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Main Street Capital CORP - Quarter Report: 2019 June (Form 10-Q)


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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)    

ý

 

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

For the quarterly period ended June 30, 2019

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
(State or other jurisdiction of
incorporation or organization)
  41-2230745
(I.R.S. Employer
Identification No.)

1300 Post Oak Boulevard, 8th Floor
Houston, TX
(Address of principal executive offices)

 

77056
(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)

        Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class   Trading Symbol   Name of Each Exchange on Which
Registered
Common Stock, par value $0.01 per share   MAIN   New York Stock Exchange

        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 ý    No o

        Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit 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, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o   Smaller reporting company o

Emerging growth company o

        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 ý

        The number of shares outstanding of the issuer's common stock as of August 8, 2019 was 63,135,427.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

   

 

Consolidated Balance Sheets—June 30, 2019 (unaudited) and December 31, 2018

  1

 

Consolidated Statements of Operations (unaudited)—Three and six months ended June 30, 2019 and 2018

  2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Six months ended June 30, 2019 and 2018

  3

 

Consolidated Statements of Cash Flows (unaudited)—Six months ended June 30, 2019 and 2018

  4

 

Consolidated Schedule of Investments (unaudited)—June 30, 2019

  5

 

Consolidated Schedule of Investments—December 31, 2018

  31

 

Notes to Consolidated Financial Statements (unaudited)

  57

 

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Six months ended June 30, 2019 and 2018

  102

Item 2.

 

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

  112

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

  136

Item 4.

 

Controls and Procedures

  137


PART II
OTHER INFORMATION

Item 1.

 

Legal Proceedings

  138

Item 1A.

 

Risk Factors

  138

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

  138

Item 6.

 

Exhibits

  138

 

Signatures

  139

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(dollars in thousands, except shares and per share amounts)

 
  June 30,
2019
  December 31,
2018
 
 
  (Unaudited)
   
 

ASSETS

             

  

             

Investments at fair value:

             

Control investments (cost: $770,275 and $750,618 as of June 30, 2019 and December 31, 2018, respectively)

  $ 1,040,692   $ 1,004,993  

Affiliate investments (cost: $370,235 and $381,307 as of June 30, 2019 and December 31, 2018, respectively)

    349,668     359,890  

Non-Control/Non-Affiliate investments (cost: $1,166,618 and $1,137,108 as of June 30, 2019 and December 31, 2018, respectively)

    1,118,069     1,089,026  

Total investments (cost: $2,307,128 and $2,269,033 as of June 30, 2019 and December 31, 2018, respectively)

    2,508,429     2,453,909  

  

             

Cash and cash equivalents

    70,548     54,181  

Interest receivable and other assets

    46,810     39,674  

Receivable for securities sold

        1,201  

Deferred financing costs (net of accumulated amortization of $7,032 and $6,562 as of June 30, 2019 and December 31, 2018, respectively)

    3,991     4,461  

Total assets

  $ 2,629,778   $ 2,553,426  

LIABILITIES

             

Credit facility

 
$

122,000
 
$

301,000
 

SBIC debentures (par: $321,800 ($10,000 due within one year) and $345,800 as of June 30, 2019 and December 31, 2018, respectively)

    315,189     338,186  

5.20% Notes due 2024 (par: $250,000 as of June 30, 2019)

    246,053      

4.50% Notes due 2022 (par: $185,000 as of both June 30, 2019 and December 31, 2018)

    182,926     182,622  

4.50% Notes due 2019 (par: $175,000 as of both June 30, 2019 and December 31, 2018)

    174,699     174,338  

Accounts payable and other liabilities

    21,615     17,962  

Payable for securities purchased

    2,475     28,254  

Interest payable

    8,156     6,041  

Dividend payable

    12,900     11,948  

Deferred tax liability, net

    22,683     17,026  

Total liabilities

    1,108,696     1,077,377  

Commitments and contingencies (Note K)

   
 
   
 
 

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 62,918,132 and 61,264,861 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)

   
629
   
613
 

Additional paid-in capital

    1,465,679     1,409,945  

Total undistributed earnings

    54,774     65,491  

Total net assets

    1,521,082     1,476,049  

Total liabilities and net assets

  $ 2,629,778   $ 2,553,426  

NET ASSET VALUE PER SHARE

  $ 24.17   $ 24.09  

   

The accompanying notes are an integral part of these consolidated financial statements

1


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(dollars in thousands, except shares and per share amounts)

(Unaudited)

 
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
 
  2019   2018   2019   2018  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 23,617   $ 23,875   $ 47,308   $ 45,830  

Affiliate investments

    8,346     8,515     17,417     17,587  

Non-Control/Non-Affiliate investments

    29,330     27,479     57,932     52,395  

Total investment income

    61,293     59,869     122,657     115,812  

EXPENSES:

                         

Interest

    (12,329 )   (10,833 )   (24,245 )   (21,098 )

Compensation

    (5,516 )   (5,673 )   (11,585 )   (11,164 )

General and administrative

    (3,160 )   (3,097 )   (6,363 )   (6,071 )

Share-based compensation

    (2,378 )   (2,432 )   (4,707 )   (4,735 )

Expenses allocated to the External Investment Manager

    1,707     1,678     3,350     3,744  

Total expenses

    (21,676 )   (20,357 )   (43,550 )   (39,324 )

NET INVESTMENT INCOME

    39,617     39,512     79,107     76,488  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

    (756 )   (8,413 )   (943 )   4,681  

Affiliate investments

    789         (2,452 )    

Non-Control/Non-Affiliate investments

    (2,587 )   (5,531 )   (4,892 )   (11,165 )

Realized loss on extinguishment of debt

        (1,522 )   (5,689 )   (2,896 )

Total net realized loss

    (2,554 )   (15,466 )   (13,976 )   (9,380 )

NET UNREALIZED APPRECIATION (DEPRECIATION):

                         

Control investments

    10,137     26,046     15,083     3,072  

Affiliate investments

    (568 )   (376 )   1,808     13,862  

Non-Control/Non-Affiliate investments

    (4,712 )   7,041     (810 )   4,895  

SBIC debentures

    (233 )   (10 )   4,945     1,348  

Total net unrealized appreciation          

    4,624     32,701     21,026     23,177  

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    (963 )   852     (1,665 )   (34 )

