10-Q 1 a12-8768_110q.htm 10-Q

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, 2012

 

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 2, 2012 was 27,098,311.

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

 

PART I
FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

 

 

Consolidated Balance Sheets — March 31, 2012 (unaudited) and December 31, 2011

 

1

 

 

 

 

 

Consolidated Statements of Operations (unaudited) — Three months ended March 31, 2012 and 2011

 

2

 

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) — Three months ended March 31, 2012 and 2011

 

3

 

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) — Three months ended March 31, 2012 and 2011

 

4

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) — March 31, 2012

 

5

 

 

 

 

 

Consolidated Schedule of Investments — December 31, 2011

 

17

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

30

 

 

 

 

Item 2.

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

 

52

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

68

 

 

 

 

Item 4.

Controls and Procedures

 

68

 

 

 

 

 

PART II
OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

68

 

 

 

 

Item 1A.

Risk Factors

 

68

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

69

 

 

 

 

Item 6.

Exhibits

 

70

 

 

 

 

 

Signatures

 

71

 



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, 2012

 

December 31, 2011

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Portfolio investments at fair value:

 

 

 

 

 

Control investments (cost: $180,625 and $206,787 as of March 31, 2012 and December 31, 2011, respectively)

 

$

220,048

 

$

238,924

 

Affiliate investments (cost: $102,868 and $110,157 as of March 31, 2012 and December 31, 2011, respectively)

 

130,715

 

146,405

 

Non-Control/Non-Affiliate investments (cost: $313,646 and $275,061 as of March 31, 2012 and December 31, 2011, respectively)

 

313,334

 

270,895

 

Investment in affiliated Investment Manager (cost: $2,668 and $4,284 as of March 31, 2012 and December 31, 2011, respectively)

 

202

 

1,869

 

 

 

 

 

 

 

Total portfolio investments (cost: $599,807 and $596,289 as of March 31, 2012 and December 31, 2011, respectively)

 

664,299

 

658,093

 

Marketable securities and idle funds investments (cost: $14,066 and $25,935 as of March 31, 2012 and December 31, 2011, respectively)

 

14,345

 

26,242

 

 

 

 

 

 

 

Total investments (cost: $613,873 and $622,224 as of March 31, 2012 and December 31, 2011, respectively)

 

678,644

 

684,335

 

 

 

 

 

 

 

Cash and cash equivalents

 

88,955

 

42,650

 

Interest receivable and other assets

 

7,899

 

6,539

 

Deferred financing costs (net of accumulated amortization of $2,395 and $2,167 as of March 31, 2012 and December 31, 2011, respectively)

 

3,945

 

4,168

 

 

 

 

 

 

 

Total assets

 

$

779,443

 

$

737,692

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

SBIC debentures (par: $220,000 as of March 31, 2012 and December 31, 2011; par of $95,000 is recorded at a fair value of $76,586 and $76,887 as of March 31, 2012 and December 31, 2011, respectively)

 

$

201,586

 

$

201,887

 

Credit facility

 

138,000

 

107,000

 

Interest payable

 

1,326

 

3,984

 

Dividend payable

 

3,789

 

2,856

 

Deferred tax liability, net

 

4,825

 

3,776

 

Payable to affiliated Investment Manager

 

1,520

 

4,831

 

Accounts payable and other liabilities

 

2,861

 

2,170

 

 

 

 

 

 

 

Total liabilities

 

353,907

 

326,504

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 27,061,484 and 26,714,384 issued and outstanding as of March 31, 2012 and December 31, 2011, respectively)

 

270

 

267

 

Additional paid-in capital

 

367,242

 

360,164

 

Accumulated net investment income, net of cumulative dividends of $87,348 and $79,414 as of March 31, 2012 and December 31, 2011, respectively

 

17,446

 

12,531

 

Accumulated net realized gain from investments, net of cumulative dividends of $16,911 and $13,804 as of March 31, 2012 and December 31, 2011, respectively

 

(15,414

)

(20,445

)

Net unrealized appreciation, net of income taxes

 

55,992

 

53,194

 

 

 

 

 

 

 

Total Net Asset Value

 

