XNYS:MAIN Main Street Capital Corporation Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

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Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended June 30, 2012

 

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

 

41-2230745

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

1300 Post Oak Boulevard, Suite 800

 

 

Houston, TX

 

77056

(Address of principal executive offices)

 

(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  x  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 or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer o

 

Accelerated filer x

 

 

 

Non-accelerated filer o

 

Smaller reporting company 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  x

 

The number of shares outstanding of the issuer’s common stock as of August 1, 2012 was 31,558,273.

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

 

PART I
FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

 

 

Consolidated Balance Sheets — June 30, 2012 (unaudited) and December 31, 2011

 

1

 

 

 

 

 

Consolidated Statements of Operations (unaudited) — Three and six months ended June 30, 2012 and 2011

 

2

 

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) — Six months ended June 30, 2012 and 2011

 

3

 

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) — Six months ended June 30, 2012 and 2011

 

4

 

 

 

 

 

Consolidated Schedule of Investments (unaudited) — June 30, 2012

 

5

 

 

 

 

 

Consolidated Schedule of Investments — December 31, 2011

 

19

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

32

 

 

 

 

Item 2.

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

 

55

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

73

 

 

 

 

Item 4.

Controls and Procedures

 

73

 

 

 

 

 

PART II
OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

74

 

 

 

 

Item 1A.

Risk Factors

 

74

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

74

 

 

 

 

Item 6.

Exhibits

 

74

 

 

 

 

 

Signatures

 

75

 



Table of Contents

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

 

 

 

June 30, 2012

 

December 31, 2011

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Portfolio investments at fair value:

 

 

 

 

 

Control investments (cost: $179,175 and $206,787 as of June 30, 2012 and December 31, 2011, respectively)

 

$

228,903

 

$

238,924

 

Affiliate investments (cost: $104,677 and $110,157 as of June 30, 2012 and December 31, 2011, respectively)

 

135,561

 

146,405

 

Non-Control/Non-Affiliate investments (cost: $422,174 and $275,061 as of June 30, 2012 and December 31, 2011, respectively)

 

426,128

 

270,895

 

Investment in affiliated Investment Manager (cost: $2,668 and $4,284 as of June 30, 2012 and December 31, 2011, respectively)

 

202

 

1,869

 

 

 

 

 

 

 

Total portfolio investments (cost: $708,694 and $596,289 as of June 30, 2012 and December 31, 2011, respectively)

 

790,794

 

658,093

 

Marketable securities and idle funds investments (cost: $7,925 and $25,935 as of June 30, 2012 and December 31, 2011, respectively)

 

8,149

 

26,242

 

 

 

 

 

 

 

Total investments (cost: $716,619 and $622,224 as of June 30, 2012 and December 31, 2011, respectively)

 

798,943

 

684,335

 

 

 

 

 

 

 

Cash and cash equivalents

 

31,976

 

42,650

 

Interest receivable and other assets

 

8,099

 

6,539

 

Deferred financing costs (net of accumulated amortization of $2,634 and $2,167 as of June 30, 2012 and December 31, 2011, respectively)

 

3,993

 

4,168

 

 

 

 

 

 

 

Total assets

 

$

843,011

 

$

737,692

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

SBIC debentures (par: $220,000 as of June 30, 2012 and December 31,2011; par of $95,000 is recorded at a fair value of $78,396 and $76,887 as of June 30, 2012 and December 31, 2011, respectively)

 

$

203,396

 

$

201,887

 

Credit facility

 

88,000

 

107,000

 

Interest payable

 

3,884

 

3,984

 

Dividend payable

 

2,955

 

2,856

 

Deferred tax liability, net

 

5,398

 

3,776

 

Payable to affiliated Investment Manager

 

2,760

 

4,831

 

Accounts payable and other liabilities

 

3,214

 

2,170

 

 

 

 

 

 

 

Total liabilities

 

309,607

 

