Main Street Exits Portfolio Investment
Main Street Capital announced it recently fully exited its investment in California Healthcare Medical Billing, a provider of outsourced medical billing, revenue cycle management, practice management and electronic health record (EHR) solutions to physicians, clinics, hospitals and health systems throughout the United States.
Main Street made its initial investment in CHMB in October 2008 to support growth initiatives, a strategic acquisition and refinancing of existing debt. Main Street’s initial investment consisted of an approximately $2.3 million senior secured, first lien debt investment with equity warrant participation for approximately 20% of the fully-diluted equity interests in CHMB and an approximately $0.6 million common equity investment representing approximately 10% of the fully-diluted equity interests in CHMB.
After its initial investment, Main Street made additional debt investments to support other CHMB add-on acquisitions and growth initiatives with Main Street’s cumulative debt investment totaling approximately $9.7 million.
In conjunction with a majority recapitalization of CHMB in April 2015, Main Street’s debt investment was fully repaid and its equity and warrant positions were redeemed. Main Street recognized a realized gain of approximately $3.3 million on the redemption of its equity and warrant positions by CHMB. On a cumulative basis, Main Street realized an internal rate of return of approximately 17.0% and a 2.0 times money invested return on its debt and equity investment in CHMB.