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TABLE OF CONTENTS

 

Filed Pursuant to Rule 497

Registration Statement No. 333-203147

 

 

Supplement, dated November 3, 2017
to

Prospectus, dated April 26, 2017,

Prospectus Supplement, dated May 10, 2017

and
Prospectus Supplement, dated July 18, 2017

 

This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of Main Street Capital Corporation (the “Company”) dated April 26, 2017 (the “Prospectus”), as supplemented by the Prospectus Supplement dated May 10, 2017 (the “ATM Prospectus Supplement”) and the Prospectus Supplement dated July 18, 2017 (the “DSPP Prospectus Supplement” and, together with the ATM Prospectus Supplement, the “Prospectus Supplements”), each as further supplemented from time to time including hereby. Capitalized terms used but not defined herein shall have the same meaning given them in the Prospectus Supplements 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, “Supplementary Risk Factors” beginning on page S-6 of the DSPP Prospectus Supplement 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 OFFERINGS

 

On May 10, 2017, we established an at-the-market program to which the ATM Prospectus Supplement relates and through which we may sell, from time to time and at our sole discretion up to 4,500,000 shares of our common stock. As of the date hereof, we have sold 1,762,919 shares of our common stock for net proceeds of approximately $68.2 million, after commissions to the Sales Agents on shares sold and offering costs, under the at-the-market program. As a result, 2,737,081 shares of our common stock remain available for sale under the at-the-market program.

 

On July 18, 2017, we established a Dividend Reinvestment and Direct Stock Purchase Plan (the “Plan”), which includes the direct stock purchase feature to which the DSPP Prospectus Supplement relates and through which we are offering up to 1,000,000 shares of our common stock.  As of the date hereof, we have sold 1,151 shares of our common stock for gross proceeds of approximately $46.0 thousand under the direct stock purchase feature of the Plan. As a result, 998,849 shares of our common stock remain available for sale under the direct stock purchase feature of the Plan.

 

FORM 10-Q

 

On November 3, 2017, we filed our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (the “Report”) with the Securities and Exchange Commission. We have attached the Report as Annex A to this supplement.

 



 

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, 2017

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, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o
(do not check if
smaller reporting company)
  Smaller reporting company o

Emerging growth company o

        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 2, 2017 was 58,097,927.


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

   

 

Consolidated Balance Sheets—September 30, 2017 (unaudited) and December 31, 2016

  1

 

Consolidated Statements of Operations (unaudited)—Three and nine months ended September 30, 2017 and 2016

  2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Nine months ended September 30, 2017 and 2016

  3

 

Consolidated Statements of Cash Flows (unaudited)—Nine months ended September 30, 2017 and 2016

  4

 

Consolidated Schedule of Investments (unaudited)—September 30, 2017

  5

 

Consolidated Schedule of Investments—December 31, 2016

  37

 

Notes to Consolidated Financial Statements (unaudited)

  71

 

Consolidated Financial Statement Schedule

  117

 

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Nine months ended September 30, 2017 and 2016

  117

Item 2.

 

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

  126

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

  151

Item 4.

 

Controls and Procedures

  152


PART II
OTHER INFORMATION

Item 1.

 

Legal Proceedings

  153

Item 1A.

 

Risk Factors

  153

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

  153

Item 5.

 

Other information

  153

Item 6.

 

Exhibits

  154

 

Signatures

  155

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

 
  September 30,
2017
  December 31,
2016
 
 
  (Unaudited)
   
 

ASSETS

             

Portfolio investments at fair value:

   
 
   
 
 

Control investments (cost: $527,609 and $439,674 as of September 30, 2017 and December 31, 2016, respectively)

  $ 715,873   $ 594,282  

Affiliate investments (cost: $376,957 and $394,699 as of September 30, 2017 and December 31, 2016, respectively)

    338,231     375,948  

Non-Control/Non-Affiliate investments (cost: $1,144,962 and $1,037,510 as of September 30, 2017 and December 31, 2016, respectively)                  

    1,115,877     1,026,676  

Total investments (cost: $2,049,528 and $1,871,883 as of September 30, 2017 and December 31, 2016, respectively)

