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TABLE OF CONTENTS

 

Filed Pursuant to Rule 497

Registration Statement No. 333-203147

 

 

Supplement, dated August 9, 2016
to

Prospectus, dated May 16, 2016

and
Prospectus Supplement, dated June 9, 2016

 

This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of Main Street Capital Corporation (the “Company”) dated May 16, 2016 (the “Prospectus”), as supplemented by the Prospectus Supplement dated June 9, 2016, as further supplemented from time to time including hereby (the “Prospectus Supplement”). Capitalized terms used but not defined herein shall have the same meaning given them in the Prospectus Supplement or Prospectus, as applicable.

 

Investing in our common stock involves a high degree of risk, and should be considered highly speculative. See “Risk Factors” beginning on page 14 of the Prospectus and in Annex A hereto to read about factors you should consider, including the risk of leverage and dilution, before investing in our common stock.

 

STATUS OF OUR OFFERING

 

On June 9, 2016, we established an at-the-market program to which the Prospectus Supplement relates and through which we may sell, from time to time and at our sole discretion up to 1,500,000 shares of our common stock. As of the date hereof, we have sold 708,500 shares of our common stock for net proceeds of approximately $22.9 million, after commissions to the Sales Agents on shares sold and offering costs, under the at-the-market program. As a result, 791,500 shares of our common stock remain available for sale under the at-the-market program.

 

FORM 10-Q

 

On August 9, 2016, we filed our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 (the “Report”) with the Securities and Exchange Commission. We have attached the Report as Annex A hereto.

 


 

Annex A

 


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 June 30, 2016

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)

        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 August 8, 2016 was 52,448,188.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

       

 

Consolidated Balance Sheets—June 30, 2016 (unaudited) and December 31, 2015

    1  

 

Consolidated Statements of Operations (unaudited)—Three and six months ended June 30, 2016 and 2015

    2  

 

Consolidated Statements of Changes in Net Assets (unaudited)—Six months ended June 30, 2016 and 2015

    3  

 

Consolidated Statements of Cash Flows (unaudited)—Six months ended June 30, 2016 and 2015

    4  

 

Consolidated Schedule of Investments (unaudited)—June 30, 2016

    5  

 

Consolidated Schedule of Investments—December 31, 2015

    34  

 

Notes to Consolidated Financial Statements (unaudited)

    63  

 

Consolidated Financial Statement Schedule

       

 

Consolidated Schedule of Investments in and Advances to Affiliates for the Six Months Ended June 30, 2016

    106  

Item 2.

 

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

    111  

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

    133  

Item 4.

 

Controls and Procedures

    134  


PART II
OTHER INFORMATION

Item 1.

 

Legal Proceedings

    135  

Item 1A.

 

Risk Factors

    135  

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

    135  

Item 6.

 

Exhibits

    135  

 

Signatures

    136  

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

 
  June 30,
2016
  December 31,
2015
 
 
  (Unaudited)
   
 

ASSETS

             

Portfolio investments at fair value:

   
 
   
 
 

Control investments (cost: $410,816 and $387,727 as of June 30, 2016 and December 31, 2015, respectively)

  $ 570,409   $ 555,011  

Affiliate investments (cost: $377,060 and $333,728 as of June 30, 2016 and December 31, 2015, respectively)

    358,483     350,519  

Non-Control/Non-Affiliate investments (cost: $1,005,044 and $945,187 as of June 30, 2016 and December 31, 2015, respectively)

    959,246     894,466  

Total portfolio investments (cost: 1,792,920 and $1,666,642 as of June 30, 2016 and December 31, 2015, respectively)

    1,888,138     1,799,996  

Marketable securities and idle funds investments (cost: $1,712 and $5,407 as of June 30, 2016 and December 31, 2015, respectively)

    1,583     3,693  

Total investments (cost: $1,794,632 and $1,672,049 as of June 30, 2016 and December 31, 2015, respectively)

