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Main Street Capital invests $32.9M in Md. company
Listen to this articleMain Street Capital Corporation Tuesday announced it completed a new portfolio investment to facilitate the recapitalization of Maryland-based Colonial Electric Company LLC, a provider of electrical contracting services in the mid-Atlantic region in Harwood.
Main Street, along with its co-investor, partnered with the company’s existing owners and senior management team to facilitate the transaction, with Main Street funding $32.9 million in a combination of first-lien, senior secured term debt and a direct equity investment.
Houston-based Main Street and its co-investor are also providing Colonial with a revolving line of credit to support the company’s working capital needs.
Founded in 1970, Colonial is a third generation, family-owned electrical contracting services provider, focused on multi-family housing in Maryland, northern Virginia and Washington.
Main Street is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Its portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.
The company 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, through its wholly owned portfolio company MSC Adviser I, LLC (“MSC Adviser”), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.
