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TABLE OF CONTENTS

 

Filed Pursuant to Rule 497

Registration Statement No. 333-223483

 

 

Supplement, dated August 3, 2018
to

Prospectus, dated April 27, 2018,

Prospectus Supplement, dated May 8, 2018

and
Prospectus Supplement, dated May 10, 2018

 

This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of Main Street Capital Corporation (the “Company”) dated April 27, 2018 (the “Prospectus”), as supplemented by the Prospectus Supplement dated May 8, 2018 (the “DSPP Prospectus Supplement”) and the Prospectus Supplement dated May 10, 2018 (the “ATM Prospectus Supplement” and, together with the DSPP 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 15 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, 2018, 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 874,108 shares of our common stock for net proceeds of approximately $33.3 million, after commissions to the Sales Agents on shares sold and offering costs, under the at-the-market program. As a result, 3,625,892 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.  We are offering up to 1,000,000 shares of our common stock pursuant to the DSPP Prospectus Supplement, and, from May 8, 2018 through the date hereof, we have sold 2,717 shares of our common stock for gross proceeds of approximately $105.0 thousand thereunder. As a result, 997,283 shares of our common stock remain available for sale under the DSPP Prospectus Supplement.

 

FORM 10-Q

 

On August 3, 2018, we filed our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018 (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 June 30, 2018

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 August 2, 2018 was 60,581,858.

   


Table of Contents


TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.

 

Consolidated Financial Statements

   

 

Consolidated Balance Sheets—June 30, 2018 (unaudited) and December 31, 2017

  1

 

Consolidated Statements of Operations (unaudited)—Three and six months ended June 30, 2018 and 2017

  2

 

Consolidated Statements of Changes in Net Assets (unaudited)—Six months ended June 30, 2018 and 2017

  3

 

Consolidated Statements of Cash Flows (unaudited)—Six months ended June 30, 2018 and 2017

  4

 

Consolidated Schedule of Investments (unaudited)—June 30, 2018

  5

 

Consolidated Schedule of Investments—December 31, 2017

  31

 

Notes to Consolidated Financial Statements (unaudited)

  56

 

Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Six months ended June 30, 2018 and 2017

  99

Item 2.

 

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

  109

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

  132

Item 4.

 

Controls and Procedures

  133


PART II
OTHER INFORMATION

Item 1.

 

Legal Proceedings

  134

Item 1A.

 

Risk Factors

  134

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

  134

Item 6.

 

Exhibits

  134

 

Signatures

  136

Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

 
  June 30,
2018
  December 31,
2017
 
 
  (Unaudited)
   
 

ASSETS

             

  

             

Investments at fair value:

             

Control investments (cost: $694,340 and $530,034 as of June 30, 2018 and December 31, 2017, respectively)

  $ 913,963   $ 750,706  

Affiliate investments (cost: $360,559 and $367,317 as of June 30, 2018 and December 31, 2017, respectively)

    341,416     338,854  

Non-Control/Non-Affiliate investments (cost: $1,119,660 and $1,107,447 as of June 30, 2018 and December 31, 2017, respectively)

    1,108,752     1,081,745  

Total investments (cost: $2,174,559 and $2,004,798 as of June 30, 2018 and December 31, 2017, respectively)

    2,364,131     2,171,305  

  

             

Cash and cash equivalents

    40,484     51,528  

Interest receivable and other assets

    38,743     36,343  

Receivable for securities sold

    13,295     2,382  

Deferred financing costs (net of accumulated amortization of $6,101 and $5,600 as of June 30, 2018 and December 31, 2017, respectively)

    4,692     3,837  

Total assets

  $ 2,461,345   $ 2,265,395  

LIABILITIES

             

Credit facility

 
$

289,000
 
$

64,000
 

SBIC debentures (par: $313,800 and $295,800 as of June 30, 2018 and December 31, 2017, respectively)

    306,418     288,483  

4.50% Notes due 2022 (par: $185,000 as of both June 30, 2018 and December 31, 2017)

    182,319     182,015  

4.50% Notes due 2019 (par: $175,000 as of both June 30, 2018 and December 31, 2017)

    173,977     173,616  

6.125% Notes (par: $0 and $90,655 as of June 30, 2018 and December 31, 2017, respectively)

