Main Street Announces New Portfolio Investment
Invests $31.8 Million in Classic H&G Holdings, LLC
HOUSTON, March 19, 2020 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a new portfolio investment to facilitate the minority recapitalization of Classic H&G Holdings, LLC ("Classic" or the "Company"), a leading provider of engineered packaging solutions for the home & garden and fragrance & cosmetic industries. Main Street, along with its co-investor, partnered with the Company's existing owner and senior management team to facilitate the transaction and provide growth capital, with Main Street funding $31.8 million in a combination of first-lien, senior secured term debt and a minority direct equity investment. The Company's capital structure and liquidity position at closing included approximately $3.0 million of cash on the Company's balance sheet and other contractual arrangements providing the Company access to an additional $3.0 million of equity support to facilitate the Company's future capital and liquidity needs. In addition, Main Street and its co-investors are providing Classic with a credit facility to support its future growth initiatives and working capital needs.
Founded in 1975 and headquartered in Monroe, Connecticut, Classic delivers high-quality, unique packaging products through two distinct brands. The Classic Home & Garden brand designs, engineers, manufactures and distributes decorative planters, fountains and home décor items through partnerships with growers, garden shops and traditional/online retailers, and the Jade Road brand designs, engineers and manufactures turnkey fragrance products in addition to custom packaging solutions for the global fragrance and beauty categories.
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 March 19, 2020