Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2020

OR

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  No 

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  No 

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

Accelerated filer

Non-accelerated filer

Smaller reporting company
Emerging growth company

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. 

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

The number of shares outstanding of the issuer’s common stock as of November 5, 2020 was 66,272,522.


Table of Contents

TABLE OF CONTENTS

PART I

FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements

Consolidated Balance Sheets—September 30, 2020 (unaudited) and December 31, 2019

1

Consolidated Statements of Operations (unaudited)—Three and nine months ended September 30, 2020 and 2019

2

Consolidated Statements of Changes in Net Assets (unaudited)—Nine months ended September 30, 2020 and 2019

3

Consolidated Statements of Cash Flows (unaudited)—Nine months ended September 30, 2020 and 2019

4

Consolidated Schedule of Investments (unaudited)—September 30, 2020

5

Consolidated Schedule of Investments—December 31, 2019

28

Notes to Consolidated Financial Statements (unaudited)

51

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Nine months ended September 30, 2020 and 2019

85

Item 2.

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

95

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

115

Item 4.

Controls and Procedures

116

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

116

Item 1A.

Risk Factors

117

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

117

Item 5.

Other Information

117

Item 6.

Exhibits

118

Signatures

119


Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

September 30, 

December 31, 

    

2020

    

2019

(Unaudited)

ASSETS

 

  

 

  

Investments at fair value:

 

  

 

  

Control investments (cost: $801,453 and $778,367 as of September 30, 2020 and December 31, 2019, respectively)

$

1,020,713

$

1,032,721

Affiliate investments (cost: $396,054 and $351,764 as of September 30, 2020 and December 31, 2019, respectively)

 

348,030

 

330,287

Non‑Control/Non‑Affiliate investments (cost: $1,330,738 and $1,297,587 as of September 30, 2020 and December 31, 2019, respectively)

 

1,215,902

 

1,239,316

Total investments (cost: $2,528,245 and $2,427,718 as of September 30, 2020 and December 31, 2019, respectively)

 

2,584,645

 

2,602,324

Cash and cash equivalents

 

27,121

 

55,246

Interest receivable and other assets

 

42,758

 

50,458

Deferred financing costs (net of accumulated amortization of $8,225 and $7,501 as of September 30, 2020 and December 31, 2019, respectively)

 

2,944

 

3,521

Total assets

$

2,657,468

$

2,711,549

LIABILITIES

 

 

  

Credit facility

$

253,000

$

300,000

SBIC debentures (par: $304,800 ($40,000 due within one year) and $311,800 as of September 30, 2020 and December 31, 2019, respectively)

 

298,835

 

306,188

5.20% Notes due 2024 (par: $450,000 and $325,000 as of September 30, 2020 and December 31, 2019, respectively)

 

451,953

 

324,595

4.50% Notes due 2022 (par: $185,000 as of both September 30, 2020 and December 31, 2019)

 

183,685

 

183,229

Accounts payable and other liabilities

 

19,136

 

24,532

Interest payable

 

13,392

 

7,292

Dividend payable

 

13,554

 

13,174

Deferred tax liability, net

 

731

 

16,149

Total liabilities

 

1,234,286

 

1,175,159

Commitments and contingencies (Note K)

 

 

  

NET ASSETS

 

 

  

Common stock, $0.01 par value per share (150,000,000 shares authorized; 66,135,837 and 64,241,341 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively)

 

661

 

643

Additional paid‑in capital

 

1,569,642

 

1,512,435

Total undistributed (overdistributed) earnings

 

(147,121)

 

23,312

Total net assets

 

1,423,182

 

1,536,390

Total liabilities and net assets

$

2,657,468

$

2,711,549

NET ASSET VALUE PER SHARE

$

21.52

$

23.91

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

Nine Months Ended

    

September 30, 

September 30, 

    

    

2020

    

2019

    

2020

    

2019

INVESTMENT INCOME:

 

  

 

  

 

  

 

  

 

Interest, fee and dividend income:

 

  

 

  

 

  

 

  

 

Control investments

$

18,558

$

23,173

$

57,357

$

70,480

Affiliate investments

 

8,255

 

8,009

 

23,626

 

25,426

Non‑Control/Non‑Affiliate investments

 

25,141

 

28,886

 

79,126

 

86,818

Total investment income

 

51,954

 

60,068

 

160,109

 

182,724

EXPENSES:

 

 

 

 

Interest

 