        89,057  

Accounts payable and other liabilities

    16,599     20,168  

Payable for securities purchased

    17,889     40,716  

Interest payable

    5,477     5,273  

Dividend payable

    11,477     11,146  

Deferred tax liability, net

    10,835     10,553  

Total liabilities

    1,013,991     885,027  

  

             

Commitments and contingencies (Note M)

             

NET ASSETS

   
 
   
 
 

Common stock, $0.01 par value per share (150,000,000 shares authorized; 60,400,572 and 58,660,680 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively)

   
603
   
586
 

Additional paid-in capital

    1,371,983     1,310,780  

Accumulated net investment income, net of cumulative dividends of $746,766 and $662,563 as of June 30, 2018 and December 31, 2017, respectively                 

    (1,168 )   7,921  

Accumulated net realized gain from investments (accumulated net realized gain from investments of $56,570 before cumulative dividends of $124,690 as of June 30, 2018 and accumulated net realized gain from investments of $64,576 before cumulative dividends of $124,690 as of December 31, 2017)

    (68,120 )   (60,114 )

Net unrealized appreciation, net of income taxes

    144,056     121,195  

Total net assets

    1,447,354     1,380,368  

Total liabilities and net assets

  $ 2,461,345   $ 2,265,395  

NET ASSET VALUE PER SHARE

  $ 23.96   $ 23.53  

   

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
June 30,
  Six Months Ended
June 30,
 
 
  2018   2017   2018   2017  

INVESTMENT INCOME:

                         

Interest, fee and dividend income:

                         

Control investments

  $ 23,875   $ 14,590   $ 45,830   $ 27,576  

Affiliate investments

    8,515     9,568     17,587     19,468  

Non-Control/Non-Affiliate investments

    27,479     26,113     52,395     51,116  

Total investment income

    59,869     50,271     115,812     98,160  

EXPENSES:

                         

Interest

    (10,833 )   (8,793 )   (21,098 )   (17,400 )

Compensation

    (5,673 )   (4,555 )   (11,164 )   (8,985 )

General and administrative

    (3,097 )   (3,060 )   (6,071 )   (6,000 )

Share-based compensation

    (2,432 )   (2,798 )   (4,735 )   (5,067 )

Expenses allocated to the External Investment Manager

    1,678     1,628     3,744     3,152  

Total expenses

    (20,357 )   (17,578 )   (39,324 )   (34,300 )

NET INVESTMENT INCOME

    39,512     32,693     76,488     63,860  

NET REALIZED GAIN (LOSS):

   
 
   
 
   
 
   
 
 

Control investments

    (8,413 )   3,789     4,681     3,108  

Affiliate investments

        (115 )       22,816  

Non-Control/Non-Affiliate investments

    (5,531 )   7,307     (11,165 )   12,625  

Realized loss on extinguishment of debt

    (1,522 )       (2,896 )   (5,217 )

Total net realized gain (loss)

    (15,466 )   10,981     (9,380 )   33,332  

NET UNREALIZED APPRECIATION (DEPRECIATION):

                         

Control investments

    26,046     5,166     3,072     17,046  

Affiliate investments

    (376 )   (674 )   13,862     (26,796 )

Non-Control/Non-Affiliate investments

    7,041     (3,127 )   4,895     (10,976 )

SBIC debentures

    (10 )   (36 )   1,348     5,629  

Total net unrealized appreciation (depreciation)

    32,701     1,329     23,177     (15,097 )

INCOME TAXES:

                         

Federal and state income, excise and other taxes

    852     (438 )   (34 )   (1,690 )

Deferred taxes

    (2,148 )   (1,736 )   (282 )   (6,122 )

Income tax provision

    (1,296 )   (2,174 )   (316 )   (7,812 )

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 55,451   $ 42,829   $ 89,969   $ 74,283  

NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED

  $ 0.66   $ 0.58   $ 1.29   $ 1.15  

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

  $ 0.93   $ 0.76   $ 1.52   $ 1.33  

DIVIDENDS PAID PER SHARE:

                         

