)

(2

)

Adjustment to investment in Investment Manager related to MSC II noncontrolling interest acquisition

 

 

 

(1,616

)

 

 

 

(1,616

)

 

(1,616

)

Share-based compensation

 

 

 

581

 

 

 

 

581

 

 

581

 

Dividend reinvestment

 

117,466

 

1

 

2,700

 

 

 

 

2,701

 

 

2,701

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(114

)

(114

)

Dividends to stockholders

 

 

 

 

(7,934

)

(3,107

)

 

(11,041

)

 

(11,041

)

Net increase resulting from operations

 

 

 

 

12,849

 

8,138

 

2,852

 

23,839

 

 

23,839

 

Noncontrolling interest

 

 

 

 

 

 

(54

)

(54

)

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2012

 

27,061,484

 

$

270

 

$

367,242

 

$

17,446

 

$

(15,414

)

$

55,992

 

$

425,536

 

$

 

$

425,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2012

 

34,589,484

 

$

346

 

$

544,136

 

$

35,869

 

$

(19,155

)

$

81,780

 

$

642,976

 

$

 

$

642,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

603

 

 

 

 

603

 

 

603

 

Dividend reinvestment

 

164,760

 

2

 

5,320

 

 

 

 

5,322

 

 

5,322

 

Issuance of restricted stock

 

1,100

 

 

 

 

 

 

 

 

 

Issuances of common stock

 

18,125

 

 

578

 

 

 

 

578

 

 

578

 

Dividends to stockholders

 

 

 

 

(27,715

)

(183

)

 

(27,898

)

 

(27,898

)

Net increase resulting from operations

 

 

 

 

17,283

 

(402

)

6,748

 

23,629

 

 

23,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2013

 

34,773,469

 

$

348

 

$

550,637

 

$

25,437

 

$

(19,740

)

$

88,528

 

$

645,210

 

$

 

$

645,210

 

 

The accompanying notes are an integral part of these financial statements

 

3


 


Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

23,629

 

$

23,839

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

 

 

Investments in portfolio companies

 

(125,982

)

(88,439

)

Proceeds from sales and repayments of debt investments

 

81,363

 

70,939

 

Proceeds from sale of equity investments in portfolio companies

 

8

 

25,182

 

Investments in marketable securities and idle funds investments

 

(16,701

)

(5,592

)

Proceeds from marketable securities and idle funds investments

 

28,819

 

18,827

 

Net change in unrealized appreciation

 

(8,799

)

(4,728

)

Net realized (gain) loss from investments

 

402

 

(8,138

)

Accretion of unearned income

 

(2,530

)

(4,715

)

Payment-in-kind interest

 

(1,326

)

(692

)

Cumulative dividends

 

(180

)

(67

)

Share-based compensation expense

 

603

 

581

 

Amortization of deferred financing costs

 

227

 

228

 

Deferred taxes

 

1,380

 

1,049

 

Changes in other assets and liabilities:

 

 

 

 

 

Interest receivable and other assets

 

2,666

 

(246

)

Interest payable

 

(2,434

)

(2,658

)

Payable to affiliated Investment Manager

 

(3,960

)

(3,311

)

Accounts payable and other liabilities

 

(2,105

)

554

 

Deferred fees and other

 

620

 

220

 

Net cash provided by (used in) operating activities

 

(24,300

)

22,833

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Dividends paid to stockholders

 

(22,374

)

(8,157

)

Net change in DRIP deposit

 

 

750

 

Proceeds from credit facility

 

77,000

 

63,000

 

Repayments on credit facility

 

(68,000

)

(32,000

)

Other

 

378

 

(121

)

Net cash provided by (used in) financing activities

 

(12,996

)

23,472

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(37,296

)

46,305

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

63,517

 

42,650

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

26,221

 

$

88,955

 

 

The accompanying notes are an integral part of these financial statements

 

4



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2013

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Control Investments (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond-Coat, Inc.

