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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)    

ý
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

OR

o
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:                        to                       

Commission File Number: 001-33723

Main Street Capital Corporation
(Exact name of registrant as specified in its charter)

Maryland
(State or other jurisdiction of
incorporation or organization)		   41-2230745
(I.R.S. Employer
Identification No.)



1300 Post Oak Boulevard, 8th floor
Houston, TX
(Address of principal executive offices)
 
77056
(Zip Code)

(713) 350-6000
(Registrant's telephone number including area code)

n/a
(Former name, former address and former fiscal year, if changed since last report)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o    No o

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o
 (do not check if
smaller reporting company)		   Smaller reporting company o

Emerging growth company o

        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

        Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

        The number of shares outstanding of the issuer's common stock as of May 4, 2017 was 55,922,561.

   

Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

  

Consolidated Financial Statements

    

 

Consolidated Balance Sheets—March 31, 2017 (unaudited) and December 31, 2016

   1

 

Consolidated Statements of Operations (unaudited)—Three months ended March 31, 2017 and 2016

   2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, 2017 and 2016

   3

 

Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, 2017 and 2016

   4

 

Consolidated Schedule of Investments (unaudited)—March 31, 2017

   5

 

Consolidated Schedule of Investments—December 31, 2016

   34

 

Notes to Consolidated Financial Statements (unaudited)

   63

 

Consolidated Financial Statement Schedule

   110

 

Consolidated Schedule of Investments in and Advances to Affiliates (unaudited)—Three months ended March 31, 2017

   110

Item 2.

  

Management's Discussion and Analysis of Financial Condition and Results of Operations

   115

Item 3.

  

Quantitative and Qualitative Disclosures about Market Risk

   135

Item 4.

  

Controls and Procedures

   136

PART II
OTHER INFORMATION

Item 1.

  

Legal Proceedings

  
137

Item 1A.

  

Risk Factors

   137

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

   137

Item 6.

  

Exhibits

   137

 

Signatures

   138

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(dollars in thousands, except shares and per share amounts)

 
   March 31, 2017   December 31, 2016  
 
   (Unaudited)
    
  

ASSETS

              

Portfolio investments at fair value:

    
 		    
 		  

Control investments (cost: $491,749 and $439,674 as of March 31, 2017 and December 31, 2016, respectively)

   $ 658,239   $ 594,282  

Affiliate investments (cost: $373,895 and $394,699 as of March 31, 2017 and December 31, 2016, respectively)

     329,024     375,948  

Non-Control/Non-Affiliate investments (cost: $1,010,832 and $1,037,510 as of March 31, 2017 and December 31, 2016, respectively)

     992,115     1,026,676  
​ ​ ​ ​ ​ ​ ​ ​

Total investments (cost: $1,876,476 and $1,871,883 as of March 31, 2017 and December 31, 2016, respectively)

     1,979,378     1,996,906  

Cash and cash equivalents

     33,605     24,480  

Interest receivable and other assets

     37,560     35,133  

Receivable for securities sold

     8,604     1,990  

Deferred financing costs (net of accumulated amortization of $12,205 and $11,547 as of March 31, 2017 and December 31, 2016, respectively)

    12,603     12,645  

Deferred tax asset, net

     4,739     9,125  
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 2,076,489   $ 2,080,279  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

LIABILITIES

    
 		    
 		  

Credit facility

  
$
288,000		  
$
343,000		  

SBIC debentures (par: $240,200 and $240,000 as of March 31, 2017 and December 31, 2016, respectively. Par of $50,000 and $75,200 is recorded at a fair value of $49,155 and $74,803 as of March 31, 2017 and December 31, 2016, respectively)

     239,355     239,603  

4.50% Notes

     175,000     175,000  

6.125% Notes

     90,655     90,655  

Accounts payable and other liabilities

     11,758     14,205  

Payable for securities purchased

     14,064     2,184  

Interest payable

     3,471     4,103  

Dividend payable

     10,252     10,048  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

     832,555     878,798  

Commitments and contingencies (Note M)

              

NET ASSETS

    
 		    
 		  

Common stock, $0.01 par value per share (150,000,000 shares authorized; 55,423,375 and 54,312,444 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively)

    
554		    
543		  

Additional paid-in capital

     1,185,478     1,143,883  

Accumulated net investment income, net of cumulative dividends of $532,336 and $521,297 as of March 31, 2017 and December 31, 2016, respectively

     33,943     19,033  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $75,959 before cumulative dividends of $126,845 as of March 31, 2017 and accumulated net realized gain from investments of $48,394 before cumulative dividends of $107,281 as of December 31, 2016)

     (50,886 )   (58,887 )