Regular monthly dividends

  $ 0.570   $ 0.555   $ 1.140   $ 1.110  

Supplemental dividends

    0.275     0.275     0.275     0.275  

Total dividends

  $ 0.845   $ 0.830   $ 1.415   $ 1.385  

WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED

    59,828,751     56,166,782     59,343,199     55,648,854  

   

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, 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

   
2,104,424
   
22
   
78,412
   
   
   
   
78,434
 

Share-based compensation

            5,067                 5,067  

Purchase of vested stock for employee payroll tax withholding

    (113,371 )   (1 )   (4,346 )               (4,347 )

Investment through issuance of unregistered shares

    11,464         442                 442  

Dividend reinvestment

    115,807     1     4,403                 4,404  

Amortization of directors' deferred compensation

            326                 326  

Issuance of restricted stock, net of forfeited shares

    225,152     2     (2 )                

Dividends to stockholders

                (54,925 )   (22,420 )       (77,345 )

Net increase (decrease) resulting from operations

                58,643     38,549     (22,909 )   74,283  

Balances at June 30, 2017

    56,698,333   $ 567   $ 1,228,185   $ 22,751   $ (42,758 ) $ 74,000   $ 1,282,745  

Balances at December 31, 2017

    58,660,680   $ 586   $ 1,310,780   $ 7,921   $ (60,114 ) $ 121,195   $ 1,380,368  

Public offering of common stock, net of offering costs

   
1,432,185
   
14
   
53,748
   
   
   
   
53,762
 

Share-based compensation

            4,735                 4,735  

Purchase of vested stock for employee payroll tax withholding

    (109,693 )   (1 )   (4,076 )               (4,077 )

Dividend reinvestment

    168,426     2     6,379                 6,381  

Amortization of directors' deferred compensation

            419                 419  

Issuance of restricted stock, net of forfeited shares

    248,974     2     (2 )                

Dividends to stockholders

                (84,203 )           (84,203 )

Net increase (decrease) resulting from operations

                75,114     (8,006 )   22,861     89,969  

Balances at June 30, 2018

    60,400,572   $ 603   $ 1,371,983   $ (1,168 ) $ (68,120 ) $ 144,056   $ 1,447,354  

   

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)

 
  Six Months Ended
June 30,
 
 
  2018   2017  

CASH FLOWS FROM OPERATING ACTIVITIES

             

Net increase in net assets resulting from operations

  $ 89,969   $ 74,283  

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

             

Investments in portfolio companies

    (528,015 )   (471,548 )

Proceeds from sales and repayments of debt investments in portfolio companies          

    281,802     380,005  

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

    42,955     54,352  

Net unrealized (appreciation) depreciation

    (23,177 )   15,097  

Net realized (gain) loss

    9,380     (33,332 )

Accretion of unearned income

    (6,945 )   (9,091 )

Payment-in-kind interest

    (952 )   (3,125 )

Cumulative dividends

    (1,069 )   (1,789 )

Share-based compensation expense

    4,735     5,067  

Amortization of deferred financing costs

    1,685     1,324  

Deferred tax provision

    282     6,122  

Changes in other assets and liabilities:

             

Interest receivable and other assets

    (3,560 )   420  

Interest payable

    204     (289 )

Accounts payable and other liabilities

    (3,149 )   (3,058 )

Deferred fees and other

    2,162     1,224  

Net cash provided by (used in) operating activities

    (133,693 )   15,662  

CASH FLOWS FROM FINANCING ACTIVITIES

   
 
   
 
 

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

    53,762     78,434  

Dividends paid

    (77,492 )   (72,505 )

Proceeds from issuance of SBIC debentures

    22,000     46,400  

Repayments of SBIC debentures

    (4,000 )   (25,200 )

Redemption of 6.125% Notes

    (90,655 )    

Proceeds from credit facility

    427,000     251,000  

Repayments on credit facility

    (202,000 )   (291,000 )

Payment of deferred issuance costs and SBIC debenture fees

    (1,889 )   (1,125 )

Purchases of vested stock for employee payroll tax withholding

    (4,077 )   (4,347 )

Net cash provided by (used in) financing activities

    122,649     (18,343 )

Net decrease in cash and cash equivalents

    (11,044 )   (2,681 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

    51,528     24,480  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $ 40,484   $ 21,799  

