Tuesday, Main Street Capital Corp. (MAIN) announced that it has realized a $6.4 million gain, including structuring and advisory fees, related to the sale of substantially all of the assets of portfolio company TA Acquisition Group, LP to a subsidiary of Texas Industries, Inc. (TXI).
Main Street said the net sale proceeds received, which were related to its equity interests in TA, were approximately 19 times its original equity investment of $0.4 million. In addition, the net sale proceeds received approximated Main Street's recorded fair value for the TA investment as of March 31, 2008. Main Street also provided, on an exclusive basis, certain structuring and advisory services to TA in connection with the asset sale.
Main Street's original TA investment represented a $4.0 million first lien secured debt investment coupled with equity warrants and a $0.4 million direct equity investment, which represented a combined, fully diluted ownership interest of approximately 36%.
In connection with the sale of assets by TA, Main Street also received full repayment of its remaining first lien secured debt investment. Main Street recognized a total compounded annual rate of return over the term of its investment in TA equal to approximately 56%, including interest, dividends, fees and the gain realized on the sale of assets.
Main Street is currently trading at $11.25, down $0.13 or 1.14%.
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