    2,169,981     1,996,906  

Cash and cash equivalents

   
30,144
   
24,480
 

Interest receivable and other assets

    39,374     35,133  

Receivable for securities sold

    26,090     1,990  

Deferred financing costs (net of accumulated amortization of $5,344 and $4,598 as of September 30, 2017 and December 31, 2016, respectively)

    4,093     4,718  

Deferred tax asset, net

        9,125  

Total assets

  $ 2,269,682   $ 2,072,352  

LIABILITIES

             

Credit facility

  $ 355,000   $ 343,000  

SBIC debentures (par: $274,800 and $240,000 as of September 30, 2017 and December 31, 2016, respectively)

    269,345     235,686  

4.50% Notes (par: $175,000 as of both September 30, 2017 and December 31, 2016)

    173,435     172,893  

6.125% Notes (par: $90,655 as of both September 30, 2017 and December 31, 2016)

    88,981     88,752  

Accounts payable and other liabilities

    14,357     14,205  

Payable for securities purchased

    23,172     2,184  

Interest payable

    3,609     4,103  

Dividend payable

    10,935     10,048  

Deferred tax liability, net

    1,182      

Total liabilities

    940,016     870,871  

Commitments and contingencies (Note M)

             

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 57,680,789 and 54,312,444 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively)

    577     543  

Additional paid-in capital

    1,272,175     1,143,883  

Accumulated net investment income, net of cumulative dividends of $603,902 and $521,297 as of September 30, 2017 and December 31, 2016, respectively

    29,099     19,033  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $76,236 before cumulative dividends of $133,997 as of September 30, 2017 and accumulated net realized gain from investments of $48,394 before cumulative dividends of $107,281 as of December 31, 2016)

    (57,761 )   (58,887 )

Net unrealized appreciation, net of income taxes

    85,576     96,909  

Total net assets

    1,329,666     1,201,481  

Total liabilities and net assets

  $ 2,269,682   $ 2,072,352  

NET ASSET VALUE PER SHARE

  $ 23.02   $ 22.10  

   

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

1


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

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

(Unaudited)

 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 
  2017   2016   2017   2016  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 15,145   $ 14,826   $ 42,720   $ 40,398  

Affiliate investments

    10,134     9,619     29,601     27,095  

Non-Control/Non-Affiliate investments

    26,507     22,149     77,623     63,841  

Interest, fee and dividend income

    51,786     46,594     149,944     131,334  

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

        5         174  

Total investment income

    51,786     46,599     149,944     131,508  

EXPENSES:

                         

Interest

    (9,420 )   (8,573 )   (26,820 )   (25,010 )

Compensation

    (4,777 )   (4,309 )   (13,762 )   (12,081 )

General and administrative

    (2,748 )   (2,247 )   (8,748 )   (6,808 )

Share-based compensation

    (2,476 )   (2,137 )   (7,542 )   (5,977 )

Expenses allocated to the External Investment Manager

    1,664     1,224     4,816     3,739  

Total expenses

    (17,757 )   (16,042 )   (52,056 )   (46,137 )

NET INVESTMENT INCOME

    34,029     30,557     97,888     85,371  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

    (2,848 )   17,862     259     32,220  

Affiliate investments

    (9,896 )   (3,447 )   12,920     25,260  

Non-Control/Non-Affiliate investments

    2,038     (10,033 )   14,663     (22,452 )

Marketable securities and idle funds investments

        (96 )       (1,681 )

SBIC debentures

            (5,217 )    

Total net realized gain (loss)

    (10,706 )   4,286     22,625     33,347  

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):

   
 
   
 
   
 
   
 
 

Portfolio investments

    16,368     8,376     (4,358 )   (29,738 )

Marketable securities and idle funds investments

        235         1,729  

SBIC debentures

    (221 )   (801 )   5,408     (820 )

Total net change in unrealized appreciation (depreciation)             

    16,147     7,810     1,050     (28,829 )

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    (799 )   (904 )   (2,489 )   (2,372 )

Deferred taxes

    (3,772 )   1,432     (9,894 )   3,390  

Income tax benefit (provision)

    (4,571 )   528     (12,383 )   1,018  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 34,899   $ 43,181   $ 109,180   $ 90,907  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.60   $ 0.58   $ 1.74   $ 1.66  