(12,489)

 

(12,893)

 

(36,827)

 

(37,138)

Compensation

 

(4,980)

 

(4,322)

 

(12,280)

 

(15,907)

General and administrative

 

(3,354)

 

(2,920)

 

(9,827)

 

(9,282)

Share‑based compensation

 

(2,561)

 

(2,572)

 

(8,215)

 

(7,279)

Expenses allocated to the External Investment Manager

 

1,892

 

1,651

 

5,340

 

5,001

Total expenses

 

(21,492)

 

(21,056)

 

(61,809)

 

(64,605)

NET INVESTMENT INCOME

 

30,462

 

39,012

 

98,300

 

118,119

NET REALIZED GAIN (LOSS):

 

 

 

 

Control investments

 

4,041

 

5,869

 

(15,825)

 

4,926

Affiliate investments

 

(172)

 

1,850

 

(407)

 

(602)

Non‑Control/Non‑Affiliate investments

 

(17,743)

 

(13,595)

 

(28,091)

 

(18,487)

Realized loss on extinguishment of debt

 

 

 

(534)

 

(5,689)

Total net realized loss

 

(13,874)

 

(5,876)

 

(44,857)

 

(19,852)

NET UNREALIZED APPRECIATION (DEPRECIATION):

 

 

 

 

Control investments

 

7,139

 

(8,797)

 

(35,096)

 

6,286

Affiliate investments

 

2,406

 

1,323

 

(26,883)

 

3,131

Non‑Control/Non‑Affiliate investments

 

53,569

 

4,547

 

(56,051)

 

3,737

SBIC debentures

 

 

(319)

 

460

 

4,625

Total net unrealized appreciation (depreciation)

 

63,114

 

(3,246)

 

(117,570)

 

17,779

INCOME TAXES:

 

 

 

 

Federal and state income, excise and other taxes

 

(1,165)

 

(1,079)

 

(1,420)

 

(2,745)

Deferred taxes

 

(342)

 

5,091

 

15,673

 

254

Income tax benefit (provision)

 

(1,507)

 

4,012

 

14,253

 

(2,491)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

$

78,195

$

33,902

$

(49,874)

$

113,555

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

$

0.46

$

0.62

$

1.50

$

1.88

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

$

1.18

$

0.54

$

(0.76)

$

1.81

WEIGHTED AVERAGE SHARES
OUTSTANDING—BASIC AND DILUTED

 

66,110,555

 

63,297,943

 

65,319,784

 

62,686,139

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

2


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MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

Total

Common Stock

Additional

Undistributed

Number of

Par

PaidIn

(Overdistributed)

Total Net

    

Shares

    

Value

    

Capital

    

Earnings

    

Asset Value

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

Balances at December 31, 2019

 

64,252,937

$

643

$

1,512,435

$

23,312

$

1,536,390

Public offering of common stock, net of offering costs

 

91,458

 

1

 

3,854

 

 

3,855

Share‑based compensation

 

 

 

2,837

 

 

2,837

Purchase of vested stock for employee payroll tax withholding

 

(851)

 

 

(29)

 

 

(29)

Dividend reinvestment

 

108,722

 

1

 

3,929

 

 

3,930

Amortization of directors’ deferred compensation

 

 

 

238

 

 

238

Issuance of restricted stock, net of forfeited shares

 

10,383

 

 

 

 

Dividends to stockholders

 

 

 

93

 

(39,706)

 

(39,613)

Net decrease resulting from operations

 

 

 

 

(171,438)

 

(171,438)

Balances at March 31, 2020

 

64,462,649

$

645

$

1,523,357

$

(187,832)

$

1,336,170

Public offering of common stock, net of offering costs

824,968

 

9

 

26,007

 

 

26,016

Share‑based compensation

 

 

2,817

 

 

2,817

Purchase of vested stock for employee payroll tax withholding

(84,094)

 

(1)

 

(1,730)

 

 

(1,731)

Dividend reinvestment

146,229

 

1

 

4,158

 

 

4,159

Amortization of directors’ deferred compensation

 

 

224

 

 

224

Issuance of restricted stock, net of forfeited shares

414,053

 

4

 

(4)

 

 

Dividends to stockholders

 

 

99

 

(40,179)

 

(40,080)

Net increase resulting from operations

 

 

 

43,369

 

43,369

Balances at June 30, 2020

65,763,805

$

658

$

1,554,928

$

(184,642)

