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TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


(Mark One)
ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, ~~2016~~2017
OR
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: to

Commission File Number: 001-33723

Main Street Capital Corporation
(Exact name of registrant as specified in its charter)


Maryland (State or other jurisdiction of incorporation or organization)		41-2230745 (I.R.S. Employer Identification No.)
1300 Post Oak Boulevard, 8^th floor Houston, TX (Address of principal executive offices)		77056 (Zip Code)

(713) 350-6000

(Registrant's telephone number including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated ~~filer"~~filer," "smaller reporting company" and ~~"smaller reporting~~"emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filerý		Accelerated filero		Non-accelerated filero (do not check if smaller reporting company)		Smaller reporting companyo Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

The number of shares outstanding of the issuer's common stock as of May ~~5, 2016~~4, 2017 was ~~51,221,175.~~55,922,561.

Table of Contents

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION


Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets—March 31, ~~2016~~2017 (unaudited) and December 31, ~~2015~~2016	1
	Consolidated Statements of Operations (unaudited)—Three months ended March 31, ~~2016~~2017 and ~~2015~~2016	2
	Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, ~~2016~~2017 and ~~2015~~2016	3
	Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, ~~2016~~2017 and ~~2015~~2016	4
	Consolidated Schedule of Investments (unaudited)—March 31, ~~2016~~2017	5
	Consolidated Schedule of Investments—December 31, ~~2015~~2016	3534
	Notes to Consolidated Financial Statements (unaudited)	6463
	Consolidated Financial Statement Schedule	110
	Consolidated Schedule of Investments in and Advances to Affiliates ~~for the~~ (unaudited)—Three ~~Months Ended~~months ended March 31, ~~2016~~2017	~~107~~110
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	~~111~~115
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	~~131~~135
Item 4.	Controls and Procedures	~~132~~136

PART II
OTHER INFORMATION


Item 1.	Legal Proceedings	~~133~~ 137
Item 1A.	Risk Factors	~~133~~137
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~133~~137
Item 6.	Exhibits	~~133~~137
	Signatures	~~134~~138

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(dollars in thousands, except shares and per share amounts)

	March 31, 2016			December 31, 2015			March 31, 2017			December 31, 2016

	(Unaudited)						(Unaudited)
ASSETS
Portfolio investments at fair value:
Control investments (cost: $361,823 and $387,727 as of March 31,2016 and December 31, 2015, respectively)	$	520,099		$	555,011
Affiliate investments (cost: $376,375 and $333,728 as of March 31, 2016 and December 31, 2015, respectively)		389,310			350,519
Non-Control/Non-Affiliate investments (cost: $974,053 and $945,187 as of March 31, 2016 and December 31, 2015, respectively)		908,662			894,466
Control investments (cost: $491,749 and $439,674 as of March 31, 2017 and December 31, 2016, respectively)							$	658,239		$	594,282
Affiliate investments (cost: $373,895 and $394,699 as of March 31, 2017 and December 31, 2016, respectively)								329,024			375,948
Non-Control/Non-Affiliate investments (cost: $1,010,832 and $1,037,510 as of March 31, 2017 and December 31, 2016, respectively)								992,115			1,026,676

Total portfolio investments (cost: $1,712,251 and $1,666,642 as of March 31, 2016 and December 31, 2015, respectively)		1,818,071			1,799,996
Marketable securities and idle funds investments (cost: $1,778 and $5,407 as of March 31, 2016 and December 31, 2015, respectively)		1,519			3,693

Total investments (cost: $1,714,029 and $1,672,049 as of March 31, 2016 and December 31, 2015, respectively)		1,819,590			1,803,689
Total investments (cost: $1,876,476 and $1,871,883 as of March 31, 2017 and December 31, 2016, respectively)								1,979,378			1,996,906
Cash and cash equivalents		17,223			20,331			33,605			24,480
Interest receivable and other assets		31,786			27,737			37,560			35,133
Receivable for securities sold		11,458			9,901			8,604			1,990
Deferred financing costs (net of accumulated amortization of $9,608 and $8,965 as of March 31, 2016 and December 31, 2015, respectively)		12,651			13,267
Deferred financing costs (net of accumulated amortization of $12,205 and $11,547 as of March 31, 2017 and December 31, 2016, respectively)								12,603			12,645
Deferred tax asset, net		8,442			4,003			4,739			9,125

Total assets	$	1,901,150		$	1,878,928		$	2,076,489		$	2,080,279



LIABILITIES
Credit facility	$	306,000		$	291,000		$	288,000		$	343,000
SBIC debentures (par: $225,000 as of March 31, 2016 and December,31, 2015, par of $75,200 is recorded at a fair value of $74,006 and $73,860 as of March 31, 2016 and December 31, 2015, respectively)		223,806			223,660
SBIC debentures (par: $240,200 and $240,000 as of March 31, 2017 and December 31, 2016, respectively. Par of $50,000 and $75,200 is recorded at a fair value of $49,155 and $74,803 as of March 31, 2017 and December 31, 2016, respectively)								239,355			239,603
4.50% Notes		175,000			175,000			175,000			175,000
6.125% Notes		90,655			90,738			90,655			90,655
Dividend payable		9,113			9,074
Interest payable		5,185			3,959
Accounts payable and other liabilities		5,847			12,292			11,758			14,205
Payable for securities purchased		8,546			2,311			14,064			2,184
Interest payable								3,471			4,103
Dividend payable								10,252			10,048

Total liabilities		824,152			808,034			832,555			878,798
Commitments and contingencies (Note M)
NET ASSETS
Common stock, $0.01 par value per share (150,000,000 shares authorized; 50,767,218 and 50,413,744 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively)		508			504
Common stock, $0.01 par value per share (150,000,000 shares authorized; 55,423,375 and 54,312,444 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively)								554			543
Additional paid-in capital		1,026,233			1,011,467			1,185,478			1,143,883
Accumulated net investment income, net of cumulative dividends of $444,631 and $417,347 as of March 31, 2016 and December 31, 2015, respectively		7,061			7,181
Accumulated net realized gain from investments (accumulated net realized gain from investments of $32,608 before cumulative dividends of $68,658 as of March 31, 2016 and accumulated net realized gain from investments of $19,005 before cumulative dividends of $68,658 as of December 31, 2015)		(36,050	)		(49,653	)
Accumulated net investment income, net of cumulative dividends of $532,336 and $521,297 as of March 31, 2017 and December 31, 2016, respectively								33,943			19,033
Accumulated net realized gain from investments (accumulated net realized gain from investments of $75,959 before cumulative dividends of $126,845 as of March 31, 2017 and accumulated net realized gain from investments of $48,394 before cumulative dividends of $107,281 as of December 31, 2016)								(50,886	)		(58,887	)
Net unrealized appreciation, net of income taxes		79,246			101,395			74,845			96,909

Total net assets		1,076,998			1,070,894			1,243,934			1,201,481

Total liabilities and net assets	$	1,901,150		$	1,878,928		$	2,076,489		$	2,080,279



NET ASSET VALUE PER SHARE	$	21.18		$	21.24		$	22.44		$	22.10

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(dollars in thousands, except shares and per share amounts)

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,

	2016			2015			2017			2016
INVESTMENT INCOME:
Interest, fee and dividend income:
Control investments	$	12,615		$	11,335		$	12,988		$	12,615
Affiliate investments		8,523			6,049			9,899			8,523
Non-Control/Non-Affiliate investments		20,737			19,421			25,002			20,737

Interest, fee and dividend income		41,875			36,805			47,889			41,875
Interest, fee and dividend income from marketable securities and idle funds investments		131			374			—			131

Total investment income		42,006			37,179			47,889			42,006
EXPENSES:
Interest		(8,182	)		(7,796	)		(8,608	)		(8,182	)
Compensation		(3,820	)		(3,494	)		(4,430	)		(3,820	)
General and administrative		(2,405	)		(1,962	)		(2,940	)		(2,405	)
Share-based compensation		(1,589	)		(1,263	)		(2,269	)		(1,589	)
Expenses allocated to the External Investment Manager		1,154			827			1,524			1,154

Total expenses		(14,842	)		(13,688	)		(16,723	)		(14,842	)

NET INVESTMENT INCOME		27,164			23,491			31,166			27,164
NET REALIZED GAIN (LOSS):
Control investments		14,358			—			(682	)		14,358
Affiliate investments								22,930			—
Non-Control/Non-Affiliate investments		818			(2,008	)		5,317			818
Marketable securities and idle funds investments		(1,573	)		(112	)		—			(1,573	)
SBIC debentures								(5,217	)		—

Total net realized gain (loss)		13,603			(2,120	)
Total net realized gain								22,348			13,603

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):
Portfolio investments		(27,529	)		14,204			(22,091	)		(27,529	)
Marketable securities and idle funds investments		1,457			251			—			1,457
SBIC debentures		(146	)		(693	)		5,665			(146	)

Total net change in unrealized appreciation (depreciation)		(26,218	)		13,762
Total net change in unrealized depreciation								(16,426	)		(26,218	)

INCOME TAXES:
Federal and state income, excise and other taxes		(370	)		(376	)		(1,252	)		(370	)
Deferred taxes		2,633			667			(4,386	)		2,633

Income tax benefit (provision)		2,263			291			(5,638	)		2,263

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	16,812		$	35,424		$	31,450		$	16,812



NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED	$	0.54		$	0.51		$	0.57		$	0.54



NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED	$	0.33		$	0.77		$	0.57		$	0.33



DIVIDENDS PAID PER SHARE:
Regular monthly dividends	$	0.540		$	0.510		$	0.555		$	0.540
Supplemental dividends		—			—			—			—

Total dividends	$	0.540		$	0.510		$	0.555		$	0.540



WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED		50,549,780			46,080,204			55,125,170			50,549,780

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

	Common Stock											Accumulated Net Realized Gain From Investments, Net of Dividends			Net Unrealized Appreciation from Investments, Net of Income Taxes						Common Stock												Accumulated Net Realized Gain From Investments, Net of Dividends			Net Unrealized Appreciation from Investments, Net of Income Taxes

	Common Stock								Accumulated Net Investment Income, Net of Dividends												Common Stock									Accumulated Net Investment Income, Net of Dividends
	Number of Shares			Par Value		Additional Paid-In Capital			Accumulated Net Investment Income, Net of Dividends									Net Unrealized Appreciation from Investments, Net of Income Taxes			Number of Shares			Par Value			Additional Paid-In Capital			Accumulated Net Investment Income, Net of Dividends									Net Unrealized Appreciation from Investments, Net of Income Taxes
Balances at December 31, 2014		45,079,150		$	451	$	853,606		$	23,665		$	(20,456	)	$	82,716
Balances at December 31, 2015																					50,413,744		$	504		$	1,011,467		$	7,181		$	(49,653	)	$	101,395
Public offering of common stock, net of offering costs																						321,714			3			9,778			—			—			—				9,781
Share-based compensation																						—			—			1,589			—			—			—			1,589
Dividend reinvestment																						113,631			1			3,255			—			—			—			3,256
Amortization of directors' deferred compensation																						—			—			144			—			—			—			144
Issuance of restricted stock, net of forfeited shares																						(3,089	)		—			—			—			—			—			—
Dividends to stockholders																						—			—			—			(27,284	)		—			—			(27,284	)
Cumulative-effect to retained earnings for excess tax benefit																						—			—			—			—			—			1,806			1,806
Net increase (decrease) resulting from operations																						—			—			—			27,164			13,603			(23,955	)		16,812

Balances at March 31, 2016																						50,846,000		$	508		$	1,026,233		$	7,061		$	(36,050	)	$	79,246		$	1,076,998



Balances at December 31, 2016																						54,354,857		$	543		$	1,143,883		$	19,033		$	(58,887	)	$	96,909		$	1,201,481
Public offering of common stock, net of offering costs		4,370,000			44		127,720			—			—			—				127,764			1,035,286			11			37,700			—			—			—			37,711
Share-based compensation		—			—		1,263			—			—			—			1,263			—			—			2,269			—			—			—			2,269
Purchase of vested stock for employee payroll tax withholding		(1,802	)		—		(53	)		—			—			—			(53	)		(8,964	)		—			(343	)		—			—			—			(343	)
Dividend reinvestment		116,330			1		3,464			—			—			—			3,465			48,675			—			1,806			—			—			—			1,806
Amortization of directors' deferred compensation		—			—		69			—			—			—			69			—			—			163			—			—			—			163
Issuance of restricted stock, net of forfeited shares		683			—		—			—			—			—			—
Forfeited shares of terminated employees																						(6,479	)		—			—			—			—			—			—
Dividends to stockholders		—			—		—			(24,021	)		—			—			(24,021	)		—			—			—			(11,039	)		(19,564	)		—			(30,603	)
Net increase (loss) resulting from operations		—			—		—			23,491			(2,120	)		14,053			35,424
Net increase (decrease) resulting from operations																						—			—			—			25,949			27,565			(22,064	)		31,450

Balances at March 31, 2015		49,564,361		$	496	$	986,069		$	23,135		$	(22,576	)	$	96,769		$	1,083,893
Balances at March 31, 2017																						55,423,375		$	554		$	1,185,478		$	33,943		$	(50,886	)	$	74,845		$	1,243,934



Balances at December 31, 2015		50,413,744		$	504	$	1,011,467		$	7,181		$	(49,653	)	$	101,395		$	1,070,894
Cumulative-effect to retained earnings for excess tax benefit		—			—		—			—			—			1,806			1,806
Public offering of common stock, net of offering costs		321,714			3		9,778			—			—			—			9,781
Share-based compensation		—			—		1,589			—			—			—			1,589
Dividend reinvestment		113,631			1		3,255			—			—			—			3,256
Amortization of directors' deferred compensation		—			—		144			—			—			—			144
Issuance of restricted stock		900			—		—			—			—			—			—
Forfeited shares of terminated employees		(3,989	)		—		—			—			—			—			—
Dividends to stockholders		—			—		—			(27,284	)		—			—			(27,284	)
Net increase (loss) resulting from operations		—			—		—			27,164			13,603			(23,955	)		16,812

Balances at March 31, 2016		50,846,000		$	508	$	1,026,233		$	7,061		$	(36,050	)	$	79,246		$	1,076,998

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,

	2016			2015			2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	16,812		$	35,424		$	31,450		$	16,812
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Investments in portfolio companies		(113,945	)		(256,046	)		(186,922	)		(113,945	)
Proceeds from sales and repayments of debt investments in portfolio companies		69,028			143,122			184,487			69,028
Proceeds from sales and return of capital of equity investments in portfolio companies		21,891			5,952			37,041			21,891
Investments in marketable securities and idle funds investments		—			(2,047	)
Proceeds from sales and repayments of marketable securities and idle funds investments		559			1,304			—			559
Net change in net unrealized appreciation (depreciation)		26,218			(13,762	)
Net realized (gain) loss		(13,603	)		2,120
Net change in net unrealized depreciation								16,426			26,218
Net realized gain								(22,348	)		(13,603	)
Accretion of unearned income		(1,921	)		(2,018	)		(4,703	)		(1,921	)
Payment-in-kind interest		(1,303	)		(806	)		(1,607	)		(1,303	)
Cumulative dividends		(321	)		(376	)		(877	)		(321	)
Share-based compensation expense		1,589			1,263			2,269			1,589
Amortization of deferred financing costs		644			629			658			644
Deferred tax (benefit) provision		(2,633	)		(291	)		4,386			(2,633	)
Changes in other assets and liabilities:
Interest receivable and other assets		(2,390	)		(746	)		(2,175	)		(2,390	)
Interest payable		1,226			761			(632	)		1,226
Accounts payable and other liabilities		(6,269	)		(7,729	)		(2,284	)		(6,269	)
Deferred fees and other		632			627			597			632

Net cash used in operating activities		(3,786	)		(92,619	)
Net cash provided by (used in) operating activities								55,766			(3,786	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of common stock, net of offering costs		9,781			127,764			37,711			9,781
Dividends paid		(23,990	)		(19,545	)		(28,593	)		(23,990	)
Proceeds from issuance of SBIC debentures								25,400			—
Repayments of SBIC debentures								(25,200	)		—
Proceeds from credit facility		70,000			156,000			83,000			70,000
Repayments on credit facility		(55,000	)		(210,000	)		(138,000	)		(55,000	)
Payment of deferred loan costs and SBIC debenture fees								(616	)		—
Purchases of vested stock for employee payroll tax withholding								(343	)		—
Other		(113	)		(17	)		—			(113	)

Net cash provided by financing activities		678			54,202
Net cash provided by (used in) financing activities								(46,641	)		678

Net decrease in cash and cash equivalents		(3,108	)		(38,417	)
Net increase (decrease) in cash and cash equivalents								9,125			(3,108	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		20,331			60,432			24,480			20,331

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	17,223		$	22,015		$	33,605		$	17,223



Supplemental cash flow disclosures:
Interest paid	$	6,282		$	6,406		$	8,552		$	6,282
Taxes paid	$	1,172		$	1,934		$	1,677		$	1,172
Non-cash financing activities:
Shares issued pursuant to the DRIP	$	3,256		$	3,465		$	1,806		$	3,256

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments

March 31, ~~2016~~

2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value		Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Control Investments(5)

Access Media Holdings, LLC(10)	Private Cable Operator								Private Cable Operator
		5.00% Current / 5.00% PIK Secured Debt (Maturity—July 22, 2020)	$	21,825	$	21,825	$	20,651		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,946	$	22,946	$	19,470
		Preferred Member Units (5,265,000 units; 12% cumulative)				5,159		2,130		Preferred Member Units (6,750,000 units; 12% cumulative)				6,644		220
		Member Units (45 units)				1		—		Member Units (45 units)				1		—

						26,985		22,781						29,591		19,690

AmeriTech College, LLC	For-Profit Nursing and Healthcare College
Ameritech College Operations, LLC									For-Profit Nursing and Healthcare College
		10% Secured Debt (Maturity—May 15, 2016)		514		514		514		10% Secured Debt (Maturity—November 30, 2019)		514		514		514
		10% Secured Debt (Maturity—November 30, 2019)		489		489		489		13% Secured Debt (Maturity—November 30, 2019)		489		489		489
		10% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025
		Preferred Member Units (294 units; 5%)(8)				2,291		2,291		Preferred Member Units (2,936 units)				6,191		2,810

						6,319		6,319						10,219		6,838

ASC Interests, LLC	Recreational and Educational Shooting Facility								Recreational and Educational Shooting Facility
		11% Secured Debt (Maturity—July 31, 2018)		2,250		2,225		2,250		11% Secured Debt (Maturity—July 31, 2018)		2,050		2,036		2,050
		Member Units (1,500 units)(8)				1,500		2,560		Member Units (1,500 units)(8)				1,500		2,740

						3,725		4,810						3,536		4,790

Bond-Coat, Inc.	Casing and Tubing Coating Services								Casing and Tubing Coating Services
		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,530		11,596		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,566		11,596
		Common Stock (57,508 shares)				6,350		7,490		Common Stock (57,508 shares)				6,350		7,600

						17,880		19,086						17,916		19,196

Café Brazil, LLC	Casual Restaurant Group								Casual Restaurant Group
		Member Units (1,233 units)(8)				1,742		6,570		Member Units (1,233 units)(8)				1,742		5,900

CBT Nuggets, LLC	Produces and Sells IT Training Certification Videos								Produces and Sells IT Training Certification Videos
		Member Units (416 units)(8)				1,300		45,750		Member Units (416 units)(8)				1,300		60,620

CMS Minerals LLC	Oil & Gas Exploration & Production
Charps, LLC									Pipeline Maintenance and Construction
		Preferred Member Units (458 units)(8)				2,530		5,750		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—February 3, 2022)(9)		800		781		781
										12% Secured Debt (Maturity—February 3, 2022)		18,400		18,220		18,220
										Preferred Member Units (1,600 units)				400		400

														19,401		19,401

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)				Business Description	Type of Investment(2)(3)


Clad-Rex Steel, LLC						Specialty Manufacturer of Vinyl-Clad Metal
							LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2018)(9)	400	397	397
							LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2021)(9)	14,080	13,946	13,946
							Member Units (717 units)		7,280	7,280
							10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)	1,198	1,186	1,186
							Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)		210	210

									23,019	23,019

CMS Minerals Investments						Oil & Gas Exploration & Production
							Preferred Member Units (CMS Minerals LLC) (458 units)(8)		2,009	3,271
							Member Units (CMS Minerals II, LLC) (100 units)(8)		3,716	3,120

									5,725	6,391

Datacom, LLC	Technology and Telecommunications Provider					Technology and Telecommunications Provider
		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 31, 2019)	11,256	11,178	10,810		8% Secured Debt (Maturity—May 30, 2017)	1,080	1,080	1,080
							5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)	11,867	11,811	11,490
							Class A Preferred Member Units (15% cumulative)		1,181	1,419
							Class B Preferred Member Units (6,453 units)		6,030	1,861

									20,102	15,850

Gamber-Johnson Holdings, LLC						Manufacturer of Ruggedized Computer Mounting Systems
		Class A Preferred Member Units (15% cumulative)(8)		1,181	1,224		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)	24,080	23,856	24,080
		Class B Preferred Member Units (6,453 units)		6,030	4,602		Member Units (8,619 units)(8)		14,844	22,080

				18,389	16,636				38,700	46,160

Garreco, LLC	Manufacturer and Supplier of Dental Products					Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)	5,800	5,745	5,745		LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 13.15%, Secured Debt (Maturity—March 31, 2020)(9)	6,025	5,969	5,969
		Member Units (1,200 units)		1,200	1,090		Member Units (1,200 units)		1,200	1,470

				6,945	6,835				7,169	7,439

GRT Rubber Technologies LLC	Manufacturer of Engineered Rubber Products
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)	13,903	13,793	13,903
		Member Units (5,879 units)		13,065	18,030

				26,858	31,933

Gulf Manufacturing, LLC	Manufacturer of Specialty Fabricated Industrial Piping Products
		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)	777	777	777
		Member Units (438 units)(8)		2,980	10,960

				3,757	11,737

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		Common Stock (107,456 shares)		718	2,700

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
		Member Units (500 units)(8)		589	280
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)		1,215	2,220

				1,804	2,500

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)				Business Description	Type of Investment(2)(3)


GRT Rubber Technologies LLC						Manufacturer of Engineered Rubber Products
							LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)	13,065	12,986	13,065
							Member Units (5,879 units)(8)		13,065	20,310

									26,051	33,375

Gulf Manufacturing, LLC						Manufacturer of Specialty Fabricated Industrial Piping Products
							9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)	777	777	777
							Member Units (438 units)(8)		2,980	9,190

									3,757	9,967

Gulf Publishing Holdings, LLC						Energy Industry Focused Media and Publishing
							12.5% Secured Debt (Maturity—April 29, 2021)	10,000	9,915	9,915
							Member Units (3,124 units)		3,124	3,460

									13,039	13,375

Harborside Holdings, LLC						Real Estate Holding Company
							Member units (100 units)		6,056	9,400

Harrison Hydra-Gen, Ltd.						Manufacturer of Hydraulic Generators
							Common Stock (107,456 shares)(8)		718	2,800

Hawthorne Customs and Dispatch Services, LLC						Facilitator of Import Logistics, Brokerage, and Warehousing
							Member Units (500 units)		589	280
							Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)		1,215	2,040

									1,804	2,320

HW Temps LLC	Temporary Staffing Solutions					Temporary Staffing Solutions
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity July 2, 2020)(9)	9,976	9,888	9,888		LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity July 2, 2020)(9)	9,976	9,904	9,904
		Preferred Member Units (3,200 units)(8)		3,942	4,950		Preferred Member Units (3,200 units)(8)		3,942	3,940

				13,830	14,838				13,846	13,844

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems					Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)		7,095	15,410		Common Stock (7,095 shares)(8)		7,095	15,640

IDX Broker, LLC	Provider of Marketing and CRM Tools for the Real Estate Industry
		12.5% Secured Debt (Maturity—November 15, 2018)	11,350	11,286	11,350
		Member Units (5,400 units)		5,606	6,440

				16,892	17,790

Indianapolis Aviation Partners, LLC	Fixed Base Operator
		15% Secured Debt (Maturity—July 15, 2016)	3,100	3,100	3,100
		Warrants (1,046 equivalent units)		1,129	2,540

				4,229	5,640

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2016)(9)	4,405	4,386	4,405
		Member Units (627 units)(8)		811	5,200

				5,197	9,605

Lamb's Venture, LLC	Aftermarket Automotive Services Chain
		11% Secured Debt (Maturity—May 31, 2018)	7,849	7,849	7,849
		Preferred Equity (non-voting)		328	328
		Member Units (742 units)		5,273	5,160
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—October 1, 2025)	906	906	906
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	1,240

				14,981	15,483

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)				Business Description	Type of Investment(2)(3)


Lighting Unlimited, LLC	Commercial and Residential Lighting Products and Design Services
IDX Broker, LLC						Provider of Marketing and CRM Tools for the Real Estate Industry
							12.5% Secured Debt (Maturity—November 15, 2018)	10,650	10,610	10,650
							Member Units (5,400 units)(8)		5,606	8,200

									16,216	18,850

Indianapolis Aviation Partners, LLC						Fixed Base Operator
							15% Secured Debt (Maturity—April 15, 2017)	3,100	3,100	3,100
							Warrants (1,046 equivalent units)		1,129	2,710

									4,229	5,810

Jensen Jewelers of Idaho, LLC						Retail Jewelry Store
							Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.50%, Secured Debt (Maturity—November 14, 2019)(9)	3,905	3,850	3,905
							Member Units (627 units)(8)		811	4,460

									4,661	8,365

Lamb Ventures, LLC						Aftermarket Automotive Services Chain
							LIBOR Plus 5.75%, Current Coupon 6.56%, Secured Debt (Maturity May 30, 2018)	305	305	305
							11% Secured Debt (Maturity—May 31, 2018)	7,579	7,579	7,579
		8% Secured Debt (Maturity—August 22, 2016)	1,514	1,514	1,514		Preferred Equity (non-voting)		400	400
		Preferred Equity (non-voting)		434	430		Member Units (742 units)(8)		5,273	6,190
		Warrants (71 equivalent units)		54	30		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)	432	428	428
		Member Units (700 units)		100	260		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	960

				2,102	2,234				14,610	15,862

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)	Fabricator of Marine and Industrial Shelters
Marine Shelters Holdings, LLC						Fabricator of Marine and Industrial Shelters
		12% PIK Secured Debt (Maturity—December 28, 2017)	9,330	9,252	8,910		12% PIK Secured Debt (Maturity—December 28, 2017)(14)	3,131	3,078	—
		Preferred Member Units (3,810 units)		5,352	3,801		Preferred Member Units (3,810 units)		5,352	—

				14,604	12,711				8,430	—

MH Corbin Holding LLC	Manufacturer and distributor of traffic safety products					Manufacturer and Distributor of Traffic Safety Products
		10% Secured Debt (Maturity—August 31, 2020)	13,825	13,701	13,701		10% Secured Debt (Maturity—August 31, 2020)	13,125	13,030	13,030
		Preferred Member Units (4,000 shares)		6,000	6,000		Preferred Member Units (4,000 shares)		6,000	6,000

				19,701	19,701				19,030	19,030

Mid-Columbia Lumber Products, LLC	Manufacturer of Finger-Jointed Lumber Products
		10% Secured Debt (Maturity—December 18, 2017)	1,750	1,750	1,750
		12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
		Member Units (2,829 units)		1,244	2,420
		9.5% Secured Debt (Mid—Columbia Real Estate, LLC) (Maturity—May 13, 2025)	870	870	870
		Member Units (Mid—Columbia Real Estate, LLC) (250 units)(8)		250	550

				8,014	9,490

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)		—	27,792

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)	9,448	9,292	9,448
		Common Stock (5,873 shares)(8)		2,720	5,390

				12,012	14,838

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)				Business Description	Type of Investment(2)(3)


Mid-Columbia Lumber Products, LLC						Manufacturer of Finger-Jointed Lumber Products
							10% Secured Debt (Maturity—December 18, 2017)	1,750	1,750	1,750
							12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
							Member Units (3,554 units)		1,810	1,980
							9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)	825	825	825
							Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)		790	1,220

									9,075	9,675

MSC Adviser I, LLC(16)						Third Party Investment Advisory Services
							Member Units (Fully diluted 100.0%)(8)		—	33,472

Mystic Logistics Holdings, LLC						Logistics and Distribution Services Provider for Large Volume Mailers
							12% Secured Debt (Maturity—August 15, 2019)	9,164	9,051	9,164
							Common Stock (5,873 shares)		2,720	6,170

									11,771	15,334

NAPCO Precast, LLC	Precast Concrete Manufacturing					Precast Concrete Manufacturing
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)	3,069	3,039	3,069		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)	2,713	2,695	2,713
		18% Secured Debt (Maturity—February 1, 2019)	4,471	4,427	4,471		18% Secured Debt (Maturity—February 1, 2019)	3,952	3,925	3,952
		Member Units (2,955 units)(8)		2,975	9,060		Member Units (2,955 units)(8)		2,975	10,920

				10,441	16,600				9,595	17,585

NRI Clinical Research, LLC	Clinical Research Service Provider					Clinical Research Service Provider
							LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)	400	400	400
		14% Secured Debt (Maturity—September 8, 2017)	4,510	4,443	4,443		14% Secured Debt (Maturity—September 8, 2017)	4,261	4,239	4,261
		Warrants (251,723 equivalent units)		252	380		Warrants (251,723 equivalent units)		252	680
		Member Units (1,454,167 units)		765	1,422		Member Units (500,000 units)		765	2,462

				5,460	6,245				5,656	7,803

NRP Jones, LLC	Manufacturer of Hoses, Fittings and Assemblies					Manufacturer of Hoses, Fittings and Assemblies
		6% Current / 6% PIK Secured Debt (Maturity—December 22, 2016)	13,293	13,082	13,082		8% Current / 4% PIK Secured Debt (Maturity—December 22, 2016)(17)	14,054	14,054	14,054
		Warrants (14,331 equivalent units)		817	150		Warrants (14,331 equivalent units)		817	130
		Member Units (50,877 units)		2,900	490		Member Units (50,877 units)		2,900	410

				16,799	13,722				17,771	14,594

OMi Holdings, Inc.	Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)		1,080	14,570

Pegasus Research Group, LLC (Televerde)	Provider of Telemarketing and Data Services
		Member Units (460 units)(8)		1,290	8,030

PPL RVs, Inc.	Recreational Vehicle Dealer
		11.1% Secured Debt (Maturity—July 1, 2016)	9,710	9,710	9,710
		Common Stock (1,962 shares)		2,150	10,060

				11,860	19,770

Principle Environmental, LLC	Noise Abatement Service Provider
		12% Secured Debt (Maturity—April 30, 2017)	4,060	4,060	4,060
		12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)	3,327	3,327	3,327
		Preferred Member Units (19,631 units)(8)		4,663	4,600
		Warrants (1,036 equivalent units)		1,200	120

				13,250	12,107

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)				Business Description	Type of Investment(2)(3)


NuStep, LLC						Designer, Manufacturer and Distributor of Fitness Equipment
							12% Secured Debt (Maturity—January 31, 2022)	20,600	20,394	20,394
							Preferred Member Units (406 units)		10,200	10,200

									30,594	30,594

OMi Holdings, Inc.						Manufacturer of Overhead Cranes
							Common Stock (1,500 shares)(8)		1,080	13,080

Pegasus Research Group, LLC						Provider of Telemarketing and Data Services
							Member Units (460 units)(8)		1,290	8,440

PPL RVs, Inc.						Recreational Vehicle Dealer
							LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.05%, Secured Debt (Maturity—November 15, 2021)(9)	18,000	17,834	17,834
							Common Stock (1,962 shares)(8)		2,150	11,780

									19,984	29,614

Principle Environmental, LLC						Noise Abatement Service Provider
							12% Secured Debt (Maturity—April 30, 2017)	4,060	4,060	4,060
							12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)	3,394	3,394	3,394
							Preferred Member Units (19,631 units)		4,600	6,260
							Warrants (1,036 equivalent units)		1,200	320

									13,254	14,034

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services					Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)	6,664	6,664	6,664		8% PIK Secured Debt (Maturity—June 8, 2020)	7,204	7,204	7,204
		Member Units (1,000 units)		568	2,638		Member Units (1,000 units)		2,168	4,239

				7,232	9,302				9,372	11,443

River Aggregates, LLC	Processor of Construction Aggregates					Processor of Construction Aggregates
		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750	573	573		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750	646	646
		Member Units (1,150 units)(8)		1,150	4,090		Member Units (1,150 units)(8)		1,150	4,600
		Member Units (RA Properties, LLC) (1,500 units)		369	2,440		Member Units (RA Properties, LLC) (1,500 units)		369	2,510

				2,092	7,103				2,165	7,756

SoftTouch Medical Holdings LLC	Home Provider of Pediatric Durable Medical Equipment
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)	8,075	8,014	8,075
		Member Units (4,450 units)(8)		4,930	7,480

				12,944	15,555

The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)	2,924	2,921	2,921
		Series A Preferred Units (2,500 units; 10% Cumulative)		2,500	690
		Warrants (1,424 equivalent units)		1,096	—
		Member Units (MPI Real Estate Holdings, LLC) (100% Fully diluted)(8)		2,300	2,300

				8,817	5,911

Travis Acquisition LLC	Manufacturer of Aluminum Trailers
		12% Secured Debt (Maturity—August 30, 2018)	3,398	3,360	3,398
		Member Units (7,282 units)		7,100	17,320

				10,460	20,718

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	1,207	1,207	1,207
		Member Units (2,011 units)(8)		3,843	5,710

				5,050	6,917

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Vision Interests, Inc.