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

  $ 0.61   $ 0.82   $ 1.94   $ 1.76  

DIVIDENDS PAID PER SHARE:

                         

Regular monthly dividends

  $ 0.555   $ 0.540   $ 1.665   $ 1.620  

Supplemental dividends

            0.275     0.275  

Total dividends

  $ 0.555   $ 0.540   $ 1.940   $ 1.895  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    57,109,104     52,613,277     56,140,953     51,538,745  

   

The accompanying notes are an integral part of these consolidated 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, 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 (decrease) 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  

Balances at December 31, 2016

    54,354,857   $ 543   $ 1,143,883   $ 19,033   $ (58,887 ) $ 96,909   $ 1,201,481  

Public offering of common stock, net of offering costs

   
3,119,581
   
31
   
118,087
   
   
   
   
118,118
 

Share-based compensation

            7,542                 7,542  

Purchase of vested stock for employee payroll tax withholding

    (113,371 )   (1 )   (4,350 )               (4,351 )

Investment through issuance of unregistered shares

    11,464         442                 442  

Dividend reinvestment

    158,301     2     6,085                 6,087  

Amortization of directors' deferred compensation

            488                 488  

Issuance of restricted stock, net of forfeited shares

    225,361     2     (2 )                

Dividends to stockholders

                (82,605 )   (26,716 )       (109,321 )

Net increase (decrease) resulting from operations

                92,671     27,842     (11,333 )   109,180  

Balances at September 30, 2017

    57,756,193   $ 577   $ 1,272,175   $ 29,099   $ (57,761 ) $ 85,576   $ 1,329,666  

   

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

3


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

 
  Nine Months Ended
September 30,
 
 
  2017   2016  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 109,180   $ 90,907  

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

             

Investments in portfolio companies

    (743,695 )   (420,036 )

Proceeds from sales and repayments of debt investments in portfolio companies

    527,562     274,907  

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

    80,078     73,017  

Investments in marketable securities and idle funds investments

        (523 )

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

        4,316  

Net change in net unrealized (appreciation) depreciation

    (1,050 )   28,829  

Net realized gain

    (22,625 )   (33,347 )

Accretion of unearned income

    (12,403 )   (7,073 )

Payment-in-kind interest

    (4,122 )   (4,911 )

Cumulative dividends

    (2,711 )   (1,470 )

Share-based compensation expense

    7,542     5,977  

Amortization of deferred financing costs

    2,022     1,931  

Deferred tax (benefit) provision

    9,894     (3,390 )

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (2,848 )   (685 )

Interest payable

    (494 )   (398 )

Accounts payable and other liabilities

    640     (247 )

Deferred fees and other

    2,050     1,644  

Net cash provided by (used in) operating activities

    (50,980 )   9,448  

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

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

    118,118     64,259  

Dividends paid

    (102,347 )   (86,655 )

Proceeds from issuance of SBIC debentures

    60,000     6,000  

Repayments of SBIC debentures

    (25,200 )    

Proceeds from credit facility

    394,000     254,000  

Repayments on credit facility

    (382,000 )   (232,000 )

Payment of deferred loan costs and SBIC debenture fees

    (1,576 )   (925 )

Purchases of vested stock for employee payroll tax withholding

    (4,351 )   (2,593 )

Other

        (83 )

Net cash provided by financing activities

    56,644     2,003  

Net increase in cash and cash equivalents

    5,664     11,451  

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    24,480     20,331  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 30,144   $ 31,782  

Supplemental cash flow disclosures:

             

Interest paid

  $ 25,200   $ 23,368  

Taxes paid

  $ 3,162   $ 1,762  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 6,087   $ 10,648  

   

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

4


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Control Investments(5)

 

 

 

 

                   

                           

Access Media Holdings, LLC(10)

 

Private Cable Operator

                       

     

5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)(19)

  $ 23,529   $ 23,529   $ 19,440  

     

Preferred Member Units (7,771,500 units)

          7,665     150  

     

Member Units (45 units)

          1      

                  31,195     19,590  

                           

ASC Interests, LLC

 

Recreational and Educational Shooting Facility

                       

     

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

    1,925     1,917     1,925  

     

Member Units (1,500 units)(8)

          1,500     1,820  

                  3,417     3,745  

                           

Bond-Coat, Inc.

