Main Street Announces Portfolio Company Exit
Generates $14.4 million Realized Gain and Cumulative 45.9% Internal Rate of Return from its Debt and Equity Investments in Southern RV
HOUSTON, Jan. 20, 2016 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced today that it recently fully exited its debt and equity investments in Southern RV, LLC, a four-location dealer of new and used recreational vehicles ("RV") and its affiliated real estate entity (together, "Southern RV") through a sale of Southern RV's assets and business. Southern RV has facilities in Tyler, TX, Bossier City, LA, Lafayette, LA, and Biloxi, MS and also engages in financing, parts sales and RV services. Southern RV's predecessor was originally founded in 2000 and offers its customers a variety of Travel Trailers, Fifth Wheels, Toy Haulers, Class A Motorhomes, and Class C Motorhomes from top-selling manufacturers.
Main Street realized a gain of approximately $14.4 million on the exit of its equity investments in Southern RV, and on a cumulative basis since Main Street's initial investment in Southern RV in August 2013, Main Street realized a total internal rate of return of 150.2% and an 8.5 times money invested return on its equity investments in Southern RV. Main Street's initial investment in Southern RV consisted of $14.6 million of first lien, senior secured debt investments and $2.2 million of direct equity investments. The exit of Main Street's equity investments in Southern RV represents realized value of $4.4 million above Main Street's fair market value of these equity investments as of September 30, 2015.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
Main Street's common stock trades on the New York Stock Exchange ("NYSE") under the symbol "MAIN." In addition, Main Street has outstanding 6.125% Notes due 2023, which trade on the NYSE under the symbol "MSCA."
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SOURCE Main Street Capital Corporation