Main Street Announces Exit of Portfolio Investments
Generates Successful Returns from Exits of Investments in CPEC and IAP
HOUSTON, July 28, 2017 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its investments in two of its portfolio companies.
In July 2017, Main Street fully exited its debt and equity investments in Compact Power Equipment, Inc. ("CPEC"), a light to medium duty equipment rental operation that owns and operates outdoor equipment rental locations. CPEC provides its customers a wide range of landscape and construction equipment available on both a long-term rental basis and an hourly rental basis. Main Street realized a gain of approximately $3.7 million on the exit of its equity investments in CPEC, representing realized value of $0.2 million above Main Street's fair market value of this equity investment as of March 31, 2017. On a cumulative basis including both Main Street's debt and equity investments in CPEC, Main Street realized a total internal rate of return of 19.0% and a 2.8 times money invested return since the original investment in CPEC in September 2009.
In May 2017, Main Street fully exited its debt and equity investments in Indianapolis Aviation Partners, LLC ("IAP"), a fixed base operator ("FBO") at the Indianapolis International Airport which operates as a part of the greater Million Air FBO network. IAP provides various aviation support services, including fueling, storage and other ground services to general aviation, fractional fleet and commercial customers. Main Street realized a gain of approximately $2.4 million on the exit of its equity investments in IAP, representing realized value of $0.8 million above Main Street's fair market value of these equity investments as of March 31, 2017. On a cumulative basis including both Main Street's debt and equity investments in IAP, Main Street realized a total internal rate of return of 17.7% and a 2.4 times money invested return on its investments since the original investment in IAP in September 2009.
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."
SOURCE Main Street Capital Corporation
Released July 28, 2017