Main Street Capital Exits Two Portfolio Investments
Main Street Capital Corporation announced that it has exited investments in two of its portfolio companies.
Main Street completed the exit of its debt investment and a portion of its equity investments in Drilling Info, Inc., an information service provider and resource for the oil and gas industry, as part of an equity investment in Drilling Info by a group of leading private equity investment firms focused on the global software, Internet and data-services industries.
Main Street made its initial investment in Drilling Info, which consisted of an $8 million second lien, secured debt investment with equity warrant participation, during November 2009 to support an acquisition and various other growth initiatives. Main Street subsequently acquired additional minority equity ownership interests in Drilling Info, which Main Street will continue to hold.
As part of the exit, Main Street realized a gain of approximately $9.2 million on the sale of its equity warrant participation. On a cumulative basis, Main Street has realized a total internal rate of return of 58.3% and a 2.6 times money invested return including the full repayment of its debt investment and the redemption of its equity warrant participation in Drilling Info. Based upon the valuation utilized to complete the recent third-party equity investment and the related redemption of Main Street’s equity warrant participation, Main Street’s remaining minority equity ownership interest in Drilling Info has a fair value of approximately $5.1 million, representing an unrealized gain of approximately $3.8 million compared to the $1.3 million cost basis of Main Street’s remaining investment.
Main Street also fully exited its debt and equity investments in Currie Acquisitions, LLC. Main Street completed the exit of its debt and equity investments in Currie as part of a buyout of Currie by Accell Group, a Netherlands-based international conglomerate. Main Street exited its debt investment for the full principal amount of approximately $4.8 million and recognized a realized loss of approximately $1.2 million on its equity investment. The combined proceeds received on Main Street’s debt and equity investments in Currie were approximately $2.8 million in excess of Main Street’s recorded fair value for those investments in Currie as of September 30, 2011.
Main Street is a principal investment firm that primarily provides long-term debt and equity capital to lower middle-market companies.