Main Street Exits T-Rex Portfolio Investment
Main Street Capital announced that it recently fully exited its investment in Texas ReExcavation, LC (T-Rex). T-Rex is a provider of hydro excavation and vacuum excavation services for a variety of industry sectors, including the petrochemical, pipeline, municipal, utilities, construction, oil & gas, engineering, transportation, telecommunication, and environmental industries.
Main Street partnered with third-party investors and certain members of T-Rex’s management team to support the acquisition of T-Rex in December 2012. Main Street’s investment consisted of a $6 million senior secured, second lien debt investment and a $2.9 million preferred equity investment representing 17.4% of the fully-diluted equity interests in the parent holding company of T-Rex. In September 2014, Main Street realized a gain of approximately $3.7 million on the sale of T-Rex. On a cumulative basis, Main Street realized an internal rate of return of 35.3% and a 1.6 times money invested return on its investment in T-Rex.