425,536

 

405,711

 

 

 

 

 

 

 

Noncontrolling interest

 

 

5,477

 

 

 

 

 

 

 

Total net assets including noncontrolling interests

 

425,536

 

411,188

 

 

 

 

 

 

 

Total liabilities and net assets

 

$

779,443

 

$

737,692

 

 

 

 

 

 

 

NET ASSET VALUE PER SHARE

 

$

15.72

 

$

15.19

 

 

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 shares and per share amounts)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

INVESTMENT INCOME:

 

 

 

 

 

Interest, fee and dividend income:

 

 

 

 

 

Control investments

 

$

5,767

 

$

5,650

 

Affiliate investments

 

5,673

 

2,146

 

Non-Control/Non-Affiliate investments

 

8,147

 

5,526

 

Total interest, fee and dividend income

 

19,587

 

13,322

 

Interest from marketable securities, idle funds and other

 

972

 

52

 

Total investment income

 

20,559

 

13,374

 

EXPENSES:

 

 

 

 

 

Interest

 

(3,864

)

(2,902

)

General and administrative

 

(608

)

(507

)

Expenses reimbursed to affiliated Investment Manager

 

(2,657

)

(2,130

)

Share-based compensation

 

(581

)

(443

)

Total expenses

 

(7,710

)

(5,982

)

NET INVESTMENT INCOME

 

12,849

 

7,392

 

 

 

 

 

 

 

NET REALIZED GAIN FROM INVESTMENTS:

 

 

 

 

 

Control investments

 

(1,965

)

 

Affiliate investments

 

9,232

 

 

Non-Control/Non-Affiliate investments

 

163

 

 

Marketable securities and idle funds investments

 

708

 

 

Total net realized gain from investments

 

8,138

 

 

NET REALIZED INCOME

 

20,987

 

7,392

 

 

 

 

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

 

 

 

 

 

Portfolio investments

 

4,507

 

4,018

 

Marketable securities and idle funds investments

 

(29

)

115

 

SBIC debentures

 

301

 

39

 

Investment in affiliated Investment Manager

 

(51

)

(41

)

Total net change in unrealized appreciation

 

4,728

 

4,131

 

 

 

 

 

 

 

Income tax provision

 

(1,876

)

(1,200

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 

23,839

 

10,323

 

Noncontrolling interest

 

(54

)

 

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

 

$

23,785

 

$

10,323

 

 

 

 

 

 

 

NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED

 

$

0.48

 

$

0.38

 

NET REALIZED INCOME PER SHARE - BASIC AND DILUTED

 

$

0.78

 

$

0.38

 

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

 

$

0.89

 

$

0.54

 

DIVIDENDS PAID PER SHARE

 

$

0.41

 

$

0.38

 

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

 

26,871,084

 

19,217,690

 

 

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 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, 2010

 

18,797,444

 

$

188

 

$

224,485

 

$

9,262

 

$

(20,542

)

$

32,142

 

$

245,535

 

$

4,448

 

$

249,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public offering of common stock, net of offering costs

 

4,025,000

 

40

 

70,310

 

 

 

 

70,350

 

 

70,350

 

Share-based compensation

 

 

 

443

 

 

 

 

443

 

 

443

 

Dividend reinvestment

 

125,122

 

1

 

2,408

 

 

 

 

2,409

 

 

2,409

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(110

)

(110

)

Dividends to stockholders

 

 

 

 

(10,048

)

 

 

(10,048

)

 

(10,048

)

Net increase resulting from operations

 

 

 

 

7,392

 

 

2,931

 

10,323

 

 

10,323

 

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2011

 

22,947,566

 

$

229

 

$

297,646

 

$

6,606

 

$

(20,542

)

$

35,073

 

$

319,012

 

$

4,338

 

$

323,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

23,839

 

$

10,323

 

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

 

 

 

 

 

Net change in unrealized appreciation

 

(4,728

)

(4,131

)

Net realized gain from investments

 

(8,138

)

 

Accretion of unearned income

 

(4,715

)

(1,557

)

Net payment-in-kind interest

 

(628

)

(561

)

Cumulative dividends

 

