Company Quick10K Filing
Quick10K
Main Street Capital
10-Q 2019-09-30 Quarter: 2019-09-30
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-11-07 Earnings, Exhibits
8-K 2019-11-05 Other Events, Exhibits
8-K 2019-08-15 Enter Agreement, Exhibits
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-08-06 Other Events, Exhibits
8-K 2019-07-29 Officers
8-K 2019-06-06 Regulation FD
8-K 2019-05-16 Other Events, Exhibits
8-K 2019-05-10 Other Events, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-05-07 Other Events, Exhibits
8-K 2019-05-06 Shareholder Vote
8-K 2019-04-25 Other Events, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2019-02-27 Other Events, Exhibits
8-K 2019-01-17 Earnings, Other Events, Exhibits
8-K 2018-11-15 Officers, Other Events, Exhibits
8-K 2018-11-01 Earnings, Exhibits
8-K 2018-10-31 Other Events, Exhibits
8-K 2018-10-11 Other Events, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-08-01 Other Events, Exhibits
8-K 2018-07-19 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-06-07 Regulation FD
8-K 2018-06-05 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-05-03 Earnings, Exhibits
8-K 2018-04-30 Shareholder Vote
8-K 2018-04-19 Other Events, Exhibits
8-K 2018-03-01 Other Events, Exhibits
8-K 2018-02-22 Earnings, Exhibits
8-K 2018-02-21 Other Events, Exhibits
8-K 2018-01-16 Earnings, Other Events, Exhibits
8-K 2018-01-03 Officers, Other Events, Exhibits
HRI Herc Holdings 1,167
CPTA Capitala Finance 0
GARS Garrison Capital 0
FIF Financial Federal 0
RA Railamerica 0
CGBD TCG BDC 0
SAF Safeco 0
NSS NS Group 0
SVVC Firsthand Technology Value Fund 0
OCSI Oaktree Strategic Income 0
MAIN 2019-09-30
Part I Financial Information
Part II Other Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-14.1 a2239966zex-14_1.htm
EX-31.1 a2239966zex-31_1.htm
EX-31.2 a2239966zex-31_2.htm
EX-32.1 a2239966zex-32_1.htm
EX-32.2 a2239966zex-32_2.htm
EX-99.1 a2239966zex-99_1.htm

Main Street Capital Earnings 2019-09-30

MAIN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 a2239966z10-q.htm 10-Q

Use these links to rapidly review the document
TABLE OF CONTENTS

Table of Contents

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)    

ý

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

o

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:            to                              

Commission File Number: 001-33723

Main Street Capital Corporation
(Exact name of registrant as specified in its charter)

Maryland
(State or other jurisdiction of
incorporation or organization)
  41-2230745
(I.R.S. Employer
Identification No.)

1300 Post Oak Boulevard, 8th Floor
Houston, TX
(Address of principal executive offices)

 

77056
(Zip Code)

(713) 350-6000
(Registrant's telephone number including area code)

n/a
(Former name, former address and former fiscal year, if changed since last report)

        Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class   Trading Symbol   Name of Each Exchange on Which
Registered
Common Stock, par value $0.01 per share   MAIN   New York Stock Exchange

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o    No o

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o   Smaller reporting company o

Emerging growth company o

        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

        Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

        The number of shares outstanding of the issuer's common stock as of November 7, 2019 was 63,424,793.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

 

 

Consolidated Balance Sheets—September 30, 2019 (unaudited) and December 31, 2018

  1

 

Consolidated Statements of Operations (unaudited)—Three and nine months ended September 30, 2019 and 2018

  2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Nine months ended September 30, 2019 and 2018

  3

 

Consolidated Statements of Cash Flows (unaudited)—Nine months ended September 30, 2019 and 2018

  4

 

Consolidated Schedule of Investments (unaudited)—September 30, 2019

  5

 

Consolidated Schedule of Investments—December 31, 2018

  31

 

Notes to Consolidated Financial Statements (unaudited)

  57

 

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Nine months ended September 30, 2019 and 2018

  102

Item 2.

 

Management's Discussion and Analysis of Financial Condition and Results of Operations

  112

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

  136

Item 4.

