Main Street Announces Investments in New Portfolio Company and Exit of Investments in an Existing Portfolio Company

Company Overview - Main Street Capital Corporation has completed a new portfolio investment of $50.8 million in UBM ParentCo, LLC, facilitating UBM's merger with Mystic Logistics Holdings, LLC [1] - UBM specializes in "marketing mail" commingle services, optimizing postage, transportation, and delivery performance for large-scale mailers through a nationwide logistics network [2] - Mystic focuses on marketing mail consolidation and logistics solutions, supporting precise, date-driven in-home delivery performance [3] Investment Details - Main Street's investment in UBM includes a combination of first lien, senior secured term debt, and direct minority equity [1] - Main Street has fully exited its debt and equity investments in Mystic, becoming a lender and minority equity owner in UBM [1] Financial Performance - Main Street realized a gain of $23.8 million from the exit of its equity investment in Mystic, along with total dividends of $22.1 million over the investment's life [5] - The cumulative annual internal rate of return (IRR) for Main Street's equity investment in Mystic is 32.9%, with a total money invested (TMI) return of 17.9 times [5] - Including both debt and equity investments, Main Street achieved a cumulative IRR of 22.9% and a TMI return of 5.1 times [5] Historical Context - Main Street initially partnered with Mystic's management team for a majority recapitalization in August 2014, with an initial investment of $10 million in a first lien, senior secured term loan and $2.7 million in equity [4] - Following the initial investment, Mystic experienced significant growth, expanding its customer base and strengthening postal and commercial partnerships [4]