(67

)

(386

)

Share-based compensation expense

 

581

 

443

 

Amortization of deferred financing costs

 

228

 

146

 

Deferred taxes

 

1,049

 

1,150

 

Changes in other assets and liabilities:

 

 

 

 

 

Interest receivable and other assets

 

(246

)

(1,206

)

Interest payable

 

(2,658

)

(2,332

)

Payable to affiliated Investment Manager

 

(3,311

)

1,154

 

Accounts payable and other liabilities

 

490

 

559

 

Deferred fees and other

 

220

 

523

 

Net cash provided by operating activities

 

1,916

 

4,125

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Investments in portfolio companies

 

(88,439

)

(58,260

)

Principal payments received on loans and debt securities in portfolio companies

 

70,939

 

13,186

 

Proceeds from sale of equity investments and related notes in portfolio companies

 

25,182

 

 

Investments in marketable securities and idle funds investments

 

(5,592

)

(25,039

)

Proceeds from marketable securities and idle funds investments

 

18,827

 

3,021

 

Net cash provided by (used in) investing activities

 

20,917

 

(67,092

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

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

 

 

70,350

 

Distributions to noncontrolling interest

 

(114

)

(110

)

Dividends paid to stockholders

 

(8,157

)

(4,655

)

Net change in DRIP deposit

 

750

 

(800

)

Proceeds from issuance of SBIC debentures

 

 

30,000

 

Proceeds from credit facility

 

63,000

 

41,000

 

Repayments on credit facility

 

(32,000

)

(65,000

)

Payment of deferred loan costs and SBIC debenture fees

 

(7

)

(1,088

)

Net cash provided by financing activities

 

23,472

 

69,697

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

46,305

 

6,730

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

42,650

 

22,334

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

88,955

 

$

29,064

 

 

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, 2012

(in thousands)

(Unaudited)

 

Portfolio Company

 

Business Description

 

Type of Investment (1) (2)

 

Principal (6)

 

Cost (6)

 

Fair Value

 

Control Investments (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Café Brazil, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,200

 

1,199

 

1,200

 

 

 

 

 

Member Units (Fully diluted 41.0%) (7)

 

 

 

42

 

3,430

 

 

 

 

 

 

 

 

 

1,241

 

4,630

 

 

 

 

 

 

 

 

 

 

 

 

 

California Healthcare Medical Billing, Inc.

 

Healthcare Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

8,853

 

8,538

 

8,761

 

 

 

 

 

Warrants (Fully diluted 21.0%)

 

 

 

1,193

 

3,380

 

 

 

 

 

Common Stock (Fully diluted 9.6%)

 

 

 

1,177

 

1,560

 

 

 

 

 

 

 

 

 

10,908

 

13,701

 

 

 

 

 

 

 

 

 

 

 

 

 

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

850

 

850

 

850

 

 

 

 

 

Member Units (Fully diluted 40.8%) (7)

 

 

 

1,300

 

6,360

 

 

 

 

 

 

 

 

 

2,150

 

7,210

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceres Management, LLC (Lambs)

 

Aftermarket Automotive Services Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,000

 

3,982

 

3,982

 

 

 

 

 

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

 

1,102

 

1,102

 

1,102

 

 

 

 

 

Member Units (Fully diluted 79.0%)

 

 

 

5,273

 

540

 

 

 

 

 

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

 

 

 

625

 

800

 

 

 

 

 

 

 

 

 

10,982

 

6,424

 

 

 

 

 

 

 

 

 

 

 

 

 

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays

 

 

 

 

 

 

 

 

 

 

 

 

 

9% Current / 9% PIK Secured Debt (Maturity - July 1, 2013)

 

4,661

 

4,639

 

4,639

 

 

 

 

 

Warrants (Fully diluted 47.9%)

 

 

 

320

 

560

 

 

 

 

 

 

 

 

 

4,959

 

5,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Gulf Manufacturing, LLC

 

Industrial Metal Fabrication

 

 

 

 

 

 

 

 

 

 

 

 

 

9% PIK Secured Debt (Maturity - June 30, 2017)

 

1,044

 

1,044

 