 

Casing and Tubing Coating Services

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - December 28, 2017)

 

14,750

 

14,557

 

14,557

 

 

 

 

 

Common Stock (Fully diluted 43.4%)

 

 

 

6,350

 

6,350

 

 

 

 

 

 

 

 

 

20,907

 

20,907

 

 

 

 

 

 

 

 

 

 

 

 

 

Café Brazil, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - April 20, 2013)

 

300

 

300

 

300

 

 

 

 

 

Member Units (Fully diluted 41.0%) (8)

 

 

 

42

 

3,740

 

 

 

 

 

 

 

 

 

342

 

4,040

 

 

 

 

 

 

 

 

 

 

 

 

 

California Healthcare Medical Billing, Inc.

 

Outsourced Billing and Revenue Cycle Management

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - October 17, 2015)

 

8,103

 

7,928

 

8,093

 

 

 

 

 

Warrants (Fully diluted 21.3%)

 

 

 

1,193

 

3,380

 

 

 

 

 

Common Stock (Fully diluted 9.8%)

 

 

 

1,177

 

1,560

 

 

 

 

 

 

 

 

 

10,298

 

13,033

 

 

 

 

 

 

 

 

 

 

 

 

 

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 41.6%) (8)

 

 

 

1,300

 

8,370

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceres Management, LLC (Lambs Tire & Automotive)

 

Aftermarket Automotive Services Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - May 31, 2013)

 

4,000

 

3,997

 

3,997

 

 

 

 

 

Class B Member Units (12% cumulative)

 

 

 

3,000

 

3,000

 

 

 

 

 

Member Units (Fully diluted 100.0%)

 

 

 

5,273

 

 

 

 

 

 

9.5% Secured Debt (Lamb’s Real Estate Investment I, LLC) (Maturity - October 1, 2025)

 

1,053

 

1,053

 

1,053

 

 

 

 

 

Member Units (Lamb’s Real Estate Investment I, LLC) (Fully diluted 100%)

 

 

 

625

 

860

 

 

 

 

 

 

 

 

 

13,948

 

8,910

 

 

 

 

 

 

 

 

 

 

 

 

 

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - July 1, 2013)

 

4,661

 

4,656

 

4,656

 

 

 

 

 

Warrants (Fully diluted 47.9%)

 

 

 

320

 

600

 

 

 

 

 

 

 

 

 

4,976

 

5,256

 

 

 

 

 

 

 

 

 

 

 

 

 

Gulf Manufacturing, LLC

 

Manufacturer of Specialty Fabricated Industrial Piping Products

 

 

 

 

 

 

 

 

 

 

 

 

 

9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity - June 30, 2017)

 

919

 

919

 

919

 

 

 

 

 

Member Units (Fully diluted 34.2%) (8)

 

 

 

2,980

 

12,660

 

 

 

 

 

 

 

 

 

3,899

 

13,579

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

 

 

 

 

 

 

 

 

 

 

 

 

 

9% Secured Debt (Maturity - June 4, 2015)

 

4,896

 

4,557

 

4,896

 

 

 

 

 

Preferred Stock (8% cumulative) (8)

 

 

 

1,102

 

1,102

 

 

 

 

 

Common Stock (Fully diluted 34.5%) (8)

 

 

 

718

 

1,550

 

 

 

 

 

 

 

 

 

6,377

 

7,548

 

 

 

 

 

 

 

 

 

 

 

 

 

Hawthorne Customs and Dispatch Services, LLC

 

Facilitator of Import Logistics, Brokerage, and Warehousing

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 47.6%) (8)

 

 

 

589

 

860

 

 

 

 

 

Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.1%) (8)

 

 

 

1,215

 

1,215

 

 

 

 

 

 

 

 

 

1,804

 

2,075

 

 

5



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Hydratec, Inc.

