Main Street Announces Follow-On Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has completed a follow-on investment of $19.9 million in CAI Software, LLC. This investment is allocated to support CAI's acquisition of a complementary business in the supply chain and warehouse management systems sector. The investment comprises $19.5 million in first lien, senior secured term debt and $0.4 million in equity. CAI, founded in 1978, specializes in enterprise resource planning, manufacturing execution systems, and warehouse management software solutions. This acquisition aims to enhance CAI's customer base and service offerings.

Positive

• Completed a follow-on investment of $19.9 million to strengthen CAI Software's position.
• Investment supports CAI's acquisition of a complementary business, expanding its customer base and service offerings.

Negative

• None.

HOUSTON, June 16, 2020 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a follow-on investment in an existing portfolio company totaling $19.9 million. Main Street's follow-on investment in CAI Software, LLC ("CAI" or the "Company") supported the Company's acquisition of a complementary business in the supply chain and warehouse management systems industry, significantly expanding the Company's customer base and service offering. The follow-on investment consists of an additional $19.5 million of first lien, senior secured term debt and a $0.4 million equity investment.

Founded in 1978 and headquartered in Smithfield, Rhode Island, CAI is a leader in the delivery of mission-critical enterprise resource planning (ERP), manufacturing execution systems (MES) and warehouse management systems (WMS) software and services.  Main Street made its initial investment in CAI during the fourth quarter of 2014.  Prior to this most recent acquisition, the Company previously acquired MultiProcess Computer Corporation (June 2017), Integrated Management Solutions (January 2018) and Casco Development (December 2018).  These acquisitions have significantly expanded CAI's portfolio of products and services to its customers and added scale and balance to the Company's revenues.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (-1%26h%3D1859060701%26u%3Dhttp%253A%252F%252Fwww.mainstcapital.com%252F%26a%3Dwww.mainstcapital.com&a=www.mainstcapital.com" rel="nofollow">www.mainstcapital.com) is a principal investment firm that primarily 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.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Brent D. Smith, CFO, bsmith@mainstcapital.com 
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com 
713-529-6600

View original content:http://www.prnewswire.com/news-releases/main-street-announces-follow-on-investment-301077404.html

SOURCE Main Street Capital Corporation

FAQ

What was the amount of Main Street's follow-on investment in CAI Software on June 16, 2020?

Main Street's follow-on investment in CAI Software totaled $19.9 million.

How does Main Street's investment benefit CAI Software?

The investment supports CAI's acquisition of a complementary business, expanding its customer base and service offerings.

What components make up the $19.9 million investment in CAI Software?

The investment consists of $19.5 million in first lien, senior secured term debt and $0.4 million in equity.

When did Main Street first invest in CAI Software?

Main Street made its initial investment in CAI Software in the fourth quarter of 2014.