Use these links to rapidly review the document
TABLE OF CONTENTS

Table of Contents

 

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, 2019

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)

        Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class   Trading Symbol   Name of Each Exchange on Which
Registered
Common Stock, par value $0.01 per share   MAIN   New York Stock Exchange

        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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit 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.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o   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 9, 2019 was 62,715,187.

   

Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

  

Consolidated Financial Statements

    

 

Consolidated Balance Sheets—March 31, 2019 (unaudited) and December 31, 2018

   1

 

Consolidated Statements of Operations (unaudited)—Three months ended March 31, 2019 and 2018

   2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, 2019 and 2018

   3

 

Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, 2019 and 2018

   4

 

Consolidated Schedule of Investments (unaudited)—March 31, 2019

   5

 

Consolidated Schedule of Investments—December 31, 2018

   32

 

Notes to Consolidated Financial Statements (unaudited)

   58

 

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Three months ended March 31, 2019 and 2018

   101

Item 2.

  

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

   111

Item 3.

  

Quantitative and Qualitative Disclosures about Market Risk

   132

Item 4.

  

Controls and Procedures

   132


PART II
OTHER INFORMATION

Item 1.

  

Legal Proceedings

   133

Item 1A.

  

Risk Factors

   133

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

   133

Item 6.

  

Exhibits

   133

 

Signatures

   134

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

 
   March 31,
2019 		  December 31,
2018 		 
 
   (Unaudited)
    
  

ASSETS

              

  

              

Investments at fair value:

              

Control investments (cost: $751,106 and $750,618 as of March 31, 2019 and December 31, 2018, respectively)

   $ 1,009,757   $ 1,004,993  

Affiliate investments (cost: $379,117 and $381,307 as of March 31, 2019 and December 31, 2018, respectively)

     360,752     359,890  

Non-Control/Non-Affiliate investments (cost: $1,169,595 and $1,137,108 as of March 31, 2019 and December 31, 2018, respectively)

     1,126,082     1,089,026  
​ ​ ​ ​ ​ ​ ​ ​

Total investments (cost: $2,299,818 and $2,269,033 as of March 31, 2019 and December 31, 2018, respectively)

     2,496,591     2,453,909  

  

              

Cash and cash equivalents

     47,368     54,181  

Interest receivable and other assets

     45,793     39,674  

Receivable for securities sold

     921     1,201  

Deferred financing costs (net of accumulated amortization of $6,797 and $6,562 as of March 31, 2019 and December 31, 2018, respectively)

    4,226     4,461  
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 2,594,899   $ 2,553,426  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

LIABILITIES

              

Credit facility

  
$
340,000		  
$
301,000		  

SBIC debentures (par: $321,800 ($10,000 due within one year) and $345,800 as of March 31, 2019 and December 31, 2018, respectively)

     314,702     338,186  

4.50% Notes due 2022 (par: $185,000 as of both March 31, 2019 and December 31, 2018)

     182,774     182,622  

4.50% Notes due 2019 (par: $175,000 as of both March 31, 2019 and December 31, 2018)

     174,518     174,338  

Accounts payable and other liabilities

     18,343     17,962  

Payable for securities purchased

     3,190     28,254  

Interest payable

     6,743     6,041  

Dividend payable

     12,445     11,948  

Deferred tax liability, net

     19,687     17,026  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

     1,072,402     1,077,377  

  

              

Commitments and contingencies (Note K)

              

NET ASSETS

    
 		    
 		  

Common stock, $0.01 par value per share (150,000,000 shares authorized; 62,344,895 and 61,264,861 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively)

    
624		    
613		  

Additional paid-in capital

     1,451,530     1,409,945  

Total undistributed earnings

     70,343     65,491  
​ ​ ​ ​ ​ ​ ​ ​

Total net assets

     1,522,497     1,476,049  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities and net assets

   $ 2,594,899   $ 2,553,426  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

NET ASSET VALUE PER SHARE

   $ 24.41   $ 24.09  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

   

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, 		 
 
   2019   2018  

INVESTMENT INCOME:

              

Interest, fee and dividend income:

              

Control investments

   $ 23,691   $ 21,955  

Affiliate investments

     9,071     9,071  

Non-Control/Non-Affiliate investments

     28,603     24,916  
​ ​ ​ ​ ​ ​ ​ ​

Total investment income

     61,365     55,942  

EXPENSES:

              

Interest

     (11,916 )   (10,265 )

