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, 2014

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, Suite 800
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)

        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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post 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 or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o   Smaller reporting company 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 6, 2014 was 44,944,926.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Financial Statements

   

 

Consolidated Balance Sheets—September 30, 2014 (unaudited) and December 31, 2013

  1

 

Consolidated Statements of Operations (unaudited)—Three and nine months ended September 30, 2014 and 2013

  2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Nine months ended September 30, 2014 and 2013

  3

 

Consolidated Statements of Cash Flows (unaudited)—Nine months ended September 30, 2014 and 2013

  4

 

Consolidated Schedule of Investments (unaudited)—September 30, 2014

  5

 

Consolidated Schedule of Investments—December 31, 2013

  30

 

Notes to Consolidated Financial Statements (unaudited)

  54

Item 2.

 

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

  101

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

  130

Item 4.

 

Controls and Procedures

  130


PART II
OTHER INFORMATION

Item 1.

 

Legal Proceedings

  131

Item 1A.

 

Risk Factors

  131

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

  131

Item 6.

 

Exhibits

  131

 

Signatures

  132

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

 
  September 30,
2014
  December 31,
2013
 
 
  (Unaudited)
   
 

ASSETS

             

Portfolio investments at fair value:

   
 
   
 
 

Control investments (cost: $299,621 and $277,411 as of September 30, 2014 and December 31, 2013, respectively)

  $ 413,587   $ 356,973  

Affiliate investments (cost: $244,223 and $242,592 as of September 30, 2014 and December 31, 2013, respectively)

    259,795     268,113  

Non-Control/Non-Affiliate investments (cost: $804,031 and $643,068 as of September 30, 2014 and December 31, 2013, respectively)

    814,652     661,102  
           

Total portfolio investments (cost: $1,347,875 and $1,163,071 as of September 30, 2014 and December 31, 2013, respectively)

    1,488,034     1,286,188  

Marketable securities and idle funds investments (cost: $9,871 and $14,885 as of September 30, 2014 and December 31, 2013, respectively)

    9,207     13,301  
           

Total investments (cost: $1,357,746 and $1,177,956 as of September 30, 2014 and December 31, 2013, respectively)

    1,497,241     1,299,489  

Cash and cash equivalents

   
24,324
   
34,701
 

Interest receivable and other assets

    21,076     16,054  

Receivable for securities sold

    26,075      

Deferred financing costs (net of accumulated amortization of $5,906 and $4,722 as of September 30, 2014 and December 31, 2013, respectively)

    10,627     9,931  
           

Total assets

  $ 1,579,343   $ 1,360,175  
           
           

LIABILITIES

             

Credit facility

 
$

287,000
 
$

237,000
 

SBIC debentures (par: $225,000 as of September 30, 2014 and $200,200 as of December 31, 2013, par of $75,200 is recorded at a fair value of $72,829 and $62,050 as of September 30, 2014 and December 31, 2013, respectively)

    222,629     187,050  

6.125% Notes

    90,882     90,882  

Payable for securities purchased

    498     27,088  

Deferred tax liability, net

    12,583     5,940  

Dividend payable

    7,640     6,577  

Accounts payable and other liabilities

    8,220     10,549  

Interest payable

    2,385     2,556  
           

Total liabilities

    631,837     567,642  

Commitments and contingencies (Note M)

   
 
   
 
 

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 44,945,194 and 39,852,604 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively)

   
449
   
398
 

Additional paid-in capital

    847,796     694,981  

Accumulated net investment income, net of cumulative dividends of $262,238 and $199,140 as of September 30, 2014 and December 31, 2013, respectively

    28,886     22,778  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $27,904 before cumulative dividends of $56,998 as of September 30, 2014 and accumulated net realized gain from investments of $17,115 before cumulative dividends of $43,449 as of December 31, 2013)

    (29,094 )   (26,334 )

Net unrealized appreciation, net of income taxes

    99,469     100,710  
           

Total net assets

    947,506     792,533  
           

Total liabilities and net assets

  $ 1,579,343   $ 1,360,175  
           
           

NET ASSET VALUE PER SHARE

  $ 21.08   $ 19.89  
           
           

   

The accompanying notes are an integral part of these financial statements

1


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 
  2014   2013   2014   2013  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 9,705   $ 8,840   $ 29,547   $ 23,543  

Affiliate investments

    6,687     6,453     18,412     17,514  

Non-Control/Non-Affiliate investments

    19,839     13,974     53,488     40,974  
                   

Interest, fee and dividend income

    36,231     29,267     101,447     82,031  

Interest, fee and dividend income from marketable securities and idle funds

    120     392     557     1,073  
                   

Total investment income

    36,351     29,659     102,004     83,104  

EXPENSES:

                         

Interest

    (5,954 )   (5,922 )   (16,713 )   (15,346 )

Compensation

    (3,047 )   (2,575 )   (9,115 )   (5,148 )

General and administrative

    (1,871 )   (1,533 )   (5,279 )   (3,471 )