    1,889,721     1,803,689  

Cash and cash equivalents

   
18,694
   
20,331
 

Interest receivable and other assets

    33,478     27,737  

Receivable for securities sold

    23,369     9,901  

Deferred financing costs (net of accumulated amortization of $10,252 and $8,965 as of June 30, 2016 and December 31, 2015, respectively)

    12,007     13,267  

Deferred tax asset, net

    7,767     4,003  

Total assets

  $ 1,985,036   $ 1,878,928  

LIABILITIES

             

Credit facility

 
$

350,000
 
$

291,000
 

SBIC debentures (par: $225,000 as of June 30, 2016 and December 31, 2015, par of $75,200 is recorded at a fair value of $73,879 and $73,860 as of June 30, 2016 and December 31, 2015, respectively)

    223,679     223,660  

4.50% Notes

    175,000     175,000  

6.125% Notes

    90,655     90,738  

Accounts payable and other liabilities

    9,313     12,292  

Payable for securities purchased

    22,522     2,311  

Interest payable

    5,391     3,959  

Dividend payable

    9,364     9,074  

Total liabilities

    885,924     808,034  

Commitments and contingencies (Note M)

   
 
   
 
 

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 51,993,135 and 50,413,744 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively)

   
521
   
504
 

Additional paid-in capital

    1,059,466     1,011,467  

Accumulated net investment income, net of cumulative dividends of $457,230 and $417,347 as of June 30, 2016 and December 31, 2015, respectively

    22,111     7,181  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $48,065 before cumulative dividends of $98,103 as of June 30, 2016 and accumulated net realized gain from investments of $19,005 before cumulative dividends of $68,658 as of December 31, 2015)

    (50,038 )   (49,653 )

Net unrealized appreciation, net of income taxes

    67,052     101,395  

Total net assets

    1,099,112     1,070,894  

Total liabilities and net assets

  $ 1,985,036   $ 1,878,928  

NET ASSET VALUE PER SHARE

  $ 21.11   $ 21.24  

   

The accompanying notes are an integral part of these 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
June 30,
  Six Months Ended
June 30,
 
 
  2016   2015   2016   2015  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 12,957   $ 11,492   $ 25,572   $ 22,827  

Affiliate investments

    8,952     6,961     17,476     13,010  

Non-Control/Non-Affiliate investments

    20,956     22,613     41,693     42,034  

Interest, fee and dividend income

    42,865     41,066     84,741     77,871  

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

    37     242     168     616  

Total investment income

    42,902     41,308     84,909     78,487  

EXPENSES:

                         

Interest

    (8,255 )   (7,657 )   (16,437 )   (15,453 )

Compensation

    (3,952 )   (3,835 )   (7,772 )   (7,328 )

General and administrative

    (2,157 )   (2,098 )   (4,562 )   (4,060 )

Share-based compensation

    (2,251 )   (1,679 )   (3,840 )   (2,942 )

Expenses allocated to the External Investment Manager

    1,361     1,162     2,515     1,988  

Total expenses

    (15,254 )   (14,107 )   (30,096 )   (27,795 )

NET INVESTMENT INCOME

    27,648     27,201     54,813     50,692  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

        3,324     14,358     3,324  

Affiliate investments

    28,707     (136 )   28,707     (137 )

Non-Control/Non-Affiliate investments

    (13,237 )   (8,633 )   (12,419 )   (10,640 )

Marketable securities and idle funds investments

    (13 )   (128 )   (1,586 )   (240 )

Total net realized gain (loss)

    15,457     (5,573 )   29,060     (7,693 )

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

                         

Portfolio investments

    (10,585 )   15,901     (38,114 )   30,105  

Marketable securities and idle funds investments

    37     (123 )   1,494     127  

SBIC debentures

    127     (80 )   (19 )   (772 )

Total net change in unrealized appreciation (depreciation)            

    (10,421 )   15,698     (36,639 )   29,460  

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    (1,098 )   (1,665 )   (1,468 )   (2,042 )

Deferred taxes

    (675 )   5,141     1,958     5,810  

Income tax benefit (provision)

    (1,773 )   3,476     490     3,768  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 30,911   $ 40,802   $ 47,724   $ 76,227  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.54   $ 0.55   $ 1.07   $ 1.06  