Manufacturer / Installer of Commercial Signage

13% Secured Debt (Maturity—December 23, 2016)
3,071 3,057 3,057

Series A Preferred Stock (3,000,000 shares)
3,000 3,550

Common Stock (1,126,242 shares)
3,706 211

9,763 6,818

Ziegler's NYPD, LLC

Casual Restaurant Group

6.5% Secured Debt (Maturity—October 1, 2019)
1,000 992 992

12% Secured Debt (Maturity—October 1, 2019)
500 500 500

14% Secured Debt (Maturity—October 1, 2019)
2,750 2,750 2,750

Warrants (587 equivalent units)
600 150

Preferred Member Units (10,072 units)
2,834 3,400

7,676 7,792

Subtotal Control Investments (28.6% of total investments at fair value)
$ 361,823 $ 520,099

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~March 31, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Affiliate Investments(6)

AFG Capital Group, LLC

Provider of Rent-to-Own Financing Solutions and Services

11% Secured Debt (Maturity—November 7, 2019)
$ 12,960 $ 12,629 $ 12,808

Warrants (42 equivalent units)
259 530

Member Units (186 units)
1,200 2,180

14,088 15,518

Barfly Ventures, LLC(10)

Casual Restaurant Group

12% Secured Debt (Maturity—August 31, 2020)
4,121 4,045 3,952

Options (2 equivalent units)
397 470

Warrant (1 equivalent unit)
473 240

4,915 4,662

Boss Industries, LLC

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

Preferred Member Units (2,242 units)(8)
2,290 2,450

Bridge Capital Solutions Corporation

Financial Services and Cash Flow Solutions Provider

13% Secured Debt (Maturity—April 18, 2017)
7,000 6,910 7,000

Warrants (22 equivalent shares)
200 1,380

7,110 8,380

Buca C, LLC

Casual Restaurant Group

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)
25,530 25,309 25,530

Preferred Member Units (6 units; 6% cumulative)(8)
3,766 5,770

29,075 31,300

CAI Software LLC

Provider of Specialized Enterprise Resource Planning Software

12% Secured Debt (Maturity—October 10, 2019)
4,340 4,307 4,340

Member Units (65,356 units)(8)
654 1,300

4,961 5,640

CapFusion, LLC

Business Lender

13% Secured Debt (Maturity—March 25, 2021)
9,600 8,302 8,302

Warrants (1,600 equivalent units)
1,200 1,200

9,502 9,502

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~March 31, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Chandler Signs Holdings, LLC(10)

Sign Manufacturer

12% Secured Debt (Maturity—July 4, 2021)
4,500 4,456 4,456

Class A Units (1,500,000 units)
1,500 1,500

5,956 5,956

Condit Exhibits, LLC

Tradeshow Exhibits / Custom Displays Provider

Member Units (3,936 units)(8)
100 1,010

Congruent Credit Opportunities Funds(12)(13)

Investment Partnership

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)
5,778 1,649

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)
12,020 11,903

17,798 13,552

Daseke, Inc.

Specialty Transportation Provider

12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)
21,388 21,156 21,388

Common Stock (19,467 shares)
5,213 22,660

26,369 44,048

Dos Rios Partners(12)(13)

Investment Partnership

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)
4,174 2,582

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)
1,325 988

5,499 3,570

East Teak Fine Hardwoods, Inc.

Distributor of Hardwood Products

Common Stock (6,250 shares)(8)
480 860

East West Copolymer & Rubber, LLC

Manufacturer of Synthetic Rubbers

12% Secured Debt (Maturity—October 17, 2019)
9,600 9,470 9,470

Warrants (2,510,790 equivalent units)
50 50

9,520 9,520

EIG Traverse Co-Investment, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 6.6%)(8)
9,805 9,805

Freeport Financial Funds(12)(13)

Investment Partnership

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)
5,974 5,768

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)
3,564 3,564

9,538 9,332

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~March 31, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Gault Financial, LLC (RMB Capital, LLC)

Purchases and Manages Liquidation of Distressed Assets

10% Secured Debt (Maturity—November 21, 2016)
13,046 12,936 10,969

Warrants (29,025 equivalent units)
400 —

13,336 10,969

Glowpoint, Inc.

Provider of Cloud Managed Video Collaboration Services

8% Secured Debt (Maturity—October 18, 2018)
400 397 397

12% Secured Debt (Maturity—October 18, 2018)
9,000 8,934 8,640

Common Stock (7,711,517 shares)
3,958 3,010

13,289 12,047

Guerdon Modular Holdings, Inc.

Multi-Family and Commercial Modular Construction Company

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—August 13, 2019)(9)
960 946 946

13% Secured Debt (Maturity—August 13, 2019)
10,400 10,300 10,300

Common Stock (212,033 shares)
2,983 1,210

14,229 12,456

Houston Plating and Coatings, LLC

Provider of Plating and Industrial Coating Services

Member Units (248,082 units)(8)
996 6,080

I-45 SLF LLC(12)(13)

Investment Partnership

Member units (Fully diluted 20.0%; 24.4% profits interest)(8)
9,200 9,036

Indianhead Pipeline Services,��LLC

Provider of Pipeline Support Services

12% Secured Debt (Maturity—February 6, 2017)
5,775 5,660 5,660

Preferred Member Units (33,819 units; 8% cumulative)(8)
2,320 2,569

Warrants (31,928 equivalent units)
459 —

Member Units (14,732 units)
1 —

8,440 8,229

KBK Industries, LLC

Manufacturer of Specialty Oilfield and Industrial Products

12.5% Secured Debt (Maturity—September 28, 2017)
5,900 5,878 5,900

Member Units (250 units)(8)
341 3,510

6,219 9,410

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~March 31, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

L.F. Manufacturing Holdings, LLC(10)

Manufacturer of Fiberglass Products

Member Units (2,179,001 units)(8)
2,019 1,670

MPS Denver, LLC

Specialty Card Printing

Member Units (13,800 units)
1,130 840

OnAsset Intelligence, Inc.

Provider of Transportation Monitoring / Tracking Products and Services

12% PIK Secured Debt (Maturity—December 31, 2015)(17)
4,129 4,129 4,129

Preferred Stock (912 shares; 7% cumulative)
1,981 1,380

Warrants (5,333 equivalent shares)
1,919 —

8,029 5,509

OPI International Ltd.(13)

Provider of Man Camp and Industrial Storage Services

10% Unsecured Debt (Maturity—April 8, 2018)
473 473 473

Common Stock (20,766,317 shares)
1,371 3,200

1,844 3,673

PCI Holding Company, Inc.

Manufacturer of Industrial Gas Generating Systems

12% Secured Debt (Maturity—March 31, 2019)
13,000 12,870 12,870

Preferred Stock (1,500,000 shares; 20% cumulative)(8)
2,904 4,090

15,774 16,960

Radial Drilling Services Inc.

Oil and Gas Lateral Drilling Technology Provider

12% Secured Debt (Maturity—November 22, 2016)(14)
4,200 3,946 1,505

Warrants (316 equivalent shares)
758 —

4,704 1,505

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)

Provider of Rigsite Accommodation Unit Rentals and Related Services

12% Secured Debt (Maturity—January 8, 2018)(14)(18)
30,785 30,281 250

Preferred Member Units (250 units)
2,500 —

32,781 250

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~March 31, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value			Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Samba Holdings, Inc.	Provider of Intelligent Driver Record Monitoring Software and Services
SoftTouch Medical Holdings LLC										Provider of In-Home Pediatric Durable Medical Equipment
		12.5% Secured Debt (Maturity—November 17, 2016)		23,762		23,684		23,762			LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)	7,140		7,099		7,140
		Common Stock (170,963 shares)				2,087		30,220			Member Units (4,450 units)(8)			4,930		9,170

						25,771		53,982						12,029		16,310

Tin Roof Acquisition Company	Casual Restaurant Group
The MPI Group, LLC										Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
											9% Secured Debt (Maturity—October 2, 2018)	2,924		2,922		2,922
											Series A Preferred Units (2,500 units; 10% Cumulative)			2,500		—
		12% Secured Debt (Maturity—November 13, 2018)		13,889		13,717		13,717			Warrants (1,424 equivalent units)			1,096		—
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)				2,539		2,539			Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)			2,300		2,390

						16,256		16,256						8,818		5,312

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
Uvalco Supply, LLC										Farm and Ranch Supply Store
											9% Secured Debt (Maturity—January 1, 2019)	756		756		756
											Member Units (1,867 units)(8)			3,579		4,307

														4,335		5,063

Vision Interests, Inc.										Manufacturer / Installer of Commercial Signage
											13% Secured Debt (Maturity—December 23, 2018)	2,814		2,814		2,814
											Series A Preferred Stock (3,000,000 shares)			3,000		3,000
											Common Stock (1,126,242 shares)			3,706		—

														9,520		5,814

Ziegler's NYPD, LLC										Casual Restaurant Group
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)		2,826		2,826		2,812			6.5% Secured Debt (Maturity—October 1, 2019)	1,000		994		994
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50% / 1.00% PIK, Current Coupon Plus PIK 10.50%, Secured Debt (Maturity—January 13, 2019)(9)		1,264		1,264		1,258			12% Secured Debt (Maturity—October 1, 2019)	300		300		300
		15% PIK Unsecured Debt (Maturity—July 13, 2019)		666		666		662			14% Secured Debt (Maturity—October 1, 2019)	2,750		2,750		2,750
		Preferred Stock (4,935,377 shares)				4,935		5,800			Warrants (587 equivalent units)			600		240
		Common Stock (705,054 shares)				—		1,120			Preferred Member Units (10,072 units)			2,834		4,100

						9,691		11,652						7,478		8,384

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Class A Preferred Units (4,000,000 units; 4.5% cumulative)(8)				4,000		2,020

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		10.5% Secured Debt (Maturity—January 26, 2020)		17,500		16,261		16,261
		Preferred Member Units (4,876,670 units)				14,000		14,000
		Warrants (950,618 equivalent units)				1,400		1,400

						31,661		31,661
Subtotal Control Investments (33.3% of total investments at fair value)									Subtotal Control Investments (33.3% of total investments at fair value)				$	491,749	$	658,239
			��
Subtotal Affiliate Investments (21.4% of total investments at fair value)					$	376,375	$	389,310

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Non-Control/Non-Affiliate Investments(7)

AccuMED Corp.(10)

Medical Device Contract Manufacturer

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)
$ 10,352 $ 10,255 $ 10,255

Adams Publishing Group, LLC(10)

Local Newspaper Operator

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)
9,263 9,097 9,089

Ahead, LLC(10)

IT Infrastructure Value Added Reseller

LIBOR Plus 6.50%, Current Coupon 7.10%, Secured Debt (Maturity—November 2, 2020)
14,813 14,398 14,442

Allflex Holdings III Inc.(11)

Manufacturer of Livestock Identification Products

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)
10,150 10,082 9,757

AM General LLC(11)

Specialty Vehicle Manufacturer

LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)
2,175 2,145 1,620

AM3 Pinnacle Corporation(10)

Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties

Common Stock (60,240 shares)
2,000 —

American Seafoods Group, LLC(11)

Catcher-Processor of Alaskan Pollock

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)
9,875 9,864 9,616

AMF Bowling Centers, Inc.(11)

Bowling Alley Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)
7,887 7,786 7,769

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Affiliate Investments(6)

AFG Capital Group, LLC	Provider of Rent-to-Own Financing Solutions and Services
		Warrants (42 equivalent units)		$	259	$	690
		Member Units (186 units)(8)			1,200		2,850

					1,459		3,540

Barfly Ventures, LLC(10)	Casual Restaurant Group
		12% Secured Debt (Maturity—August 31, 2020)	7,796		7,667		7,635
		Options (2 equivalent units)			397		490
		Warrant (1 equivalent unit)			473		280

					8,537		8,405

BBB Tank Services, LLC	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—April 8, 2021)(9)	800		797		797
		15% Secured Debt (Maturity—April 8, 2021)	4,027		3,992		3,992
		Member Units (800,000 units)			800		800

					5,589		5,589

Boss Industries, LLC	Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		Preferred Member Units (2,242 units)(8)			2,473		2,920

Bridge Capital Solutions Corporation	Financial Services and Cash Flow Solutions Provider
		13% Secured Debt (Maturity—July 25, 2021)	7,500		5,673		5,673
		Warrants (63 equivalent shares)			2,132		3,370
		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)	1,000		991		1,000
		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)			1,000		1,000

					9,796		11,043

Buca C, LLC	Casual Restaurant Group
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)	21,204		21,058		21,058
		Preferred Member Units (6 units; 6% cumulative)(8)			3,995		3,990

					25,053		25,048

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Anchor Hocking, LLC(11)

Household Products Manufacturer

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)
2,294 2,294 2,128

Member Units (440,620 units)
4,928 3,084

7,222 5,212

AP Gaming I, LLC(10)

Developer, Manufacturer, and Operator of Gaming Machines

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)
11,314 11,116 10,522

Apex Linen Service, Inc.

Industrial Launderers

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)
1,600 1,600 1,600

13% Secured Debt (Maturity—October 30, 2022)
12,000 11,927 11,927

13,527 13,527

Applied Products, Inc.(10)

Adhesives Distributor

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)
4,684 4,642 4,565

Arcus Hunting LLC.(10)

Manufacturer of Bowhunting and Archery Products and Accessories

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)
11,973 11,826 11,826

Artel, LLC(11)

Provider of Secure Satellite Network and IT Solutions

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)
7,634 7,404 6,527

ATS Workholding, Inc.(10)

Manufacturer of Machine Cutting Tools and Accessories

LIBOR Plus 7.50% (Floor 1.00%), Default Interest 2.00%, Current Coupon 10.50%, Secured Debt (Maturity—March 10, 2019)(9)
6,412 6,376 6,153

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software
		12% Secured Debt (Maturity—October 10, 2019)	3,483	3,463	3,483
		Member Units (65,356 units)(8)		654	2,580

				4,117	6,063

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
		13% Secured Debt (Maturity—March 25, 2021)	14,400	13,252	13,252
		Warrants (1,600 equivalent units)		1,200	1,200

				14,452	14,452

Chandler Signs Holdings, LLC(10)	Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)	4,500	4,463	4,500
		Class A Units (1,500,000 units)(8)		1,500	3,240

				5,963	7,740

Condit Exhibits, LLC	Tradeshow Exhibits / Custom Displays Provider
		Member Units (3,936 units)(8)		100	1,840

Congruent Credit Opportunities Funds(12)(13)	Investment Partnership
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)		5,730	1,377
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)		17,869	18,577

				23,599	19,954

Dos Rios Partners(12)(13)	Investment Partnership
		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)		5,996	5,629
		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)		1,904	1,651

				7,900	7,280

Dos Rios Stone Products LLC(10)	Limestone and Sandstone Dimension Cut Stone Mining Quarries
		Class A Units (2,000,000 units)(8)		2,000	2,070

East Teak Fine Hardwoods, Inc.	Distributor of Hardwood Products
		Common Stock (6,250 shares)(8)		480	750

East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)(14)	9,699	9,591	2,240
		Warrants (2,510,790 equivalent units)		50	—

				9,641	2,240

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

ATX Networks Corp.(11)(13)

Provider of Radio Frequency Management Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 14, 2021)(9)
14,888 14,620 14,739

Berry Aviation, Inc.(10)

Airline Charter Service Operator

12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)
5,627 5,581 5,581

Common Stock (553 shares)
400 490

5,981 6,071

Bioventus LLC(10)

Production of Orthopedic Healing Products

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—April 10, 2020)(9)
5,000 4,921 4,925

Blackbrush Oil and Gas LP(11)

Oil & Gas Exploration

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 30, 2021)(9)
4,000 3,976 3,097

Blackhawk Specialty Tools LLC(11)

Oilfield Equipment & Services

LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity—August 1, 2019)(9)
5,809 5,785 4,793

Blue Bird Body Company(11)

School Bus Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—June 26, 2020)(9)
2,632 2,602 2,607

Bluestem Brands, Inc.(11)(13)

Multi-Channel Retailer of General Merchandise

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)
13,444 13,193 11,915

Brainworks Software, LLC(10)

Advertising Sales and Newspaper Circulation Software

Prime Plus 7.25% (Floor 3.25%), Current Coupon 10.75%, Secured Debt (Maturity—July 22, 2019)(9)
626 620 620

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—July 22, 2019)(9)
6,146 6,091 6,012

6,711 6,632

Brightwood Capital Fund III, LP(12)(13)

Investment Partnership

LP Interests (Fully diluted 1.6%)(8)
11,250 10,988

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


EIG Fund Investments(12)(13)	Investment Partnership
		LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)		1,565	1,466
		LP Interests (EIG Traverse Co-Investment, L.P.) (Fully diluted 22.2%)(8)		9,805	9,973

				11,370	11,439

Freeport Financial Funds(12)(13)	Investment Partnership
		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)		5,974	5,675
		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)		7,559	7,507

				13,533	13,182

Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Collection of Healthcare and other Business Receivables
		10.5% Secured Debt (Maturity—January 1, 2019)	12,900	12,900	11,950
		Warrants (29,032 equivalent units)		400	—

				13,300	11,950

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		12% Secured Debt (Maturity—October 18, 2018)	9,000	8,957	3,010
		Common Stock (7,711,517 shares)		3,958	2,270

				12,915	5,280

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company
		13% Secured Debt (Maturity—August 13, 2019)	10,708	10,603	10,603
		Preferred Stock (404,998 shares)		1,140	1,140
		Common Stock (212,033 shares)		2,983	80

				14,726	11,823

Hawk Ridge Systems, LLC(13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—December 2, 2021)	10,000	9,905	9,905
		Preferred Member Units (226 units)(8)		2,850	2,850
		Preferred Member Units (HRS Services, ULC) (226 units)		150	150

				12,905	12,905

Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (265,756 units)		1,429	4,230

I-45 SLF LLC(12)(13)	Investment Partnership
		Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)		15,200	15,907

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Brundage-Bone Concrete Pumping, Inc.(11)

Construction Services Provider

10.375% Secured Debt (Maturity—September 1, 2021)
3,000 2,983 3,000

Calloway Laboratories, Inc.(10)

Health Care Testing Facilities

17% PIK Secured Debt (Maturity—September 30, 2016)(14)
7,324 7,275 —

Warrants (125,000 equivalent shares)
17 —

7,292 —

Cengage Learning Acquisitions, Inc.(11)

Provider of Educational Print and Digital Services

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 31, 2020)(9)
3,214 3,199 3,206

Cenveo Corporation(11)

Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products

6% Secured Debt (Maturity—August 1, 2019)
5,230 4,330 3,805

CGSC of Delaware Holdings Corp.(11)(13)

Insurance Brokerage Firm

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—October 16, 2020)(9)
2,000 1,979 1,987

Charlotte Russe, Inc(11)

Fast-Fashion Retailer to Young Women

LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)
14,346 14,083 7,704

Clarius ASIG, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—September 14, 2014)(17)
488 488 488

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
3,317 3,317 398

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,091 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 3,130

5,170 7,230

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2018)	5,417	5,417	5,417
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,437	2,775
		Warrants (31,928 equivalent units)		459	—
		Member Units (14,732 units)		1	—

				8,314	8,192

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
		10% Secured Debt (Maturity—September 28, 2017)	1,175	1,175	1,175
		12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,892	5,892
		Member Units (250 units)		341	2,780

				7,408	9,847

L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)		2,019	1,380

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)	4,654	4,654	4,654
		Preferred Stock (912 shares; 7% cumulative)		1,981	—
		Warrants (5,333 equivalent shares)		1,919	—

				8,554	4,654

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services
		10% Unsecured Debt (Maturity—April 8, 2018)	473	473	473
		Common Stock (20,766,317 shares)		1,371	380

				1,844	853

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)	13,000	12,908	13,000
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)		3,551	5,540

				16,459	18,540

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)	Provider of Rigsite Accommodation Unit Rentals and Related Services
		12% Secured Debt (Maturity—January 8, 2018)(14)(15)	30,785	30,281	250
		Preferred Member Units (250 units)		2,500	—

				32,781	250

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Compuware Corporation(11)

Provider of Software and Supporting Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—December 15, 2019)(9)
14,367 14,040 13,914

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
800 800 768

CRGT Inc.(11)

Provider of Custom Software Development

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 19, 2020)(9)
7,595 7,480 7,576

CST Industries Inc.(11)

Storage Tank Manufacturer

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)
7,784 7,760 7,726

Darr Equipment LP(10)

Heavy Equipment Dealer

11.75% Current / 2% PIK Secured Debt (Maturity -April 15, 2020)
20,811 20,305 19,815

Warrants (915,734 equivalent units)
474 180

20,779 19,995

Digital River, Inc.(11)

Provider of Outsourced e-Commerce Solutions and Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—February 12, 2021)(9)
10,184 10,080 9,993

Drilling Info Holdings, Inc.

Information Services for the Oil and Gas Industry

Common Stock (3,788,865 shares)
1,335 10,400

ECP-PF Holdings Group, Inc.(10)

Fitness Club Operator

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)
5,625 5,582 5,495

EIG Fund Investments(12)(13)

Investment Partnership

LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 0.5%)
2,780 2,780

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Tin Roof Acquisition Company	Casual Restaurant Group
		12% Secured Debt (Maturity—November 13, 2018)	13,342		13,232		13,232
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)			2,807		2,807

					16,039		16,039

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)	5,021		5,011		5,021
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)	826		826		826
		15% PIK Unsecured Debt (Maturity—July 13, 2019)	773		773		773
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)			6,248		6,620
		Common Stock (705,054 shares)			—		2,810

					12,858		16,050

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)			717		720
		Member Units (UWS Investments, LLC) (4,000,000 units)			4,000		610

					4,717		1,330

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.28%, Secured Debt (Maturity—December 29, 2020)(9)	12,856		12,750		12,750
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)			1,600		1,600

					14,350		14,350

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)	17,500		15,439		15,439
		Preferred Member Units (4,876,670 units)			14,000		14,000
		Warrants (1,831,355 equivalent units)			2,576		2,450

					32,015		31,889

Subtotal Affiliate Investments (16.6% of total investments at fair value)				$	373,895	$	329,024

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Non-Control/Non-Affiliate Investments(7)

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 3, 2020)(9)	$	7,589	$	7,478	$	7,589

ADS Tactical, Inc.(10)	Value-Added Logistics and Supply Chain Provider to the Defense Industry
		LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 8.50%, Secured Debt (Maturity—December 31, 2022)(9)		11,500		11,258		11,258

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 7.65%, Secured Debt (Maturity—November 2, 2020)		14,063		13,742		13,922

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)		14,795		14,710		14,826

American Scaffold Holdings, Inc.(10)	Marine Scaffolding Service Provider
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—March 31, 2022)(9)		7,313		7,216		7,276

American Teleconferencing Services, Ltd.(11)	Provider of Audio Conferencing and Video Collaboration Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 8, 2021)(9)		11,018		10,242		11,018
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 6, 2022)(9)		3,714		3,573		3,573

						13,815		14,591

Anchor Hocking, LLC(11)	Household Products Manufacturer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)		2,271		2,271		2,226
		Member Units (440,620 units)				4,928		3,305

						7,199		5,531

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

EnCap Energy Fund Investments(12)(13)

Investment Partnership

LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)
3,855 1,933

LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)
2,214 810

LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)
2,960 2,677

LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)
1,070 1,070

LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)
6,638 7,493

LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)
1,018 1,040

17,755 15,023

Energy and Exploration Partners, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—September 7, 2016)(9)(14)
1,132 1,106 1,129

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—January 22, 2019)(9)(14)
18,390 9,948 2,176

11,054 3,305

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)

Technology-based Performance Support Solutions

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)
7,000 6,842 3,325

Extreme Reach, Inc.(11)

Integrated TV and Video Advertising Platform

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—February 7, 2020)(9)
8,285 8,277 8,271

Flavors Holdings Inc.(11)

Global Provider of Flavoring and Sweetening Products and Solutions

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—April 3, 2020)(9)
13,011 12,532 11,710

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


AP Gaming I, LLC(10)	Developer, Manufacturer, and Operator of Gaming Machines
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)	7,190	7,086	7,258

Apex Linen Service, Inc.	Industrial Launderers
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)	2,400	2,400	2,400
		13% Secured Debt (Maturity—October 30, 2022)	14,416	14,340	14,340

				16,740	16,740

Arcus Hunting LLC.(10)	Manufacturer of Bowhunting and Archery Products and Accessories
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)	13,912	13,773	13,912

Artel, LLC(11)	Provider of Secure Satellite Network and IT Solutions
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)	7,330	7,215	7,330

ATI Investment Sub, Inc.(11)	Manufacturer of Solar Tracking Systems
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 22, 2021)(9)	9,250	9,083	9,227

ATS Workholding, Inc.(10)	Manufacturer of Machine Cutting Tools and Accessories
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—March 10, 2019)(9)	6,173	6,149	5,659

ATX Networks Corp.(11)(13)	Provider of Radio Frequency Management Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—June 11, 2021)(9)	9,765	9,620	9,668

Berry Aviation, Inc.(10)	Airline Charter Service Operator
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)	5,627	5,590	5,627
		Common Stock (553 shares)		400	820

				5,990	6,447

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Fram Group Holdings, Inc.(11)

Manufacturer of Automotive Maintenance Products

LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)
9,267 9,181 8,556

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)
700 699 485

9,880 9,041

GI KBS Merger Sub LLC(11)

Outsourced Janitorial Services to Retail/Grocery Customers

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)
3,950 3,894 3,743

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)
800 786 760

4,680 4,503

Grace Hill, LLC(10)

Online Training Tools for the Multi-Family Housing Industry

Prime Plus 5.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity—August 15, 2019)(9)
332 317 332

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)
11,609 11,510 11,609

11,827 11,941

Great Circle Family Foods, LLC(10)

Quick Service Restaurant Franchise

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)
7,799 7,737 7,737

Grupo Hima San Pablo, Inc.(11)

Tertiary Care Hospitals

LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)
4,850 4,809 4,607

13.75% Secured Debt (Maturity—July 31, 2018)
2,000 1,947 1,840

6,756 6,447

GST Autoleather, Inc.(11)

Automotive Leather Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 10, 2020)(9)
9,850 9,776 9,505

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Binswanger Enterprises, LLC(10)	Glass Repair and Installation Service Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity—March 9, 2022)(9)	15,460	15,155	15,155
		Member Units (1,050,000 units)		1,050	1,050

				16,205	16,205

Bluestem Brands, Inc.(11)	Multi-Channel Retailer of General Merchandise
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)	12,692	12,466	10,471

Brainworks Software, LLC(10)	Advertising Sales and Newspaper Circulation Software
		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.25%, Secured Debt (Maturity—July 22, 2019)(9)	6,733	6,688	6,491

Brightwood Capital Fund Investments(12)(13)	Investment Partnership
		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)		12,000	10,271
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.9%)		500	500

				12,500	10,771

Brundage-Bone Concrete Pumping, Inc.(11)	Construction Services Provider
		10.375% Secured Debt (Maturity—September 1, 2021)	3,000	2,986	3,150

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)	7,967	7,922	7,969

CDHA Management, LLC(10)	Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—December 5, 2021)(9)	4,227	4,154	4,154

Cengage Learning Acquisitions, Inc.(11)	Provider of Educational Print and Digital Services
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25%, Secured Debt (Maturity—June 7, 2023)(9)	9,459	8,854	9,049

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Guitar Center, Inc.(11)

Musical Instruments Retailer

6.5% Secured Debt (Maturity—April 15, 2019)
12,250 11,532 11,025

Halcon Resources Corporation(11)

Oil & Gas Exploration & Production

9.75% Unsecured Debt (Maturity—July 15, 2020)
6,925 6,394 1,229

Hojeij Branded Foods, LLC(10)

Multi-Airport, Multi-Concept Restaurant Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)
5,459 5,412 5,412

Horizon Global Corporation(11)

Auto Parts Manufacturer

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 30, 2021)(9)
9,625 9,452 9,264

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—December 13, 2019)(9)
11,028 10,961 10,918

Hunter Defense Technologies, Inc.(11)

Provider of Military and Commercial Shelters and Systems

LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—August 5, 2019)(9)
6,414 6,369 5,292

Hygea Holdings, Corp.(10)

Provider of Physician Services

LIBOR Plus 9.25%, Current Coupon 9.87%, Secured Debt (Maturity—February 24, 2019)
8,000 7,352 7,352

Warrants (4,880,735 equivalent shares)
369 369

7,721 7,721

ICON Health & Fitness, Inc.(11)

Producer of Fitness Products

11.875% Secured Debt (Maturity—October 15, 2016)
7,956 7,842 7,200

iEnergizer Limited(11)(13)

Provider of Business Outsourcing Solutions

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)
7,816 7,744 6,839

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		6% Secured Debt (Maturity—August 1, 2019)	15,130	13,073	12,482

Charlotte Russe, Inc(11)	Fast-Fashion Retailer to Young Women
		LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)	14,346	14,160	9,134

Clarius BIGS, LLC(10)	Prints & Advertising Film Financing
		15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)	2,928	2,928	88

Compact Power Equipment, Inc.	Equipment / Tool Rental
		12% Secured Debt (Maturity—October 1, 2017)	4,100	4,097	4,100
		Series A Preferred Stock (4,298,435 shares)		1,079	4,580

				5,176	8,680

Construction Supply Investments, LLC(10)(13)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 30, 2023)(9)	8,500	8,418	8,418
		Member Units (20,000 units)		2,000	2,000

				10,418	10,418

ContextMedia Health, LLC(11)	Provider of Healthcare Media Content
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 23, 2021)(9)	7,900	7,132	7,900

Covenant Surgical Partners, Inc.(11)	Ambulatory Surgical Centers
		8.75% Secured Debt (Maturity—August 1, 2019)	2,800	2,744	2,660

CST Industries Inc.(11)	Storage Tank Manufacturer
		LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)	9,102	9,096	9,011

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Indivior Finance LLC(11)(13)

Specialty Pharmaceutical Company Treating Opioid Dependence

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)
7,031 6,689 6,703

Industrial Container Services, LLC(10)

Steel Drum Reconditioner

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)
4,987 4,987 4,987

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
4,000 4,000 3,440

Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
3,851 3,714 3,562

Insurance Technologies, LLC(10)

Illustration and Sales-automation Platforms

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—December 1, 2019)(9)
4,739 4,697 4,697

Intertain Group Limited(11)(13)

Business-to-Consumer Online Gaming Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)
7,938 7,817 7,859

iPayment, Inc.(11)

Provider of Merchant Acquisition

LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)
15,026 14,993 14,359

iQor US Inc.(11)

Business Process Outsourcing Services Provider

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)
9,862 9,700 8,087

irth Solutions, LLC

Provider of Damage Prevention Information Technology Services

Member Units (27,893 units)
1,441 1,520

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Darr Equipment LP(10)	Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)	21,236	20,828	20,879
		Warrants (915,734 equivalent units)		474	10

				21,302	20,889

Digital River, Inc.(11)	Provider of Outsourced e-Commerce Solutions and Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.63%, Secured Debt (Maturity—February 12, 2021)(9)	15,184	15,091	15,260

Digital Room LLC(11)	Pure-Play e-Commerce Print Business
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 21, 2022)(9)	7,530	7,385	7,454

Drilling Info Holdings, Inc.	Information Services for the Oil and Gas Industry
		Common Stock (3,788,865 shares)		1,335	10,100

ECP-PF Holdings Group, Inc.(10)	Fitness Club Operator
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)	5,625	5,592	5,625

EnCap Energy Fund Investments(12)(13)	Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)		3,791	2,225
		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)		2,200	1,413
		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)		3,908	3,696
		LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)(8)		3,353	3,353
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)		8,757	9,983
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)		2,715	2,716

				24,724	23,386

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)	7,000	6,862	4,888

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Jackmont Hospitality, Inc.(10)

Franchisee of Casual Dining Restaurants

LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)
4,431 4,412 4,263

Joerns Healthcare, LLC(11)

Manufacturer and Distributor of Health Care Equipment & Supplies

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—May 9, 2020)(9)
14,805 14,716 14,675

JSS Holdings, Inc.(11)

Aircraft Maintenance Program Provider

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—August 31, 2021)(9)
14,381 14,062 13,662

Kendra Scott, LLC(11)

Jewelry Retail Stores

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—July 17, 2020)(9)
5,801 5,750 5,786

Keypoint Government Solutions, Inc.(11)

Provider of Pre-Employment Screening Services

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)
6,092 6,062 6,061

LaMi Products, LLC(10)

General Merchandise Distribution

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 16, 2020)(9)
10,735 10,645 10,735

Lansing Trade Group LLC(11)

Commodity Merchandiser

9.25% Unsecured Debt (Maturity—February 15, 2019)
6,000 6,000 5,670

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—August 7, 2019)(9)
7,784 7,503 3,581

Leadrock Properties, LLC

Real Estate Investment

10% Secured Debt (Maturity—May 4, 2026)
1,440 1,416 1,416

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products and Solutions
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.90%, Secured Debt (Maturity—April 3, 2020)(9)	13,661	13,056	11,800

GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)	6,900	6,812	6,814
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)	3,800	3,642	3,648

				10,454	10,462

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—August 15, 2019)(9)	883	873	883
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.36%, Secured Debt (Maturity—August 15, 2019)(9)	11,494	11,421	11,494

				12,294	12,377

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)	7,547	7,502	7,547

Grupo Hima San Pablo, Inc.(11)	Tertiary Care Hospitals
		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)	4,800	4,780	3,456
		13.75% Secured Debt (Maturity—July 31, 2018)	2,000	1,967	300

				6,747	3,756

GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.65%, Secured Debt (Maturity—July 10, 2020)(9)	14,305	14,188	14,001

Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)	15,625	14,863	13,125

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Legendary Pictures Funding, LLC(10)

Producer of TV, Film, and Comic Content

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)
7,500 7,378 7,369

LKCM Headwater Investments I, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 4,065

Looking Glass Investments, LLC(12)(13)

Specialty Consumer Finance

9% Unsecured Debt (Maturity—June 30, 2020)
188 188 188

Member Units (2.5 units)
125 125

Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)
188 188

501 501

MediMedia USA, Inc.(11)

Provider of Healthcare Media and Marketing

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)
7,772 7,719 7,597

Messenger, LLC(10)

Supplier of Specialty Stationery and Related Products to the Funeral Industry

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)
15,583 15,487 15,497

Milk Specialties Company(11)

Processor of Nutrition Products

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)
730 727 731

Minute Key, Inc.