Deferred taxes

    (2,470 )   (2,148 )   (4,837 )   (282 )

Income tax provision

    (3,433 )   (1,296 )   (6,502 )   (316 )

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 38,254   $ 55,451   $ 79,655   $ 89,969  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.63   $ 0.66   $ 1.27   $ 1.29  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED

  $ 0.61   $ 0.93   $ 1.28   $ 1.52  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    62,880,035     59,828,751     62,375,166     59,343,199  

   

The accompanying notes are an integral part of these consolidated financial statements

2


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MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

 
  Common Stock    
   
   
 
 
  Number
of Shares
  Par
Value
  Additional
Paid-In
Capital
  Total
Undistributed
Earnings
  Total Net
Asset Value
 

Balances at December 31, 2017

    58,660,680   $ 586   $ 1,310,780   $ 69,002   $ 1,380,368  

Public offering of common stock, net of offering costs

   
309,895
   
4
   
11,332
   
   
11,336
 

Share-based compensation

            2,303         2,303  

Purchase of vested stock for employee payroll tax withholding

    (5,392 )       (212 )       (212 )

Dividend reinvestment

    42,423         1,589         1,589  

Amortization of directors' deferred compensation

            206         206  

Issuance of restricted stock

    124                  

Dividends to stockholders

                (33,507 )   (33,507 )

Net increase resulting from operations

                34,517     34,517  

Balances at March 31, 2018

    59,007,730   $ 590   $ 1,325,998   $ 70,012   $ 1,396,600  

Public offering of common stock, net of offering costs

    1,122,290     10     42,416         42,426  

Share-based compensation

            2,432         2,432  

Purchase of vested stock for employee payroll tax withholding

    (104,301 )   (1 )   (3,864 )       (3,865 )

Dividend reinvestment

    126,003     2     4,790         4,792  

Amortization of directors' deferred compensation

            213         213  

Issuance of restricted stock, net of forfeited shares

    248,850     2     (2 )        

Dividends to stockholders

                (50,696 )   (50,696 )

Net increase resulting from operations

                55,452     55,452  

Balances at June 30, 2018

    60,400,572   $ 603   $ 1,371,983   $ 74,768   $ 1,447,354  

Balances at December 31, 2018

    61,264,861   $ 613   $ 1,409,945   $ 65,491   $ 1,476,049  

Public offering of common stock, net of offering costs

   
960,684
   
9
   
35,376
   
   
35,385
 

Share-based compensation

            2,329         2,329  

Dividend reinvestment

    96,189     1     3,595         3,596  

Amortization of directors' deferred compensation

            216         216  

Issuance of restricted stock

    52,043     1     (1 )        

Dividends to stockholders

            70     (36,549 )   (36,479 )

Net increase resulting from operations

                41,401     41,401  

Balances at March 31, 2019

    62,373,777   $ 624   $ 1,451,530   $ 70,343   $ 1,522,497  

Public offering of common stock, net of offering costs

    245,989     2     9,416         9,418  

Share-based compensation

            2,378         2,378  

Purchase of vested stock for employee payroll tax withholding

    (90,404 )   (1 )   (3,364 )       (3,365 )

Dividend reinvestment

    133,128     1     5,392         5,393  

Amortization of directors' deferred compensation

            216         216  

Issuance of restricted stock, net of forfeited shares

    262,642     3     (3 )        

Dividends to stockholders

            114     (53,823 )   (53,709 )

Net increase resulting from operations

                38,254     38,254  

Balances at June 30, 2019

    62,925,132   $ 629   $ 1,465,679   $ 54,774   $ 1,521,082  

   

The accompanying notes are an integral part of these consolidated financial statements

3


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

 
  Six Months Ended
June 30,
 
 
  2019   2018  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 79,655   $ 89,969  

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

             

Investments in portfolio companies

    (301,298 )   (528,015 )

Proceeds from sales and repayments of debt investments in portfolio companies

    220,925     281,802  

Proceeds from sales and return of capital of equity investments in portfolio companies

    18,169     42,955  

Net unrealized appreciation

    (21,026 )   (23,177 )

Net realized loss

    13,976     9,380  

Accretion of unearned income

    (5,997 )   (6,945 )

Payment-in-kind interest

    (2,502 )   (952 )

Cumulative dividends

    (1,350 )   (1,069 )

Share-based compensation expense

    4,707     4,735  

Amortization of deferred financing costs

    1,790     1,685  

Deferred tax provision

    4,837     282  

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (6,792 )   (3,560 )

Interest payable

    2,115     204  

Accounts payable and other liabilities

    4,085     (3,149 )

Deferred fees and other

    1,226     2,162  

Net cash provided by (used in) operating activities

    12,520     (133,693 )

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

Proceeds from public offering of common stock, net of offering costs

    44,803     53,762  

Proceeds from public offering of 5.20% Notes due 2024

    250,000      

Dividends paid

    (80,247 )   (77,492 )

Proceeds from issuance of SBIC debentures

        22,000  

Repayments of SBIC debentures

    (24,000 )   (4,000 )

Redemption of 6.125% Notes

        (90,655 )

Proceeds from credit facility

    201,000     427,000  

Repayments on credit facility

    (380,000 )   (202,000 )

Payment of deferred issuance costs and SBIC debenture fees

    (4,344 )   (1,889 )

Purchases of vested stock for employee payroll tax withholding

    (3,365 )   (4,077 )

Net cash provided by financing activities

    3,847     122,649  

Net increase (decrease) in cash and cash equivalents

    16,367     (11,044 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    54,181     51,528  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 70,548   $ 40,484  

Supplemental cash flow disclosures:

             

Interest paid

  $ 20,279   $ 19,147  

Taxes paid

  $ 1,672   $ 4,075  

Operating non-cash activities:

             

Right-of-use assets obtained in exchange for operating lease liabilities

  $ 5,240   $  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 8,989   $ 6,381  

   

The accompanying notes are an integral part of these consolidated financial statements

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Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Control Investments(5)

     

 

 

 

                   

                               

Access Media Holdings, LLC(10)

  July 22, 2015  

Private Cable Operator

                       

         

10% PIK Secured Debt (Maturity—July 22, 2020)(14)(19)

  $ 23,828   $ 23,828   $ 7,603  

         

Preferred Member Units (9,481,500 units)(27)

          9,375     (284 )

         

Member Units (45 units)

          1      

                      33,204     7,319  

                               

ASC Interests, LLC

  August 1, 2013  

Recreational and Educational Shooting Facility

                       

         

11% Secured Debt (Maturity—July 31, 2020)

    1,650     1,630     1,630  

         

Member Units (1,500 units)

          1,500     1,290  

                      3,130     2,920  

                               

ATS Workholding, LLC(10)

  March 10, 2014  

Manufacturer of Machine Cutting Tools and Accessories

                       

         

5% Secured Debt (Maturity—November 16, 2021)

    4,877     4,563     4,419  

         

Preferred Member Units (3,725,862 units)

          3,726     2,018  

                      8,289     6,437  

                               

Bond-Coat, Inc.