 

Casing and Tubing Coating Services

                       

     

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

    11,596     11,586     11,596  

     

Common Stock (57,508 shares)

          6,350     8,430  

                  17,936     20,026  

                           

Café Brazil, LLC

 

Casual Restaurant Group

                       

     

Member Units (1,233 units)(8)

          1,742     5,390  

                           

CBT Nuggets, LLC

 

Produces and Sells IT Training Certification Videos

                       

     

Member Units (416 units)(8)

          1,300     71,850  

                           

Charps, LLC

 

Pipeline Maintenance and Construction

                       

     

12% Secured Debt (Maturity—February 3, 2022)

    18,400     18,217     18,217  

     

Preferred Member Units (1,600 units)

          400     400  

                  18,617     18,617  

                           

Clad-Rex Steel, LLC

 

Specialty Manufacturer of Vinyl-Clad Metal

                       

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity—December 20, 2021)(9)

    13,680     13,558     13,680  

     

Member Units (717 units)(8)

          7,280     8,520  

     

10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)

    1,188     1,177     1,177  

     

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

          210     210  

                  22,225     23,587  

                           

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Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

CMS Minerals Investments

 

Oil & Gas Exploration & Production

                       

     

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

          3,491     2,582  

                           

Copper Trail Energy Fund I, LP(12)(13)

 

Investment Partnership

                       

     

LP Interests (Fully diluted 30.1%)

          2,500     2,500  

                           

Datacom, LLC

 

Technology and Telecommunications Provider

                       

     

8% Secured Debt (Maturity—May 30, 2018)

    1,350     1,350     1,350  

     

5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)(19)

    12,133     12,088     11,370  

     

Class A Preferred Member Units

          1,181     1,360  

     

Class B Preferred Member Units (6,453 units)

          6,030      

                  20,649     14,080  

                           

Gamber-Johnson Holdings, LLC

 

Manufacturer of Ruggedized Computer Mounting Systems

                       

     

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.24%, Secured Debt (Maturity—June 24, 2021)(9)

    23,680     23,480     23,680  

     

Member Units (8,619 units)(8)

          14,844     22,960  

                  38,324     46,640  

                           

Garreco, LLC

 

Manufacturer and Supplier of Dental Products

                       

     

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity—March 31, 2020)(9)

    5,724     5,678     5,678  

     

Member Units (1,200 units)

          1,200     1,830  

                  6,878     7,508  

                           

GRT Rubber Technologies LLC

 

Manufacturer of Engineered Rubber Products

                       

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.24%, Secured Debt (Maturity—December 19, 2019)(9)

    12,030     11,969     12,030  

     

Member Units (5,879 units)(8)

          13,065     20,680  

                  25,034     32,710  

                           

Gulf Manufacturing, LLC

 

Manufacturer of Specialty Fabricated Industrial Piping Products

                       

     

Member Units (438 units)(8)

          2,980     10,680  

                           

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Gulf Publishing Holdings, LLC

 

Energy Industry Focused Media and Publishing

                       

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity—September 30, 2020)(9)

    80     80     80  

     

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

    12,800     12,697     12,697  

     

Member Units (3,681 units)

          3,681     4,330  

                  16,458     17,107  

                           

Harborside Holdings, LLC

 

Real Estate Holding Company

                       

     

Member units (100 units)

          6,206     9,400  

                           

Harrison Hydra-Gen, Ltd.

 

Manufacturer of Hydraulic Generators

                       

     

Common Stock (107,456 shares)

          718     2,800  

                           

HW Temps LLC

 

Temporary Staffing Solutions

                       

     

LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.24%, Secured Debt (Maturity July 2, 2020)(9)

    9,976     9,913     9,913  

     

Preferred Member Units (3,200 units)

          3,942     3,940  

                  13,855     13,853  

                           

Hydratec, Inc.