 

Designer and Installer of Micro-Irrigation Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 1%, Current Coupon 9%, Secured Debt (Maturity - October 31, 2013) (9)

 

750

 

750

 

750

 

 

 

 

 

Common Stock (Fully diluted 94.2%) (8)

 

 

 

7,095

 

13,350

 

 

 

 

 

 

 

 

 

7,845

 

14,100

 

 

 

 

 

 

 

 

 

 

 

 

 

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

 

 

 

 

 

 

 

 

 

 

 

 

 

15% Secured Debt (Maturity - September 15, 2014)

 

4,000

 

3,858

 

4,000

 

 

 

 

 

Warrants (Fully diluted 30.1%)

 

 

 

1,129

 

1,940

 

 

 

 

 

 

 

 

 

4,987

 

5,940

 

 

 

 

 

 

 

 

 

 

 

 

 

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 5.25%, Secured Debt (Maturity - November 14, 2013) (9)

 

1,622

 

1,622

 

1,622

 

 

 

 

 

13% Current / 6% PIK Secured Debt (Maturity - November 14, 2013)

 

1,683

 

1,683

 

1,683

 

 

 

 

 

Member Units (Fully diluted 60.8%) (8)

 

 

 

811

 

2,770

 

 

 

 

 

 

 

 

 

4,116

 

6,075

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Secured Debt (Maturity - August 22, 2014)

 

1,838

 

1,838

 

1,838

 

 

 

 

 

Preferred Stock (non-voting)

 

 

 

485

 

170

 

 

 

 

 

Warrants (Fully diluted 7.1%)

 

 

 

54

 

 

 

 

 

 

Common Stock (Fully diluted 70.0%) (8)

 

 

 

100

 

 

 

 

 

 

 

 

 

 

2,477

 

2,008

 

 

 

 

 

 

 

 

 

 

 

 

 

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)

 

Fabricator of Marine and Industrial Shelters

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - December 28, 2017)

 

10,250

 

10,053

 

10,053

 

 

 

 

 

Preferred Stock (Fully diluted 26.7%)

 

 

 

3,750

 

3,750

 

 

 

 

 

 

 

 

 

13,803

 

13,803

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-Columbia Lumber Products, LLC

 

Manufacturer of Finger-Jointed Lumber Products

 

 

 

 

 

 

 

 

 

 

 

 

 

10% Secured Debt (Maturity - December 18, 2017)

 

1,250

 

1,250

 

1,250

 

 

 

 

 

12% Secured Debt (Maturity - December 18, 2017)

 

3,900

 

3,900

 

3,900

 

 

 

 

 

9.5% Secured Debt (Mid - Columbia Real Estate, LLC) (Maturity - May 13, 2025)

 

1,006

 

1,006

 

1,006

 

 

 

 

 

Warrants (Fully diluted 9.2%)

 

 

 

90

 

620

 

 

 

 

 

Member Units (Fully diluted 42.9%)

 

 

 

1,042

 

3,060

 

 

 

 

 

Member Units (Mid - Columbia Real Estate, LLC) (Fully diluted 50.0%)

 

 

 

250

 

810

 

 

 

 

 

 

 

 

 

7,538

 

10,646

 

 

 

 

 

 

 

 

 

 

 

 

 

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - February 1, 2016) (9)

 

2,923

 

2,883

 

2,883

 

 

 

 

 

18% Secured Debt (Maturity - February 1, 2016)

 

4,468

 

4,404

 

4,404

 

 

 

 

 

Member Units (Fully diluted 44.0%)

 

 

 

2,975

 

4,360

 

 

 

 

 

 

 

 

 

10,262

 

11,647

 

 

 

 

 

 

 

 

 

 

 

 

 

NRI Clinical Research, LLC

 

Clinical Research Center

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - September 8, 2016)

 

4,636

 

4,423

 

4,423

 

 

 

 

 

Warrants (Fully diluted 12.5%) (8)

 

 

 

252

 

480

 

 

 

 

 

Member Units (Fully diluted 24.8%) (8)

 

 

 

500

 

960

 

 

 

 

 

 

 

 

 

5,175

 

5,863

 

 

 

 

 

 

 

 

 

 

 

 

 

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - December 22, 2016)

 

