Daily News: July 10, 2012

Main Street Capital Provides Q2/12 Portfolio Activity Update


Main Street Capital Corporation provided an update of its portfolio investment activity for the second quarter of 2012.

Lower Middle-Market Portfolio Investments Update

During the second quarter of 2012, Main Street completed lower middle-market (LMM) portfolio investments totaling $29.4 million, including investments in three previously announced new LMM portfolio companies totaling $23 million and follow on investments in existing LMM portfolio companies totaling $6.4 million. On an aggregate basis, Main Street received total repayments of debt principal from several LMM portfolio debt investments during the second quarter of 2012 totaling $8.5 million. Main Street also realized a loss of $3.4 million on a LMM portfolio investment that had been fully impaired in prior periods and which also had been on non-accrual status since the first quarter of 2011.

Main Street’s significant LMM portfolio activity for the second quarter of 2012 is summarized below:

New LMM Portfolio Company Investments

  • B.J. Alan Company – a $10 million investment in secured, second lien debt; the company, which does business under the name Phantom Fireworks, is the nation’s largest showroom fireworks retailer and second largest importer, wholesaler and distributor of consumer fireworks.

  • Bridge Capital Solutions Corporation – a $5 million investment in first lien, senior secured debt with equity warrant participation; the company is a financial services firm that provides accelerated cash flow solutions to small business.

  • Zilliant, Incorporated – an $8 million investment in first lien, senior secured debt with equity warrant participation; the company is the leading provider of price optimization and margin management solutions for B2B manufacturing, distribution, high-tech and industrial services companies.

    Middle-Market Portfolio Investments Update

    In addition to the LMM portfolio investment activity discussed above, Main Street completed middle-market portfolio investments, which represent debt investments in businesses that are generally larger in size than Main Street’s LMM portfolio companies, totaling $133.7 million during the second quarter of 2012. The second quarter investment activity resulted in 22 new middle-market companies at June 30, 2012, with such investments totaling $113 million with a weighted average effective yield of approximately 7.9%. The 22 new middle-market investments represent first lien secured debt investments and include companies operating in a variety of industries. In addition, during the second quarter of 2012 Main Street fully exited its investments in six middle-market portfolio companies that Main Street was invested in on March 31, 2012, which together with partial repayments on or exits of other debt securities in middle-market portfolio companies, represented a total decrease of $41.3 million in middle-market debt investments during the second quarter of 2012.