HOUSTON, Nov. 13, 2014 /PRNewswire/ -- Main Street Capital Corporation ( NYSE: MAIN) ("Main Street") announced today that it recently led a new portfolio investment totaling $10.0 million of invested capital in AFG Capital Group, LLC ("AFG"), with Main Street funding $8.0 million of the investment. The proceeds of the investment were used to complete a minority recapitalization, refinance existing debt and provide capital to fund AFG's near-term growth opportunities. Main Street's investment in AFG included $6.8 million of first-lien, senior secured term debt with equity warrant participation and a $1.2 million equity investment. In addition, Main Street and its co-investor are providing AFG a commitment for additional term loans to support its future growth opportunities.
Headquartered in Grandview, Texas, and founded in 2004, AFG offers rent-to-own financing solutions to various manufacturers, including barn, carport, storage shed and other manufacturers nationwide. AFG operates through several subsidiaries and under several trade names in addition to AFG, including AFG Rentals, Corland Leasing and Leland's Rentals. AFG is a leading provider of its rent-to-own financing solutions in Texas, and also provides its solutions in the South and the mid-Atlantic. Main Street's investment will enable AFG to continue to grow its existing operations and also execute on its near-term opportunities to expand its operations to additional manufacturers nationwide. Main Street completed its investment to support AFG's management team, which retained majority equity ownership of AFG.
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."
Main Street Capital Corporation
Dwayne L. Hyzak, CFO and Senior Managing Director
SOURCE Main Street Capital Corporation