Main Street Capital Corp said May 10 that it closed the sale of Safety Holdings Inc, doing business as SambaSafety. Main Street said it realized a gain of about $28.4 million on the deal, which produced an IRR of 143.2 percent. The firm also made 14.6x its money with the sale. ABRY Partners’ buy of SambaSafety was announced in April.
HOUSTON, May 10, 2016 /PRNewswire/ — Main Street Capital Corporation (NYSE: MAIN) (“Main Street”) is pleased to announce that it recently completed the exit of its debt and equity investments in Safety Holdings, Inc., doing business as SambaSafety® (“SambaSafety”), upon the successful closing of SambaSafety’s previously announced definitive agreement with a private equity group to complete a majority recapitalization of SambaSafety.
Main Street realized a gain of approximately $28.4 million on the exit of its equity investments in SambaSafety, and on a cumulative basis since Main Street’s initial investment in SambaSafety in November of 2011, Main Street realized a total internal rate of return of 143.2% and a 14.6 times money invested return on its equity investments in SambaSafety. On a cumulative basis including both Main Street’s debt and equity investments in SambaSafety, Main Street realized a total internal rate of return of 34.7% and a 2.3 times money invested return.
Main Street’s original investment in SambaSafety in November 2011 included a $3.0 million debt investment and a $1.0 millionequity investment. After the original investment in November 2011, Main Street’s investments grew to total debt investments of$26.4 million and total equity investments of $2.1 million as Main Street provided additional funding to support SambaSafety’s significant growth opportunities. As part of the recent recapitalization, Main Street received a minority equity ownership position in the new entity formed to complete the majority recapitalization.
SambaSafety’s innovative Software as a Service (“SaaS”) solutions provide driver risk technology and information to employers, insurance, background screeners and fleet management companies. This enables companies with commercial and non-commercial fleets to easily identify and address unsafe driving behavior and take the appropriate actions necessary to maintain the safety of drivers, passengers and the communities in which they live and work. Additionally, SambaSafety solutions provide the insight insurance carriers need to accurately price risk throughout the insurance policy lifecycle.
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 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 portfolio. 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’s common stock trades on the New York Stock Exchange (“NYSE”) under the symbol “MAIN.” In addition, Main Street has outstanding 6.125% Notes due 2023, which trade on the NYSE under the symbol “MSCA.”