326,504

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 31,588,654 and 26,714,384 issued and outstanding as of June 30, 2012 and December 31, 2011, respectively)

 

315

 

267

 

Additional paid-in capital

 

462,462

 

360,164

 

Accumulated net investment income, net of cumulative dividends of $88,482 and $79,414 as of June 30, 2012 and December 31, 2011, respectively

 

29,138

 

12,531

 

Accumulated net realized loss from investments, net of cumulative dividends of $27,327 and $13,804 as of June 30, 2012 and December 31, 2011, respectively

 

(29,159

)

(20,445

)

Net unrealized appreciation, net of income taxes

 

70,648

 

53,194

 

 

 

 

 

 

 

Total Net Asset Value

 

533,404

 

405,711

 

 

 

 

 

 

 

Noncontrolling interest

 

 

5,477

 

 

 

 

 

 

 

Total net assets including noncontrolling interests

 

533,404

 

411,188

 

 

 

 

 

 

 

Total liabilities and net assets

 

$

843,011

 

$

737,692

 

 

 

 

 

 

 

NET ASSET VALUE PER SHARE

 

$

16.89

 

$

15.19

 

 

The accompanying notes are an integral part of these financial statements

 

1



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT INCOME:

 

 

 

 

 

 

 

 

 

Interest, fee and dividend income:

 

 

 

 

 

 

 

 

 

Control investments

 

$

6,083

 

$

6,491

 

$

11,850

 

$

12,216

 

Affiliate investments

 

4,141

 

3,114

 

9,814

 

5,283

 

Non-Control/Non-Affiliate investments

 

10,101

 

6,185

 

18,248

 

11,614

 

Total interest, fee and dividend income

 

20,325

 

15,790

 

39,912

 

29,113

 

Interest from marketable securities, idle funds and other

 

517

 

339

 

1,489

 

391

 

Total investment income

 

20,842

 

16,129

 

41,401

 

29,504

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Interest

 

(4,180

)

(3,264

)

(8,044

)

(6,166

)

General and administrative

 

(554

)

(600

)

(1,162

)

(1,107

)

Expenses reimbursed to affiliated Investment Manager

 

(2,702

)

(2,207

)

(5,359

)

(4,337

)

Share-based compensation

 

(580

)

(443

)

(1,161

)

(886

)

Total expenses

 

(8,016

)

(6,514

)

(15,726

)

(12,496

)

NET INVESTMENT INCOME

 

12,826

 

9,615

 

25,675

 

17,008

 

 

 

 

 

 

 

 

 

 

 

NET REALIZED GAIN (LOSS) FROM INVESTMENTS:

 

 

 

 

 

 

 

 

 

Control investments

 

(96

)

 

(2,061

)

 

Affiliate investments

 

(3,732

)

 

5,500

 

 

Non-Control/Non-Affiliate investments

 

174

 

 

337

 

 

Marketable securities and idle funds investments

 

325

 

250

 

1,033

 

250

 

Total net realized gain (loss) from investments

 

(3,329

)

250

 

4,809

 

250

 

NET REALIZED INCOME

 

9,497

 

9,865

 

30,484

 

17,258

 

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

 

 

 

 

 

 

 

 

 

Portfolio investments

 

17,515

 

11,472

 

22,023

 

15,491

 

Marketable securities and idle funds investments

 

(55

)

572

 

(84

)

687

 

SBIC debentures

 

(1,808

)

(2,118

)

(1,508

)

(2,079

)

Investment in affiliated Investment Manager

 

 

(46

)

(51

)

(87

)

Total net change in unrealized appreciation

 

15,652

 

9,880

 

20,380

 

14,012

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

(996

)

(1,963

)

(2,872

)

(3,163

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 

24,153

 

17,782

 

47,992

 

28,107

 

Noncontrolling interest

 

 

(158

)

(54

)

(158

)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK

 

$

24,153

 

$

17,624

 

$

47,938

 

$

27,949

 

 

 

 

 

 

 

 

 

 

 

NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED

 