 

Designer and Installer of Micro-Irrigation Systems

                       

     

Common Stock (7,095 shares)(8)

          7,095     15,480  

                           

IDX Broker, LLC

 

Provider of Marketing and CRM Tools for the Real Estate Industry

                       

     

11.5% Secured Debt (Maturity—November 15, 2018)

    10,050     10,023     10,050  

     

Member Units (5,400 units)(8)

          5,606     9,000  

                  15,629     19,050  

                           

Jensen Jewelers of Idaho, LLC

 

Retail Jewelry Store

                       

     

Prime Plus 6.75% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity—November 14, 2019)(9)

    4,105     4,062     4,105  

     

Member Units (627 units)(8)

          811     4,460  

                  4,873     8,565  

                           

KBK Industries, LLC

 

Manufacturer of Specialty Oilfield and Industrial Products

                       

     

10% Secured Debt (Maturity—September 28, 2020)

    750     750     750  

     

12.5% Secured Debt (Maturity—September 28, 2020)

    5,900     5,900     5,900  

     

Member Units (325 units)(8)

          783     4,060  

                  7,433     10,710  

                           

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Lamb Ventures, LLC

 

Aftermarket Automotive Services Chain

                       

     

11% Secured Debt (Maturity—July 1, 2022)

    10,079     10,024     10,024  

     

Preferred Equity (non-voting)

          400     400  

     

Member Units (742 units)(8)

          5,273     6,430  

     

9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)

    432     428     432  

     

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

          625     520  

                  16,750     17,806  

                           

Marine Shelters Holdings, LLC

 

Fabricator of Marine and Industrial Shelters

                       

     

12% PIK Secured Debt (Maturity—December 28, 2017)(14)

    3,131     3,078      

     

Preferred Member Units (3,810 units)

          5,352      

                  8,430      

                           

Market Force Information, LLC

 

Provider of Customer Experience Management Services

                       

     

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.32%, Secured Debt (Maturity—July 28, 2022)(9)

    512     512     512  

     

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.32%, Secured Debt (Maturity—July 28, 2022)(9)

    23,520     23,293     23,293  

     

Member Units (657,113 units)

          14,700     14,700  

                  38,505     38,505  

                           

MH Corbin Holding LLC

 

Manufacturer and Distributor of Traffic Safety Products

                       

     

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

    12,775     12,694     12,694  

     

Preferred Member Units (4,000 shares)

          6,000     6,000  

                  18,694     18,694  

                           

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)

          1,810     980  

     

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

    802     802     802  

     

Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)

          790     1,290  

                  9,052     8,722  

                           

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

MSC Adviser I, LLC(16)

 

Third Party Investment Advisory Services

                       

     

Member Units (Fully diluted 100.0%)(8)

              39,304  

                           

Mystic Logistics Holdings, LLC

 

Logistics and Distribution Services Provider for Large Volume Mailers

                       

     

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

    7,768     7,686     7,768  

     

Common Stock (5,873 shares)

          2,720     6,590  

                  10,406     14,358  

                           

NAPCO Precast, LLC

 

Precast Concrete Manufacturing

                       

     

LIBOR Plus 8.50%, Current Coupon 9.82%, Secured Debt (Maturity—May 31, 2019)

    11,475     11,433     11,433  

     

Member Units (2,955 units)(8)

          2,975     10,830  

                  14,408     22,263  

                           

NRI Clinical Research, LLC

 

Clinical Research Service Provider

                       

     

LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—January 15, 2018)(9)

    400     400     400  

     

14% Secured Debt (Maturity—January 15, 2018)

    4,205     4,205     4,205  

     

Warrants (251,723 equivalent units; Expiration—September 8, 2021; Strike price—$0.01 per unit)

          252     500  

     

Member Units (500,000 units)

          765     2,500  

                  5,622     7,605  

                           

NRP Jones, LLC

 

Manufacturer of Hoses, Fittings and Assemblies

                       

     

8% Current / 4% PIK Secured Debt (Maturity—December 22, 2019)(19)

    15,037     15,037     15,037  

     

Member Units (65,208 units)

          3,717     1,260  

                  18,754     16,297  

                           

NuStep, LLC

 

Designer, Manufacturer and Distributor of Fitness Equipment

                       

     

12% Secured Debt (Maturity—January 31, 2022)

    20,600     20,411     20,411  

     

Preferred Member Units (406 units)

          10,200     10,200  

                  30,611     30,611  

                           

OMi Holdings, Inc.