Operator of Automated Key Duplication Kiosks

10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)
15,462 15,102 15,102

Warrants (1,437,409 equivalent units)
280 280

15,382 15,382

Mood Media Corporation(11)(13)

Provider of Electronic Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)
14,919 14,798 13,970

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Hojeij Branded Foods, LLC(10)	Multi-Airport, Multi- Concept Restaurant Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)	5,776	5,732	5,776

Hoover Group, Inc.(10)(13)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity—January 28, 2021)(9)	8,524	7,972	7,928

Hostway Corporation(11)	Managed Services and Hosting Provider
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—December 13, 2019)(9)	10,426	10,370	10,215

Hunter Defense Technologies, Inc.(11)	Provider of Military and Commercial Shelters and Systems
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 5, 2019)(9)	9,400	8,960	8,742

iEnergizer Limited(11)(13)	Provider of Business Outsourcing Solutions
		LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)	13,128	12,726	13,079

Indivior Finance LLC(11)(13)	Specialty Pharmaceutical Company Treating Opioid Dependence
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)	3,646	3,490	3,673

Industrial Container Services, LLC(10)	Steel Drum Reconditioner
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)	8,688	8,673	8,688

Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		11.25% Current / 0.75% PIK Unsecured Debt (Maturity— December 17, 2022)	4,527	4,444	4,444
		Member Units (Industrial Services Investments, LLC) (900,000 units)		900	810

				5,344	5,254

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	5,700	5,378	5,216

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,941	5,624

Intertain Group Limited(11)(13)	Business-to-Consumer Online Gaming Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)	4,301	4,243	4,344

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)	16,918	16,909	16,833

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)	9,787	9,653	9,566

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,920

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)	4,473	4,457	4,473

Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.05% / 0.50% PIK, Current Coupon Plus PIK 7.55%, Secured Debt (Maturity—May 9, 2020)(9)	14,617	14,493	13,156

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

New Media Holdings II LLC(11)(13)

Local Newspaper Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)
14,763 14,481 14,441

North American Lifting Holdings, Inc.(11)

Crane Service Provider

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—November 27, 2020)(9)
2,086 1,655 1,544

North Atlantic Trading Company, Inc.(11)

Marketer/Distributor of Tobacco Products

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—January 13, 2020)(9)
9,475 9,412 9,380

Novitex Intermediate, LLC(11)

Provider of Document Management Services

LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity—July 7, 2020)(9)
8,637 8,487 7,859

Ospemifene Royalty Sub LLC (QuatRx)(10)

Estrogen-Deficiency Drug Manufacturer and Distributor

11.5% Secured Debt (Maturity—November 15, 2026)(14)
5,071 5,071 3,324

Panolam Industries International, Inc.(11)

Decorative Laminate Manufacturer

LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity—August 23, 2017)(9)
9,330 9,294 9,237

Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,966 1,960

Parq Holdings Limited Partnership(11)(13)

Hotel & Casino Operator

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)
7,500 7,374 7,144

Permian Holdings, Inc.(11)

Storage Tank Manufacturer

10.5% Secured Debt (Maturity—January 15, 2018)
2,755 2,740 964

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Keypoint Government Solutions, Inc.(11)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)	5,248	5,236	5,221

LaMi Products, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.62%, Secured Debt (Maturity—September 16, 2020)(9)	11,044	10,971	11,044

Larchmont Resources, LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, PIK Secured Debt (Maturity—August 7, 2020)(9)	2,316	2,316	2,308
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	954

				2,669	3,262

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	3,967

Logix Acquisition Company, LLC(10)	Competitive Local Exchange Carrier
		LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity—June 24, 2021)(9)	8,515	8,386	8,515

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		9% Unsecured Debt (Maturity—June 30, 2020)	188	188	188
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		132	132

				445	445

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)	14,403	14,331	14,403

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,547 3,547 3,321

Pike Corporation(11)

Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 22, 2022)(9)
14,000 13,694 13,883

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 —

Common Stock (163,658 shares)
273 105

342 105

Prowler Acquisition Corp.(11)

Specialty Distributor to the Energy Sector

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—January 28, 2020)(9)
6,578 5,368 4,604

PT Network, LLC(10)

Provider of Outpatient Physical Therapy and Sports Medicine Services

LIBOR Plus 7.75% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity—June 30, 2016)(9)
1,095 1,095 1,095

LIBOR Plus 7.75% (Floor 1.50%), Current Coupon 9.25%, Secured Debt (Maturity—November 1, 2018)(9)
11,986 11,902 11,863

12,997 12,958

QBS Parent, Inc.(11)

Provider of Software and Services to the Oil & Gas Industry

LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)
11,360 11,277 11,246

Raley's(11)

Family-owned supermarket chain in California

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)
5,029 4,937 5,016

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	15,778	15,505	15,505
		Warrants (1,437,409 equivalent units)		280	800

				15,785	16,305

Mood Media Corporation(11)(13)	Provider of Electronic Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 1, 2019)(9)	14,767	14,623	14,700

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)	14,850	14,610	14,775

NNE Partners, LLC(10)	Oil & Gas Exploration & Production
		LIBOR Plus 8.00%, Current Coupon 9.07%, Secured Debt (Maturity—March 2, 2022)	7,292	7,220	7,220

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity—November 27, 2020)(9)	7,805	6,792	7,370

NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 7, 2022)(9)	4,091	4,035	4,070

Ospemifene Royalty Sub LLC (QuatRx)(10)	Estrogen-Deficiency Drug Manufacturer and Distributor
		11.5% Secured Debt (Maturity—November 15, 2026)(14)	5,071	5,071	1,779

Pardus Oil and Gas, LLC(11)	Oil & Gas Exploration & Production
		13% PIK Secured Debt (Maturity—November 12, 2021)	1,928	1,928	1,809
		5% PIK Secured Debt (Maturity—May 13, 2022)	1,004	1,004	489
		Member Units (2,472 units)		2,472	—

				5,404	2,298

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—December 31, 2021)(9)	2,000	1,970	1,960

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

RCHP, Inc.(11)

Regional Non-Urban Hospital Owner/Operator

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 23, 2019)(9)
5,448 5,427 5,427

LIBOR Plus 10.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity—October 23, 2019)(9)
4,000 3,956 4,040

9,383 9,467

Renaissance Learning, Inc.(11)

Technology-based K-12 Learning Solutions

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)
3,000 2,976 2,678

RGL Reservoir Operations Inc.(11)(13)

Oil & Gas Equipment and Services

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)
3,940 3,845 1,005

RLJ Entertainment, Inc.(10)

Movie and TV Programming Licensee and Distributor

LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.37%, Secured Debt (Maturity—September 11, 2019)(9)
9,253 9,253 9,103

RM Bidder, LLC(10)

Acquisition Vehicle

Warrants (327,532 equivalent units)
425 300

Member Units (2,779 units)
46 44

471 344

SAExploration, Inc.(10)(13)

Geophysical Services Provider

Common Stock (6,472 shares)
65 27

Sage Automotive Interiors, Inc(11)

Automotive Textiles Manufacturer

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 8, 2021)(9)
3,000 2,975 2,970

Salient Partners L.P.(11)

Provider of Asset Management Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—June 9, 2021)(9)
7,369 7,238 7,148

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Parq Holdings Limited Partnership(11)(13)	Hotel & Casino Operator
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)	7,500	7,399	7,481

Permian Holdco 2, Inc.(11)	Storage Tank Manufacturer
		14% PIK Unsecured Debt (Maturity—October 15, 2021)	205	205	205
		Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)		799	799
		Common Stock (Permian Holdco 1, Inc.) (154,558 units)		—	—

				1,004	1,004

Pernix Therapeutics Holdings, Inc.(10)	Pharmaceutical Royalty
		12% Secured Debt (Maturity—August 1, 2020)	3,214	3,214	1,151

Pike Corporation(11)	Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—September 10, 2024)(9)	3,000	2,970	3,053

Point.360(10)	Fully Integrated Provider of Digital Media Services
		Warrants (65,463 equivalent shares)		69	—
		Common Stock (163,658 shares)		273	34

				342	34

PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 22, 2021)(9)	6,956	6,815	6,815

Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity—January 28, 2020)(9)	10,706	8,942	8,832

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Sotera Defense Solutions, Inc.(11)

Defense Industry Intelligence Services

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity—April 21, 2017)(9)
10,082 9,891 9,326

Stardust Finance Holdings, Inc.(11)

Manufacturer of Diversified Building Products

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—March 13, 2022)(9)
12,375 12,213 12,282

Subsea Global Solutions, LLC(10)

Underwater Maintenance and Repair Services

LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)
5,533 5,484 5,410

Synagro Infrastructure Company, Inc(11)

Waste Management Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—August 22, 2020)(9)
4,714 4,650 3,830

Targus International, LLC(11)

Distributor of Protective Cases for Mobile Devices

15% PIK Secured Debt (Maturity—December 31, 2019)
1,019 1,019 1,019

Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)
2,555 2,555

3,574 3,574

TeleGuam Holdings, LLC(11)

Cable and Telecom Services Provider

LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)
7,931 7,919 7,872

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
10,500 10,425 10,420

18,344 18,292

Templar Energy LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 25, 2020)(9)
4,000 3,962 450

The Tennis Channel, Inc.(10)

Television-Based Sports Broadcasting

Warrants (114,316 equivalent shares)
235 —

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.55%, Secured Debt (Maturity—November 30, 2021)(9)	17,700	17,465	17,465

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)	11,245	11,176	10,908

Raley's(11)	Family-Owned Supermarket Chain
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)	4,160	4,093	4,197

Redbox Automated Retail, LLC(11)	Operator of Home Media Entertainment Kiosks
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—September 27, 2021)(9)	13,125	12,754	13,141

Renaissance Learning, Inc.(11)	Technology-based K-12 Learning Solutions
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity—April 11, 2022)(9)	3,000	2,979	2,999

RGL Reservoir Operations Inc.(11)(13)	Oil & Gas Equipment and Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)	3,910	3,830	1,036

RM Bidder, LLC(10)	Scripted and Unscripted TV and Digital Programming Provider
		Warrants (327,532 equivalent units)		425	—
		Member Units (2,779 units)		46	33

				471	33

SAExploration, Inc.(10)(13)	Geophysical Services Provider
		Common Stock (50 shares)		65	—

SAFETY Investment Holdings, LLC	Provider of Intelligent Driver Record Monitoring Software and Services
		Member Units (2,000,000 units)		2,000	2,000

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

The Topps Company, Inc.(11)

Trading Cards & Confectionary

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—October 2, 2018)(9)
1,955 1,944 1,921

TOMS Shoes, LLC(11)

Global Designer, Distributor, and Retailer of Casual Footwear

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—October 30, 2020)(9)
4,963 4,563 3,269

Travel Leaders Group, LLC(11)

Travel Agency Network Provider

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 7, 2020)(9)
9,479 9,409 9,443

UniRush, LLC

Provider of Prepaid Debit Card Solutions

12% Secured Debt (Maturity—February 1, 2019)
12,000 10,690 10,690

Warrants (444,725 equivalent units)
1,250 1,250

11,940 11,940

US Joiner Holding Company(11)

Marine Interior Design and Installation

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)
10,208 10,132 10,055

Valley Healthcare Group, LLC

Provider of Durable Medical Equipment

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.00%, Secured Debt (Maturity—December 29, 2020)(9)
10,400 10,301 10,301

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,526 1,526

Preferred Class A Units (14 units; 5% cumulative)(8)
333 553

Warrants (11 equivalent units)
185 167

2,044 2,246

Vision Solutions, Inc.(11)

Provider of Information Availability Software

LIBOR Plus 8.00% (Floor 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—July 23, 2017)(9)
5,000 4,989 4,625

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 9, 2021)(9)	10,812	10,554	10,379

School Specialty, Inc.(11)	Distributor of Education Supplies and Furniture
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 11, 2019)(9)	5,456	5,388	5,469

Sigma Electric Manufacturing Corporation(10)(13)	Manufacturer and Distributor of Electrical Fittings and Parts
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—October 13, 2021)(9)	12,500	12,212	12,212

SG Acquisition Inc.(11)	Finance and Insurance Services to the Automotive Industry
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—March 30, 2024)(9)	4,875	4,729	4,802

Sorenson Communications, Inc.(11)	Manufacturer of Communication Products for Hearing Impaired
		LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity—April 30, 2020)(9)	13,337	13,254	13,387
		9% Secured Debt (Maturity—October 31, 2020)	3,000	2,805	2,790

				16,059	16,177

Strike, LLC(11)	Pipeline Construction and Maintenance Services
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—November 30, 2022)(9)	10,000	9,682	10,167

Subsea Global Solutions, LLC(10)	Underwater Maintenance and Repair Services
		LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)	7,429	7,365	7,397

Synagro Infrastructure Company, Inc(11)	Waste Management Services
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.40%, Secured Debt (Maturity—August 22, 2020)(9)	4,714	4,662	4,348

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Vivid Seats LLC(11)

Provider of Online Secondary Ticket Marketplace

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 1, 2020)(9)
10,000 9,307 9,363

Western Dental Services, Inc.(11)

Dental Care Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)
4,904 4,901 4,438

Wilton Brands LLC(11)

Specialty Housewares Retailer

LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)
1,490 1,476 1,363

Worley Claims Services, LLC(10)

Insurance Adjustment Management and Services Provider

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)
6,419 6,367 6,196

YP Holdings LLC(11)

Online and Offline Advertising Operator

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—June 4, 2018)(9)
4,455 4,359 4,165

Zilliant Incorporated

Price Optimization and Margin Management Solutions

Preferred Stock (186,777 shares)
154 260

Warrants (952,500 equivalent shares)
1,071 1,190

1,225 1,450

Subtotal Non-Control/Non-Affiliate Investments (49.9% of total investments at fair value)
$ 974,053 $ 908,662

Total Portfolio Investments, March 31, 2016
$ 1,712,251 $ 1,818,071

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Targus International, LLC(11)	Distributor of Protective Cases for Mobile Devices
		15% PIK Secured Debt (Maturity—December 31, 2019)	1,182	1,182	1,182
		Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)		2,555	440

				3,737	1,622

TE Holdings, LLC(11)	Oil & Gas Exploration & Production
		Member Units (97,048 units)		970	691

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)	7,602	7,594	7,607
		LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)	10,500	10,447	10,526

				18,041	18,133

TMC Merger Sub Corp.(11)	Refractory & Maintenance Services Provider
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—October 31, 2022)(9)	14,922	14,778	14,922

TOMS Shoes, LLC(11)	Global Designer, Distributor, and Retailer of Casual Footwear
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.55%, Secured Debt (Maturity—October 30, 2020)(9)	4,900	4,573	3,315

Truck Bodies and Equipment International, Inc.(10)	Manufacturer of Dump Truck Bodies and Dump Trailers
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 31, 2021)(9)	20,564	20,201	20,564

Turning Point Brands, Inc.(10)(13)	Marketer/Distributor of Tobacco Products
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 17, 2022)(9)	8,500	8,417	8,479

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

March 31, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


TVG-I-E CMN ACQUISITION, LLC(10)	Organic Lead Generation for Online Postsecondary Schools
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 3, 2021)(9)	6,419	6,299	6,299

Tweddle Group, Inc.(11)	Provider of Technical Information Services to Automotive OEMs
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 21, 2022)(9)	8,356	8,197	8,418

US Joiner Holding Company(11)	Marine Interior Design and Installation
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)	11,484	11,411	11,427

U.S. TelePacific Corp.(10)	Provider of Communications and Managed Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.62%, Secured Debt (Maturity—February 24, 2021)(9)	7,500	7,383	7,500

VCVH Holding Corp. (Verisk)(11)	Healthcare Technology Services Focused on Revenue Maximization
		LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.40%, Secured Debt (Maturity—June 1, 2024)(9)	1,500	1,465	1,489

VIP Cinema Holdings, Inc.(11)	Supplier of Luxury Seating to the Cinema Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 1, 2023)(9)	10,000	9,951	10,118

Virtex Enterprises, LP(10)	Specialty, Full-Service Provider of Complex Electronic Manufacturing Services
		12% Secured Debt (Maturity—December 27, 2018)	1,667	1,571	1,571
		Preferred Class A Units (14 units; 5% cumulative)(8)		333	773
		Warrants (11 equivalent units)		186	351

				2,090	2,695

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Vistar Media, Inc.(10)	Operator of Digital Out-of-Home Advertising Platform
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.06%, Secured Debt (Maturity—February 16, 2022)(9)	4,500		4,089		4,089
		Warrants (64,025 equivalent shares)			331		331

					4,420		4,420

Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 10.00%, Secured Debt (Maturity—May 23, 2021)(9)	9,994		9,908		9,994

Western Dental Services, Inc.(11)	Dental Care Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)	4,904		4,903		4,891

Wilton Brands LLC(11)	Specialty Housewares Retailer
		LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)	1,147		1,142		1,120

Worley Claims Services, LLC(10)	Insurance Adjustment Management and Services Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)	6,354		6,312		6,354

YP Holdings LLC(11)	Online and Offline Advertising Operator
		LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity—June 4, 2018)(9)	14,785		14,438		14,756

Zilliant Incorporated	Price Optimization and Margin Management Solutions
		Preferred Stock (186,777 shares)			154		260
		Warrants (952,500 equivalent shares)			1,071		1,190

					1,225		1,450

Subtotal Non-Control/Non-Affiliate Investments (50.1% of total investments at fair value)				$	1,010,832	$	992,115

Total Portfolio Investments, March 31, 2017				$	1,876,476	$	1,979,378

(1): All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note B for a description of Lower Middle Market portfolio investments. All of the Company's investments, unless otherwise noted, are encumbered either as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(2): Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3): See Note C for a summary of geographic location of portfolio companies.
(4): Principal is net of repayments. Cost is net of repayments and accumulated unearned income.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2017

(dollars in thousands)

(Unaudited)

(5): Control investments are defined by the Investment Company Act of 1940, as amended ("1940 Act") as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6): Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as Control investments.
(7): Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8): Income producing through dividends or distributions.
(9): Index based floating interest rate is subject to contractual minimum interest rate. A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to either LIBOR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at March 31, 2017. As noted in this schedule, 62% (based on the par amount of the loans) of the loans contain LIBOR floors which range between 0.50% and 2.25%, with a weighted-average LIBOR floor of approximately 1.04%.
(10): Private Loan portfolio investment. See Note B for a description of Private Loan portfolio investments.
(11): Middle Market portfolio investment. See Note B for a description of Middle Market portfolio investments.
(12): Other Portfolio investment. See Note B for a description of Other Portfolio investments.
(13): Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14): Non-accrual and non-income producing investment.
(15): Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investments in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investments in this portfolio company are on non-accrual status.
(16): External Investment Manager. Investment is not encumbered as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(17): Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2016

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Marketable Securities and Idle Funds Investments

Other Marketable Securities and Idle Funds Investments(13)(15)

Investments in Marketable Securities and Diversified, Registered Bond Funds

0

0
$ 1,778 $ 1,519

Subtotal Marketable Securities and Idle Funds Investments (0.1% of total investments at fair value)
$ 1,778 $ 1,519

Total Investments, March 31, 2016
$ 1,714,029 $ 1,819,590

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Control Investments(5)

Access Media Holdings, LLC(10)	Private Cable Operator
		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,664	$	22,664	$	19,700
		Preferred Member Units (6,581,250 units; 12% cumulative)				6,475		240
		Member Units (45 units)				1		—

						29,140		19,940

Ameritech College Operations, LLC	For-Profit Nursing and Healthcare College
		10% Secured Debt (Maturity—November 30, 2019)		514		514		514
		13% Secured Debt (Maturity—November 30, 2019)		489		489		489
		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025
		Preferred Member Units (294 units)				2,291		2,291

						6,319		6,319

ASC Interests, LLC	Recreational and Educational Shooting Facility
		11% Secured Debt (Maturity—July 31, 2018)		2,100		2,084		2,100
		Member Units (1,500 units)(8)				1,500		2,680

						3,584		4,780

Bond-Coat, Inc.	Casing and Tubing Coating Services
		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,556		11,596
		Common Stock (57,508 shares)				6,350		6,660

						17,906		18,256

Café Brazil, LLC	Casual Restaurant Group
		Member Units (1,233 units)(8)				1,742		6,040

CBT Nuggets, LLC	Produces and Sells IT Training Certification Videos
		Member Units (416 units)(8)				1,300		55,480

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Clad-Rex Steel, LLC	Specialty Manufacturer of Vinyl-Clad Metal
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2018)(9)	400	396	396
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2021)(9)	14,080	13,941	13,941
		Member Units (717 units)		7,280	7,280
		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)	1,202	1,190	1,190
		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)		210	210

				23,017	23,017

CMS Minerals Investments	Oil & Gas Exploration & Production
		Preferred Member Units (CMS Minerals LLC) (458 units)(8)		2,104	3,682
		Member Units (CMS Minerals II, LLC) (100 units)(8)		3,829	3,381

				5,933	7,063

Datacom, LLC	Technology and Telecommunications Provider
		8% Secured Debt (Maturity—May 30, 2017)	900	900	900
		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)	11,713	11,651	11,049
		Class A Preferred Member Units (15% cumulative)		1,181	1,368
		Class B Preferred Member Units (6,453 units)		6,030	1,529

				19,762	14,846

Gamber-Johnson Holdings, LLC	Manufacturer of Ruggedized Computer Mounting Systems
		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)	24,080	23,846	23,846
		Member Units (8,619 units)		14,844	18,920

				38,690	42,766

Garreco, LLC	Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)	5,250	5,219	5,219
		Member Units (1,200 units)		1,200	1,150

				6,419	6,369

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


GRT Rubber Technologies LLC	Manufacturer of Engineered Rubber Products
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)	13,274	13,188	13,274
		Member Units (5,879 units)(8)		13,065	20,310

				26,253	33,584

Gulf Manufacturing, LLC	Manufacturer of Specialty Fabricated Industrial Piping Products
		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)	777	777	777
		Member Units (438 units)(8)		2,980	8,770

				3,757	9,547

Gulf Publishing Holdings, LLC	Energy Industry Focused Media and Publishing
		12.5% Secured Debt (Maturity—April 29, 2021)	10,000	9,911	9,911
		Member Units (3,124 units)		3,124	3,124

				13,035	13,035

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		Common Stock (107,456 shares)(8)		718	3,120

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
		Member Units (500 units)		589	280
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)		1,215	2,040

				1,804	2,320

HW Temps LLC	Temporary Staffing Solutions
		LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity July 2, 2020)(9)	10,576	10,500	10,500
		Preferred Member Units (3,200 units)(8)		3,942	3,940

				14,442	14,440

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)		7,095	15,640

IDX Broker, LLC	Provider of Marketing and CRM Tools for the Real Estate Industry
		12.5% Secured Debt (Maturity—November 15, 2018)	10,950	10,904	10,950
		Member Units (5,400 units)(8)		5,606	7,040

				16,510	17,990

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Indianapolis Aviation Partners, LLC	Fixed Base Operator
		15% Secured Debt (Maturity—January 15, 2017)	3,100	3,100	3,100
		Warrants (1,046 equivalent units)		1,129	2,649

				4,229	5,749

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2019)(9)	4,055	3,996	4,055
		Member Units (627 units)(8)		811	4,460

				4,807	8,515

Lamb Ventures, LLC	Aftermarket Automotive Services Chain
		11% Secured Debt (Maturity—May 31, 2018)	7,657	7,657	7,657
		Preferred Equity (non-voting)		400	400
		Member Units (742 units)(8)		5,273	5,990
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—December 31, 2041)	1,170	1,170	1,170
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	1,340

				15,125	16,557

Lighting Unlimited, LLC	Commercial and Residential Lighting Products and Design Services
		8% Secured Debt (Maturity—August 22, 2017)	1,514	1,514	1,514
		Preferred Equity (non-voting)		434	410
		Warrants (71 equivalent units)		54	—
		Member Units (700 units)		100	—

				2,102	1,924

Marine Shelters Holdings, LLC	Fabricator of Marine and Industrial Shelters
		12% PIK Secured Debt (Maturity—December 28, 2017)(14)	9,967	9,914	9,387
		Preferred Member Units (3,810 units)		5,352	—

				15,266	9,387

MH Corbin Holding LLC	Manufacturer and Distributor of Traffic Safety Products
		10% Secured Debt (Maturity—August 31, 2020)	13,300	13,197	13,197
		Preferred Member Units (4,000 shares)		6,000	6,000

				19,197	19,197

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Mid-Columbia Lumber Products, LLC	Manufacturer of Finger-Jointed Lumber Products
		10% Secured Debt (Maturity—December 18, 2017)	1,750	1,750	1,750
		12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
		Member Units (3,554 units)		1,810	2,480
		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)	836	836	836
		Member Units (Mid-Columbia Real Estate, LLC) (250 units)(8)		250	600

				8,546	9,566

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)		—	30,617

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)	9,176	9,053	9,176
		Common Stock (5,873 shares)		2,720	5,780

				11,773	14,956

NAPCO Precast, LLC	Precast Concrete Manufacturing
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)	2,713	2,693	2,713
		18% Secured Debt (Maturity—February 1, 2019)	3,952	3,922	3,952
		Member Units (2,955 units)(8)		2,975	10,920

				9,590	17,585

NRI Clinical Research, LLC	Clinical Research Service Provider
		LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)	200	200	200
		14% Secured Debt (Maturity—September 8, 2017)	4,261	4,228	4,261
		Warrants (251,723 equivalent units)		252	680
		Member Units (1,454,167 units)		765	2,462

				5,445	7,603

NRP Jones, LLC	Manufacturer of Hoses, Fittings and Assemblies
		6% Current / 6% PIK Secured Debt (Maturity—December 22, 2016)(17)	13,915	13,915	13,915
		Warrants (14,331 equivalent units)		817	130
		Member Units (50,877 units)		2,900	410

				17,632	14,455

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


OMi Holdings, Inc.	Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)(8)		1,080	13,080

Pegasus Research Group, LLC	Provider of Telemarketing and Data Services
		Member Units (460 units)(8)		1,290	8,620

PPL RVs, Inc.	Recreational Vehicle Dealer
		LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 7.93%, Secured Debt (Maturity—November 15, 2021)(9)	18,000	17,826	17,826
		Common Stock (1,962 shares)(8)		2,150	11,780

				19,976	29,606

Principle Environmental, LLC	Noise Abatement Service Provider
		12% Secured Debt (Maturity—April 30, 2017)	4,060	4,060	4,060
		12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)	3,378	3,378	3,378
		Preferred Member Units (19,631 units)		4,663	5,370
		Warrants (1,036 equivalent units)		1,200	270

				13,301	13,078

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)	7,068	7,068	7,068
		Member Units (1,000 units)		1,118	3,188

				8,186	10,256

River Aggregates, LLC	Processor of Construction Aggregates
		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750	627	627
		Member Units (1,150 units)(8)		1,150	4,600
		Member Units (RA Properties, LLC) (1,500 units)		369	2,510

				2,146	7,737

SoftTouch Medical Holdings LLC	Provider of In-Home Pediatric Durable Medical Equipment
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)	7,140	7,096	7,140
		Member Units (4,450 units)(8)		4,930	9,170

				12,026	16,310

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)	2,924		2,922		2,922
		Series A Preferred Units (2,500 units; 10% Cumulative)			2,500		—
		Warrants (1,424 equivalent units)			1,096		—
		Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)			2,300		2,300

					8,818		5,222

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	872		872		872
		Member Units (2,011 units)(8)			3,843		4,640

					4,715		5,512

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2018)	2,814		2,814		2,814
		Series A Preferred Stock (3,000,000 shares)			3,000		3,000
		Common Stock (1,126,242 shares)			3,706		—

					9,520		5,814

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)	1,000		994		994
		12% Secured Debt (Maturity—October 1, 2019)	300		300		300
		14% Secured Debt (Maturity—October 1, 2019)	2,750		2,750		2,750
		Warrants (587 equivalent units)			600		240
		Preferred Member Units (10,072 units)			2,834		4,100

					7,478		8,384

Subtotal Control Investments (29.8% of total investments at fair value)				$	439,674	$	594,282

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Affiliate Investments(6)

AFG Capital Group, LLC	Provider of Rent-to-Own Financing Solutions and Services
		Warrants (42 equivalent units)		$	259	$	670
		Member Units (186 units)(8)			1,200		2,750

					1,459		3,420

Barfly Ventures, LLC(10)	Casual Restaurant Group
		12% Secured Debt (Maturity—August 31, 2020)	5,958		5,860		5,827
		Options (2 equivalent units)			397		490
		Warrant (1 equivalent unit)			473		280

					6,730		6,597

BBB Tank Services, LLC	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—April 8, 2021)(9)	800		797		797
		15% Current Secured Debt (Maturity—April 8, 2021)	4,027		3,991		3,991
		Member Units (800,000 units)			800		800

					5,588		5,588

Boss Industries, LLC	Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		Preferred Member Units (2,242 units)(8)			2,426		2,800

Bridge Capital Solutions Corporation	Financial Services and Cash Flow Solutions Provider
		13% Secured Debt (Maturity—July 25, 2021)	7,500		5,610		5,610
		Warrants (63 equivalent shares)			2,132		3,370
		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)	1,000		991		1,000
		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)			1,000		1,000

					9,733		10,980

Buca C, LLC	Casual Restaurant Group
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)	22,671		22,504		22,671
		Preferred Member Units (6 units; 6% cumulative)(8)			3,937		4,660

					26,441		27,331

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software
		12% Secured Debt (Maturity—October 10, 2019)	3,683	3,660	3,683
		Member Units (65,356 units)(8)		654	2,480

				4,314	6,163

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
		13% Secured Debt (Maturity—March 25, 2021)	14,400	13,202	13,202
		Warrants (1,600 equivalent units)		1,200	1,200

				14,402	14,402

Chandler Signs Holdings, LLC(10)	Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)	4,500	4,461	4,500
		Class A Units (1,500,000 units)(8)		1,500	3,240

				5,961	7,740

Condit Exhibits, LLC	Tradeshow Exhibits / Custom Displays Provider
		Member Units (3,936 units)(8)		100	1,840

Congruent Credit Opportunities Funds(12)(13)	Investment Partnership
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)		5,730	1,518
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)		15,754	16,181

				21,484	17,699

Daseke, Inc.	Specialty Transportation Provider
		12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)	21,799	21,632	21,799
		Common Stock (19,467 shares)		5,213	24,063

				26,845	45,862

Dos Rios Partners(12)(13)	Investment Partnership
		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)		5,996	4,925
		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)		1,904	1,444

				7,900	6,369

Dos Rios Stone Products LLC(10)	Limestone and Sandstone Dimension Cut Stone Mining Quarries
		Class A Units (2,000,000 units)(8)		2,000	2,070

East Teak Fine Hardwoods, Inc.	Distributor of Hardwood Products
		Common Stock (6,250 shares)(8)		480	860

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)	9,699	9,591	8,630
		Warrants (2,510,790 equivalent units)		50	—

				9,641	8,630

EIG Fund Investments(12)(13)	Investment Partnership
		LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 11.1%)(8)		2,804	2,804

EIG Traverse Co-Investment, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 22.2%)(8)		9,805	9,905

Freeport Financial Funds(12)(13)	Investment Partnership
		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)		5,974	5,620
		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)		4,763	4,763

				10,737	10,383

Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Collection of Healthcare and other Business Receivables
		10% Current Secured Debt (Maturity—January 1, 2019)	13,046	13,046	11,079
		Warrants (29,025 equivalent units)		400	—

				13,446	11,079

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		12% Secured Debt (Maturity—October 18, 2018)	9,000	8,949	3,997
		Common Stock (7,711,517 shares)		3,958	2,080

				12,907	6,077

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company
		9% Current / 4% PIK Secured Debt (Maturity—August 13, 2019)	10,708	10,594	10,594
		Preferred Stock (404,998 shares)		1,140	1,140
		Common Stock (212,033 shares)		2,983	80

				14,717	11,814

Hawk Ridge Systems, LLC(13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—December 2, 2021)	10,000	9,901	9,901
		Preferred Member Units (226 units)(8)		2,850	2,850
		Preferred Member Units (HRS Services, ULC) (226 units)		150	150

				12,901	12,901

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (265,756 units)		1,429	4,000

I-45 SLF LLC(12)(13)	Investment Partnership
		Member units (Fully diluted 20.0%; 24.4% profits interest)(8)		14,200	14,586

Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2017)	5,100	5,079	5,079
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,339	2,677
		Warrants (31,928 equivalent units)		459	—
		Member Units (14,732 units)		1	—

				7,878	7,756

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
		10% Secured Debt (Maturity—September 28, 2017)	1,250	1,250	1,250
		12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,889	5,889
		Member Units (250 units)		341	2,780

				7,480	9,919

L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)		2,019	1,380

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)	4,519	4,519	4,519
		Preferred Stock (912 shares; 7% cumulative)		1,981	—
		Warrants (5,333 equivalent shares)		1,919	—

				8,419	4,519

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services
		10% Unsecured Debt (Maturity—April 8, 2018)	473	473	473
		Common Stock (20,766,317 shares)		1,371	1,600

				1,844	2,073

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)	13,000	12,898	13,000
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)		3,379	5,370

				16,277	18,370

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)	Provider of Rigsite Accommodation Unit Rentals and Related Services
		12% Secured Debt (Maturity—January 8, 2018)(14)(15)	30,785		30,281		250
		Preferred Member Units (250 units)			2,500		—

					32,781		250

Tin Roof Acquisition Company	Casual Restaurant Group
		12% Secured Debt (Maturity—November 13, 2018)	13,511		13,385		13,385
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)			2,738		2,738

					16,123		16,123

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)	5,021		5,010		5,021
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)	824		824		824
		15% PIK Unsecured Debt (Maturity—July 13, 2019)	745		745		745
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)			5,814		6,410
		Common Stock (705,054 shares)			—		3,010

					12,393		16,010

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)			717		720
		Member Units (UWS Investments, LLC) (4,000,000 units)			4,000		610

					4,717		1,330

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.12%, Secured Debt (Maturity—December 29, 2020)(9)	12,956		12,844		12,844
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)			1,600		1,600

					14,444		14,444

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)	17,500		15,298		15,298
		Preferred Member Units (4,876,670 units)			14,000		14,000
		Warrants (1,831,355 equivalent units)			2,576		2,576

					31,874		31,874

Subtotal Affiliate Investments (18.8% of total investments at fair value)				$	394,699	$	375,948

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Non-Control/Non-Affiliate Investments(7)

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 3, 2020)(9)	$	7,662	$	7,544	$	7,662

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity—November 2, 2020)		14,250		13,906		14,303

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)		14,795		14,706		14,809

American Scaffold Holdings, Inc.(10)	Marine Scaffolding Service Provider
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—March 31, 2022)(9)		7,359		7,258		7,323

American Seafoods Group, LLC(11)	Catcher and Processor of Alaskan Pollock
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)		9,634		9,624		9,634