$

0.47

 

$

0.41

 

$

0.94

 

$

0.79

 

NET REALIZED INCOME PER SHARE - BASIC AND DILUTED

 

$

0.35

 

$

0.42

 

$

1.12

 

$

0.80

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCK PER SHARE - BASIC AND DILUTED

 

$

0.88

 

$

0.77

 

$

1.77

 

$

1.32

 

DIVIDENDS PAID PER SHARE

 

$

0.42

 

$

0.39

 

$

0.83

 

$

0.77

 

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

 

27,365,758

 

23,015,718

 

27,118,421

 

21,128,360

 

 

The accompanying notes are an integral part of these financial statements

 

2



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(in thousands, except shares)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Net Unrealized

 

 

 

 

 

Total Net

 

 

 

 

 

 

 

 

 

Accumulated

 

Net Realized

 

Appreciation from

 

 

 

 

 

Assets

 

 

 

Common Stock

 

Additional

 

Net Investment

 

Loss From

 

Investments,

 

 

 

 

 

Including

 

 

 

Number

 

Par

 

Paid-In

 

Income, Net

 

Investments,

 

Net of Income

 

Total Net

 

Noncontrolling

 

Noncontrolling

 

 

 

of Shares

 

Value

 

Capital

 

of Dividends

 

Net of Dividends

 

Taxes

 

Asset Value

 

Interest

 

Interest

 

Balances at December 31, 2010

 

18,797,444

 

$

188

 

$

224,485

 

$

9,262

 

$

(20,542

)

$

32,142

 

$

245,535

 

$

4,448

 

$

249,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public offering of common stock, net of offering costs

 

4,025,000

 

41

 

70,309

 

 

 

 

70,350

 

 

70,350

 

Share-based compensation

 

 

 

886

 

 

 

 

886

 

 

886

 

Dividend reinvestment

 

235,844

 

2

 

4,452

 

 

 

 

4,454

 

 

4,454

 

Issuance of restricted stock

 

124,312

 

1

 

(1

)

 

 

 

 

 

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(110

)

(110

)

Dividends to stockholders

 

 

 

 

(18,834

)

(208

)

 

(19,042

)

 

(19,042

)

Net increase resulting from operations

 

 

 

 

17,008

 

250

 

10,849

 

28,107

 

 

28,107

 

Noncontrolling interest

 

 

 

 

 

 

(158

)

(158

)

158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2011

 

23,182,600

 

$

232

 

$

300,131

 

$

7,436

 

$

(20,500

)

$

42,833

 

$

330,132

 

$

4,496

 

334,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2011

 

26,714,384

 

$

267

 

$

360,164

 

$

12,531

 

$

(20,445

)

$

53,194

 

$

405,711

 

$

5,477

 

$

411,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public offering of common stock, net of offering costs

 

4,312,500

 

43

 

92,913

 

 

 

 

92,956

 

 

92,956

 

MSC II noncontrolling interest acquisition

 

229,634

 

2

 

5,328

 

 

 

 

5,330

 

(5,417

)

(87

)

Adjustment to investment in Investment Manager related to MSC II noncontrolling interest acquisition

 

 

 

(1,616

)

 

 

 

(1,616

)

 

(1,616

)

Share-based compensation

 

 

 

1,161

 

 

 

 

1,161

 

 

1,161

 

Purchase of vested stock for employee payroll tax withholding

 

(7,858

)

 

(199

)

 

 

 

(199

)

 

(199

)

Dividend reinvestment

 

200,961

 

2

 

4,712

 

 

 

 

4,714

 

 

4,714

 

Issuance of restricted stock

 

139,033

 

1

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(114

)

(114

)

Dividends to stockholders

 

 

 

 

(9,068

)

(13,523

)

 

(22,591

)

 

(22,591

)

Net increase resulting from operations

 

 

 

 

25,675

 

4,809

 

17,508

 

47,992

 

 

47,992

 

Noncontrolling interest

 

 