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

  $ 0.60   $ 0.82   $ 0.94   $ 1.59  

DIVIDENDS PAID PER SHARE:

                         

Regular monthly dividends

  $ 0.540   $ 0.525   $ 1.080   $ 1.035  

Supplemental dividends

    0.275     0.275     0.275     0.275  

Total dividends

  $ 0.815   $ 0.800   $ 1.355   $ 1.310  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    51,441,371     49,883,321     50,995,575     47,992,268  

   

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

(dollars 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, 2014

    45,079,150   $ 451   $ 853,606   $ 23,665   $ (20,456 ) $ 82,716   $ 939,982  

Public offering of common stock, net of offering costs

   
4,370,000
   
44
   
127,720
   
   
   
   
127,764
 

Share-based compensation

            2,942                 2,942  

Purchase of vested stock for employee payroll tax withholding

    (54,790 )   (1 )   (1,737 )               (1,738 )

Dividend reinvestment

    304,100     3     9,394                 9,397  

Amortization of directors' deferred compensation

            185                 185  

Issuance of restricted stock

    240,074     2     (2 )                

Dividends to stockholders

                (62,624 )   (1,319 )       (63,943 )

Net increase (loss) resulting from operations

                50,692     (7,693 )   33,228     76,227  

Balances at June 30, 2015

    49,938,534   $ 499   $ 992,108   $ 11,733   $ (29,468 ) $ 115,944   $ 1,090,816  

Balances at December 31, 2015

    50,413,744   $ 504   $ 1,011,467   $ 7,181   $ (49,653 ) $ 101,395   $ 1,070,894  

Public offering of common stock, net of offering costs

   
1,225,757
   
12
   
38,642
   
   
   
   
38,654
 

Share-based compensation

            3,840                 3,840  

Purchase of vested stock for employee payroll tax withholding

    (80,750 )   (1 )   (2,592 )               (2,593 )

Dividend reinvestment

    255,391     3     7,811                 7,814  

Amortization of directors' deferred compensation

            301                 301  

Issuance of restricted stock, net of forfeited shares

    260,668     3     (3 )                

Dividends to stockholders

                (39,883 )   (29,445 )       (69,328 )

Cumulative-effect to retained earnings for excess tax benefit

                        1,806     1,806  

Net increase (loss) resulting from operations

                54,813     29,060     (36,149 )   47,724  

Balances at June 30, 2016

    52,074,810   $ 521   $ 1,059,466   $ 22,111   $ (50,038 ) $ 67,052   $ 1,099,112  

   

The accompanying notes are an integral part of these financial statements

3


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

 
  Six Months Ended
June 30,
 
 
  2016   2015  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 47,724   $ 76,227  

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

             

Investments in portfolio companies

    (303,049 )   (483,365 )

Proceeds from sales and repayments of debt investments in portfolio companies               

    167,809     324,309  

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

    48,952     16,174  

Investments in marketable securities and idle funds investments

        (3,463 )

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

    2,129     3,566  

Net change in net unrealized (appreciation) depreciation

    36,639     (29,460 )

Net realized (gain) loss

    (29,060 )   7,693  

Accretion of unearned income

    (4,189 )   (4,397 )

Payment-in-kind interest

    (3,042 )   (1,534 )

Cumulative dividends

    (638 )   (734 )

Share-based compensation expense

    3,840     2,942  

Amortization of deferred financing costs

    1,288     1,263  

Deferred tax benefit

    (1,958 )   (5,810 )

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (1,825 )   (1,092 )

Interest payable

    1,432     615  

Accounts payable and other liabilities

    (2,774 )   (3,211 )

Deferred fees and other

    1,362     1,024  

Net cash used in operating activities

    (35,360 )   (99,253 )

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

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

    38,654     127,764  

Dividends paid

    (61,225 )   (53,470 )

Proceeds from credit facility

    203,000     301,000  

Repayments on credit facility

    (144,000 )   (293,000 )

