10-Q 1 a12-20050_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 September 30, 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 November 7, 2012 was 31,657,264.

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

PART I
FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Consolidated Balance Sheets — September 30, 2012 (unaudited) and December 31, 2011

1

 

 

 

 

Consolidated Statements of Operations (unaudited) — Three and nine months ended September 30, 2012 and 2011

2

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) — Nine months ended September 30, 2012 and 2011

3

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) — Nine months ended September 30, 2012 and 2011

4

 

 

 

 

Consolidated Schedule of Investments (unaudited) — September 30, 2012

5

 

 

 

 

Consolidated Schedule of Investments — December 31, 2011

20

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

35

 

 

 

Item 2.

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

57

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

74

 

 

 

Item 4.

Controls and Procedures

75

 

 

 

PART II
OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

75

 

 

 

Item 1A.

Risk Factors

75

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

75

 

 

 

Item 5.

Other Information

75

 

 

 

Item 6.

Exhibits

76

 

 

 

 

Signatures

77

 



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)

 

 

 

September 30, 2012

 

December 31, 2011

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Portfolio investments at fair value:

 

 

 

 

 

Control investments (cost: $184,526 and $206,787 as of September 30, 2012 and December 31, 2011, respectively)

 

$

239,917

 

$

238,924

 

Affiliate investments (cost: $111,143 and $110,157 as of September 30, 2012 and December 31, 2011, respectively)

 

154,972

 

146,405

 

Non-Control/Non-Affiliate investments (cost: $431,991 and $275,061 as of September 30, 2012 and December 31, 2011, respectively)

 

439,501

 

270,895

 

Investment in affiliated Investment Manager (cost: $2,668 and $4,284 as of September 30, 2012 and December 31, 2011, respectively)

 

202

 

1,869

 

 

 

 

 

 

 

Total portfolio investments (cost: $730,328 and $596,289 as of September 30, 2012 and December 31, 2011, respectively)

 

834,592

 

658,093

 

Marketable securities and idle funds investments (cost: $1,965 and $25,935 as of September 30, 2012 and December 31, 2011, respectively)

 

2,038

 

26,242

 

 

 

 

 

 

 

Total investments (cost: $732,293 and $622,224 as of September 30, 2012 and December 31, 2011, respectively)

 

836,630

 

684,335

 

 

 

 

 

 

 

Cash and cash equivalents

 

19,584

 

42,650

 

Interest receivable and other assets

 

11,818

 

6,539

 

Deferred financing costs (net of accumulated amortization of $2,968 and $2,167 as of September 30, 2012 and December 31, 2011, respectively)

 

3,766

 

4,168

 

 

 

 

 

 

 

Total assets

 

$

871,798

 

$

737,692

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

SBIC debentures (par: $209,000 and $220,000 as of September 30, 2012 and December 31, 2011, respectively; par of $100,000 and $95,000 is recorded at a fair value of $85,083 and $76,887 as of September 30, 2012 and December 31, 2011, respectively)

 

$

194,083

 

$

201,887

 

Credit facility

 

103,000

 

107,000

 

Interest payable

 

1,197

 

3,984

 

Dividend payable

 

4,743

 

2,856

 

Deferred tax liability, net

 

9,426

 

3,776

 

Payable to affiliated Investment Manager

 

3,342

 

4,831

 

Accounts payable and other liabilities

 

2,853

 

2,170

 

 

 

 

 

 

 

Total liabilities

 

318,644

 

326,504

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 31,619,333 and 26,714,384 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively)

 

316

 

267

 

Additional paid-in capital

 

464,141

 

360,164

 

Accumulated net investment income, net of cumulative dividends of $101,853 and $79,414 as of September 30, 2012 and December 31, 2011, respectively

 

31,289

 

12,531

 

Accumulated net realized loss from investments, net of cumulative dividends of $27,852 and $13,804 as of September 30, 2012 and December 31, 2011, respectively

 

(29,158

)

(20,445

)

Net unrealized appreciation, net of income taxes

 

86,566

 

53,194

 

 

 

 

 

 

 

Total Net Asset Value

 

553,154

 

405,711

 

 

 

 

 

 

 

Noncontrolling interest

 

 

5,477

 

 

 