 

Controls and Procedures

  137


PART II
OTHER INFORMATION


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(dollars in thousands, except shares and per share amounts)

 
  September 30,
2019
  December 31,
2018
 
 
  (Unaudited)
   
 

ASSETS

             

  

             

Investments at fair value:

             

Control investments (cost: $762,945 and $750,618 as of September 30, 2019 and December 31, 2018, respectively)

  $ 1,024,566   $ 1,004,993  

Affiliate investments (cost: $358,086 and $381,307 as of September 30, 2019 and December 31, 2018, respectively)

    338,747     359,890  

Non-Control/Non-Affiliate investments (cost: $1,237,769 and $1,137,108 as of September 30, 2019 and December 31, 2018, respectively)

    1,193,883     1,089,026  

Total investments (cost: $2,358,800 and $2,269,033 as of September 30, 2019 and December 31, 2018, respectively)

    2,557,196     2,453,909  

  

             

Cash and cash equivalents

    52,281     54,181  

Interest receivable and other assets

    52,145     39,674  

Receivable for securities sold

        1,201  

Deferred financing costs (net of accumulated amortization of $7,267 and $6,562 as of September 30, 2019 and December 31, 2018, respectively)

    3,756     4,461  

Total assets

  $ 2,665,378   $ 2,553,426  

LIABILITIES

             

Credit facility

 
$

150,000
 
$

301,000
 

SBIC debentures (par: $311,800 ($37,000 due within one year) and $345,800 as of September 30, 2019 and December 31, 2018, respectively)

    305,768     338,186  

5.20% Notes due 2024 (par: $250,000 as of September 30, 2019)

    246,257      

4.50% Notes due 2022 (par: $185,000 as of both September 30, 2019 and December 31, 2018)

    183,078     182,622  

4.50% Notes due 2019 (par: $175,000 as of both September 30, 2019 and December 31, 2018)

    174,880     174,338  

Accounts payable and other liabilities

    23,072     17,962  

Payable for securities purchased

    6,875     28,254  

Interest payable

    12,540     6,041  

Dividend payable

    12,975     11,948  

Deferred tax liability, net

    17,878     17,026  

Total liabilities

    1,133,323     1,077,377  

Commitments and contingencies (Note K)

   
 
   
 
 

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 63,309,513 and 61,264,861 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively)

   
633
   
613
 

Additional paid-in capital

    1,481,702     1,409,945  

Total undistributed earnings

    49,720     65,491  

Total net assets

    1,532,055     1,476,049  

Total liabilities and net assets

  $ 2,665,378   $ 2,553,426  

NET ASSET VALUE PER SHARE

  $ 24.20   $ 24.09  

   

The accompanying notes are an integral part of these consolidated financial statements

1


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(dollars in thousands, except shares and per share amounts)

(Unaudited)

 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 
  2019   2018   2019   2018  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 23,173   $ 18,926   $ 70,480   $ 64,756  

Affiliate investments

    8,009     9,643     25,426     27,230  

Non-Control/Non-Affiliate investments

    28,886     29,694     86,818     82,089  

Total investment income

    60,068     58,263     182,724     174,075  

EXPENSES:

                         

Interest

    (12,893 )   (10,884 )   (37,138 )   (31,982 )

Compensation

    (4,322 )   (5,798 )   (15,907 )   (16,962 )

General and administrative

    (2,920 )   (2,951 )   (9,282 )   (9,023 )

Share-based compensation

    (2,572 )   (2,147 )   (7,279 )   (6,883 )

Expenses allocated to the External Investment Manager

    1,651     1,592     5,001     5,336  

Total expenses

    (21,056 )   (20,188 )   (64,605 )   (59,514 )

NET INVESTMENT INCOME

    39,012     38,075     118,119     114,561  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

    5,869         4,926     4,681  

Affiliate investments

    1,850     1,898     (602 )   1,898  

Non-Control/Non-Affiliate investments

    (13,595 )   7,340     (18,487 )   (3,825 )

Realized loss on extinguishment of debt

            (5,689 )   (2,896 )

Total net realized gain (loss)                     

    (5,876 )   9,238     (19,852 )   (142 )

NET UNREALIZED APPRECIATION (DEPRECIATION):

                         

Control investments

    (8,797 )   30,285     6,286     33,357  

Affiliate investments

    1,323     3,135     3,131     16,997  

Non-Control/Non-Affiliate investments

    4,547     (8,159 )   3,737     (3,264 )

SBIC debentures

    (319 )   (53 )   4,625     1,296  

Total net unrealized appreciation (depreciation)                                                     

    (3,246 )   25,208     17,779     48,386  

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    (1,079 )   (759 )   (2,745 )   (793 )

Deferred taxes

    5,091     (3,022 )   254     (3,304 )

Income tax benefit (provision)                     

    4,012     (3,781 )   (2,491 )   (4,097 )