Supplemental cash flow disclosures:

             

Interest paid

  $ 19,147   $ 16,304  

Taxes paid

  $ 4,075   $ 2,785  

Non-cash financing activities:

             

Shares issued pursuant to the DRIP

  $ 6,381   $ 4,404  

   

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

4


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Control Investments(5)

     

 

 

 

                   

                               

Access Media Holdings, LLC(10)

  July 22, 2015  

Private Cable Operator

                       

         

10% PIK Secured Debt (Maturity—July 22, 2020)(14)(19)

  $ 23,828   $ 23,828   $ 15,120  

         

Preferred Member Units (8,977,500 units)

          8,871      

         

Member Units (45 units)

          1      

                      32,700     15,120  

                               

ASC Interests, LLC

  August 1, 2013  

Recreational and Educational Shooting Facility

                       

         

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

    1,650     1,649     1,649  

         

Member Units (1,500 units)

          1,500     1,370  

                      3,149     3,019  

                               

ATS Workholding, LLC(10)

  March 10, 2014  

Manufacturer of Machine Cutting Tools and Accessories

                       

         

5% Secured Debt (Maturity—November 16, 2021)

    4,605     4,179     4,179  

         

Preferred Member Units (3,725,862 units)

          3,726     3,726  

                      7,905     7,905  

                               

Bond-Coat, Inc.

  December 28, 2012  

Casing and Tubing Coating Services

                       

         

12% Secured Debt (Maturity—December 28, 2020)

    11,596     11,319     11,319  

         

Common Stock (57,508 shares)

          6,350     9,370  

                      17,669     20,689  

                               

Brewer Crane Holdings, LLC

  January 9, 2018  

Provider of Crane Rental and Operating Services

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity—January 9, 2023)(9)

    9,796     9,706     9,706  

         

Preferred Member Units (2,950 units)(8)

          4,280     4,280  

                      13,986     13,986  

Café Brazil, LLC

  April 20, 2004  

Casual Restaurant Group

                       

         

Member Units (1,233 units)(8)

          1,742     4,780  

                               

California Splendor Holdings LLC

  March 30, 2018  

Processor of Frozen Fruits

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity—March 30, 2023)(9)

    9,271     9,157     9,157  

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity—March 30, 2023)(9)

    28,000     27,733     27,733  

         

Preferred Member Units (6,157 units)(8)

          10,775     10,775  

                      47,665     47,665  

                               

CBT Nuggets, LLC

  June 1, 2006  

Produces and Sells IT Training Certification Videos

                       

         

Member Units (416 units)(8)

          1,300     64,040  

                               

5


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Chamberlin Holding LLC

  February 26, 2018  

Roofing and Waterproofing Specialty Contractor

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity—February 26, 2023)(9)

    21,600     21,397     21,397  

         

Member Units (4,347 units)(8)

          11,440     11,440  

                      32,837     32,837  

                               

Charps, LLC

  February 3, 2017  

Pipeline Maintenance and Construction

                       

         

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

    15,900     15,762     15,762  

         

Preferred Member Units (1,600 units)

          400     1,190  

                      16,162     16,952  

                               

Clad-Rex Steel, LLC

  December 20, 2016  

Specialty Manufacturer of Vinyl-Clad Metal

                       

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.48%, Secured Debt (Maturity—December 20, 2021)(9)

    12,880     12,783     12,880  

         

Member Units (717 units)(8)

          7,280     9,780  

         

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

    1,173     1,161     1,173  

         

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

          210     280  

                      21,434     24,113  

                               

CMS Minerals Investments

  January 30, 2015  

Oil & Gas Exploration & Production

                       

         

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

          3,036     2,736  

                               

Copper Trail Fund Investments(12)(13)

  July 17, 2017  

Investment Partnership

                       

         

LP Interests (CTMH, LP) (Fully diluted 38.8%)

          872     872  

         

LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)(8)

          3,270     3,270  

                      4,142     4,142  

                               

Datacom, LLC

  May 30, 2014  

Technology and Telecommunications Provider

                       

         

8% Secured Debt (Maturity—May 30, 2018)(14)(17)

    1,800     1,800     1,800  

         

5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)(14)(19)

    12,511     12,479     10,560  

         

Class A Preferred Member Units

          1,181      

         

Class B Preferred Member Units (6,453 units)

          6,030      

                      21,490     12,360  

                               

Digital Products Holdings LLC

  April 1, 2018  

Designer and Distributor of Consumer Electronics

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—April 1, 2023)(9)

    26,400     26,146     26,146  

         

Preferred Member Units (3,451 shares)(8)

          8,800     8,800  

                      34,946     34,946  

                               

6


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Direct Marketing Solutions, Inc.