Purchases of vested stock for employee payroll tax withholding

    (2,593 )   (1,738 )

Other

    (113 )   (143 )

Net cash provided by financing activities

    33,723     80,413  

Net decrease in cash and cash equivalents

    (1,637 )   (18,840 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    20,331     60,432  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 18,694   $ 41,592  

Supplemental cash flow disclosures:

             

Interest paid

  $ 13,646   $ 13,575  

Taxes paid

  $ 1,575   $ 2,219  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 7,814   $ 9,397  

   

The accompanying notes are an integral part of these financial statements

4


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Control Investments(5)

 

 

 

 

                   

                           

Access Media Holdings, LLC(10)

 

Private Cable Operator

                       

     

5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)

  $ 22,099   $ 22,099   $ 20,440  

     

Preferred Member Units (5,805,000 units; 12% cumulative)

          5,699     780  

     

Member Units (45 units)

          1      

                  27,799     21,220  

                           

AmeriTech College, LLC

 

For-Profit Nursing and Healthcare College

                       

     

10% Secured Debt (Maturity—November 30, 2019)

    1,004     1,004     1,004  

     

10% Secured Debt (Maturity—January 31, 2020)

    3,025     3,025     3,025  

     

Preferred Member Units (294 units; 5%)(8)

          2,291     2,291  

                  6,320     6,320  

                           

ASC Interests, LLC

 

Recreational and Educational Shooting Facility

                       

     

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

    2,250     2,227     2,250  

     

Member Units (1,500 units)(8)

          1,500     2,680  

                  3,727     4,930  

                           

Bond-Coat, Inc.

 

Casing and Tubing Coating Services

                       

     

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

    11,596     11,538     11,596  

     

Common Stock (57,508 shares)

          6,350     5,090  

                  17,888     16,686  

                           

Café Brazil, LLC

 

Casual Restaurant Group

                       

     

Member Units (1,233 units)(8)

          1,742     6,570  

                           

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

                       

     

Member Units (416 units)(8)

          1,300     50,100  

                           

CMS Minerals Investments

 

Oil & Gas Exploration & Production

                       

     

Preferred Member Units (CMS Minerals LLC) (458 units)(8)

          2,339     4,048  

     

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

          4,050     3,988  

                  6,389     8,036  

                           

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Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Datacom, LLC

 

Technology and Telecommunications Provider

                       

     

8% Secured Debt (Maturity—May 30, 2017)

    450     450     450  

     

5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)

    11,405     11,333     10,730  

     

Class A Preferred Member Units (15% cumulative)(8)

          1,181     1,270  

     

Class B Preferred Member Units (6,453 units)

          6,030     2,594  

                  18,994     15,044  

                           

Gamber-Johnson Holdings, LLC

 

Manufacturer of Ruggedized Computer Mounting Systems

                       

     

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)

    20,000     19,791     19,791  

     

Member Units (7,040 units)

          12,124     12,124  

                  31,915     31,915  

                           

Garreco, LLC

 

Manufacturer and Supplier of Dental Products

                       

     

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

    5,800     5,752     5,752  

     

Member Units (1,200 units)(8)

          1,200     1,090  

                  6,952     6,842  

                           

GRT Rubber Technologies LLC

 

Manufacturer of Engineered Rubber Products

                       

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)

    13,693     13,592     13,693  

     

Member Units (5,879 units)

          13,065     18,030  

                  26,657     31,723  

                           

Gulf Manufacturing, LLC

 

Manufacturer of Specialty Fabricated Industrial Piping Products

                       

     

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

    777     777     777  

     

Member Units (438 units)(8)

          2,980     8,770  

                  3,757     9,547  

                           

Gulf Publishing Holdings, LLC

 

Energy Focused Media and Publishing

                       

     

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

    10,000     9,904     9,904  

     

Member Units (3,124 units)

          3,124     3,124  

                  13,028     13,028  

                           

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

                       

     

Common Stock (107,456 shares)(8)

          718     3,030  

                           

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Hawthorne Customs and Dispatch Services, LLC

 

Facilitator of Import Logistics, Brokerage, and Warehousing

                       

     

Member Units (500 units)(8)

          589     280  

     

Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)

          1,215     2,220  

                  1,804     2,500  

                           

HW Temps LLC

 

Temporary Staffing Solutions

                       

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity July 2, 2020)(9)

    9,976     9,892     9,892  

     

Preferred Member Units (3,200 units)(8)

          3,942     4,950  

                  13,834     14,842  

                           

Hydratec, Inc.

