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TABLE OF CONTENTS

 

Filed Pursuant to Rule 497

Registration Statement No. 333-203147

 

 

Supplement, dated November 4, 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 1,215,326 shares of our common stock for net proceeds of approximately $40.0 million, after commissions to the Sales Agents on shares sold and offering costs, under the at-the-market program. As a result, 284,674 shares of our common stock remain available for sale under the at-the-market program.

 

FORM 10-Q

 

On November 4, 2016, we filed our Quarterly Report on Form 10-Q for the quarterly period ended September 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 September 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 November 3, 2016 was 53,036,148.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

       

 

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

    1  

 

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

    2  

 

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

    3  

 

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

    4  

 

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

    5  

 

Consolidated Schedule of Investments—December 31, 2015

    33  

 

Notes to Consolidated Financial Statements (unaudited)

    60  

 

Consolidated Financial Statement Schedule

       

 

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

    104  

Item 2.

 

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

    109  

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)

 
  September 30,
2016
  December 31,
2015
 
 
  (Unaudited)
   
 

ASSETS

             

Portfolio investments at fair value:

   
 
   
 
 

Control investments (cost: $401,190 and $387,727 as of September 30, 2016 and December 31, 2015, respectively)

  $ 547,651   $ 555,011  

Affiliate investments (cost: $368,553 and $333,728 as of September 30, 2016 and December 31, 2015, respectively)

    352,873     350,519  

Non-Control/Non-Affiliate investments (cost: $1,046,923 and $945,187 as of September 30, 2016 and December 31, 2015, respectively)

    1,019,743     894,466  

Total portfolio investments (cost: $1,816,666 and $1,666,642 as of September 30, 2016 and December 31, 2015, respectively)

    1,920,267     1,799,996  

Marketable securities and idle funds investments (cost: $0 and $5,407 as of September 30, 2016 and December 31, 2015, respectively)

        3,693  

Total investments (cost: $1,816,666 and $1,672,049 as of September 30, 2016 and December 31, 2015, respectively)

    1,920,267     1,803,689  

Cash and cash equivalents

   
31,782
   
20,331
 

Interest receivable and other assets

    33,500     27,737  

Receivable for securities sold

    503     9,901  

Deferred financing costs (net of accumulated amortization of $10,896 and $8,965 as of September 30, 2016 and December 31, 2015, respectively)

    12,259     13,267  

Deferred tax asset, net

    9,199     4,003  

Total assets

  $ 2,007,510   $ 1,878,928  

LIABILITIES

             

Credit facility

 
$

313,000
 
$

291,000
 

SBIC debentures (par: $231,000 ($15,000 due within one year) and $225,000 as of September 30, 2016 and December 31, 2015, respectively. Par of $75,200 is recorded at a fair value of $74,680 and $73,860 as of September 30, 2016 and December 31, 2015, respectively)

    230,480     223,660  

4.50% Notes

    175,000     175,000  

6.125% Notes

    90,655     90,738  

Accounts payable and other liabilities

    11,581     12,292  

Payable for securities purchased

    29,100     2,311  

Interest payable

    3,561     3,959  

Dividend payable

    9,783     9,074  

Total liabilities

    863,160     808,034  

Commitments and contingencies (Note M)

   
 
   
 
 

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 52,901,113 and 50,413,744 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively)

   
529
   
504
 

Additional paid-in capital

    1,090,197     1,011,467  

Accumulated net investment income, net of cumulative dividends of $471,478 and $417,347 as of September 30, 2016 and December 31, 2015, respectively

    38,421     7,181  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $52,352 before cumulative dividends of $112,539 as of September 30, 2016 and accumulated net realized gain from investments of $19,005 before cumulative dividends of $68,658 as of December 31, 2015)

    (60,187 )   (49,653 )

Net unrealized appreciation, net of income taxes

    75,390     101,395  

Total net assets

    1,144,350     1,070,894  

Total liabilities and net assets

  $ 2,007,510   $ 1,878,928  

NET ASSET VALUE PER SHARE

  $ 21.62   $ 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
September 30,
  Nine Months Ended
September 30,
 