$

1,370,944

Public offering of common stock, net of offering costs

250,949

 

2

 

7,741

 

 

7,743

Share‑based compensation

 

 

2,561

 

 

2,561

Purchase of vested stock for employee payroll tax withholding

(1,998)

 

 

(7)

 

 

(7)

Dividend reinvestment

132,583

 

1

 

4,129

 

 

4,130

Amortization of directors’ deferred compensation

 

 

195

 

 

195

Issuance of restricted stock, net of forfeited shares

(6,899)

 

 

 

 

Dividends to stockholders

 

 

95

 

(40,674)

 

(40,579)

Net increase resulting from operations

 

 

 

78,195

 

78,195

Balances at September 30, 2020

66,138,440

$

661

$

1,569,642

$

(147,121)

$

1,423,182

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)

Nine Months Ended

    

September 30, 

    

2020

    

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net increase (decrease) in net assets resulting from operations

$

(49,874)

$

113,555

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

Investments in portfolio companies

(414,574)

(477,257)

Proceeds from sales and repayments of debt investments in portfolio companies

255,147

331,204

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

21,210

32,380

Net unrealized (appreciation) depreciation

117,570

(17,779)

Net realized loss

44,857

19,852

Accretion of unearned income

(8,239)

(9,131)

Payment-in-kind interest

(3,816)

(3,482)

Cumulative dividends

(1,404)

(1,975)

Share-based compensation expense

8,215

7,279

Amortization of deferred financing costs

1,986

2,822

Deferred tax benefit

(15,673)

(254)

Changes in other assets and liabilities:

Interest receivable and other assets

12,661

(9,073)

Interest payable

6,100

6,499

Accounts payable and other liabilities

(4,739)

5,759

Deferred fees and other

2,296

1,495

Net cash provided by (used in) operating activities

(28,277)

1,894

CASH FLOWS FROM FINANCING ACTIVITIES

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

37,614

54,203

Proceeds from public offering of 5.20% Notes due 2024

125,000

250,000

Dividends paid

(107,673)

(115,288)

Proceeds from issuance of SBIC debentures

35,000

-

Repayments of SBIC debentures

(42,000)

(34,000)

Proceeds from credit facility

292,000

310,000

Repayments on credit facility

(339,000)

(461,000)

Debt issuance premiums (costs), net

978

(4,344)

Purchases of vested stock for employee payroll tax withholding

(1,767)

(3,365)

Net cash provided by (used in) financing activities

152

(3,794)

Net decrease in cash and cash equivalents

(28,125)

(1,900)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

55,246

54,181

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

27,121

$

52,281

Supplemental cash flow disclosures:

Interest paid

$

28,646

$

27,725

Taxes paid

$

2,439

$

2,265

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

$

12,219

$

12,737

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, 2020

(dollars in thousands)

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

10.00% PIK Secured Debt (Maturity - July 22, 2020) (14) (17) (19)

$

23,828

$

23,828

$

3,937

Preferred Member Units (9,481,500 units) (24)

9,375

(284)

Member Units (45 units)

1

-

33,204

3,653

ASC Interests, LLC

August 1, 2013

Recreational and Educational Shooting Facility

13.00% Secured Debt (Maturity - July 31, 2022)

1,650

1,611

1,611

Member Units (1,500 units)

1,500

1,050

3,111

2,661

Analytical Systems Keco, LLC

August 16, 2019

Manufacturer of Liquid and Gas Analyzers

LIBOR Plus 10.00% (Floor 2.00%), Current Coupon
12.00%, Secured Debt (Maturity - August 16, 2024) (9)

5,225

4,925

4,925

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

350

8,441

8,475

ATS Workholding, LLC (10)

March 10, 2014

Manufacturer of Machine Cutting Tools and Accessories

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

4,940

4,781

3,407

Preferred Member Units (3,725,862 units)

3,726

-

8,507

3,407

Bond-Coat, Inc.