  February 13, 2018  

Provider of Omni-Channel Direct Marketing Services

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.00%, Secured Debt (Maturity—February 13, 2023)(9)

    18,487     18,298     18,298  

         

Preferred Stock (8,400 shares)

          8,400     8,400  

                      26,698     26,698  

                               

Gamber-Johnson Holdings, LLC

  June 24, 2016  

Manufacturer of Ruggedized Computer Mounting Systems

                       

         

LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity—June 24, 2021)(9)

    22,910     22,748     22,910  

         

Member Units (8,619 units)(8)

          14,844     33,380  

                      37,592     56,290  

                               

Garreco, LLC

  July 15, 2013  

Manufacturer and Supplier of Dental Products

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—March 31, 2020)(9)

    5,362     5,331     5,331  

         

Member Units (1,200 units)

          1,200     1,940  

                      6,531     7,271  

                               

GRT Rubber Technologies LLC

  December 19, 2014  

Manufacturer of Engineered Rubber Products

                       

         

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.98%, Secured Debt (Maturity—December 19, 2019)(9)

    10,782     10,744     10,782  

         

Member Units (5,879 units)(8)

          13,065     25,450  

                      23,809     36,232  

                               

Guerdon Modular Holdings, Inc.

  August 13, 2014  

Multi-Family and Commercial Modular Construction Company

                       

         

13% Secured Debt (Maturity—March 1, 2019)

    12,588     12,526     11,956  

         

Preferred Stock (404,998 shares)

          1,140      

         

Common Stock (212,033 shares)

          2,983      

         

Warrants (6,208,877 equivalent shares; Expiration—April 25, 2028; Strike price—$0.01 per unit)

               

                      16,649     11,956  

                               

Gulf Manufacturing, LLC

  August 31, 2007  

Manufacturer of Specialty Fabricated Industrial Piping Products

                       

         

Member Units (438 units)(8)

          2,980     11,150  

                               

Gulf Publishing Holdings, LLC

  April 29, 2016  

Energy Industry Focused Media and Publishing

                       

         

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.48%, Secured Debt (Maturity—September 30, 2020)(9)

    160     160     160  

         

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

    12,666     12,582     12,582  

         

Member Units (3,681 units)

          3,681     4,570  

                      16,423     17,312  

                               

Harborside Holdings, LLC

  March 20, 2017  

Real Estate Holding Company

                       

         

Member units (100 units)

          6,306     9,500  

                               

7


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Harris Preston Fund Investments(12)(13)

  October 1, 2017  

Investment Partnership

                       

         

LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)

          786     879  

                               

Harrison Hydra-Gen, Ltd.

  June 4, 2010  

Manufacturer of Hydraulic Generators

                       

         

Common Stock (107,456 shares)(8)

          718     6,840  

                               

HW Temps LLC

  July 2, 2015  

Temporary Staffing Solutions

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.98%, Secured Debt (Maturity July 2, 2020)(9)

    9,976     9,927     9,927  

         

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

          3,942     3,942  

                      13,869     13,869  

                               

IDX Broker, LLC

  November 15, 2013  

Provider of Marketing and CRM Tools for the Real Estate Industry

                       

         

11.5% Secured Debt (Maturity—November 15, 2020)

    14,650     14,540     14,650  

         

Preferred Member Units (5,607 units)(8)

          5,952     11,550  

                      20,492     26,200  

                               

Jensen Jewelers of Idaho, LLC

  November 14, 2006  

Retail Jewelry Store

                       

         

Prime Plus 6.75% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity—November 14, 2019)(9)

    3,655     3,626     3,655  

         

Member Units (627 units)(8)

          811     4,600  

                      4,437     8,255  

                               