1,044

 

 

 

 

 

Member Units (Fully diluted 34.2%) (7)

 

 

 

2,980

 

11,240

 

 

 

 

 

 

 

 

 

4,024

 

12,284

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - June 4, 2015)

 

5,024

 

4,554

 

4,746

 

 

 

 

 

Preferred stock (8% cumulative) (7)

 

 

 

1,103

 

1,103

 

 

 

 

 

Common Equity (Fully diluted 34.5%)

 

 

 

718

 

2,620

 

 

 

 

 

 

 

 

 

6,375

 

8,469

 

 

 

 

 

 

 

 

 

 

 

 

 

Hawthorne Customs and Dispatch Services, LLC

 

Transportation / Logistics

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 47.6%) (7)

 

 

 

589

 

1,410

 

 

 

 

 

Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.1%) (7)

 

 

 

1,215

 

1,215

 

 

 

 

 

 

 

 

 

1,804

 

2,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydratec, Inc.

 

Designer and Installer of Micro - Irrigation Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 92.5%) (7)

 

 

 

7,092

 

13,241

 

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - September 15, 2014)

 

4,500

 

4,253

 

4,350

 

 

 

 

 

Warrants (Fully diluted 30.1%)

 

 

 

1,129

 

1,650

 

 

 

 

 

 

 

 

 

5,382

 

6,000

 

 

5



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2012

(in thousands)

(Unaudited)

 

Portfolio Company

 

Business Description

 

Type of Investment (1) (2)

 

Principal (6)

 

Cost (6)

 

Fair Value

 

Control Investments (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 5.25%, Secured Debt (Maturity - November 14, 2013) (8)

 

2,260

 

2,260

 

2,260

 

 

 

 

 

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

 

2,345

 

2,345

 

2,345

 

 

 

 

 

Member Units (Fully diluted 60.8%) (7)

 

 

 

811

 

1,750

 

 

 

 

 

 

 

 

 

5,416

 

6,355

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Secured Debt (Maturity - August 22, 2012)

 

2,000

 

1,990

 

1,990

 

 

 

 

 

Preferred Stock (non-voting)

 

 

 

510

 

510

 

 

 

 

 

Warrants (Fully diluted 7.1%)

 

 

 

54

 

60

 

 

 

 

 

Common Stock (Fully diluted 70.0%)

 

 

 

100

 

580

 

 

 

 

 

 

 

 

 

2,654

 

3,140

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-Columbia Lumber Products, LLC

 

Manufacturer of Finger - Jointed Lumber Products

 

 

 

 

 

 

 

 

 

 

 

 

 

10% Secured Debt (Maturity - December 18, 2014)

 

1,250

 

1,250

 

1,250

 

 

 

 

 

12% Secured Debt (Maturity - December 18, 2014)

 

3,900

 

3,900

 

3,900

 

 

 

 

 

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

 

1,051

 

1,051

 

1,051

 

 

 

 

 

Warrants (Fully diluted 9.2%)

 

 

 

250

 

890

 

 

 

 

 

Member Units (Fully diluted 42.9%)

 

 

 

812

 

930

 

 

 

 

 

Member Units (Mid - Columbia Real Estate, LLC) (Fully diluted 50.0%) (7)

 

 

 

250

 

810

 

 

 

 

 

 

 

 

 

7,513

 

8,831

 

 

 

 

 

 

 

 

 

 

 

 

 

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - February 1, 2013) (8)

 

3,385

 

3,378

 

3,378

 

 

 

 

 

18% Secured Debt (Maturity - February 1, 2013)

 

5,173

 

5,149

 

5,149

 

 

 

 

 

Member Units (Fully diluted 46.3%) (7)

 

 

 

2,975

 

4,195

 

 

 

 

 

 

 

 

 

11,502

 

12,722

 

 

 

 

 

 

 

 

 

 

 

 

 

NRI Clinical Research, LLC

 

Clinical Research Center

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,265

 

4,973

 

4,973

 

 

 

 

 

Warrants (Fully diluted 12.5%)

 

 

 

252

 

390

 

 

 

 

 

Member Units (Fully diluted 24.8%)