 

Designer and Installer of Micro-Irrigation Systems

                       

     

Common Stock (7,095 shares)(8)

          7,095     15,760  

                           

IDX Broker, LLC

 

Provider of Marketing and CRM Tools for the Real Estate Industry

                       

     

12.5% Secured Debt (Maturity—November 15, 2018)

    11,350     11,291     11,350  

     

Member Units (5,400 units)

          5,606     6,440  

                  16,897     17,790  

                           

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

                       

     

15% Secured Debt (Maturity—July 15, 2016)

    3,100     3,100     3,100  

     

Warrants (1,046 equivalent units)

          1,129     2,540  

                  4,229     5,640  

                           

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

                       

     

Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2016)(9)

    4,355     4,343     4,355  

     

Member Units (627 units)(8)

          811     5,200  

                  5,154     9,555  

                           

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Lamb Ventures, LLC

 

Aftermarket Automotive Services Chain

                       

     

LIBOR Plus 5.75%, Current Coupon 6.22%, Secured Debt (Maturity—March 3, 2017)

    350     350     350  

     

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

    7,735     7,735     7,735  

     

Preferred Equity (non-voting)

          400     400  

     

Member Units (742 units)(8)

          5,273     5,740  

     

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

    894     894     894  

     

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

          625     1,620  

                  15,277     16,739  

                           

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

                       

     

8% Secured Debt (Maturity—August 22, 2016)

    1,514     1,514     1,514  

     

Preferred Equity (non-voting)

          434     430  

     

Warrants (71 equivalent units)

          54     30  

     

Member Units (700 units)

          100     260  

                  2,102     2,234  

                           

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)

 

Fabricator of Marine and Industrial Shelters

                       

     

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

    9,668     9,597     9,069  

     

Preferred Member Units (3,810 units)

          5,352     3,100  

                  14,949     12,169  

                           

MH Corbin Holding LLC

 

Manufacturer and Distributor of Traffic Safety Products

                       

     

10% Secured Debt (Maturity—August 31, 2020)

    13,650     13,533     13,533  

     

Preferred Member Units (4,000 shares)

          6,000     6,000  

                  19,533     19,533  

                           

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     2,420  

     

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

    859     859     859  

     

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

          250     550  

                  8,003     9,479  

                           

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

MSC Adviser I, LLC(16)

 

Third Party Investment Advisory Services

                       

     

Member Units (Fully diluted 100.0%)(8)

              26,912  

                           

Mystic Logistics Holdings, LLC

 

Logistics and Distribution Services Provider for Large Volume Mailers

                       

     

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

    9,360     9,215     9,360  

     

Common Stock (5,873 shares)(8)

          2,720     5,390  

                  11,935     14,750  

                           

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

                       

     

Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)

    2,713     2,688     2,713  

     

18% Secured Debt (Maturity—February 1, 2019)

    3,952     3,916     3,952  

     

Member Units (2,955 units)(8)

          2,975     9,770  

                  9,579     16,435  

                           

NRI Clinical Research, LLC

 

Clinical Research Service Provider

                       

     

14% Secured Debt (Maturity—September 8, 2017)

    4,510     4,454     4,510  

     

Warrants (251,723 equivalent units)

          252     400  

     

Member Units (1,454,167 units)

          765     1,482  

                  5,471     6,392  

                           

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

                       

     

6% Current / 6% PIK Secured Debt (Maturity—December 22, 2016)

    13,495     13,353     13,353  

     

Warrants (14,331 equivalent units)

          817     130  

     

Member Units (50,877 units)

          2,900     410  

                  17,070     13,893  

                           

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

                       

     

Common Stock (1,500 shares)

          1,080     15,580  

                           

Pegasus Research Group, LLC (Televerde)

 

Provider of Telemarketing and Data Services

                       

     

Member Units (460 units)(8)

          1,290     8,620  

                           

PPL RVs, Inc.

