Main Street Announces Exit of Portfolio Investment
HOUSTON, April 28, 2015 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced that it recently fully exited its investment in California Healthcare Medical Billing, Inc. ("CHMB"). CHMB is a provider of outsourced medical billing, revenue cycle management, practice management and electronic health record (EHR) solutions to physicians, clinics, hospitals and health systems throughout the United States.
Main Street made its initial investment in CHMB in October 2008 to support growth initiatives, a strategic acquisition and refinancing of existing debt. Main Street's initial investment consisted of an approximately $2.3 million senior secured, first lien debt investment with equity warrant participation for approximately 20% of the fully-diluted equity interests in CHMB and an approximately $0.6 million common equity investment representing approximately 10% of the fully-diluted equity interests in CHMB. After its initial investment, Main Street made additional debt investments to support other CHMB add-on acquisitions and growth initiatives with Main Street's cumulative debt investment totaling approximately $9.7 million. In conjunction with a majority recapitalization of CHMB in April 2015, Main Street's debt investment was fully repaid and its equity and warrant positions were redeemed. Main Street recognized a realized gain of approximately $3.3 million on the redemption of its equity and warrant positions by CHMB. On a cumulative basis, Main Street realized an internal rate of return of approximately 17.0% and a 2.0 times money invested return on its debt and equity investment in CHMB.
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's common stock trades on the New York Stock Exchange ("NYSE") under the symbol "MAIN." In addition, Main Street has outstanding 6.125% Notes due 2023, which trade on the NYSE under the symbol "MSCA."
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SOURCE Main Street Capital Corporation
Released April 28, 2015