Main Street Capital Announces Two New Investments and One Portfolio Company Exit

HOUSTON, Oct. 3 /PRNewswire-FirstCall/ -- Main Street Capital Corporation (Nasdaq: MAIN) ("Main Street") announced today that it has completed two new portfolio investments and fully exited its portfolio investment in Transportation General, Inc. ("TGI") realizing a 23% cumulative cash internal rate of return. Main Street's new portfolio investments were made in support of two separate management buyout transactions comprised of a $2.6 million debt and equity investment in Condit Exhibits, LLC ("Condit") and a $3.7 million debt and equity investment in Ziegler's NYPD, LLC ("NYPD"). Subsequent to these transactions, Main Street will have over $45 million of available cash liquidity, which is expected to provide sufficient funding for its new investment and operational activities for the foreseeable future.

Main Street's investment in Condit consists of a $2.3 million first lien, secured debt investment and a $0.3 million equity investment, representing approximately 28% of the fully diluted equity interests in Condit. Condit is a designer, manufacturer and manager of high-end tradeshow exhibits and permanent displays. Initially founded in 1945, Condit has become a premier provider of tradeshow exhibits, permanent displays, museum environments and high-end show rooms.

Main Street's investment in NYPD consists of a $3.3 million first lien, secured debt investment and a $0.4 million equity investment, representing approximately 29% of the fully diluted equity interests in NYPD. NYPD is a New York-themed pizzeria and Italian restaurant group operating in affluent suburban geographic areas. NYPD has built a strong position in the higher end of the casual dining segment and its management team has extensive experience in the restaurant and hospitality industries.

Main Street also recently completed the full exit of its portfolio investment in TGI as part of a leveraged recapitalization through a major international bank. As part of the TGI recapitalization transaction, Main Street received full repayment on its remaining debt investment and sold its equity warrant position to TGI for approximately $0.6 million in cash proceeds. In addition, Main Street received structuring and advisory fees of approximately $0.6 million related to assisting TGI with its recapitalization transaction. The gain realized on this exit exceeded the recorded fair value of the TGI portfolio investment as of June 30, 2008. Main Street realized a cash internal rate of return over the life of its investment in TGI equal to approximately 23%.

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. 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.

    Contacts:
    Main Street Capital Corporation
    Todd A. Reppert, President and CFO
    treppert@mainstcapital.com
    713-350-6000

    Dennard Rupp Gray and Easterly, LLC
    Ken Dennard
    ksdennard@drg-e.com / 713-529-6600
    Augustine Okwu
    gokwu@drg-e.com / 404-532-0086

SOURCE Main Street Capital Corporation

Released October 3, 2008