Net unrealized appreciation, net of income taxes

     74,845     96,909  
​ ​ ​ ​ ​ ​ ​ ​

Total net assets

     1,243,934     1,201,481  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities and net assets

   $ 2,076,489   $ 2,080,279  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

NET ASSET VALUE PER SHARE

  
$
22.44		  
$
22.10 		 
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

   

The accompanying notes are an integral part of these consolidated financial statements

1

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(dollars in thousands, except shares and per share amounts)

(Unaudited)

 
   Three Months Ended
March 31, 		 
 
   2017   2016  

INVESTMENT INCOME:

              

Interest, fee and dividend income:

              

Control investments

   $ 12,988   $ 12,615  

Affiliate investments

     9,899     8,523  

Non-Control/Non-Affiliate investments

     25,002     20,737  
​ ​ ​ ​ ​ ​ ​ ​

Interest, fee and dividend income

     47,889     41,875  

Interest, fee and dividend income from marketable securities and idle funds investments

     —     131  
​ ​ ​ ​ ​ ​ ​ ​

Total investment income

     47,889     42,006  

EXPENSES:

              

Interest

     (8,608 )   (8,182 )

Compensation

     (4,430 )   (3,820 )

General and administrative

     (2,940 )   (2,405 )

Share-based compensation

     (2,269 )   (1,589 )

Expenses allocated to the External Investment Manager

     1,524     1,154  
​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     (16,723 )   (14,842 )
​ ​ ​ ​ ​ ​ ​ ​

NET INVESTMENT INCOME

     31,166     27,164  

NET REALIZED GAIN (LOSS):

    
 		    
 		  

Control investments

     (682 )   14,358  

Affiliate investments

     22,930     —  

Non-Control/Non-Affiliate investments

     5,317     818  

Marketable securities and idle funds investments

     —     (1,573 )

SBIC debentures

     (5,217 )   —  
​ ​ ​ ​ ​ ​ ​ ​

Total net realized gain

     22,348     13,603  
​ ​ ​ ​ ​ ​ ​ ​

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

    
 		    
 		  

Portfolio investments

     (22,091 )   (27,529 )

Marketable securities and idle funds investments

     —     1,457  

SBIC debentures

     5,665     (146 )
​ ​ ​ ​ ​ ​ ​ ​

Total net change in unrealized depreciation

     (16,426 )   (26,218 )
​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES:

    
 		    
 		  

Federal and state income, excise and other taxes

     (1,252 )   (370 )

Deferred taxes

     (4,386 )   2,633  
​ ​ ​ ​ ​ ​ ​ ​

Income tax benefit (provision)

     (5,638 )   2,263  
​ ​ ​ ​ ​ ​ ​ ​

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  
$
31,450		  
$
16,812 		 
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  
$
0.57		  
$
0.54 		 
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED

   $ 0.57   $ 0.33  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

DIVIDENDS PAID PER SHARE:

              

Regular monthly dividends

   $ 0.555   $ 0.540  

Supplemental dividends

     —     —  
​ ​ ​ ​ ​ ​ ​ ​

Total dividends

   $ 0.555   $ 0.540  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    
55,125,170		    
50,549,780		  

   

The accompanying notes are an integral part of these consolidated financial statements

2

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

 
   Common Stock    
    
   Accumulated
Net Realized
Gain From
Investments,
Net of Dividends 		  Net Unrealized
Appreciation from
Investments,
Net of Income
Taxes 		   
  
 
    
   Accumulated
Net Investment
Income, Net
of Dividends 		   
  
 
   Number of
Shares 		  Par
Value 		  Additional
Paid-In
Capital 		  Total Net
Asset Value 		 

Balances at December 31, 2015

     50,413,744   $ 504   $ 1,011,467   $ 7,181   $ (49,653 ) $ 101,395   $ 1,070,894  

Public offering of common stock, net of offering costs

    
321,714		    
3		    
9,778		    
—		    
—		    
—		    
9,781		  

Share-based compensation

     —     —     1,589     —     —     —     1,589  

Dividend reinvestment

     113,631     1     3,255     —     —     —     3,256  

Amortization of directors' deferred compensation

     —     —     144     —     —     —     144  

Issuance of restricted stock, net of forfeited shares

     (3,089 )   —     —     —     —     —     —  

Dividends to stockholders

     —     —     —     (27,284 )   —     —     (27,284 )

Cumulative-effect to retained earnings for excess tax benefit

     —     —     —     —     —     1,806     1,806  

Net increase (decrease) resulting from operations

     —     —     —     27,164     13,603     (23,955 )   16,812  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at March 31, 2016