 

Manufacturer of Overhead Cranes

                       

     

Common Stock (1,500 shares)(8)

          1,080     12,740  

                           

Pegasus Research Group, LLC

 

Provider of Telemarketing and Data Services

                       

     

Member Units (460 units)(8)

          1,290     9,350  

                           

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

PPL RVs, Inc.

 

Recreational Vehicle Dealer

                       

     

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.30%, Secured Debt (Maturity—November 15, 2021)(9)

    16,100     15,965     16,100  

     

Common Stock (1,962 shares)(8)

          2,150     11,780  

                  18,115     27,880  

                           

Principle Environmental, LLC
(d/b/a TruHorizon Environmental Solutions)

 

Noise Abatement Service Provider

                       

     

13% Secured Debt (Maturity—April 30, 2020)

    7,477     7,335     7,335  

     

Preferred Member Units (19,631 units)

          4,600     8,220  

     

Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)

          1,200     420  

                  13,135     15,975  

                           

Quality Lease Service, LLC

 

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

     

Zero Coupon Secured Debt (Maturity—June 8, 2020)

    7,341     7,341     6,950  

     

Member Units (1,000 units)

          2,768     4,838  

                  10,109     11,788  

                           

River Aggregates, LLC

 

Processor of Construction Aggregates

                       

     

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

    750     686     686  

     

Member Units (1,150 units)(8)

          1,150     4,410  

     

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

          369     2,510  

                  2,205     7,606  

                           

SoftTouch Medical Holdings LLC

 

Provider of In-Home Pediatric Durable Medical Equipment

                       

     

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.24%, Secured Debt (Maturity—October 31, 2019)(9)

    7,140     7,107     7,140  

     

Member Units (4,450 units)(8)

          4,930     9,540  

                  12,037     16,680  

                           

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

The MPI Group, LLC

 

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

     

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

    2,924     2,923     2,619  

     

Series A Preferred Units (2,500 units)

          2,500      

     

Warrants (1,424 equivalent units; Expiration—July 1, 2024; Strike price—$0.01 per unit)

          1,096      

     

Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)

          2,300     2,390  

                  8,819     5,009  

                           

Uvalco Supply, LLC

 

Farm and Ranch Supply Store

                       

     

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

    474     474     474  

     

Member Units (1,867 units)(8)

          3,579     4,307  

                  4,053     4,781  

                           

Vision Interests, Inc.

 

Manufacturer / Installer of Commercial Signage

                       

     

13% Secured Debt (Maturity—December 23, 2018)

    2,814     2,794     2,794  

     

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

          3,000     3,000  

     

Common Stock (1,126,242 shares)

          3,706      

                  9,500     5,794  

                           

Ziegler's NYPD, LLC

 

Casual Restaurant Group

                       

     

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

    1,000     995     995  

     

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; Expiration—September 29, 2018; Strike price—$0.01 per unit)

          600     190  

     

Preferred Member Units (10,072 units)

          2,834     3,400  

                  7,479     7,635  

Subtotal Control Investments (33.0% of total investments at fair value)

  $ 527,609   $ 715,873  

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

Affiliate Investments(6)

             

                           

AFG Capital Group, LLC

 

Provider of Rent-to-Own Financing Solutions and Services

                       

     

Warrants (42 equivalent units; Expiration—November 7, 2024; Strike price—$0.01 per unit)

        $ 259   $ 750  

     

Member Units (186 units)(8)

          1,200     3,130  

                  1,459     3,880  

                           

Barfly Ventures, LLC(10)

 

Casual Restaurant Group

                       

     

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

    8,715     8,568     8,689  

     

Options (2 equivalent units)

          397     780  

     

Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)

          473     440  

                  9,438     9,909  

                           

BBB Tank Services, LLC

 

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

                       

     

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity—April 8, 2021)(9)

    800     797     797  

     

15% Secured Debt (Maturity—April 8, 2021)

    4,027     3,995     3,995  

     

Member Units (800,000 units)

          800     580  

                  5,592     5,372  

                           