  December 28, 2012  

Casing and Tubing Coating Services

                       

         

15% Secured Debt (Maturity—December 28, 2020)

    11,596     11,419     11,419  

         

Common Stock (57,508 shares)

          6,350     7,350  

                      17,769     18,769  

                               

Brewer Crane Holdings, LLC

  January 9, 2018  

Provider of Crane Rental and Operating Services

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.44%, Secured Debt (Maturity—January 9, 2023)(9)

    9,300     9,228     9,228  

         

Preferred Member Units (2,950 units)(8)

          4,280     4,280  

                      13,508     13,508  

                               

Bridge Capital Solutions Corporation

  April 18, 2012  

Financial Services and Cash Flow Solutions Provider

                       

         

13% Secured Debt (Maturity—July 25, 2021)

    7,500     6,418     6,418  

         

Warrants (82 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)

          2,132     3,550  

         

13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)

    1,000     995     995  

         

Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)

          1,000     1,000  

                      10,545     11,963  

                               

Café Brazil, LLC

  April 20, 2004  

Casual Restaurant Group

                       

         

Member Units (1,233 units)(8)

          1,742     4,050  

                               

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MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

California Splendor Holdings LLC

  March 30, 2018  

Processor of Frozen Fruits

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity—March 30, 2023)(9)

    14,079     13,935     13,935  

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.63%, Secured Debt (Maturity—March 30, 2023)(9)

    28,000     27,777     27,777  

         

Preferred Member Units (6,157 units)(8)

          10,775     7,382  

                      52,487     49,094  

                               

CBT Nuggets, LLC

  June 1, 2006  

Produces and Sells IT Training Certification Videos

                       

         

Member Units (416 units)(8)

          1,300     59,590  

                               

Centre Technologies Holdings, LLC

  January 4, 2019  

Provider of IT Hardware Services and Software Solutions

                       

         

LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity—January 4, 2024)(9)

    12,240     12,127     12,127  

         

Preferred Member Units (12,696 units)

          5,840     5,840  

                      17,967     17,967  

                               

Chamberlin Holding LLC

  February 26, 2018  

Roofing and Waterproofing Specialty Contractor

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.63%, Secured Debt (Maturity—February 26, 2023)(9)

    18,875     18,728     18,728  

         

Member Units (4,347 units)(8)

          11,440     22,990  

         

Member Units (Chamberlin Langfield Real Estate, LLC) (732,160 units)(8)

          732     732  

                      30,900     42,450  

                               

Charps, LLC

  February 3, 2017  

Pipeline Maintenance and Construction

                       

         

15% Secured Debt (Maturity—June 5, 2022)

    2,000     2,000     2,000  

         

Preferred Member Units (1,600 units)(8)

          400     4,630  

                      2,400     6,630  

                               

Clad-Rex Steel, LLC

  December 20, 2016  

Specialty Manufacturer of Vinyl-Clad Metal

                       

         

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.44%, Secured Debt (Maturity—December 20, 2021)(9)

    11,680     11,614     11,680  

         

Member Units (717 units)(8)

          7,280     10,270  

         

10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)

    1,150     1,138     1,150  

         

Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)

          210     350  

                      20,242     23,450  

                               

CMS Minerals Investments

  January 30, 2015  

Oil & Gas Exploration & Production

                       

         

Member Units (CMS Minerals II, LLC) (100 units)(8)

          2,493     2,007  

                               

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

CompareNetworks Topco, LLC

  January 29, 2019  

Internet Publishing and Web Search Portals

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—January 29, 2021)(9)

    250     242     242  

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—January 29, 2024)(9)

    8,750     8,669     8,669  

         

Preferred Member Units (1,975 units)

          1,975     1,975  

                      10,886     10,886  

                               

Copper Trail Fund Investments(12)(13)

  July 17, 2017  

Investment Partnership

                       

         

LP Interests (CTMH, LP) (Fully diluted 38.8%)

          872     872  

                               

Datacom, LLC

  May 30, 2014  

Technology and Telecommunications Provider

                       

         

8% Secured Debt (Maturity—May 30, 2019)(14)(17)

    1,800     1,800     1,554  

         

10.50% PIK Secured Debt (Maturity—May 30, 2019)(14)(17)(19)

    12,511     12,479     9,786  

         

Class A Preferred Member Units

          1,294      

         

Class B Preferred Member Units (6,453 units)

          6,030      

                      21,603     11,340  

                               

Digital Products Holdings LLC

  April 1, 2018  

Designer and Distributor of Consumer Electronics

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity—April 1, 2023)(9)

    25,080     24,877     24,877  

         

Preferred Member Units (3,451 shares)(8)

          8,466     7,965  

                      33,343     32,842  

                               

Direct Marketing Solutions, Inc.