Compensation

     (6,069 )   (5,491 )

General and administrative

     (3,203 )   (2,974 )

Share-based compensation

     (2,329 )   (2,303 )

Expenses allocated to the External Investment Manager

     1,643     2,066  
​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     (21,874 )   (18,967 )
​ ​ ​ ​ ​ ​ ​ ​

NET INVESTMENT INCOME

     39,491     36,975  

NET REALIZED GAIN (LOSS):

    
 		    
 		  

Control investments

     (187 )   13,094  

Affiliate investments

     (3,241 )   —  

Non-Control/Non-Affiliate investments

     (2,305 )   (5,634 )

Realized loss on extinguishment of debt

     (5,689 )   (1,374 )
​ ​ ​ ​ ​ ​ ​ ​

Total net realized gain (loss)

     (11,422 )   6,086  
​ ​ ​ ​ ​ ​ ​ ​

NET UNREALIZED APPRECIATION (DEPRECIATION):

              

Control investments

     4,946     (22,974 )

Affiliate investments

     2,376     14,238  

Non-Control/Non-Affiliate investments

     3,902     (2,146 )

SBIC debentures

     5,177     1,359  
​ ​ ​ ​ ​ ​ ​ ​

Total net unrealized appreciation (depreciation)

     16,401     (9,523 )
​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES:

              

Federal and state income, excise and other taxes

     (702 )   (887 )

Deferred taxes

     (2,367 )   1,866  
​ ​ ​ ​ ​ ​ ​ ​

Income tax benefit (provision)

     (3,069 )   979  
​ ​ ​ ​ ​ ​ ​ ​

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 41,401   $ 34,517  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

   $ 0.64   $ 0.63  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

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

   $ 0.67   $ 0.59  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

     61,864,688     58,852,252  

   

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    
    
    
  
 
   Number
of Shares 		  Par
Value 		  Additional
Paid-In
Capital 		  Total
Undistributed
Earnings 		  Total Net
Asset Value 		 

Balances at December 31, 2017

     58,660,680   $ 586   $ 1,310,780   $ 69,002   $ 1,380,368  

Public offering of common stock, net of offering costs

    
309,895		    
4		    
11,332		    
—		    
11,336		  

Share-based compensation

     —     —     2,303     —     2,303  

Purchase of vested stock for employee payroll tax withholding

     (5,392 )   —     (212 )   —     (212 )

Dividend reinvestment

     42,423     —     1,589     —     1,589  

Amortization of directors' deferred compensation

     —     —     206     —     206  

Issuance of restricted stock

     124     —     —     —     —  

Dividends to stockholders

     —     —     —     (33,507 )   (33,507 )

Net increase resulting from operations

     —     —     —     34,517     34,517  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at March 31, 2018

     59,007,730   $ 590   $ 1,325,998   $ 70,012   $ 1,396,600  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at December 31, 2018

     61,264,861   $ 613   $ 1,409,945   $ 65,491   $ 1,476,049  

Public offering of common stock, net of offering costs

    
960,684		    
9		    
35,376		    
—		    
35,385		  

Share-based compensation

     —     —     2,329     —     2,329  

Dividend reinvestment

     96,189     1     3,595     —     3,596  

Amortization of directors' deferred compensation

     —     —     216     —     216  

Issuance of restricted stock

     52,043     1     (1 )   —     —  

Dividends to stockholders

     —     —     70     (36,549 )   (36,479 )

Net increase resulting from operations

     —     —     —     41,401     41,401  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balances at March 31, 2019

     62,373,777   $ 624   $ 1,451,530   $ 70,343   $ 1,522,497  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

   

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, 		 
 
   2019   2018  

CASH FLOWS FROM OPERATING ACTIVITIES

              

Net increase in net assets resulting from operations

   $ 41,401   $ 34,517  

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:

              

Investments in portfolio companies

     (128,460 )   (340,405 )

Proceeds from sales and repayments of debt investments in portfolio companies

     58,704     133,835  

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

     12,069     32,268  

Net unrealized (appreciation) depreciation

     (16,401 )   9,523  

Net realized (gain) loss

     11,422     (6,086 )

Accretion of unearned income

     (2,375 )   (3,238 )

Payment-in-kind interest

     (1,183 )   (576 )

Cumulative dividends

     (661 )   (562 )

Share-based compensation expense

     2,329     2,303  

Amortization of deferred financing costs

     821     881  

Deferred tax (benefit) provision

     2,367     (1,866 )