 

 

 

 

Total net assets including noncontrolling interests

 

553,154

 

411,188

 

 

 

 

 

 

 

Total liabilities and net assets

 

$

871,798

 

$

737,692

 

 

 

 

 

 

 

NET ASSET VALUE PER SHARE

 

$

17.49

 

$

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 per share amounts)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT INCOME:

 

 

 

 

 

 

 

 

 

Interest, fee and dividend income:

 

 

 

 

 

 

 

 

 

Control investments

 

$

5,991

 

$

6,286

 

$

17,841

 

$

18,577

 

Affiliate investments

 

4,838

 

3,162

 

14,652

 

8,468

 

Non-Control/Non-Affiliate investments

 

12,015

 

7,200

 

30,263

 

18,716

 

Total interest, fee and dividend income

 

22,844

 

16,648

 

62,756

 

45,761

 

Interest from marketable securities, idle funds and other

 

110

 

438

 

1,599

 

829

 

Total investment income

 

22,954

 

17,086

 

64,355

 

46,590

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Interest

 

(3,923

)

(3,716

)

(11,967

)

(9,882

)

General and administrative

 

(595

)

(479

)

(1,757

)

(1,585

)

Expenses reimbursed to affiliated Investment Manager

 

(2,215

)

(1,950

)

(7,574

)

(6,287

)

Share-based compensation

 

(699

)

(580

)

(1,860

)

(1,466

)

Total expenses

 

(7,432

)

(6,725

)

(23,158

)

(19,220

)

NET INVESTMENT INCOME

 

15,522

 

10,361

 

41,197

 

27,370

 

 

 

 

 

 

 

 

 

 

 

NET REALIZED GAIN (LOSS) FROM INVESTMENTS:

 

 

 

 

 

 

 

 

 

Control investments

 

122

 

407

 

(1,940

)

407

 

Affiliate investments

 

 

 

5,500

 

 

Non-Control/Non-Affiliate investments

 

128

 

794

 

478

 

775

 

Marketable securities and idle funds investments

 

277

 

247

 

1,297

 

515

 

Total net realized gain from investments

 

527

 

1,448

 

5,335

 

1,697

 

NET REALIZED INCOME

 

16,049

 

11,809

 

46,532

 

29,067

 

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

 

 

 

 

 

 

 

 

 

Portfolio investments

 

22,096

 

8,162

 

44,120

 

23,653

 

Marketable securities and idle funds investments

 

(151

)

(1,712

)

(235

)

(1,025

)

SBIC debentures

 

(1,858

)

(3,636

)

(3,367

)

(5,715

)

Investment in affiliated Investment Manager

 

 

(48

)

(51

)

(135

)

Total net change in unrealized appreciation

 

20,087

 

2,766

 

40,467

 

16,778

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

(4,169

)

(139

)

(7,041

)

(3,302

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 

31,967

 

14,436

 

79,958

 

42,543

 

Noncontrolling interest

 

 

 

(54

)

(158

)

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

 

$

31,967

 

$

14,436

 

$

79,904

 

$

42,385

 

 

 

 

 

 

 

 

 

 

 

NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED

 

$

0.49

 

$

0.44

 

$

1.44

 

$

1.23

 

NET REALIZED INCOME PER SHARE - BASIC AND DILUTED

 

$

0.51

 

$

0.50

 

$

1.62

 

$

1.30

 

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

 

$

1.01

 

$

0.62

 

$

2.79

 

$

1.94

 

DIVIDENDS PAID PER SHARE

 

$

0.44

 

$

0.39

 

$

1.26

 

$

1.16

 

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

 

31,578,742

 

23,194,896

 

28,615,877

 

21,824,775

 

 

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

 

Loss From

 

Investments,

 

 

 

 

 

Including

 

 

 

Number

 

Par

 

Paid-In

 

Income, Net

 

Investments,

 

Net of Income

 

Total Net

 

Noncontrolling

 

Noncontrolling

 

 

 

of Shares

 

Value

 

Capital

 

of Dividends

 

Net of Dividends

 

Taxes

 

Asset Value

 

Interest

 

Interest

 

Balances at December 31, 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

 

70,274

 

 

 

 

70,314

 

 

70,314

 