 
  2016   2015   2016   2015  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 14,826   $ 13,437   $ 40,398   $ 36,264  

Affiliate investments

    9,619     6,852     27,095     19,862  

Non-Control/Non-Affiliate investments

    22,149     22,090     63,841     64,124  

Interest, fee and dividend income

    46,594     42,379     131,334     120,250  

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

    5     229     174     846  

Total investment income

    46,599     42,608     131,508     121,096  

EXPENSES:

                         

Interest

    (8,573 )   (8,302 )   (25,010 )   (23,755 )

Compensation

    (4,309 )   (3,727 )   (12,081 )   (11,055 )

General and administrative

    (2,247 )   (2,212 )   (6,808 )   (6,271 )

Share-based compensation

    (2,137 )   (1,651 )   (5,977 )   (4,592 )

Expenses allocated to the External Investment Manager

    1,224     1,145     3,739     3,133  

Total expenses

    (16,042 )   (14,747 )   (46,137 )   (42,540 )

NET INVESTMENT INCOME

    30,557     27,861     85,371     78,556  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

    17,862         32,220     3,324  

Affiliate investments

    (3,447 )   5,964     25,260     5,827  

Non-Control/Non-Affiliate investments

    (10,033 )   (6,195 )   (22,452 )   (16,836 )

Marketable securities and idle funds investments

    (96 )   (1,112 )   (1,681 )   (1,352 )

Total net realized gain (loss)

    4,286     (1,343 )   33,347     (9,037 )

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

                         

Portfolio investments

    8,376     (8,389 )   (29,738 )   21,716  

Marketable securities and idle funds investments

    235     (648 )   1,729     (521 )

SBIC debentures

    (801 )   (50 )   (820 )   (823 )

Total net change in unrealized appreciation (depreciation)            

    7,810     (9,087 )   (28,829 )   20,372  

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    (904 )   495     (2,372 )   (1,547 )

Deferred taxes

    1,432     2,742     3,390     8,551  

Income tax benefit

    528     3,237     1,018     7,004  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 43,181   $ 20,668   $ 90,907   $ 96,895  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.58   $ 0.56   $ 1.66   $ 1.61  

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

  $ 0.82   $ 0.41   $ 1.76   $ 1.99  

DIVIDENDS PAID PER SHARE:

                         

Regular monthly dividends

  $ 0.540   $ 0.525   $ 1.620   $ 1.560  

Supplemental dividends

            0.275     0.275  

Total dividends

  $ 0.540   $ 0.525   $ 1.895   $ 1.835  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    52,613,277     50,036,776     51,538,745     48,681,260  

   

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

            4,592                 4,592  

Purchase of vested stock for employee payroll tax withholding

    (54,840 )   (1 )   (1,739 )               (1,740 )

Dividend reinvestment

    444,957     4     13,654                 13,658  

Amortization of directors' deferred compensation

            292                 292  

Issuance of restricted stock, net of forfeited shares

    239,911     2     (2 )                

Dividends to stockholders

                (88,294 )   (2,168 )       (90,462 )

Net increase (loss) resulting from operations

                78,556     (9,037 )   27,376     96,895  

Balances at September 30, 2015

    50,079,178   $ 500   $ 998,123   $ 13,927   $ (31,661 ) $ 110,092   $ 1,090,981  

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

   
1,996,793
   
20
   
64,239
   
   
   
   
64,259
 

Share-based compensation

            5,977                 5,977  

Purchase of vested stock for employee payroll tax withholding

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

Dividend reinvestment

    339,544     3     10,645                 10,648  

Amortization of directors' deferred compensation

            464                 464  

Issuance of restricted stock, net of forfeited shares

    262,586     3     (3 )                

Dividends to stockholders

                (54,131 )   (43,881 )       (98,012 )