Changes in other assets and liabilities:

              

Interest receivable and other assets

     (6,478 )   (3,467 )

Interest payable

     702     3,237  

Accounts payable and other liabilities

     597     (4,913 )

Deferred fees and other

     584     1,392  
​ ​ ​ ​ ​ ​ ​ ​

Net cash used in operating activities

     (24,562 )   (143,157 )

CASH FLOWS FROM FINANCING ACTIVITIES

    
 		    
 		  

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

     35,385     11,336  

Dividends paid

     (32,386 )   (31,872 )

Proceeds from issuance of SBIC debentures

     —     22,000  

Repayments of SBIC debentures

     (24,000 )   (4,000 )

Proceeds from credit facility

     94,000     194,000  

Repayments on credit facility

     (55,000 )   (70,000 )

Payment of deferred issuance costs and SBIC debenture fees

     (250 )   (533 )

Purchases of vested stock for employee payroll tax withholding

     —     (212 )
​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by financing activities

     17,749     120,719  
​ ​ ​ ​ ​ ​ ​ ​

Net decrease in cash and cash equivalents

     (6,813 )   (22,438 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

     54,181     51,528  
​ ​ ​ ​ ​ ​ ​ ​

CASH AND CASH EQUIVALENTS AT END OF PERIOD

   $ 47,368   $ 29,090  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Supplemental cash flow disclosures:

              

Interest paid

   $ 10,362   $ 6,116  

Taxes paid

   $ 1,340   $ 3,320  

Operating non-cash activities:

              

Right-of-use assets obtained in exchange for operating lease liabilities

   $ 5,240   $ —  

Non-cash financing activities:

              

Shares issued pursuant to the DRIP

   $ 3,596   $ 1,589  

   

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, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Control Investments(5)

      

 

  

 

                    

                               

Access Media Holdings, LLC(10)

   July 22, 2015  

Private Cable Operator

                        

         

10% PIK Secured Debt (Maturity—July 22, 2020)(14)(19)

   $ 23,828   $ 23,828   $ 7,603  

         

Preferred Member Units (9,481,500 units)(27)

           9,375     (284 )

         

Member Units (45 units)

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

                      33,204     7,319  

                               

ASC Interests, LLC

   August 1, 2013  

Recreational and Educational Shooting Facility

                        

         

11% Secured Debt (Maturity—July 31, 2020)

     1,650     1,626     1,626  

         

Member Units (1,500 units)

           1,500     1,290  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      3,126     2,916  

                               

ATS Workholding, LLC(10)

   March 10, 2014  

Manufacturer of Machine Cutting Tools and Accessories

                        

         

5% Secured Debt (Maturity—November 16, 2021)

     4,835     4,492     4,484  

         

Preferred Member Units (3,725,862 units)

           3,726     3,726  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      8,218     8,210  

                               

Bond-Coat, Inc.

   December 28, 2012  

Casing and Tubing Coating Services

                        

         

12% Secured Debt (Maturity—December 28, 2020)

     11,596     11,393     11,393  

         

Common Stock (57,508 shares)

           6,350     6,890  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      17,743     18,283  

                               

Brewer Crane Holdings, LLC

   January 9, 2018  

Provider of Crane Rental and Operating Services

                        

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.49%, Secured Debt (Maturity—January 9, 2023)(9)

     9,424     9,347     9,347  

         

Preferred Member Units (2,950 units)(8)

           4,280     4,280  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      13,627     13,627  

Café Brazil, LLC

   April 20, 2004  

Casual Restaurant Group

                        

         

Member Units (1,233 units)(8)

           1,742     4,180  

                               

California Splendor Holdings LLC

   March 30, 2018  

Processor of Frozen Fruits

                        

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.88%, Secured Debt (Maturity—March 30, 2023)(9)

     8,091     7,937     7,937  

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.88%, Secured Debt (Maturity—March 30, 2023)(9)

     28,000     27,766     27,766  

         

Preferred Member Units (6,157 units)(8)

           10,775     7,382  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      46,478     43,085  

                               

CBT Nuggets, LLC

   June 1, 2006  

Produces and Sells IT Training Certification Videos

                        

         

Member Units (416 units)(8)

           1,300     60,630  

                               

5

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Centre Technologies Holdings, LLC

   January 4, 2019  

Provider of IT Hardware Services and Software Solutions

                        

         

LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity—January 4, 2024)(9)

     12,240     12,122     12,122  

         