     50,846,000   $ 508   $ 1,026,233   $ 7,061   $ (36,050 ) $ 79,246   $ 1,076,998  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at December 31, 2016

     54,354,857   $ 543   $ 1,143,883   $ 19,033   $ (58,887 ) $ 96,909   $ 1,201,481  

Public offering of common stock, net of offering costs

    
1,035,286		    
11		    
37,700		    
—		    
—		    
—		    
37,711		  

Share-based compensation

     —     —     2,269     —     —     —     2,269  

Purchase of vested stock for employee payroll tax withholding

     (8,964 )   —     (343 )   —     —     —     (343 )

Dividend reinvestment

     48,675     —     1,806     —     —     —     1,806  

Amortization of directors' deferred compensation

     —     —     163     —     —     —     163  

Forfeited shares of terminated employees

     (6,479 )   —     —     —     —     —     —  

Dividends to stockholders

     —     —     —     (11,039 )   (19,564 )   —     (30,603 )

Net increase (decrease) resulting from operations

     —     —     —     25,949     27,565     (22,064 )   31,450  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at March 31, 2017

     55,423,375   $ 554   $ 1,185,478   $ 33,943   $ (50,886 ) $ 74,845   $ 1,243,934  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

   

The accompanying notes are an integral part of these consolidated financial statements

3

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

 
   Three Months Ended
March 31, 		 
 
   2017   2016  

CASH FLOWS FROM OPERATING ACTIVITIES

              

Net increase in net assets resulting from operations

   $ 31,450   $ 16,812  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

              

Investments in portfolio companies

     (186,922 )   (113,945 )

Proceeds from sales and repayments of debt investments in portfolio companies               

     184,487     69,028  

Proceeds from sales and return of capital of equity investments in portfolio companies

     37,041     21,891  

Proceeds from sales and repayments of marketable securities and idle funds investments

     —     559  

Net change in net unrealized depreciation

     16,426     26,218  

Net realized gain

     (22,348 )   (13,603 )

Accretion of unearned income

     (4,703 )   (1,921 )

Payment-in-kind interest

     (1,607 )   (1,303 )

Cumulative dividends

     (877 )   (321 )

Share-based compensation expense

     2,269     1,589  

Amortization of deferred financing costs

     658     644  

Deferred tax (benefit) provision

     4,386     (2,633 )

Changes in other assets and liabilities:

              

Interest receivable and other assets

     (2,175 )   (2,390 )

Interest payable

     (632 )   1,226  

Accounts payable and other liabilities

     (2,284 )   (6,269 )

Deferred fees and other

     597     632  
​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by (used in) operating activities

     55,766     (3,786 )

CASH FLOWS FROM FINANCING ACTIVITIES

    
 		    
 		  

Proceeds from public offering of common stock, net of offering costs

     37,711     9,781  

Dividends paid

     (28,593 )   (23,990 )

Proceeds from issuance of SBIC debentures

     25,400     —  

Repayments of SBIC debentures

     (25,200 )   —  

Proceeds from credit facility

     83,000     70,000  

Repayments on credit facility

     (138,000 )   (55,000 )

Payment of deferred loan costs and SBIC debenture fees

     (616 )   —  

Purchases of vested stock for employee payroll tax withholding

     (343 )   —  

Other

     —     (113 )
​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by (used in) financing activities

     (46,641 )   678  
​ ​ ​ ​ ​ ​ ​ ​

Net increase (decrease) in cash and cash equivalents

     9,125     (3,108 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

     24,480     20,331  
​ ​ ​ ​ ​ ​ ​ ​

CASH AND CASH EQUIVALENTS AT END OF PERIOD

   $ 33,605   $ 17,223  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Supplemental cash flow disclosures:

              

Interest paid

   $ 8,552   $ 6,282  

Taxes paid

   $ 1,677   $ 1,172  

Non-cash financing activities:

              

Shares issued pursuant to the DRIP

   $ 1,806   $ 3,256  

   

The accompanying notes are an integral part of these consolidated financial statements

4

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Control Investments(5)

  

 

  

 

                    

                           

Access Media Holdings, LLC(10)

  

Private Cable Operator

                        

     

5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)

   $ 22,946   $ 22,946   $ 19,470  

     

Preferred Member Units (6,750,000 units; 12% cumulative)

           6,644     220  

     

Member Units (45 units)

           1     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  29,591     19,690  

                           

Ameritech College Operations, LLC

  

For-Profit Nursing and Healthcare College

                        

     

10% Secured Debt (Maturity—November 30, 2019)

     514     514     514  

     

13% Secured Debt (Maturity—November 30, 2019)

     489     489     489  

     

13% Secured Debt (Maturity—January 31, 2020)

     3,025     3,025     3,025  

     

Preferred Member Units (2,936 units)

           6,191     2,810  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  10,219     6,838  

                           

ASC Interests, LLC

  

Recreational and Educational Shooting Facility

                        

     

11% Secured Debt (Maturity—July 31, 2018)

     2,050     2,036     2,050  

     

Member Units (1,500 units)(8)

           1,500     2,740  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  3,536     4,790  

                           

Bond-Coat, Inc.