Share-based compensation

 

 

 

1,466

 

 

 

 

1,466

 

 

1,466

 

Purchase of vested stock for employee payroll tax withholding

 

(32,725

)

 

 

(674

)

 

 

 

 

 

 

(674

)

 

 

(674

)

Dividend reinvestment

 

303,659

 

3

 

5,719

 

 

 

 

5,722

 

 

5,722

 

Issuance of restricted stock

 

125,970

 

1

 

(1

)

 

 

 

 

 

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(110

)

(110

)

Dividends to stockholders

 

 

 

 

(27,406

)

(802

)

 

(28,208

)

 

(28,208

)

Net increase resulting from operations

 

 

 

 

27,370

 

1,697

 

13,476

 

42,543

 

 

42,543

 

Noncontrolling interest

 

 

 

 

 

 

(158

)

(158

)

158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2011

 

23,219,348

 

$

232

 

$

301,269

 

$

9,226

 

$

(19,647

)

$

45,460

 

$

336,540

 

$

4,496

 

341,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2011

 

26,714,384

 

$

267

 

$

360,164

 

$

12,531

 

$

(20,445

)

$

53,194

 

$

405,711

 

$

5,477

 

$

411,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public offering of common stock, net of offering costs

 

4,312,500

 

43

 

92,950

 

 

 

 

92,993

 

 

92,993

 

MSC II noncontrolling interest acquisition

 

229,634

 

2

 

5,328

 

 

 

 

5,330

 

(5,417

)

(87

)

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

 

 

 

(1,616

)

 

 

 

(1,616

)

 

(1,616

)

Share-based compensation

 

 

 

1,860

 

 

 

 

1,860

 

 

1,860

 

Purchase of vested stock for employee payroll tax withholding

 

(40,549

)

 

(1,012

)

 

 

 

(1,012

)

 

(1,012

)

Dividend reinvestment

 

264,331

 

3

 

6,468

 

 

 

 

6,471

 

 

6,471

 

Issuance of restricted stock

 

139,033

 

1

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(114

)

(114

)

Dividends to stockholders

 

 

 

 

(22,439

)

(14,048

)

 

(36,487

)

 

(36,487

)

Net increase resulting from operations

 

 

 

 

41,197

 

5,335

 

33,426

 

79,958

 

 

79,958

 

Noncontrolling interest

 

 

 

 

 

 

(54

)

(54

)

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2012

 

31,619,333

 

$

316

 

$

464,141

 

$

31,289

 

$

(29,158

)

$

86,566

 

$

553,154

 

$

 

$

553,154

 

 

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)

 

 

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

79,958

 

$

42,543

 

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

 

 

 

 

 

Net change in unrealized appreciation

 

(40,467

)

(16,778

)

Net realized gain from investments

 

(5,335

)

(1,697

)

Accretion of unearned income

 

(9,263

)

(4,041

)

Net payment-in-kind interest

 

(2,405

)

(1,752

)

Cumulative dividends

 

1,745

 

(1,246

)

Share-based compensation expense

 

1,860

 

1,466

 

Amortization of deferred financing costs

 

802

 

480

 

Deferred taxes

 

5,650

 

3,002

 

Changes in other assets and liabilities:

 

 

 

 

 

Interest receivable and other assets

 

(1,160

)

(1,273

)

Interest payable

 

(2,787

)

(2,274

)

Payable to affiliated Investment Manager

 

(1,489

)

3,090

 

Accounts payable and other liabilities

 

316

 

269

 

Deferred fees and other

 

1,428

 

1,238

 

Net cash provided by operating activities

 

28,853

 

23,027

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Investments in portfolio companies

 

(397,912

)

(266,247

)

Principal payments received on loans and debt securities in portfolio companies

 

246,138

 

97,043

 

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

 

25,869

 

886

 

Investments in marketable securities and idle funds investments

 

(7,596

)

(20,021

)

Proceeds from marketable securities and idle funds investments

 

33,502

 

4,651

 

Net cash used in investing activities

 

(99,999

)

(183,688

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

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

 

92,993

 

70,314

 

Distributions to noncontrolling interest

 

(114

)

(110

)

Dividends paid to stockholders

 

(28,879

)

(19,350

)