 

 

 

 

(54

)

(54

)

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2012

 

31,588,654

 

$

315

 

$

462,462

 

$

29,138

 

$

(29,159

)

$

70,648

 

$

533,404

 

$

 

$

533,404

 

 

The accompanying notes are an integral part of these financial statements

 

3



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

47,992

 

$

28,107

 

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

 

 

 

 

 

Net change in unrealized appreciation

 

(20,380

)

(14,012

)

Net realized gain from investments

 

(4,809

)

(250

)

Accretion of unearned income

 

(6,405

)

(2,699

)

Net payment-in-kind interest

 

(1,529

)

(1,160

)

Accrued dividends on investments

 

(133

)

(855

)

Share-based compensation expense

 

1,161

 

886

 

Amortization of deferred financing costs

 

467

 

306

 

Deferred taxes

 

1,622

 

2,912

 

Changes in other assets and liabilities:

 

 

 

 

 

Interest receivable and other assets

 

(346

)

(1,400

)

Interest payable

 

(100

)

522

 

Payable to affiliated Investment Manager

 

(2,071

)

2,222

 

Accounts payable and other liabilities

 

553

 

88

 

Deferred fees and other

 

623

 

738

 

Net cash provided by operating activities

 

16,645

 

15,405

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Investments in portfolio companies

 

(261,019

)

(176,096

)

Principal payments received on loans and debt securities in portfolio companies

 

131,852

 

47,537

 

Proceeds from sale of equity investments and related notes in portfolio companies

 

26,547

 

376

 

Investments in marketable securities and idle funds investments

 

(7,596

)

(17,978

)

Proceeds from marketable securities and idle funds investments

 

27,212

 

1,367

 

Net cash provided by (used in) investing activities

 

(83,004

)

(144,794

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

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

 

92,956

 

70,350

 

Distributions to noncontrolling interest

 

(114

)

(110

)

Dividends paid to stockholders

 

(17,528

)

(11,574

)

Proceeds from issuance of SBIC debentures

 

 

30,000

 

Proceeds from credit facility

 

114,000

 

99,000

 

Repayments on credit facility

 

(133,000

)

(65,000

)

Payment of deferred loan costs and SBIC debenture fees

 

(292

)

(1,478

)

Other

 

(337

)

 

Net cash provided by financing activities

 

55,685

 

121,188

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(10,674

)

(8,201

)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

42,650

 

22,334

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

31,976

 

$

14,133

 

 

The accompanying notes are an integral part of these financial statements

 

4



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2012

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Control Investments (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Café Brazil, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - April 20, 2013)

 

1,000

 

1,000

 

1,000

 

 

 

 

 

Member Units (Fully diluted 41.0%) (8)

 

 

 

42

 

3,530

 

 

 

 

 

 

 

 

 

1,042

 

4,530

 

 

 

 

 

 

 

 

 

 

 

 

 

California Healthcare Medical Billing, Inc.

 

Outsourced Billing and Revenue Cycle Management

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - October 17, 2015)

 

8,103

 

7,887

 

8,013

 

 

 

 

 

Warrants (Fully diluted 21.3%)

 

 

 

1,193

 

3,380

 

 

 

 

 

Common Stock (Fully diluted 9.8%)

 

 

 

1,177

 

1,560

 

 

 

 

 

 

 

 

 

10,257

 

12,953

 

 

 

 

 

 

 

 

 

 

 

 

 

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - December 31, 2013)

 

850

 

850

 

850

 

 

 

 

 

Member Units (Fully diluted 41.6%) (8)

 

 

 

1,300

 

6,810

 

 

 

 

 

 

 

 

 

2,150

 

7,660

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceres Management, LLC (Lambs)

 

Aftermarket Automotive Services Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - May 31, 2013)

 

4,000

 

3,986

 

3,986

 

 

 

 

 

9.5% Secured Debt (Lamb’s Real Estate Investment I, LLC) (Maturity - October 1, 2025)

 