 

Recreational Vehicle Dealer

                       

     

11.1% Secured Debt (Maturity—July 1, 2016)

    9,710     9,710     9,710  

     

Common Stock (1,962 shares)

          2,150     11,190  

                  11,860     20,900  

                           

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Principle Environmental, LLC

 

Noise Abatement Service Provider

                       

     

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

    4,060     4,060     4,060  

     

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

    3,344     3,344     3,344  

     

Preferred Member Units (19,631 units)

          4,663     4,600  

     

Warrants (1,036 equivalent units)

          1,200     20  

                  13,267     12,024  

                           

Quality Lease Service, LLC

 

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

     

8% PIK Secured Debt (Maturity—June 8, 2020)

    6,790     6,790     6,790  

     

Member Units (1,000 units)

          568     2,638  

                  7,358     9,428  

                           

River Aggregates, LLC

 

Processor of Construction Aggregates

                       

     

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

    750     591     591  

     

Member Units (1,150 units)(8)

          1,150     4,600  

     

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

          369     2,440  

                  2,110     7,631  

                           

SoftTouch Medical Holdings LLC

 

Home Provider of Pediatric Durable Medical Equipment

                       

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)

    7,650     7,595     7,650  

     

Member Units (4,450 units)(8)

          4,930     8,570  

                  12,525     16,220  

                           

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

     

9% Secured Debt (Maturity—October 2, 2018)

    2,924     2,921     2,921  

     

Series A Preferred Units (2,500 units; 10% Cumulative)

          2,500     500  

     

Warrants (1,424 equivalent units)

          1,096      

     

Member Units (MPI Real Estate Holdings, LLC) (100% Fully diluted)(8)

          2,300     2,300  

                  8,817     5,721  

                           

Travis Acquisition LLC

 

Manufacturer of Aluminum Trailers

                       

     

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

    3,245     3,212     3,245  

     

Member Units (7,282 units)

          7,100     20,370  

                  10,312     23,615  

                           

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

                       

     

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

    1,098     1,098     1,098  

     

Member Units (2,011 units)(8)

          3,843     5,710  

                  4,941     6,808  

                           

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

                       

     

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

    2,964     2,955     2,955  

     

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

          3,000     3,370  

     

Common Stock (1,126,242 shares)

          3,706     140  

                  9,661     6,465  

                           

Ziegler's NYPD, LLC

 

Casual Restaurant Group

                       

     

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

    1,000     993     993  

     

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

    300     300     300  

     

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

    2,750     2,750     2,750  

     

Warrants (587 equivalent units)

          600     210  

     

Preferred Member Units (10,072 units)

          2,834     3,530  

                  7,477     7,783  

Subtotal Control Investments (30.2% of total investments at fair value)

  $ 410,816   $ 570,409  

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Affiliate Investments(6)

 

 

 

 

                   

                           

AFG Capital Group, LLC

 

Provider of Rent-to-Own Financing Solutions and Services

                       

     

11% Secured Debt (Maturity—November 7, 2019)

  $ 12,960   $ 12,648   $ 12,826  

     

Warrants (42 equivalent units)

          259     570  

     

Member Units (186 units)

          1,200     2,330  

                  14,107     15,726  

                           

Barfly Ventures, LLC(10)

 

Casual Restaurant Group

                       

     

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

    5,040     4,949     4,856  

     

Options (2 equivalent units)

          397     470  

     

Warrant (1 equivalent unit)

          473     240  

                  5,819     5,566  

                           

BBB Tank Services, LLC

 

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

                       

     

12% Current / 1% PIK Secured Debt (Maturity—April 8, 2021)

    4,009     3,967     3,967  

     

Member Units (800,000 units)

          800     800  

                  4,767     4,767  

                           

Boss Industries, LLC

 