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 33,902   $ 68,740   $ 113,555   $ 158,708  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.62   $ 0.63   $ 1.88   $ 1.91  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED

  $ 0.54   $ 1.13   $ 1.81   $ 2.65  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    63,297,943     60,807,096     62,686,139     59,836,527  

   

The accompanying notes are an integral part of these consolidated financial statements

2


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

 
  Common Stock    
   
   
 
 
  Number
of Shares
  Par
Value
  Additional
Paid-In
Capital
  Total
Undistributed
Earnings
  Total Net
Asset Value
 

Balances at December 31, 2017

    58,660,680   $ 586   $ 1,310,780   $ 69,002   $ 1,380,368  

Public offering of common stock, net of offering costs

   
309,895
   
4
   
11,332
   
   
11,336
 

Share-based compensation

            2,303         2,303  

Purchase of vested stock for employee payroll tax withholding

    (5,392 )       (212 )       (212 )

Dividend reinvestment

    42,423         1,589         1,589  

Amortization of directors' deferred compensation

            206         206  

Issuance of restricted stock

    124                  

Dividends to stockholders

                (33,507 )   (33,507 )

Net increase resulting from operations

                34,517     34,517  

Balances at March 31, 2018

    59,007,730   $ 590   $ 1,325,998   $ 70,012   $ 1,396,600  

Public offering of common stock, net of offering costs

    1,122,290     10     42,416         42,426  

Share-based compensation

            2,432         2,432  

Purchase of vested stock for employee payroll tax withholding

    (104,301 )   (1 )   (3,864 )       (3,865 )

Dividend reinvestment

    126,003     2     4,790         4,792  

Amortization of directors' deferred compensation

            213         213  

Issuance of restricted stock, net of forfeited shares

    248,850     2     (2 )        

Dividends to stockholders

                (50,696 )   (50,696 )

Net increase resulting from operations

                55,452     55,452  

Balances at June 30, 2018

    60,400,572   $ 603   $ 1,371,983   $ 74,768   $ 1,447,354  

Public offering of common stock, net of offering costs

    475,334     5     18,570         18,575  

Share-based compensation

            2,147         2,147  

Purchase of vested stock for employee payroll tax withholding

                     

Dividend reinvestment

    84,699     1     3,342         3,343  

Amortization of directors' deferred compensation

            215         215  

Issuance of restricted stock, net of forfeited shares

    1,900     1     (1 )        

Dividends to stockholders

                (34,931 )   (34,931 )

Net increase resulting from operations

                68,739     68,739  

Balances at September 30, 2018

    60,962,505   $ 610   $ 1,396,256   $ 108,576   $ 1,505,442  

Balances at December 31, 2018

    61,264,861   $ 613   $ 1,409,945   $ 65,491   $ 1,476,049  

Public offering of common stock, net of offering costs

    960,684     9     35,376         35,385  

Share-based compensation

            2,329         2,329  

Dividend reinvestment

    96,189     1     3,595         3,596  

Amortization of directors' deferred compensation

            216         216  

Issuance of restricted stock

    52,043     1     (1 )        

Dividends to stockholders

            70     (36,549 )   (36,479 )

Net increase resulting from operations

                41,401     41,401  

Balances at March 31, 2019

    62,373,777   $ 624   $ 1,451,530   $ 70,343   $ 1,522,497  

Public offering of common stock, net of offering costs

    245,989     2     9,416         9,418  

Share-based compensation

            2,378         2,378  

Purchase of vested stock for employee payroll tax withholding

    (90,404 )   (1 )   (3,364 )       (3,365 )

Dividend reinvestment

    133,128     1     5,392         5,393  

Amortization of directors' deferred compensation

            216         216  

Issuance of restricted stock, net of forfeited shares

    262,642     3     (3 )        

Dividends to stockholders

            114     (53,823 )   (53,709 )

Net increase resulting from operations

                38,254     38,254  

Balances at June 30, 2019

    62,925,132   $ 629   $ 1,465,679   $ 54,774   $ 1,521,082  

Public offering of common stock, net of offering costs

    225,864     2     9,398         9,400  

Share-based compensation

            2,572         2,572  

Dividend reinvestment

    88,052     1     3,747         3,748  

Amortization of directors' deferred compensation

            217         217  

Issuance of restricted stock, net of forfeited shares

    75,465     1     (1 )        

Dividends to stockholders

            90     (38,956 )   (38,866 )

Net increase resulting from operations

                33,902     33,902  

Balances at September 30, 2019

    63,314,513   $ 633   $ 1,481,702   $ 49,720   $ 1,532,055  

   