  February 13, 2018  

Provider of Omni-Channel Direct Marketing Services

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—February 13, 2023)(9)

    17,547     17,397     17,397  

         

Preferred Stock (8,400 shares)

          8,400     16,150  

                      25,797     33,547  

                               

Gamber-Johnson Holdings, LLC

  June 24, 2016  

Manufacturer of Ruggedized Computer Mounting Systems

                       

         

LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 9.44%, Secured Debt (Maturity—June 24, 2021)(9)

    19,822     19,723     19,822  

         

Member Units (8,619 units)(8)

          14,844     45,460  

                      34,567     65,282  

                               

Garreco, LLC

  July 15, 2013  

Manufacturer and Supplier of Dental Products

                       

         

LIBOR Plus 8.00% (Floor 1.00%, Ceiling 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—March 31, 2020)(9)

    4,700     4,687     4,687  

         

Member Units (1,200 units)(8)

          1,200     2,500  

                      5,887     7,187  

                               

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

GRT Rubber Technologies LLC

  December 19, 2014  

Manufacturer of Engineered Rubber Products

                       

         

LIBOR Plus 7.00%, Current Coupon 9.44%, Secured Debt (Maturity—December 31, 2023)

    13,257     13,245     13,257  

         

Member Units (5,879 units)(8)

          13,065     46,130  

                      26,310     59,387  

                               

Guerdon Modular Holdings, Inc.

  August 13, 2014  

Multi-Family and Commercial Modular Construction Company

                       

         

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity—October 1, 2019)(9)(14)

    464     464     464  

         

16% Secured Debt (Maturity—October 1, 2019)(14)

    12,588     12,588     10,490  

         

Preferred Stock (404,998 shares)

          1,140      

         

Common Stock (212,033 shares)

          2,983      

         

Warrants (6,208,877 equivalent shares; Expiration— April 25, 2028; Strike price—$0.01 per share)

               

                      17,175     10,954  

                               

Gulf Manufacturing, LLC

  August 31, 2007  

Manufacturer of Specialty Fabricated Industrial Piping Products

                       

         

Member Units (438 units)(8)

          2,980     11,300  

                               

Gulf Publishing Holdings, LLC

  April 29, 2016  

Energy Industry Focused Media and Publishing

                       

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.94%, Secured Debt (Maturity—September 30, 2020)(9)

    320     320     320  

         

12.5% Secured Debt (Maturity—April 29, 2021)

    12,535     12,478     12,478  

         

Member Units (3,681 units)

          3,681     4,330  

                      16,479     17,128  

                               

Harborside Holdings, LLC

  March 20, 2017  

Real Estate Holding Company

                       

         

Member units (100 units)

          6,406     9,530  

                               

Harris Preston Fund Investments(12)(13)

  October 1, 2017  

Investment Partnership

                       

         

LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)

          1,735     1,828  

                               

Harrison Hydra-Gen, Ltd.

  June 4, 2010  

Manufacturer of Hydraulic Generators

                       

         

Common Stock (107,456 shares)(8)

          718     8,600  

                               

IDX Broker, LLC

  November 15, 2013  

Provider of Marketing and CRM Tools for the Real Estate Industry

                       

         

11.5% Secured Debt (Maturity—November 15, 2020)

    14,000     13,935     14,000  

         

Preferred Member Units (5,607 units)(8)

          5,952     14,420  

                      19,887     28,420  

                               

Jensen Jewelers of Idaho, LLC

  November 14, 2006  

Retail Jewelry Store

                       

         

Prime Plus 6.75% (Floor 2.00%), Current Coupon 12.25%, Secured Debt (Maturity—November 14, 2019)(9)

    3,055     3,047     3,055  

         

Member Units (627 units)(8)

          811     6,810  

                      3,858     9,865  

                               

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

KBK Industries, LLC

  January 23, 2006  

Manufacturer of Specialty Oilfield and Industrial Products

                       

         

Member Units (325 units)(8)

          783     11,910  

                               

Kickhaefer Manufacturing Company, LLC

  October 31, 2018  

Precision Metal Parts Manufacturing

                       

         

11.5% Secured Debt (Maturity—October 31, 2023)

    27,200     26,942     26,942  

         

Member Units (581 units)

          12,240     12,240  

         

9.0% Secured Debt (Maturity—October 31, 2048)

    3,992     3,953     3,953  

         

Member Units (KMC RE Investor, LLC) (800 units)(8)

          992     992  

                      44,127     44,127  

                               

Lamb Ventures, LLC

  May 30, 2008  

Aftermarket Automotive Services Chain

                       

         

Libor Plus 5.75%, Current Coupon 8.18%, Secured Debt (Maturity—July 1, 2019)

    200     200     200  

         

11% Secured Debt (Maturity—July 1, 2022)

    11,839     11,811     11,839  

         

Preferred Stock (non-voting)

          400     400  

         

Member Units (846 units)(8)

          5,663     11,880  

         

9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)

    432     428     432  

         

Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)

          625     550  

                      19,127     25,301  

                               

Market Force Information, LLC

  July 28, 2017  

Provider of Customer Experience Management Services

                       

         

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity—July 28, 2022)(9)

    1,509     1,509     1,509  

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.52%, Secured Debt (Maturity—July 28, 2022)(9)

    22,800     22,644     22,644  

         

Member Units (657,113 units)

          14,700     11,030  

                      38,853     35,183  

                               

MH Corbin Holding LLC

  August 31, 2015  

Manufacturer and Distributor of Traffic Safety Products

                       

         

5% Current / 5% PIK Secured Debt (Maturity— March 31, 2022)(19)

    8,666     8,577     8,666  

         

Preferred Member Units (66,000 shares)

          4,400     4,770  

         

Preferred Member Units (4,000 shares)

          6,000     20  

                      18,977     13,456  

                               

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Mid-Columbia Lumber Products, LLC

  December 18, 2006  

Manufacturer of Finger-Jointed Lumber Products

                       

         

10% Secured Debt (Maturity—January 15, 2020)

    1,750     1,748     1,748  

         

12% Secured Debt (Maturity—January 15, 2020)

    3,900     3,889     3,889  

         

Member Units (7,874 units)

          3,001     700  

         

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

    723     723     723  

         

Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)

          790     1,640  

                      10,151     8,700  

                               

MSC Adviser I, LLC(16)

  November 22, 2013  

Third Party Investment Advisory Services

                       

         

Member Units (Fully diluted 100.0%)(8)

              69,578  

                               

Mystic Logistics Holdings, LLC

  August 18, 2014  

Logistics and Distribution Services Provider for Large Volume Mailers

                       

         

12% Secured Debt (Maturity—August 15, 2019)

    7,081     7,074     7,074  

         

Common Stock (5,873 shares)

          2,720     2,090  

                      9,794     9,164  

                               