1,090

 

1,090

 

1,090

 

 

 

 

 

Member Units (Fully diluted 79.0%)

 

 

 

5,273

 

 

 

 

 

 

Member Units (Lamb’s Real Estate Investment I, LLC) (Fully diluted 100%)

 

 

 

625

 

800

 

 

 

 

 

 

 

 

 

10,974

 

5,876

 

 

 

 

 

 

 

 

 

 

 

 

 

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays

 

 

 

 

 

 

 

 

 

 

 

 

 

9% Current / 9% PIK Secured Debt (Maturity - July 1, 2013)

 

4,661

 

4,643

 

4,643

 

 

 

 

 

Warrants (Fully diluted 47.9%)

 

 

 

320

 

320

 

 

 

 

 

 

 

 

 

4,963

 

4,963

 

 

 

 

 

 

 

 

 

 

 

 

 

Gulf Manufacturing, LLC

 

Manufacturer of Specialty Fabricated Industrial Piping Products

 

 

 

 

 

 

 

 

 

 

 

 

 

9% PIK Secured Debt (Maturity - June 30, 2017)

 

919

 

919

 

919

 

 

 

 

 

Member Units (Fully diluted 34.2%) (8)

 

 

 

2,980

 

12,550

 

 

 

 

 

 

 

 

 

3,899

 

13,469

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - June 4, 2015)

 

5,024

 

4,582

 

4,810

 

 

 

 

 

Preferred Stock (8% cumulative) (8)

 

 

 

1,123

 

1,123

 

 

 

 

 

Common Equity (Fully diluted 34.5%)

 

 

 

718

 

2,620

 

 

 

 

 

 

 

 

 

6,423

 

8,553

 

 

 

 

 

 

 

 

 

 

 

 

 

Hawthorne Customs and Dispatch Services, LLC

 

Facilitator of Import Logistics, Brokerage, and Warehousing

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 37.1%) (8)

 

 

 

589

 

1,610

 

 

 

 

 

Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.1%) (8)

 

 

 

1,215

 

1,215

 

 

 

 

 

 

 

 

 

1,804

 

2,825

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydratec, Inc.

 

Designer and Installer of Micro-Irrigation Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (Fully diluted 94.2%) (8)

 

 

 

7,094

 

14,218

 

 

5



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - September 15, 2014)

 

4,350

 

4,132

 

4,200

 

 

 

 

 

Warrants (Fully diluted 30.1%)

 

 

 

1,129

 

1,650

 

 

 

 

 

 

 

 

 

5,261

 

5,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 5.25%, Secured Debt (Maturity - November 14, 2013) (9)

 

1,843

 

1,843

 

1,843

 

 

 

 

 

13% Current / 6% PIK Secured Debt (Maturity - November 14, 2013)

 

1,912

 

1,912

 

1,912

 

 

 

 

 

Member Units (Fully diluted 60.8%) (8)

 

 

 

811

 

1,750

 

 

 

 

 

 

 

 

 

4,566

 

5,505

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Secured Debt (Maturity - August 22, 2012)

 

2,000

 

1,996

 

1,996

 

 

 

 

 

Preferred Stock (non-voting)

 

 

 

510

 

510

 

 

 

 

 

Warrants (Fully diluted 7.1%)

 

 

 

54

 

40

 

 

 

 

 

Common Stock (Fully diluted 70.0%) (8)

 

 

 

100

 

340

 

 

 

 

 

 

 

 

 

2,660

 

2,886

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-Columbia Lumber Products, LLC

 

Manufacturer of Finger- Jointed Lumber Products

 

 

 

 

 

 

 

 

 

 

 

 

 

10% Secured Debt (Maturity - December 18, 2014)

 

1,250

 

1,250

 

1,250

 

 

 

 

 

12% Secured Debt (Maturity - December 18, 2014)

 

3,900

 

3,900

 

3,900

 

 

 

 

 

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

 

1,040

 

1,040

 

1,040

 