The accompanying notes are an integral part of these consolidated financial statements

3


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

 
  Nine Months Ended September 30,  
 
  2019   2018  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 113,555   $ 158,708  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

             

Investments in portfolio companies

    (477,257 )   (766,483 )

Proceeds from sales and repayments of debt investments in portfolio companies

    331,204     480,738  

Proceeds from sales and return of capital of equity investments in portfolio companies

    32,380     71,010  

Net unrealized appreciation

    (17,779 )   (48,386 )

Net realized loss

    19,852     142  

Accretion of unearned income

    (9,131 )   (11,253 )

Payment-in-kind interest

    (3,482 )   (1,760 )

Cumulative dividends

    (1,975 )   (1,735 )

Share-based compensation expense

    7,279     6,883  

Amortization of deferred financing costs

    2,822     2,482  

Deferred tax (benefit) provision

    (254 )   3,304  

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (9,073 )   (1,170 )

Interest payable

    6,499     1,458  

Accounts payable and other liabilities

    5,759     (282 )

Deferred fees and other

    1,495     2,969  

Net cash provided by (used in) operating activities

    1,894     (103,375 )

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

Proceeds from public offering of common stock, net of offering costs

    54,203     72,337  

Proceeds from public offering of 5.20% Notes due 2024

    250,000      

Dividends paid

    (115,288 )   (108,668 )

Proceeds from issuance of SBIC debentures

        54,000  

Repayments of SBIC debentures

    (34,000 )   (4,000 )

Redemption of 6.125% Notes

        (90,655 )

Proceeds from credit facility

    310,000     516,000  

Repayments on credit facility

    (461,000 )   (330,000 )

Payment of deferred issuance costs and SBIC debenture fees

    (4,344 )   (2,787 )

Purchases of vested stock for employee payroll tax withholding

    (3,365 )   (4,077 )

Net cash provided by (used in) financing activities

    (3,794 )   102,150  

Net decrease in cash and cash equivalents

    (1,900 )   (1,225 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    54,181     51,528  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 52,281   $ 50,303  

Supplemental cash flow disclosures:

             

Interest paid

  $ 27,725   $ 27,948  

Taxes paid

  $ 2,265   $ 4,725  

Operating non-cash activities:

             

Right-of-use assets obtained in exchange for operating lease liabilities

  $ 5,240   $  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 12,737   $ 9,723  

   

The accompanying notes are an integral part of these consolidated financial statements

4


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Control Investments(5)

     

 

 

 

                   

                               

Access Media Holdings, LLC(10)

  July 22, 2015  

Private Cable Operator

                       

         

10% PIK Secured Debt (Maturity—July 22, 2020)(14)(19)

  $ 23,828   $ 23,828   $ 7,603  

         

Preferred Member Units (9,481,500 units)(27)

          9,375     (284 )

         

Member Units (45 units)

          1      

                      33,204     7,319  

                               

ASC Interests, LLC

  August 1, 2013  

Recreational and Educational Shooting Facility

                       

         

11% Secured Debt (Maturity—July 31, 2020)

    1,650     1,635     1,635  

         

Member Units (1,500 units)

          1,500     1,290  

                      3,135     2,925  

                               

Analytical Systems Keco, LLC

  August 16, 2019  

Manufacturer of Liquid and Gas Analyzers

                       

         

LIBOR Plus 10.00% (Floor 2.00%), Current Coupon 12.50%, Secured Debt (Maturity—August 16, 2024)(9)

    5,600     5,229     5,229  

         

Preferred Member Units (3,200 units)

          3,200     3,200  

         

Warrants (420 equivalent shares; Expiration—August 16, 2029; Strike price—$0.01 per share)

          316     316  

                      8,745     8,745  

                               

ATS Workholding, LLC(10)

  March 10, 2014  

Manufacturer of Machine
Cutting Tools and
Accessories

                       

         

5% Secured Debt (Maturity—November 16, 2021)

    4,919     4,635     4,491  

         

Preferred Member Units (3,725,862 units)

          3,726     1,835  

                      8,361     6,326  

                               

Bond-Coat, Inc.