 

 

 

500

 

770

 

 

 

 

 

 

 

 

 

5,725

 

6,133

 

 

 

 

 

 

 

 

 

 

 

 

 

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

12,100

 

11,079

 

11,079

 

 

 

 

 

Warrants (Fully diluted 12.2%)

 

 

 

817

 

817

 

 

 

 

 

Member Units (Fully diluted 43.2%)

 

 

 

2,900

 

2,900

 

 

 

 

 

 

 

 

 

14,796

 

14,796

 

 

 

 

 

 

 

 

 

 

 

 

 

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - April 1, 2013)

 

7,618

 

7,600

 

7,600

 

 

 

 

 

Common Stock (Fully diluted 48.0%)

 

 

 

1,080

 

3,550

 

 

 

 

 

 

 

 

 

8,680

 

11,150

 

 

 

 

 

 

 

 

 

 

 

 

 

Pegasus Research Group, LLC (Televerde)

 

Telemarketing and Data Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,691

 

5,630

 

5,630

 

 

 

 

 

Member Units (Fully diluted 43.7%)

 

 

 

1,250

 

1,250

 

 

 

 

 

 

 

 

 

6,880

 

6,880

 

 

 

 

 

 

 

 

 

 

 

 

 

PPL RVs, Inc.

 

Recreational Vehicle Dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

18% Secured Debt (Maturity - June 10, 2015)

 

4,450

 

4,404

 

4,450

 

 

 

 

 

Common Stock (Fully diluted 51.1%)

 

 

 

2,150

 

3,980

 

 

 

 

 

 

 

 

 

6,554

 

8,430

 

 

6



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2012

(in thousands)

(Unaudited)

 

Portfolio Company

 

Business Description

 

Type of Investment (1) (2)

 

Principal (6)

 

Cost (6)

 

Fair Value

 

Control Investments (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principle Environmental, LLC

 

Noise Abatement Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,750

 

3,808

 

4,080

 

 

 

 

 

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

 

3,525

 

3,470

 

3,525

 

 

 

 

 

Warrants (Fully diluted 14.6%)

 

 

 

1,200

 

2,630

 

 

 

 

 

Member Units (Fully diluted 25.0%)

 

 

 

2,000

 

4,510

 

 

 

 

 

 

 

 

 

10,478

 

14,745

 

 

 

 

 

 

 

 

 

 

 

 

 

River Aggregates, LLC

 

Processor of Construction Aggregates

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,700

 

3,468

 

3,468

 

 

 

 

 

Warrants (Fully diluted 20.0%)

 

 

 

202

 

100

 

 

 

 

 

Member Units (Fully diluted 40.0%)

 

 

 

550

 

200

 

 

 

 

 

 

 

 

 

4,220

 

3,768

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

1,056

 

1,053

 

1,053

 

 

 

 

 

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

 

5,482

 

5,384

 

5,384

 

 

 

 

 

Warrants (Fully diluted 47.1%)

 

 

 

896

 

 

 

 

 

 

Member Units (Non-voting)

 

 

 

200

 

 

 

 

 

 

 

 

 

 

7,533

 

6,437

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal and Mechanical Equipment, LLC

 

Commercial and Industrial Engineering Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - September 25, 2014) (8)

 

1,272

 

1,267

 

1,267

 

 

 

 

 

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

 

4,053

 

4,013

 

4,053

 

 

 

 

 

Member Units (Fully diluted 50.0%) (7)

 

 

 

1,000

 

6,090

 

 

 

 

 

 

 

 

 

6,280

 

11,410

 

 

 

 

 

 

 

 

 

 

 

 

 

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 42.8%) (7)

 

 

 

1,113

 

3,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Van Gilder Insurance Corporation

 

Insurance Brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Secured Debt (Maturity - January 31, 2013)

 

1,000

 

990

 

990

 

 

 

 

 

8% Secured Debt (Maturity - January 31, 2016)

 

1,634

 

1,619

 

1,619

 

 

 

 

 

13% Secured Debt (Maturity - January 31, 2016)

 

5,400

 

4,430

 

4,430

 

 

 

 

 