NAPCO Precast, LLC

  January 31, 2008  

Precast Concrete Manufacturing

                       

         

Member Units (2,955 units)(8)

          2,975     15,000  

                               

NexRev LLC

  February 28, 2018  

Provider of Energy Efficiency Products & Services

                       

         

11% Secured Debt (Maturity—February 28, 2023)

    17,222     17,087     17,087  

         

Preferred Member Units (86,400,000 units)(8)

          6,880     6,880  

                      23,967     23,967  

                               

NRI Clinical Research, LLC

  September 8, 2011  

Clinical Research Service Provider

                       

         

LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.93%, Secured Debt (Maturity—June 8, 2020)(9)

    83     83     83  

         

14% Secured Debt (Maturity—June 8, 2022)

    6,685     6,561     6,685  

         

Warrants (251,723 equivalent units; Expiration— June 8, 2027; Strike price—$0.01 per unit)

          252     790  

         

Member Units (1,454,167 units)(8)

          765     3,088  

                      7,661     10,646  

                               

NRP Jones, LLC

  December 22, 2011  

Manufacturer of Hoses, Fittings and Assemblies

                       

         

12% Secured Debt (Maturity—March 20, 2023)

    6,376     6,376     6,376  

         

Member Units (65,962 units)(8)

          3,717     6,260  

                      10,093     12,636  

                               

NuStep, LLC

  January 31, 2017  

Designer, Manufacturer and Distributor of Fitness Equipment

                       

         

12% Secured Debt (Maturity—January 31, 2022)

    20,600     20,478     20,478  

         

Preferred Member Units (406 units)

          10,200     10,200  

                      30,678     30,678  

                               

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

OMi Holdings, Inc.

  April 1, 2008  

Manufacturer of Overhead Cranes

                       

         

Common Stock (1,500 shares)(8)

          1,080     16,800  

                               

Pegasus Research Group, LLC

  January 6, 2011  

Provider of Telemarketing and Data Services

                       

         

Member Units (460 units)

          1,290     6,800  

                               

PPL RVs, Inc.

  June 10, 2010  

Recreational Vehicle Dealer

                       

         

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 9.59%, Secured Debt (Maturity—November 15, 2021)(9)

    14,095     14,021     14,021  

         

Common Stock (1,962 shares)

          2,150     9,050  

                      16,171     23,071  

                               

Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)

  February 1, 2011  

Noise Abatement Service Provider

                       

         

13% Secured Debt (Maturity—April 30, 2020)

    6,397     6,353     6,397  

         

Preferred Member Units (19,631 units)(8)

          4,600     15,600  

         

Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)

          1,200     1,160  

                      12,153     23,157  

                               

Quality Lease Service, LLC

  June 8, 2015  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

         

Member Units (1,000 units)

          10,813     10,579  

                               

River Aggregates, LLC

  March 30, 2011  

Processor of Construction Aggregates

                       

         

Zero Coupon Secured Debt (Maturity—June 30, 2018)(17)

    750     750     721  

         

Member Units (1,150 units)

          1,150     4,610  

         

Member Units (RA Properties, LLC) (1,500 units)

          369     2,929  

                      2,269     8,260  

                               

Tedder Industries, LLC

  August 31, 2018  

Manufacturer of Firearm Holsters and Accessories

                       

         

12% Secured Debt (Maturity—August 31, 2020)

    800     800     800  

         

12% Secured Debt (Maturity—August 31, 2023)

    16,400     16,259     16,259  

         

Preferred Member Units (440 units)

          7,476     7,476  

                      24,535     24,535  

                               

The MPI Group, LLC

  October 2, 2007  

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

         

9% Secured Debt (Maturity—October 2, 2019)

    2,924     2,924     2,685  

         

Series A Preferred Units (2,500 units)

          2,500     10  

         

Warrants (1,424 equivalent units; Expiration— July 1, 2024; Strike price—$0.01 per unit)

          1,096      

         

Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)

          2,300     2,479  

                      8,820     5,174  

                               

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Trantech Radiator Topco, LLC

  May 31, 2019  

Transformer Cooling Products and Services

                       

         

12% Secured Debt (Maturity—May 31, 2024)

    10,400     10,282     10,282  

         

Common Stock (615 shares)(8)

          4,655     4,655  

                      14,937     14,937  

                               

Vision Interests, Inc.

  June 5, 2007  

Manufacturer / Installer of Commercial Signage

                       

         

13% Secured Debt (Maturity—September 30, 2019)

    2,028     2,028     2,028  

         

Series A Preferred Stock (3,000,000 shares)

          3,000     4,090  

         

Common Stock (1,126,242 shares)

          3,706     409  

                      8,734     6,527  

                               

Ziegler's NYPD, LLC

  October 1, 2008  

Casual Restaurant Group

                       

         

6.5% Secured Debt (Maturity—October 1, 2019)

    1,000     999     999  

         

12% Secured Debt (Maturity—October 1, 2019)

    625     625     625  

         

14% Secured Debt (Maturity—October 1, 2019)

    2,750     2,750     2,750  

         

Warrants (587 equivalent units; Expiration— October 1, 2019; Strike price—$0.01 per unit)

          600      

         

Preferred Member Units (10,072 units)

          2,834     1,010  

                      7,808     5,384  

Subtotal Control Investments (68.4% of net assets at fair value)

  $ 770,275   $ 1,040,692  

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Affiliate Investments(6)

     

 

 

 

                   

                               

AFG Capital Group, LLC

  November 7, 2014  

Provider of Rent-to-Own Financing Solutions and Services

                       

         

10% Secured Debt (Maturity—May 25, 2022)

  $ 1,011   $ 1,011   $ 1,011  

         

Preferred Member Units (186 units)

          1,200     4,550  

                      2,211     5,561  

                               

American Trailer Rental Group LLC

  June 7, 2017  

Provider of Short-term Trailer and Container Rental

                       

         

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity—June 7, 2022)(9)

    25,200     25,019     25,200  

         

Member Units (Milton Meisler Holdings LLC) (48,555 units)

          4,855     7,030  

                      29,874     32,230  

                               

Barfly Ventures, LLC(10)

  August 31, 2015  

Casual Restaurant Group

                       