Preferred Member Units (12,696 units)

           5,840     5,840  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      17,962     17,962  

                               

Chamberlin Holding LLC

   February 26, 2018  

Roofing and Waterproofing Specialty Contractor

                        

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity—February 26, 2023)(9)

     20,203     20,036     20,036  

         

Member Units (4,347 units)(8)

           11,440     21,120  

         

Member Units (Chamberlin Langfield Real Estate, LLC) (732,160 units)

           732     732  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      32,208     41,888  

                               

Charps, LLC

   February 3, 2017  

Pipeline Maintenance and Construction

                        

         

11.50% Secured Debt (Maturity—February 3, 2022)

     11,233     11,149     11,222  

         

Preferred Member Units (1,600 units)(8)

           400     3,750  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      11,549     14,972  

                               

Clad-Rex Steel, LLC

   December 20, 2016  

Specialty Manufacturer of Vinyl-Clad Metal

                        

         

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity—December 20, 2021)(9)

     12,080     12,006     12,080  

         

Member Units (717 units)(8)

           7,280     10,610  

         

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

     1,156     1,144     1,156  

         

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

           210     350  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      20,640     24,196  

                               

CMS Minerals Investments

   January 30, 2015  

Oil & Gas Exploration & Production

                        

         

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

           2,581     2,454  

                               

CompareNetworks Topco, LLC

   January 29, 2019  

Internet Publishing and Web Search Portals

                        

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—January 29, 2021)(9)

     250     241     241  

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—January 29, 2024)(9)

     8,750     8,666     8,666  

         

Preferred Member Units (1,975 units)

           1,975     1,975  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      10,882     10,882  

                               

Copper Trail Fund Investments(12)(13)

   July 17, 2017  

Investment Partnership

                        

         

LP Interests (CTMH, LP) (Fully diluted 38.8%)

           872     872  

                               

6

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Datacom, LLC

   May 30, 2014  

Technology and Telecommunications Provider

                        

         

8% Secured Debt (Maturity—May 30, 2019)(14)

     1,800     1,800     1,690  

         

10.50% PIK Secured Debt (Maturity—May 30, 2019)(14)(19)

     12,511     12,479     9,786  

         

Class A Preferred Member Units

           1,294     —  

         

Class B Preferred Member Units (6,453 units)

           6,030     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      21,603     11,476  

                               

Digital Products Holdings LLC

   April 1, 2018  

Designer and Distributor of Consumer Electronics

                        

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity—April 1, 2023)(9)

     25,410     25,194     25,194  

         

Preferred Member Units (3,451 shares)(8)

           8,466     7,965  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      33,660     33,159  

                               

Direct Marketing Solutions, Inc.

   February 13, 2018  

Provider of Omni-Channel Direct Marketing Services

                        

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity—February 13, 2023)(9)

     17,782     17,622     17,622  

         

Preferred Stock (8,400 shares)

           8,400     16,150  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      26,022     33,772  

                               

Gamber-Johnson Holdings, LLC

   June 24, 2016  

Manufacturer of Ruggedized Computer Mounting Systems

                        

         

LIBOR Plus 7.50% (Floor 2.00%), Current Coupon 9.99%, Secured Debt (Maturity—June 24, 2021)(9)

     20,622     20,508     20,622  

         

Member Units (8,619 units)(8)

           14,844     45,460  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      35,352     66,082  

                               

Garreco, LLC

   July 15, 2013  

Manufacturer and Supplier of Dental Products

                        

         

LIBOR Plus 8.00% (Floor 1.00%, Ceiling 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—March 31, 2020)(9)

     4,760     4,743     4,743  

         

Member Units (1,200 units)

           1,200     2,500  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      5,943     7,243  

                               

GRT Rubber Technologies LLC

   December 19, 2014  

Manufacturer of Engineered Rubber Products

                        

         

LIBOR Plus 7.00%, Current Coupon 9.49%, Secured Debt (Maturity—December 31, 2023)

     11,498     11,480     11,498  

         

Member Units (5,879 units)(8)

           13,065     41,290  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      24,545     52,788  

                               

7

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Guerdon Modular Holdings, Inc.