American Teleconferencing Services, Ltd.(11)	Provider of Audio Conferencing and Video Collaboration Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 8, 2021)(9)		11,163		10,345		10,933
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 6, 2022)(9)		3,714		3,569		3,569

						13,914		14,502

Anchor Hocking, LLC(11)	Household Products Manufacturer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)		2,277		2,277		2,231
		Member Units (440,620 units)				4,928		3,305

						7,205		5,536

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


AP Gaming I, LLC(10)	Developer, Manufacturer, and Operator of Gaming Machines
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)	7,209	7,099	7,194

Apex Linen Service, Inc.	Industrial Launderers
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)	2,400	2,400	2,400
		13% Secured Debt (Maturity—October 30, 2022)	14,416	14,337	14,337

				16,737	16,737

Applied Products, Inc.(10)	Adhesives Distributor
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)	3,527	3,499	3,518

Arcus Hunting LLC.(10)	Manufacturer of Bowhunting and Archery Products and Accessories
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)	13,947	13,796	13,947

Artel, LLC(11)	Provider of Secure Satellite Network and IT Solutions
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)	7,050	6,920	6,592

ATI Investment Sub, Inc.(11)	Manufacturer of Solar Tracking Systems
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 22, 2021)(9)	9,500	9,322	9,476

ATS Workholding, Inc.(10)	Manufacturer of Machine Cutting Tools and Accessories
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—March 10, 2019)(9)	6,173	6,146	5,924

ATX Networks Corp.(11)(13)	Provider of Radio Frequency Management Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 11, 2021)(9)	11,790	11,604	11,584

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Berry Aviation, Inc.(10)	Airline Charter Service Operator
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)	5,627	5,588	5,627
		Common Stock (553 shares)		400	820

				5,988	6,447

Bluestem Brands, Inc.(11)	Multi-Channel Retailer of General Merchandise
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)	12,880	12,635	11,227

Brainworks Software, LLC(10)	Advertising Sales and Newspaper Circulation Software
		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.00%, Secured Debt (Maturity—July 22, 2019)(9)	6,733	6,684	6,733

Brightwood Capital Fund Investments(12)(13)	Investment Partnership
		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)		12,000	11,094
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.9%)		500	500

				12,500	11,594

Brundage-Bone Concrete Pumping, Inc.(11)	Construction Services Provider
		10.375% Secured Debt (Maturity—September 1, 2021)	3,000	2,985	3,240

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)	4,988	4,940	4,976

Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		6% Secured Debt (Maturity—August 1, 2019)	13,130	11,097	11,719

CDHA Management, LLC(10)	Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—December 5, 2021)(9)	4,491	4,415	4,415

Charlotte Russe, Inc(11)	Fast-Fashion Retailer to Young Women
		LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)	14,346	14,141	8,724

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Clarius BIGS, LLC(10)	Prints & Advertising Film Financing
		15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)	2,928	2,928	88

Compact Power Equipment, Inc.	Equipment / Tool Rental
		12% Secured Debt (Maturity—October 1, 2017)	4,100	4,095	4,100
		Series A Preferred Stock (4,298,435 shares)		1,079	4,180

				5,174	8,280

Compuware Corporation(11)	Provider of Software and Supporting Services
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—December 15, 2019)(9)	8,345	8,187	8,398

Construction Supply Investments, LLC(10)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 30, 2023)(9)	8,500	8,416	8,416
		Member Units (20,000 units)		2,000	2,000

				10,416	10,416

ContextMedia Health, LLC(11)	Provider of Healthcare Media Content
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 23, 2021)(9)	8,000	7,201	7,320

Covenant Surgical Partners, Inc.(11)	Ambulatory Surgical Centers
		8.75% Secured Debt (Maturity—August 1, 2019)	800	800	772

CRGT Inc.(11)	Provider of Custom Software Development
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 19, 2020)(9)	6,366	6,286	6,382

CST Industries Inc.(11)	Storage Tank Manufacturer
		LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)	9,102	9,084	9,102

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Darr Equipment LP(10)	Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)	21,130	20,697	20,748
		Warrants (915,734 equivalent units)		474	10

				21,171	20,758

Digital River, Inc.(11)	Provider of Outsourced e-Commerce Solutions and Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—February 12, 2021)(9)	15,184	15,086	15,317

Digital Room LLC(11)	Pure-Play e-Commerce Print Business
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 21, 2022)(9)	7,625	7,475	7,549

Drilling Info Holdings, Inc.	Information Services for the Oil and Gas Industry
		Common Stock (3,788,865 shares)		1,335	10,410

ECP-PF Holdings Group, Inc.(10)	Fitness Club Operator
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)	5,625	5,589	5,625

EnCap Energy Fund Investments(12)(13)	Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)		3,877	1,955
		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)		2,200	1,225
		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)		3,957	3,680
		LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)		3,039	3,039
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)		9,116	10,452
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)		2,513	2,461

				24,702	22,812

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)	7,000	6,857	5,274

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products and Solutions
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—April 3, 2020)(9)	12,483	12,082	10,174

GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)	3,900	3,851	3,842
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)	800	787	760

				4,638	4,602

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—August 15, 2019)(9)	634	623	634
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)	11,552	11,472	11,552

				12,095	12,186

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)	7,648	7,598	7,648

Grupo Hima San Pablo, Inc.(11)	Tertiary Care Hospitals
		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)	4,813	4,787	3,734
		13.75% Secured Debt (Maturity—July 31, 2018)	2,000	1,962	1,205

				6,749	4,939

GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 10, 2020)(9)	13,317	13,215	13,017

Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)	14,625	13,890	13,272

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Hojeij Branded Foods, LLC(10)	Multi-Airport, Multi- Concept Restaurant Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)	5,432	5,390	5,432

Hoover Group, Inc.(10)(13)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—January 28, 2021)(9)	8,546	7,963	7,963

Horizon Global Corporation(11)(13)	Auto Parts Manufacturer
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 30, 2021)(9)	9,375	9,249	9,551

Hostway Corporation(11)	Managed Services and Hosting Provider
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—December 13, 2019)(9)	10,577	10,515	10,028

Hunter Defense Technologies, Inc.(11)	Provider of Military and Commercial Shelters and Systems
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 5, 2019)(9)	9,606	9,120	8,933

Hygea Holdings, Corp.(10)	Provider of Physician Services
		LIBOR Plus 9.25%, Current Coupon 10.17%, Secured Debt (Maturity—February 24, 2019)	7,875	7,381	7,615
		Warrants (5,990,452 equivalent shares)		369	1,530

				7,750	9,145

iEnergizer Limited(11)(13)	Provider of Business Outsourcing Solutions
		LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)	9,918	9,467	9,621

Indivior Finance LLC(11)(13)	Specialty Pharmaceutical Company Treating Opioid Dependence
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)	6,750	6,455	6,809

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Industrial Container Services, LLC(10)	Steel Drum Reconditioner
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)	8,949	8,932	8,949

Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)	4,519	4,433	4,433
		Member Units (Industrial Services Investments, LLC) (900,000 units)		900	900

				5,333	5,333

Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	5,700	5,366	4,802

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,924	5,687

Intertain Group Limited(11)(13)	Business-to-Consumer Online Gaming Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)	4,426	4,364	4,465

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)	14,918	14,907	14,395

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)	9,812	9,671	9,413

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,790

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)	4,445	4,429	4,445

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—May 9, 2020)(9)	14,655	14,560	13,776

JSS Holdings, Inc.(11)	Aircraft Maintenance Program Provider
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—August 31, 2021)(9)	12,829	12,562	12,765

Kendra Scott, LLC(11)	Jewelry Retail Stores
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—July 17, 2020)(9)	5,578	5,536	5,550

Keypoint Government Solutions, Inc.(11)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)	5,459	5,443	5,431

LaMi Products, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 16, 2020)(9)	10,735	10,658	10,735

Larchmont Resources, LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, PIK Secured Debt (Maturity—August 7, 2020)(9)	2,260	2,260	2,209
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	1,193

				2,613	3,402

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	3,627

Logix Acquisition Company, LLC(10)	Competitive Local Exchange Carrier
		LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity—June 24, 2021)(9)	8,593	8,457	8,593

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		9% Unsecured Debt (Maturity—June 30, 2020)	188	188	188
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		160	160

				473	473

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)	14,403	14,326	14,403

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	15,700	15,404	15,404
		Warrants (1,437,409 equivalent units)		280	470

				15,684	15,874

Mood Media Corporation(11)(13)	Provider of Electronic Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)	14,805	14,645	14,312

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)	14,888	14,632	14,813

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—November 27, 2020)(9)	3,865	3,235	3,375

North Atlantic Trading Company, Inc.(11)	Marketer/Distributor of Tobacco Products
		LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—January 13, 2020)(9)	9,396	9,343	9,337

Novitex Intermediate, LLC(11)	Provider of Document Management Services
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—July 7, 2020)(9)	9,335	9,175	8,985

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 7, 2022)(9)	4,144	4,085	4,128

Ospemifene Royalty Sub LLC (QuatRx)(10)	Estrogen-Deficiency Drug Manufacturer and Distributor
		11.5% Secured Debt (Maturity—November 15, 2026)(14)	5,071	5,071	2,088

Pardus Oil and Gas, LLC(11)	Oil & Gas Exploration & Production
		13% PIK Secured Debt (Maturity—November 12, 2021)	1,869	1,869	1,869
		5% PIK Secured Debt (Maturity—May 13, 2022)	992	992	562
		Member Units (2,472 units)		2,472	970

				5,333	3,401

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—December 31, 2021)(9)	2,000	1,969	1,960

Parq Holdings Limited Partnership(11)(13)	Hotel & Casino Operator
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)	7,500	7,394	7,388

Permian Holdco 2, Inc.(11)	Storage Tank Manufacturer
		14% PIK Unsecured Debt (Maturity—October 15, 2021)	198	198	198
		Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)		799	799
		Common Stock (Permian Holdco 1, Inc.) (154,558 units)		—	—

				997	997

Pernix Therapeutics Holdings, Inc.(10)	Pharmaceutical Royalty
		12% Secured Debt (Maturity—August 1, 2020)	3,447	3,447	3,326

Pet Holdings ULC(11)(13)	Retailer of Pet Products and Supplies to Consumers
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 5, 2022)(9)	2,494	2,470	2,503

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Pike Corporation(11)	Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 22, 2022)(9)	14,000	13,720	14,082

Point.360(10)	Fully Integrated Provider of Digital Media Services
		Warrants (65,463 equivalent shares)		69	—
		Common Stock (163,658 shares)		273	63

				342	63

Polycom, Inc.(11)	Provider of Audio and Video Communication Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 27, 2023)(9)	12,089	11,617	12,194

PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 6, 2022)(9)	7,000	6,852	6,852

Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—January 28, 2020)(9)	9,519	7,904	7,044

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 30, 2021)(9)	16,225	15,979	15,979

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)	11,274	11,201	11,161

Raley's(11)	Family-Owned Supermarket Chain
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)	4,195	4,125	4,242

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Redbox Automated Retail, LLC(11)	Operator of Home Media Entertainment Kiosks
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—September 27, 2021)(9)	15,000	14,581	14,629

Renaissance Learning, Inc.(11)	Technology-based K-12 Learning Solutions
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)	3,000	2,978	2,987

RGL Reservoir Operations Inc.(11)(13)	Oil & Gas Equipment and Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)	3,910	3,826	880

RM Bidder, LLC(10)	Scripted and Unscripted TV and Digital Programming Provider
		Warrants (327,532 equivalent units)		425	300
		Member Units (2,779 units)		46	44

				471	344

SAExploration, Inc.(10)(13)	Geophysical Services Provider
		Common Stock (50 shares)		65	3

SAFETY Investment Holdings, LLC	Provider of Intelligent Driver Record Monitoring Software and Services
		Member Units (2,000,000 units)		2,000	2,000

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 9, 2021)(9)	10,812	10,538	10,352

School Specialty, Inc.(11)	Distributor of Education Supplies and Furniture
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 11, 2019)(9)	5,712	5,632	5,784

Sigma Electric Manufacturing Corporation(10)(13)	Manufacturer and Distributor of Electrical Fittings and Parts
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—October 13, 2021)(9)	12,500	12,200	12,200

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Sorenson Communications, Inc.(11)	Manufacturer of Communication Products for Hearing Impaired
		LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity—April 30, 2020)(9)	13,371	13,283	13,271

Strike, LLC(11)	Pipeline Construction and Maintenance Services
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—November 30, 2022)(9)	10,000	9,666	9,864

Subsea Global Solutions, LLC(10)	Underwater Maintenance and Repair Services
		LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)	5,629	5,588	5,624

Synagro Infrastructure Company, Inc(11)	Waste Management Services
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—August 22, 2020)(9)	4,714	4,659	4,136

Targus International, LLC(11)	Distributor of Protective Cases for Mobile Devices
		15% PIK Secured Debt (Maturity—December 31, 2019)	1,140	1,140	1,140
		Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)		2,555	2,260

				3,695	3,400

TE Holdings, LLC(11)	Oil & Gas Exploration & Production
		Member Units (97,048 units)		970	728

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)	7,622	7,613	7,546
		LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)	10,500	10,442	10,290

				18,055	17,836

The Topps Company, Inc.(11)	Trading Cards & Confectionary
		LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—October 2, 2020)(9)	2,218	2,208	2,226

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


TMC Merger Sub Corp.(11)	Refractory & Maintenance Services Provider
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—October 31, 2022)(9)	12,500	12,376	12,438

TOMS Shoes, LLC(11)	Global Designer, Distributor, and Retailer of Casual Footwear
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—October 30, 2020)(9)	4,913	4,567	3,635

Travel Leaders Group, LLC(11)	Travel Agency Network Provider
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 7, 2020)(9)	10,994	10,936	10,975

Truck Bodies and Equipment International, Inc.(10)	Manufacturer of Dump Truck Bodies and Dump Trailers
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 31, 2021)(9)	15,750	15,602	15,602

TVG-I-E CMN ACQUISITION, LLC(10)	Organic Lead Generation for Online Postsecondary Schools
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 3, 2021)(9)	6,459	6,334	6,334

Tweddle Group, Inc.(11)	Provider of Technical Information Services to Automotive OEMs
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 21, 2022)(9)	8,462	8,295	8,419

UniRush, LLC	Provider of Prepaid Debit Card Solutions
		12% Secured Debt (Maturity—February 1, 2019)	12,000	10,981	12,000
		Warrants (444,725 equivalent units)		1,250	1,250

				12,231	13,250

US Joiner Holding Company(11)	Marine Interior Design and Installation
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)	11,514	11,435	11,456

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


U.S. TelePacific Corp.(10)	Provider of Communications and Managed Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—February 24, 2021)(9)	7,500	7,377	7,377

VCVH Holding Corp. (Verisk)(11)	Healthcare Technology Services Focused on Revenue Maximization
		LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.25%, Secured Debt (Maturity—June 1, 2024)(9)	1,500	1,464	1,488

Virtex Enterprises, LP(10)	Specialty, Full-Service Provider of Complex Electronic Manufacturing Services
		12% Secured Debt (Maturity—December 27, 2018)	1,667	1,559	1,559
		Preferred Class A Units (14 units; 5% cumulative)(8)		333	612
		Warrants (11 equivalent units)		186	220

				2,078	2,391

Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 9.85%, Secured Debt (Maturity—May 23, 2021)(9)	10,058	9,968	10,058

Western Dental Services, Inc.(11)	Dental Care Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)	4,904	4,902	4,885

Wilton Brands LLC(11)	Specialty Housewares Retailer
		LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)	1,153	1,147	1,093

Worley Claims Services, LLC(10)	Insurance Adjustment Management and Services Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)	6,386	6,342	6,386

YP Holdings LLC(11)	Online and Offline Advertising Operator
		LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity—June 4, 2018)(9)	11,428	10,969	11,398

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2016

(dollars in thousands)

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Cost(4)		Fair Value


Zilliant Incorporated	Price Optimization and Margin Management Solutions
		Preferred Stock (186,777 shares)		154		260
		Warrants (952,500 equivalent shares)		1,071		1,190

				1,225		1,450

Subtotal Non-Control/Non-Affiliate Investments (51.4% of total investments at fair value)			$	1,037,510	$	1,026,676

Total Portfolio Investments, December 31, 2016			$	1,871,883	$	1,996,906

(1): All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note B for a description of Lower Middle Market portfolio investments. All of the Company's investments, unless otherwise noted, are encumbered either as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(2): Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3): See Note C for a summary of geographic location of portfolio companies.
(4): Principal is net of repayments. Cost is net of repayments and accumulated unearned income.
(5): Control investments are defined by the Investment Company Act of 1940, as amended ("1940 Act") as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6): Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as Control investments.
(7): Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8): Income producing through dividends or distributions.
(9): Index based floating interest rate is subject to contractual minimum interest rate. ~~Variable~~A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to either LIBOR ~~(which can include one-~~or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), ~~two-, three-~~which typically resets semi-annually, quarterly, or ~~six-month LIBOR) or Prime,~~monthly at the borrower's ~~option, which rates~~option. The borrower may also elect to have multiple interest reset ~~periodically based~~periods for each loan. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at December 31, 2016. As noted in this schedule, 64% (based on the ~~terms~~par amount of the ~~loan agreement.~~loans) of the loans contain LIBOR floors which range between 0.50% and 2.25%, with a weighted-average LIBOR floor of approximately 1.04%.
(10): Private Loan portfolio investment. See Note B for a description of Private Loan portfolio investments.
(11): Middle Market portfolio investment. See Note B for a description of Middle Market portfolio investments.
(12): Other Portfolio investment. See Note B for a description of Other Portfolio investments.
(13): Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14): Non-accrual and non-income producing investment.
(15): ~~Marketable securities and idle fund investments.~~
~~(16)~~: ~~External Investment Manager. Investment is not encumbered as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.~~
~~(17)~~: ~~Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.~~
~~(18)~~: Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investments in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investments in this portfolio company are on non-accrual status.

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Control Investments(5)

Access Media Holdings, LLC(10)

Private Cable Operator

5.00% Current / 5.00% PIK Secured Debt (Maturity—July 22, 2020)
$ 21,554 $ 21,554 $ 20,380

Preferred Member Units (4,500,000 units; 12% cumulative)
4,394 2,000

Member Units (45 units)
1 —

25,949 22,380

AmeriTech College, LLC

For-Profit Nursing and Healthcare College

10% Secured Debt (Maturity—May 15, 2016)
514 514 514

10% Secured Debt (Maturity—November 30, 2019)
489 489 489

10% Secured Debt (Maturity—January 31, 2020)
3,025 3,025 3,025

Preferred Member Units (294 units; 5%)(8)
2,291 2,291

6,319 6,319

ASC Interests, LLC

Recreational and Educational Shooting Facility

11% Secured Debt (Maturity—July 31, 2018)
2,500 2,470 2,500

Member Units (1,500 units)(8)
1,500 2,230

3,970 4,730

Bond-Coat, Inc.

Casing and Tubing Coating Services

12% Secured Debt (Maturity—December 28, 2017)
11,596 11,521 11,596

Common Stock (57,508 shares)
6,350 9,140

17,871 20,736

Café Brazil, LLC

Casual Restaurant Group

Member Units (1,233 units)(8)
1,742 7,330

CBT Nuggets, LLC

Produces and Sells IT Training Certification Videos

Member Units (416 units)(8)
1,300 42,120

CMS Minerals LLC

Oil & Gas Exploration & Production

Preferred Member Units (458 units)(8)
2,967 6,914

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Datacom, LLC

Technology and Telecommunications Provider

10.5% Secured Debt (Maturity—May 31, 2019)
11,205 11,122 10,970

Class A Preferred Member Units (15% cumulative)(8)
1,181 1,181

Class B Preferred Member Units (6,453 units)
6,030 5,079

18,333 17,230

Garreco, LLC

Manufacturer and Supplier of Dental Products

14% Secured Debt (Maturity—January 12, 2018)
5,800 5,739 5,739

Member Units (1,200 units)
1,200 1,270

6,939 7,009

GRT Rubber Technologies LLC

Manufacturer of Engineered Rubber Products

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)
16,122 15,988 15,988

Member Units (5,879 units)
13,065 15,580

29,053 31,568

Gulf Manufacturing, LLC

Manufacturer of Specialty Fabricated Industrial Piping Products

9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)
777 777 777

Member Units (438 units)(8)
2,980 13,770

3,757 14,547

Harrison Hydra-Gen, Ltd.

Manufacturer of Hydraulic Generators

9% Secured Debt (Maturity—January 8, 2016)
5,010 5,010 5,010

Preferred Stock (8% cumulative)(8)
1,361 1,361

Common Stock (107,456 shares)
718 2,600

7,089 8,971

Hawthorne Customs and Dispatch Services, LLC

Facilitator of Import Logistics, Brokerage, and Warehousing

Member Units (500 units)(8)
589 460

Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)
1,215 2,220

1,804 2,680

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

HW Temps LLC

Temporary Staffing Solutions

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity July 2, 2020)(9)
9,976 9,884 9,884

Preferred Member Units (3,200 units)(8)
3,942 3,942

13,826 13,826

Hydratec, Inc.

Designer and Installer of Micro-Irrigation Systems

Common Stock (7,095 shares)(8)
7,095 14,950

IDX Broker, LLC

Provider of Marketing and CRM Tools for the Real Estate Industry

12.5% Secured Debt (Maturity—November 15, 2018)
11,350 11,281 11,350

Member Units (5,400 units)
5,606 6,440

16,887 17,790

Indianapolis Aviation Partners, LLC

Fixed Base Operator

15% Secured Debt (Maturity—January 15, 2016)
3,100 3,095 3,100

Warrants (1,046 equivalent units)
1,129 2,540

4,224 5,640

Jensen Jewelers of Idaho, LLC

Retail Jewelry Store

Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2016)(9)
4,055 4,028 4,055

Member Units (627 units)(8)
811 4,750

4,839 8,805

Lamb's Venture, LLC

Aftermarket Automotive Services Chain

11% Secured Debt (Maturity—May 31, 2018)
7,962 7,961 7,962

Preferred Equity (non-voting)
328 328

Member Units (742 units)
5,273 4,690

9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—October 1, 2025)
919 919 919

Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)
625 1,240

15,106 15,139

Lighting Unlimited, LLC

Commercial and Residential Lighting Products and Design Services

8% Secured Debt (Maturity—August 22, 2016)
1,514 1,514 1,514

Preferred Equity (non-voting)
434 430

Warrants (71 equivalent units)
54 40

Member Units (700 units)(8)
100 350

2,102 2,334

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)

Fabricator of Marine and Industrial Shelters

12% PIK Secured Debt (Maturity—December 28, 2017)
9,053 8,967 8,870

Preferred Member Units (3,810 units)
5,352 4,881

14,319 13,751

MH Corbin Holding LLC

Manufacturer and distributor of traffic safety products

10% Secured Debt (Maturity—August 31, 2020)
14,000 13,869 13,869

Preferred Member Units (4,000 shares)
6,000 6,000

19,869 19,869

Mid-Columbia Lumber Products, LLC

Manufacturer of Finger-Jointed Lumber Products

10% Secured Debt (Maturity—December 18, 2017)
1,750 1,750 1,750

12% Secured Debt (Maturity—December 18, 2017)
3,900 3,900 3,900

Member Units (2,829 units)
1,244 2,580

9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)
881 881 881

Member Units (Mid-Columbia Real Estate, LLC) (250 units)(8)
250 550

8,025 9,661

MSC Adviser I, LLC(16)

Third Party Investment Advisory Services

Member Units (Fully diluted 100.0%)(8)
— 27,272

Mystic Logistics Holdings, LLC

Logistics and Distribution Services Provider for Large Volume Mailers

12% Secured Debt (Maturity—August 15, 2019)
9,448 9,282 9,448

Common Stock (5,873 shares)(8)
2,720 5,970

12,002 15,418

NAPCO Precast, LLC

Precast Concrete Manufacturing

Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—January 31, 2016)(9)
625 625 625

Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2016)(9)
3,380 3,379 3,380

18% Secured Debt (Maturity—February 1, 2016)
4,924 4,923 4,924

Member Units (2,955 units)(8)
2,975 8,590

11,902 17,519

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

NRI Clinical Research, LLC

Clinical Research Service Provider

14% Secured Debt (Maturity—September 8, 2017)
4,617 4,539 4,539

Warrants (251,723 equivalent units)
252 340

Member Units (1,454,167 units)
765 1,342

5,556 6,221

NRP Jones, LLC

Manufacturer of Hoses, Fittings and Assemblies

12% Secured Debt (Maturity—December 22, 2016)
13,224 12,948 12,948

Warrants (14,331 equivalent units)
817 450

Member Units (50,877 units)
2,900 1,480

16,665 14,878

OMi Holdings, Inc.

Manufacturer of Overhead Cranes

Common Stock (1,500 shares)
1,080 13,640

Pegasus Research Group, LLC (Televerde)

Provider of Telemarketing and Data Services

Member Units (460 units)(8)
1,290 6,840

PPL RVs, Inc.

Recreational Vehicle Dealer

11.1% Secured Debt (Maturity—July 1, 2016)
9,710 9,710 9,710

Common Stock (1,962 shares)
2,150 9,770

11,860 19,480

Principle Environmental, LLC

Noise Abatement Service Provider

12% Secured Debt (Maturity—April 30, 2017)
4,060 4,039 4,060

12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)
3,310 3,309 3,310

Preferred Member Units (19,631 units)(8)
4,663 6,060

Warrants (1,036 equivalent units)
1,200 310

13,211 13,740

Quality Lease Service, LLC

Provider of Rigsite Accommodation Unit Rentals and Related Services

8% PIK Secured Debt (Maturity—June 8, 2020)
6,538 6,538 6,538

Member Units (1,000 units)
568 2,638

7,106 9,176

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

River Aggregates, LLC

Processor of Construction Aggregates

Zero Coupon Secured Debt (Maturity—June 30, 2018)
750 556 556

Member Units (1,150 units)(8)
1,150 3,830

Member Units (RA Properties, LLC) (1,500 units)
369 2,360

2,075 6,746

SoftTouch Medical Holdings LLC

Home Provider of Pediatric Durable Medical Equipment

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)
8,075 8,010 8,010

Member Units (4,450 units)(8)
4,930 5,710

12,940 13,720

Southern RV, LLC

Recreational Vehicle Dealer

13% Secured Debt (Maturity—August 8, 2018)
11,400 11,296 11,400

Member Units (1,680 units)(8)
1,680 15,100

13% Secured Debt (Southern RV Real Estate, LLC) (Maturity—August 8, 2018)
3,250 3,220 3,250

Member Units (Southern RV Real Estate, LLC) (480 units)
480 1,200

16,676 30,950

The MPI Group, LLC

Manufacturer of Custom Hollow Metal Doors, Frames and Accessories

9% Secured Debt (Maturity—October 2, 2018)
2,924 2,921 2,921

Series A Preferred Units (2,500 units; 10% Cumulative)
2,500 690

Warrants (1,424 equivalent units)
1,096 —

Member Units (MPI Real Estate Holdings, LLC) (100% Fully diluted)(8)
2,300 2,230

8,817 5,841

Travis Acquisition LLC

Manufacturer of Aluminum Trailers

12% Secured Debt (Maturity—August 30, 2018)
3,513 3,471 3,513

Member Units (7,282 units)
7,100 14,480

10,571 17,993

Uvalco Supply, LLC

Farm and Ranch Supply Store

9% Secured Debt (Maturity—January 1, 2019)
1,314 1,314 1,314

Member Units (2,011 units)(8)
3,843 5,460

5,157 6,774

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Vision Interests, Inc.

Manufacturer / Installer of Commercial Signage

13% Secured Debt (Maturity—December 23, 2016)
3,071 3,052 3,052

Series A Preferred Stock (3,000,000 shares)
3,000 3,550

Common Stock (1,126,242 shares)
3,706 210

9,758 6,812

Ziegler's NYPD, LLC

Casual Restaurant Group

6.5% Secured Debt (Maturity—October 1, 2019)
1,000 992 992

12% Secured Debt (Maturity—October 1, 2019)
500 500 500

14% Secured Debt (Maturity—October 1, 2019)
2,750 2,750 2,750

Warrants (587 equivalent units)
600 50

Preferred Member Units (10,072 units)
2,834 3,400

7,676 7,692

Subtotal Control Investments (30.8% of total investments at fair value)
$ 387,727 $ 555,011

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Affiliate Investments(6)

AFG Capital Group, LLC

Provider of Rent-to-Own Financing Solutions and Services

11% Secured Debt (Maturity—November 7, 2019)
$ 12,960 $ 12,611 $ 12,790

Warrants (42 equivalent units)
259 490

Member Units (186 units)
1,200 2,020

14,070 15,300

Boss Industries, LLC

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

Preferred Member Units (2,242 units)(8)
2,246 2,586

Bridge Capital Solutions Corporation

Financial Services and Cash Flow Solutions Provider

13% Secured Debt (Maturity—April 18, 2017)
7,000 6,890 6,890

Warrants (22 equivalent shares)
200 1,300

7,090 8,190

Buca C, LLC

Casual Restaurant Group

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)
25,530 25,299 25,299

Preferred Member Units (6 units; 6% cumulative)(8)
3,711 3,711

29,010 29,010

CAI Software LLC

Provider of Specialized Enterprise Resource Planning Software

12% Secured Debt (Maturity—October 10, 2019)
4,661 4,624 4,661

Member Units (65,356 units)
654 1,000

5,278 5,661

Condit Exhibits, LLC

Tradeshow Exhibits /Custom Displays Provider

Member Units (3,936 units)(8)
100 1,010

Congruent Credit Opportunities Funds(12)(13)

Investment Partnership

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)
6,612 2,834

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)
12,020 12,024

18,632 14,858

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Daseke, Inc.

Specialty Transportation Provider

12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)
21,253 21,003 21,253

Common Stock (19,467 shares)
5,213 22,660

26,216 43,913

Dos Rios Partners(12)(13)

Investment Partnership

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)
3,104 2,031

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)
986 648

4,090 2,679

East Teak Fine Hardwoods, Inc.

Distributor of Hardwood Products

Common Stock (6,250 shares)(8)
480 860

East West Copolymer & Rubber, LLC

Manufacturer of Synthetic Rubbers

12% Secured Debt (Maturity—October 17, 2019)
9,600 9,463 9,463

Warrants (2,510,790 equivalent units)
50 50

9,513 9,513

EIG Traverse Co-Investment, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 6.6%)(8)
4,755 4,755

Freeport Financial Funds(12)(13)

Investment Partnership

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.9%)(8)
5,974 6,045

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.4%)
2,077 2,077

8,051 8,122

Gault Financial, LLC (RMB Capital, LLC)

Purchases and Manages Liquidation of Distressed Assets

10% Secured Debt (Maturity—November 21, 2016)
13,046 12,896 10,930

Warrants (29,025 equivalent units)
400 —

13,296 10,930

Glowpoint, Inc.

Provider of Cloud Managed Video Collaboration Services

8% Secured Debt (Maturity—October 18, 2018)
400 397 397

12% Secured Debt (Maturity—October 18, 2018)
9,000 8,929 8,929

Common Stock (7,711,517 shares)
3,958 3,840

13,284 13,166

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Guerdon Modular Holdings, Inc.

Multi-Family and Commercial Modular Construction Company

13% Secured Debt (Maturity—August 13, 2019)
10,400 10,280 10,280

Common Stock (170,577 shares)
2,983 1,990

13,263 12,270

Houston Plating and Coatings, LLC

Provider of Plating and Industrial Coating Services

Member Units (248,082 units)(8)
996 8,440

I-45 SLF LLC(12)(13)

Investment Partnership

Member units (Fully diluted 20.0%; 24.4% profits interest)
7,200 7,200

Indianhead Pipeline Services, LLC

Provider of Pipeline Support Services

12% Secured Debt (Maturity—February 6, 2017)
6,000 5,853 5,853

Preferred Member Units (33,819 units; 8% cumulative)
2,302 2,302

Warrants (31,928 equivalent units)
459 —

Member Units (14,732 units)
1 —

8,615 8,155

KBK Industries, LLC

Manufacturer of Specialty Oilfield and Industrial Products

12.5% Secured Debt (Maturity—September 28, 2017)
5,900 5,875 5,900

Member Units (250 units)(8)
341 3,680

6,216 9,580

L.F. Manufacturing Holdings, LLC(10)

Manufacturer of Fiberglass Products

Member Units (2,179,001 units)(8)
2,019 1,485

MPS Denver, LLC

Specialty Card Printing

Member Units (13,800 units)
1,130 1,130
��
OnAsset Intelligence, Inc.

Provider of Transportation Monitoring / Tracking Products and Services

12% PIK Secured Debt (Maturity—December 31, 2015)(17)
4,006 4,006 4,006

Preferred Stock (912 shares; 7% cumulative)(8)
1,981 1,380

Warrants (5,333 equivalent shares)
1,919 —

7,906 5,386

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

OPI International Ltd.(13)

Provider of Man Camp and Industrial Storage Services

10% Unsecured Debt (Maturity—April 8, 2018)
473 473 473

Common Stock (20,766,317 shares)
1,371 3,200

1,844 3,673

PCI Holding Company, Inc.

Manufacturer of Industrial Gas Generating Systems

Preferred Stock (1,500,000 shares; 20% cumulative)(8)
2,762 4,887

Radial Drilling Services Inc.

Oil and Gas Lateral Drilling Technology Provider

12% Secured Debt (Maturity—November 22, 2016)(14)
4,200 3,941 1,500

Warrants (316 equivalent shares)
758 —

4,699 1,500

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)

Provider of Rigsite Accommodation Unit Rentals and Related Services

12% Secured Debt (Maturity—January 8, 2018)(14)(18)
30,785 30,281 250

Preferred Member Units (250 units)
2,500 —

32,781 250

Samba Holdings, Inc.