Share-based compensation

    (1,208 )   (2,152 )   (3,034 )   (3,357 )

Expenses charged to the External Investment Manager

    616         1,343      

Expenses reimbursed to affiliated Internal Investment Manager

                (3,189 )
                   

Total expenses

    (11,464 )   (12,182 )   (32,798 )   (30,511 )
                   

NET INVESTMENT INCOME

    24,887     17,477     69,206     52,593  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

        (2,635 )       (2,635 )

Affiliate investments

    14,737     780     8,159     780  

Non-Control/Non-Affiliate investments

    962     (1,164 )   2,634     (1,024 )

Marketable securities and idle funds investments

    11     22     (4 )   285  

SBIC debentures

        (4,775 )       (4,775 )
                   

Total net realized gain (loss)

    15,710     (7,772 )   10,789     (7,369 )
                   

NET REALIZED INCOME

    40,597     9,705     79,995     45,224  

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

   
 
   
 
   
 
   
 
 

Portfolio investments

    (6,891 )   14,475     17,018     30,889  

Marketable securities and idle funds investments

    (426 )   (490 )   920     (1,300 )

SBIC debentures

    (8,749 )   4,839     (10,778 )   4,183  
                   

Total net change in unrealized appreciation (depreciation)

    (16,066 )   18,824     7,160     33,772  
                   

INCOME TAXES:

                         

Federal and state income, excise, and other taxes

    (960 )   (371 )   (1,758 )   (1,793 )

Deferred taxes

    (2,002 )   (104 )   (6,643 )   (1,515 )
                   

Income tax provision

    (2,962 )   (475 )   (8,401 )   (3,308 )
                   

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 21,569   $ 28,054   $ 78,754   $ 75,688  
                   
                   

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.55   $ 0.47   $ 1.61   $ 1.48  
                   
                   

NET REALIZED INCOME PER SHARE—BASIC AND DILUTED

  $ 0.90   $ 0.26   $ 1.86   $ 1.27  
                   
                   

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

  $ 0.48   $ 0.76   $ 1.83   $ 2.13  
                   
                   

DIVIDENDS PAID PER SHARE:

                         

Regular monthly dividends

  $ 0.495   $ 0.465   $ 1.485   $ 1.380  

Supplemental dividends

        0.200     0.275     0.550  
                   

Total dividends

  $ 0.495   $ 0.665   $ 1.760   $ 1.930  
                   
                   

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    44,910,756     37,144,693     43,027,105     35,558,266  

   

The accompanying notes are an integral part of these financial statements

2


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(in thousands, except shares)

(Unaudited)

 
  Common Stock    
   
  Accumulated
Net Realized
Gain From
Investments,
Net of Dividends
  Net Unrealized
Appreciation from
Investments,
Net of Income
Taxes
   
 
 
   
  Accumulated
Net Investment
Income, Net
of Dividends
   
 
 
  Number of
Shares
  Par
Value
  Additional
Paid-In
Capital
  Total Net
Asset Value
 

Balances at December 31, 2012

    34,589,484   $ 346   $ 544,136   $ 35,869   $ (19,155 ) $ 81,780   $ 642,976  

Public offering of common stock, net of offering costs

   
4,600,000
   
46
   
131,407
   
   
   
   
131,453
 

Share-based compensation

            3,357                 3,357  

Purchase of vested stock for employee payroll tax withholding

    (62,025 )   (1 )   (1,764 )               (1,765 )

Dividend reinvestment

    278,166     3     8,727                 8,730  

Issuance of restricted stock

    274,895     3     (3 )                

Consolidation of Internal Investment Manager

            2,037                 2,037  

Issuances of common stock

    18,125         578                 578  

Other

            69                 69  

Dividends to stockholders

                (65,748 )   (3,199 )       (68,947 )

Net increase resulting from operations

                43,043     2,181     30,464     75,688  
                               

Balances at September 30, 2013

    39,698,645   $ 397   $ 688,544   $ 13,164   $ (20,173 ) $ 112,244   $ 794,176  
                               
                               

Balances at December 31, 2013

    39,852,604   $ 398   $ 694,981   $ 22,778   $ (26,334 ) $ 100,710   $ 792,533  

Public offering of common stock, net of offering costs

   
4,600,000
   
46
   
139,651
   
   
   
   
139,697
 

Share-based compensation

            3,034                 3,034  

Purchase of vested stock for employee payroll tax withholding

    (46,507 )       (1,481 )               (1,481 )

Dividend reinvestment

    333,657     3     10,842                 10,845  

Amortization of directors' deferred compensation

            229                 229  

Issuance of restricted stock

    241,578     2     (2 )                

Tax benefit related to vesting of restricted shares

              542                 542  

Forfeited shares of terminated employees

    (36,138 )                        

Dividends to stockholders

                (63,098 )   (13,549 )       (76,647 )

Net increase (loss) resulting from operations

                69,206     10,789     (1,241 )   78,754  
                               

Balances at September 30, 2014

    44,945,194   $ 449   $ 847,796   $ 28,886   $ (29,094 ) $ 99,469   $ 947,506  
                               
                               

