Main Street Capital Announces Two New Investments
Main Street With Over $40 Million of Cash Liquidity
HOUSTON, Oct. 21 /PRNewswire-FirstCall/ -- Main Street Capital Corporation (Nasdaq: MAIN) ("Main Street") announced today that it has completed two new portfolio investments. Main Street's new portfolio investments include a $2.0 million investment in Schneider Sales Management, LLC ("Schneider") to support a management buyout transaction and a $1.8 million investment in California Healthcare Medical Billing, Inc. ("CHMB") for growth financing purposes. Subsequent to these new investments, Main Street has over $40 million of available cash liquidity, which is expected to provide sufficient funding for its new investment and operational activities for the foreseeable future.
Main Street's investment in Schneider consists of a $2.0 million first lien, secured debt investment with equity warrant participation representing approximately 12% of the fully diluted equity interests in Schneider. Schneider is a leading publisher of proprietary sales development materials and provider of sales-management consulting services for financial institutions. Schneider's products and services enable its clients to achieve higher levels of profitability, customer satisfaction, and sales via proven methodologies developed over its 25-year history in serving financial institutions.
Main Street's investment in CHMB consists of a $1.4 million first lien, secured debt investment with equity warrant participation, and a $0.4 million equity investment. Through its equity warrant participation and direct equity investment, Main Street owns approximately 18% of the fully diluted equity interests in CHMB. Main Street has also provided CHMB with a $0.6 million first lien, secured revolving loan to support CHMB's continuing growth. CHMB provides outsourced medical billing, revenue cycle management, and administrative healthcare support to physician practices, clinics and multi- specialty groups. Through its superior customer service and leading technology platform, CHMB helps physicians improve their revenue cycle, reduce administrative errors, and offer their patients an improved quality of care.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (http://www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies. Main Street's investments are generally made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives to its portfolio companies.
FORWARD LOOKING STATEMENTS
This press release may contain certain forward-looking statements, including but not limited to the current amount of available cash liquidity being sufficient to fund new investment and operational activities in the foreseeable future. Any such statements, other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results may vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and Main Street undertakes no obligation to update any such statement now or in the future.
Contacts: Main Street Capital Corporation Todd A. Reppert, President and CFO firstname.lastname@example.org 713-350-6000 Dennard Rupp Gray and Easterly, LLC Ken Dennard email@example.com / 713-529-6600 Augustine Okwu firstname.lastname@example.org / 404-532-0086
SOURCE Main Street Capital Corporation
Released October 21, 2008