Provider of Intelligent Driver Record Monitoring Software and Services

12.5% Secured Debt (Maturity—November 17, 2016)
24,662 24,553 24,662

Common Stock (170,963 shares)
2,087 30,220

26,640 54,882

Tin Roof Acquisition Company

Casual Restaurant Group

12% Secured Debt (Maturity—November 13, 2018)
13,994 13,807 13,807

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)
2,477 2,477

16,284 16,284

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

UniTek Global Services, Inc.(11)

Provider of Outsourced Infrastructure Services

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)
2,826 2,826 2,812

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50% / 1.00% PIK, Current Coupon Plus PIK 10.50%, Secured Debt (Maturity—January 13, 2019)(9)
1,261 1,261 1,255

15% PIK Unsecured Debt (Maturity—July 13, 2019)
641 641 638

Preferred Stock (4,935,377 shares)
4,935 5,540

Common Stock (705,054 shares)
— —

9,663 10,245

Universal Wellhead Services Holdings, LLC(10)

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

Class A Preferred Units (4,000,000 units; 4.5% cumulative)(8)
4,000 3,000

Volusion, LLC

Provider of Online Software-as-a-Service eCommerce Solutions

10.5% Secured Debt (Maturity—January 26, 2020)
17,500 16,199 16,199

Preferred Member Units (4,876,670 units)
14,000 14,000

Warrants (950,618 equivalent units)
1,400 1,400

31,599 31,599

Subtotal Affiliate Investments (19.4% of total investments at fair value)
$ 333,728 $ 350,519

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Non-Control/Non-Affiliate Investments(7)

AccuMED, Corp.(10)

Medical Device Contract Manufacturer

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)
$ 9,750 $ 9,648 $ 9,648

Adams Publishing Group, LLC(10)

Local Newspaper Operator

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)
9,506 9,329 9,328

Ahead, LLC(10)

IT Infrastructure Value Added Reseller

LIBOR Plus 6.50%, Current Coupon 6.76%, Secured Debt (Maturity—November 2, 2020)
15,000 14,562 14,625

Allflex Holdings III Inc.(11)

Manufacturer of Livestock Identification Products

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)
10,150 10,080 10,008

AM General LLC(11)

Specialty Vehicle Manufacturer

LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)
2,256 2,221 1,867

AM3 Pinnacle Corporation(10)

Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties

Common Stock (60,240 shares)
2,000 —

American Seafoods Group, LLC(11)

Catcher-Processor of Alaskan Pollock

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)
9,975 9,963 9,892

AMF Bowling Centers, Inc.(11)

Bowling Alley Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)
7,907 7,802 7,835

Anchor Hocking, LLC(11)

Household Products Manufacturer

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)
2,306 2,306 2,179

Member Units (440,620 units)
4,928 3,250

7,234 5,429

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

AP Gaming I, LLC(10)

Developer, Manufacturer, and Operator of Gaming Machines

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)
11,314 11,108 10,946

Apex Linen Service, Inc.

Industrial Launderers

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)
1,600 1,600 1,600

13% Secured Debt (Maturity—October 30, 2022)
12,000 11,926 11,926

13,526 13,526

Applied Products, Inc.(10)

Adhesives Distributor

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)
5,813 5,759 5,683

Arcus Hunting LLC.(10)

Manufacturer of Bowhunting and Archery Products and Accessories

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)
9,540 9,429 9,429

Artel, LLC(11)

Provider of Secure Satellite Network and IT Solutions

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)
7,854 7,585 6,716

ATS Workholding, Inc.(10)

Manufacturer of Machine Cutting Tools and Accessories

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 10, 2019)(9)
6,492 6,452 6,230

ATX Networks Corp.(11)(13)

Provider of Radio Frequency Management Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 14, 2021)(9)
14,925 14,647 14,701

Barfly Ventures, LLC(10)

Casual Restaurant Group

12% Secured Debt (Maturity—August 31, 2020)
4,121 4,042 4,042

Warrant (1 equivalent unit)
473 473

4,515 4,515

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Berry Aviation, Inc.(10)

Airline Charter Service Operator

12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)
5,627 5,578 5,578

Common Stock (553 shares)
400 400

5,978 5,978

Bioventus LLC(10)

Production of Orthopedic Healing Products

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—April 10, 2020)(9)
5,000 4,917 4,925

Blackbrush Oil and Gas LP(11)

Oil & Gas Exploration

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 30, 2021)(9)
4,000 3,975 3,230

Blackhawk Specialty Tools LLC(11)

Oilfield Equipment & Services

LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity—August 1, 2019)(9)
5,892 5,866 5,450

Blue Bird Body Company(11)

School Bus Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—June 26, 2020)(9)
4,702 4,646 4,669

Bluestem Brands, Inc.(11)(13)

Multi-Channel Retailer of General Merchandise

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)
13,632 13,358 12,780

Brainworks Software, LLC(10)

Advertising Sales and Newspaper Circulation Software

Prime Plus 7.25% (Floor 3.25%), Current Coupon 10.75%, Secured Debt (Maturity—July 22, 2019)(9)
626 620 620

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—July 22, 2019)(9)
6,185 6,126 6,012

6,746 6,632

Brightwood Capital Fund III, LP(12)(13)

Investment Partnership

LP Interests (Fully diluted 1.6%)(8)
11,250 11,125

Brundage-Bone Concrete Pumping, Inc.(11)

Construction Services Provider

10.375% Secured Debt (Maturity—September 1, 2021)
2,500 2,500 2,438

Calloway Laboratories, Inc.(10)

Health Care Testing Facilities

17% PIK Secured Debt (Maturity—September 30, 2016)(14)
7,324 7,275 —

Warrants (125,000 equivalent shares)
17 —

7,292 —

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Cengage Learning Acquisitions, Inc.(11)

Provider of Educational Print and Digital Services

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 31, 2020)(9)
9,720 9,672 9,502

Cenveo Corporation(11)

Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products

6% Secured Debt (Maturity—August 1, 2019)
5,230 4,544 3,687

CGSC of Delaware Holdings Corp.(11)(13)

Insurance Brokerage Firm

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—October 16, 2020)(9)
2,000 1,979 1,900

Charlotte Russe, Inc(11)

Fast-Fashion Retailer to Young Women

LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)
14,346 14,065 10,031

Clarius ASIG, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—September 14, 2014)(17)
620 620 620

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
3,386 3,386 563

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,090 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 2,930

5,169 7,030

Compuware Corporation(11)

Provider of Software and Supporting Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—December 15, 2019)(9)
14,751 14,395 13,998

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
800 800 780

CRGT Inc.(11)

Provider of Custom Software Development

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 19, 2020)(9)
10,168 10,009 10,118

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

CST Industries Inc.(11)

Storage Tank Manufacturer

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)
8,227 8,197 8,145

Darr Equipment LP(10)

Heavy Equipment Dealer

11.75% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)
20,706 20,178 19,688

Warrants (915,734 equivalent units)
474 410

20,652 20,098

Digital River, Inc.(11)

Provider of Outsourced e-Commerce Solutions and Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—February 12, 2021)(9)
8,667 8,588 8,580

Digity Media LLC(11)

Radio Station Operator

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—February 8, 2019)(9)
6,588 6,539 6,506

Drilling Info Holdings, Inc.

Information Services for the Oil and Gas Industry

Common Stock (3,788,865 shares)
1,335 9,920

ECP-PF Holdings Group, Inc.(10)

Fitness Club Operator

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)
5,625 5,579 5,492

EIG Fund Investments(12)(13)

Investment Partnership

LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 0.5%)
718 718

EnCap Energy Fund Investments(12)(13)

Investment Partnership

LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)
3,762 2,765

LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)
2,194 1,056

LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)
3,075 3,826

LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)
692 692

LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)
7,350 10,738

LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)
464 892

17,537 19,969

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Energy and Exploration Partners, LLC(11)

Oil & Gas Exploration & Production

8.75% Secured Debt (Maturity—January 23, 2016)(14)
221 221 221

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—January 22, 2019)(9)(14)
9,390 9,048 2,371

9,269 2,592

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)

Technology-based Performance Support Solutions

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)
7,000 6,838 4,673

Extreme Reach, Inc.(11)

Integrated TV and Video Advertising Platform

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—February 7, 2020)(9)
8,875 8,866 8,731

Flavors Holdings Inc.(11)

Global Provider of Flavoring and Sweetening Products and Solutions

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—April 3, 2020)(9)
11,333 11,004 10,086

Fram Group Holdings, Inc.(11)

Manufacturer of Automotive Maintenance Products

LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)
9,652 9,547 7,275

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)
700 699 350

10,246 7,625

GI KBS Merger Sub LLC(11)

Outsourced Janitorial Services to Retail/Grocery Customers

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)
3,960 3,901 3,742

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)
800 786 792

4,687 4,534

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Grace Hill, LLC(10)

Online Training Tools for the Multi-Family Housing Industry

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)
9,450 9,361 9,450

Great Circle Family Foods, LLC(10)

Quick Service Restaurant Franchise

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)
7,849 7,783 7,783

Grupo Hima San Pablo, Inc.(11)

Tertiary Care Hospitals

LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)
4,863 4,816 4,668

13.75% Secured Debt (Maturity—July 31, 2018)
2,000 1,942 1,860

6,758 6,528

GST Autoleather, Inc.(11)

Automotive Leather Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 10, 2020)(9)
9,875 9,797 9,529

Guitar Center, Inc.(11)

Musical Instruments Retailer

6.5% Secured Debt (Maturity—April 15, 2019)
11,000 10,442 9,240

Halcon Resources Corporation(11)

Oil & Gas Exploration & Production

9.75% Unsecured Debt (Maturity—July 15, 2020)
6,925 6,382 2,008

Hojeij Branded Foods, LLC(10)

Multi-Airport, Multi-Concept Restaurant Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)
5,344 5,294 5,294

Horizon Global Corporation(11)

Auto Parts Manufacturer

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 30, 2021)(9)
9,750 9,568 9,677

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—December 13, 2019)(9)
11,179 11,105 11,067

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Hunter Defense Technologies, Inc.(11)

Provider of Military and Commercial Shelters and Systems

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—August 5, 2019)(9)
6,414 6,366 6,350

ICON Health & Fitness, Inc.(11)

Producer of Fitness Products

11.875% Secured Debt (Maturity—October 15, 2016)
6,956 6,907 6,608

iEnergizer Limited(11)(13)

Provider of Business Outsourcing Solutions

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)
8,110 8,030 7,502

Indivior Finance LLC(11)(13)

Specialty Pharmaceutical Company Treating Opioid Dependence

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)
7,125 6,759 6,697

Industrial Container Services, LLC(10)

Steel Drum Reconditioner

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)
5,000 5,000 5,000

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
4,000 4,000 3,440

Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
3,851 3,708 3,562

Insurance Technologies, LLC(10)

Illustration and Sales-automation Platforms

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—December 1, 2019)(9)
4,804 4,759 4,759

Intertain Group Limited(11)(13)

Business-to-Consumer Online Gaming Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)
9,938 9,782 9,883

iPayment, Inc.(11)

Provider of Merchant Acquisition

LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)
15,026 14,986 14,446

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

iQor US Inc.(11)

Business Process Outsourcing Services Provider

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)
9,887 9,718 7,942

irth Solutions, LLC

Provider of Damage Prevention Information Technology Services

Member Units (27,893 units)
1,441 1,441

Jackmont Hospitality, Inc.(10)

Franchisee of Casual Dining Restaurants

LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)
4,357 4,337 4,188

Joerns Healthcare, LLC(11)

Manufacturer and Distributor of Health Care Equipment & Supplies

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—May 9, 2020)(9)
14,805 14,711 14,703

JSS Holdings, Inc.(11)

Aircraft Maintenance Program Provider

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—August 31, 2021)(9)
14,566 14,230 13,765

Kendra Scott, LLC(11)

Jewelry Retail Stores

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—July 17, 2020)(9)
5,875 5,821 5,831

Keypoint Government Solutions, Inc.(11)

Provider of Pre-Employment Screening Services

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)
6,303 6,268 6,271

LaMi Products, LLC(10)

General Merchandise Distribution

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 16, 2020)(9)
4,729 4,699 4,699

Lansing Trade Group LLC(11)

Commodity Merchandiser

9.25% Unsecured Debt (Maturity—February 15, 2019)
6,000 6,000 5,625

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—August 7, 2019)(9)
7,807 7,508 5,543

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Leadrock Properties, LLC

Real Estate Investment

10% Secured Debt (Maturity—May 4, 2026)
1,440 1,416 1,416

Legendary Pictures Funding, LLC(10)

Producer of TV, Film, and Comic Content

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)
7,500 7,372 7,425

LKCM Headwater Investments I, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 4,875

Looking Glass Investments, LLC(12)(13)

Specialty Consumer Finance

9% Unsecured Debt (Maturity—June 30, 2020)
188 188 188

Member Units (2.5 units)
125 125

Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)
188 188

501 501

MediMedia USA, Inc.(11)

Provider of Healthcare Media and Marketing

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)
7,772 7,714 7,422

Messenger, LLC(10)

Supplier of Specialty Stationery and Related Products to the Funeral Industry

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)
15,583 15,483 15,583

Milk Specialties Company(11)

Processor of Nutrition Products

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)
792 789 792

Minute Key, Inc.

Operator of Automated Key Duplication Kiosks

10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)
14,186 13,817 13,817

Warrants (1,437,409 equivalent units)
280 280

14,097 14,097

Miramax Film NY, LLC(11)

Motion Picture Producer and Distributor

Member Units (500,000 units)(8)
864 864

Mood Media Corporation(11)(13)

Provider of Electronic Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)
14,957 14,827 14,266

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

New Media Holdings II LLC(11)(13)

Local Newspaper Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)
9,788 9,635 9,703

North American Lifting Holdings, Inc.(11)

Crane Service Provider

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—November 27, 2020)(9)
997 835 733

North Atlantic Trading Company, Inc.(11)

Marketer/Distributor of Tobacco Products

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—January 13, 2020)(9)
9,676 9,607 9,603

Novitex Intermediate, LLC(11)

Provider of Document Management Services

LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity—July 7, 2020)(9)
8,692 8,532 8,192

Ospemifene Royalty Sub LLC (QuatRx)(10)

Estrogen-Deficiency Drug Manufacturer and Distributor

11.5% Secured Debt (Maturity—November 15, 2026)
5,071 5,071 3,780

Panolam Industries International, Inc.(11)

Decorative Laminate Manufacturer

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—August 23, 2017)(9)
9,472 9,429 9,424

Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,965 1,960

Parq Holdings Limited Partnership(11)(13)

Hotel & Casino Operator

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)
7,500 7,369 7,200

Permian Holdings, Inc.(11)

Storage Tank Manufacturer

10.5% Secured Debt (Maturity—January 15, 2018)
2,755 2,738 1,047

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,818 3,818 3,777

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Pike Corporation(11)

Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 22, 2022)(9)
15,000 14,663 14,712

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 9

Common Stock (163,658 shares)
273 144

342 153

Prowler Acquisition Corp.(11)

Specialty Distributor to the Energy Sector

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—January 28, 2020)(9)
4,411 3,734 3,749

PT Network, LLC(10)

Provider of Outpatient Physical Therapy and Sports Medicine Services

LIBOR Plus 7.75% (Floor 1.50%), Current Coupon 9.25%, Secured Debt (Maturity—November 1, 2018)(9)
12,047 11,954 11,771

QBS Parent, Inc.(11)

Provider of Software and Services to the Oil & Gas Industry

LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)
11,389 11,303 11,332

Raley's(11)

Family-owned supermarket chain in California

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)
5,094 4,999 5,069

RCHP, Inc.(11)

Regional Non-Urban Hospital Owner/Operator

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 23, 2019)(9)
5,448 5,426 5,448

LIBOR Plus 10.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity—October 23, 2019)(9)
4,000 3,954 3,953

9,380 9,401

Renaissance Learning, Inc.(11)

Technology-based K-12 Learning Solutions

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)
3,000 2,975 2,835

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

RGL Reservoir Operations Inc.(11)(13)

Oil & Gas Equipment and Services

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)
3,950 3,851 1,534

RLJ Entertainment, Inc.(10)

Movie and TV Programming Licensee and Distributor

LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.16%, Secured Debt (Maturity—September 11, 2019)(9)
9,354 9,353 9,203

RM Bidder, LLC(10)

Acquisition Vehicle

Warrants (327,532 equivalent units)
425 363

Member Units (2,779 units)
46 45

471 408

SAExploration, Inc.(10)(13)

Geophysical Services Provider

Common Stock (6,472 shares)
65 27

Sage Automotive Interiors, Inc(11)

Automotive Textiles Manufacturer

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 8, 2021)(9)
3,000 2,974 2,970

Salient Partners L.P.(11)

Provider of Asset Management Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—June 9, 2021)(9)
7,388 7,251 7,240

Sotera Defense Solutions, Inc.(11)

Defense Industry Intelligence Services

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity—April 21, 2017)(9)
10,119 9,886 9,360

Stardust Finance Holdings, Inc.(11)

Manufacturer of Diversified Building Products

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—March 13, 2022)(9)
12,406 12,239 12,065

Subsea Global Solutions, LLC(10)

Underwater Maintenance and Repair Services

LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)
4,887 4,836 4,762

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Synagro Infrastructure Company, Inc(11)

Waste Management Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—August 22, 2020)(9)
4,714 4,647 4,124

Targus Group International(11)

Distributor of Protective Cases for Mobile Devices

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00% / 1.00% PIK, Current Coupon Plus PIK 12.00%, Secured Debt (Maturity—May 24, 2016)(9)(14)
4,258 4,263 3,119

TeleGuam Holdings, LLC(11)

Cable and Telecom Services Provider

LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)
7,975 7,961 7,935

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
2,500 2,484 2,487

10,445 10,422

Templar Energy LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 25, 2020)(9)
4,000 3,962 485

The Tennis Channel, Inc.(10)

Television-Based Sports Broadcasting

Warrants (114,316 equivalent shares)
235 301

The Topps Company, Inc.(11)

Trading Cards & Confectionary

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—October 2, 2018)(9)
1,960 1,948 1,923

TOMS Shoes, LLC(11)

Global Designer, Distributor, and Retailer of Casual Footwear

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—October 30, 2020)(9)
4,963 4,545 3,387

Travel Leaders Group, LLC(11)

Travel Agency Network Provider

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 7, 2020)(9)
8,700 8,638 8,613

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

US Joiner Holding Company(11)

Marine Interior Design and Installation

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)
7,369 7,341 7,295

Valley Healthcare Group, LLC

Provider of Durable Medical Equipment

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.00%, Secured Debt (Maturity—December 29, 2020)(9)
10,400 10,297 10,297

Vantage Oncology, LLC(11)

Outpatient Radiation Oncology Treatment Centers

9.5% Secured Debt (Maturity—June 15, 2017)
12,050 11,938 10,182

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,516 1,516

Preferred Class A Units (14 units; 5% cumulative)(8)
333 512

Warrants (11 equivalent units)
186 135

2,035 2,163

Vision Solutions, Inc.(11)

Provider of Information Availability Software

LIBOR Plus 8.00% (Floor 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—July 23, 2017)(9)
5,000 4,987 4,750

Western Dental Services, Inc.(11)

Dental Care Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)
4,904 4,901 4,303

Wilton Brands LLC(11)

Specialty Housewares Retailer

LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)
1,540 1,524 1,475

Worley Claims Services, LLC(10)

Insurance Adjustment Management and Services Provider

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)
6,435 6,381 6,210

YP Holdings LLC(11)

Online and Offline Advertising Operator

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—June 4, 2018)(9)
2,455 2,435 2,382

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Zilliant Incorporated

Price Optimization and Margin Management Solutions

Preferred Stock (186,777 shares)
154 260

Warrants (952,500 equivalent shares)
1,071 1,190

1,225 1,450

Subtotal Non-Control/Non-Affiliate Investments (49.6% of total investments at fair value)
$ 945,187 $ 894,466

Total Portfolio Investments, December 31, 2015
$ 1,666,642 $ 1,799,996

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Marketable Securities and Idle Funds Investments

PennantPark Investment Corporation(13)(15)

Business Development Company

Common Stock (343,149 shares)(8)
$ 3,629 $ 2,121

Other Marketable Securities and Idle Funds Investments(13)(15)

Investments in Marketable Securities and Diversified, Registered Bond Funds

1,778 1,572

Subtotal Marketable Securities and Idle Funds Investments (0.2% of total investments at fair value)
$ 5,407 $ 3,693

Total Investments, December 31, 2015
$ 1,672,049 $ 1,803,689

~~(1)~~: All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note B for a description of Lower Middle Market portfolio investments. All of the Company's investments, unless otherwise noted, are encumbered either as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
~~(2)~~: ~~Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.~~
~~(3)~~: ~~See Note C for a summary of geographic location of portfolio companies.~~
~~(4)~~: ~~Principal is net of repayments. Cost is net of repayments and accumulated unearned income.~~
~~(5)~~: Control investments are defined by the Investment Company Act of 1940, as amended ("1940 Act") as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
~~(6)~~: ~~Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as Control investments.~~
~~(7)~~: ~~Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.~~
~~(8)~~: ~~Income producing through dividends or distributions.~~
~~(9)~~: Index based floating interest rate is subject to contractual minimum interest rate. Variable rate loans bear interest at a rate that may be determined by reference to either LIBOR (which can include one-, two-, three- or six-month LIBOR) or Prime, at the borrower's option, which rates reset periodically based on the terms of the loan agreement.
~~(10)~~: ~~Private Loan portfolio investment. See Note B for a description of Private Loan portfolio investments.~~
~~(11)~~: ~~Middle Market portfolio investment. See Note B for a description of Middle Market portfolio investments.~~
~~(12)~~: ~~Other Portfolio investment. See Note B for a description of Other Portfolio investments.~~
~~(13)~~: Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
~~(14)~~: ~~Non-accrual and non-income producing investment.~~
~~(15)~~: ~~Marketable securities and idle fund investments.~~
(16): External Investment Manager. Investment is not encumbered as security for the Company's Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(17): Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
~~(18)~~: Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investments in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investments in this portfolio company are on non-accrual status.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements

(Unaudited)

NOTE A—ORGANIZATION AND BASIS OF PRESENTATION

1. Organization

Main Street Capital Corporation ("MSCC") is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ("LMM") companies and debt capital to middle market ("Middle Market") companies. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in ~~diverse~~a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its LMM portfolio. MSCC and its consolidated subsidiaries invest primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.

MSCC was formed in March 2007 to operate as an internally managed business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF") ~~and~~, Main Street Capital II, LP ("MSC II") and ~~together~~Main Street Capital III, LP ("MSC III" and, collectively with MSMF and MSC II, the "Funds"), and each of their general partners. The Funds are each licensed as a Small Business Investment Company ("SBIC") by the United States Small Business Administration ("SBA"). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.

MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries or their portfolio companies ("External Parties") and ~~receives~~receive fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission ("SEC") to allow the External Investment Manager to register as a registered investment adviser ~~("RIA")~~ under the Investment Advisers Act of 1940, as ~~amended (the "Advisers Act").~~amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements.

MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.

MSCC has certain direct and indirect wholly owned subsidiaries that have elected to be taxable entities (the "Taxable Subsidiaries"). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes. The External Investment Manager is also a direct wholly owned subsidiary that has elected to be a taxable entity. The Taxable Subsidiaries and the External Investment Manager are each taxed at their normal corporate tax rates based on their taxable income.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE A—ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our," the "Company" and "Main Street" refer to MSCC and its consolidated subsidiaries, which include the Funds and the Taxable Subsidiaries.

2. Basis of Presentation

Main Street's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For each of the periods presented herein, Main Street's consolidated financial statements include the accounts of MSCC and its consolidated subsidiaries. The Investment Portfolio, as used herein, refers to all of Main Street's investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments and the investment in the External Investment Manager ~~but excludes all "Marketable securities and idle funds investments"~~ (see Note C—Fair Value Hierarchy for Investments and Debentures—Portfolio Composition—Investment Portfolio ~~Investment~~ Composition for additional discussion of Main Street's Investment Portfolio and definitions for the terms Private Loan and Other Portfolio). "Marketable securities and idle funds investments" are classified as financial instruments and are reported separately on Main Street's consolidated balance sheets and consolidated schedules of investments due to the nature of such investments (see Note B.11.). Main Street's results of operations and cash flows for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016, and financial position as of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, are presented on a consolidated basis. The effects of all intercompany transactions between Main Street and its consolidated subsidiaries have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements of Main Street are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, ~~2015.~~2016. Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs and the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("~~Codification" or "ASC"~~ASC") 946,Financial Services—Investment Companies ("ASC 946"), Main Street is precluded from consolidating other entities in which Main Street has equity investments, including those in which it has a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if Main Street holds a controlling interest in an operating company that provides all or substantially all of its services directly to Main Street or to its portfolio companies. Accordingly, as noted above, MSCC's consolidated financial statements include the financial position and operating results for the Funds and the Taxable Subsidiaries. ~~MSCC's consolidated financial statements also include the financial position and operating results for MSCC's wholly owned operating subsidiary,~~ Main Street ~~Capital Partners, LLC, ("MSCP"),~~has determined that all of its portfolio investments do not qualify for this exception, including the investment in the External Investment

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

as the wholly owned subsidiary provides all of its services directly or indirectly to Main Street or its portfolio companies. Main Street has determined that all of its portfolio investments do not qualify for this exception, including the investment in the External Investment NOTE A—ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Manager. Therefore, Main Street's Investment Portfolio is carried on the consolidated balance sheet at fair value, as discussed further in Note B, with any adjustments to fair value recognized as "Net Change in Unrealized Appreciation (Depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net Realized Gain (Loss)."

Portfolio Investment Classification

Main Street classifies its Investment Portfolio in accordance with the requirements of the 1940 Act. Under the 1940 Act, (a) "Control Investments" are defined as investments in which Main Street owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) "Affiliate Investments" are defined as investments in which Main Street owns between 5% and 25% of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) "Non-Control/Non-Affiliate Investments" are defined as investments that are neither Control Investments nor Affiliate Investments.

NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Valuation of the Investment Portfolio

Main Street accounts for its Investment Portfolio at fair value. As a result, Main Street follows the provisions of ~~the Financial Accounting Standards Board ("FASB")~~ ASC 820,Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires Main Street to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

Main Street's portfolio strategy calls for it to invest primarily in illiquid debt and equity securities issued by ~~private,~~privately held LMM companies and more liquid debt securities issued by Middle Market companies that are generally larger in size than the LMM companies. Main Street categorizes some of its investments in LMM companies and Middle Market companies as Private Loan portfolio investments, which are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments Main Street holds in its LMM portfolio and Middle Market portfolio. Main Street's portfolio also includes Other Portfolio investments which primarily consist of investments that are not consistent with the typical profiles for its LMM portfolio investments, Middle Market portfolio investments or Private Loan portfolio investments, including investments which may be managed by third parties. Main Street's portfolio investments may be subject to restrictions on resale.

LMM investments and Other Portfolio investments generally have no established trading market while Middle Market securities generally have established markets that are not active. Private Loan investments may include investments which have no established trading market or have established

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

markets that are not active. Main Street determines in good faith the fair value of its Investment Portfolio pursuant to a valuation policy in accordance with ASC 820 and a valuation process approved

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

by its Board of Directors and in accordance with the 1940 Act. Main Street's valuation policies and processes are intended to provide a consistent basis for determining the fair value of Main Street's Investment Portfolio.

For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall methodology ("Waterfall") for its LMM equity investments and an income approach using a yield-to-maturity model ("Yield-to-Maturity") for its LMM debt investments. For Middle Market portfolio investments, Main Street primarily uses quoted prices in the valuation process. Main Street determines the appropriateness of the use of third-party broker quotes, if any, in determining fair value based on its understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer, the depth and consistency of broker quotes and the correlation of changes in broker quotes with underlying performance of the portfolio company and other market indices. For Middle Market and Private Loan portfolio investments in debt securities for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value the investment in a current hypothetical sale using the Yield-to-Maturity valuation method. For its Other Portfolio equity investments, Main Street generally calculates the fair value of the investment primarily based on the net asset value ("NAV") of the fund and adjusts the fair value for other factors that would affect the fair value of the investment. All of the valuation approaches for Main Street's portfolio investments estimate the value of the investment as if Main Street were to sell, or exit, the investment as of the measurement date.

These valuation approaches consider the value associated with Main Street's ability to control the capital structure of the portfolio company, as well as the timing of a potential exit. For valuation purposes, "control" portfolio investments are composed of debt and equity securities in companies for which Main Street has a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company's board of directors. For valuation purposes, "non-control" portfolio investments are generally composed of debt and equity securities in companies for which Main Street does not have a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company's board of directors.

Under the Waterfall valuation method, Main Street estimates the enterprise value of a portfolio company using a combination of market and income approaches or other appropriate valuation methods, such as considering recent transactions in the equity securities of the portfolio company or third-party valuations of the portfolio company, and then performs a waterfall calculation by ~~using~~allocating the enterprise value over the portfolio company's securities in order of their preference relative to one another. The enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties, other than through a forced or liquidation sale. Typically, private companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company's historical and projected financial results. Due to SEC deadlines for Main Street's quarterly and annual financial reporting, the operating results of a portfolio company used in the current period valuation are generally the results from the period ended three months prior

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

to such valuation date and may include unaudited, projected, budgeted or pro forma financial information and may require adjustments for non-recurring items or to normalize the operating results that may require significant judgment in its determination. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results, Main Street also analyzes the impact of exposure to litigation, loss of customers or other contingencies. After determining the appropriate enterprise value, Main Street allocates the enterprise value to investments in order of the legal priority of the various components of the portfolio company's capital structure. In applying the Waterfall valuation method, Main Street assumes the loans are paid off at the principal amount in a change in control transaction and are not assumed by the buyer, which Main Street believes is consistent with its past transaction history and standard industry practices.

Under the Yield-to-Maturity valuation method, Main Street also uses the income approach to determine the fair value of debt securities based on projections of the discounted future free cash flows that the debt security will likely generate, including analyzing the discounted cash flows of interest and principal amounts for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of the portfolio ~~investments.~~company. Main Street's estimate of the expected repayment date of its debt securities is generally the ~~legal~~ maturity date of the instrument, as Main Street generally intends to hold its loans and debt securities to maturity. The Yield-to-Maturity analysis also considers changes in leverage levels, credit quality, portfolio company performance and other factors. Main Street will generally use the value determined by the Yield-to-Maturity analysis as the fair value for that security; however, because of Main Street's general intent to hold its loans to maturity, the fair value will not exceed the principal amount of the debt security valued using the Yield-to-Maturity valuation method. A change in the assumptions that Main Street uses to estimate the fair value of its debt securities using the Yield-to-Maturity valuation method could have a material impact on the determination of fair value. If there is deterioration in credit quality or if a debt security is in workout status, Main Street may consider other factors in determining the fair value of the debt security, including the value attributable to the debt security from the enterprise value of the portfolio company or the proceeds that would most likely be received in a liquidation analysis.

Under the NAV valuation method, for an investment in an investment fund that does not have a readily determinable fair value, Main Street measures the fair value of the investment predominately based on the NAV of the investment fund as of the measurement date and adjusts the investment's fair value for factors known to Main Street that would affect that fund's NAV, including, but not limited to, fair values for individual investments held by the fund if Main Street holds the same investment or for a publicly traded investment. In addition, in determining the fair value of the investment, Main Street considers whether adjustments to the NAV are necessary in certain circumstances, based on the analysis of any restrictions on redemption of Main Street's investment as of the measurement date, recent actual sales or redemptions of interests in the investment fund, and expected future cash flows available to equity holders, including the rate of return on those cash flows compared to an implied market

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return on equity required by market participants, or other uncertainties surrounding Main Street's ability to realize the full NAV of its interests in the investment fund.

Pursuant to its internal valuation process and the requirements under the 1940 Act, Main Street performs valuation procedures on each of its portfolio investments quarterly. In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its LMM portfolio companies, Main Street, among other things, consults with a nationally recognized independent financial advisory services firm. The nationally recognized independent financial advisory services firm analyzes and provides observations, recommendations and an assurance certification regarding the

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Company's determinations of the fair value of its LMM portfolio company investments. The nationally recognized independent financial advisory services firm is generally consulted relative to Main Street's investments in each LMM portfolio company at least once every calendar year, and for Main Street's investments in new LMM portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders' best interest, to consult with the nationally recognized independent financial advisory services firm on its investments in one or more LMM portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street's investment in a LMM portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from its independent financial advisory services firm in arriving at Main Street's determination of fair value on its investments in a total of 12 LMM portfolio companies for the three months ended March 31, 2017, representing approximately 16% of the total LMM portfolio at fair value as of March 31, 2017, and on a total of 11 LMM portfolio companies for the three months ended March 31, 2016, representing approximately 18% of the total LMM portfolio at fair value as of March 31, ~~2016, and on a total of 15 LMM portfolio companies for the three months ended March 31, 2015, representing approximately 23% of the total LMM portfolio at fair value as of March 31, 2015.~~2016. Excluding its investments in new LMM portfolio companies which have not been in the Investment Portfolio for at least twelve months subsequent to the initial investment as of March 31, ~~2016~~2017 and ~~2015,~~2016, as applicable, and its investments in the LMM portfolio companies that were not reviewed because their equity is publicly traded or they hold real estate for which a third-party appraisal is obtained on at least an annual basis, the percentage of the LMM portfolio reviewed and certified by ~~the~~its independent financial advisory services firm for the three months ended March 31, 2017 and 2016 was 18% and ~~2015 was~~ 19% ~~and 27%~~ of the total LMM portfolio at fair value as of March 31, ~~2016~~2017 and ~~2015,~~2016, respectively.

For valuation purposes, all of Main Street's Middle Market portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. For Middle Market portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Middle Market debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Middle Market equity investments in a current hypothetical sale using the Waterfall valuation method. Because ~~almost all~~the vast majority of the Middle Market portfolio investments are typically valued using ~~third party~~third-party quotes or other independent pricing services (including ~~98%~~95% and ~~99%~~94% of the Middle Market portfolio investments as of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively), ~~we do~~Main Street does not generally consult with any financial advisory services firms in connection with determining the fair value of ~~our~~its Middle Market investments.

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For valuation purposes, all of Main Street's Private Loan portfolio investments are non-control investments. For Private Loan portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Private Loan debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Private Loan equity investments in a current hypothetical sale using the Waterfall valuation method.