         

12% Secured Debt (Maturity—August 31, 2020)

    10,185     10,055     9,880  

         

Options (3 equivalent units)

          607     940  

         

Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)

          473     410  

                      11,135     11,230  

                               

BBB Tank Services, LLC

  April 8, 2016  

Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.44%, (Maturity—April 8, 2021)(9)

    4,640     4,505     4,505  

         

Preferred Stock (non-voting)(8)

          122     122  

         

Member Units (800,000 units)

          800     120  

                      5,427     4,747  

                               

Boccella Precast Products LLC

  June 30, 2017  

Manufacturer of Precast Hollow Core Concrete

                       

         

LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 14.59%, Secured Debt (Maturity—June 30, 2022)(9)

    14,204     14,033     14,204  

         

Member Units (2,160,000 units)(8)

          2,256     5,360  

                      16,289     19,564  

                               

Buca C, LLC

  June 30, 2015  

Casual Restaurant Group

                       

         

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.68%, Secured Debt (Maturity—June 30, 2020)(9)

    19,004     18,959     18,772  

         

Preferred Member Units (6 units; 6% cumulative)(8)(19)

          4,561     4,561  

                      23,520     23,333  

                               

CAI Software LLC

  October 10, 2014  

Provider of Specialized Enterprise Resource Planning Software

                       

         

12% Secured Debt (Maturity—December 7, 2023)

    10,200     10,098     10,200  

         

Member Units (66,968 units)

          751     4,940  

                      10,849     15,140  

                               

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Chandler Signs Holdings, LLC(10)

  January 4, 2016  

Sign Manufacturer

                       

         

12% Current / 1% PIK Secured Debt (Maturity—July 4, 2021)(19)

    4,569     4,549     4,569  

         

Class A Units (1,500,000 units)(8)

          1,500     2,020  

                      6,049     6,589  

                               

Charlotte Russe, Inc(11)

  May 28, 2013  

Fast-Fashion Retailer to Young Women

                       

         

Common Stock (19,041 shares)

          3,141      

                               

Condit Exhibits, LLC

  July 1, 2008  

Tradeshow Exhibits / Custom Displays Provider

                       

         

Member Units (3,936 units)(8)

          100     1,950  

                               

Congruent Credit Opportunities Funds(12)(13)

  January 24, 2012  

Investment Partnership

                       

         

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)

          5,210     855  

         

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)

          16,592     17,278  

                      21,802     18,133  

                               

Copper Trail Fund Investments(12)(13)

  July 17, 2017  

Investment Partnership

                       

         

LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%)

          2,311     3,072  

                               

Dos Rios Partners(12)(13)

  April 25, 2013  

Investment Partnership

                       

         

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)

          5,846     6,573  

         

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)

          1,856     2,087  

                      7,702     8,660  

                               

East Teak Fine Hardwoods, Inc.

  April 13, 2006  

Distributor of Hardwood Products

                       

         

Common Stock (6,250 shares)

          480     560  

                               

EIG Fund Investments(12)(13)

  November 6, 2015  

Investment Partnership

                       

         

LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)

          725     677  

                               

Freeport Financial Funds(12)(13)

  June 13, 2013  

Investment Partnership

                       

         

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)

          5,974     5,657  

         

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)

          10,555     10,295  

                      16,529     15,952  

                               

Fuse, LLC(11)

  June 30, 2019  

Cable Networks Operator

                       

         

12% Secured Debt (Maturity—June 28, 2024)

    1,939     1,939     1,939  

         

Common Stock (10,429 shares)

          256     256  

                      2,195     2,195  

                               

Harris Preston Fund Investments(12)(13)

  August 9, 2017  

Investment Partnership

                       

         

LP Interests (HPEP 3, L.P.) (Fully diluted 8.2%)

          2,233     2,233  

                               

14


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Hawk Ridge Systems, LLC(13)

  December 2, 2016  

Value-Added Reseller of Engineering Design and Manufacturing Solutions

                       

         

10.0% Secured Debt (Maturity—December 2, 2021)

    13,400     13,321     13,400  

         

Preferred Member Units (226 units)(8)

          2,850     7,260  

         

Preferred Member Units (HRS Services, ULC) (226 units)

          150     380  

                      16,321     21,040  

                               

Houston Plating and Coatings, LLC

  January 8, 2003  

Provider of Plating and Industrial Coating Services

                       

         

8% Unsecured Convertible Debt (Maturity— May 1, 2022)

    3,000     3,000     3,960  

         

Member Units (318,462 units)(8)

          2,236     9,610  

                      5,236     13,570  

                               

I-45 SLF LLC(12)(13)

  October 20, 2015  

Investment Partnership

                       

         

Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)

          17,000     15,922  

                               

L.F. Manufacturing Holdings, LLC(10)

  December 23, 2013  

Manufacturer of Fiberglass Products

                       

         

Preferred Member Units (non-voting; 14% cumulative)(8)(19)

          76     76  

         

Member Units (2,179,001 units)

          2,019     1,940  

                      2,095     2,016  

                               

OnAsset Intelligence, Inc.

  April 18, 2011  

Provider of Transportation Monitoring / Tracking Products and Services

                       

         

12% PIK Secured Debt (Maturity—June 30, 2021)(19)

    6,095     6,095     6,095  

         

10% PIK Unsecured Debt (Maturity—June 30, 2021)(19)

    55     55     55  

         

Preferred Stock (912 shares)

          1,981      

         

Warrants (5,333 equivalent shares; Expiration— April 18, 2021; Strike price—$0.01 per share)

          1,919      

                      10,050     6,150  

                               

PCI Holding Company, Inc.