   

The accompanying notes are an integral part of these financial statements

3


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
  Nine Months Ended
September 30,
 
 
  2014   2013  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 78,754   $ 75,688  

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:

             

Investments in portfolio companies

    (637,843 )   (533,435 )

Proceeds from sales and repayments of debt investments in portfolio companies

    396,557     325,150  

Proceeds from sales of equity investments in portfolio companies

    26,117     1,336  

Investments in marketable securities and idle funds investments

    (17,704 )   (53,102 )

Proceeds from sales and repayments of marketable securities and idle funds investments

    22,747     44,395  

Net change in unrealized appreciation

    (7,160 )   (33,772 )

Net realized (gain) loss

    (10,789 )   7,369  

Accretion of unearned income

    (8,167 )   (7,721 )

Payment-in-kind interest

    (3,947 )   (3,517 )

Cumulative dividends

    (1,422 )   (1,000 )

Share-based compensation expense

    3,034     3,357  

Amortization of deferred financing costs

    1,184     1,167  

Deferred taxes

    6,643     1,515  

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (4,480 )   1,009  

Interest payable

    (171 )   (1,345 )

Payable to affiliated Internal Investment Manager

        (3,960 )

Accounts payable and other liabilities

    (1,584 )   1,376  

Deferred fees and other

    1,457     2,558  
           

Net cash used in operating activities

    (156,774 )   (172,932 )

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

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

    139,697     131,453  

Proceeds from public offering of 6.125% Notes

        92,000  

Repurchases of 6.125% Notes

        (1,108 )

Dividends paid to stockholders

    (64,739 )   (59,052 )

Proceeds from issuance of SBIC debentures

    24,800      

Repayments of SBIC debentures

        (63,800 )

Proceeds from credit facility

    353,000     360,000  

Repayments on credit facility

    (303,000 )   (326,000 )

Payment of deferred loan costs and SBIC debenture fees

    (1,880 )   (5,317 )

Purchase of vested stock for employee payroll tax withholding

    (1,481 )   (1,765 )

Other

        578  
           

Net cash provided by financing activities

    146,397     126,989  
           

Net decrease in cash and cash equivalents

    (10,377 )   (45,943 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    34,701     63,517  
           

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 24,324   $ 17,574  
           
           

Supplemental cash flow disclosures:

             

Interest paid

  $ 15,701   $ 15,558  

Taxes paid

  $ 3,656   $ 4,803  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 10,845   $ 8,730  

   

The accompanying notes are an integral part of these financial statements

4


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Control Investments(5)

 

 

 

 

                   

ASC Interests, LLC

 

Recreational and Educational Shooting Facility

 

 

   
 
   
 
   
 
 

     

11% Secured Debt (Maturity—July 31, 2018)

    3,225     3,172     3,225  

     

Member Units (1,500 units)

          1,500     1,660  
                         

                  4,672     4,885  

Bond-Coat, Inc.

 

Casing and Tubing Coating Services

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—December 28, 2017)

    13,570     13,438     13,570  

     

Common Stock (57,508 shares)

          6,350     11,210  
                         

                  19,788     24,780  

Café Brazil, LLC

 

Casual Restaurant Group

 

 

   
 
   
 
   
 
 

     

Member Units (1,233 units)(8)

          1,742     6,980  

California Healthcare Medical Billing, Inc.

 

Outsourced Billing and Revenue Cycle Management

 

 

   
 
   
 
   
 
 

     

9% Secured Debt (Maturity—October 17, 2016)

    8,703     8,551     8,703  

     

Warrants (466,947 equivalent shares)

          1,193     3,480  

     

Common Stock (207,789 shares)

          1,177     1,460  
                         

                  10,921     13,643  

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

 

 

   
 
   
 
   
 
 

     

Member Units (416 units)(8)

          1,300     25,150  

Ceres Management, LLC (Lambs Tire & Automotive)

 

Aftermarket Automotive Services Chain

 

 

   
 
   
 
   
 
 

     

14% Secured Debt (Maturity—May 31, 2018)

    4,000     4,000     4,000  

     

Class B Member Units (12% cumulative)(8)

          3,926     3,926  

     

Member Units (5,460 units)

          5,273     1,520  

     

9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—October 1, 2025)

    980     980     980  

     

Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)

          625     1,240  
                         

                  14,804     11,666  

Datacom, LLC

 

Technology and Telecommunications Provider

 

 

   
 
   
 
   
 
 

     

8% Secured Debt (Maturity—May 31, 2015)

    450     447     447  

     

10.5% Secured Debt (Maturity—May 31, 2019)

    11,205     11,099     11,099  

     

Member Units (6,453 units)

          6,030     6,030  
                         

                  17,576     17,576  

5


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Garreco, LLC

 

Manufacturer and Supplier of Dental Products

 

 

                   

     

14% Secured Debt (Maturity—January 12, 2018)