In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its Private Loan portfolio companies, Main Street, among other things, consults with a nationally recognized independent financial advisory services firm. The nationally recognized independent financial advisory services firm analyzes and provides observations and recommendations and an

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assurance certification regarding the Company's determinations of the fair value of its Private Loan portfolio company investments. The nationally recognized independent financial advisory services firm is generally consulted relative to Main Street's investments in each Private Loan portfolio company at least once every calendar year, and for Main Street's investments in new Private Loan portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders' best interest, to consult with the nationally recognized independent financial advisory services firm on its investments in one or more Private Loan portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street's investment in a Private Loan portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from its independent financial advisory services firm in arriving at its determination of fair value on its investments in a total of 9 Private Loan portfolio companies for the three months ended March 31, 2017, representing approximately 27% of the total Private Loan portfolio at fair value as of March 31, 2017, and on a total of 10 Private Loan portfolio companies for the three months ended March 31, 2016, representing approximately 36% of the total Private Loan portfolio at fair value as of March 31, 2016. Excluding its investments in new Private Loan portfolio companies which have not been in the Investment Portfolio for at least twelve months subsequent to the ~~most recent~~initial investment ~~decision~~ as of March 31, 2017 and 2016, as applicable, and ~~its~~ investments in ~~the~~its Private Loan portfolio companies that were not reviewed because the investment is ~~publicly traded~~valued based upon third-party quotes or ~~quoted by banks,~~other independent pricing, the percentage of the Private Loan portfolio reviewed and certified by its independent financial advisory services firm for the three months ended March 31, 2017 and 2016 was 44% and 51% of the total Private Loan portfolio at fair value as of March 31, ~~2016.~~2017 and 2016, respectively.

For valuation purposes, all of Main Street's Other Portfolio investments are non-control investments. Main Street's Other Portfolio investments comprised ~~approximately 4.3%~~5.4% and ~~4.2%~~5.0%, respectively, of Main Street's Investment Portfolio at fair value as of March 31, ~~2016~~2017 and December 31, ~~2015.~~2016. Similar to the LMM investment portfolio, market quotations for Other Portfolio equity investments are generally not readily available. For ~~its~~ Other Portfolio equity investments, Main Street generally determines the fair value of its investments using the NAV valuation method. For its Other Portfolio debt investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Other Portfolio debt investments in a current

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hypothetical sale using the Yield-to-Maturity valuation method. For its Other Portfolio debt investments for which third-party quotes or other independent pricing are available and appropriate, Main Street determines the fair value of these investments through obtaining ~~third party~~third-party quotes or other independent pricing to the extent that these inputs are available and appropriate to determine fair value.

For valuation purposes, Main Street's investment in the External Investment Manager is a control investment. Market quotations are not readily available for this investment, and as a result, Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach. In estimating the enterprise value, Main Street analyzes various factors, including the entity's historical and projected financial results, as well as its size, marketability and performance relative to the population of market comparables. This valuation approach estimates the value of the investment as if Main Street were to sell, or exit, the investment. In addition, Main Street considers ~~the value associated with Main Street's~~its ability to control the capital structure of the company, as well as the timing of a potential ~~exit.~~exit, in connection with determining the fair value of the External Investment Manager.

Due to the inherent uncertainty in the valuation process, Main Street's determination of fair value for its Investment Portfolio may differ materially from the values that would have been determined had

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a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. Main Street determines the fair value of each individual investment and records changes in fair value as unrealized appreciation or depreciation.

Main Street uses an internally developed portfolio investment rating system in connection with its investment oversight, portfolio management and analysis and investment valuation procedures for its LMM portfolio companies. This system takes into account both quantitative and qualitative factors of the LMM portfolio company and the investments held therein.

The Board of Directors of Main Street has the final responsibility for overseeing, reviewing and approving, in good faith, Main Street's determination of the fair value for its Investment Portfolio, as well as its valuation procedures, consistent with 1940 Act requirements. Main Street believes its Investment Portfolio as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 approximates fair value as of those dates based on the markets in which Main Street operates and other conditions in existence on those reporting dates.

2. Use of Estimates

The preparation of financial statements in conformity with ~~accounting principles generally accepted in the United States of America~~U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these estimates under different conditions or assumptions. Additionally, as explained in Note B.1., the consolidated financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street with the oversight, review and approval by Main Street's Board of Directors in the absence of readily ascertainable market values. Because of the inherent uncertainty of the Investment Portfolio valuations,

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those estimated values may differ ~~significantly~~materially from the values that would have been determined had a ~~readily available~~ready market for the ~~investments existed, and it is reasonably possible that the differences could be material.~~securities existed.

3. Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value.

At March 31, ~~2016,~~2017, cash balances totaling ~~$14.5~~$29.9 million exceeded Federal Deposit Insurance Corporation insurance protection levels, subjecting the Company to risk related to the uninsured balance. All of the Company's cash deposits are held at large, established, high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.

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4. ~~Marketable Securities and Idle Funds Investments~~

Marketable securities and idle funds investments include intermediate-term secured debt investments, independently rated debt investments and publicly traded debt and equity investments. See the consolidated schedule of investments for more information on Marketable securities and idle funds investments.

5. Interest, Dividend and Fee Income ~~(Structuring and Advisory Services)~~

Main Street records interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with Main Street's valuation policies, Main Street evaluates accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if Main Street otherwise does not expect the debtor to be able to service all of its debt or other obligations, Main Street will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding the debtor's ability to service the debt or other obligations, or if a loan or debt security is ~~fully impaired,~~ sold or written off, Main Street removes it from non-accrual status.

As of March 31, 2017, Main Street's total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.2% of its fair value and 2.7% of its cost. As of December 31, 2016, Main Street's total Investment Portfolio had four investments on non-accrual status, which comprised approximately 0.6% of its fair value and 3.0% of its cost.

Main Street holds certain debt and preferred equity instruments in its Investment Portfolio that contain payment-in-kind ("PIK") interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed in Note ~~B.9.~~B.8. below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the PIK interest and cumulative dividends in cash. Main Street stops accruing PIK interest and cumulative dividends and writes off any accrued and uncollected interest and dividends in arrears when it determines that such PIK interest and dividends in

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arrears are no longer collectible. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~3.1%~~3.4% and ~~2.2%~~3.1%, respectively, of Main Street's total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~0.8%~~1.8% and ~~1.0%~~0.8%, respectively, of Main Street's total investment income was attributable to cumulative dividend income not paid currently in cash.

As of March 31, 2016, Main Street's total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.5% of its fair value and 3.8% of its cost .. As of December 31, 2015, Main Street's total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.4% of its fair value and 3.7% of its cost.

Main Street may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing

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transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into income over the life of the financing.

A presentation of the investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:

	Three Months Ended March 31,				Three Months Ended March 31,

	2016		2015		2017		2016
	(dollars in thousands)				(dollars in thousands)
Interest, fee and dividend income:
Interest income	$	32,182	$	30,067	$	38,463	$	32,182
Dividend income		7,629		5,136		6,982		7,629
Fee income		2,064		1,602		2,444		2,064

Total interest, fee and dividend income	$	41,875	$	36,805	$	47,889	$	41,875

6.5. Deferred Financing Costs

Deferred financing costs include SBIC debenture commitment fees and SBIC debenture leverage fees on the SBIC debentures which are not accounted for under the fair value option under ASC 825 (as discussed further in Note ~~B.11.~~B.10.). These fees are approximately 3.4% of the total ~~comitment~~commitment and ~~drawn~~draw amounts, as applicable. These deferred financing costs have been capitalized and are being amortized into interest expense over the ten year term of each debenture agreement.

Deferred financing costs also include commitment fees and other costs related to Main Street's multi-year ~~investment~~revolving credit facility (the "Credit ~~Facility,"~~Facility", as discussed further in Note F) and its notes (as discussed further in Note G). These costs have been capitalized and are amortized into interest expense over the term of the individual instrument.

7.6. Unearned Income—Debt Origination Fees and Original Issue Discount and Discounts / Premiums to Par Value

Main Street capitalizes debt origination fees received in connection with financings and reflects such fees as unearned income netted against the applicable debt investments. The unearned income from the fees is accreted into ~~interest~~ income based on the effective interest method over the life of the financing.

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In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants or warrants with an exercise price below the fair value of the underlying equity (together, "nominal cost equity") that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, Main Street allocates its cost basis in its investment between its debt security and its nominal cost equity at the time of origination based on amounts negotiated with the particular portfolio company. The allocated amounts are based upon the fair value of the nominal cost equity, which is then used to determine the allocation of cost to the debt security. Any discount recorded on a debt investment resulting from this allocation is reflected as unearned income, which is netted against the applicable debt investment, and accreted into interest income based on the effective interest method over the life of the debt investment. The actual collection of this interest is deferred until the time of debt principal repayment.

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Main Street may also purchase debt securities at a discount or at a premium to the par value of the debt security. In the case of a purchase at a discount, Main Street records the investment at the par value of the debt security net of the discount, and the discount is accreted into interest income based on the effective interest method over the life of the debt investment. In the case of a purchase at a premium, Main Street records the investment at the par value of the debt security plus the premium, and the premium is amortized as a reduction to interest income based on the effective interest method over the life of the debt investment.

To maintain RIC tax treatment (as discussed in Note ~~B.9.~~B.8. below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the interest income. For the three months ended March 31, 2017 and 2016, approximately 3.5% and ~~2015, approximately~~ 2.6% ~~and 2.8%~~, respectively, of Main Street's total investment income was attributable to interest income ~~for~~from the accretion of discounts associated with debt investments, net of any premium reduction.

8.7. Share-Based Compensation

Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718,Compensation—Stock Compensation. Accordingly, for restricted stock awards, Main Street measures the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.

Effective January 1, 2016, Main Street elected early adoption of ~~ASU~~Accounting Standards Update ("ASU") 2016-09,Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09," as discussed further below in Note ~~B.13.~~B.12.). ASU 2016-09 requires that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement and no longer delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. Additionally, ASU 2016-09 allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, net of forfeitures, (current GAAP) or account for forfeitures when they occur. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures and

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intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. As such, Main Street has recorded a $1.8 million adjustment to "Net Unrealized Appreciation, Net of Income Taxes" on the consolidated balance sheet to capture the cumulative tax effect as of January 1, 2016. The company has elected to account for forfeitures as they occur and this change had no impact on its consolidated financial statements. The additional amendments (cash flows classification, minimum statutory tax withholding requirements and classification of awards as either a liability or equity) did not have an effect on Main Street's consolidated financial statements.

9.8. Income Taxes

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pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its "investment company taxable income" (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible ~~U.S Federal~~U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) the filing of the ~~U.S~~U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which ~~generated~~ such taxable ~~income.~~income was generated.

The Taxable Subsidiaries primarily hold certain portfolio investments for Main Street. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes and to continue to comply with the "source-income" requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with Main Street for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street's consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in Main Street's consolidated financial statements.

MSCC's wholly owned subsidiary MSCP is included in Main Street's consolidated financial statements for financing reporting purposes. For tax purposes, MSCP has elected to be treated as a taxable entity, and therefore is not consolidated with MSCC for income tax purposes and is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The taxable income, or loss, of MSCP may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in Main Street's consolidated financial statements.

The Taxable Subsidiaries ~~and MSCP~~ use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided, if necessary, against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

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Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

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~~10.~~9. Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net change in unrealized appreciation or depreciation reflects the net change in the fair value of the Investment Portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses.

~~11.~~10. Fair Value of Financial Instruments

Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Main Street believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents, receivables, payables and other liabilities approximate the fair values of such items due to the ~~short term~~short-term nature of these instruments. Marketable securities and idle funds investments may include investments in certificates of deposit, U.S. government agency securities, independently rated debt investments, diversified bond funds and publicly traded debt and equity investments and the fair value determination for these investments under the provisions of ASC 820 generally consists of Level 1 and 2 observable inputs, similar in nature to those discussed further in Note C.

As part of Main Street's acquisition of the majority of the equity interests of MSC II in January 2010 (the "MSC II Acquisition"), Main Street elected the fair value option under ASC 825,Financial Instruments ("ASC 825") relating to accounting for debt obligations at their fair value, for the MSC II SBIC debentures acquired ~~(the "Acquired Debentures")~~ as part of the acquisition accounting related to the MSC II Acquisition and values those obligations as discussed further in Note C. In order to provide for a more consistent basis of presentation, Main Street has continued to elect the fair value option for SBIC debentures issued by MSC II subsequent to the MSC II Acquisition. When the fair value option is elected for a given SBIC debenture, the deferred loan costs associated with the debenture are fully expensed in the current period to "Net Change in Unrealized Appreciation (Depreciation)—SBIC debentures" as part of the fair value adjustment. Interest incurred in connection with SBIC debentures which are valued at fair value is included in interest expense.

~~12.~~11. Earnings per Share

Basic and diluted per share calculations are computed utilizing the weighted-average number of shares of common stock outstanding for the period. In accordance with ASC 260,Earnings Per Share, the unvested shares of restricted stock awarded pursuant to Main Street's equity compensation plans are participating securities and, therefore, are included in the basic earnings per share calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings per share amounts.

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~~13.~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

12. Recently Issued or Adopted Accounting Standards

In May 2014, the FASB issued ~~Accounting Standards Update~~ASU 2014-09,Revenue from Contracts with Customers (Topic 606). ASU ~~2014-9~~2014-09 supersedes the revenue recognition requirements under ASC ~~Topic~~ 605,Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. ~~The~~In March 2016, the FASB ~~tentatively decided to defer~~issued ASU 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the ~~effective date~~implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12,Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the scope and application of the new revenue standard ~~for public entities under U.S. GAAP for one year. If finalized, the~~and related cost guidance. The new guidance will be effective for the annual reporting period beginning after December 15, 2017, including interim periods within that reporting period. Early adoption would be permitted for annual reporting periods beginning after December 15, 2016. Main Street ~~is currently evaluating~~expects to identify similar performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified. As a result, Main Street expects timing of its revenue recognition to remain the ~~impact the adoption of this new accounting standard will have on its financial statements.~~same.

In May 2015, the FASB issued ASU 2015-07,Fair Value Measurements—Disclosures for Certain Entities that Calculate Net Asset Value per Share. This amendment updates guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy, while investments for which fair value is measured at net asset value per share but the practical expedient is not applied should continue to be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard during the three months ended March 31, 2016. There was no impact of the adoption of this new accounting standard on ~~our~~Main Street's consolidated financial statements as none of ~~our~~its investments are measured through the use of the practical expedient.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In February 2016, the FASB issued ASU 2016-02,Leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. ~~The impact~~While Main Street continues to assess the effect of adoption, Main Street currently believes the most significant change relates to the recognition of a new right-of-use asset and lease liability on its consolidated balance sheet for its office space operating lease. Main Street currently has one operating lease for office space and does not expect a significant change in the leasing activity between now and adoption. See further discussion of the ~~adoption of this new accounting standard on Main Street's consolidated financial statements is currently being evaluated.~~operating lease obligation in Note M.

In March 2016, the FASB issued ASU 2016-09, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company elected to early adopt this standard during the three months ended March 31, 2016. See further discussion of the impact of the adoption of this standard in Note ~~B.8.~~B.7.

In August 2016, the FASB issued ASU 2016-15,Statement of Cash Flows (Topic 230), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. Early application is permitted. The impact of the adoption of this new accounting standard on Main Street's consolidated financial statements is not expected to be material.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by Main Street as of the specified effective date. Main Street believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. Main Street accounts for its investments at fair value.

Fair Value Hierarchy

In accordance with ASC 820, Main Street has categorized its investments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The fair value hierarchy

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).

Investments recorded on Main Street's balance sheet are categorized based on the inputs to the valuation techniques as follows:

Level 1—Investments whose values are based on unadjusted quoted prices for identical assets in an active market that Main Street has the ability to access (examples include investments in active exchange-traded equity securities and investments in most U.S. government and agency securities).

Level 2—Investments whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the investment. Level 2 inputs include the following:

•: Quoted prices for similar assets in active markets (for example, investments in restricted stock);
•: Quoted prices for identical or similar assets in non-active markets (for example, investments in thinly traded public companies);
•: Pricing models whose inputs are observable for substantially the full term of the investment (for example, market interest rate indices); and
•: Pricing models whose inputs are derived principally from, or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.

Level 3—Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (for example, investments in illiquid securities issued by private companies). These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the investment.

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). Main Street conducts reviews of fair value hierarchy classifications on a quarterly basis. During the classification process, Main Street may determine that it is appropriate to transfer investments between fair value hierarchy Levels. These transfers occur when Main Street has concluded that it is appropriate for the classification of an individual asset to be changed due to a change in the factors used to determine the selection of the Level. Any such changes are deemed to be effective during the quarter in which the transfer occurs.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

As of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, all of Main Street's LMM portfolio investments except for the ~~debt and~~ equity ~~investments~~investment in one portfolio company consisted of illiquid securities issued by private companies. ~~Those investments~~The investment which ~~were~~was the ~~exceptions were~~exception was in a company with publicly traded equity. As a result, the fair value determination for the LMM portfolio investments primarily consisted of unobservable inputs. The fair value determination for the publicly traded equity security consisted of observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value. As a result, all of Main Street's LMM portfolio investments were categorized as Level 3 as of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, except for the one publicly traded equity security which was categorized as Level 2.

As of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street's Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street's Middle Market portfolio investments were categorized as Level 3 as of March 31, ~~2016~~2017 and December 31, ~~2015.~~2016.

As of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street's Private Loan portfolio investments primarily consisted of investments in interest-bearing secured debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street's Private Loan portfolio investments were categorized as Level 3 as of March 31, ~~2016~~2017 and December 31, ~~2015.~~2016.

As of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street's Other Portfolio investments consisted of illiquid securities issued by private companies. The fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street's Other Portfolio investments were categorized as Level 3 as of March 31, ~~2016~~2017 and December 31, ~~2015.~~

As of March 31, 2016 and December 31, 2015, Main Street's Marketable securities and idle funds investments consisted primarily of investments in publicly traded debt and equity investments. The fair value determination for these investments consisted of a combination of observable inputs in active markets for which sufficient observable inputs were available to determine the fair value of these investments. As a result, all of Main Street's Marketable securities and idle funds investments were categorized as Level 1 as of March 31, 2016 and December 31, 2015.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~2016.

The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:

•: Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;
•: Current and projected financial condition of the portfolio company;
•: Current and projected ability of the portfolio company to service its debt obligations;
•: Type and amount of collateral, if any, underlying the investment;
•: Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio and net debt/EBITDA ratio) applicable to the investment;
•: Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

•: Pending debt or capital restructuring of the portfolio company;
•: Projected operating results of the portfolio company;
•: Current information regarding any offers to purchase the investment;
•: Current ability of the portfolio company to raise any additional financing as needed;
•: Changes in the economic environment which may have a material impact on the operating results of the portfolio company;
•: Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;
•: Qualitative assessment of key management;
•: Contractual rights, obligations or restrictions associated with the investment; and
•: Other factors deemed relevant.

The significant unobservable inputs used in the fair value measurement of Main Street's LMM equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is determined to not be appropriate), are (i) EBITDA multiples and (ii) the weighted-average cost of capital ("WACC"). Significant increases (decreases) in EBITDA multiple inputs in isolation would result in a significantly higher (lower) fair value measurement. On the contrary, significant increases (decreases) in WACC inputs in isolation would result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of Main Street's LMM, Middle Market, Private Loan and Other Portfolio debt securities are (i) risk adjusted discount rates used in the Yield-to-Maturity valuation technique (described in Note B.1.—Valuation of the Investment Portfolio) and (ii) the percentage of expected principal recovery. Significant increases (decreases) in any of these discount rates in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in any of these expected principal recovery percentages in isolation would result in a significantly higher (lower) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the tables below.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~appraisals of collateral and fair values as determined by independent third parties, which are not presented in the tables below.~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 portfolio investments as of March 31, ~~2016~~2017 and December 31, ~~2015:~~2016:

Type of Investment	Fair Value as of March 31, 2016 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)			Fair Value as of March 31, 2017 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	528,064	Discounted cash flow	Weighted-average cost of capital	10.0% - 27.5%	13.3%	13.6%	$	579,449	Discounted cash flow	Weighted-average cost of capital	10.1% - 22.7%	12.7%	13.3%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.0x - 8.5x(2)	7.1x	5.5x			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.1x	6.0x
Debt investments	$	668,040	Discounted cash flow	Risk adjusted discount factor	8.2% - 15.4%(2)	12.0%	11.8%	$	818,956	Discounted cash flow	Risk adjusted discount factor	7.4% - 16.0%(2)	11.4%	11.1%
				Expected principal recovery percentage	12.0% - 100.0%	99.8%	100.0%				Expected principal recovery percentage	3.0% - 100.0%	99.8%	100.0%
Debt investments	$	618,957	Market approach	Third party quote	11.3 - 101.0			$	578,703	Market approach	Third-party quote	15.0 - 105.0

Total Level 3 investments	$	1,815,061						$	1,977,108

(1): EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2): Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is ~~4.0x~~3.5x - ~~18.8x~~17.5x and the range for risk adjusted discount factor is ~~5.3%~~4.8% - ~~29.6%~~43.0%.
(3): Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

Type of Investment
Fair Value
as of
December 31,
2015
(in thousands) Valuation Technique Significant Unobservable Inputs Range(3) Weighted
Average(3) Median(3)
Equity investments
$ 530,612 Discounted cash flow Weighted-average cost of capital 10.5% - 25.1% 13.4% 13.9%
Market comparable / Enterprise Value EBITDA multiple(1) 4.0x - 8.5x(2) 7.0x 5.5x
Debt investments

$
628,492
Discounted cash flow

Risk adjusted discount factor

8.1% - 15.3%(2)

11.9%
11.9%
Expected principal recovery percentage 16.6% - 100.0% 99.7% 100.0%
Debt investments

$
637,052
Market approach

Third party quote

12.1 - 100.1

Total Level 3 investments
$ 1,796,156

Type of Investment	Fair Value as of December 31, 2016 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	567,003	Discounted cash flow	Weighted-average cost of capital	10.4% - 23.1%	13.0%	13.7%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.1x	6.0x
Debt investments	$	808,895	Discounted cash flow	Risk adjusted discount factor	7.4% - 15.9%(2)	11.8%	11.6%
				Expected principal recovery percentage	3.0% - 100.0%	99.7%	100.0%
Debt investments	$	618,928	Market approach	Third-party quote	22.5 - 108.0

Total Level 3 investments	$	1,994,826

(1): EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2): Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is ~~4.0x~~3.3x - ~~18.8x~~17.5x and the range for risk adjusted discount factor is ~~6.7%~~4.8% - ~~29.6%~~38.0%.
(3): Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

The following tables provide a summary of changes in fair value of Main Street's Level 3 portfolio investments for the three month periods ended March 31, ~~2016~~2017 and ~~2015~~2016 (amounts in thousands)~~. Net~~:

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~unrealized appreciation (depreciation) is included in the net change in unrealized appreciation (depreciation)—portfolio investments on the consolidated statements of operations.~~

Type of Investment													Fair Value as of December 31, 2016		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2017

Debt	1,265,544	—	(70,061	)	101,465	4,510		(11,905	)	(2,556	)	1,286,997	$	1,427,823	$	—	$	(190,366	)	$	175,026	$	1,340		$	(10,108	)	$	(6,056	)	$	1,397,659
Equity	519,966	—	(5,987	)	16,959	(16,816	)	(1,035	)	2,556		515,643		549,453		—		(9,119	)		25,691		(19,775	)		11,876			6,056			564,182
Equity Warrant	10,646	—	—		2,819	—		(1,044	)	—		12,421		17,550		—		(1,673	)		331		(1,107	)		166			—			15,267

	1,796,156	—	(76,048	)	121,243	(12,306	)	(13,984	)	—		1,815,061	$	1,994,826	$	—	$	(201,158	)	$	201,048	$	(19,542	)	$	1,934		$	—		$	1,977,108

(1): Includes the impact of non-cash conversions.

Type of Investment												Fair Value as of December 31, 2015		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2016

Debt	1,147,281	—	(145,175	)	283,801	3,796	(1,512	)	(4,682	)	1,283,509	$	1,265,544	$	—	$	(70,061	)	$	101,465	$	4,510		$	(11,905	)	$	(2,556	)	$	1,286,997
Equity	391,933	—	(5,950	)	24,030	354	15,347		4,435		430,149		519,966		—		(5,987	)		16,959		(16,816	)		(1,035	)		2,556			515,643
Equity Warrant	15,636	—	(449	)	1,400	449	(201	)	—		16,835		10,646		—		—			2,819		—			(1,044	)		—			12,421

	1,554,850	—	(151,574	)	309,231	4,599	13,634		(247	)	1,730,493	$	1,796,156	$	—	$	(76,048	)	$	121,243	$	(12,306	)	$	(13,984	)	$	—		$	1,815,061

(1): Includes the impact of non-cash conversions.

As of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, the fair value determination for the SBIC debentures recorded at fair value primarily consisted of unobservable inputs. As a result, the SBIC debentures which are recorded at fair value were categorized as Level 3. Main Street determines the fair value of these instruments primarily using a Yield-to-Maturity approach that analyzes the discounted cash flows of interest and principal for each SBIC debenture recorded at fair value based on estimated market interest rates for debt instruments of similar structure, terms, and maturity. Main Street's estimate of the expected repayment date of principal for each SBIC debenture recorded at fair value is the legal maturity date of the instrument. The significant unobservable inputs used in the fair value measurement of Main Street's SBIC debentures recorded at fair value are the estimated market interest rates used to fair value each debenture using the yield valuation technique described above. Significant increases (decreases) in the ~~Yield-to-Maturity valuation inputs~~estimated market interest rates in isolation would result in a significantly lower (higher) fair value measurement.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 SBIC debentures as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (amounts in thousands):

Type of Instrument		Fair Value as of March 31, 2016			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of March 31, 2017			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average

SBIC debentures		$	74,006		Discounted cash flow		Estimated market interest rates		4.1% - 5.7%			4.8%			$	49,155		Discounted cash flow		Estimated market interest rates		4.2% - 5.2%			4.5	%

Type of Instrument		Fair Value as of December 31, 2015			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of December 31, 2016			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average

SBIC debentures		$	73,860		Discounted cash flow		Estimated market interest rates		4.1% - 5.8%			4.9%			$	74,803		Discounted cash flow		Estimated market interest rates		3.4% - 5.3%			4.2	%

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

The following tables provide a summary of changes for the Level 3 SBIC debentures recorded at fair value for the three month periods ended March 31, ~~2016~~2017 and ~~2015~~2016 (amounts in thousands):

Type of Instrument	Fair Value as of December 31, 2015		Repayments		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of March 31, 2016		Fair Value as of December 31, 2016		Repayments			Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation			Fair Value as of March 31, 2017

SBIC debentures at fair value	$	73,860	$	—	$	—	$	146	$	74,006	$	74,803	$	(25,200	)	$	5,217	$	—	$	(5,665	)	$	49,155

Type of Instrument
Fair Value as of
December 31, 2014 Repayments New SBIC
Debentures Net
Unrealized
(Appreciation)
Depreciation Fair Value
as of
March 31, 2015
SBIC debentures at fair value
$ 72,981 $ — $ — $ 693 $ 73,674

~~At March 31, 2016 and December 31, 2015, Main Street's investments and SBIC debentures at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:~~


			Fair Value Measurements
			(in thousands)
At March 31, 2016	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
LMM portfolio investments	$	860,746	$	—	$	3,010	$	857,736
Middle Market portfolio investments		579,544		—		—		579,544
Private Loan portfolio investments		271,338		—		—		271,338
Other Portfolio investments		78,651		—		—		78,651
External Investment Manager		27,792		—		—		27,792

Total portfolio investments		1,818,071		—		3,010		1,815,061
Marketable securities and idle funds investments		1,519		1,519		—		—

Total investments	$	1,819,590	$	1,519	$	3,010	$	1,815,061



Type of Instrument									Fair Value as of December 31, 2015		Repayments		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of March 31, 2016
SBIC debentures at fair value	$	74,006	$	—	$	—	$	74,006	$	73,860	$	—	$	—	$	146	$	74,006

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

At March 31, 2017 and December 31, 2016, Main Street's investments and SBIC debentures at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:

			Fair Value Measurements								Fair Value Measurements

			(in thousands)								(in thousands)
At December 31, 2015	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2017									Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
LMM portfolio investments	$	862,710	$	—	$	3,840	$	858,870	$	886,559	$	—	$	2,270	$	884,289
Middle Market portfolio investments		586,900		—		—		586,900		568,796		—		—		568,796
Private Loan portfolio investments		248,313		—		—		248,313		384,220		—		—		384,220
Other Portfolio investments		74,801		—		—		74,801		106,331		—		—		106,331
External Investment Manager		27,272		—		—		27,272		33,472		—		—		33,472

Total portfolio investments		1,799,996		—		3,840		1,796,156		1,979,378		—		2,270		1,977,108
Marketable securities and idle funds investments		3,693		3,693		—		—		—		—		—		—

Total investments	$	1,803,689	$	3,693	$	3,840	$	1,796,156	$	1,979,378	$	—	$	2,270	$	1,977,108



SBIC debentures at fair value	$	73,860	$	—	$	—	$	73,860	$	49,155	$	—	$	—	$	49,155

			Fair Value Measurements

			(in thousands)
At December 31, 2016	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
LMM portfolio investments	$	892,592	$	—	$	2,080	$	890,512
Middle Market portfolio investments		630,578		—		—		630,578
Private Loan portfolio investments		342,867		—		—		342,867
Other Portfolio investments		100,252		—		—		100,252
External Investment Manager		30,617		—		—		30,617

Total portfolio investments		1,996,906		—		2,080		1,994,826
Marketable securities and idle funds investments		—		—		—		—

Total investments	$	1,996,906	$	—	$	2,080	$	1,994,826



SBIC debentures at fair value	$	74,803	$	—	$	—	$	74,803

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

Investment Portfolio Composition

Main Street's LMM portfolio investments primarily consist of secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Main Street's LMM portfolio companies generally have annual revenues between $10 million and $150 million, and its LMM investments generally range in size from $5 million to $50 million. The LMM debt investments are typically secured by either a first or second priority lien on the assets of the portfolio company, generally bear interest at fixed rates, and generally have a term of between five and seven years from the original investment date. In most LMM portfolio investments, Main Street receives nominally priced equity warrants and/or makes direct equity investments in connection with a debt investment.

Main Street's Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of ~~interest- bearing~~interest-bearing debt securities in privately held companies based in the United States that are generally larger in size than the companies included in Main Street's LMM portfolio. Main Street's Middle Market portfolio companies generally have annual revenues between $150 million and $1.5 billion, and its Middle Market investments generally range in size from $3 million to $15 million. Main Street's Middle Market portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date.

Main Street's private loan ("Private Loan") portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments Main Street holds in its LMM portfolio and Middle Market portfolio. Main Street's Private Loan portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date.

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Main Street's other portfolio ("Other Portfolio") investments primarily consist of investments which are not consistent with the typical profiles for LMM, Middle Market and Private Loan portfolio investments, including investments which may be managed by third parties. In the Other Portfolio, Main Street may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds. For Other Portfolio investments, Main Street generally receives distributions related to the assets held by the portfolio company. Those assets are typically expected to be liquidated over a five to ten year period.

Main Street's external asset management business is conducted through its External Investment Manager. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed. Main Street ~~has~~ entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with HMS Income Fund, Inc. ("HMS Income"). Through this agreement, Main Street shares employees with the External Investment Manager, including their related infrastructure, business

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

relationships, management expertise and capital raising capabilities. In the first quarter of 2014, Main Street began allocating cost to the External Investment Manager pursuant to the sharing agreement. Main Street's total expenses for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are net of ~~the costs~~expenses allocated to the External Investment Manager of ~~$1.2~~$1.5 million and ~~$0.8~~$1.2 million, respectively.

Investment income, consisting of interest, dividends and fees, can fluctuate dramatically due to various factors, including the level of new investment activity, repayments of debt investments or sales of equity interests. Investment income in any given year could also be highly concentrated among several portfolio companies. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, Main Street did not record investment income from any single portfolio company in excess of 10% of total investment income.

The following tables provide a summary of Main Street's investments in the LMM, Middle Market and Private Loan portfolios as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager which are discussed further below):

	As of March 31, 2016						As of March 31, 2017

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		72		84		42		73		69		49
Fair value	$	860.7	$	579.5	$	271.3	$	886.6	$	568.8	$	384.2
Cost	$	694.5	$	636.3	$	294.8	$	772.1	$	588.9	$	403.7
% of portfolio at cost—debt		70.9%		98.0%		93.7%		67.6%		96.9%		94.0%
% of portfolio at cost—equity		29.1%		2.0%		6.3%		32.4%		3.1%		6.0%
% of debt investments at cost secured by first priority lien		91.7%		85.4%		86.7%		96.1%		88.8%		90.2%
Weighted-average annual effective yield(b)		12.4%		8.1%		9.6%		12.2%		8.6%		9.6%
Average EBITDA(c)	$	6.1	$	94.2	$	13.7	$	4.6	$	95.5	$	24.8

(a): At March 31, ~~2016,~~2017, Main Street had equity ownership in approximately ~~96%~~99% of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately ~~35%~~37%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2017, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect Main Street's expenses or any sales load paid by an investor.
(c): The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, one Middle

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

Market portfolio company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

	As of December 31, 2016

	LMM(a)		Middle Market		Private Loan
	(dollars in millions)
Number of portfolio companies		73		78		46
Fair value	$	892.6	$	630.6	$	342.9
Cost	$	760.3	$	646.8	$	357.7
% of total investments at cost—debt		69.1%		97.2%		93.5%
% of total investments at cost—equity		30.9%		2.8%		6.5%
% of debt investments at cost secured by first priority lien		92.1%		89.1%		89.0%
Weighted-average annual effective yield(b)		12.5%		8.5%		9.6%
Average EBITDA(c)	$	5.9	$	98.6	$	22.7

(a): At December 31, 2016, Main Street had equity ownership in approximately 99% of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 36%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of ~~March~~December 31, 2016, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect Main Street's expenses or any sales load paid by an investor.
(c): The average EBITDA is calculated using a simple average for the LMM portfolio and a ~~weighted average~~weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, ~~four~~one Middle Market portfolio ~~companies~~company and ~~six~~three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio ~~companies, and those portfolio companies whose primary purpose is to own real estate.~~companies.