  December 18, 2012  

Manufacturer of Industrial Gas Generating Systems

                       

         

12% Current Secured Debt (Maturity— March 31, 2020)

    11,356     11,356     11,356  

         

Preferred Stock (1,740,000 shares) (non-voting)

          1,740     4,350  

         

Preferred Stock (1,500,000 shares)

          3,927     200  

                      17,023     15,906  

                               

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)

  January 8, 2013  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

         

12% Secured Debt (Maturity—January 8, 2018)(14)(15)

    30,785     30,281     250  

         

Preferred Member Units (250 units)

          2,500      

                      32,781     250  

                               

Salado Stone Holdings, LLC(10)

  June 27, 2016  

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                       

         

Class A Preferred Units (Salado Acquisition, LLC) (2,000,000 units)

          2,000     1,010  

                               

15


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

SI East, LLC

  August 31, 2018  

Rigid Industrial Packaging Manufacturing

                       

         

10.25% Current, Secured Debt (Maturity— August 31, 2023)

    34,688     34,363     34,687  

         

Preferred Member Units (157 units)(8)

          6,000     6,730  

                      40,363     41,417  

                               

Slick Innovations, LLC

  September 13, 2018  

Text Message Marketing Platform

                       

         

14% Current, Secured Debt (Maturity— September 13, 2023)

    6,400     6,202     6,202  

         

Member Units (70,000 units)

          700     890  

         

Warrants (18,084 equivalent units; Expiration - September 13, 2028; Strike price—$0.01 per unit)

          181     240  

                      7,083     7,332  

                               

UniTek Global Services, Inc.(11)

  April 15, 2011  

Provider of Outsourced Infrastructure Services

                       

         

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.83%, Secured Debt (Maturity—August 20, 2024)(9)

    2,978     2,953     2,953  

         

Preferred Stock (1,521,122 shares; 19% cumulative)(8)(19)

          1,797     1,797  

         

Preferred Stock (2,281,682 shares; 19% cumulative)(8)(19)

          3,336     3,336  

         

Preferred Stock (4,336,866 shares; 13.5% cumulative)(8)(19)

          7,924     7,924  

         

Common Stock (945,507 shares)

              600  

                      16,010     16,610  

                               

Universal Wellhead Services Holdings, LLC(10)

  October 30, 2014  

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

                       

         

Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)(8)(19)

          967     1,020  

         

Member Units (UWS Investments, LLC) (4,000,000 units)

          4,000     990  

                      4,967     2,010  

                               

Volusion, LLC

  January 26, 2015  

Provider of Online Software-as-a-Service eCommerce Solutions

                       

         

11.5% Secured Debt (Maturity—January 26, 2020)

    20,234     19,749     19,749  

         

8% Unsecured Convertible Debt (Maturity— November 16, 2023)

    409     409     291  

         

Preferred Member Units (4,876,670 units)

          14,000     14,000  

         

Warrants (1,831,355 equivalent units; Expiration - January 26, 2025; Strike price—$0.01 per unit)

          2,576     569  

                      36,734     34,609  

Subtotal Affiliate Investments (23.0% of net assets at fair value)

  $ 370,235   $ 349,668  

16


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Non-Control/Non-Affiliate Investments(7)

                   

                               

AAC Holdings, Inc.(11)

  June 30, 2017  

Substance Abuse Treatment Service Provider

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 9.33% / 4.00% PIK, Current Coupon Plus PIK 13.33%, Secured Debt (Maturity—June 30, 2023)(9)(19)

  $ 14,490   $ 14,123   $ 13,041  

         

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 13.59%, Secured Debt (Maturity—April 15, 2020)(9)

    1,855     1,691     1,883  

                      15,814     14,924  

                               

Adams Publishing Group, LLC(10)

  November 19, 2015  

Local Newspaper Operator

                       

         

Prime Plus 4.00% (Floor 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—July 3, 2023)(9)

    5,000     4,920     4,920  

         

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.08%, Secured Debt (Maturity—July 3, 2023)(9)

    7,070     6,942     6,942  

         

LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 9.85%, Secured Debt (Maturity—July 3, 2023)(9)

    223     223     223  

                      12,085     12,085  

                               

ADS Tactical, Inc.(10)

  March 7, 2017  

Value-Added Logistics and Supply Chain Provider to the Defense Industry

                       

         

LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.65%, Secured Debt (Maturity—July 26, 2023)(9)

    20,000     19,844     19,991  

                               

Aethon United BR LP(10)

  September 8, 2017  

Oil & Gas Exploration & Production

                       

         

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.16%, Secured Debt (Maturity—September 8, 2023)(9)

    4,063     4,016     4,063  

                               

Affordable Care Holding Corp.(10)

  May 9, 2019  

Dental Service Organization

                       

         

LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 7.23%, Secured Debt (Maturity—October 22, 2022)(9)

    14,471     14,158     14,073  

                               

Allen Media, LLC.(11)

  September 18, 2018  

Operator of Cable Television Networks

                       

         

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.90%, Secured Debt (Maturity—August 30, 2023)(9)

    16,709     16,284     16,375  

                               

American Nuts, LLC(10)

  April 10, 2018  

Roaster, Mixer and Packager of Bulk Nuts and Seeds

                       

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 12.09%, Secured Debt (Maturity—April 10, 2023)(9)

    12,299     12,117     11,958  

                               

American Scaffold Holdings, Inc.(10)

  June 14, 2016  

Marine Scaffolding Service Provider

                       

         

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity—March 31, 2022)(9)

    5,971     5,921     5,941  

                               

17


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

American Teleconferencing Services, Ltd.(11)

  May 19, 2016  

Provider of Audio Conferencing and Video Collaboration Solutions

                       

         

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity—December 8, 2021)(9)

    17,405     16,203     10,225  

                               

APTIM Corp.(11)

  August 17, 2018  

Engineering, Construction & Procurement

                       

         

7.75% Secured Debt (Maturity—June 15, 2025)

    12,452     10,732     9,526  

                               

Arcus Hunting LLC(10)

  January 6, 2015  

Manufacturer of Bowhunting and Archery Products and Accessories

                       

         

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity—January 13, 2020)(9)

    15,663     15,644     15,663  

                               

Arise Holdings, Inc.(10)

  March 12, 2018  

Tech-Enabled Business Process Outsourcing

                       

         

Preferred Stock (1,000,000 shares)

          1,000     1,896  

                               

ASC Ortho Management Company, LLC(10)

  August 31, 2018  

Provider of Orthopedic Services

                       

         

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.09%, Secured Debt (Maturity—August 31, 2023)(9)

    4,602     4,512     4,448  

         

13.25% PIK Secured Debt (Maturity— December 1, 2023)(19)

    1,734     1,697     1,697  

                      6,209     6,145  

                               

ATI Investment Sub, Inc.(11)

