Daily News: January 10, 2013

Main Street Begins, Partially Exits Portfolio Investments

Main Street Capital recently closed two transactions, including a new portfolio investment and the partial exit of an existing portfolio investment.

The new portfolio investment includes $40.5 million of invested capital in Quality Lease and Rental Holdings, the parent company of Quality Lease Service and Quality Lease Rental Service. Main Street’s investment consists of $38 million in senior, secured term debt in Quality and a $2.5 million direct equity investment in Quality’s parent holding company.

El Campo, TX-based Quality provides custom built mobile housing units to be used at the well site during drilling and completion operations. Quality also provides a variety of other services at the well site, including pad, pit and road construction, pipeline and flow line equipment installation, equipment rental and heavy hauling. Main Street partnered with third party investors and certain members of Quality’s management team to support the acquisition of Quality.

Main Street also completed the partial exit of its equity investment in IRTH Holdings and its wholly owned subsidiary irth Solutions, a provider of asset management solutions to the utility and energy industries, as part of a majority recapitalization of irth Solutions by a private equity investment group and irth Solution’s management team.

Main Street made its original investment in irth Solutions, which consisted of $6 million in first lien, secured debt and a $0.9 million direct equity investment, during December 2010 to support the acquisition of irth Solutions by the company’s management team and a group of private investors.

Main Street is an investment firm that provides long-term debt and equity capital to lower middle-market companies and debt capital to middle-market companies.