Main Street Announces Portfolio Company Exit Generates $10.8 million Realized Gain and 42.6% Internal Rate of Return from Exit of Investment in Thermal and Mechanical Equipment, LLC

Results in Investment in New Portfolio Company

HOUSTON, Jan. 7, 2014 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") announced today that on December 23, 2013 it fully exited its debt and equity investment in Thermal and Mechanical Equipment, LLC ("TMEC") through the acquisition of TMEC by LKCM Distribution Holdings, L.P. ("Distribution Holdings"), a leading value-added provider of process solutions to the energy, industrial, chemical and commercial markets based in Houston, Texas.  TMEC is a manufacturers' representative agent and distributor that specializes in the engineering, design, sales and distribution of heat transfer, filtration and process equipment to a variety of industries, including the chemical, compression, engineering and construction, pulp and paper, refining, and turbine industries. 

Main Street realized a gain of approximately $10.8 million on the sale of its equity ownership interests, and on a cumulative basis since Main Street's initial investment in TMEC in September 2009, Main Street realized a total internal rate of return of 42.6% and a 3.1 times money invested return on its debt and equity investment in TMEC.  Main Street made its initial investment in TMEC in September 2009, which consisted of $7.25 million in secured debt investments and $1.0 million direct equity investment.

In conjunction with the acquisition of TMEC by Distribution Holdings, Main Street made a $16.5 million secured, second lien debt investment in Distribution Holdings to supplement the senior debt and equity financings completed to fund the acquisition of TMEC. 

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.  Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio.  Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million.  Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Main Street's common stock trades on the New York Stock Exchange ("NYSE") under the symbol "MAIN".  In addition, Main Street has outstanding 6.125% Notes due 2023, which trade on the NYSE under the symbol "MSCA".

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CFO and Senior Managing Director
dhyzak@mainstcapital.com
713-350-6000

Dennard - Lascar Associates, LLC
Ken Dennard  |  ken@dennardlascar.com
Ben Burnhamben@dennardlascar.com
773-599-3745 

SOURCE Main Street Capital Corporation



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http://www.mainstcapital.com

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