December 28, 2012

Casing and Tubing Coating Services

Common Stock (57,508 shares)

6,350

3,310

Brewer Crane Holdings, LLC

January 9, 2018

Provider of Crane Rental and Operating Services

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon
11.00%, Secured Debt (Maturity - January 9, 2023) (9)

8,680

8,632

8,632

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

4,280

5,610

12,912

14,242

Bridge Capital Solutions Corporation

April 18, 2012

Financial Services and Cash Flow Solutions Provider

13.00% Secured Debt (Maturity - December 11, 2024)

8,813

8,240

8,240

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

2,132

3,000

13.00% Secured Debt (Mercury Service Group, LLC)
(Maturity - December 11, 2024)

1,000

998

998

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

1,000

1,000

12,370

13,238

5


Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2020

(dollars in thousands)

Portfolio Company (1) (20)

Investment Date (26)

Business Description

Type of Investment (2) (3) (25)

Principal (4)

Cost (4)

Fair Value (18)

Café Brazil, LLC

April 20, 2004

Casual Restaurant Group

Member Units (1,233 units) (8)

1,742

2,030

California Splendor Holdings LLC

March 30, 2018

Processor of Frozen Fruits

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%,
Secured Debt (Maturity - March 30, 2023) (9)

19,600

19,504

19,464

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%,
Secured Debt (Maturity - March 30, 2023) (9)

28,000

27,840

27,775

Preferred Member Units (6,725 units) (8)

7,980

7,980

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

10,775

6,241

66,099

61,460

CBT Nuggets, LLC ("CBT")

June 1, 2006

Produces and Sells IT Training Certification Videos

Member Units (416 units) (8)

1,300

45,730

Centre Technologies Holdings, LLC

January 4, 2019

Provider of IT Hardware Services and Software Solutions

LIBOR Plus 10.00% (Floor 2.00%), Current Coupon 12.00%,
Secured Debt (Maturity - January 4, 2024) (9)

11,781

11,696

11,696

Preferred Member Units (12,696 units)

5,840

6,060

17,536

17,756

Chamberlin Holding LLC

February 26, 2018

Roofing and Waterproofing Specialty Contractor

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%,
Secured Debt (Maturity - February 26, 2023) (9)

15,973

15,884

15,973

Member Units (4,347 units) (8)

11,440

28,000

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

1,047

920

28,371

44,893

Charps, LLC

February 3, 2017

Pipeline Maintenance and Construction

8.67% Current / 1.33% PIK, Current Coupon plus PIK 10.00% (Maturity - January 31, 2024) (19)

9,792

7,910

8,507

15.00% Secured Debt (Maturity - June 5, 2022)

1,846

1,846

1,846

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

400

9,400

10,156

19,753

Clad-Rex Steel, LLC

December 20, 2016

Specialty Manufacturer of Vinyl-Clad Metal

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%,
Secured Debt (Maturity - December 20, 2021) (9)

10,880

10,847

10,847

Member Units (717 units) (8)

7,280

8,610

10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC)
(Maturity - December 20, 2036)

1,117

1,107

1,107

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

210

460

19,444

21,024

6


Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2020

(dollars in thousands)

Portfolio Company (1) (20)

Investment Date (26)

Business Description

Type of Investment (2) (3) (25)

Principal (4)

Cost (4)

Fair Value (18)

CMS Minerals Investments

January 30, 2015

Oil & Gas Exploration & Production

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

2,252

1,697

Cody Pools, Inc.

March 6, 2020

Designer of Residential and Commercial Pools

LIBOR Plus 10.50% (Floor 1.75%), Current Coupon 12.25%,
Secured Debt (Maturity - March 6, 2025) (9)

15,600

15,457

15,600

Preferred Member Units (587 units)

8,317

11,840

23,774

27,440

CompareNetworks Topco, LLC

January 29, 2019

Internet Publishing and Web Search Portals

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%,
Secured Debt (Maturity - January 29, 2024) (9)

9,454

9,397

9,397

Preferred Member Units (1,975 units)

1,975

5,360

11,372

14,757

Copper Trail Fund Investments (12) (13)

July 17, 2017

Investment Partnership

LP Interests (CTMH, LP) (Fully diluted 38.80%)

747

747

Datacom, LLC

May 30, 2014

Technology and Telecommunications Provider

8.00% Secured Debt (Maturity - May 31, 2021) (14)

1,800

1,800

1,615

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

12,507

12,475

10,142

Class A Preferred Member Units

1,294

-

Class B Preferred Member Units (6,453 units)

6,030

-

21,599

11,757

Digital Products Holdings LLC

April 1, 2018

Designer and Distributor of Consumer Electronics

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%,
Secured Debt (Maturity - April 1, 2023) (9)

18,503

18,396

18,013

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

9,501

6,908

27,897

24,921

Direct Marketing Solutions, Inc.