Proceeds from issuance of SBIC debentures

 

5,000

 

40,000

 

Repayments of SBIC debentures

 

(16,000

)

 

Proceeds from credit facility

 

170,000

 

144,000

 

Repayments on credit facility

 

(174,000

)

(69,000

)

Purchase of vested stock for employee payroll tax withholding

 

(1,012

)

(675

)

Payment of deferred loan costs and SBIC debenture fees

 

(571

)

(1,726

)

Other

 

663

 

 

Net cash provided by financing activities

 

48,080

 

163,453

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(23,066

)

2,792

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

42,650

 

22,334

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

19,584

 

$

25,126

 

 

The accompanying notes are an integral part of these financial statements

 

4



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2012

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Control Investments (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Café Brazil, LLC

 

Casual Restaurant
Group

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

800

 

800

 

800

 

 

 

 

 

Member Units (Fully diluted 41.0%) (8)

 

 

 

42

 

3,530

 

 

 

 

 

 

 

 

 

842

 

4,330

 

 

 

 

 

 

 

 

 

 

 

 

 

California Healthcare Medical Billing, Inc.

 

Outsourced Billing and
Revenue Cycle
Management

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

8,103

 

7,900

 

8,013

 

 

 

 

 

Warrants (Fully diluted 21.3%)

 

 

 

1,193

 

3,380

 

 

 

 

 

Common Stock (Fully diluted 9.8%)

 

 

 

1,177

 

1,560

 

 

 

 

 

 

 

 

 

10,270

 

12,953

 

 

 

 

 

 

 

 

 

 

 

 

 

CBT Nuggets, LLC

 

Produces and Sells IT
Training Certification
Videos

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

850

 

850

 

850

 

 

 

 

 

Member Units (Fully diluted 41.6%) (8)

 

 

 

1,300

 

7,210

 

 

 

 

 

 

 

 

 

2,150

 

8,060

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceres Management, LLC (Lambs)

 

Aftermarket Automotive
Services Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,000

 

3,990

 

3,990

 

 

 

 

 

Preferred Stock (12% cumulative)

 

 

 

3,000

 

3,000

 

 

 

 

 

Member Units (Fully diluted 79.0%)

 

 

 

5,273

 

 

 

 

 

 

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

 

1,078

 

1,078

 

1,078

 

 

 

 

 

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

 

 

 

625

 

800

 

 

 

 

 

 

 

 

 

13,966

 

8,868

 

 

 

 

 

 

 

 

 

 

 

 

 

Condit Exhibits, LLC

 

Tradeshow Exhibits /
Custom Displays

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,661

 

4,647

 

4,647

 

 

 

 

 

Warrants (Fully diluted 47.9%)

 

 

 

320

 

320

 

 

 

 

 

 

 

 

 

4,967

 

4,967

 

 

 

 

 

 

 

 

 

 

 

 

 

Gulf Manufacturing, LLC

 

Manufacturer of Specialty
Fabricated Industrial
Piping Products

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

919

 

919

 

919

 

 

 

 

 

Member Units (Fully diluted 34.2%) (8)

 

 

 

2,980

 

12,660

 

 

 

 

 

 

 

 

 

3,899

 

13,579

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrison Hydra-Gen, Ltd.

 

Manufacturer of
Hydraulic Generators

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,024

 

4,612

 

5,024

 

 

 

 

 

Preferred Stock (8% cumulative) (8)

 

 

 

1,145

 

1,145

 

 

 

 

 

Common Equity (Fully diluted 34.5%) (8)

 

 

 

718

 

2,620

 

 

 

 

 

 

 

 

 

6,475

 

8,789

 

 

 

 

 

 

 

 

 

 

 

 

 

Hawthorne Customs and Dispatch Services, LLC

 

Facilitator of Import
Logistics, Brokerage, and
Warehousing

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 37.1%) (8)

 

 

 

589

 

1,610

 

 

 

 

 

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

 

 

 

1,215

 

1,215

 

 

 

 

 

 

 

 

 

1,804

 

2,825

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydratec, Inc.

