HOUSTON, Oct. 30, 2007 (PRIME NEWSWIRE) -- Main Street Capital Corporation (Nasdaq:MAIN) ("Main Street") announced today that it realized a $2.3 million gain, including structuring fees, from the sale of its portfolio company All Hose & Specialty, LLC ("All Hose") to GHX Industrial, LLC, a portfolio company of Houston-based private equity firm The CapStreet Group. The gain realized on the All Hose equity investment exceeded Main Street's recorded fair value for such investment at June 30, 2007. All Hose is a leading distributor of industrial hose, high pressure hose and other specialty items utilized in the industrial and oilfield service industries.
The original All Hose investment represented a $2.6 million first lien secured debt investment coupled with nominally priced equity warrants, which were subsequently converted into outstanding equity interests of All Hose. In connection with the sale of All Hose, Main Street sold all of its remaining equity interests and received full repayment of its remaining debt investment. Main Street recognized a cash internal rate of return over the life of its All Hose investment of approximately 71%.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstreethouston.com) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies. Main Street's investments are generally made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives to its portfolio companies.
The Main Street Capital Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4309
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and Main Street undertakes no obligation to update any such statement now or in the future.