Main Street Capital Corporation completed a $50.8 million financing of UBM ParentCo, LLC, doing business as United Business Mail. The deal consists of first‑lien, senior‑secured term debt and minority equity, positioning Main Street as both a lender and a minority owner in UBM.
The transaction also marks the full exit of Main Street’s debt and equity holdings in Mystic Logistics Holdings, LLC. The company realized a $23.8 million gain on the equity exit and had previously received $22.1 million in dividends over the life of the investment. Combined with the $10 million debt and $2.7 million equity originally invested in Mystic, the total return on the Mystic investment is 32.9% IRR and a 17.9‑fold equity multiple, while the combined debt and equity return is 22.9% IRR.
The move expands Main Street’s lower‑middle‑market portfolio into the commingle services sector, diversifying its holdings beyond the marketing‑mail consolidation focus of Mystic. By monetizing a mature investment, the firm frees capital that can be redeployed to support supplemental dividends and net asset value growth, in line with its stated strategy of partnering with management teams and generating realized gains.
The announcement was met with a positive market reaction, driven by the realized gain and the strong historical returns on the Mystic investment. Investors viewed the transaction as evidence of Main Street’s effective portfolio management and its ability to generate significant capital gains through disciplined investment and exit strategies.
CEO Dwayne L. Hyzak expressed satisfaction with the company’s performance, highlighting an annualized return on equity of 17.0% and record net asset value per share. CFO Ryan Nelson noted favorable net interest income and diluted net interest income per share, underscoring the firm’s strong financial footing.
The transaction positions Main Street to continue supporting shareholder returns while demonstrating its capacity to identify, nurture, and exit investments profitably. The combination of a sizable realized gain, a robust dividend history, and a new financing opportunity signals confidence in future growth prospects and reinforces the firm’s commitment to delivering value to investors.
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