Cumulative-effect to retained earnings for excess tax benefit

                        1,806     1,806  

Net increase (loss) resulting from operations

                85,371     33,347     (27,811 )   90,907  

Balances at September 30, 2016

    52,931,917   $ 529   $ 1,090,197   $ 38,421   $ (60,187 ) $ 75,390   $ 1,144,350  

   

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)

 
  Nine Months Ended
September 30,
 
 
  2016   2015  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 90,907   $ 96,895  

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

             

Investments in portfolio companies

    (420,036 )   (727,099 )

Proceeds from sales and repayments of debt investments in portfolio companies               

    274,907     421,933  

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

    73,017     29,289  

Investments in marketable securities and idle funds investments

    (523 )   (4,483 )

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

    4,316     7,094  

Net change in net unrealized (appreciation) depreciation

    28,829     (20,372 )

Net realized (gain) loss

    (33,347 )   9,037  

Accretion of unearned income

    (7,073 )   (6,474 )

Payment-in-kind interest

    (4,911 )   (2,485 )

Cumulative dividends

    (1,470 )   (1,242 )

Share-based compensation expense

    5,977     4,592  

Amortization of deferred financing costs

    1,931     1,899  

Deferred tax benefit

    (3,390 )   (8,551 )

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (685 )   (3,493 )

Interest payable

    (398 )   147  

Accounts payable and other liabilities

    (247 )   (1,618 )

Deferred fees and other

    1,644     1,438  

Net cash provided by (used in) operating activities

    9,448     (203,493 )

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

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

    64,259     127,764  

Dividends paid

    (86,655 )   (75,453 )

Proceeds from issuance of SBIC debentures

    6,000      

Proceeds from credit facility

    254,000     473,000  

Repayments on credit facility

    (232,000 )   (345,000 )

Payment of deferred loan costs and SBIC debenture fees

    (925 )   (132 )

Purchases of vested stock for employee payroll tax withholding

    (2,593 )   (1,740 )

Other

    (83 )   (83 )

Net cash provided by financing activities

    2,003     178,356  

Net increase (decrease) in cash and cash equivalents

    11,451     (25,137 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    20,331     60,432  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 31,782   $ 35,295  

Supplemental cash flow disclosures:

             

Interest paid

  $ 23,368   $ 21,708  

Taxes paid

  $ 1,762   $ 2,504  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 10,648   $ 13,658  

   

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, 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)

  $ 22,380   $ 22,380   $ 19,720  

     

Preferred Member Units (6,232,500 units; 12% cumulative)

          6,126     250  

     

Member Units (45 units)

          1      

                  28,507     19,970  

                           

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     2,230     2,250  

     

Member Units (1,500 units)(8)

          1,500     2,680  

                  3,730     4,930  

                           

Bond-Coat, Inc.

 

Casing and Tubing Coating Services

                       

     

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

    11,596     11,547     11,596  

     

Common Stock (57,508 shares)

          6,350     5,090  

                  17,897     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     52,800  

                           

CMS Minerals Investments

 

Oil & Gas Exploration & Production

                       

     

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

          2,207     3,371  

     

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

          3,955     3,893  

                  6,162     7,264  

                           

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Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 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)

    900     900     900  

     

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

    11,558     11,491     10,888  

     

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

          1,181     1,318  

     

Class B Preferred Member Units (6,453 units)

          6,030     1,769  

                  19,602     14,875  

                           

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     19,798     19,798  

     

Member Units (7,040 units)

          12,124     12,124  

                  31,922     31,922  

                           

Garreco, LLC

 

Manufacturer and Supplier of Dental Products

                       

     

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

    5,550     5,511     5,511  

     

Member Units (1,200 units)(8)

          1,200     1,150  

                  6,711     6,661  

                           

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)

    13,484     13,390     13,484  

     

Member Units (5,879 units)(8)

          13,065     18,030  

                  26,455     31,514  

                           

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)

          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     9,907     9,907  

     

Member Units (3,124 units)

          3,124     3,124  

                  13,031     13,031  

                           

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

                       

     

Common Stock (107,456 shares)(8)

          718     3,340  

                           

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 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)

          589     280  

     

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

          1,215     2,040  

                  1,804     2,320  

                           