    5,400     5,315     5,315  

     

Member Units (1,200 units)

          1,200     1,200  
                         

                  6,515     6,515  

Gulf Manufacturing, LLC

 

Manufacturer of Specialty Fabricated Industrial Piping Products

 

 

   
 
   
 
   
 
 

     

9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)

    744     744     744  

     

Member Units (438 units)(8)

          2,980     16,540  
                         

                  3,724     17,284  

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—June 4, 2015)

    5,487     5,372     5,487  

     

Preferred Stock (8% cumulative)(8)

          1,237     1,237  

     

Common Stock (107,456 shares)(8)

          718     1,620  
                         

                  7,327     8,344  

Hawthorne Customs and Dispatch Services, LLC

 

Facilitator of Import Logistics, Brokerage, and Warehousing

 

 

                   

     

Member Units (500 units)(8)

          589     290  

     

Member Units (Wallisville Real Estate, LLC) (Fully diluted 59.2%)(8)

          1,215     2,050  
                         

                  1,804     2,340  

Hydratec, Inc.

 

Designer and Installer of Micro-Irrigation Systems

 

 

   
 
   
 
   
 
 

     

Common Stock (7,095 shares)(8)

          7,095     13,720  

IDX Broker, LLC

 

Provider of Marketing and CRM Tools for the Real Estate Industry

 

 

   
 
   
 
   
 
 

     

12.5% Secured Debt (Maturity—November 18, 2018)

    10,571     10,479     10,479  

     

Member Units (5,029 units)

          5,029     5,450  
                         

                  15,508     15,929  

Impact Telecom, Inc.

 

Telecommunications Services Provider

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.50% (Floor 2.00%), Current Coupon 8.50%, Secured Debt (Maturity—May 31, 2018)(9)

    1,575     1,569     1,569  

     

13% Secured Debt (Maturity—May 31, 2018)

    22,500     15,342     15,342  

     

Warrants (5,516,667 equivalent shares)

          8,000     4,160  
                         

                  24,911     21,071  

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

 

 

                   

     

15% Secured Debt (Maturity—January 15, 2015)

    3,100     3,100     3,100  

     

Warrants (1,046 equivalent units)

          1,129     2,541  
                         

                  4,229     5,641  

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

 

 

   
 
   
 
   
 
 

     

Prime Plus 6.75% (Floor 3.25%), Current Coupon 10.00%, Secured Debt (Maturity—November 14, 2016)(9)

    3,805     3,762     3,805  

     

Member Units (627 units)(8)

          811     3,300  
                         

                  4,573     7,105  

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

 

 

   
 
   
 
   
 
 

     

8% Secured Debt (Maturity—August 22, 2015)

    1,568     1,568     1,568  

     

Preferred Equity (non-voting)

          442     442  

     

Warrants (71 equivalent units)

          54     40  

     

Member Units (700 units)(8)

          100     360  
                         

                  2,164     2,410  

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)

 

Fabricator of Marine and Industrial Shelters

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—December 28, 2017)

    10,250     10,103     10,103  

     

Preferred Member Units (2,669 units)

          3,750     3,750  
                         

                  13,853     13,853  

Mid-Columbia Lumber Products, LLC

 

Manufacturer of Finger-Jointed Lumber Products

 

 

   
 
   
 
   
 
 

     

10% Secured Debt (Maturity—December 18, 2017)

    1,750     1,750     1,750  

     

12% Secured Debt (Maturity—December 18, 2017)

    3,900     3,900     3,900  

     

Member Units (2,829 units)(8)

          1,244     11,750  

     

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

    938     938     938  

     

Member Units (Mid-Columbia Real Estate, LLC) (250 units)(8)

          250     550  
                         

                  8,082     18,888  

MSC Adviser I, LLC

 

Third Party Investment Advisory Services

 

 

   
 
   
 
   
 
 

     

Member Units (Fully diluted 100.0%)(8)

              8,549  

Mystic Logistics, Inc

 

Logistics and Distribution Services Provider for Large Volume Mailers

 

 

   
 
   
 
   
 
 

     

12% First Lien Secured Term Loan (Maturity—August 15, 2019)

    10,000     9,782     9,782  

     

Common Stock (5,873 shares)

          2,720     2,720  
                         

                  12,502     12,502  

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

 

 

                   

     

Prime Plus 2% (Floor 7.00%), Current Coupon 9%, Secured Debt (Maturity—September 1, 2015)(9)

    625     612     625  

     

Prime Plus 2% (Floor 7.00%), Current Coupon 9%, Secured Debt (Maturity—February 1, 2016)(9)

    2,923     2,913     2,923  

     

18% Secured Debt (Maturity—February 1, 2016)

    4,468     4,434     4,468  

     

Member Units (2,955 units)(8)

          2,975     6,740  
                         

                  10,934     14,756  

NRI Clinical Research, LLC

 

Clinical Research Service Provider

 

 

   
 
   
 
   
 
 

     