  

Casing and Tubing Coating Services

                        

     

12% Secured Debt (Maturity—December 28, 2017)

     11,596     11,566     11,596  

     

Common Stock (57,508 shares)

           6,350     7,600  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  17,916     19,196  

                           

Café Brazil, LLC

  

Casual Restaurant Group

                        

     

Member Units (1,233 units)(8)

           1,742     5,900  

                           

CBT Nuggets, LLC

  

Produces and Sells IT Training Certification Videos

                        

     

Member Units (416 units)(8)

           1,300     60,620  

                           

Charps, LLC

  

Pipeline Maintenance and Construction

                        

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—February 3, 2022)(9)

     800     781     781  

     

12% Secured Debt (Maturity—February 3, 2022)

     18,400     18,220     18,220  

     

Preferred Member Units (1,600 units)

           400     400  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  19,401     19,401  

                           

5

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Clad-Rex Steel, LLC

  

Specialty Manufacturer of Vinyl-Clad Metal

                        

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2018)(9)

     400     397     397  

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2021)(9)

     14,080     13,946     13,946  

     

Member Units (717 units)

           7,280     7,280  

     

10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)

     1,198     1,186     1,186  

     

Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)

           210     210  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  23,019     23,019  

                           

CMS Minerals Investments

  

Oil & Gas Exploration & Production

                        

     

Preferred Member Units (CMS Minerals LLC) (458 units)(8)

           2,009     3,271  

     

Member Units (CMS Minerals II, LLC) (100 units)(8)

           3,716     3,120  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  5,725     6,391  

                           

Datacom, LLC

  

Technology and Telecommunications Provider

                        

     

8% Secured Debt (Maturity—May 30, 2017)

     1,080     1,080     1,080  

     

5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)

     11,867     11,811     11,490  

     

Class A Preferred Member Units (15% cumulative)

           1,181     1,419  

     

Class B Preferred Member Units (6,453 units)

           6,030     1,861  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  20,102     15,850  

                           

Gamber-Johnson Holdings, LLC

  

Manufacturer of Ruggedized Computer Mounting Systems

                        

     

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)

     24,080     23,856     24,080  

     

Member Units (8,619 units)(8)

           14,844     22,080  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  38,700     46,160  

                           

Garreco, LLC

  

Manufacturer and Supplier of Dental Products

                        

     

LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 13.15%, Secured Debt (Maturity—March 31, 2020)(9)

     6,025     5,969     5,969  

     

Member Units (1,200 units)

           1,200     1,470  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  7,169     7,439  

                           

6

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

GRT Rubber Technologies LLC

  

Manufacturer of Engineered Rubber Products

                        

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)

     13,065     12,986     13,065  

     

Member Units (5,879 units)(8)

           13,065     20,310  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  26,051     33,375  

                           

Gulf Manufacturing, LLC

  

Manufacturer of Specialty Fabricated Industrial Piping Products

                        

     

9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)

     777     777     777  

     

Member Units (438 units)(8)

           2,980     9,190  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  3,757     9,967  

                           

Gulf Publishing Holdings, LLC

  

Energy Industry Focused Media and Publishing

                        

     

12.5% Secured Debt (Maturity—April 29, 2021)

     10,000     9,915     9,915  

     

Member Units (3,124 units)

           3,124     3,460  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  13,039     13,375  

                           

Harborside Holdings, LLC

  

Real Estate Holding Company

                        

     

Member units (100 units)

           6,056     9,400  

                           

Harrison Hydra-Gen, Ltd.

  

Manufacturer of Hydraulic Generators

                        

     

Common Stock (107,456 shares)(8)

           718     2,800  

                           

Hawthorne Customs and Dispatch Services, LLC

  

Facilitator of Import Logistics, Brokerage, and Warehousing

                        

     

Member Units (500 units)

           589     280  

     

Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)

           1,215     2,040  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  1,804     2,320  

                           

HW Temps LLC

  

Temporary Staffing Solutions

                        

     

LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity July 2, 2020)(9)

     9,976     9,904     9,904  

     

Preferred Member Units (3,200 units)(8)

           3,942     3,940  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  13,846     13,844  

                           

Hydratec, Inc.