HW Temps LLC

 

Temporary Staffing Solutions

                       

     

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

    10,376     10,296     10,296  

     

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

          3,942     4,360  

                  14,238     14,656  

                           

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)

    11,250     11,197     11,250  

     

Member Units (5,400 units)(8)

          5,606     6,690  

                  16,803     17,940  

                           

Indianapolis Aviation Partners, LLC

 

Fixed Base Operator

                       

     

15% Secured Debt (Maturity—January 15, 2017)

    3,100     3,100     3,100  

     

Warrants (1,046 equivalent units)

          1,129     2,649  

                  4,229     5,749  

                           

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)

    4,205     4,200     4,205  

     

Member Units (627 units)(8)

          811     4,650  

                  5,011     8,855  

                           

Lamb Ventures, LLC

 

Aftermarket Automotive Services Chain

                       

     

LIBOR Plus 5.75%, Current Coupon 6.27%, Secured Debt (Maturity—March 3, 2017)

    139     139     139  

     

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     5,880  

     

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

    882     882     882  

     

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

          625     1,620  

                  15,054     16,656  

                           

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars in thousands)

(Unaudited)

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

Lighting Unlimited, LLC

 

Commercial and Residential Lighting Products and Design Services

                       

     

8% Secured Debt (Maturity—August 22, 2017)

    1,514     1,514     1,514  

     

Preferred Equity (non-voting)

          434     430  

     

Warrants (71 equivalent units)

          54     10  

     

Member Units (700 units)

          100     80  

                  2,102     2,034  

                           

Marine Shelters Holdings, LLC

 

Fabricator of Marine and Industrial Shelters

                       

     

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

    9,967     9,905     9,379  

     

Preferred Member Units (3,810 units)

          5,352     906  

                  15,257     10,285  

                           

MH Corbin Holding LLC

 

Manufacturer and Distributor of Traffic Safety Products

                       

     

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

    13,475     13,365     13,365  

     

Preferred Member Units (4,000 shares)

          6,000     6,000  

                  19,365     19,365  

                           

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 (3,554 units)

          1,244     2,300  

     

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

    847     847     847  

     

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

          250     600  

                  7,991     9,397  

                           

MSC Adviser I, LLC(16)

 

Third Party Investment Advisory Services

                       

     

Member Units (Fully diluted 100.0%)(8)

              30,133  

                           

Mystic Logistics Holdings, LLC

 

Logistics and Distribution Services Provider for Large Volume Mailers

                       

     

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

    9,176     9,043     9,176  

     

Common Stock (5,873 shares)

          2,720     5,150  

                  11,763     14,326  

                           

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

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

    2,713     2,690     2,713  

     

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

    3,952     3,919     3,952  

     

Member Units (2,955 units)(8)

          2,975     10,670  

                  9,584     17,335  

                           

NRI Clinical Research, LLC

 

Clinical Research Service Provider

                       

     

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

    4,510     4,464     4,510  

     

Warrants (251,723 equivalent units)

          252     650  

     

Member Units (1,454,167 units)

          765     2,321  

                  5,481     7,481  

                           

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

                       

     

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

    13,703     13,631     13,631  

     

Warrants (14,331 equivalent units)

          817     130  

     

Member Units (50,877 units)

          2,900     410  

                  17,348     14,171  

                           

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

                       

     

Common Stock (1,500 shares)

          1,080     14,390  

                           

Pegasus Research Group, LLC

 

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—December 31, 2016)

    9,710     9,710     9,710  

     

Common Stock (1,962 shares)(8)

          2,150     11,780  

                  11,860     21,490  

                           

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)

    3,361     3,361     3,361  

     

Preferred Member Units (19,631 units)

          4,663     4,600  

     

Warrants (1,036 equivalent units)

          1,200     20  

                  13,284     12,041  

                           

Quality Lease Service, LLC

 

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

     

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

    6,929     6,929     6,929  

     

Member Units (1,000 units)

          818     2,888  

                  7,747     9,817  

                           

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars 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     609     609  

