Main Street Capital Announces Exit of Portfolio Investment
Generates $1.7 million Realized Gain and 24.5% Internal Rate of Return from Exit of Investments in NTS Holdings, Inc.
HOUSTON, April 3, 2012 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced today that on March 30, 2012 it fully exited its debt and equity investments in NTS Holdings, Inc. ("NTS"), one of the largest independent providers of trench safety solutions for underground maintenance and construction activities in the United States, as part of a recapitalization of NTS by the company's management team and a group of institutional investors.
Main Street originally invested in a predecessor entity of NTS in May 2004 as part of an acquisition and Main Street continued to support NTS as it grew its business from an initial branch in Houston, Texas to its current twelve operating branches. Main Street made its current investments in NTS, which consisted of a $6.0 million secured, second lien debt investment, $9.9 million preferred stock investment and $0.1 million common stock investment, during April 2010 to support a recapitalization of NTS by the company's management team. As part of the exit, Main Street realized the payment of $2.5 million of accrued paid-in-kind dividends on its preferred stock and a realized gain of approximately $1.7 million on the sale of its common stock. On a cumulative basis since the recapitalization of NTS in April 2010, Main Street has realized a total internal rate of return of 24.5% and a 1.5 times money invested return on its debt and equity investments in NTS.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
Main Street Capital Corporation
Dwayne L. Hyzak, CFO and Senior Managing Director
SOURCE Main Street Capital Corporation
Released April 3, 2012