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

                       

     

Preferred Member Units (2,242 units)(8)

          2,333     2,560  

                           

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions Provider

                       

     

13% Secured Debt (Maturity—April 18, 2017)

    7,000     6,929     7,000  

     

Warrants (22 equivalent shares)

          200     1,380  

                  7,129     8,380  

                           

Buca C, LLC

 

Casual Restaurant Group

                       

     

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)

    23,211     23,020     23,211  

     

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

          3,820     5,540  

                  26,840     28,751  

                           

CAI Software LLC

 

Provider of Specialized Enterprise Resource Planning Software

                       

     

12% Secured Debt (Maturity—October 10, 2019)

    4,020     3,991     4,020  

     

Member Units (65,356 units)(8)

          654     1,740  

                  4,645     5,760  

                           

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

CapFusion, LLC(13)

 

Non-Bank Lender to Small Businesses

                       

     

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

    11,200     9,933     9,933  

     

Warrants (1,600 equivalent units)

          1,200     1,200  

                  11,133     11,133  

                           

Chandler Signs Holdings, LLC(10)

 

Sign Manufacturer

                       

     

12% Secured Debt (Maturity—July 4, 2021)

    4,500     4,458     4,458  

     

Class A Units (1,500,000 units)(8)

          1,500     1,500  

                  5,958     5,958  

                           

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays Provider

                       

     

Member Units (3,936 units)(8)

          100     1,460  

                           

Congruent Credit Opportunities Funds(12)(13)

 

Investment Partnership

                       

     

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

          5,778     1,315  

     

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

          14,550     14,640  

                  20,328     15,955  

                           

Daseke, Inc.

 

Specialty Transportation Provider

                       

     

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

    21,523     21,312     21,523  

     

Common Stock (19,467 shares)

          5,213     22,660  

                  26,525     44,183  

                           

Dos Rios Partners(12)(13)

 

Investment Partnership

                       

     

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)

          4,174     2,482  

     

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)

          1,325     671  

                  5,499     3,153  

                           

Dos Rios Stone Products LLC(10)

 

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                       

     

Class A Units (2,000,000 units)

          2,000     2,000  

                           

East Teak Fine Hardwoods, Inc.

 

Distributor of Hardwood Products

                       

     

Common Stock (6,250 shares)(8)

          480     860  

                           

East West Copolymer & Rubber, LLC

 

Manufacturer of Synthetic Rubbers

                       

     

12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)

    9,600     9,477     9,477  

     

Warrants (2,510,790 equivalent units)

          50     50  

                  9,527     9,527  

                           

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

EIG Fund Investments(12)(13)

 

Investment Partnership

                       

     

LP Interests (EIG Global Private Debt fund—A, L.P.) (Fully diluted 11.1%)(8)

          2,780     2,780  

                           

EIG Traverse Co-Investment, L.P.(12)(13)

 

Investment Partnership

                       

     

LP Interests (Fully diluted 22.2%)(8)

          9,805     9,930  

                           

Freeport Financial Funds(12)(13)

 

Investment Partnership

                       

     

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)

          5,974     5,699  

     

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)

          3,564     3,564  

                  9,538     9,263  

                           

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Liquidation of Distressed Assets

                       

     

10% Current Secured Debt (Maturity—November 21, 2016)

    13,046     12,976     11,010  

     

Warrants (29,025 equivalent units)

          400      

                  13,376     11,010  

                           

Glowpoint, Inc.

 

Provider of Cloud Managed Video Collaboration Services

                       

     

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

    9,000     8,937     7,637  

     

Common Stock (7,711,517 shares)

          3,958     2,310  

                  12,895     9,947  

                           

Guerdon Modular Holdings, Inc.