   August 13, 2014  

Multi-Family and Commercial Modular Construction Company

                        

         

13% Secured Debt (Maturity—May 31, 2019)

     12,588     12,588     12,018  

         

Preferred Stock (404,998 shares)

           1,140     —  

         

Common Stock (212,033 shares)

           2,983     —  

         

Warrants (6,208,877 equivalent shares; Expiration—April 25, 2028; Strike price—$0.01 per share)

           —     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      16,711     12,018  

                               

Gulf Manufacturing, LLC

   August 31, 2007  

Manufacturer of Specialty Fabricated Industrial Piping Products

                        

         

Member Units (438 units)(8)

           2,980     11,690  

                               

Gulf Publishing Holdings, LLC

   April 29, 2016  

Energy Industry Focused Media and Publishing

                        

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.99%, Secured Debt (Maturity—September 30, 2020)(9)

     80     80     80  

         

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

     12,535     12,472     12,472  

         

Member Units (3,681 units)

           3,681     4,330  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      16,233     16,882  

                               

Harborside Holdings, LLC

   March 20, 2017  

Real Estate Holding Company

                        

         

Member units (100 units)

           6,406     9,530  

                               

Harris Preston Fund Investments(12)(13)

   October 1, 2017  

Investment Partnership

                        

         

LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)

           2,235     2,328  

                               

Harrison Hydra-Gen, Ltd.

   June 4, 2010  

Manufacturer of Hydraulic Generators

                        

         

Common Stock (107,456 shares)(8)

           718     8,600  

                               

IDX Broker, LLC

   November 15, 2013  

Provider of Marketing and CRM Tools for the Real Estate Industry

                        

         

11.5% Secured Debt (Maturity—November 15, 2020)

     14,200     14,123     14,200  

         

Preferred Member Units (5,607 units)(8)

           5,952     14,420  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      20,075     28,620  

                               

Jensen Jewelers of Idaho, LLC

   November 14, 2006  

Retail Jewelry Store

                        

         

Prime Plus 6.75% (Floor 2.00%), Current Coupon 12.25%, Secured Debt (Maturity—November 14, 2019)(9)

     3,205     3,192     3,205  

         

Member Units (627 units)(8)

           811     5,380  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      4,003     8,585  

                               

KBK Industries, LLC

   January 23, 2006  

Manufacturer of Specialty Oilfield and Industrial Products

                        

         

Member Units (325 units)(8)

           783     10,740  

                               

8

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Kickhaefer Manufacturing Company, LLC

   October 31, 2018  

Precision Metal Parts Manufacturing

                        

         

11.5% Secured Debt (Maturity—October 31, 2023)

     28,000     27,723     27,723  

         

Member Units (581 units)

           12,240     12,240  

         

9.0% Secured Debt (Maturity—October 31, 2048)

     3,999     3,959     3,959  

         

Member Units (KMC RE Investor, LLC) (800 units)(8)

           992     992  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      44,914     44,914  

                               

Lamb Ventures, LLC

   May 30, 2008  

Aftermarket Automotive Services Chain

                        

         

Libor Plus 5.75%, Current Coupon 8.23%, Secured Debt (Maturity—July 1, 2019)

     200     199     200  

         

11% Secured Debt (Maturity—July 1, 2022)

     11,839     11,809     11,839  

         

Preferred Stock (non-voting)

           400     400  

         

Member Units (742 units)

           5,663     11,550  

         

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

     432     428     432  

         

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

           625     630  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      19,124     25,051  

                               

Market Force Information, LLC

   July 28, 2017  

Provider of Customer Experience Management Services

                        

         

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.63%, Secured Debt (Maturity—July 28, 2022)(9)

     560     560     560  

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.63%, Secured Debt (Maturity—July 28, 2022)(9)

     22,800     22,634     22,634  

         

Member Units (657,113 units)

           14,700     11,190  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      37,894     34,384  

                               

MH Corbin Holding LLC

   August 31, 2015  

Manufacturer and Distributor of Traffic Safety Products

                        

         

5% Current / 5% PIK Secured Debt (Maturity—March 15, 2022)(19)

     8,557     8,461     8,557  

         

Preferred Member Units (66,000 shares)

           4,400     4,770  

         

Preferred Member Units (4,000 shares)

           6,000     20  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      18,861     13,347  

                               

Mid-Columbia Lumber Products, LLC

   December 18, 2006  

Manufacturer of Finger-Jointed Lumber Products

                        

         

10% Secured Debt (Maturity—January 15, 2020)

     1,750     1,747     1,747  

         

12% Secured Debt (Maturity—January 15, 2020)

     3,900     3,884     3,884  

         

Member Units (7,874 units)

           3,001     2,770  

         

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

     734     734     734  

         