 

Designer and Installer of
Micro-Irrigation Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 94.2%) (8)

 

 

 

7,095

 

13,710

 

 

5



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,275

 

4,081

 

4,124

 

 

 

 

 

Warrants (Fully diluted 30.1%)

 

 

 

1,129

 

1,650

 

 

 

 

 

 

 

 

 

5,210

 

5,774

 

 

 

 

 

 

 

 

 

 

 

 

 

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,769

 

1,769

 

1,769

 

 

 

 

 

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

 

1,836

 

1,836

 

1,836

 

 

 

 

 

Member Units (Fully diluted 60.8%) (8)

 

 

 

811

 

1,750

 

 

 

 

 

 

 

 

 

4,416

 

5,355

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighting Unlimited, LLC

 

Commercial and
Residential Lighting
Products and Design
Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,946

 

1,946

 

1,946

 

 

 

 

 

Preferred Stock (non-voting)

 

 

 

502

 

502

 

 

 

 

 

Warrants (Fully diluted 7.1%)

 

 

 

54

 

20

 

 

 

 

 

Common Stock (Fully diluted 70.0%) (8)

 

 

 

100

 

200

 

 

 

 

 

 

 

 

 

2,602

 

2,668

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

1,028

 

1,028

 

1,028

 

 

 

 

 

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%) (8)

 

 

 

250

 

810

 

 

 

 

 

 

 

 

 

7,490

 

8,808

 

 

 

 

 

 

 

 

 

 

 

 

 

NAPCO Precast, LLC

 

Precast Concrete
Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,385

 

3,382

 

3,382

 

 

 

 

 

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

 

5,173

 

5,163

 

5,163

 

 

 

 

 

Member Units (Fully diluted 44.0%)

 

 

 

2,975

 

4,195

 

 

 

 

 

 

 

 

 

11,520

 

12,740

 

 

 

 

 

 

 

 

 

 

 

 

 

NRI Clinical Research, LLC

 

Clinical Research Center

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,736

 

4,495

 

4,495

 

 

 

 

 

Warrants (Fully diluted 12.5%)

 

 

 

252

 

480

 

 

 

 

 

Member Units (Fully diluted 24.8%) (8)

 

 

 

500

 

960

 

 

 

 

 

 

 

 

 

5,247

 

5,935

 

 

 

 

 

 

 

 

 

 

 

 

 

NRP Jones, LLC

 

Manufacturer of
Hoses, Fittings and
Assemblies

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

12,100

 

11,158

 

11,890

 

 

 

 

 

Warrants (Fully diluted 12.2%)

 

 

 

817

 

1,420

 

 

 

 

 

Member Units (Fully diluted 43.2%) (8)

 

 

 

2,900

 

5,030

 

 

 

 

 

 

 

 

 

14,875

 

18,340

 

 

 

 

 

 

 

 

 

 

 

 

 

OMi Holdings, Inc.

 

Manufacturer of
Overhead Cranes

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,778

 

5,771

 

5,778

 

 

 

 

 

Common Stock (Fully diluted 48.0%)

 

 

 

1,080

 

8,470

 

 

 

 

 

 

 

 

 

6,851

 

14,248

 

 

 

 

 

 

 

 

 

 

 

 

 

Pegasus Research Group, LLC (Televerde)

 

Telemarketing and
Data Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,191

 

5,141

 

5,191

 

 

 

 

 

Member Units (Fully diluted 43.7%) (8)

 

 

 

1,250

 

1,880

 

 

 

 

 

 

 

 

 

6,391

 

7,071

 

 

 

 

 

 

 

 

 

 

 

 

 

PPL RVs, Inc.

 

Recreational Vehicle
Dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

8,460

 

8,399

 

8,460

 

 

 

 

 

Common Stock (Fully diluted 51.1%)

 

 

 

2,150

 

5,480

 

 

 

 

 

 

 

 

 

10,549

 

13,940

 

 

 

 

 

 

 

 

 

 

 

 

 

Principle Environmental, LLC

 

Noise Abatement
Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,750

 

3,897

 

4,750

 

 

6



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

 

 

 

 

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

 

3,576

 

3,518

 

3,576

 

 

 

 

 

Warrants (Fully diluted 14.6%)

 

 

 

1,200

 

3,860

 

 

 

 

 

Member Units (Fully diluted 22.6%)

 

 

 

1,863

 

6,150

 

 