 

Multi-Family and Commercial Modular Construction Company

                       

     

9% Current / 4% PIK Secured Debt (Maturity—August 13, 2019)

    10,492     10,360     10,360  

     

Preferred Stock (404,998 shares)

          1,140     1,140  

     

Common Stock (212,033 shares)

          2,983     80  

                  14,483     11,580  

                           

Houston Plating and Coatings, LLC

 

Provider of Plating and Industrial Coating Services

                       

     

Member Units (265,756 units)

          1,429     5,330  

                           

I-45 SLF LLC(12)(13)

 

Investment Partnership

                       

     

Member units (Fully diluted 20.0%; 24.4% profits interest)(8)

          10,200     10,306  

                           

Indianhead Pipeline Services, LLC

 

Provider of Pipeline Support Services

                       

     

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

    5,550     5,467     5,467  

     

Preferred Member Units (33,819 units; 8% cumulative)(8)

          2,326     2,575  

     

Warrants (31,928 equivalent units)

          459      

     

Member Units (14,732 units)

          1      

                  8,253     8,042  

                           

14


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

KBK Industries, LLC

 

Manufacturer of Specialty Oilfield and Industrial Products

                       

     

10% Secured Debt (Maturity—September 28, 2017)

    600     600     600  

     

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

    5,900     5,882     5,900  

     

Member Units (250 units)(8)

          341     3,230  

                  6,823     9,730  

                           

L.F. Manufacturing Holdings, LLC(10)

 

Manufacturer of Fiberglass Products

                       

     

Member Units (2,179,001 units)(8)

          2,019     1,670  

                           

MPS Denver, LLC

 

Specialty Card Printing

                       

     

Member Units (13,800 units)

          1,130     840  

                           

OnAsset Intelligence, Inc.

 

Provider of Transportation Monitoring / Tracking Products and Services

                       

     

12% PIK Secured Debt (Maturity—December 31, 2015)(17)

    4,254     4,254     4,254  

     

Preferred Stock (912 shares; 7% cumulative)

          1,981     1,380  

     

Warrants (5,333 equivalent shares)

          1,919      

                  8,154     5,634  

                           

OPI International Ltd.(13)

 

Provider of Man Camp and Industrial Storage Services

                       

     

10% Unsecured Debt (Maturity—April 8, 2018)

    473     473     473  

     

Common Stock (20,766,317 shares)

          1,371     3,200  

                  1,844     3,673  

                           

PCI Holding Company, Inc.

 

Manufacturer of Industrial Gas Generating Systems

                       

     

12% Secured Debt (Maturity—March 31, 2019)

    13,000     12,879     13,000  

     

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

          3,053     4,239  

                  15,932     17,239  

                           

Radial Drilling Services Inc.

 

Oil and Gas Lateral Drilling Technology Provider

                       

     

12% Secured Debt (Maturity—November 22, 2016)(14)

    4,200     3,951     1,510  

     

Warrants (316 equivalent shares)

          758      

                  4,709     1,510  

                           

15


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

June 30, 2016

(dollars in thousands)

(Unaudited)

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

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)

 

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

     

12% Secured Debt (Maturity—January 8, 2018)(14)(18)

    30,785     30,281     250  

     

Preferred Member Units (250 units)

          2,500      

                  32,781     250  

                           

Tin Roof Acquisition Company

 

Casual Restaurant Group

                       

     

12% Secured Debt (Maturity—November 13, 2018)

    13,785     13,628     13,628  

     

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)

          2,603     2,603  

                  16,231     16,231  

                           

UniTek Global Services, Inc.(11)

 

Provider of Outsourced Infrastructure Services

                       

     

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)

    2,826     2,826     2,811  

     

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)

    994     994     988  

     

15% PIK Unsecured Debt (Maturity—July 13, 2019)

    691     691     688  

     

Preferred Stock (4,935,377 shares)

          4,935     5,990  

     

Common Stock (705,054 shares)

              2,100  

                  9,446     12,577  

                           

Universal Wellhead Services Holdings, LLC(10)

 

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

                       

     

Class A Preferred Units (4,000,000 units; 4.5% cumulative)(8)

          4,000     1,160  

                           

Valley Healthcare Group, LLC

 

Provider of Durable Medical Equipment

                       

     

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.00%, Secured Debt (Maturity—December 29, 2020)(9)

    10,816     10,717     10,717  

     

Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)