Warrants (Fully diluted 10.0%)

 

 

 

1,209

 

1,209

 

 

 

 

 

Common Stock (Fully diluted 15.5%)

 

 

 

2,500

 

2,500

 

 

 

 

 

 

 

 

 

10,748

 

10,748

 

 

 

 

 

 

 

 

 

 

 

 

 

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

 

 

 

 

 

 

 

 

 

 

 

 

 

6.5% Current /6.5% PIK Secured Debt (Maturity - December 23, 2016)

 

3,051

 

2,986

 

2,986

 

 

 

 

 

Series A Preferred Stock (Fully diluted 33.3%)

 

 

 

3,000

 

3,000

 

 

 

 

 

Common Stock (Fully diluted 36.7%)

 

 

 

3,706

 

 

 

 

 

 

 

 

 

 

9,692

 

5,986

 

 

 

 

 

 

 

 

 

 

 

 

 

Ziegler’s NYPD, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - October 1, 2013) (8)

 

1,000

 

996

 

996

 

 

 

 

 

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

 

4,353

 

4,328

 

4,328

 

 

 

 

 

Warrants (Fully diluted 46.6%)

 

 

 

600

 

300

 

 

 

 

 

 

 

 

 

5,924

 

5,624

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Control Investments (32.4% of total investments at fair value)

 

 

 

180,625

 

220,048

 

 

7



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2012

(in thousands)

(Unaudited)

 

Portfolio Company

 

Business Description

 

Type of Investment (1) (2)

 

Principal (6)

 

Cost (6)

 

Fair Value

 

Affiliate Investments (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Sensor Technologies, Inc.

 

Manufacturer of Commercial / Industrial Sensors

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants (Fully diluted 19.6%)

 

 

 

50

 

3,370

 

 

 

 

 

 

 

 

 

 

 

 

 

Compact Power Equipment Centers LLC

 

Equipment / Tool Rental

 

 

 

 

 

 

 

 

 

 

 

 

 

6% Current / 6% PIK Secured Debt (Maturity - December 31, 2014)

 

3,523

 

3,500

 

3,500

 

 

 

 

 

8% PIK Secured Debt (Maturity - December 31, 2012)

 

99

 

99

 

99

 

 

 

 

 

Series A Member Units (8% cumulative) (7)

 

 

 

870

 

870

 

 

 

 

 

Member Units (Fully diluted 10.6%)

 

 

 

1

 

1

 

 

 

 

 

 

 

 

 

4,470

 

4,470

 

 

 

 

 

 

 

 

 

 

 

 

 

Drilling Info, Inc.

 

Information Services for the Oil and Gas Industry

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 2.4%)

 

 

 

1,335

 

5,070

 

 

 

 

 

 

 

 

 

 

 

 

 

East Teak Fine Hardwoods, Inc.

 

Hardwood Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 5.0%)

 

 

 

480

 

380

 

 

 

 

 

 

 

 

 

 

 

 

 

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Liquidation of Distressed Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

10,500

 

9,918

 

9,918

 

 

 

 

 

Warrants (Fully diluted 22.5%)

 

 

 

400

 

400

 

 

 

 

 

 

 

 

 

10,318

 

10,318

 

 

 

 

 

 

 

 

 

 

 

 

 

Houston Plating and Coatings, LLC

 

Plating and Industrial Coating Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 11.1%) (7)

 

 

 

635

 

6,300

 

 

 

 

 

 

 

 

 

 

 

 

 

Integrated Printing Solutions, LLC

 

Specialty Card Printing

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

12,500

 

11,707

 

11,707

 

 

 

 

 

Warrants (Fully diluted 9.0%)

 

 

 

600

 

940

 

 

 

 

 

 

 

 

 

12,307

 

12,647

 

 

 

 

 

 

 

 

 

 

 

 

 

IRTH Holdings, LLC

 

Damage Prevention Technology Information Services

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - December 29, 2015)

 

4,873

 

4,802

 

4,873

 

 

 

 

 

Member Units (Fully diluted 22.3%)

 

 

 

850

 

2,720

 

 

 

 

 

 

 

 

 

5,652

 

7,593