As of December 31, 2015

LMM(a) Middle Market Private Loan

(dollars in millions)

Number of portfolio companies
71 86 40
Fair value
$ 862.7 $ 586.9 $ 248.3
Cost
$ 685.6 $ 637.2 $ 268.6
% of total investments at cost—debt
70.4% 98.3% 94.3%
% of total investments at cost—equity
29.6% 1.7% 5.7%
% of debt investments at cost secured by first priority lien
91.8% 86.6% 87.3%
Weighted-average annual effective yield(b)
12.2% 8.0% 9.5%
Average EBITDA(c)
$ 6.0 $ 98.8 $ 13.1

~~(a)~~: ~~At December~~ As of March 31, ~~2015,~~2017, Main Street had ~~equity ownership~~Other Portfolio investments in ten companies, collectively totaling approximately ~~96%~~$106.3 million in fair value and approximately $111.8 million in cost basis and which comprised approximately 5.4% of ~~its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 36%.~~
~~(b)~~: ~~The weighted-average annual effective yields were computed using the effective interest rates for all debt investments~~Main Street's Investment Portfolio at ~~cost as~~fair value. As of December 31, ~~2015, including amortization of deferred debt origination fees~~2016, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately $100.3 million in fair value and ~~accretion of original issue discount but excluding fees payable upon repayment of the debt instruments~~approximately $107.1 million in cost basis and ~~any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares~~which comprised approximately 5.0% of Main Street's ~~common stock will realize on its investment because it does not reflect Main Street's expenses or any sales load paid by an investor.~~
~~(c)~~: The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, three Middle Market portfolio companies and six Private Loan portfolio companies as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio companies companies, and those portfolio companies whose primary purpose is to own real estate.

Investment Portfolio at fair value.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

As of March 31, 2016, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately $78.7 million in fair value and approximately $86.6 million in cost basis and which comprised approximately 4.3% of Main Street's Investment Portfolio at fair value. As of December 31, 2015, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately $74.8 million in fair value and approximately $75.2 million in cost basis and which comprised approximately 4.2% of Main Street's Investment Portfolio at fair value.NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

As discussed further in Note A.1., Main Street holds an investment in the External Investment Manager, a wholly owned subsidiary that is treated as a portfolio investment. As of March 31, 2017, there was no cost basis in this investment and the investment had a fair value of approximately $33.5 million, which comprised approximately 1.7% of Main Street's Investment Portfolio at fair value. As of December 31, 2016, there was no cost basis in this investment and the investment had a fair value of ~~$27.8~~approximately $30.6 million, which comprised ~~1.5% of Main Street's Investment Portfolio at fair value. As of December 31, 2015, there was no cost basis in this investment and the investment had a fair value of $27.3 million, which comprised~~approximately 1.5% of Main Street's Investment Portfolio at fair value.

The following tables summarize the composition of Main Street's total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

First lien debt	75.3%	75.8%	76.6%	76.1%
Equity	13.4%	13.5%	15.6%	14.5%
Second lien debt	9.3%	8.7%	6.2%	7.7%
Equity warrants	0.9%	0.9%	1.0%	1.1%
Other	1.1%	1.1%	0.6%	0.6%

	100.0%	100.0%	100.0%	100.0%

Fair Value:

First lien debt	66.2%	66.1%	69.6%	68.7%
Equity	24.2%	24.9%	23.2%	22.6%
Second lien debt	8.3%	7.7%	5.8%	7.2%
Equity warrants	0.6%	0.6%	0.8%	0.9%
Other	0.7%	0.7%	0.6%	0.6%

	100.0%	100.0%	100.0%	100.0%

The following tables summarize the composition of Main Street's total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments by geographic region of the United States and other countries at cost and fair value as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

Portfolio investments and the External Investment Manager). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

Cost:

Southwest	31.7%	33.4%	28.3%	29.7%
Midwest	18.2%	16.7%	23.4%	23.0%
West			15.9%	16.1%
Northeast	18.1%	18.3%	15.2%	14.8%
West	14.5%	14.6%
Southeast	13.7%	13.5%	14.1%	13.1%
Canada	2.1%	2.2%	1.4%	1.7%
Other Non-United States	1.7%	1.3%	1.7%	1.6%

	100.0%	100.0%	100.0%	100.0%

Fair Value:

Southwest	34.2%	36.7%	28.6%	31.0%
Northeast	16.5%	16.3%
Midwest	16.4%	15.1%	22.1%	21.2%
West	16.3%	16.1%	18.4%	18.3%
Northeast			14.4%	13.9%
Southeast	13.2%	12.6%	13.6%	12.7%
Canada	1.8%	2.0%	1.2%	1.4%
Other Non-United States	1.6%	1.2%	1.7%	1.5%

	100.0%	100.0%	100.0%	100.0%

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Main Street's LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments are in companies conducting business in a variety of industries. The following tables summarize the composition of Main Street's total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments by industry at cost and fair value

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

Energy Equipment & Services				7.7%	7.5%
Hotels, Restaurants & Leisure	7.6%	7.9%		6.7%	6.5%
Energy Equipment & Services	7.3%	7.3%
Construction & Engineering				6.3%	5.3%
Media				6.0%	5.7%
Machinery	5.9%	5.7%		5.8%	5.6%
Media	5.9%	5.6%
IT Services	4.9%	5.1%
Construction & Engineering	4.5%	4.6%
Software	4.2%	4.5%
Commercial Services & Supplies				4.9%	5.0%
Electronic Equipment, Instruments & Components	4.2%	4.3%		4.5%	4.5%
Specialty Retail	4.0%	5.1%		3.9%	4.4%
Diversified Consumer Services				3.5%	2.8%
Diversified Telecommunication Services				3.3%	3.3%
IT Services				3.1%	3.9%
Leisure Equipment & Products				3.1%	0.9%
Internet Software & Services				3.0%	3.6%
Auto Components				2.8%	3.0%
Health Care Providers & Services	3.8%	4.1%		2.8%	3.0%
Internet Software & Services	3.7%	3.1%
Diversified Consumer Services	3.3%	3.7%
Commercial Services & Supplies	3.2%	3.3%
Diversified Financial Services				2.4%	2.3%
Health Care Equipment & Supplies	3.1%	3.1%		2.3%	2.3%
Diversified Telecommunication Services	2.8%	2.9%
Diversified Financial Services	2.8%	2.3%
Auto Components	2.6%	2.7%
Software				2.2%	2.6%
Computers & Peripherals				2.2%	2.2%
Food Products	2.4%	2.4%		2.1%	2.6%
Building Products				2.1%	2.1%
Communications Equipment				1.7%	2.3%
Oil, Gas & Consumable Fuels	2.2%	2.1%		1.6%	1.2%
Building Products	2.2%	1.9%
Pharmaceuticals	1.8%	1.9%
Aerospace & Defense				1.6%	0.9%
Professional Services	1.8%	1.9%		1.3%	1.4%
Consumer Finance				1.0%	1.5%
Air Freight & Logistics				1.0%	1.0%
Real Estate Management & Development				1.0%	0.7%
Distributors				0.9%	1.1%
Road & Rail	1.6%	1.6%		0.0%	1.5%
Consumer Finance	1.6%	0.8%
Leisure Equipment & Products	1.3%	1.1%
Air Freight & Logistics	1.1%	1.1%
Aerospace & Defense	1.0%	1.0%
Other(1)	9.2%	8.9%		9.2%	9.3%

	100.0%	100.0%		100.0%	100.0%


			��

(1): Includes various industries with each industry individually less than 1.0% of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at each date.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

Fair Value:
March 31,
2016 December 31,
2015
Hotels, Restaurants & Leisure
7.7% 7.8%
Machinery
7.1% 7.0%
Software
5.7% 5.9%
Energy Equipment & Services
5.6% 6.0%
Diversified Consumer Services
5.5% 5.7%
Media
5.5% 5.1%
Construction & Engineering
5.0% 5.1%
IT Services
4.5% 4.6%
Specialty Retail
4.2% 6.0%
Electronic Equipment, Instruments & Components
3.7% 3.7%
Internet Software & Services
3.5% 2.9%
Health Care Providers & Services
3.2% 3.3%
Commercial Services & Supplies
3.1% 3.1%
Health Care Equipment & Supplies
3.0% 2.9%
Auto Components
3.0% 2.8%
Diversified Financial Services
2.8% 2.2%
Road & Rail
2.6% 2.6%
Diversified Telecommunication Services
2.5% 2.7%
Food Products
2.2% 2.1%
Building Products
2.0% 1.6%
Professional Services
1.8% 1.7%
Pharmaceuticals
1.6% 1.7%
Consumer Finance
1.3% 0.6%
Air Freight & Logistics
1.2% 1.3%
Leisure Equipment & Products
1.2% 1.1%
Oil, Gas & Consumable Fuels
1.0% 1.2%
Other(1)
9.5% 9.3%

100.0% 100.0%

Fair Value:

Machinery	7.0%	6.7%
Hotels, Restaurants & Leisure	6.8%	6.5%
Construction & Engineering	6.5%	5.6%
Diversified Consumer Services	6.4%	5.5%
Energy Equipment & Services	6.1%	5.8%
Media	5.6%	5.2%
Commercial Services & Supplies	4.8%	5.0%
Specialty Retail	4.1%	4.6%
Electronic Equipment, Instruments & Components	4.0%	3.9%
IT Services	3.1%	3.7%
Leisure Equipment & Products	3.0%	0.9%
Internet Software & Services	2.9%	3.5%
Auto Components	2.7%	2.9%
Health Care Providers & Services	2.6%	2.9%
Diversified Telecommunication Services	2.6%	2.5%
Diversified Financial Services	2.5%	2.3%
Computers & Peripherals	2.5%	2.3%
Health Care Equipment & Supplies	2.4%	2.4%
Software	2.3%	2.6%
Food Products	2.0%	2.4%
Building Products	2.0%	1.9%
Communications Equipment	1.7%	2.3%
Aerospace & Defense	1.5%	0.8%
Oil, Gas & Consumable Fuels	1.4%	1.1%
Professional Services	1.3%	1.3%
Air Freight & Logistics	1.2%	1.1%
Real Estate Management & Development	1.2%	0.7%
Construction Materials	1.0%	1.0%
Consumer Finance	0.9%	1.3%
Distributors	0.9%	1.1%
Road & Rail	0.0%	2.5%
Other(1)	7.0%	7.7%

	100.0%	100.0%

(1): Includes various industries with each industry individually less than 1.0% of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at each date.

At March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street had no portfolio investment that was greater than 10% of the Investment Portfolio at fair value.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

Unconsolidated Significant Subsidiaries

~~Main Street's investments are generally in small and mid-sized companies in a variety of industries.~~ In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, Main Street must determine which of its unconsolidated controlled portfolio companies, if any, are considered "significant ~~subsidiaries".~~subsidiaries." In evaluating these unconsolidated controlled portfolio companies, there are three tests utilized to determine if any of Main Street's Control Investments (as defined in Note A, including those unconsolidated controlled portfolio companies in which Main Street does not own greater than 50% of the voting securities) are considered significant subsidiaries: the investment test, the asset test and the income test. Rule 3-09 of Regulation S-X, as interpreted by the SEC, requires Main Street to include separate audited financial statements of an unconsolidated majority-owned subsidiary (Control

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Investments in which Main Street owns greater than 50% of the voting securities) in an annual report if any of the three tests exceed 20% of Main Street's total investments at fair value, total assets or total income, respectively. Rule 4-08(g) of Regulation S-X requires summarized financial information of a Control Investment in an annual report if any of the three tests exceeds 10% of Main Street's annual total amounts and Rule 10-01(b)(1) of Regulation S-X requires summarized financial information in a quarterly report if any of the three tests exceeds 20% of Main Street's year-to-date total amounts.

As of March 31, 2017 and December 31, 2016, Main Street had no single ~~Control Investment~~investment that represented greater than 20% of its total Investment Portfolio at fair value and no single investment whose total assets represented greater than 20% of its total assets. After performing the income test for the three months ended March 31, 2017, Main Street determined that the income from no single investment generated more than 20% of Main Street's total income. After performing the income test for the three months ended March 31, 2016, excluding investments which were fully exited after March 31, 2016, Main Street determined that its income from ~~three~~two of its Control Investments individually generated more than 20% of ~~its~~Main Street's total income, primarily due to the unrealized appreciation that was recognized on the investments during the three months ended March 31, 2016. As such, GRT Rubber Technologies, LLC ~~and Travis Acquisition LLC were~~was considered a significant ~~subsidiaries~~subsidiary at the 20% level as of March 31, 2016. Additionally, CBT Nuggets, LLC, an unconsolidated portfolio company that was a Control Investment, but which was not majority-owned by Main Street, was also considered a significant subsidiary at the 20% level as of March 31, 2016.

The following table shows the summarized financial information for CBT Nuggets, LLC:

As of March 31,
2016 As of December 31,
2015

(dollars in thousands)

Balance Sheet Data

Current Assets
$ 6,072 $ 4,499
Noncurrent Assets
15,213 16,749
Current Liabilities
16,978 15,490
Noncurrent Liabilities
— —

Three Months Ended March 31,

2016 2015

(dollars in thousands)

Summary of Operations

Total Revenue
$ 9,080 $ 7,839
Gross Profit
7,882 6,740
Income from Operations
3,135 2,688
Net Income
3,264 2,763

	As of March 31,		As of December 31,

	2017		2016
	(dollars in thousands)
Balance Sheet Data
Current Assets	$	10,789	$	7,275
Noncurrent Assets		12,266		13,610
Current Liabilities		18,201		17,883
Noncurrent Liabilities		—		—

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)

	Three Months Ended March 31,

	2017		2016
	(dollars in thousands)
Summary of Operations
Total Revenue	$	10,356	$	9,080
Gross Profit		9,218		7,882
Income from Operations		3,524		3,135
Net Income		3,853		3,264

The following table shows the summarized financial information for GRT Rubber Technologies LLC:

	As of March 31, 2016		As of December 31, 2015		2017		2016

					As of March 31,		As of December 31,
	(dollars in thousands)				(dollars in thousands)
Balance Sheet Data
Current Assets	$	8,405	$	9,729	$	9,308	$	8,326
Noncurrent Assets		35,095		36,129		31,209		32,106
Current Liabilities		4,532		3,517		4,408		2,941
Noncurrent Liabilities		19,500		22,812		18,250		18,562

Three Months Ended March 31,

2016 2015

(dollars in thousands)

Summary of Operations

Total Revenue
$ 7,000 $ 8,538
Gross Profit
2,285 2,875
Income from Operations
613 1,247
Net Income
(61 ) 596

~~The following table shows the summarized financial information for Travis Acquisition LLC:~~

As of March 31,
2016 As of December 31,
2015

(dollars in thousands)

Balance Sheet Data

Current Assets
$ 14,179 $ 11,861
Noncurrent Assets
17,760 17,911
Current Liabilities
6,715 5,354
Noncurrent Liabilities
9,300 9,536

	Three Months Ended March 31,				Three Months Ended March 31,

	2016		2015		2017			2016
	(dollars in thousands)				(dollars in thousands)
Summary of Operations
Total Revenue	$	11,974	$	10,653	$	6,931		$	7,000
Gross Profit		2,808		2,174		1,553			1,694
Income from Operations		1,754		1,398		402			613
Net Income		1,043		771		(211	)		(61	)

NOTE D—EXTERNAL INVESTMENT MANAGER

As discussed further in Note A.1., the External Investment Manager provides investment management and other services to External Parties. The External Investment Manager is accounted for as a portfolio investment of MSCC since the External Investment Manager conducts all of its investment management activities for External Parties.

During May 2012, Main Street entered into an investment sub-advisory agreement with HMS Adviser, LP ("HMS Adviser"), which is the investment advisor to HMS Income, a ~~non-publicly traded~~non-listed BDC, to

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~BDC whose registration statement on Form N-2 was declared effective by the SEC in June 2012, to~~ NOTE D—EXTERNAL INVESTMENT MANAGER (Continued)

provide certain investment advisory services to HMS Adviser. In December 2013, after obtaining required no-action relief from the SEC to allow it to own a registered investment adviser, Main Street assigned the sub-advisory agreement to the External Investment Manager since the fees received from such arrangement could otherwise have negative consequences on MSCC's ability to meet the source-of-income requirement necessary for it to maintain its RIC tax treatment. Under the investment sub-advisory agreement, the External Investment Manager is entitled to 50% of the base management fee and the incentive fees earned by HMS Adviser under its advisory agreement with HMS Income. Based upon several fee waiver agreements with HMS Income and HMS Adviser, the External Investment Manager did not begin accruing the base management fee and incentive fees, if any, until January 1, 2014. ~~Beginning January 1, 2016, the~~The External Investment Manager has conditionally agreed to waive a limited amount of the incentive fees otherwise ~~earned during the three months ended March 31, 2016.~~earned. During the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$2.3~~$2.6 million and ~~$1.4~~$2.3 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser.

The investment in the External Investment Manager is accounted for using fair value accounting, with the fair value determined by Main Street and approved, in good faith, by Main Street's Board of Directors. Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach (see further discussion in Note B.1.). Any change in fair value of the investment in the External Investment Manager is recognized on Main Street's consolidated statement of operations in "Net Change in Unrealized Appreciation (Depreciation)—Portfolio ~~investments".~~investments."

The External Investment Manager has elected, for tax purposes, to be treated as a taxable entity, is not consolidated with Main Street for income tax purposes and is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The External Investment Manager has elected to be treated as a taxable entity to enable it to receive fee income and to allow MSCC to continue to comply with the "source-income" requirements contained in the RIC tax provisions of the Code. The taxable income, or loss, of the External Investment Manager may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. The External Investment Manager provides for any income tax expense, or benefit, and any tax assets or liabilities in its separate financial statements.

Main Street shares employees with the External Investment Manager and allocates costs related to such shared employees to the External Investment Manager generally based on a combination of the direct time spent, new investment origination activity and assets under management, depending on the nature of the expense. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, Main Street allocated ~~$1.2~~$1.5 million and ~~$0.8~~$1.2 million of total expenses, respectively, to the External Investment Manager. The total contribution of the External Investment Manager to Main Street's net investment income consists of the combination of the expenses allocated to the External Investment Manager and dividend income from the External Investment Manager. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the total contribution to Main Street's net investment income was ~~$1.9~~$2.2 million and ~~$1.2~~$1.9 million, respectively.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE D—EXTERNAL INVESTMENT MANAGER (Continued)

Summarized financial information from the separate financial statements of the External Investment Manager as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 and for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 is as follows:

	As of March 31,		As of December 31,		As of March 31,		As of December 31,

	2016		2015		2017		2016
	(dollars in thousands)				(dollars in thousands)
Cash	$	31	$	31	$	—	$	—
Taxes receivable		18		—
Accounts receivable—HMS Income		2,254		2,262		2,588		2,496

Total assets	$	2,303	$	2,293	$	2,588	$	2,496



Accounts payable to MSCC and its subsidiaries	$	1,605	$	1,333	$	1,350	$	1,635
Dividend payable to MSCC		698		677		694		719
Taxes payable		—		283		544		142
Equity		—		—		—		—

Total liabilities and equity	$	2,303	$	2,293	$	2,588	$	2,496

	2016			2015			Three Months Ended March 31,

	Three Months Ended March 31,
	(dollars in thousands)						2017			2016
Management fee income	$	2,251		$	1,428		$	2,620		$	2,251
Expenses allocated from MSCC or its subsidiaries:
Salaries, share-based compensation and other personnel costs		(728	)		(567	)		(919	)		(728	)
Other G&A expenses		(426	)		(260	)		(605	)		(426	)

Total allocated expenses		(1,154	)		(827	)		(1,524	)		(1,154	)

Pre-tax income		1,097			601			1,096			1,097
Tax expense		(399	)		(202	)		(402	)		(399	)

Net income	$	698		$	399		$	694		$	698

NOTE E—SBIC DEBENTURES

Due to each of the Funds' status as a licensed SBIC, Main Street has the ability to issue, through the Funds, debentures guaranteed by the SBA up to a maximum amount of $350.0 million through its three existing SBIC licenses. SBIC debentures payable were ~~$225.0~~$240.2 million and $240.0 million at ~~both~~ March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively. SBIC debentures provide for interest to be paid ~~semi-annually,~~semiannually, with principal due at the applicable 10-year maturity date of each debenture. During the three months ended March 31, 2017, Main Street issued $25.4 million of SBIC debentures and opportunistically prepaid $25.2 million of existing SBIC debentures as part of an effort to manage the maturity dates of the oldest SBIC debentures, leaving $109.8 million of additional capacity under Main Street's SBIC licenses as of March 31, 2017. As a result of this prepayment, Main Street recognized a realized loss of $5.2 million due to the previously recognized gain recorded as a result of recording the

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE E—SBIC DEBENTURES (Continued)

MSC II debentures at fair value on the date of the acquisition of MSC II. The effect of the realized loss is offset by the reversal of all previously recognized unrealized depreciation due to fair value adjustments since the date of the acquisition. Main Street expects to issue new SBIC debentures under the SBIC program in the future in an amount up to the regulatory maximum amount of $350.0 million for affiliated SBIC funds. The weighted-average annual interest rate on the SBIC debentures was ~~4.2%~~3.8% and 4.1% as of ~~both~~ March 31, ~~2016~~2017 and December 31, ~~2015.~~2016, respectively. The first principal maturity due under the existing SBIC debentures is in ~~2017,~~2019 and the weighted-average remaining ~~weighted-average~~ duration as of March 31, ~~2016~~2017 was approximately ~~5.3~~5.7 years. For each of the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, Main Street recognized interest expense attributable to the SBIC debentures of $2.5 ~~million in each period, respectively.~~million. Main Street has incurred upfront leverage and other miscellaneous fees of approximately 3.4% of the debenture principal amount. In accordance with SBA regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA. ~~The Funds are subject to annual compliance examinations by the SBA. There have been no historical findings resulting from these examinations.~~

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

As of March 31, ~~2016,~~2017, the recorded value of the SBIC debentures was ~~$223.8~~$239.4 million which consisted of (i) ~~$74.0~~$49.2 million recorded at fair value, or ~~$1.2~~$0.8 million less than the ~~$75.2~~$50.0 million ~~face~~par value of the SBIC debentures ~~held~~issued in MSC II, ~~and~~ (ii) $149.8 million ~~reported~~recorded at ~~face~~par value and held in ~~MSMF.~~MSMF and (iii) $40.4 million recorded at par value and held in MSC III. As of March 31, ~~2016,~~2017, if Main Street had adopted the fair value option under ASC 825 for all of its SBIC debentures, Main Street estimates the fair value of its SBIC debentures would be approximately ~~$211.8~~$228.4 million, or ~~$13.2~~$11.8 million less than the ~~$225.0~~$240.2 million face value of the SBIC debentures.

NOTE F—CREDIT FACILITY

Main Street maintains the Credit Facility to provide additional liquidity to support its investment and operational activities. The Credit Facility includes total commitments of $555.0 million from a diversified group of fourteen lenders and matures in September ~~2020.~~2021. The Credit Facility also contains an accordion feature which allows Main Street to increase the total commitments under the facility to up to $750.0 million from new and existing lenders on the same terms and conditions as the existing commitments.

Borrowings under the Credit Facility bear interest, subject to Main Street's election, on a per annum basis at a rate equal to the applicable LIBOR rate ~~(0.44%~~(0.98% as of March 31, ~~2016)~~2017) plus (i) 1.875% (or the applicable base rate (Prime Rate of ~~3.5%~~4.00% as of March 31, ~~2016)~~2017) plus 0.875%) as long as Main Street maintains an investment grade rating and meets certain agreed upon excess collateral and maximum leverage requirements, (ii) 2.0% (or the applicable base rate plus 1.0%) if Main Street maintains an investment grade rating but does not meet certain excess collateral and maximum leverage requirements or (iii) 2.25% (or the applicable base rate plus 1.25%) if Main Street does not maintain an investment grade rating. Main Street pays unused commitment fees of 0.25% per annum on the unused lender commitments under the Credit Facility. The Credit Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the equity ownership or assets of the Funds and the External Investment Manager. The Credit Facility contains certain affirmative and negative covenants, including but not limited to: (i) maintaining a minimum availability of at least 10% of the borrowing base, (ii) maintaining an interest coverage ratio of at least 2.0 to 1.0, (iii) maintaining an asset coverage ratio of at least 1.5 to 1.0 and (iv) maintaining a minimum tangible net worth. ~~Main Street is in compliance with these covenants.~~ The Credit Facility is provided on a revolving basis through its final maturity date in September ~~2020,~~2021, and

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE F—CREDIT FACILITY (Continued)

contains two, one-year extension options which could extend the final maturity by up to two years, subject to certain conditions, including lender approval.

At March 31, ~~2016,~~2017, Main Street had ~~$306.0~~$288.0 million in borrowings outstanding under the Credit Facility. As of March 31, ~~2016,~~2017, if Main Street had adopted the fair value option under ASC 825 for its Credit Facility, Main Street estimates its fair value would approximate its recorded value. Main Street recognized interest expense related to the Credit Facility, including unused commitment fees and amortization of deferred loan costs, of $2.5 million and $2.1 million, ~~and $1.7 million~~respectively, for the three months ended March 31, ~~2016~~2017 and ~~2015, respectively.~~2016. As of March 31, ~~2016,~~2017, the interest rate on the Credit Facility was ~~2.3% which is consistent with the~~2.7%. The average interest rate for the three months ended March 31, ~~2016.~~2017 was 2.7%. As of March 31, 2017, Main Street was in compliance with all financial covenants of the Credit Facility.

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

NOTE G—NOTES

6.125% Notes

In April 2013, Main Street issued $92.0 million, including the underwriters full exercise of their option to purchase additional principal amounts to cover over-allotments, in aggregate principal amount of 6.125% Notes due 2023 (the "6.125% Notes"). The 6.125% Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness; senior to any of its future indebtedness that expressly provides it is subordinated to the 6.125% Notes; effectively subordinated to all of its existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under its Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, including without limitation, the indebtedness of the Funds. The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in part at any time or from time to time at Main Street's option on or after April 1, 2018. The 6.125% Notes bear interest at a rate of 6.125% per year payable quarterly on January 1, April 1, July 1 and October 1 of each year. The total net proceeds to Main Street from the 6.125% Notes, after underwriting discounts and estimated offering expenses payable by Main Street, were approximately $89.0 million. Main Street has listed the 6.125% Notes on the New York Stock Exchange under the trading symbol ~~"MSCA".~~"MSCA." Main Street may from time to time repurchase the 6.125% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2016,~~2017, the outstanding balance of the 6.125% Notes was $90.7 million. As of March 31, ~~2016,~~2017, if Main Street had adopted the fair value option under ASC 825 for the 6.125% Notes, Main Street estimates the fair value would be approximately ~~$92.1~~$94.3 million. Main Street recognized interest expense related to the 6.125% Notes, including amortization of deferred loan costs, of $1.5 million for each of the three months ended March 31, ~~2016~~2017 and ~~2015.~~2016.

The indenture governing the 6.125% Notes (the "6.125% Notes Indenture") contains certain covenants, including covenants requiring Main Street's compliance with (regardless of whether Main Street is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring Main Street to provide financial information to the holders of the 6.125% Notes and the Trustee if Main Street ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 6.125% Notes Indenture. As of March 31, 2017, Main Street iswas in compliance with these covenants.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE G—NOTES (Continued)

4.50% Notes

In November 2014, Main Street issued $175.0 million in aggregate principal amount of 4.50% unsecured notes due 2019 (the "4.50% Notes") at an issue price of 99.53%. The 4.50% Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness; senior to any of its future indebtedness that expressly provides it is subordinated to the 4.50% Notes; effectively subordinated to all of its existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under its Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes mature on December 1, 2019, and may be redeemed in whole or in part at any time at Main Street's option subject to certain ~~make whole~~make-whole provisions. The 4.50% Notes bear interest at a rate of 4.50% per year payable ~~semi-annually~~semiannually on June 1 and December 1 of each year. The total net proceeds from the

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

4.50% Notes, resulting from the issue price and after underwriting discounts and estimated offering expenses payable by us, were approximately $171.2 million. Main Street may from time to time repurchase the 4.50% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2016,~~2017, the outstanding balance of the 4.50% Notes was $175.0 million. As of March 31, ~~2016,~~2017, if Main Street had adopted the fair value option under ASC 825 for the 4.50% Notes, Main Street estimates its fair value would be approximately ~~$180.0~~$176.1 million. Main Street recognized interest expense related to the 4.50% Notes, including amortization of deferred loan costs, of $2.1 million for each of the three months ended March 31, ~~2016~~2017 and ~~2015.~~2016.

The indenture governing the 4.50% Notes (the "4.50% Notes Indenture") contains certain covenants, including covenants requiring Main Street's compliance with (regardless of whether Main Street is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring Main Street to provide financial information to the holders of the 4.50% Notes and the Trustee if Main Street ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes Indenture. As of March 31, 2017, Main Street iswas in compliance with these covenants.

~~NOTE H—FINANCIAL HIGHLIGHTS~~

Three Months Ended
March 31,

2016 2015
Per Share Data:

NAV at the beginning of the period
$ 21.24 $ 20.85
Net investment income(1)
0.54 0.51
Net realized gain (loss)(1)(2)
0.27 (0.05 )
Net change in net unrealized appreciation (depreciation)(1)(2)
(0.52 ) 0.30
Income tax benefit (provision)(1)(2)
0.04 0.01

Net increase in net assets resulting from operations(1)
0.33 0.77
Dividends paid to stockholders from net investment income
(0.54 ) (0.51 )
Distributions from capital gains
— —

Total dividends paid
(0.54 ) (0.51 )
Accretive effect of public stock offerings (issuing shares above NAV per share)
0.06 0.71
Accretive effect of DRIP issuance (issuing shares above NAV per share)

0.02
0.02
Other(3)
0.07 0.03

NAV at the end of the period
$ 21.18 $ 21.87

Market value at the end of the period
$ 31.35 $ 30.90
Shares outstanding at the end of the period
50,846,000 49,564,361

~~(1)~~: ~~Based on weighted average number of common shares outstanding for the period.~~

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE H—FINANCIAL HIGHLIGHTS

	Three Months Ended March 31,

	2017			2016
Per Share Data:
NAV at the beginning of the period	$	22.10		$	21.24
Net investment income(1)		0.57			0.54
Net realized gain (loss)(1)(2)		0.41			0.27
Net change in net unrealized depreciation(1)(2)		(0.30	)		(0.52	)
Income tax benefit (provision)(1)(2)		(0.11	)		0.04

Net increase in net assets resulting from operations(1)		0.57			0.33
Dividends paid from net investment income		(0.21	)		(0.54	)
Distributions from capital gains		(0.35	)		—

Total dividends paid		(0.56	)		(0.54	)
Accretive effect of stock offerings (issuing shares above NAV per share)		0.26			0.06
Accretive effect of DRIP issuance (issuing shares above NAV per share)		0.01			0.02
Other(3)		0.06			0.07

NAV at the end of the period	$	22.44		$	21.18



Market value at the end of the period	$	38.27		$	31.35
Shares outstanding at the end of the period		55,423,375			50,846,000

(1): Based on weighted-average number of common shares outstanding for the period.
(2): Net realized gains or losses, net change in unrealized appreciation or depreciation, and income taxes can fluctuate significantly from period to period.
(3): Includes the impact of the different share amounts as a result of calculating certain per share data based on the ~~weighted average~~weighted-average basic shares outstanding during the period and

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE H—FINANCIAL HIGHLIGHTS (Continued)

certain per share data based on the shares outstanding as of a period end or transaction date and the impact of the early adoption of the accounting standard ASU 2016-09 in the three months ended March 31, 2016 relating to the accounting for share-based payment transactions (see further discussion in Note B.8.).date.

	Three Months Ended March 31,				Three Months Ended March 31,

	2016		2015		2017		2016
	(dollars in thousands)				(dollars in thousands)
NAV at end of period	$	1,076,998	$	1,083,893	$	1,243,934	$	1,076,998
Average NAV	$	1,073,946	$	1,011,938	$	1,222,708	$	1,073,946
Average outstanding debt	$	772,183	$	722,820	$	825,155	$	772,183
Ratio of total expenses, including income tax expense, to average NAV(1)(2)		1.17%		1.32%		1.83%		1.17%
Ratio of operating expenses to average NAV(2)(3)		1.38%		1.35%		1.37%		1.38%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(3)		0.62%		0.58%		0.66%		0.62%
Ratio of net investment income to average NAV(2)		2.53%		2.32%		2.55%		2.53%
Portfolio turnover ratio(2)		5.03%		4.30%		8.97%		5.03%
Total investment return(2)(4)		9.85%		7.49%		5.64%		9.85%
Total return based on change in NAV(2)(5)		1.57%		3.77%		2.62%		1.57%

(1): Total expenses are the sum of operating expenses and net income tax provision/benefit. Net income tax provision/benefit includes the accrual of net deferred tax provision/benefit relating to the net unrealized appreciation/depreciation on portfolio investments held in Taxable Subsidiaries and due to the change in ~~net operating~~the loss carryforwards, which are non-cash in nature and may vary significantly from period to period. Main Street is required to include net deferred tax provision/benefit in calculating its total expenses even though these net deferred taxes are not currently payable/receivable.
(2): Not annualized.
(3): ~~Operating~~Unless otherwise noted, operating expenses include interest, compensation, general and administrative and share-based compensation expenses, net of expenses allocated to the External Investment Manager.
(4): Total investment return based on purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period reported on the table and assumes reinvestment of dividends at prices obtained by Main Street's dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor.
(5): Total return based on change in net asset value was calculated using the sum of ending net asset value plus dividends to stockholders and other non-operating changes during the period, as divided by the beginning net asset value.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME

Main Street paid regular monthly dividends of ~~$0.180~~$0.185 per share infor each month of January through March ~~2016,~~2017, totaling ~~$27.2~~$30.4 million, or ~~$0.540~~$0.555 per share, for the three months ended March 31, ~~2016.~~2017. The first quarter ~~2016~~2017 regular monthly dividends represent a ~~5.9%~~2.8% increase from the regular monthly dividends paid per share for the first quarter of ~~2015.~~2016. For the three months ended March 31, ~~2015,~~2016, Main Street paid total regular monthly dividends of ~~$23.0~~$27.2 million, or ~~$0.510~~$0.540 per share.

MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC's taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay ~~corporate level~~corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its "investment company taxable income" (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its ~~tax exempt~~tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible ~~U.S Federal~~U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the ~~U.S~~U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which ~~generated~~ such taxable ~~income.~~income was generated.