14% Secured Debt (Maturity—September 8, 2016)

    4,991     4,862     4,862  

     

Warrants (251,723 equivalent units)

          252     160  

     

Member Units (671,233 units)

          671     722  
                         

                  5,785     5,744  

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—December 22, 2016)

    12,100     11,535     11,535  

     

Warrants (14,331 equivalent units)

          817     1,020  

     

Member Units (50,877 units)(8)

          2,900     3,390  
                         

                  15,252     15,945  

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

 

 

   
 
   
 
   
 
 

     

Common Stock (1,500 shares)(8)

          1,080     13,420  

Pegasus Research Group, LLC (Televerde)

 

Provider of Telemarketing and Data Services

 

 

   
 
   
 
   
 
 

     

Member Units (460 units)(8)

          1,290     5,650  

PPL RVs, Inc.

 

Recreational Vehicle Dealer

 

 

   
 
   
 
   
 
 

     

11.1% Secured Debt (Maturity—June 10, 2015)

    7,860     7,843     7,860  

     

Common Stock (1,961 shares)

          2,150     8,160  
                         

                  9,993     16,020  

Principle Environmental, LLC

 

Noise Abatement Service Provider

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—April 30, 2017)

    4,060     3,762     4,060  

     

12% Current / 2% PIK Secured Debt (Maturity - April 30, 2017)

    3,228     3,207     3,228  

     

Preferred Member Units (19,631 units)

          4,663     11,830  

     

Warrants (1,036 equivalent units)

          1,200     720  
                         

                  12,832     19,838  

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

River Aggregates, LLC

 

Processor of Construction Aggregates

 

 

                   

     

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

    750     448     448  

     

12% Secured Debt (Maturity—June 30, 2018)

    500     500     500  

     

Member Units (1,150 units)

          1,150     1,690  

     

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

          369     369  
                         

                  2,467     3,007  

Southern RV, LLC

 

Recreational Vehicle Dealer

 

 

   
 
   
 
   
 
 

     

13% Secured Debt (Maturity—August 8, 2018)

    11,400     11,259     11,259  

     

Member Units (1,680 units)(8)

          1,680     4,450  

     

13% Secured Debt (Southern RV Real Estate, LLC) (Maturity—August 8, 2018)

    3,250     3,210     3,210  

     

Member Units (Southern RV Real Estate, LLC) (480 units)

          480     470  
                         

                  16,629     19,389  

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

 

 

                   

     

4.5% Current / 4.5% PIK Secured Debt (Maturity - July 1, 2019)

    1,079     1,079     880  

     

6% Current / 6% PIK Secured Debt (Maturity—July 1, 2019)

    5,845     5,845     4,806  

     

Warrants (1,068 equivalent units)

          1,096      
                         

                  8,020     5,686  

Travis Acquisition LLC

 

Manufacturer of Aluminum Trailers

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—August 30, 2018)

    4,808     4,728     4,808  

     

Member Units (7,282 units)

          7,100     12,350  
                         

                  11,828     17,158  

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

 

 

   
 
   
 
   
 
 

     

9% Secured Debt (Maturity—January 1, 2019)

    1,896     1,896     1,896  

     

Member Units (1,006 units)(8)

          1,113     3,420  
                         

                  3,009     5,316  

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

 

 

   
 
   
 
   
 
 

     

13% Secured Debt (Maturity—December 23, 2016)

    3,204     3,167     3,167  

     

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

          3,000     3,250  

     

Common Stock (1,126,242 shares)

          3,706     100  
                         

                  9,873     6,517  

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Ziegler's NYPD, LLC

 

Casual Restaurant Group

 

 

                   

     

Prime Plus 2% (Floor 7.00%), Current Coupon 9%, Secured Debt (Maturity—October 1, 2018)(9)

    1,500     1,490     1,490  

     

9% Current / 9% PIK Secured Debt (Maturity—October 1, 2018)

    5,449     5,449     4,820  

     

Warrants (587 equivalent units)

          600      
                         

                  7,539     6,310  
                         

Subtotal Control Investments (27.6% of total investments at fair value)

    299,621     413,587  
                         

                           

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Affiliate Investments(6)

 

 

 

 

                   

Boss Industries, LLC

 

Manufacturer and distributor of air compressors, auxiliary power units, gas booster systems and vapor recovery systems

 

 

   
 
   
 
   
 
 

     

Preferred Member Units (2,242 units)

          2,000     2,000  

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions Provider

 

 

   
 
   
 
   
 
 

     

13% Secured Debt (Maturity—April 17, 2017)

    6,000     5,823     5,823  

     

Warrants (19 equivalent shares)

          200     630  
                         

                  6,023     6,453  

Brightwood Capital Fund III, LP(12)(13)

 

Investment Partnerships

 

 

   
 
   
 
   
 
 

     

LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 9.14%)(8)

          8,718     8,718  

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays Provider

 

 

   
 
   
 
   
 
 

     

Member Units (3,936 units)(8)

          100     500  

Congruent Credit Opportunities Funds(12)(13)

 

Investment Partnerships

 

 

   
 
   
 
   
 
 

     

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)

          22,106     22,048  

     

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)

          5,382     5,382  
                         

                  27,488     27,430  

Daseke, Inc.

