Main Street Capital Corporation (NYSE: MAIN) has exited investments in two of its portfolio companies. – Drilling Info and Currie Acquisitions.
The company has completed the exit of its debt investment and a portion of its equity investments in Drilling Info, Inc, an information service provider and resource for the oil and gas industry, as part of an equity investment in Drilling Info by a group of leading private equity investment firms focused on the global software, Internet and data-services industries.
Main Street made its initial investment in Drilling Info, which consisted of an USD8.0 million second lien, secured debt investment with equity warrant participation, during November 2009 to support an acquisition and various other growth initiatives. Main Street subsequently acquired additional minority equity ownership interests in Drilling Info, which Main Street will continue to hold.
As part of the exit, Main Street realised a gain of approximately USD9.2 million on the sale of its equity warrant participation. On a cumulative basis, Main Street has realised a total internal rate of return of 58.3% and a 2.6 times money invested return including the full repayment of its debt investment and the redemption of its equity warrant participation in Drilling Info. Based upon the valuation utiliSed to complete the recent third-party equity investment and the related redemption of Main Street’s equity warrant participation, Main Street’s remaining minority equity ownership interest in Drilling Info has a fair value of approximately USD5.1 million, representing an unrealised gain of approximately USD3.8 million compared to the USD1.3 million cost basis of Main Street’s remaining investment.
Main Street also fully exited its debt and equity investments in Currie Acquisitions, LLC (Currie). Main Street completed the exit of its debt and equity investments in Currie as part of a buyout of Currie by Accell Group, a Netherlands-based international conglomerate. Main Street exited its debt investment for the full principal amount of approximately USD4.8 million and recognised a realised loss of approximately USD1.2 million on its equity investment. The combined proceeds received on Main Street’s debt and equity investments in Currie were approximately USD2.8 million in excess of Main Street’s recorded fair value for those investments in Currie as of 30 September, 2011.