  

Designer and Installer of Micro-Irrigation Systems

                        

     

Common Stock (7,095 shares)(8)

           7,095     15,640  

                           

7

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

IDX Broker, LLC

  

Provider of Marketing and CRM Tools for the Real Estate Industry

                        

     

12.5% Secured Debt (Maturity—November 15, 2018)

     10,650     10,610     10,650  

     

Member Units (5,400 units)(8)

           5,606     8,200  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  16,216     18,850  

                           

Indianapolis Aviation Partners, LLC

  

Fixed Base Operator

                        

     

15% Secured Debt (Maturity—April 15, 2017)

     3,100     3,100     3,100  

     

Warrants (1,046 equivalent units)

           1,129     2,710  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  4,229     5,810  

                           

Jensen Jewelers of Idaho, LLC

  

Retail Jewelry Store

                        

     

Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.50%, Secured Debt (Maturity—November 14, 2019)(9)

     3,905     3,850     3,905  

     

Member Units (627 units)(8)

           811     4,460  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  4,661     8,365  

                           

Lamb Ventures, LLC

  

Aftermarket Automotive Services Chain

                        

     

LIBOR Plus 5.75%, Current Coupon 6.56%, Secured Debt (Maturity May 30, 2018)

     305     305     305  

     

11% Secured Debt (Maturity—May 31, 2018)

     7,579     7,579     7,579  

     

Preferred Equity (non-voting)

           400     400  

     

Member Units (742 units)(8)

           5,273     6,190  

     

9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)

     432     428     428  

     

Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)

           625     960  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  14,610     15,862  

                           

Marine Shelters Holdings, LLC

  

Fabricator of Marine and Industrial Shelters

                        

     

12% PIK Secured Debt (Maturity—December 28, 2017)(14)

     3,131     3,078     —  

     

Preferred Member Units (3,810 units)

           5,352     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  8,430     —  

                           

MH Corbin Holding LLC

  

Manufacturer and Distributor of Traffic Safety Products

                        

     

10% Secured Debt (Maturity—August 31, 2020)

     13,125     13,030     13,030  

     

Preferred Member Units (4,000 shares)

           6,000     6,000  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  19,030     19,030  

                           

8

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Mid-Columbia Lumber Products, LLC

  

Manufacturer of Finger-Jointed Lumber Products

                        

     

10% Secured Debt (Maturity—December 18, 2017)

     1,750     1,750     1,750  

     

12% Secured Debt (Maturity—December 18, 2017)

     3,900     3,900     3,900  

     

Member Units (3,554 units)

           1,810     1,980  

     

9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)

     825     825     825  

     

Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)

           790     1,220  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,075     9,675  

                           

MSC Adviser I, LLC(16)

  

Third Party Investment Advisory Services

                        

     

Member Units (Fully diluted 100.0%)(8)

           —     33,472  

                           

Mystic Logistics Holdings, LLC

  

Logistics and Distribution Services Provider for Large Volume Mailers

                        

     

12% Secured Debt (Maturity—August 15, 2019)

     9,164     9,051     9,164  

     

Common Stock (5,873 shares)

           2,720     6,170  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  11,771     15,334  

                           

NAPCO Precast, LLC

  

Precast Concrete Manufacturing

                        

     

Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)

     2,713     2,695     2,713  

     

18% Secured Debt (Maturity—February 1, 2019)

     3,952     3,925     3,952  

     

Member Units (2,955 units)(8)

           2,975     10,920  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,595     17,585  

                           

NRI Clinical Research, LLC

  

Clinical Research Service Provider

                        

     

LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)

     400     400     400  

     

14% Secured Debt (Maturity—September 8, 2017)

     4,261     4,239     4,261  

     

Warrants (251,723 equivalent units)

           252     680  

     

Member Units (500,000 units)

           765     2,462  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  5,656     7,803  

                           

NRP Jones, LLC

  

Manufacturer of Hoses, Fittings and Assemblies

                        

     

8% Current / 4% PIK Secured Debt (Maturity—December 22, 2016)(17)

     14,054     14,054     14,054  

     

Warrants (14,331 equivalent units)

           817     130  

     

Member Units (50,877 units)

           2,900     410  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  17,771     14,594  

                           

9

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

NuStep, LLC

  

Designer, Manufacturer and Distributor of Fitness Equipment

                        

     

12% Secured Debt (Maturity—January 31, 2022)

     20,600     20,394     20,394  

     

Preferred Member Units (406 units)

           10,200     10,200  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  30,594     30,594  

                           

OMi Holdings, Inc.