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

           790     1,470  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      10,156     10,605  

                               

9

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

MSC Adviser I, LLC(16)

   November 22, 2013  

Third Party Investment Advisory Services

                        

         

Member Units (Fully diluted 100.0%)(8)

           —     65,820  

                               

Mystic Logistics Holdings, LLC

   August 18, 2014  

Logistics and Distribution Services Provider for Large Volume Mailers

                        

         

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

     7,506     7,488     7,488  

         

Common Stock (5,873 shares)

           2,720     710  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      10,208     8,198  

                               

NAPCO Precast, LLC

   January 31, 2008  

Precast Concrete Manufacturing

                        

         

Member Units (2,955 units)(8)

           2,975     14,330  

                               

NexRev LLC

   February 28, 2018  

Provider of Energy Efficiency Products & Services

                        

         

11% Secured Debt (Maturity—February 28, 2023)

     17,440     17,296     17,296  

         

Preferred Member Units (86,400,000 units)(8)

           6,880     6,880  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      24,176     24,176  

                               

NRI Clinical Research, LLC

   September 8, 2011  

Clinical Research Service Provider

                        

         

LIBOR Plus 6.75% (Floor 1.50%), Current Coupon 8.98%, Secured Debt (Maturity—June 8, 2020)(9)

     200     200     200  

         

14% Secured Debt (Maturity—June 8, 2022)

     6,685     6,553     6,685  

         

Warrants (251,723 equivalent units; Expiration—June 8, 2027; Strike price—$0.01 per unit)

           252     700  

         

Member Units (1,454,167 units)

           765     2,678  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      7,770     10,263  

                               

NRP Jones, LLC

   December 22, 2011  

Manufacturer of Hoses, Fittings and Assemblies

                        

         

12% Secured Debt (Maturity—March 20, 2023)

     6,376     6,376     6,376  

         

Member Units (65,962 units)

           3,717     6,260  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      10,093     12,636  

                               

NuStep, LLC

   January 31, 2017  

Designer, Manufacturer and Distributor of Fitness Equipment

                        

         

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

     20,600     20,468     20,468  

         

Preferred Member Units (406 units)

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

                      30,668     30,668  

                               

OMi Holdings, Inc.

   April 1, 2008  

Manufacturer of Overhead Cranes

                        

         

Common Stock (1,500 shares)(8)

           1,080     16,340  

                               

Pegasus Research Group, LLC

   January 6, 2011  

Provider of Telemarketing and Data Services

                        

         

Member Units (460 units)

           1,290     7,280  

                               

PPL RVs, Inc.

   June 10, 2010  

Recreational Vehicle Dealer

                        

         

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 9.80%, Secured Debt (Maturity—November 15, 2021)(9)

     15,100     15,013     15,013  

         

Common Stock (1,962 shares)

           2,150     9,050  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      17,163     24,063  

                               

10

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Principle Environmental, LLC
(d/b/a TruHorizon
Environmental Solutions)

   February 1, 2011  

Noise Abatement Service Provider

                        

         

13% Secured Debt (Maturity—April 30, 2020)

     6,397     6,340     6,397  

         

Preferred Member Units (19,631 units)(8)

           4,600     15,720  

         

Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)

           1,200     950  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      12,140     23,067  

                               

Quality Lease Service, LLC

   June 8, 2015  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                        

         

Zero Coupon Secured Debt (Maturity—June 8, 2021)

     7,341     7,341     6,450  

         

Member Units (1,000 units)

           4,213     3,980  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      11,554     10,430  

                               

River Aggregates, LLC

   March 30, 2011  

Processor of Construction Aggregates

                        

         

Zero Coupon Secured Debt (Maturity—June 30, 2018)(17)

     750     750     722  

         

Member Units (1,150 units)

           1,150     4,610  

         

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

           369     2,930  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      2,269     8,262  

                               

Tedder Industries, LLC

   August 31, 2018  

Manufacturer of Firearm Holsters and Accessories

                        

         

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

     480     480     480  

         

12% Secured Debt (Maturity—August 31, 2023)

     16,400     16,252     16,252  

         

Preferred Member Units (440 units)

           7,476     7,476  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      24,208     24,208  

                               

The MPI Group, LLC

   October 2, 2007  

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                        

         

9% Secured Debt (Maturity—October 2, 2019)

     2,924     2,924     2,685  

         

Series A Preferred Units (2,500 units)

           2,500     330  

         

Warrants (1,424 equivalent units; Expiration—July 1, 2024; Strike price—$0.01 per unit)

           1,096     —  

         

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

           2,300     2,480  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      8,820     5,495  

                               

Vision Interests, Inc.