  December 28, 2012  

Casing and Tubing Coating Services

                       

         

15% Secured Debt (Maturity—December 28, 2020)

    11,596     11,445     11,445  

         

Common Stock (57,508 shares)

          6,350     8,300  

                      17,795     19,745  

                               

Brewer Crane Holdings, LLC

  January 9, 2018  

Provider of Crane Rental and Operating Services

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.10%, Secured Debt (Maturity—January 9, 2023)(9)

    9,176     9,108     9,108  

         

Preferred Member Units (2,950 units)(8)

          4,280     4,280  

                      13,388     13,388  

                               

5


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Bridge Capital Solutions Corporation

  April 18, 2012  

Financial Services and Cash Flow Solutions Provider

                       

         

13% Secured Debt (Maturity—July 25, 2021)

    7,500     6,524     6,524  

         

Warrants (82 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)

          2,132     3,550  

         

13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)

    1,000     996     996  

         

Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)

          1,000     1,000  

                      10,652     12,070  

                               

Café Brazil, LLC

  April 20, 2004  

Casual Restaurant Group

                       

         

Member Units (1,233 units)(8)

          1,742     3,810  

                               

California Splendor Holdings LLC

  March 30, 2018  

Processor of Frozen Fruits

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity—March 30, 2023)(9)

    14,979     14,844     14,844  

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity—March 30, 2023)(9)

    28,000     27,789     27,789  

         

Preferred Member Units (7,000 units)(8)

          7,178     7,178  

         

Preferred Member Units (6,157 units)(8)

          10,775     7,382  

                      60,586     57,193  

                               

CBT Nuggets, LLC

  June 1, 2006  

Produces and Sells IT Training Certification Videos

                       

         

Member Units (416 units)(8)

          1,300     57,470  

                               

Centre Technologies Holdings, LLC

  January 4, 2019  

Provider of IT Hardware Services and Software Solutions

                       

         

LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.13%, Secured Debt (Maturity—January 4, 2024)(9)

    12,240     12,131     12,131  

         

Preferred Member Units (12,696 units)

          5,840     5,840  

                      17,971     17,971  

                               

Chamberlin Holding LLC

  February 26, 2018  

Roofing and Waterproofing Specialty Contractor

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.25%, Secured Debt (Maturity—February 26, 2023)(9)

    18,875     18,736     18,875  

         

Member Units (4,347 units)(8)

          11,440     23,590  

         

Member Units (Chamberlin Langfield Real Estate, LLC) (1,047,146 units)(8)

          1,047     1,047  

                      31,223     43,512  

                               

Charps, LLC

  February 3, 2017  

Pipeline Maintenance and Construction

                       

         

15% Secured Debt (Maturity—June 5, 2022)

    2,000     2,000     2,000  

         

Preferred Member Units (1,600 units)(8)

          400     5,470  

                      2,400     7,470  

                               

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Clad-Rex Steel, LLC

  December 20, 2016  

Specialty Manufacturer of Vinyl-Clad Metal

                       

         

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity—December 20, 2021)(9)

    11,280     11,222     11,280  

         

Member Units (717 units)(8)

          7,280     10,020  

         

10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)

    1,143     1,132     1,143  

         

Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)

          210     350  

                      19,844     22,793  

                               

CMS Minerals Investments

  January 30, 2015  

Oil & Gas Exploration & Production

                       

         

Member Units (CMS Minerals II, LLC) (100 units)(8)

          2,432     1,946  

                               

CompareNetworks Topco, LLC

  January 29, 2019  

Internet Publishing and Web Search Portals

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.13%, Secured Debt (Maturity—January 29, 2024)(9)

    8,750     8,666     8,666  

         

Preferred Member Units (1,975 units)

          1,975     3,010  

                      10,641     11,676  

                               

Copper Trail Fund Investments(12) (13)

  July 17, 2017  

Investment Partnership

                       

         

LP Interests (CTMH, LP) (Fully diluted 38.8%)

          872     872  

                               

Datacom, LLC

  May 30, 2014  

Technology and Telecommunications Provider

                       

         

8% Secured Debt (Maturity—May 31, 2021)(14)

    1,800     1,800     1,554  

         

10.50% PIK Secured Debt (Maturity—May 31, 2021)(14)(19)

    12,511     12,479     10,064  

         

Class A Preferred Member Units

          1,294      

         

Class B Preferred Member Units (6,453 units)

          6,030      

                      21,603     11,618  

                               

Digital Products Holdings LLC

  April 1, 2018  

Designer and Distributor of Consumer Electronics

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.13%, Secured Debt (Maturity—April 1, 2023)(9)

    19,950     19,797     19,364  

         

Preferred Member Units (3,857 shares)(8)

          9,501     7,670  

                      29,298     27,034  

                               

Direct Marketing Solutions, Inc.

