Main Street Announces Portfolio Company Exit
Generates $5.2 million Realized Gain and 24.2% Internal Rate of Return from Exit of Debt and Equity Investments in SoftTouch Medical Holdings, LLC
HOUSTON, Feb. 14, 2018 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in SoftTouch Medical Holdings, LLC ("SoftTouch" or the "Company"), upon the successful sale of SoftTouch to a sponsor-backed strategic acquirer.
Main Street realized a gain of approximately $5.2 million on the exit of its equity investment in SoftTouch, representing a realized value of $0.6 million above Main Street's fair market value of this equity investment as of September 30, 2017. On a cumulative basis since Main Street's initial investment in SoftTouch in October of 2014, Main Street realized an internal rate of return of 39.4% and a 2.7 times money invested return on its equity investment in SoftTouch. Main Street's initial investment in SoftTouch consisted of an $8.5 million first lien, senior secured debt investment and a $5.0 million direct equity investment. On a cumulative basis including both Main Street's debt and equity investments in SoftTouch, Main Street realized a total internal rate of return of 24.2% and a 1.8 times money invested return.
Headquartered in Marietta, Georgia, and founded in 1997, SoftTouch is a leading provider of home medical equipment and services, serving pediatric patients across the states of Georgia and Alabama. The Company provides a broad array of medical equipment and services to chronically ill youth through its diverse product offerings, including respiratory therapy, enteral feeding, phototherapy, ventilators, amongst others.
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 February 14, 2018