Boccella Precast Products LLC

 

Manufacturer of Precast Hollow Core Concrete

                       

     

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity—June 30, 2022)(9)

    16,400     16,223     16,223  

     

Member Units (2,160,000 units)

          2,160     2,160  

                  18,383     18,383  

                           

Boss Industries, LLC

 

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

                       

     

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

          2,570     3,730  

                           

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

Bridge Capital Solutions Corporation

 

Financial Services and Cash Flow Solutions Provider

                       

     

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

    7,500     5,810     5,810  

     

Warrants (63 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)

          2,132     3,370  

     

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

    1,000     992     1,000  

     

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

          1,000     1,000  

                  9,934     11,180  

                           

Buca C, LLC

 

Casual Restaurant Group

                       

     

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.48%, Secured Debt (Maturity—June 30, 2020)(9)

    21,204     21,078     21,078  

     

Preferred Member Units (6 units; 6% cumulative)(8)(19)

          4,115     4,110  

                  25,193     25,188  

                           

CAI Software LLC

 

Provider of Specialized Enterprise Resource Planning Software

                       

     

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

    3,483     3,466     3,483  

     

Member Units (65,356 units)(8)

          654     3,040  

                  4,120     6,523  

                           

CapFusion, LLC(13)

 

Non-Bank Lender to Small Businesses

                       

     

13% Secured Debt (Maturity—March 25, 2021)(14)

    11,320     10,260     6,678  

     

Warrants (1,600 equivalent units; Expiration—March 24, 2026; Strike price—$0.01 per unit)

          1,200      

                  11,460     6,678  

                           

Chandler Signs Holdings, LLC(10)

 

Sign Manufacturer

                       

     

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

    4,500     4,466     4,500  

     

Class A Units (1,500,000 units)(8)

          1,500     2,650  

                  5,966     7,150  

                           

Condit Exhibits, LLC

 

Tradeshow Exhibits / Custom Displays Provider

                       

     

Member Units (3,936 units)(8)

          100     1,840  

                           

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

Congruent Credit Opportunities Funds(12)(13)

 

Investment Partnership

                       

     

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

          5,730     1,515  

     

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

          17,869     18,714  

                  23,599     20,229  

                           

Dos Rios Partners(12)(13)

 

Investment Partnership

                       

     

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

          5,996     6,427  

     

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

          1,904     1,889  

                  7,900     8,316  

                           

Dos Rios Stone Products LLC(10)

 

Limestone and Sandstone Dimension Cut Stone Mining Quarries

                       

     

Class A Units (2,000,000 units)(8)

          2,000     1,870  

                           

East Teak Fine Hardwoods, Inc.

 

Distributor of Hardwood Products

                       

     

Common Stock (6,250 shares)(8)

          480     630  

                           

East West Copolymer & Rubber, LLC

 

Manufacturer of Synthetic Rubbers

                       

     

12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)(14)(15)

    3,734     3,626      

     

Warrants (2,510,790 equivalent units; Expiration—October 15, 2024; Strike price—$0.01 per unit)

          50      

                  3,676      

                           

EIG Fund Investments(12)(13)

 

Investment Partnership

                       

     

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

          295     247  

                           

Freeport Financial Funds(12)(13)

 

Investment Partnership

                       

     

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

          5,974     5,519  

     

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

          7,559     7,507  

                  13,533     13,026  

                           

14


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

Gault Financial, LLC (RMB Capital, LLC)

 

Purchases and Manages Collection of Healthcare and other Business Receivables

                       

     

10.5% Secured Debt (Maturity—January 1, 2019)

    12,592     12,592     11,642  

     

Warrants (29,032 equivalent units; Expiration—February 9, 2022; Strike price—$0.01 per unit)

          400      

                  12,992     11,642  

                           

Guerdon Modular Holdings, Inc.