     

Member Units (1,150 units)(8)

          1,150     4,600  

     

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

          369     2,510  

                  2,128     7,719  

                           

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)

    7,225     7,177     7,225  

     

Member Units (4,450 units)(8)

          4,930     8,670  

                  12,107     15,895  

                           

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

     

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

    2,924     2,922     2,922  

     

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

          2,500     360  

     

Warrants (1,424 equivalent units)

          1,096      

     

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

          2,300     2,300  

                  8,818     5,582  

                           

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

                       

     

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

    986     986     986  

     

Member Units (2,011 units)(8)

          3,843     4,860  

                  4,829     5,846  

                           

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

                       

     

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

    2,889     2,885     2,885  

     

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

          3,000     3,370  

     

Common Stock (1,126,242 shares)

          3,706     140  

                  9,591     6,395  

                           

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     220  

     

Preferred Member Units (10,072 units)

          2,834     3,700  

                  7,477     7,963  

                           

Subtotal Control Investments (28.5% of total investments at fair value)

  $ 401,190   $ 547,651  

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 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

                       

     

Warrants (42 equivalent units)

        $ 259   $ 620  

     

Member Units (186 units)

          1,200     2,530  

                  1,459     3,150  

                           

Barfly Ventures, LLC(10)

 

Casual Restaurant Group

                       

     

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

    5,958     5,854     5,761  

     

Options (2 equivalent units)

          397     420  

     

Warrant (1 equivalent unit)

          473     240  

                  6,724     6,421  

                           

BBB Tank Services, LLC

 

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

                       

     

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—April 8, 2021)(9)

    336     332     332  

     

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

    4,020     3,982     3,982  

     

Member Units (800,000 units)

          800     800  

                  5,114     5,114  

                           

Boss Industries, LLC

 

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

                       

     

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

          2,379     2,606  

                           

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions Provider

                       

     

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

    7,500     5,550     5,550  

     

Warrants (63 equivalent shares)

          2,132     3,312  

     

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

    1,000     990     990  

     

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

          1,000     1,000  

                  9,672     10,852  

                           

Buca C, LLC

 

Casual Restaurant Group

                       

     

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

    22,371     22,197     22,371  

     

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

          3,879     5,599  

                  26,076     27,970  

                           

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars in thousands)

(Unaudited)

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

CAI Software LLC

 

Provider of Specialized Enterprise Resource Planning Software

                       

     

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

    3,780     3,754     3,780  

     

Member Units (65,356 units)(8)

          654     2,150  

                  4,408     5,930  

                           

CapFusion, LLC(13)

 

Non-Bank Lender to Small Businesses

                       

     

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

    12,800     11,566     11,566  

     

Warrants (1,600 equivalent units)

          1,200     1,200  

                  12,766     12,766  

                           

Chandler Signs Holdings, LLC(10)

 

Sign Manufacturer

                       

     

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

    4,500     4,459     4,500  

     

Class A Units (1,500,000 units)(8)

          1,500     2,950  

                  5,959     7,450  

                           

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays Provider

                       

     

Member Units (3,936 units)(8)

          100     1,780  

                           

Congruent Credit Opportunities Funds(12)(13)

 

Investment Partnership

                       

     

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

          5,778     1,439  

     

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

          15,754     15,976  

                  21,532     17,415  

                           

Daseke, Inc.

 

Specialty Transportation Provider

                       

     

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

    21,660     21,471     21,660  

     

Common Stock (19,467 shares)

          5,213     21,640  

                  26,684     43,300  

                           

Dos Rios Partners(12)(13)

 

Investment Partnership

                       

     

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

          5,237     4,121  

     

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

          1,663     1,191  

                  6,900     5,312  

                           

Dos Rios Stone Products LLC(10)

 

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                       

     

Class A Units (2,000,000 units)(8)

          2,000     2,000  

                           

East Teak Fine Hardwoods, Inc.