 

 

 

 

 

 

 

10,478

 

18,336

 

 

 

 

 

 

 

 

 

 

 

 

 

River Aggregates, LLC

 

Processor of
Construction Aggregates

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,700

 

3,490

 

3,490

 

 

 

 

 

Warrants (Fully diluted 20.0%)

 

 

 

202

 

 

 

 

 

 

Member Units (Fully diluted 40.0%)

 

 

 

550

 

 

 

 

 

 

 

 

 

 

4,242

 

3,490

 

 

 

 

 

 

 

 

 

 

 

 

 

The MPI Group, LLC

 

Manufacturer of Custom
Hollow Metal Doors,
Frames and Accessories

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,079

 

1,077

 

1,077

 

 

 

 

 

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

 

5,639

 

5,572

 

5,572

 

 

 

 

 

Warrants (Fully diluted 52.3%)

 

 

 

896

 

 

 

 

 

 

Member Units (Non-voting)

 

 

 

200

 

 

 

 

 

 

 

 

 

 

7,745

 

6,649

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal and Mechanical Equipment, LLC

 

Commercial and Industrial
Engineering Services

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,272

 

1,267

 

1,272

 

 

 

 

 

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

 

4,053

 

4,020

 

4,053

 

 

 

 

 

Member Units (Fully diluted 50.0%) (8)

 

 

 

1,000

 

6,120

 

 

 

 

 

 

 

 

 

6,287

 

11,445

 

 

 

 

 

 

 

 

 

 

 

 

 

Uvalco Supply, LLC

 

Farm and Ranch Supply
Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 42.8%) (8)

 

 

 

1,113

 

2,840

 

 

 

 

 

 

 

 

 

 

 

 

 

Van Gilder Insurance Corporation

 

Insurance Brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,000

 

996

 

996

 

 

 

 

 

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

 

1,454

 

1,441

 

1,441

 

 

 

 

 

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

 

6,150

 

5,271

 

5,271

 

 

 

 

 

Warrants (Fully diluted 10.0%)

 

 

 

1,209

 

1,180

 

 

 

 

 

Common Stock (Fully diluted 15.5%)

 

 

 

2,500

 

2,430

 

 

 

 

 

 

 

 

 

11,417

 

11,318

 

 

 

 

 

 

 

 

 

 

 

 

 

Vision Interests, Inc.

 

Manufacturer / Installer
of Commercial Signage

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,152

 

3,092

 

3,092

 

 

 

 

 

Series A Preferred Stock (Fully diluted 50.9%)

 

 

 

3,000

 

3,280

 

 

 

 

 

Common Stock (Fully diluted 19.1%)

 

 

 

3,706

 

100

 

 

 

 

 

 

 

 

 

9,798

 

6,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Ziegler’s NYPD, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,000

 

998

 

998

 

 

 

 

 

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

 

5,246

 

5,229

 

5,229

 

 

 

 

 

Warrants (Fully diluted 46.6%)

 

 

 

600

 

180

 

 

 

 

 

 

 

 

 

6,827

 

6,407

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Control Investments (28.7% of total investments at fair value)

 

 

 

184,526

 

239,917

 

 

7



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2012

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Affiliate Investments (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Sensor Technologies, Inc.

 

Manufacturer of
Commercial / Industrial
Sensors

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants (Fully diluted 19.6%)

 

 

 

50

 

3,890

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5,000

 

4,744

 

4,744

 

 

 

 

 

Warrants (Fully diluted 7.5%)

 

 

 

200

 

200

 

 

 

 

 

 

 

 

 

4,944

 

4,944

 

 

 

 

 

 

 

 

 

 

 

 

 

Compact Power Equipment Centers LLC

 

Equipment / Tool Rental

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,631

 

3,611

 

3,611

 

 

 

 

 

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

 

36

 

36

 

36

 

 

 

 

 

Series A Member Units (8% cumulative) (Fully diluted 0.8%) (8)

 

 

 

904

 

904

 

 

 

 

 

Member Units (Fully diluted 10.6%)

 

 

 

1

 

1

 

 

 

 

 

 

 

 

 

4,552

 

4,552

 

 

 

 

 

 

 

 

 

 

 

 

 

Daseke, Inc.