 

Multi-Family and Commercial Modular Construction Company

                       

     

13% Secured Debt (Maturity—August 13, 2019)

    10,708     10,622     10,622  

     

Preferred Stock (404,998 shares)

          1,140     950  

     

Common Stock (212,033 shares)

          2,983      

                  14,745     11,572  

                           

Harris Preston Fund Investments(12)(13)

 

Investment Partnership

                       

     

LP Interests (HPEP 3, L.P.) (Fully diluted 9.9%)

          943     943  

     

LP Interests (2717 MH, L.P.) (Fully diluted 7.0%)

          400     400  

                  1,343     1,343  

                           

Hawk Ridge Systems, LLC(13)

 

Value-Added Reseller of Engineering Design and Manufacturing Solutions

                       

     

10% Secured Debt (Maturity—December 2, 2021)

    9,500     9,417     9,417  

     

Preferred Member Units (226 units)(8)

          2,850     3,230  

     

Preferred Member Units (HRS Services, ULC) (226 units)(8)

          150     170  

                  12,417     12,817  

                           

Houston Plating and Coatings, LLC

 

Provider of Plating and Industrial Coating Services

                       

     

8% Unsecured Convertible Debt (Maturity—May 1, 2022)

    3,000     3,000     3,080  

     

Member Units (315,756 units)

          2,179     5,560  

                  5,179     8,640  

                           

I-45 SLF LLC(12)(13)

 

Investment Partnership

                       

     

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

          16,200     16,897  

                           

L.F. Manufacturing Holdings, LLC(10)

 

Manufacturer of Fiberglass Products

                       

     

Member Units (2,179,001 units)

          2,019     1,850  

                           

15


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

Meisler Operating LLC

 

Provider of Short-term Trailer and Container Rental

                       

     

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity—June 7, 2022)(9)

    16,800     16,626     16,626  

     

Member Units (Milton Meisler Holdings LLC) (32,000 units)

          3,200     3,200  

                  19,826     19,826  

                           

OnAsset Intelligence, Inc.

 

Provider of Transportation Monitoring / Tracking Products and Services

                       

     

12% PIK Secured Debt (Maturity—June 30, 2021)(19)

    4,943     4,943     4,943  

     

10% PIK Unsecured Debt (Maturity—June 30, 2021)(19)

    47     47     47  

     

Preferred Stock (912 shares)

          1,981      

     

Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)

          1,919      

                  8,890     4,990  

                           

OPI International Ltd.(13)

 

Provider of Man Camp and Industrial Storage Services

                       

     

Common Stock (20,766,317 shares)

          1,371      

                           

PCI Holding Company, Inc.

 

Manufacturer of Industrial Gas Generating Systems

                       

     

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

    12,975     12,906     12,906  

     

Preferred Stock (1,740,000 shares)

          1,740     2,610  

     

Preferred Stock (1,500,000 shares; 20% cumulative)(8)(19)

          3,927     4,550  

                  18,573     20,066  

                           

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)(15)

    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)

    13,010     12,933     12,933  

     

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)(19)

          2,951     2,951  

                  15,884     15,884  

                           

16


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

September 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)(20)
  Business Description
  Type of Investment(2)(3)
  Principal(4)
  Cost(4)
  Fair
Value(18)

 
   

UniTek Global Services, Inc.(11)

 

Provider of Outsourced Infrastructure Services

                       

     

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity—January 13, 2019)(9)

    8,535     8,528     8,535  

     

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.80% / 1.00% PIK, Current Coupon Plus PIK 10.80%, Secured Debt (Maturity—January 13, 2019)(9)(19)

    137     137     137  

     

15% PIK Unsecured Debt (Maturity—July 13, 2019)(19)

    833     833     833  

     

Preferred Stock (2,596,567 shares; 19% cumulative)(8)(19)

          2,725     2,720  

     

Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)(19)

          7,115     7,080  

     

Common Stock (1,075,992 shares)

              2,320  

                  19,338     21,625  

                           

Universal Wellhead Services Holdings, LLC(10)

 

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

                       

     

Preferred Member Units (UWS Investments, LLC) (716,949 units)

          717     800  

     

Member Units (UWS Investments, LLC) (4,000,000 units)

          4,000     1,230  

                  4,717     2,030  

                           

Valley Healthcare Group, LLC

 

Provider of Durable Medical Equipment

                       

     

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.74%, Secured Debt (Maturity—December 29, 2020)(9)

    11,846     11,759     11,759  

     

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

          1,600     1,600