  July 11, 2016  

Manufacturer of Solar Tracking Systems

                       

         

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity—June 22, 2021)(9)

    3,635     3,601     3,368  

                               

ATX Networks Corp.(11)(13)(21)

  June 30, 2015  

Provider of Radio Frequency Management Equipment

                       

         

LIBOR Plus 6.00% (Floor 1.00%) Current Coupon 8.35% / 1.00% PIK, Current Coupon Plus PIK 9.35% Secured Debt (Maturity—June 11, 2021)(9)(19)

    13,975     13,715     13,242  

                               

Berry Aviation, Inc.(10)

  July 6, 2018  

Charter Airline Services

                       

         

10.50% Current / 1.5% PIK, Secured Debt (Maturity— January 6, 2024)(19)

    4,519     4,480     4,519  

         

Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units; 8% cumulative)(8)(19)

          1,671     1,671  

                      6,151     6,190  

                               

BigName Commerce, LLC(10)

  May 11, 2017  

Provider of Envelopes and Complimentary Stationery Products

                       

         

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity—May 11, 2022)(9)

    2,412     2,393     2,378  

                               

18


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Binswanger Enterprises, LLC(10)

  March 10, 2017  

Glass Repair and Installation Service Provider

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.35%, Secured Debt (Maturity—March 9, 2022)(9)

    13,925     13,726     13,910  

         

Member Units (1,050,000 units)

          1,050     1,230  

                      14,776     15,140  

                               

Bluestem Brands, Inc.(11)

  December 19, 2013  

Multi-Channel Retailer of General Merchandise

                       

         

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.99%, Secured Debt (Maturity—November 6, 2020)(9)

    10,998     10,917     8,386  

                               

Bojangles', Inc.(11)

  February 5, 2019  

Quick Service Restaurant Group

                       

         

LIBOR Plus 4.75%, Current Coupon 7.15%, Secured Debt (Maturity—January 28, 2026)

    10,000     9,809     10,042  

         

LIBOR Plus 8.50%, Current Coupon 10.90%, Secured Debt (Maturity—January 28, 2027)

    5,000     4,903     5,000  

                      14,712     15,042  

                               

Brainworks Software, LLC(10)

  August 12, 2014  

Advertising Sales and Newspaper Circulation Software

                       

         

4.00% Secured Debt (Maturity—July 22, 2019)(9)

    6,733     6,733     6,032  

                               

Brightwood Capital Fund Investments(12)(13)

  July 21, 2014  

Investment Partnership

                       

         

LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)

          11,700     10,171  

         

LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.6%)(8)

          3,500     3,563  

                      15,200     13,734  

                               

Cadence Aerospace LLC(10)

  November 14, 2017  

Aerostructure Manufacturing

                       

         

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity—November 14, 2023)(9)

    19,421     19,266     19,421  

                               

California Pizza Kitchen, Inc.(11)

  August 29, 2016  

Casual Restaurant Group

                       

         

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity—August 23, 2022)(9)

    12,674     12,646     12,421  

                               

Central Security Group, Inc.(11)

  December 4, 2017  

Security Alarm Monitoring Service Provider

                       

         

LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 8.03%, Secured Debt (Maturity—October 6, 2021)(9)

    13,812     13,759     13,605  

                               

Cenveo Corporation(11)

  September 4, 2015  

Provider of Digital Marketing Agency Services

                       

         

Libor Plus 9.00% (Floor 1.00%), Current Coupon 11.42%, Secured Debt (Maturity—June 7, 2023)(9)

    5,674     5,479     5,433  

         

Common Stock (177,130 shares)

          5,309     2,568  

                      10,788     8,001  

                               

19


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Chisholm Energy Holdings, LLC(10)

  May 15, 2019  

Oil & Gas Exploration & Production

                       

         

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 8.77%, Secured Debt (Maturity—May 15, 2026)(9)

    3,571     3,483     3,483  

                               

Clarius BIGS, LLC(10)

  September 23, 2014  

Prints & Advertising Film Financing

                       

         

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)

    2,908     2,908     38  

                               

Clickbooth.com, LLC(10)

  December 5, 2017  

Provider of Digital Advertising Performance Marketing Solutions

                       

         

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity—December 5, 2022)(9)

    2,700     2,657     2,700  

                               

Construction Supply Investments, LLC(10)

  December 29, 2016  

Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors

                       

         

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity—June 30, 2023)(9)

    16,455     16,350     16,414  

         

Member Units (43,463 units)

          4,409     6,510  

                      20,759     22,924  

                               

CTVSH, PLLC(10)

  August 3, 2017  

Emergency Care and Specialty Service Animal Hospital

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.52%, Secured Debt (Maturity—August 3, 2022)(9)

    10,399     10,328     10,399  

                               

Darr Equipment LP(10)

  April 15, 2014  

Heavy Equipment Dealer

                       

         

11.5% Current / 1% PIK Secured Debt (Maturity - June 22, 2023)(19)

    5,869     5,869     5,869  

         

Warrants (915,734 equivalent units; Expiration— December 23, 2023; Strike price—$1.50 per unit)

          474     250  

                      6,343     6,119  

                               

Digital River, Inc.(11)

  February 24, 2015  

Provider of Outsourced e-Commerce Solutions and Services

                       

         

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity—February 12, 2021)(9)

    14,279     14,130     14,350  

                               

DTE Enterprises, LLC(10)

  April 13, 2018  

Industrial Powertrain Repair and Services

                       

         

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.11%, Secured Debt (Maturity—April 13, 2023)(9)

    11,742     11,544     11,731  

         

Class AA Preferred Member Units (non-voting; 10% cumulative)(8)(19)

          817     817  

         

Class A Preferred Member Units (776,316 units)

          776     1,490  

                      13,137     14,038  

                               

20


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Dynamic Communities, LLC(10)

  July 17, 2018  

Developer of Business Events and Online Community Groups

                       

         

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity—July 17, 2023)(9)

    5,530     5,435     5,385  

                               

Elite SEM, Inc.(10)

  #N/A  

Provider of Digital Marketing Agency Services

                       

         

LIBOR Plus 8.44% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity—February 1, 2022)(9)(23)

    6,875     6,768     6,866