   June 5, 2007  

Manufacturer / Installer of Commercial Signage

                        

         

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

     2,028     2,028     2,028  

         

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

           3,000     3,740  

         

Common Stock (1,126,242 shares)

           3,706     279  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      8,734     6,047  

                               

11

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Ziegler's NYPD, LLC

   October 1, 2008  

Casual Restaurant Group

                        

         

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

     1,000     999     1,000  

         

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

     425     425     425  

         

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

     2,750     2,750     2,750  

         

Warrants (587 equivalent units; Expiration—October 1, 2019; Strike price—$0.01 per unit)

           600     —  

         

Preferred Member Units (10,072 units)

           2,834     1,009  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      7,608     5,184  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal Control Investments (66.3% of net assets at fair value)

   $ 751,106   $ 1,009,757  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

12

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Affiliate Investments(6)

      

 

  

 

                    

                               

AFG Capital Group, LLC

   November 7, 2014  

Provider of Rent-to-Own Financing Solutions and Services

                        

         

Warrants (42 equivalent units; Expiration—November 7, 2024; Strike price—$0.01 per unit)

         $ 259   $ 1,040  

         

Preferred Member Units (186 units)(8)

           1,200     4,370  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      1,459     5,410  

                               

American Trailer Rental Group LLC

   June 7, 2017  

Provider of Short-term Trailer and Container Rental

                        

         

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 10.04%, Secured Debt (Maturity—June 7, 2022)(9)

     24,240     24,046     24,046  

         

Member Units (Milton Meisler Holdings LLC) (48,555 units)

           4,855     6,720  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      28,901     30,766  

                               

Barfly Ventures, LLC(10)

   August 31, 2015  

Casual Restaurant Group

                        

         

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

     10,185     10,047     10,026  

         

Options (3 equivalent units)

           607     940  

         

Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)

           473     410  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      11,127     11,376  

                               

BBB Tank Services, LLC

   April 8, 2016  

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

                        

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.49%, (Maturity—April 8, 2021)(9)

     4,400     4,249     4,249  

         

Preferred Stock (non-voting)(8)

           118     118  

         

Member Units (800,000 units)

           800     230  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      5,167     4,597  

                               

Boccella Precast Products LLC

   June 30, 2017  

Manufacturer of Precast Hollow Core Concrete

                        

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.80%, Secured Debt (Maturity—June 30, 2022)(9)

     15,724     15,524     15,724  

         

Member Units (2,160,000 units)(8)

           2,160     4,910  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      17,684     20,634  

                               

13

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

Bridge Capital Solutions Corporation

   April 18, 2012  

Financial Services and Cash Flow Solutions Provider

                        

         

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

     7,500     6,317     6,317  

         

Warrants (82 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)

           2,132     3,760  

         

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

     1,000     995     1,000  

         

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

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

                      10,444     12,077  

                               

Buca C, LLC

   June 30, 2015  

Casual Restaurant Group

                        

         

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.73%, Secured Debt (Maturity—June 30, 2020)(9)

     19,004     18,948     18,948  

         

Preferred Member Units (6 units; 6% cumulative)(8)(19)

           4,495     4,495  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      23,443     23,443  

                               

CAI Software LLC

   October 10, 2014  

Provider of Specialized Enterprise Resource Planning Software

                        

         

12% Secured Debt (Maturity—December 7, 2023)

     10,880     10,767     10,880  

         

Member Units (66,968 units)(8)

           751     2,717  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      11,518     13,597  

                               

Chandler Signs Holdings, LLC(10)

   January 4, 2016  

Sign Manufacturer

                        

         

12% Current / 1% PIK Secured Debt (Maturity—July 4, 2021)(19)

     4,557     4,535     4,557  

         

Class A Units (1,500,000 units)(8)

           1,500     2,120  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      6,035     6,677  

                               

Charlotte Russe, Inc(11)

   May 28, 2013  

Fast-Fashion Retailer to Young Women

                        

         

Common Stock (19,041 shares)

           3,141     —  

                               

Condit Exhibits, LLC

   July 1, 2008  

Tradeshow Exhibits / Custom Displays Provider

                        

         

Member Units (3,936 units)(8)

           100     1,950  

                               

Congruent Credit Opportunities Funds(12)(13)

   January 24, 2012  

Investment Partnership

                        

         

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

           5,210     855  

         

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

           16,959     17,645  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      22,169     18,500  

                               

Copper Trail Fund Investments(12)(13)

   July 17, 2017  

Investment Partnership

                        

         

LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%)(8)

           3,306     3,930  

                               

Dos Rios Partners(12)(13)

   April 25, 2013  

Investment Partnership

                        

         

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

           5,846     7,024  

         

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

           1,856     2,230  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      7,702     9,254  

                               

14

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

East Teak Fine Hardwoods, Inc.