KBK Industries, LLC

  January 23, 2006  

Manufacturer of Specialty Oilfield and Industrial Products

                       

         

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

    5,900     5,870     5,900  

         

Member Units (325 units)(8)

          783     5,620  

                      6,653     11,520  

                               

Lamb Ventures, LLC

  May 30, 2008  

Aftermarket Automotive Services Chain

                       

         

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

    8,339     8,300     8,339  

         

Preferred Equity (non-voting)

          400     400  

         

Member Units (742 units)

          5,273     6,730  

         

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     570  

                      15,026     16,471  

                               

Market Force Information, LLC

  July 28, 2017  

Provider of Customer Experience Management Services

                       

         

LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.30%, Secured Debt (Maturity—July 28, 2022)(9)

    22,800     22,606     22,606  

         

Member Units (657,113 units)

          14,700     14,360  

                      37,306     36,966  

                               

8


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

MH Corbin Holding LLC

  August 31, 2015  

Manufacturer and Distributor of Traffic Safety Products

                       

         

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

    12,250     12,083     12,083  

         

Preferred Member Units (4,000 shares)

          6,000     6,000  

                      18,083     18,083  

                               

Mid-Columbia Lumber Products, LLC

  December 18, 2006  

Manufacturer of Finger-Jointed Lumber Products

                       

         

10% Secured Debt (Maturity—January 15, 2020)

    1,750     1,744     1,750  

         

12% Secured Debt (Maturity—January 15, 2020)

    3,900     3,871     3,871  

         

Member Units (7,874 units)

          3,001     2,171  

         

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

    768     768     768  

         

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

          790     1,470  

                      10,174     10,030  

                               

MSC Adviser I, LLC(16)

  November 22, 2013  

Third Party Investment Advisory Services

                       

         

Member Units (Fully diluted 100.0%)(8)

              62,667  

                               

Mystic Logistics Holdings, LLC

  August 18, 2014  

Logistics and Distribution Services Provider for Large Volume Mailers

                       

         

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

    7,536     7,485     7,485  

         

Common Stock (5,873 shares)

          2,720     4,120  

                      10,205     11,605  

                               

NAPCO Precast, LLC

  January 31, 2008  

Precast Concrete Manufacturing

                       

         

LIBOR Plus 8.50%, Current Coupon 10.80%, Secured Debt (Maturity—May 31, 2019)

    11,475     11,451     11,475  

         

Member Units (2,955 units)(8)

          2,975     12,730  

                      14,426     24,205  

                               

NexRev LLC

  February 28, 2018  

Provider of Energy Efficiency Products & Services

                       

         

11% Secured Debt (Maturity—February 28, 2023)

    17,440     17,274     17,274  

         

Preferred Member Units (86,400,000 units)(8)

          6,880     6,880  

                      24,154     24,154  

                               

NRI Clinical Research, LLC

  September 8, 2011  

Clinical Research Service Provider

                       

         

14% Secured Debt (Maturity—June 8, 2022)

    6,900     6,741     6,770  

         

Warrants (251,723 equivalent units; Expiration—June 8, 2027; Strike price—$0.01 per unit)

          252     500  

         

Member Units (1,454,167 units)

          765     2,500  

                      7,758     9,770  

                               

9


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

NRP Jones, LLC

  December 22, 2011  

Manufacturer of Hoses, Fittings and Assemblies

                       

         

12% Secured Debt (Maturity—March 20, 2023)

    6,376     6,376     6,376  

         

Member Units (65,962 units)(8)

          3,717     4,750  

                      10,093     11,126  

                               

NuStep, LLC

  January 31, 2017  

Designer, Manufacturer and Distributor of Fitness Equipment

                       

         

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

    20,600     20,438     20,438  

         

Preferred Member Units (406 units)

          10,200     10,200  

                      30,638     30,638  

                               

OMi Holdings, Inc.

  April 1, 2008  

Manufacturer of Overhead Cranes

                       

         

Common Stock (1,500 shares)(8)

          1,080     14,810  

                               

Pegasus Research Group, LLC

  January 6, 2011  

Provider of Telemarketing and Data Services

                       

         

Member Units (460 units)(8)

          1,290     9,590  

                               

PPL RVs, Inc.