February 13, 2018

Provider of Omni-Channel Direct Marketing Services

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon
12.00%, Secured Debt (Maturity - February 13, 2023) (9)

15,090

14,998

15,090

Preferred Stock (8,400 shares)

8,400

20,060

23,398

35,150

Gamber-Johnson Holdings, LLC ("GJH")

June 24, 2016

Manufacturer of Ruggedized Computer Mounting Systems

LIBOR Plus 6.50% (Floor 2.00%), Current Coupon 8.50%,
Secured Debt (Maturity - June 24, 2021) (9)

19,838

19,792

19,838

Member Units (8,619 units) (8)

14,844

53,240

34,636

73,078

7


Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2020

(dollars in thousands)

Portfolio Company (1) (20)

Investment Date (26)

Business Description

Type of Investment (2) (3) (25)

Principal (4)

Cost (4)

Fair Value (18)

Garreco, LLC

July 15, 2013

Manufacturer and Supplier of Dental Products

LIBOR Plus 8.00% (Floor 1.00%, Ceiling 1.50%), Current
Coupon 9.00%, Secured Debt (Maturity - January 31, 2021) (9)

4,519

4,519

4,519

Member Units (1,200 units)

1,200

1,700

5,719

6,219

GRT Rubber Technologies LLC ("GRT")

December 19, 2014

Manufacturer of Engineered Rubber Products

LIBOR Plus 7.00%, Current Coupon 7.16%,
Secured Debt (Maturity - December 31, 2023)

16,775

16,775

16,775

Member Units (5,879 units) (8)

13,065

45,430

29,840

62,205

Gulf Manufacturing, LLC

August 31, 2007

Manufacturer of Specialty Fabricated Industrial Piping Products

Member Units (438 units) (8)

2,980

4,400

Gulf Publishing Holdings, LLC

April 29, 2016

Energy Industry Focused Media and Publishing

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 5.25% /
5.25% PIK, Current Coupon Plus PIK 10.50%, Secured
Debt (Maturity - September 30, 2020) (9) (17) (19)

247

247

247

6.25% Current / 6.25% PIK Secured Debt (Maturity -
April 29, 2021) (19)

12,939

12,919

11,828

Member Units (3,681 units)

3,681

-

16,847

12,075

Harborside Holdings, LLC

March 20, 2017

Real Estate Holding Company

Member units (100 units)

6,606

5,020

Harris Preston Fund Investments (12) (13)

October 1, 2017

Investment Partnership

LP Interests (2717 MH, L.P.) (Fully diluted 49.30%)

2,735

3,277

Harrison Hydra-Gen, Ltd.

June 4, 2010

Manufacturer of Hydraulic Generators

Common Stock (107,456 shares) (8)

718

5,640

Jensen Jewelers of Idaho, LLC

November 14, 2006

Retail Jewelry Store

Prime Plus 6.75% (Floor 2.00%), Current Coupon
10.00%, Secured Debt (Maturity - November 14,
2023) (9)

3,700

3,669

3,654

Member Units (627 units) (8)

811

7,270

4,480

10,924

J&J Services, Inc.

October 31, 2019

Provider of Dumpster and Portable Toilet Rental Services

11.50% Secured Debt (Maturity - October 31, 2024)

14,400

14,278

14,400

Preferred Stock (2,814 shares)

7,085

11,920

21,363

26,320

KBK Industries, LLC

January 23, 2006

Manufacturer of Specialty Oilfield and Industrial Products

Member Units (325 units) (8)

783

13,140

8


Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2020

(dollars in thousands)

Portfolio Company (1) (20)

Investment Date (26)

Business Description

Type of Investment (2) (3) (25)

Principal (4)

Cost (4)

Fair Value (18)

Kickhaefer Manufacturing Company, LLC

October 31, 2018

Precision Metal Parts Manufacturing

9.50% Current / 2.00% PIK Secured Debt (Maturity -
October 31, 2023) (19)

23,615

23,449

23,449

Member Units (581 units)

12,240

12,150

9.00% Secured Debt (Maturity - October 31, 2048)

3,956

3,917

3,917

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

992

1,160

40,598

40,676

Market Force Information, LLC

July 28, 2017

Provider of Customer Experience Management Services

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon
12.00% Secured Debt (Maturity - July 28, 2023) (9) (14)

900

900

900

12.00% PIK Secured Debt (Maturity - July 28, 2023) (14) (19)

26,079

25,952

13,712

Member Units (743,921 units)

16,642

-

43,494

14,612