Main Street Announces Portfolio Company Exit
Generates $7.9 million Realized Gain and 17.9% Internal Rate of Return from Exit of Investment in Hydratec, Inc.
HOUSTON, Feb. 27, 2018 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its investment in Hydratec, Inc. ("Hydratec" or the "Company"). Main Street realized a gain of approximately $7.9 million on the exit of its equity investment in Hydratec, representing a realized value consistent with Main Street's fair market value of this equity investment as of December 31, 2017. Main Street's initial investment in Hydratec in October 2007 consisted of approximately $9.3 million, including a first lien, senior secured debt investment and a direct equity investment. On a cumulative basis including both Main Street's debt and equity investments in Hydratec, Main Street realized a total internal rate of return of 17.9% and a 2.7 times money invested return.
Headquartered in Delano, California, and founded in 1981, Hydratec is a designer and installer of agricultural irrigation products and systems for farmers in the San Joaquin valley of central California. The Company has been a leader in applying advances in micro-irrigation techniques for large and small farms across its operating region.
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 February 27, 2018