 

Specialty Transportation Provider

 

 

   
 
   
 
   
 
 

     

12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)

    20,592     20,256     20,592  

     

Common Stock (19,467 shares)

          5,213     12,610  
                         

                  25,469     33,202  

Dos Rios Partners(12)(13)

 

Investment Partnerships

 

 

   
 
   
 
   
 
 

     

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.24%)

          1,269     1,247  

     

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.43%)

          403     424  
                         

                  1,672     1,671  

East Teak Fine Hardwoods, Inc.

 

Distributor of Hardwood Products

 

 

   
 
   
 
   
 
 

     

Common Stock (5,000 shares)(8)

          480     860  

Freeport Financial SBIC Fund LP(12)(13)

 

Investment Partnership

 

 

   
 
   
 
   
 
 

     

LP Interests (Fully diluted 9.9%)(8)

          4,213     4,213  

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Liquidation of Distressed Assets

 

 

                   

     

8% Current / 9% PIK Secured Debt (Maturity—November 21, 2016)

    13,046     12,717     10,750  

     

Warrants (29,025 equivalent units)

          400      
                         

                  13,117     10,750  

Glowpoint, Inc.

 

Provider of Cloud Managed Video Collaboration Services

 

 

   
 
   
 
   
 
 

     

8% Secured Debt (Maturity—October 18, 2018)

    400     397     397  

     

12% Secured Debt (Maturity—October 18, 2018)

    9,000     8,904     8,904  

     

Common Stock (GP Investment Holdings, LLC) (7,711,517 shares)

          3,958     10,020  
                         

                  13,259     19,321  

Guerdon Modular Holdings, Inc.

 

Multi-Family and Commercial Modular Construction Company

 

 

   
 
   
 
   
 
 

     

11% Senior Secured Term Loan (Maturity—August 13, 2019)

    11,200     11,038     11,038  

     

Common Stock (213,221 shares)

          2,400     2,400  
                         

                  13,438     13,438  

Houston Plating and Coatings, LLC

 

Provider of Plating and Industrial Coating Services

 

 

   
 
   
 
   
 
 

     

Member Units (248,082 units)(8)

          996     10,570  

Indianhead Pipeline Services, LLC

 

Provider of Pipeline Support Services

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—February 6, 2017)

    7,125     6,817     6,817  

     

Preferred Member Units (28,905 units; 8% cumulative)(8)

          1,952     1,952  

     

Warrants (38,193 equivalent units)

          459      

     

Member Units (14,732 units)

          1      
                         

                  9,229     8,769  

irth Solutions, LLC

 

Provider of Damage Prevention Information Technology Services

 

 

   
 
   
 
   
 
 

     

Member Units (128 units)(8)

          624     3,870  

KBK Industries, LLC

 

Specialty Manufacturer of Oilfield and Industrial Products

 

 

   
 
   
 
   
 
 

     

12.5% Secured Debt (Maturity—September 28, 2017)

    8,250     8,194     8,250  

     

Member Units (250 units)(8)

          341     5,920  
                         

                  8,535     14,170  

L.F. Manufacturing Holdings, LLC(10)

 

Manufacturer of Fiberglass Products

 

 

   
 
   
 
   
 
 

     

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

          2,019     2,374  

MPS Denver, LLC

 

Specialty Card Printing

 

 

                   

     

Member Units (13,800 units)

          1,130     1,130  

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

OnAsset Intelligence, Inc.

 

Provider of Transportation Monitoring / Tracking Products and Services

 

 

                   

     

12% PIK Secured Debt (Maturity—November 30, 2014)

    1,795     1,795     1,795  

     

12% PIK Secured Debt (Maturity—November 30, 2014)

    1,652     1,652     1,652  

     

Preferred Stock (912 shares; 7% cumulative)(8)

          1,913     2,663  

     

Warrants (5,333 equivalent shares)

          1,919     502  
                         

                  7,279     6,612  

OPI International Ltd.(13)

 

Provider of Man Camp and Industrial Storage Services

 

 

   
 
   
 
   
 
 

     

Common Stock (20,766,317 shares)

          1,371     4,971  

PCI Holding Company, Inc.

 

Manufacturer of Industrial Gas Generating Systems

 

 

   
 
   
 
   
 
 

     

Preferred Stock (1,500,000 shares; 20% cumulative)(8)

          2,147     3,970  

Quality Lease and Rental Holdings, LLC

 

Provider of Rigsite Accommodation Unit Rentals and Related Services

 

 

   
 
   
 
   
 
 

     

8% Secured Revolver (Maturity—October 1, 2014)(14)

    330     330     330  

     

12% Secured Debt (Maturity—January 8, 2018)(14)

    36,577     36,073     12,500  

     

Preferred Member Units (Rocaciea, LLC) (250 units)

          2,500      
                         

                  38,903     12,830  

Radial Drilling Services Inc.