  

Manufacturer of Overhead Cranes

                        

     

Common Stock (1,500 shares)(8)

           1,080     13,080  

                           

Pegasus Research Group, LLC

  

Provider of Telemarketing and Data Services

                        

     

Member Units (460 units)(8)

           1,290     8,440  

                           

PPL RVs, Inc.

  

Recreational Vehicle Dealer

                        

     

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.05%, Secured Debt (Maturity—November 15, 2021)(9)

     18,000     17,834     17,834  

     

Common Stock (1,962 shares)(8)

           2,150     11,780  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  19,984     29,614  

                           

Principle Environmental, LLC

  

Noise Abatement Service Provider

                        

     

12% Secured Debt (Maturity—April 30, 2017)

     4,060     4,060     4,060  

     

12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)

     3,394     3,394     3,394  

     

Preferred Member Units (19,631 units)

           4,600     6,260  

     

Warrants (1,036 equivalent units)

           1,200     320  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  13,254     14,034  

                           

Quality Lease Service, LLC

  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                        

     

8% PIK Secured Debt (Maturity—June 8, 2020)

     7,204     7,204     7,204  

     

Member Units (1,000 units)

           2,168     4,239  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,372     11,443  

                           

River Aggregates, LLC

  

Processor of Construction Aggregates

                        

     

Zero Coupon Secured Debt (Maturity—June 30, 2018)

     750     646     646  

     

Member Units (1,150 units)(8)

           1,150     4,600  

     

Member Units (RA Properties, LLC) (1,500 units)

           369     2,510  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  2,165     7,756  

                           

10

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

SoftTouch Medical Holdings LLC

  

Provider of In-Home Pediatric Durable Medical Equipment

                        

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)

     7,140     7,099     7,140  

     

Member Units (4,450 units)(8)

           4,930     9,170  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  12,029     16,310  

                           

The MPI Group, LLC

  

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                        

     

9% Secured Debt (Maturity—October 2, 2018)

     2,924     2,922     2,922  

     

Series A Preferred Units (2,500 units; 10% Cumulative)

           2,500     —  

     

Warrants (1,424 equivalent units)

           1,096     —  

     

Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)

           2,300     2,390  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  8,818     5,312  

                           

Uvalco Supply, LLC

  

Farm and Ranch Supply Store

                        

     

9% Secured Debt (Maturity—January 1, 2019)

     756     756     756  

     

Member Units (1,867 units)(8)

           3,579     4,307  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  4,335     5,063  

                           

Vision Interests, Inc.

  

Manufacturer / Installer of Commercial Signage

                        

     

13% Secured Debt (Maturity—December 23, 2018)

     2,814     2,814     2,814  

     

Series A Preferred Stock (3,000,000 shares)

           3,000     3,000  

     

Common Stock (1,126,242 shares)

           3,706     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,520     5,814  

                           

Ziegler's NYPD, LLC

  

Casual Restaurant Group

                        

     

6.5% Secured Debt (Maturity—October 1, 2019)

     1,000     994     994  

     

12% Secured Debt (Maturity—October 1, 2019)

     300     300     300  

     

14% Secured Debt (Maturity—October 1, 2019)

     2,750     2,750     2,750  

     

Warrants (587 equivalent units)

           600     240  

     

Preferred Member Units (10,072 units)

           2,834     4,100  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  7,478     8,384  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal Control Investments (33.3% of total investments at fair value)

   $ 491,749   $ 658,239  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

11

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Affiliate Investments(6)

  

 

  

 

                    

                           

AFG Capital Group, LLC

  

Provider of Rent-to-Own Financing Solutions and Services

                        

     

Warrants (42 equivalent units)

         $ 259   $ 690  

     

Member Units (186 units)(8)

           1,200     2,850  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  1,459     3,540  

                           

Barfly Ventures, LLC(10)

  

Casual Restaurant Group

                        

     

12% Secured Debt (Maturity—August 31, 2020)

     7,796     7,667     7,635  

     

Options (2 equivalent units)

           397     490  

     

Warrant (1 equivalent unit)

           473     280  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  8,537     8,405  

                           

BBB Tank Services, LLC

  

Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market

                        

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—April 8, 2021)(9)

     800     797     797  

     

15% Secured Debt (Maturity—April 8, 2021)

     4,027     3,992     3,992  

     

Member Units (800,000 units)

           800     800  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  5,589     5,589  

                           

Boss Industries, LLC

  

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

                        

     

Preferred Member Units (2,242 units)(8)

           2,473     2,920  

                           

Bridge Capital Solutions Corporation

  

Financial Services and Cash Flow Solutions Provider

                        

     

13% Secured Debt (Maturity—July 25, 2021)

     7,500     5,673     5,673  

     

Warrants (63 equivalent shares)

           2,132     3,370  

     

13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)

