Main Street Announces Follow-On Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has announced a follow-on investment of $12.2 million in Iron-Main Investments, LLC to support its acquisition of a pre-employment background check company. This investment includes $11.2 million in senior secured term debt and $1.0 million in equity. Iron-Main has been operational since 1984 and significantly expands its market presence and customer base in the industrial and healthcare sectors. This marks Main Street's third follow-on investment since partnering with Iron Creek Partners in 2021.

Positive

• Main Street's investment enhances Iron-Main's service offerings and customer base.
• The acquisition benefits Main Street's portfolio diversification.

Negative

• None.

Invests $12.2 Million in Iron-Main Investments, LLC to Support Acquisition

HOUSTON, Feb. 14, 2023 /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. Main Street and its co-investor made the follow-on investment in Iron-Main Investments, LLC ("Iron-Main" or the "Company") in continued partnership with the Company's other equity investors to support the Company's acquisition of a company that specializes in pre-employment background checks and ancillary related services primarily in the industrial and healthcare industries. The complementary business significantly expands and diversifies the Company's customer base, market presence and service offerings. Main Street's follow-on investment consists of an additional $11.2 million of first lien, senior secured term debt and a $1.0 million equity investment.

With its companies operating since 1984, Iron-Main is a leader in pre-employment background checks and related services to employers in multiple industries throughout the U.S. This follow-on investment represents Main Street's third follow-on investment in the Company after initially partnering with Iron Creek Partners, LLC in 2021 to acquire Verified Credentials, Inc., a leading consumer reporting agency specializing in pre-employment background checks and ancillary related services, and previously completing two additional investments to support the Company's acquisitions of Credential Check Corporation and Midwest Backgrounds, Inc.

ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (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 investment strategy. 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, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO & COO, jmorris@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:https://www.prnewswire.com/news-releases/main-street-announces-follow-on-investment-301745498.html

SOURCE Main Street Capital Corporation

FAQ

What is the latest investment made by Main Street Capital?

Main Street Capital announced a follow-on investment of $12.2 million in Iron-Main Investments, LLC.

How much did Main Street invest in Iron-Main Investments?

Main Street invested a total of $12.2 million, which includes $11.2 million in senior secured term debt and $1.0 million in equity.

What industry does Iron-Main Investments operate in?

Iron-Main Investments specializes in pre-employment background checks and related services, primarily in the industrial and healthcare industries.

When did Main Street Capital announce its investment in Iron-Main?

The announcement was made on February 14, 2023.

What is the significance of this investment for Main Street Capital?

This investment diversifies Main Street's portfolio and expands its market presence through Iron-Main's acquisition.