 

Distributor of Hardwood Products

                       

     

Common Stock (6,250 shares)(8)

          480     860  

                           

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars in thousands)

(Unaudited)

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

East West Copolymer & Rubber, LLC

 

Manufacturer of Synthetic Rubbers

                       

     

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

    9,650     9,534     9,534  

     

Warrants (2,510,790 equivalent units)

          50     50  

                  9,584     9,584  

                           

EIG Fund Investments(12)(13)

 

Investment Partnership

                       

     

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

          2,788     2,788  

                           

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

 

Investment Partnership

                       

     

LP Interests (Fully diluted 22.2%)(8)

          9,805     10,027  

                           

Freeport Financial Funds(12)(13)

 

Investment Partnership

                       

     

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

          5,974     5,620  

     

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

          3,564     3,564  

                  9,538     9,184  

                           

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Liquidation of Distressed Assets

                       

     

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

    13,046     13,018     11,053  

     

Warrants (29,025 equivalent units)

          400      

                  13,418     11,053  

                           

Glowpoint, Inc.

 

Provider of Cloud Managed Video Collaboration Services

                       

     

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

    9,000     8,943     6,639  

     

Common Stock (7,711,517 shares)

          3,958     2,160  

                  12,901     8,799  

                           

Guerdon Modular Holdings, Inc.

 

Multi-Family and Commercial Modular Construction Company

                       

     

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

    10,599     10,476     10,476  

     

Preferred Stock (404,998 shares)

          1,140     1,140  

     

Common Stock (212,033 shares)

          2,983     80  

                  14,599     11,696  

                           

Houston Plating and Coatings, LLC

 

Provider of Plating and Industrial Coating Services

                       

     

Member Units (265,756 units)

          1,429     4,380  

                           

I-45 SLF LLC(12)(13)

 

Investment Partnership

                       

     

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

          12,200     12,586  

                           

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars in thousands)

(Unaudited)

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

Indianhead Pipeline Services, LLC

 

Provider of Pipeline Support Services

                       

     

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

    5,325     5,273     5,273  

     

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

          2,332     2,670  

     

Warrants (31,928 equivalent units)

          459      

     

Member Units (14,732 units)

          1      

                  8,065     7,943  

                           

KBK Industries, LLC

 

Manufacturer of Specialty Oilfield and Industrial Products

                       

     

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

    700     700     700  

     

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

    5,900     5,886     5,886  

     

Member Units (250 units)

          341     3,090  

                  6,927     9,676  

                           

L.F. Manufacturing Holdings, LLC(10)

 

Manufacturer of Fiberglass Products

                       

     

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

          2,019     1,380  

                           

OnAsset Intelligence, Inc.

 

Provider of Transportation Monitoring / Tracking Products and Services

                       

     

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

    4,384     4,384     4,384  

     

Preferred Stock (912 shares; 7% cumulative)

          1,981      

     

Warrants (5,333 equivalent shares)

          1,919      

                  8,284     4,384  

                           

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     12,888     13,000  

     

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

          3,212     5,040  

                  16,100     18,040  

                           

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  

                           

14


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Of Investments (Continued)

September 30, 2016

(dollars in thousands)

(Unaudited)

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

Tin Roof Acquisition Company

 

Casual Restaurant Group

                       

     

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

    13,682     13,539     13,539  

     

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

          2,670     2,670  

                  16,209     16,209  

                           

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     2,813  

     

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

    822     822     815  

     

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

    718     718     714  

     

Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)

          5,430     6,200  

     

Common Stock (705,054 shares)

              2,580  

                  9,796     13,122  

                           

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 13.02%, Secured Debt (Maturity—December 29, 2020)(9)

    10,716     10,622     10,622  

     

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

          1,600     1,600  

                  12,222     12,222  

                           

Volusion, LLC

 

Provider of Online Software-as-a-Service eCommerce Solutions

                       

     

10.5% Secured Debt (Maturity—January 26, 2020)

    17,500     16,391     16,391  

     

Preferred Member Units (4,876,670 units)

          14,000     14,000  

     

Warrants (950,618 equivalent units)

          1,400     1,400  

                  31,791     31,791