  June 10, 2010  

Recreational Vehicle Dealer

                       

         

LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 9.31%, Secured Debt (Maturity—November 15, 2021)(9)

    15,600     15,489     15,600  

         

Common Stock (1,962 shares)(8)

          2,150     11,030  

                      17,639     26,630  

                               

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

  February 1, 2011  

Noise Abatement Service Provider

                       

         

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

    7,477     7,371     7,477  

         

Preferred Member Units (19,631 units)(8)

          4,600     13,090  

         

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

          1,200     780  

                      13,171     21,347  

                               

Quality Lease Service, LLC

  June 8, 2015  

Provider of Rigsite Accommodation Unit Rentals and Related Services

                       

         

Zero Coupon Secured Debt (Maturity—June 8, 2021)

    7,341     7,341     6,450  

         

Member Units (1,000 units)

          3,643     5,713  

                      10,984     12,163  

                               

River Aggregates, LLC

  March 30, 2011  

Processor of Construction Aggregates

                       

         

Zero Coupon Secured Debt (Maturity—June 30, 2018)(17)

    750     750     750  

         

Member Units (1,150 units)

          1,150     4,610  

         

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

          369     2,670  

                      2,269     8,030  

                               

10


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

The MPI Group, LLC

  October 2, 2007  

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

                       

         

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

    2,924     2,924     1,110  

         

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     2,480  

                      8,820     3,590  

                               

Vision Interests, Inc.

  June 5, 2007  

Manufacturer / Installer of Commercial Signage

                       

         

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

    2,814     2,806     2,806  

         

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

          3,000     3,360  

         

Common Stock (1,126,242 shares)

          3,706     129  

                      9,512     6,295  

                               

Ziegler's NYPD, LLC

  October 1, 2008  

Casual Restaurant Group

                       

         

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

    1,000     997     997  

         

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

    425     425     425  

         

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      

         

Preferred Member Units (10,072 units)

          2,834     2,359  

                      7,606     6,531  

Subtotal Control Investments (63.1% of net assets at fair value)

  $ 694,340   $ 913,963  

11


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Affiliate Investments(6)

     

 

 

 

                   

                               

AFG Capital Group, LLC

  November 7, 2014  

Provider of Rent-to-Own Financing Solutions and Services

                       

         

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

        $ 259   $ 900  

         

Preferred Member Units (186 units)(8)

          1,200     3,760  

                      1,459     4,660  

                               

Barfly Ventures, LLC(10)

  August 31, 2015  

Casual Restaurant Group

                       

         

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

    9,450     9,301     9,440  

         

Options (2 equivalent units)

          397     800  

         

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

          473     450  

                      10,171     10,690  

                               

BBB Tank Services, LLC

  April 8, 2016  

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

                       

         

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity—April 8, 2021)(9)

    650     632     632  

         

17% Secured Debt (Maturity—April 8, 2021)

    4,000     3,890     3,890  

         

Member Units (800,000 units)

          800     470  

                      5,322     4,992  

                               

Boccella Precast Products LLC

  June 30, 2017  

Manufacturer of Precast Hollow Core Concrete

                       

         

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.31%, Secured Debt (Maturity—June 30, 2022)(9)

    16,742     16,594     16,742  

         

Member Units (2,160,000 units)(8)

          2,160     5,220  

                      18,754     21,962  

                               

Boss Industries, LLC

  July 1, 2014  

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

                       

         

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

          2,160     5,270  

                               

Bridge Capital Solutions Corporation

  April 18, 2012  

Financial Services and Cash Flow Solutions Provider

                       

         

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

    7,500     6,044     6,044  

         

Warrants (82 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)

          2,132     4,020  

         

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

    1,000     993     1,000  

         

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

          1,000     1,000  

                      10,169     12,064  

                               

12


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Buca C, LLC

  June 30, 2015  

Casual Restaurant Group

                       

         

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity—June 30, 2020)(9)

    19,704     19,616     19,616  

         

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

          4,299     4,299  

                      23,915     23,915  

                               

CAI Software LLC

  October 10, 2014  

Provider of Specialized Enterprise Resource Planning Software

                       

         