 

Oil and Gas Technology Provider

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—November 22, 2016)

    4,200     3,748     3,748  

     

Warrants (316 equivalent shares)

          758      
                         

                  4,506     3,748  

Samba Holdings, Inc.

 

Provider of Intelligent Driver Record Monitoring Software and Services

 

 

   
 
   
 
   
 
 

     

12.5% Secured Debt (Maturity—November 17, 2016)

    10,418     10,327     10,418  

     

Common Stock (158,066 shares)

          1,707     4,990  
                         

                  12,034     15,408  

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Spectrio LLC

 

Provider of Audio and Digital Messaging Services

 

 

                   

     

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 19, 2018)(9)

    15,302     14,975     15,302  

     

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 19, 2018)(9)

    2,296     2,296     2,296  

     

Warrants (191 equivalent units)

          887     4,200  
                         

                  18,158     21,798  

SYNEO, LLC

 

Manufacturer of Automation Machines, Specialty Cutting Tools and Punches

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—July 13, 2016)

    2,800     2,770     2,770  

     

Member Units (1,177 units)(8)

          1,097     801  

     

10% Secured Debt (Leadrock Properties, LLC) (Maturity—May 4, 2026)

    1,440     1,414     1,414  
                         

                  5,281     4,985  

Tin Roof Acquisition Company

 

Casual Restaurant Group

 

 

   
 
   
 
   
 
 

     

12% Secured Debt (Maturity—November 30, 2018)

    14,100     13,849     13,849  

     

Class C Preferred Equity (Fully diluted 10%; 10% cumulative)(8)

          2,185     2,185  
                         

                  16,034     16,034  
                         

Subtotal Affiliate Investments (17.4% of total investments at fair value)

    244,223     259,795  
                         

                           

14


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Non-Control/Non-Affiliate Investments(7)

             

Academi Holdings, LLC(11)

 

Provider of Training, Security, and Support Services

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.25% (Floor 1%), Current Coupon 6.25%, Secured Debt (Maturity—July 25, 2019)(9)

    6,000     5,943     5,970  

Accuvant Finance, LLC(11)

 

Cyber Security Value Added Reseller

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 4.75% (Floor 1%), Current Coupon 5.75%, Secured Debt (Maturity—October 22, 2020)(9)

    5,603     5,551     5,575  

Allflex Holdings III Inc.(11)

 

Manufacturer of Livestock Identification Products

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)

    8,000     7,956     7,972  

AM3 Pinnacle Corporation(10)

 

Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties

 

 

   
 
   
 
   
 
 

     

10% Secured Debt (Maturity—October 22, 2018)

    22,036     21,882     21,882  

     

Common Stock (60,240 shares)

          2,000     2,000  
                         

                  23,882     23,882  

AM General LLC(11)

 

Specialty Vehicle Manufacturer

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)

    2,625     2,566     2,441  

AmeriTech College, LLC

 

For-Profit Nursing and Healthcare College

 

 

   
 
   
 
   
 
 

     

18% Secured Debt (Maturity—March 9, 2017)

    6,050     5,977     5,977  

AMF Bowling Centers, Inc.(11)

 

Bowling Alley Operator

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)

    5,000     4,926     4,997  

Anchor Hocking, LLC(11)

 

Household Products Manufacturer

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75% / 1.75% PIK, Current Coupon Plus PIK 9.50%, Secured Debt (Maturity—May 21, 2020)(9)

    10,890     10,813     8,481  

Ancile Solutions, Inc.(11)

 

Provider of eLearning Solutions

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity—July 15, 2018)(9)

    8,450     8,408     8,450  

15


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Answers Corporation(11)

 

Consumer Internet Search Services Provider

 

 

                   

     

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—December 20, 2018)(9)

    6,256     6,202     6,334  

AP Gaming I, LLC(10)

 

Developer, Manufacturer, and Operator of Gaming Machines

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)

    6,948     6,755     7,017  

Applied Products, Inc.(10)

 

Adhesives Distributor

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)

    236     225     225  

     

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)

    6,000     5,948     5,948  
                         

                  6,173     6,173  

Aptean, Inc.(11)

 

Enterprise Application Software Provider

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25%, Secured Debt (Maturity—February 26, 2020)(9)

    12,686     12,643     12,623  

Artel, LLC(11)

 

Land-Based and Commercial Satellite Provider

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—November 27, 2017)(9)

    4,711     4,662     4,641  

Ascend Learning, LLC(11)

 

Technology-based Healthcare Learning Solutions

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—July 31, 2019)(9)

    4,479     4,460     4,503  

ATS Workholding, Inc.(10)

 

Manufacturer of Machine Cutting Tools and Accessories

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—March 10, 2019)(9)

    838     821     821  

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—March 10, 2019)(9)

    5,796     5,750     5,750  
                         

                  6,571     6,571  

16


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Beers Enterprises, Inc.(10)