 

 

 

 

Warrants (Fully diluted 9.2%)

 

 

 

250

 

890

 

 

 

 

 

Member Units (Fully diluted 42.9%)

 

 

 

812

 

930

 

 

 

 

 

Member Units (Mid - Columbia Real Estate, LLC) (Fully diluted 50.0%) (8)

 

 

 

250

 

810

 

 

 

 

 

 

 

 

 

7,502

 

8,820

 

 

 

 

 

 

 

 

 

 

 

 

 

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - February 1, 2013) (9)

 

3,385

 

3,380

 

3,380

 

 

 

 

 

18% Secured Debt (Maturity - February 1, 2013)

 

5,173

 

5,156

 

5,156

 

 

 

 

 

Member Units (Fully diluted 44.0%)

 

 

 

2,975

 

4,195

 

 

 

 

 

 

 

 

 

11,511

 

12,731

 

 

 

 

 

 

 

 

 

 

 

 

 

NRI Clinical Research, LLC

 

Clinical Research Center

 

 

 

 

 

 

 

 

 

 

 

 

 

14% Secured Debt (Maturity - September 8, 2016)

 

5,001

 

4,735

 

4,735

 

 

 

 

 

Warrants (Fully diluted 12.5%)

 

 

 

252

 

440

 

 

 

 

 

Member Units (Fully diluted 24.8%) (8)

 

 

 

500

 

870

 

 

 

 

 

 

 

 

 

5,487

 

6,045

 

 

 

 

 

 

 

 

 

 

 

 

 

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - December 22, 2016)

 

12,100

 

11,118

 

11,890

 

 

 

 

 

Warrants (Fully diluted 12.2%)

 

 

 

817

 

1,170

 

 

 

 

 

Member Units (Fully diluted 43.2%) (8)

 

 

 

2,900

 

4,153

 

 

 

 

 

 

 

 

 

14,835

 

17,213

 

 

 

 

 

 

 

 

 

 

 

 

 

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - April 1, 2013)

 

6,667

 

6,655

 

6,655

 

 

 

 

 

Common Stock (Fully diluted 48.0%)

 

 

 

1,080

 

6,000

 

 

 

 

 

 

 

 

 

7,735

 

12,655

 

 

 

 

 

 

 

 

 

 

 

 

 

Pegasus Research Group, LLC (Televerde)

 

Telemarketing and Data Services

 

 

 

 

 

 

 

 

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - January 6, 2016)

 

5,491

 

5,435

 

5,491

 

 

 

 

 

Member Units (Fully diluted 43.7%) (8)

 

 

 

1,250

 

1,250

 

 

 

 

 

 

 

 

 

6,685

 

6,741

 

 

 

 

 

 

 

 

 

 

 

 

 

PPL RVs, Inc.

 

Recreational Vehicle Dealer

 

 

 

 

 

 

 

 

 

 

 

 

 

18% Secured Debt (Maturity - June 10, 2015)

 

4,450

 

4,407

 

4,450

 

 

 

 

 

Common Stock (Fully diluted 51.1%)

 

 

 

2,150

 

5,480

 

 

 

 

 

 

 

 

 

6,557

 

9,930

 

 

6



Table of Contents

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value

 

Principle Environmental, LLC

 

Noise Abatement Services

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - February 1, 2016)

 

4,750

 

3,851

 

4,140

 

 

 

 

 

12% Current / 2% PIK Secured Debt (Maturity - February 1, 2016)

 

3,558

 

3,496

 

3,548

 

 

 

 

 

Warrants (Fully diluted 14.6%)

 

 

 

1,200

 

3,140

 

 

 

 

 

Member Units (Fully diluted 25.0%)

 

 

 

2,000

 

5,380

 

 

 

 

 

 

 

 

 

10,547

 

16,208

 

 

 

 

 

 

 

 

 

 

 

 

 

River Aggregates, LLC

 

Processor of Construction Aggregates

 

 

 

 

 

 

