Main Street Announces Exit of Portfolio Investment
Generates $15.5 Million Realized Gain From Exit of Investment in Drilling Info Holdings, Inc.
HOUSTON, Aug. 2, 2018 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its remaining investment in Drilling Info Holdings, Inc. ("Drillinginfo" or the "Company"), the leading software, data, and analytics platform for the energy value chain. Main Street realized a gain of $15.5 million on the exit of its remaining equity investment in Drillinginfo, with this realized value representing an increase in value of $6.5 million above Main Street's fair market value of this investment as of March 31, 2018.
Main Street made its initial investment in Drillinginfo in 2009 to support the Company's acquisition growth strategy, with Main Street's initial investment consisting of a second lien, secured debt investment with an equity warrant participation. After the initial investment, Main Street made several follow-on debt and equity investments in Drillinginfo. Main Street's debt investment in Drillinginfo was fully repaid and a portion of its equity interests in Drillinginfo were redeemed during the first quarter of 2012, with Main Street recognizing a realized gain of $9.2 million on that redemption, when a majority portion of Drillinginfo's equity interest was purchased by a leading growth private equity investment firm. As part of this transaction, Main Street maintained a minority equity stake in the Company.
In July 2018, Main Street realized an additional gain of approximately $15.5 million on the sale of its remaining equity interest in Drillinginfo. On a cumulative basis since Main Street made its initial investment in 2009, Main Street realized an annual internal rate of return of 50.5% and a 3.9 times money invested return on its debt and equity investments in Drillinginfo.
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.
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SOURCE Main Street Capital Corporation
Released August 2, 2018