12,100

 

11,243

 

12,100

 

 

 

 

 

Warrants (Fully diluted 12.2%)

 

 

 

817

 

1,350

 

 

 

 

 

Member Units (Fully diluted 43.2%) (8)

 

 

 

2,900

 

4,800

 

 

 

 

 

 

 

 

 

14,960

 

18,250

 

 

 

 

 

 

 

 

 

 

 

 

 

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 48.0%)

 

 

 

1,080

 

8,740

 

 

6



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Pegasus Research Group, LLC (Televerde)

 

Telemarketing and Data Services

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - January 6, 2016)

 

4,991

 

4,949

 

4,991

 

 

 

 

 

Member Units (Fully diluted 43.7%) (8)

 

 

 

1,250

 

4,800

 

 

 

 

 

 

 

 

 

6,199

 

9,791

 

 

 

 

 

 

 

 

 

 

 

 

 

PPL RVs, Inc.

 

Recreational Vehicle Dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

11.1% Secured Debt (Maturity - June 10, 2015)

 

8,460

 

8,409

 

8,460

 

 

 

 

 

Common Stock (Fully diluted 51.1%)

 

 

 

2,150

 

5,950

 

 

 

 

 

 

 

 

 

10,559

 

14,410

 

 

 

 

 

 

 

 

 

 

 

 

 

Principle Environmental, LLC

 

Noise Abatement Services

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - February 1, 2016)

 

4,750

 

3,994

 

4,750

 

 

 

 

 

12% Current / 2% PIK Secured Debt (Maturity - February 1, 2016)

 

3,611

 

3,561

 

3,611

 

 

 

 

 

Warrants (Fully diluted 14.2%)

 

 

 

1,200

 

3,860

 

 

 

 

 

Member Units (Fully diluted 22.6%)

 

 

 

1,863

 

6,150

 

 

 

 

 

 

 

 

 

10,618

 

18,371

 

 

 

 

 

 

 

 

 

 

 

 

 

River Aggregates, LLC

 

Processor of Construction Aggregates

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - March 30, 2016)

 

3,860

 

3,662

 

2,250

 

 

 

 

 

Warrants (Fully diluted 20.0%)

 

 

 

202

 

 

 

 

 

 

Member Units (Fully diluted 40.0%)

 

 

 

550

 

 

 

 

 

 

 

 

 

 

4,414

 

2,250

 

 

 

 

 

 

 

 

 

 

 

 

 

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

 

 

 

 

 

 

 

 

 

 

 

 

 

4.5% Current / 4.5% PIK Secured Debt (Maturity - October 2, 2013)

 

1,079

 

1,078

 

1,078

 

 

 

 

 

6% Current / 6% PIK Secured Debt (Maturity - October 2, 2013)

 

5,639

 

5,604

 

5,451

 

 

 

 

 

Warrants (Fully diluted 52.3%)

 

 

 

1,096

 

 

 

 

 

 

 

 

 

 

7,778

 

6,529

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal and Mechanical Equipment, LLC

 

Commercial and Industrial Engineering Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - September 25, 2014) (9)

 

1,033

 

1,030

 

1,033

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - September 25, 2014)

 

3,292

 

3,271

 

3,292

 

 

 

 

 

Member Units (Fully diluted 52.6%) (8)

 

 

 

1,000

 

10,080

 

 

 

 

 

 

 

 

 

5,301

 

14,405

 

 

 

 

 

 

 

 

 

 

 

 

 

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 42.8%) (8)

 

 

 

1,113

 

3,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Van Gilder Insurance Corporation

 

Insurance Brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Current / 3% PIK Secured Debt (Maturity - January 31, 2014)

 

922

 

922

 

922

 

 

 

 

 

8% Current / 3% PIK Secured Debt (Maturity - January 31, 2016)

 

1,275

 

1,264

 

1,264

 

 

 

 

 

13% Current / 3% PIK Secured Debt (Maturity - January 31, 2016)

 

6,196

 

5,417

 

5,417

 

 