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

    3,843     3,827     3,843  

         

Member Units (65,356 units)(8)

          654     2,850  

                      4,481     6,693  

                               

Chandler Signs Holdings, LLC(10)

  January 4, 2016  

Sign Manufacturer

                       

         

12% Current / 1% PIK Secured Deb (Maturity—July 4, 2021)(19)

    4,523     4,494     4,523  

         

Class A Units (1,500,000 units)

          1,500     2,180  

                      5,994     6,703  

                               

Charlotte Russe, Inc(11)

  May 28, 2013  

Fast-Fashion Retailer to Young Women

                       

         

8.50% Secured Debt (Maturity—February 2, 2023)

    7,972     7,972     7,085  

         

Common Stock (19,041 shares)

          3,141     3,141  

                      11,113     10,226  

                               

Condit Exhibits, LLC

  July 1, 2008  

Tradeshow Exhibits / Custom Displays Provider

                       

         

Member Units (3,936 units)(8)

          100     1,950  

                               

Congruent Credit Opportunities Funds(12)(13)

  January 24, 2012  

Investment Partnership

                       

         

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

          5,210     741  

         

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

          21,883     22,874  

                      27,093     23,615  

                               

Dos Rios Partners(12)(13)

  April 25, 2013  

Investment Partnership

                       

         

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

          5,846     7,046  

         

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

          1,856     2,237  

                      7,702     9,283  

                               

East Teak Fine Hardwoods, Inc.

  April 13, 2006  

Distributor of Hardwood Products

                       

         

Common Stock (6,250 shares)(8)

          480     630  

                               

EIG Fund Investments(12)(13)

  November 6, 2015  

Investment Partnership

                       

         

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

          461     413  

                               

Freeport Financial Funds(12)(13)

  June 13, 2013  

Investment Partnership

                       

         

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

          5,974     5,742  

         

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

          8,558     8,506  

                      14,532     14,248  

                               

13


Table of Contents


MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)
  Investment Date(27)
  Business Description
  Type of Investment(2)(3)(26)
  Principal(4)
  Cost(4)
  Fair Value(18)
 
   

Gault Financial, LLC (RMB Capital, LLC)

  November 21, 2011  

Purchases and Manages Collection of Healthcare and other Business Receivables

                       

         

8% Secured Debt (Maturity—January 1, 2019)

    12,333     12,333     11,382  

         

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

          400      

                      12,733     11,382  

                               

Harris Preston Fund Investments(12)(13)

  August 9, 2017  

Investment Partnership

                       

         

LP Interests (HPEP 3, L.P.) (Fully diluted 8.2%)

          1,460     1,460  

                               

Hawk Ridge Systems, LLC(13)

  December 2, 2016  

Value-Added Reseller of Engineering Design and Manufacturing Solutions

                       

         

10.5% Secured Debt (Maturity—December 2, 2021)

    14,300     14,188     14,300  

         

Preferred Member Units (226 units)(8)

          2,850     6,220  

         

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

          150     330  

                      17,188     20,850  

                               

Houston Plating and Coatings, LLC

  January 8, 2003  

Provider of Plating and Industrial Coating Services

                       

         

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

    3,000     3,000     3,380  

         

Member Units (318,462 units)(8)

          2,236     7,070  

                      5,236     10,450  

                               

I-45 SLF LLC(12)(13)

  October 20, 2015  

Investment Partnership

                       

         

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

          16,200     16,687  

                               

L.F. Manufacturing Holdings, LLC(10)

  December 23, 2013  

Manufacturer of Fiberglass Products

                       

         

Member Units (2,179,001 units)

          2,019     2,000  

                               

Meisler Operating LLC

  June 7, 2017  

Provider of Short-term Trailer and Container Rental

                       

         

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity—June 7, 2022)(9)

    20,800     20,612     20,612  

         

Member Units (Milton Meisler Holdings LLC) (48,555 units)

          4,855     5,570  

                      25,467     26,182  

                               

OnAsset Intelligence, Inc.

  April 18, 2011  

Provider of Transportation Monitoring / Tracking Products and Services

                       

         

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

    5,406     5,406     5,406  

         

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

    50     50     50  

         

Preferred Stock (912 shares)

          1,981