  February 13, 2018  

Provider of Omni-Channel Direct Marketing Services

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.13%, Secured Debt (Maturity—February 13, 2023)(9)

    16,832     16,696     16,821  

         

Preferred Stock (8,400 shares)

          8,400     17,880  

                      25,096     34,701  

                               

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Gamber-Johnson Holdings, LLC

  June 24, 2016  

Manufacturer of Ruggedized Computer Mounting Systems

                       

         

LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 9.10%, Secured Debt (Maturity—June 24, 2021)(9)

    19,022     18,938     19,022  

         

Member Units (8,619 units)(8)

          14,844     46,510  

                      33,782     65,532  

                               

Garreco, LLC

  July 15, 2013  

Manufacturer and Supplier of Dental Products

                       

         

LIBOR Plus 8.00% (Floor 1.00%, Ceiling 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—March 31, 2020)(9)

    4,519     4,511     4,511  

         

Member Units (1,200 units)(8)

          1,200     2,500  

                      5,711     7,011  

                               

GRT Rubber Technologies LLC

  December 19, 2014  

Manufacturer of Engineered Rubber Products

                       

         

LIBOR Plus 7.00%, Current Coupon 9.10%, Secured Debt (Maturity—December 31, 2023)

    15,016     15,009     15,016  

         

Member Units (5,879 units)(8)

          13,065     45,970  

                      28,074     60,986  

                               

Guerdon Modular Holdings, Inc.

  August 13, 2014  

Multi-Family and Commercial Modular Construction Company

                       

         

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity—October 1, 2019)(9)(14)

    464     464     464  

         

16% Secured Debt (Maturity—October 1, 2019)(14)

    12,588     12,588     8,307  

         

Preferred Stock (404,998 shares)

          1,140      

         

Common Stock (212,033 shares)

          2,983      

         

Warrants (6,208,877 equivalent shares; Expiration—April 25, 2028; Strike price—$0.01 per share)

               

                      17,175     8,771  

                               

Gulf Manufacturing, LLC

  August 31, 2007  

Manufacturer of Specialty Fabricated Industrial Piping Products

                       

         

Member Units (438 units)(8)

          2,980     9,750  

                               

Gulf Publishing Holdings, LLC

  April 29, 2016  

Energy Industry Focused Media and Publishing

                       

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity—September 30, 2020)(9)

    320     320     320  

         

12.5% Secured Debt (Maturity—April 29, 2021)

    12,535     12,485     12,485  

         

Member Units (3,681 units)

          3,681     3,850  

                      16,486     16,655  

                               

Harborside Holdings, LLC

  March 20, 2017  

Real Estate Holding Company

                       

         

Member units (100 units)

          6,506     9,560  

                               

Harris Preston Fund Investments(12)(13)

  October 1, 2017  

Investment Partnership

                       

         

LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)

          1,735     2,019  

                               

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Harrison Hydra-Gen, Ltd.

  June 4, 2010  

Manufacturer of Hydraulic Generators

                       

         

Common Stock (107,456 shares)(8)

          718     8,170  

                               

IDX Broker, LLC

  November 15, 2013  

Provider of Marketing and CRM Tools for the Real Estate Industry

                       

         

11.5% Secured Debt (Maturity—November 15, 2020)

    13,700     13,647     13,700  

         

Preferred Member Units (5,607 units)(8)

          5,952     14,510  

                      19,599     28,210  

                               

Jensen Jewelers of Idaho, LLC

  November 14, 2006  

Retail Jewelry Store

                       

         

Prime Plus 6.75% (Floor 2.00%), Current Coupon 12.00%, Secured Debt (Maturity—November 14, 2019)(9)

    2,905     2,902     2,905  

         

Member Units (627 units)(8)

          811     7,020  

                      3,713     9,925  

                               

KBK Industries, LLC

  January 23, 2006  

Manufacturer of Specialty Oilfield and Industrial Products

                       

         

Member Units (325 units)(8)

          783     13,320  

                               

Kickhaefer Manufacturing Company, LLC

  October 31, 2018  

Precision Metal Parts Manufacturing

                       

         

11.5% Secured Debt (Maturity—October 31, 2023)

    27,200     26,953     26,953  

         

Member Units (581 units)

          12,240     12,240  

         

9.0% Secured Debt (Maturity—October 31, 2048)

    3,985     3,946     3,946  

         

Member Units (KMC RE Investor, LLC) (800 units)(8)

          992     992  

                      44,131     44,131  

                               

Market Force Information, LLC

  July 28, 2017  

Provider of Customer Experience Management Services

                       

         

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity—July 28, 2022)(9)

    2,765     2,765     2,765  

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.13%, Secured Debt (Maturity—July 28, 2022)(9)