 

Provider of Broadcast Video Transport Services

 

 

                   

     

Prime Plus 7.50% (Floor 1.00%), Current Coupon 8.5%, Secured Debt (Maturity—March 19, 2019)(9)

    1,842     1,822     1,822  

     

Prime Plus 7.50% (Floor 1.00%), Current Coupon 8.5%, Secured Debt (Maturity—March 19, 2019)(9)

    4,421     4,385     4,385  
                         

                  6,207     6,207  

B. J. Alan Company

 

Retailer and Distributor of Consumer Fireworks

 

 

   
 
   
 
   
 
 

     

12.75% Current / 2.75% PIK Secured Debt (Maturity—June 22, 2017)

    10,634     10,576     10,576  

Blackbrush Oil and Gas LP(11)

 

Oil & Gas Exploration

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.50%, Secured Debt (Maturity—July 30, 2021)

    4,000     3,970     3,950  

Blackhawk Specialty Tools LLC(11)

 

Oilfield Equipment & Services

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity—August 1, 2019)(9)

    6,307     6,270     6,307  

Blue Bird Body Company(11)

 

School Bus Manufacturer

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—June 26, 2020)(9)

    11,500     11,335     11,356  

Bluestem Brands, Inc.(11)

 

Multi-Channel Retailer of General Merchandise

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 6, 2018)(9)

    3,289     3,232     3,299  

Brainworks Software, LLC(10)

 

Advertising Sales and Production and Newspaper Circulation Software

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—July 22, 2019)(9)

    6,263     6,178     6,178  

Brasa Holdings Inc.(11)

 

Upscale Full Service Restaurants

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 20, 2020)(9)

    2,143     2,126     2,166  

Brundage-Bone Concrete Pumping, Inc.(11)

 

Construction Services Provider

 

 

   
 
   
 
   
 
 

     

10.375% Secured Debt (Maturity—September 1, 2021)

    2,500     2,500     2,575  

Calloway Laboratories, Inc.(10)

 

Health Care Testing Facilities

 

 

   
 
   
 
   
 
 

     

12% PIK Secured Debt (Maturity—September 30, 2015)(14)

    7,131     7,082     2,968  

     

Warrants (125,000 equivalent shares)

          17      
                         

                  7,099     2,968  

17


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Cedar Bay Generation Company LP(11)

 

Coal-Fired Cogeneration Plant

 

 

                   

     

LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity—April 23, 2020)(9)

    7,087     7,029     7,118  

Charlotte Russe, Inc(11)

 

Fast-Fashion Retailer to Young Women

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)

    4,950     4,910     4,876  

CHI Overhead Doors, Inc.(11)

 

Manufacturer of Overhead Garage Doors

 

 

   
 
   
 
   
 
 

     

LIBOR Plus 9.50%, (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—September 18, 2019)(9)

    2,500     2,466     2,494  

Clarius ASIG, LLC(10)

 

Prints & Advertising Film Financing

 

 

   
 
   
 
   
 
 

     

12% PIK Secured Debt (Maturity—September 14, 2014)

    3,813     3,707     3,680  

Clarius BIGS, LLC(10)

 

Prints & Advertising Film Financing

 

 

   
 
   
 
   
 
 

     

12% PIK Secured Debt (Maturity—January 5, 2015)

    3,307     3,200     3,200  

CGSC of Delaware Holdings Corp.(11)(13)

 

Insurance Brokerage Firm

                       

     

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—October 16, 2020)(9)

    2,000     1,974     1,760  

Compact Power Equipment, Inc.

 

Equipment / Tool Rental

                       

     

6% Current / 6% PIK Secured Debt (Maturity—October 1, 2017)

    4,100     4,084     4,100  

     

Series A Preferred Stock (4,298,435 shares; 8% cumulative)(8)

          1,058     2,381  
                         

                  5,142     6,481  

Covenant Surgical Partners, Inc.(11)

 

Ambulatory Surgical Centers

                       

     

8.75% Secured Debt (Maturity—August 1, 2019)

    2,000     2,000     1,990  

CST Industries Inc.(11)

 

Storage Tank Manufacturer

                       

     

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)

    7,418     7,351     7,418  

Darr Equipment LP(10)

 

Heavy Equipment Dealer

                       

     

11.75% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)

    20,188     19,553     19,553  

     

Warrants (915,734 equivalent units)

          474     474  
                         

                  20,027     20,027  

18


Table of Contents


MAIN STREET CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

September 30, 2014

(in thousands)

(Unaudited)

Portfolio Company(1)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value
 
   

Digity Media LLC(11)

 

Radio Station Operator

                       

     

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—February 10, 2019)(9)

    7,500     7,424     7,481  

Drilling Info, Inc.

 

Information Services for the Oil and Gas Industry

                       

     

Common Stock (3,788,865 shares)

          1,335     9,920  

Energy and Exploration Partners, LLC(11)

 

Oil & Gas Exploration & Production

                   <