 

 

 

Warrants (Fully diluted 10.0%)

 

 

 

1,209

 

1,180

 

 

 

 

 

Common Stock (Fully diluted 15.5%)

 

 

 

2,500

 

2,430

 

 

 

 

 

 

 

 

 

11,312

 

11,213

 

 

 

 

 

 

 

 

 

 

 

 

 

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Secured Debt (Maturity - December 23, 2016)

 

3,204

 

3,149

 

3,149

 

 

 

 

 

Series A Preferred Stock (Fully diluted 50.9%)

 

 

 

3,000

 

2,000

 

 

 

 

 

Common Stock (Fully diluted 19.1%)

 

 

 

3,706

 

60

 

 

 

 

 

 

 

 

 

9,855

 

5,209

 

 

 

 

 

 

 

 

 

 

 

 

 

Ziegler’s NYPD, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - October 1, 2013) (9)

 

1,000

 

999

 

999

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - October 1, 2013)

 

5,380

 

5,371

 

5,371

 

 

 

 

 

Warrants (Fully diluted 46.6%)

 

 

 

600

 

180

 

 

 

 

 

 

 

 

 

6,970

 

6,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Control Investments (27.7% of total investments at fair value)

 

 

 

210,213

 

272,698

 

 

7



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2013

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Affiliate Investments (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Sensor Technologies, Inc.

 

Manufacturer of Commercial / Industrial Sensors

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants (Fully diluted 19.6%)

 

 

 

50

 

5,020

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Secured Debt (Maturity - April 17, 2017)

 

5,000

 

4,765

 

4,765

 

 

 

 

 

Warrants (Fully diluted 7.5%)

 

 

 

200

 

390

 

 

 

 

 

 

 

 

 

4,965

 

5,155

 

 

 

 

 

 

 

 

 

 

 

 

 

Congruent Credit Opportunities Fund II, LP (12) (13)

 

Investment Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

LP Interests (Fully diluted 19.8%) (8)

 

 

 

21,546

 

21,927

 

 

 

 

 

 

 

 

 

 

 

 

 

Daseke, Inc.

 

Specialty Transportation Provider

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 12.6%)

 

 

 

1,427

 

7,310

 

 

 

 

 

 

 

 

 

 

 

 

 

East Teak Fine Hardwoods, Inc.

 

Hardwood Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 5.0%) (8)

 

 

 

480

 

380

 

 

 

 

 

 

 

 

 

 

 

 

 

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Liquidation of Distressed Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - November 21, 2016)

 

12,238

 

11,736

 

11,736

 

 

 

 

 

Warrants (Fully diluted 22.5%)

 

 

 

400

 

240

 

 

 

 

 

 

 

 

 

12,136

 

11,976

 

 

 

 

 

 

 

 

 

 

 

 

 

Houston Plating and Coatings, LLC

 

Plating and Industrial Coating Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 11.1%) (8)

 

 

 

635

 

8,560

 

 

 

 

 

 

 

 

 

 

 

 

 

Indianhead Pipeline Services, LLC

 

Pipeline Support Services

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - February 6, 2017)

 

8,500

 

7,997

 

8,500

 

 

 

 

 

Preferred Equity (8% cumulative) (8)

 

 

 

1,710

 

1,710

 

 

 

 

 

Warrants (Fully diluted 10.6%)

 

 

 

459

 

1,760

 

 

 

 

 

Member Units (Fully diluted 12.1%) (8)

 

 

 

1

 

2,010

 

 

 

 

 

 

 

 

 

10,167

 

13,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Integrated Printing Solutions, LLC

 

Specialty Card Printing

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Secured Debt (Maturity - September 23, 2016)

 

12,500

 

11,843

 

11,843

 

 

 

 

 

Preferred Equity (Fully diluted 11.0%)

 

 

 

2,000

 

2,000

 

 

 

 

 

Warrants (Fully diluted 8.0%)

 

 

 

600

 

860

 

 

 

 

 

 

 

 

 

14,443

 

14,703