     1,000     991     1,000  

     

Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)

           1,000     1,000  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,796     11,043  

                           

Buca C, LLC

  

Casual Restaurant Group

                        

     

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)

     21,204     21,058     21,058  

     

Preferred Member Units (6 units; 6% cumulative)(8)

           3,995     3,990  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  25,053     25,048  

                           

12

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

CAI Software LLC

  

Provider of Specialized Enterprise Resource Planning Software

                        

     

12% Secured Debt (Maturity—October 10, 2019)

     3,483     3,463     3,483  

     

Member Units (65,356 units)(8)

           654     2,580  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  4,117     6,063  

                           

CapFusion, LLC(13)

  

Non-Bank Lender to Small Businesses

                        

     

13% Secured Debt (Maturity—March 25, 2021)

     14,400     13,252     13,252  

     

Warrants (1,600 equivalent units)

           1,200     1,200  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  14,452     14,452  

                           

Chandler Signs Holdings, LLC(10)

  

Sign Manufacturer

                        

     

12% Secured Debt (Maturity—July 4, 2021)

     4,500     4,463     4,500  

     

Class A Units (1,500,000 units)(8)

           1,500     3,240  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  5,963     7,740  

                           

Condit Exhibits, LLC

  

Tradeshow Exhibits / Custom Displays Provider

                        

     

Member Units (3,936 units)(8)

           100     1,840  

                           

Congruent Credit Opportunities Funds(12)(13)

  

Investment Partnership

                        

     

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)

           5,730     1,377  

     

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)

           17,869     18,577  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  23,599     19,954  

                           

Dos Rios Partners(12)(13)

  

Investment Partnership

                        

     

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)

           5,996     5,629  

     

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)

           1,904     1,651  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  7,900     7,280  

                           

Dos Rios Stone Products LLC(10)

  

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                        

     

Class A Units (2,000,000 units)(8)

           2,000     2,070  

                           

East Teak Fine Hardwoods, Inc.

  

Distributor of Hardwood Products

                        

     

Common Stock (6,250 shares)(8)

           480     750  

                           

East West Copolymer & Rubber, LLC

  

Manufacturer of Synthetic Rubbers

                        

     

12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)(14)

     9,699     9,591     2,240  

     

Warrants (2,510,790 equivalent units)

           50     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  9,641     2,240  

                           

13

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

EIG Fund Investments(12)(13)

  

Investment Partnership

                        

     

LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)

           1,565     1,466  

     

LP Interests (EIG Traverse Co-Investment, L.P.) (Fully diluted 22.2%)(8)

           9,805     9,973  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  11,370     11,439  

                           

Freeport Financial Funds(12)(13)

  

Investment Partnership

                        

     

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)

           5,974     5,675  

     

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)

           7,559     7,507  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  13,533     13,182  

                           

Gault Financial, LLC (RMB Capital, LLC)

  

Purchases and Manages Collection of Healthcare and other Business Receivables

                        

     

10.5% Secured Debt (Maturity—January 1, 2019)

     12,900     12,900     11,950  

     

Warrants (29,032 equivalent units)

           400     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  13,300     11,950  

                           

Glowpoint, Inc.

  

Provider of Cloud Managed Video Collaboration Services

                        

     

12% Secured Debt (Maturity—October 18, 2018)

     9,000     8,957     3,010  

     

Common Stock (7,711,517 shares)

           3,958     2,270  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  12,915     5,280  

                           

Guerdon Modular Holdings, Inc.

  

Multi-Family and Commercial Modular Construction Company

                        

     

13% Secured Debt (Maturity—August 13, 2019)

     10,708     10,603     10,603  

     

Preferred Stock (404,998 shares)

           1,140     1,140  

     

Common Stock (212,033 shares)

           2,983     80  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  14,726     11,823  

                           

Hawk Ridge Systems, LLC(13)

  

Value-Added Reseller of Engineering Design and Manufacturing Solutions

                        

     

10% Secured Debt (Maturity—December 2, 2021)

     10,000     9,905     9,905  

     

Preferred Member Units (226 units)(8)

           2,850     2,850  

     

Preferred Member Units (HRS Services, ULC) (226 units)

           150     150  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  12,905     12,905  

                           

Houston Plating and Coatings, LLC

  

Provider of Plating and Industrial Coating Services

                        

     

Member Units (265,756 units)

           1,429     4,230  

                           

I-45 SLF LLC(12)(13)

  

Investment Partnership

                        

     

Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)

           15,200     15,907  

                           

14

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Indianhead Pipeline Services, LLC

  

Provider of Pipeline Support Services

                        

     

12% Secured Debt (Maturity—February 6, 2018)

