Main Street Announces Portfolio Company Exit
Generates $17.9 million Realized Gain and 42.1% Internal Rate of Return from Exit of Debt and Equity Investments in Travis Acquisition LLC
HOUSTON, Oct. 6, 2016 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in Travis Acquisition LLC, the parent company of Travis Body and Trailer, Inc. ("Travis"), upon the successful sale of Travis to a private equity-backed strategic acquirer.
Main Street realized a gain of approximately $17.9 million on the exit of its equity investment in Travis, and on a cumulative basis since Main Street's initial investment in Travis in August of 2013, Main Street realized a total internal rate of return of 56.7% and a 3.9 times money invested return on its equity investment in Travis. The exit of Main Street's equity investment in Travis represents realized value of $4.6 million above Main Street's fair market value of its equity investment as of June 30, 2016.
Main Street's initial investment in Travis consisted of a $9.2 million first lien, senior secured debt investment and a $7.1 million direct equity investment. On a cumulative basis including both Main Street's debt and equity investments in Travis, Main Street realized a total internal rate of return of 42.1% and a 2.9 times money invested return.
Headquartered in Houston, Texas, Travis manufactures all-aluminum trailers, including end dump, bottom dump and transfer trailers, as well as several specialty application trailers. Travis serves customers in a variety of end markets, such as rendering, municipal solid waste, agriculture, recycling, energy, aggregates, underground utilities and construction. Main Street partnered with Travis' management team and a group of third party investors in August 2013 to facilitate the acquisition of Travis.
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 October 6, 2016