    22,800     22,654     22,654  

         

Member Units (657,113 units)

          14,700     7,050  

                      40,119     32,469  

                               

MH Corbin Holding LLC

  August 31, 2015  

Manufacturer and Distributor of Traffic Safety Products

                       

         

5% Current / 5% PIK Secured Debt (Maturity—March 31, 2022)(19)

    8,777     8,695     8,777  

         

Preferred Member Units (66,000 shares)

          4,400     4,770  

         

Preferred Member Units (4,000 shares)

          6,000     20  

                      19,095     13,567  

                               

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Mid-Columbia Lumber Products, LLC

  December 18, 2006  

Manufacturer of Finger-Jointed Lumber Products

                       

         

10% Secured Debt (Maturity—January 15, 2020)

    1,750     1,749     1,749  

         

12% Secured Debt (Maturity—January 15, 2020)

    3,900     3,893     3,893  

         

Member Units (7,874 units)

          3,239     530  

         

9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)

    712     712     712  

         

Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)

          790     1,640  

                      10,383     8,524  

                               

MSC Adviser I, LLC(16)

  November 22, 2013  

Third Party Investment Advisory Services

                       

         

Member Units (Fully diluted 100.0%)(8)

              70,328  

                               

Mystic Logistics Holdings, LLC

  August 18, 2014  

Logistics and Distribution Services Provider for Large Volume Mailers

                       

         

12% Secured Debt (Maturity—August 15, 2019)(17)

    6,400     6,400     6,400  

         

Common Stock (5,873 shares)(8)

          2,720     4,810  

                      9,120     11,210  

                               

NAPCO Precast, LLC

  January 31, 2008  

Precast Concrete Manufacturing

                       

         

Member Units (2,955 units)(8)

          2,975     15,580  

                               

NexRev LLC

  February 28, 2018  

Provider of Energy Efficiency Products & Services

                       

         

11% Secured Debt (Maturity—February 28, 2023)

    17,004     16,878     16,878  

         

Preferred Member Units (86,400,000 units)(8)

          6,880     6,880  

                      23,758     23,758  

                               

NRI Clinical Research, LLC

  September 8, 2011  

Clinical Research Service Provider

                       

         

14% Secured Debt (Maturity—June 8, 2022)

    6,510     6,397     6,510  

         

Warrants (251,723 equivalent units; Expiration—June 8, 2027; Strike price—$0.01 per unit)

          252     1,050  

         

Member Units (1,454,167 units)(8)

          765     4,218  

                      7,414     11,778  

                               

NRP Jones, LLC

  December 22, 2011  

Manufacturer of Hoses, Fittings and Assemblies

                       

         

12% Secured Debt (Maturity—March 20, 2023)

    6,376     6,376     6,376  

         

Member Units (65,962 units)(8)

          3,717     5,520  

                      10,093     11,896  

                               

NuStep, LLC

  January 31, 2017  

Designer, Manufacturer and Distributor of Fitness Equipment

                       

         

12% Secured Debt (Maturity—January 31, 2022)

    20,600     20,488     20,488  

         

Preferred Member Units (406 units)

          10,200     10,200  

                      30,688     30,688  

                               

OMi Holdings, Inc.

  April 1, 2008  

Manufacturer of Overhead Cranes

                       

         

Common Stock (1,500 shares)(8)

          1,080     16,950  

                               

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Pegasus Research Group, LLC

  January 6, 2011  

Provider of Telemarketing and Data Services

                       

         

Member Units (460 units)

          1,290     7,190  

                               

PPL RVs, Inc.

  June 10, 2010  

Recreational Vehicle Dealer

                       

         

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 9.32%, Secured Debt (Maturity—November 15, 2021)(9)

    13,845     13,779     13,779  

         

Common Stock (1,962 shares)

          2,150     8,880  

                      15,929     22,659  

                               

Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)

  February 1, 2011  

Noise Abatement Service Provider

                       

         

13% Secured Debt (Maturity—April 30, 2020)

    6,397     6,365     6,396  

         

Preferred Member Units (19,631 units)(8)

          4,600     12,740  

         

Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)

          1,200     1,010  

                      12,165     20,146  

                               

Quality Lease Service, LLC

  June 8, 2015  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

         

Member Units (1,000 units)

          10,813     10,580  

                               

River Aggregates, LLC

  March 30, 2011  

Processor of Construction Aggregates

                       

         

Zero Coupon Secured Debt (Maturity—June 30, 2018)(17)

    750     750     721  

         

