Main Street Announces Exit of Portfolio Investment
Generates $22.9 million Realized Gain and 28.3% Internal Rate of Return from Exit of Debt and Equity Investments in Daseke
HOUSTON, March 2, 2017 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed the exit of its debt and equity investments in Daseke, Inc. ("Daseke"), upon the successful closing of Daseke's previously announced definitive agreement with Hennessy Capital Acquisition Corp. II, a blank check company, under which HCAC merged with Daseke, allowing Daseke to become a NASDAQ-listed public company (NASDAQ: DSKE).
Main Street realized a gain of approximately $22.9 million on the exit of its equity investment in Daseke, and on a cumulative basis since Main Street's initial investment in Daseke in December 2008, Main Street realized a total internal rate of return of 57.7% and a 5.9 times money invested return on its equity investment in Daseke. On a cumulative basis including both Main Street's debt and equity investments in Daseke, Main Street realized a total internal rate of return of 28.3% and a 2.2 times money invested return. The exit of Main Street's equity investments in Daseke represents realized value of $4.0 million above Main Street's fair market value of these equity investments as of December 31, 2016.
Main Street's original investment in Daseke in December 2008 included an $8.0 million debt investment and a $1.0 million equity investment. After the original investment in Daseke, Main Street's investments grew to total debt investments of $20.0 million and total equity investments of $4.8 million as Main Street provided additional funding to support add-on acquisitions.
Daseke is a leading consolidator of the open-deck trucking market and the largest owner of open-deck capacity in North America. The Daseke family of companies offers daily trucking services across the United States, Canada and Mexico, serving a variety of diverse end markets with a fleet of more than 3,000 tractors and 6,000 flatbed and specialized trailers. Daseke provides truckload and over dimensional large project moving and full service logistics.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily 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 March 2, 2017