     5,417     5,417     5,417  

     

Preferred Member Units (33,819 units; 8% cumulative)(8)

           2,437     2,775  

     

Warrants (31,928 equivalent units)

           459     —  

     

Member Units (14,732 units)

           1     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  8,314     8,192  

                           

KBK Industries, LLC

  

Manufacturer of Specialty Oilfield and Industrial Products

                        

     

10% Secured Debt (Maturity—September 28, 2017)

     1,175     1,175     1,175  

     

12.5% Secured Debt (Maturity—September 28, 2017)

     5,900     5,892     5,892  

     

Member Units (250 units)

           341     2,780  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  7,408     9,847  

                           

L.F. Manufacturing Holdings, LLC(10)

  

Manufacturer of Fiberglass Products

                        

     

Member Units (2,179,001 units)

           2,019     1,380  

                           

OnAsset Intelligence, Inc.

  

Provider of Transportation Monitoring / Tracking Products and Services

                        

     

12% PIK Secured Debt (Maturity—December 31, 2015)(17)

     4,654     4,654     4,654  

     

Preferred Stock (912 shares; 7% cumulative)

           1,981     —  

     

Warrants (5,333 equivalent shares)

           1,919     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  8,554     4,654  

                           

OPI International Ltd.(13)

  

Provider of Man Camp and Industrial Storage Services

                        

     

10% Unsecured Debt (Maturity—April 8, 2018)

     473     473     473  

     

Common Stock (20,766,317 shares)

           1,371     380  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  1,844     853  

                           

PCI Holding Company, Inc.

  

Manufacturer of Industrial Gas Generating Systems

                        

     

12% Secured Debt (Maturity—March 31, 2019)

     13,000     12,908     13,000  

     

Preferred Stock (1,500,000 shares; 20% cumulative)(8)

           3,551     5,540  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  16,459     18,540  

                           

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)

  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                        

     

12% Secured Debt (Maturity—January 8, 2018)(14)(15)

     30,785     30,281     250  

     

Preferred Member Units (250 units)

           2,500     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  32,781     250  

                           

15

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Tin Roof Acquisition Company

  

Casual Restaurant Group

                        

     

12% Secured Debt (Maturity—November 13, 2018)

     13,342     13,232     13,232  

     

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)

           2,807     2,807  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  16,039     16,039  

                           

UniTek Global Services, Inc.(11)

  

Provider of Outsourced Infrastructure Services

                        

     

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)

     5,021     5,011     5,021  

     

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)

     826     826     826  

     

15% PIK Unsecured Debt (Maturity—July 13, 2019)

     773     773     773  

     

Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)

           6,248     6,620  

     

Common Stock (705,054 shares)

           —     2,810  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  12,858     16,050  

                           

Universal Wellhead Services Holdings, LLC(10)

  

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

                        

     

Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)

           717     720  

     

Member Units (UWS Investments, LLC) (4,000,000 units)

           4,000     610  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  4,717     1,330  

                           

Valley Healthcare Group, LLC

  

Provider of Durable Medical Equipment

                        

     

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.28%, Secured Debt (Maturity—December 29, 2020)(9)

     12,856     12,750     12,750  

     

Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)

           1,600     1,600  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  14,350     14,350  

                           

Volusion, LLC

  

Provider of Online Software-as-a-Service eCommerce Solutions

                        

     

11.5% Secured Debt (Maturity—January 26, 2020)

     17,500     15,439     15,439  

     

Preferred Member Units (4,876,670 units)

           14,000     14,000  

     

Warrants (1,831,355 equivalent units)

           2,576     2,450  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                  32,015     31,889  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal Affiliate Investments (16.6% of total investments at fair value)

   $ 373,895   $ 329,024  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

16

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
   Business Description
   Type of Investment(2)(3)
   Principal(4)
   Cost(4)
   Fair Value
  
   

Non-Control/Non-Affiliate Investments(7)

              

                           

Adams Publishing Group, LLC(10)

  

Local Newspaper Operator

                        

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 3, 2020)(9)

   $ 7,589   $ 7,478   $ 7,589  

                           

ADS Tactical, Inc.(10)

  

Value-Added Logistics and Supply Chain Provider to the Defense Industry

                        

     

LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 8.50%, Secured Debt (Maturity—December 31, 2022)(9)

     11,500     11,258     11,258  

                           

Ahead, LLC(10)

  

IT Infrastructure Value Added Reseller

                        

     

LIBOR Plus 6.50%, Current Coupon 7.65%, Secured Debt (Maturity—November 2, 2020)

     14,063     13,742     13,922  

                           

Allflex Holdings III Inc.(11)

  

Manufacturer of Livestock Identification Products