Member Units (1,150 units)

          1,150     4,610  

         

Member Units (RA Properties, LLC) (1,500 units)

          369     3,040  

                      2,269     8,371  

                               

Tedder Industries, LLC

  August 31, 2018  

Manufacturer of Firearm Holsters and Accessories

                       

         

12% Secured Debt (Maturity—August 31, 2020)

    160     160     160  

         

12% Secured Debt (Maturity—August 31, 2023)

    16,400     16,265     16,265  

         

Preferred Member Units (479 units)

          8,136     8,136  

                      24,561     24,561  

                               

The MPI Group, LLC

  October 2, 2007  

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

         

9% Secured Debt (Maturity—October 2, 2019)

    2,924     2,924     2,736  

         

Series A Preferred Units (2,500 units)

          2,500     10  

         

Warrants (1,424 equivalent units; Expiration—July 1, 2024; Strike price—$0.01 per unit)

          1,096      

         

Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)

          2,300     2,480  

                      8,820     5,226  

                               

Trantech Radiator Topco, LLC

  May 31, 2019  

Transformer Cooling Products and Services

                       

         

12% Secured Debt (Maturity—May 31, 2024)

    9,600     9,494     9,494  

         

Common Stock (615 shares)(8)

          4,655     4,655  

                      14,149     14,149  

                               

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Vision Interests, Inc.

  June 5, 2007  

Manufacturer / Installer of Commercial Signage

                       

         

13% Secured Debt (Maturity—September 30, 2019)(17)

    2,028     2,028     2,028  

         

Series A Preferred Stock (3,000,000 shares)

          3,000     4,090  

         

Common Stock (1,126,242 shares)

          3,706     409  

                      8,734     6,527  

                               

Ziegler's NYPD, LLC

  October 1, 2008  

Casual Restaurant Group

                       

         

6.5% Secured Debt (Maturity—October 1, 2019)

    1,000     1,000     1,000  

         

12% Secured Debt (Maturity—October 1, 2019)

    625     625     625  

         

14% Secured Debt (Maturity—October 1, 2019)

    2,750     2,750     2,750  

         

Warrants (587 equivalent units; Expiration—October 1, 2019; Strike price—$0.01 per unit)

          600      

         

Preferred Member Units (10,072 units)

          2,834     1,410  

                      7,809     5,785  

Subtotal Control Investments (66.9% of net assets at fair value)

  $ 762,945   $ 1,024,566  

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2019

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(26)
  Business Description
  Type of Investment(2)(3)(25)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   
                                 

Affiliate Investments(6)

     

 

 

 

                   

                               

AFG Capital Group, LLC

  November 7, 2014  

Provider of Rent-to-Own Financing Solutions and Services

                       

         

10% Secured Debt (Maturity—May 25, 2022)

  $ 924   $ 924   $ 924  

         

Preferred Member Units (186 units)

          1,200     5,040  

                      2,124     5,964  

                               

American Trailer Rental Group LLC

  June 7, 2017  

Provider of Short-term Trailer and Container Rental

                       

         

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.58%, Secured Debt (Maturity—June 7, 2022)(9)

    27,188     26,990     27,188  

         

Member Units (Milton Meisler Holdings LLC) (48,555 units)

          4,855     8,380  

                      31,845     35,568  

                               

BBB Tank Services, LLC

  April 8, 2016  

Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.10%, (Maturity—April 8, 2021)(9)

    4,800     4,681     4,681  

         

Preferred Stock (non-voting)(8)

          127     127  

         

Member Units (800,000 units)

          800     120  

                      5,608     4,928  

                               

Boccella Precast Products LLC

  June 30, 2017  

Manufacturer of Precast Hollow Core Concrete

                       

         

LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 14.32%, Secured Debt (Maturity—June 30, 2022)(9)

    13,244     13,095     13,244  

         

Member Units (2,160,000 units)(8)

          2,256     5,900  

                      15,351     19,144  

                               

Buca C, LLC

  June 30, 2015  

Casual Restaurant Group

                       

         

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.33%, Secured Debt (Maturity—June 30, 2020)(9)

    19,004     18,970     18,783  

         

Preferred Member Units (6 units; 6% cumulative)(8)(19)

          4,631     4,631  

                      23,601     23,414  

                               

CAI Software LLC

  October 10, 2014  

Provider of Specialized Enterprise Resource Planning Software

                       

         

12% Secured Debt (Maturity—December 7, 2023)

    9,160     9,073     9,160  

         

Member Units (66,968 units)(8)

          751     4,940  

                      9,824     14,100