   April 13, 2006  

Distributor of Hardwood Products

                        

         

Common Stock (6,250 shares)(8)

           480     560  

                               

EIG Fund Investments(12)(13)

   November 6, 2015  

Investment Partnership

                        

         

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

           696     648  

                               

Freeport Financial Funds(12)(13)

   June 13, 2013  

Investment Partnership

                        

         

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

           5,974     5,453  

         

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

           9,756     9,581  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      15,730     15,034  

                               

Harris Preston Fund Investments(12)(13)

   August 9, 2017  

Investment Partnership

                        

         

LP Interests (HPEP 3, L.P.) (Fully diluted 8.2%)

           1,971     1,971  

                               

Hawk Ridge Systems, LLC(13)

   December 2, 2016  

Value-Added Reseller of Engineering Design and Manufacturing Solutions

                        

         

10.0% Secured Debt (Maturity—December 2, 2021)

     13,400     13,314     13,400  

         

Preferred Member Units (226 units)(8)

           2,850     7,260  

         

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

           150     380  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      16,314     21,040  

                               

Houston Plating and Coatings, LLC

   January 8, 2003  

Provider of Plating and Industrial Coating Services

                        

         

8% Unsecured Convertible Debt (Maturity—May 1, 2022)

     3,000     3,000     3,820  

         

Member Units (318,462 units)(8)

           2,236     8,710  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      5,236     12,530  

                               

I-45 SLF LLC(12)(13)

   October 20, 2015  

Investment Partnership

                        

         

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

           17,000     16,218  

                               

L.F. Manufacturing Holdings, LLC(10)

   December 23, 2013  

Manufacturer of Fiberglass Products

                        

         

Preferred Member Units (non-voting; 14% cumulative)(8)(19)

           73     73  

         

Member Units (2,179,001 units)

           2,019     2,060  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      2,092     2,133  

                               

OnAsset Intelligence, Inc.

   April 18, 2011  

Provider of Transportation Monitoring / Tracking Products and Services

                        

         

12% PIK Secured Debt (Maturity—June 30, 2021)(19)

     5,915     5,915     5,915  

         

10% PIK Unsecured Debt (Maturity—June 30, 2021)(19)

     54     54     54  

         

Preferred Stock (912 shares)

           1,981     —  

         

Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)

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

                      9,869     5,969  

                               

15

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
   Investment Date(26)
   Business Description
   Type of Investment(2)(3)(25)
   Principal(4)
   Cost(4)
   Fair Value(18)
  
   

PCI Holding Company, Inc.

   December 18, 2012  

Manufacturer of Industrial Gas Generating Systems

                        

         

12% Current / 3% PIK Secured Debt (Maturity—March 31, 2019)(17)(19)

     11,681     11,681     11,681  

         

Preferred Stock (1,740,000 shares) (non-voting)

           1,740     4,350  

         

Preferred Stock (1,500,000 shares)

           3,927     200  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

                      17,348     16,231  

                               

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

   January 8, 2013  

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  

                               

Salado Stone Holdings, LLC(10)

   June 27, 2016  

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                        

         

Class A Preferred Units (Salado Acquisition, LLC) (2,000,000 units)

           2,000     1,470  

                               

SI East, LLC

   August 31, 2018  

Rigid Industrial Packaging Manufacturing

                        

         

10.25% Current, Secured Debt (Maturity—August 31, 2023)

     35,250     34,904     34,904  

         

Preferred Member Units (157 units)

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

                      40,904     40,904  

Slick Innovations, LLC

   September 13, 2018  

Text Message Marketing Platform

                        

         

14% Current, Secured Debt (Maturity—September 13, 2023)

     6,880     6,658     6,658  

         

Member Units (70,000 units)

           700     700  

         

Warrants (18,084 equivalent units; Expiration—September 13, 2028; Strike price—$0.01 per unit)

           181     181  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​