 

 

 

 

 

 

 

12% Secured Debt (Maturity - March 30, 2016)

 

3,700

 

3,479

 

3,479

 

 

 

 

 

Warrants (Fully diluted 20.0%)

 

 

 

202

 

 

 

 

 

 

Member Units (Fully diluted 40.0%)

 

 

 

550

 

 

 

 

 

 

 

 

 

 

4,231

 

3,479

 

 

 

 

 

 

 

 

 

 

 

 

 

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

 

 

 

 

 

 

 

 

 

 

 

 

 

4.5% Current / 4.5% PIK Secured Debt (Maturity - October 2, 2013)

 

1,068

 

1,065

 

1,065

 

 

 

 

 

6% Current / 6% PIK Secured Debt (Maturity - October 2, 2013)

 

5,559

 

5,477

 

5,477

 

 

 

 

 

Warrants (Fully diluted 74.7%)

 

 

 

896

 

 

 

 

 

 

Member Units (Non-voting)

 

 

 

200

 

 

 

 

 

 

 

 

 

 

7,638

 

6,542

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal and Mechanical Equipment, LLC

 

Commercial and Industrial Engineering Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - September 25, 2014) (9)

 

1,272

 

1,267

 

1,267

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - September 25, 2014)

 

4,053

 

4,017

 

4,053

 

 

 

 

 

Member Units (Fully diluted 50.0%) (8)

 

 

 

1,000

 

6,490

 

 

 

 

 

 

 

 

 

6,284

 

11,810

 

 

 

 

 

 

 

 

 

 

 

 

 

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

 

 

 

 

 

 

 

 

 

 

 

 

 

Member Units (Fully diluted 42.8%) (8)

 

 

 

1,113

 

3,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Van Gilder Insurance Corporation

 

Insurance Brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

8% Secured Debt (Maturity - January 31, 2013)

 

1,000

 

993

 

993

 

 

 

 

 

8% Secured Debt (Maturity - January 31, 2016)

 

1,545

 

1,531

 

1,531

 

 

 

 

 

13% Secured Debt (Maturity - January 31, 2016)

 

6,150

 

5,224

 

5,224

 

 

 

 

 

Warrants (Fully diluted 10.0%)

 

 

 

1,209

 

1,209

 

 

 

 

 

Common Stock (Fully diluted 15.5%)

 

 

 

2,500

 

2,500

 

 

 

 

 

 

 

 

 

11,457

 

11,457

 

 

 

 

 

 

 

 

 

 

 

 

 

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

 

 

 

 

 

 

 

 

 

 

 

 

 

6.5% Current /6.5% PIK Secured Debt (Maturity - December 23, 2016)

 

3,100

 

3,038

 

3,038

 

 

 

 

 

Series A Preferred Stock (Fully diluted 33.3%)

 

 

 

3,000

 

3,280

 

 

 

 

 

Common Stock (Fully diluted 36.7%)

 

 

 

3,706

 

100

 

 

 

 

 

 

 

 

 

9,744

 

6,418

 

 

 

 

 

 

 

 

 

 

 

 

 

Ziegler’s NYPD, LLC

 

Casual Restaurant Group

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Plus 2%, Current Coupon 9%, Secured Debt (Maturity - October 1, 2013) (9)

 

1,000

 

997

 

997

 

 

 

 

 

13% Current / 5% PIK Secured Debt (Maturity - October 1, 2013)

 

5,180

 

5,159

 

5,159

 

 

 

 

 

Warrants (Fully diluted 46.6%)

 

 

 

600

 

300

 

 

 

 

 

 

 

 

 

6,756

 

6,456

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Control Investments (28.7% of total investments at fair value)

 

 

 

179,175

 

228,903

 

 

7



Table of Contents

 

MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2012

(in thousands)

(Unaudited)

 

Portfolio Company (1)

 

Business Description

 

Type of Investment (2) (3)

 

Principal (4)

 

Cost (4)

 

Fair Value