The determination of the tax attributes for Main Street's distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. Ordinary dividend distributions from a RIC do not qualify for the 20% maximum tax rate (plus a 3.8% Medicare surtax, if applicable) on dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Continued)

Listed below is a reconciliation of "Net increase in net assets resulting from operations" to taxable income and to total distributions declared to common stockholders for the three months ended March 31, ~~2016~~2017 and ~~2015.~~2016.

	Three Months Ended March 31,						Three Months Ended March 31,

	2016			2015			2017			2016
	(estimated, dollars in thousands)						(estimated, dollars in thousands)
Net increase in net assets resulting from operations	$	16,812		$	35,424		$	31,450		$	16,812
Book tax difference share-based compensation expense		1,589			1,090
Net change in net unrealized appreciation		26,218			(13,762	)
Book tax difference from share-based compensation expense								1,265			1,589
Net change in net unrealized depreciation								16,426			26,218
Income tax provision (benefit)		(2,263	)		(291	)		5,638			(2,263	)
Pre-tax book (income) loss not consolidated for tax purposes		(12,365	)		1,376			(6,468	)		(12,365	)
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates		(561	)		(601	)
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains (losses) and changes in estimates								4,373			(561	)

Estimated taxable income(1)		29,430			23,236			52,684			29,430
Taxable income earned in prior year and carried forward for distribution in current year		29,683			38,638			42,362			29,683
Taxable income earned prior to period end and carried forward for distribution next period		(40,942	)		(46,527	)		(74,695	)		(40,942	)
Dividend payable as of period end and paid in the following period		9,113			8,674			10,252			9,113

Total distributions accrued or paid to common stockholders	$	27,284		$	24,021		$	30,603		$	27,284

(1): Main Street's taxable income for each period is an estimate and will not be finally determined until the company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

The income tax expense, or benefit, and the related tax assets and liabilities generated by the Taxable Subsidiaries, if any, are reflected in Main Street's consolidated statement of operations. For the three months ended March 31, 2017, Main Street recognized a net income tax provision of $5.6 million, principally consisting of a deferred tax provision of $4.4 million which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries including changes in the loss carryforwards, changes in net unrealized appreciation or depreciation and ~~MSCP,~~other temporary book-tax differences, as well as a $1.3 million current tax expense which is primarily related to a $0.9 million accrual for excise tax on Main Street's estimated undistributed taxable income, and $0.4 million provision for current U.S. federal income and state taxes. The income tax expense, or benefit, and the related tax assets and liabilities, generated by the Taxable Subsidiaries, if any, are reflected in Main Street's consolidated financial statements. For the three months ended March 31, 2016, Main Street recognized a net income tax benefit of $2.3 million, principally consisting of a deferred tax benefit of $2.6 million which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries including changes in net operating loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary ~~book tax~~book-tax differences, partially offset by a $0.4 million provision for other current taxes which is primarily related to a $0.3 million provision for current U.S. federal income and state taxes, and a $0.1 million accrual for excise tax on ~~our~~Main Street's estimated spillover taxable income. For the three months ended March 31, 2015, Main Street recognized a net income tax benefit of $0.3 million which principally consisted of a deferred tax benefit of $0.7 million, partially offset by $0.4 million of accruals for current U.S. federal income and excise taxes, state and other taxes.

The net deferred tax asset at March 31, ~~2016~~2017 and December 31, ~~2015~~2016 was ~~$8.4~~$4.7 million and ~~$4.0~~$9.1 million, respectively, primarily related to ~~net operating~~ loss carryforwards, timing differences in net unrealized appreciation or depreciation and other temporary ~~book tax~~book-tax differences relating to portfolio investments held by the Taxable Subsidiaries. In addition, during the three months ended March 31, 2016, Main Street recorded a one-time $1.8 million increase to deferred tax assets for previously unrecognized excess tax benefits associated with share-based compensation due to the early adoption of the new accounting standard ASU 2016-09 (See further discussion in Note ~~B.8)~~B.7.). ~~For~~During the quarter ended March 31, 2017, the Taxable Subsidiaries utilized capital loss carryforwards totaling approximately $8.0 million. As of March 31, 2017, for U.S. federal income tax purposes, the Taxable Subsidiaries had a capital loss carryforward of ~~$8.0~~$6.6 million which, if unused, will expire in taxable year 2021. At March 31, 2017, for U.S. federal income tax purposes, the Taxable Subsidiaries ashad a net operating loss carryforward which, if unused, will expire in various taxable years from 2029 through 2037. The timing and manner in which Main Street will utilize any loss carryforwards in any year, or in total, may be limited in the future under the provisions of ~~December 31, 2015 was fully utilized during~~ the ~~three months ended March 31, 2016.~~Code.

NOTE J—COMMON STOCK

During November 2015, Main Street ~~entered into~~commenced a program ~~(the "ATM Program")~~ with ~~underwriters~~certain selling agents through which it can sell shares of its common stock by means of at-the-market offerings from time to time ~~up to 1,000,000 shares of its common stock.~~(the "ATM Program"). During the ~~first quarter of 2016,~~three months ended March 31, 2017, Main Street sold ~~321,714~~1,035,286 shares of its common stock at a weighted-average price of ~~$31.01~~$36.86 per share and raised ~~$10.0~~$38.2 million of gross proceeds under the ATM Program. Net proceeds were ~~$9.8~~$37.7 million after commissions to the ~~underwriter~~selling agents on shares sold and offering costs. As of March 31, 2016, sales transactions representing 78,782 shares had not settled and are not included in shares issued and outstanding on the face of the consolidated balance sheet, but are included in the weighted average shares outstanding on the consolidated statement of operations and in the shares used to calculate net asset value per share. As of March 31, 2016, 537,7182017, 499,500 shares were available for sale under the ATM Program.

~~During the fourth quarter of 2015, Main Street sold 140,568 shares of its common stock at a weighted-average price of $31.98 per share and raised $4.5 million of gross proceeds under the ATM~~

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE J—COMMON STOCK (Continued)

During the year ended December 31, 2016, Main Street sold 3,324,646 shares of our common stock at a weighted-average price of $34.17 per share and raised $113.6 million of gross proceeds under the ATM Program. Net proceeds were ~~$4.3~~$112.0 million after commissions to the ~~underwriter~~selling agents on shares sold and offering costs.

~~During March 2015, Main Street completed a follow-on public equity offering~~ As of ~~4,370,000~~December 31, 2016, sales transactions representing 42,413 shares ~~of common stock, including~~had not settled and were not included in shares issued and outstanding on the ~~underwriters' full exercise of their option to purchase 570,000 additional shares, resulting in total net proceeds, including exercise~~face of the ~~underwriters' option~~consolidated balance sheet, but were included in the weighted-average shares outstanding in the consolidated statement of operations and in the shares used to ~~purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by Main Street, of approximately $127.8 million.~~calculate net asset value per share.

NOTE K—DIVIDEND REINVESTMENT PLAN ("DRIP")

Main Street's DRIP provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if Main Street declares a cash dividend, the company's stockholders who have not "opted out" of the DRIP by the dividend record date will have their cash dividend automatically reinvested into additional shares of MSCC common stock. The share requirements of the DRIP may be satisfied through the issuance of shares of common stock or through open market purchases of common stock. Newly issued shares will be valued based upon the final closing price of MSCC's common stock on the valuation date determined for each dividend by Main Street's Board of Directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased, before any associated brokerage or other costs. Main Street's DRIP is administered by its transfer agent on behalf of Main Street's record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in Main Street's DRIP but may provide a similar dividend reinvestment plan for their clients.

For the three months ended March 31, 2017, $1.8 million of the total $30.4 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 48,675 newly issued shares. For the three months ended March 31, 2016, $3.3 million of the total $27.2 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 113,631 newly issued shares. For the three months ended March 31, 2015, $3.5 million of the total $23.0 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 116,330 newly issued shares and with the purchase of 3,131 shares of common stock in the open market. The shares disclosed above relate only to Main Street's DRIP and exclude any activity related to broker-managed dividend reinvestment plans.

NOTE L—SHARE-BASED COMPENSATION

Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718,Compensation—Stock Compensation. Accordingly, for restricted stock awards, Main Street measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.

Main Street's Board of Directors approves the issuance of shares of restricted stock to Main Street employees pursuant to the Main Street Capital Corporation 2015 Equity and Incentive Plan ~~("the Equity~~(the "Equity and Incentive Plan"). These shares generally vest over a three-year period from the grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances approved by Main Street's Board of Directors under the

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE L—SHARE-BASED COMPENSATION (Continued)

Equity and Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of March 31, ~~2016.~~2017.


Restricted stock authorized under the plan	3,000,000
Less ~~net~~ restricted stock granted, net of forfeited shares, during:
Year ended December 31, 2015	(900	)
~~Three months~~Year ended ~~March~~December 31, 2016	(~~900~~260,514	)
Three months ended March 31, 2017	2,771

Restricted stock available for issuance as of March 31, ~~2016~~2017	~~2,998,200~~2,741,357

As of March 31, ~~2016,~~2017, the following table summarizes the restricted stock issued to Main Street's ~~independent~~non-employee directors and the remaining shares of restricted stock available for issuance pursuant to the Main Street Capital Corporation 2015 Non-Employee Director Restricted Stock Plan. These shares are granted upon appointment or election to the board and vest on the day immediately preceding the annual meeting of stockholders following the respective grant date and are expensed over such service period.


Restricted stock authorized under the plan	300,000
Less net restricted stock granted during:
Year ended December 31, 2015	(6,806	)
Year ended December 31, 2016	(6,748	)

Restricted stock available for issuance as of March 31, ~~2016~~2017	~~293,194~~286,446

For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, Main Street recognized total share-based compensation expense of ~~$1.6~~$2.3 million and ~~$1.3~~$1.6 million, respectively, related to the restricted stock issued to Main Street employees and ~~independent~~non-employee directors.

As of March 31, ~~2016,~~2017, there was ~~$10.5~~$9.7 million of total unrecognized compensation expense related to Main Street's non-vested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately ~~2.1~~1.5 years as of March 31, ~~2016.~~2017.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE M—COMMITMENTS AND CONTINGENCIES

At March 31, ~~2016,~~2017, Main Street had the following outstanding commitments (in thousands):


	Amount
Investments with equity capital commitments that have not yet funded:			Amount
Congruent Credit Opportunities Funds
Congruent Credit Opportunities Fund II, LP			$	8,488
Congruent Credit Opportunities Fund III, LP				12,131

			$	20,619
Encap Energy Fund Investments
EnCap Energy Capital Fund VIII, L.P.	$	857	$	510
EnCap Energy Capital Fund VIII Co-Investors, L.P.		140		27
EnCap Energy Capital Fund IX, L.P.		2,055		1,093
EnCap Energy Capital Fund X, L.P.		8,930		6,789
EnCap Flatrock Midstream Fund II, L.P.		7,888		5,502
EnCap Flatrock Midstream Fund III, L.P.		6,482		4,785

	$	26,352	$	18,706
Congruent Credit Opportunities Funds
Congruent Credit Opportunities Fund II, LP	$	8,488
Freeport Fund Investments
Freeport First Lien Loan Fund III LP			$	6,539
Freeport Financial SBIC Fund LP				1,375

			$	7,914
Brightwood Capital Fund Investments
Brightwood Capital Fund III, LP			$	3,000
Brightwood Capital Fund IV, LP				4,500

			$	7,500
I-45 SLF LLC			$	1,800
EIG Fund Investments			$	3,595
LKCM Headwater Investments I, L.P.			$	2,500
Dos Rios Partners
Dos Rios Partners, LP			$	1,594
Dos Rios Partners - A, LP				506

			$	2,100

Total equity commitments			$	64,734

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE M—COMMITMENTS AND CONTINGENCIES (Continued)

Amount
Congruent Credit Opportunities Fund III, LP
17,980

$ 26,468
Freeport Fund Investments

Freeport First Lien Loan Fund III LP
$ 8,936
Freeport Financial SBIC Fund LP
1,375

$ 10,311
I-45 SLF LLC

$
7,800
Dos Rios Partners

Dos Rios Partners, LP
$ 3,416
Dos Rios Partners—A, LP
1,085

$ 4,501
Brightwood Capital Fund III, LP

$
3,750
EIG Fund Investments

$
2,220
LKCM Headwater Investments I, L.P.

$
2,500
Access Media Holdings, LLC

$
1,485

Total equity commitments
$ 85,387
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:

Volusion, LLC

$
7,000
CapFusion, LLC
6,400
Barfly Ventures, LLC
4,594
Arcus Hunting LLC
4,139
UniRush, LLC
4,000
Apex Linen Service, Inc.
3,200
Buca C, LLC
2,670
Hojeij Branded Foods, LLC
2,028
Applied Products, Inc.
2,000
Mid-Columbia Lumber Products, LLC
2,000
PT Network, LLC
1,938
Datacom, LLC
1,800
Glowpoint, Inc.
1,600
IDX Broker, LLC
1,500
LaMi Products, LLC
1,765
Messenger, LLC
1,417
Grace Hill, LLC
1,327
Lamb's Venture, LLC
1,000
Minute Key, Inc.
800
HW Temps LLC
800
Mystic Logistics, Inc.
800

Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:

NNE Partners, LLC	$	10,208
PT Network, LLC		8,775
Arcus Hunting LLC		4,336
CDHA Management, LLC		3,523
Charps, LLC		3,200
Strike, LLC		2,500
Mid-Columbia Lumber Products, LLC		2,000
Hojeij Branded Foods, LLC		1,643
CapFusion, LLC		1,600
Hawk Ridge Systems, LLC		1,600
Subsea Global Solutions, LLC		1,428
Messenger, LLC		1,417
LaMi Products, LLC		1,397
Gamber-Johnson Holdings, LLC		1,200
NuStep, LLC		1,200
Barfly Ventures, LLC		919
Apex Linen Service, Inc.		800
Mystic Logistics Holdings, LLC		800
Grace Hill, LLC		776
Lamb Ventures, LLC		695
Pardus Oil and Gas, LLC		663
NRI Clinical Research, LLC		600
Jackmont Hospitality, Inc.		593
PPC/SHIFT LLC		500
Jensen Jewelers of Idaho, LLC		500
UniTek Global Services, Inc.		483
Permian Holdco 2, Inc.		116

Total loan commitments	$	53,472

Total commitments	$	118,206

Main Street will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (which are typically through existing cash and cash equivalents and borrowings under the Credit Facility). Main Street follows a process to manage its liquidity and ensure that it has available capital to fund its unfunded commitments as necessary. The Company had total unrealized depreciation of $0.1 million on the outstanding unfunded commitments as of March 31, 2017.

Main Street has an operating lease for its office space in Houston, Texas. Total rent expense incurred by Main Street for each of the three months ended March 31, 2017 and 2016 was $0.1 million.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE M—COMMITMENTS AND CONTINGENCIES (Continued)

The following table shows future minimum payments under Main Street's operating lease as of March 31, 2017:

Amount
Guerdon Modular Holdings, Inc.
640
Jackmont Hospitality, Inc.
593
Vision Interests, Inc.
525
Insurance Technologies, LLC
522
UniTek Global Services, Inc.
483
Subsea Global Solutions, LLC
421
AccuMED Corp.
250
Garreco, LLC
200
Brainworks Software, LLC
111

Total loan commitments
$ 56,523

Total commitments
$ 141,910

For the Years Ended December 31,	Amount

2017	$	46
2018		683
2019		749
2020		763
2021		777
Thereafter		4,959

Total	$	7,977

Main Street may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to impose liability on Main Street in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, Main Street does not expect any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on Main Street's financial condition or results of operations in any future reporting period.

NOTE N—RELATED PARTY TRANSACTIONS

As discussed further in Note D, the External Investment Manager is treated as a wholly owned portfolio company of MSCC and is included as part of Main Street's Investment Portfolio. At March 31, ~~2016,~~2017, Main Street had a receivable of ~~$2.3~~approximately $2.0 million due from the External Investment Manager which included approximately ~~$1.6~~$1.3 million related primarily to operating expenses incurred by MSCC or its subsidiaries required to support the External Investment Manager's business ~~along with~~and approximately $0.7 million of dividends declared but not paid by the External Investment ~~Manager of approximately $0.7 million.~~Manager.

In November 2015, Main Street's ~~board~~Board of ~~directors~~Directors approved and adopted the Main Street Capital Corporation Deferred Compensation Plan (the "2015 Deferred Compensation Plan"). The 2015 Deferred Compensation Plan became effective on January 1, 2016 and replaced the Deferred Compensation Plan for Non-Employee Directors previously adopted by the ~~board~~Board of ~~directors~~Directors in June 2013 (the "2013 Deferred Compensation Plan"). Under the 2015 Deferred Compensation Plan, non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and directors' fees, subject to certain limitations. Individuals participating in the 2015 Deferred Compensation Plan receive distributions of their respective balances based on predetermined payout schedules or other events as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan, including phantom Main Street stock units. As of March 31, ~~2016, $1.1~~2017, $2.8 million of compensation and directors' fees had been deferred under the 2015 Deferred Compensation Plan (including amounts previously deferred under the 2013 Deferred Compensation Plan). Of this amount, ~~$1.05~~$1.7 million ~~of this deferred compensation and fees~~ was deferred into phantom Main Street stock units, representing ~~34,645~~55,938 shares of ~~our~~Main Street's common stock. ~~Any deferred amounts under~~Including phantom stock units issued through dividend reinvestment, the ~~plan represented by our shares~~phantom stock units outstanding as of ~~common stock will not be issued or included as outstanding on the consolidated statement of changes in net assets until such~~

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE N—RELATED PARTY TRANSACTIONS (Continued)

March 31, 2017 represented 65,882 shares of Main Street's common stock. Any amounts deferred under the plan represented by phantom Main Street stock units will not be issued or included as outstanding on the consolidated statement of changes in net assets until such shares are actually distributed to the participant in accordance with the plan, but are included in operating expenses and ~~weighted average~~weighted-average shares outstanding ~~on our~~in Main Street's consolidated statement of operations as earned.

NOTE O—SUBSEQUENT EVENTS

In April 2016, Main Street led a new portfolio investment totaling $6.0 million of invested capital to facilitate the majority recapitalization of BBB Tank Services, LLC ("BBB"), with Main Street funding $4.8 million of the investment. Main Street's investment in BBB included a combination of first-lien, senior secured term debt and a direct equity investment. Main Street and its co-investor are also providing BBB an undrawn revolving line of credit to support its future working capital needs. Headquartered in Baytown, Texas, and founded in 2001, BBB provides products and services to the above-ground storage tank market. BBB's products and services include routine and emergency maintenance and repairs, replacement seals for floating roofs, application of protective coatings, and new tank construction and are provided primarily to owners of storage terminals that hold crude, refined petroleum products, chemicals and other commodities.

In April 2016, Safety Holdings, Inc., doing business as SambaSafety® ("SambaSafety"), completed a transaction with a private equity group to complete a majority recapitalization of SambaSafety. This transaction resulted in the repayment of Main Street's debt investment and the exit of Main Street's equity investment in SambaSafety. 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 insights insurance carriers need to accurately price risk throughout the insurance policy lifecycle. Main Street made its initial investment in SambaSafety in November 2011 and the majority recapitalization transaction resulted in realized value received by Main Street that is consistent with the fair market values for its investments in SambaSafety as of March 31, 2016.

In April 2016, Main Street led a new portfolio investment totaling $16.4 million of invested capital to facilitate the management-led buyout of Gulf Publishing Company ("Gulf") and The Petroleum Economist Limited ("Petroleum Economist", and together with Gulf, the "Companies"), with Main Street funding $13.1 million of the investment. Main Street's investment in the Companies included a combination of first-lien, senior secured term debt and a direct equity investment. Headquartered in Houston, Texas, Gulf Publishing Company was incorporated in 1916 by a team of oil company executives and oilfield equipment manufacturers as wildcat discoveries were being made along the Houston Ship Channel. Today, Gulf Publishing produces and distributes leading trade journals, industry research, databases, software, conferences and events designed for the needs of the energy industry.

During April ~~2016,~~2017, Main Street declared a semi-annual supplemental cash dividend of $0.275 per share payable in June ~~2016.~~2017. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that Main Street declared for the second quarter of ~~2016~~2017 of ~~$0.180~~$0.185 per share for each of April, May and June ~~2016.~~2017.

In May ~~2016,~~2017, Main Street declared regular monthly dividends of ~~$0.180~~$0.185 per share for each month of July, August and September of ~~2016.~~2017. These regular monthly dividends equal a total of ~~$0.540~~$0.555 per share for the third quarter of ~~2016~~2017 and represent a ~~2.9%~~2.8% increase from the regular monthly dividends declared for the third quarter of ~~2015.~~2016. Including the semi-annual supplemental dividend declared for June 2017 and the regular monthly dividends declared for the ~~first quarter~~second and third quarters of ~~2016,~~2017, Main Street will have paid ~~$17.775~~$20.545 per share in cumulative dividends since its October 2007 initial public offering.

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Schedule 12-14

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments Inin and Advances to Affiliates
Three Months Ended March 31, ~~2016~~2017
(dollars in thousands)
~~(Unaudited)~~
(unaudited)

Company	Investment(1)								Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value

Control Investments
*Majority-owned investments*
Café Brazil, LLC	Member Units	203		7,330	—		760	6,570	Member Units	$	52	$	6,040	$	—	$	140	$	5,900

Clad-Rex Steel, LLC									LIBOR Plus 9.50% (Floor 1.00%)		11		396		1		—		397
									LIBOR Plus 9.50% (Floor 1.00%)		375		13,941		5		—		13,946
									Member Units		—		7,280		—		—		7,280
									10% Secured Debt		30		1,190		—		4		1,186
									Member Units		—		210		—		—		210

CMS Minerals Investments									Preferred Member Units		51		3,682		—		411		3,271
									Member Units		63		3,381		—		261		3,120

Gamber-Johnson Holdings, LLC									LIBOR Plus 11.00% (Floor 1.00%)		735		23,846		234		—		24,080
									Member Units		170		18,920		3,160		—		22,080

GRT Rubber Technologies LLC	LIBOR Plus 9.00% (Floor 1.00%)	413		15,988	134		2,219	13,903	LIBOR Plus 9.00% (Floor 1.00%)		334		13,274		8		217		13,065
	Member Units	112		15,580	2,450		—	18,030	Member Units		127		20,310		—		—		20,310

Harborside Holdings, LLC									Member Units		—		—		9,400		—		9,400

Hydratec, Inc.	Common Stock	455		14,950	460		—	15,410	Common Stock		480		15,640		—		—		15,640

IDX Broker, LLC	12.5% Secured Debt	365		11,350	5		5	11,350	12.5% Secured Debt		344		10,950		7		307		10,650
	Member Units	—		6,440	—		—	6,440	Member Units		68		7,040		1,160		—		8,200

Jensen Jewelers of Idaho, LLC	Prime Plus 6.75% (Floor 2.00%)	119		4,055	508		158	4,405	Prime Plus 6.75% (Floor 2.00%)		108		4,055		4		154		3,905
	Member Units	52		4,750	450		—	5,200	Member Units		37		4,460		—		—		4,460

Lamb's Venture, LLC	11% Secured Debt	220		7,962	1		114	7,849
Lamb Ventures, LLC									LIBOR Plus 5.75%		7		—		350		45		305
									11% Secured Debt		209		7,657		—		78		7,579
	Preferred Equity	—		328	—		—	328	Preferred Equity		—		400		—		—		400
	Member Units	—		4,690	470		—	5,160	Member Units		40		5,990		200		—		6,190
	9.5% Secured Debt	22		919	—		13	906	9.5% Secured Debt		32		1,170		428		1,170		428
	Member Units	14		1,240	—		—	1,240	Member Units		407		1,340		—		380		960

Lighting Unlimited, LLC	8% Secured Debt	31		1,514	—		—	1,514	8% Secured Debt		29		1,514		—		1,514		—
	Preferred Equity	—		430	—		—	430	Preferred Equity		—		410		24		434		—
	Warrants	—		40	—		10	30	Warrants		—		—		54		54		—
	Member Units	(81	)	350	—		90	260	Member Units		—		—		100		100		—

Mid-Columbia Lumber	10% Secured Debt	44		1,750	—		—	1,750
Products, LLC	12% Secured Debt	118		3,900	—		—	3,900
Mid-Columbia Lumber Products, LLC									10% Secured Debt		44		1,750		—		—		1,750
									12% Secured Debt		117		3,900		—		—		3,900
	Member Units	—		2,580	—		160	2,420	Member Units		2		2,480		—		500		1,980
	9.5% Secured Debt	21		881	—		11	870	9.5% Secured Debt		20		836		—		11		825
	Member Units	5		550	—		—	550	Member Units		9		600		620		—		1,220

MSC Adviser I, LLC	Member Units	698		27,272	520		—	27,792	Member Units		695		30,617		2,855		—		33,472

Mystic Logistics Holdings, LLC	12% Secured Debt	297		9,448	9		9	9,448	12% Secured Debt		286		9,176		11		23		9,164
	Common Stock	8		5,970	—		580	5,390	Common Stock		—		5,780		390		—		6,170

NRP Jones, LLC	6% Current / 6% PIK Secured Debt	467		12,948	134		—	13,082	8% Current / 4% PIK Secured Debt		419		13,915		139		—		14,054
	Warrants	—		450	—		300	150	Warrants		—		130		—		—		130
	Member Units	—		1,480	—		990	490	Member Units		—		410		—		—		410

PPL RVs, Inc.	11.1% Secured Debt	272		9,710	—		—	9,710	LIBOR Plus 7.00% (Floor 0.50%)		370		17,826		8		—		17,834
	Common Stock	—		9,770	290		—	10,060	Common Stock		100		11,780		—		—		11,780

Principle Environmental, LLC	12% Secured Debt	144		4,060	21		21	4,060
	12% Current / 2% PIK Secured Debt	118		3,310	18		1	3,327
	Preferred Member Units	—		6,060	—		1,460	4,600
	Warrants	—		310	—		190	120

Quality Lease Service, LLC	8% PIK Secured Debt	126		6,538	126		—	6,664
	Member Units	—		2,638	—		—	2,638

Southern RV, LLC	13% Secured Debt	157		11,400	104		11,504	—
	Member Units	957		15,100	(1,417	)	13,683	—
	13% Secured Debt	45		3,250	30		3,280	—
	Member Units	—		1,200	—		1,200	—

The MPI Group, LLC	9% Secured Debt	66		2,921	—		—	2,921
	Series A Preferred Units	—		690	—		—	690
	Warrants	—		—	—		—	—
	Member Units	31		2,230	70			2,300

Travis Acquisition LLC	12% Secured Debt	108		3,513	5		120	3,398
	Member Units	25		14,480	2,840		—	17,320

Uvalco Supply, LLC	9% Secured Debt	28		1,314	—		107	1,207
	Member Units	51		5,460	250		—	5,710

Table of Contents
Company

Investment(1)
Amount of
Interest, Fees
or Dividends
Credited to
Income(2) December 31,
2015 Value Gross
Additions(3) Gross
Reductions(4) March 31,
2016
Fair Value
Investment(1)
Amount of
Interest,
Fees or
Dividends
Credited to
Income(2) December 31,
2016 Fair
Value Gross
Additions(3) Gross
Reductions(4) March 31,
2017 Fair
Value
Principle Environmental, LLC
12% Secured Debt 122 4,060 — — 4,060
12% Current / 2% PIK Secured Debt 118 3,378 16 — 3,394
Preferred Member Units — 5,370 953 63 6,260
Warrants — 270 50 — 320

Quality Lease Service, LLC
8% PIK Secured Debt 136 7,068 136 — 7,204
Member Units — 3,188 1,051 — 4,239

The MPI Group, LLC
9% Secured Debt 66 2,922 — — 2,922
Series A Preferred Units — — — — —
Warrants — — — — —
Member Units 35 2,300 90 — 2,390

Uvalco Supply, LLC
9% Secured Debt 18 872 — 116 756
Member Units 8 4,640 — 333 4,307

Vision Interests, Inc.
13% Secured Debt 105 3,052 5 — 3,057 13% Secured Debt 91 2,814 — — 2,814
Series A Preferred Stock — 3,550 — — 3,550 Series A Preferred Stock — 3,000 — — 3,000
Common Stock — 210 1 — 211 Common Stock — — — — —

Ziegler's NYPD, LLC
6.5% Secured Debt 17 992 — — 992 6.5% Secured Debt 17 994 — — 994
12% Secured Debt 15 500 — — 500 12% Secured Debt 9 300 — — 300
14% Secured Debt 97 2,750 — — 2,750 14% Secured Debt 96 2,750 — — 2,750
Warrants — 50 100 — 150 Warrants — 240 — — 240
Preferred Member Units — 3,400 — — 3,400 Preferred Member Units — 4,100 — — 4,100

Other controlled investments

Access Media Holdings, LLC
5.00% Current / 5.00% PIK Secured Debt $ 554 $ 20,380 $ 271 $ 20,651
5% Current / 5% PIK Secured Debt

563
19,700
282
512
19,470
Preferred Member Units — 2,000 765 635 2,130 Preferred Member Units — 240 169 189 220
Member Units — — — — — Member Units — — — — —

AmeriTech College, LLC
10% Secured Debt 13 514 — — 514
Ameritech College Operations, LLC
10% Secured Debt 13 514 — — 514
10% Secured Debt 12 489 — — 489 13% Secured Debt 16 489 — — 489
10% Secured Debt 76 3,025 — — 3,025 13% Secured Debt 98 3,025 — — 3,025
Preferred Member Units 29 2,291 — — 2,291 Preferred Member Units — 2,291 3,900 3,381 2,810

ASC Interests, LLC
11% Secured Debt 75 2,500 5 255 2,250 11% Secured Debt 60 2,100 3 53 2,050
Member Units 35 2,230 330 — 2,560 Member Units — 2,680 60 — 2,740

Bond-Coat, Inc.
12% Secured Debt 360 11,596 8 8 11,596 12% Secured Debt 357 11,596 9 9 11,596
Common Stock — 9,140 — 1,650 7,490 Common Stock — 6,660 940 — 7,600

CBT Nuggets, LLC
Member Units 1,611 42,120 3,630 — 45,750 Member Units 1,000 55,480 5,140 — 60,620

CMS Minerals LLC
Preferred Member Units 1,013 6,914 — 1,164 5,750
Charps, LLC
LIBOR Plus 7.00% (Floor 1.00%) 14 — 781 — 781
12% Secured Debt 630 — 18,220 — 18,220
Preferred Member Units — — 400 — 400

Datacom, LLC
5.25% Current / 5.25% PIK Secured Debt 317 10,970 56 216 10,810 8% Secured Debt 20 900 180 — 1,080
5.25% Current / 5.25% PIK Secured Debt 313 11,049 441 — 11,490
Class A Preferred Member Units — 1,181 43 — 1,224 Class A Preferred Member Units — 1,368 51 — 1,419
Class B Preferred Member Units — 5,079 — 477 4,602 Class B Preferred Member Units — 1,529 332 — 1,861

Garreco, LLC
14% Secured Debt 212 5,739 6 — 5,745 LIBOR Plus 12.00% (Floor 1.00%) 189 5,219 975 225 5,969
Member Units 5 1,270 — 180 1,090 Member Units — 1,150 320 — 1,470

Gulf Manufacturing, LLC
9% PIK Secured Debt 18 777 — — 777 9% PIK Secured Debt 17 777 — — 777
Member Units — 13,770 — 2,810 10,960 Member Units 139 8,770 420 — 9,190

Harrison Hydra-Gen, Ltd.
9% Secured Debt 9 5,010 — 5,010 —
Preferred Stock 2 1,361 2 1,363 —
Gulf Publishing Holdings, LLC
12.5% Secured Debt 316 9,911 4 — 9,915
Common Stock — 2,600 100 — 2,700 Member Units — 3,124 336 — 3,460

Hawthorne Customs and
Member Units 12 460 — 180 280
Dispatch Services, LLC
Member Units 35 2,220 — — 2,220
Harrison Hydra-Gen, Ltd.
Common Stock — 3,120 — 320 2,800

Hawthorne Customs and Dispatch Services, LLC
Member Units — 280 — — 280
Member Units 48 2,040 — — 2,040

HW Temps LLC
LIBOR Plus 9.50% (Floor 1.00%) 270 9,884 4 — 9,888 LIBOR Plus 13.00% (Floor 1.00%) 368 10,500 4 600 9,904
Preferred Member Units 198 3,942 1,008 — 4,950 Preferred Member Units 35 3,940 — — 3,940

Indianapolis Aviation
15% Secured Debt 123 3,100 5 5 3,100
Partners, LLC
Warrants — 2,540 — — 2,540

Marine Shelters Holdings, LLC
12% PIK Secured Debt 285 8,870 285 245 8,910
(LoneStar Marine Shelters)
Preferred Member Units — 4,881 — 1,080 3,801

MH Corbin Holding LLC
10% Secured Debt 358 13,869 7 175 13,701
Preferred Member Units 35 6,000 — — 6,000

NAPCO Precast, LLC
Prime Plus 2.00% (Floor 7.00%) 79 4,005 — 936 3,069
18% Secured Debt 214 4,924 — 453 4,471
Member Units 2 8,590 470 — 9,060

NRI Clinical Research, LLC
14% Secured Debt 173 4,539 12 108 4,443
Warrants — 340 40 — 380
Member Units — 1,342 80 — 1,422

OMi Holdings, Inc.
Common Stock — 13,640 930 — 14,570

Pegasus Research Group,
Member Units 221 6,840 1,190 — 8,030
LLC (Televerde)

River Aggregates, LLC
Zero Coupon Secured Debt 17 556 17 — 573
Member Units 115 3,830 260 — 4,090
Member Units 2,360 80 — 2,440

SoftTouch Medical Holdings LLC
LIBOR Plus 9.00% (Floor 1.00%) 192 8,010 65 — 8,075
Member Units — 5,710 1,770 — 7,480

Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
— — — — —

$ 12,615 $ 555,011 $ 19,023 $ 53,935 $ 520,099

Table of Contents
Company

Investment(1)
Amount of
Interest, Fee
or Dividends
Credited to
Income(2) December 31,
2015 Value Gross
Additions(3) Gross
Reductions(4) March 31,
2016
Fair Value
Investment(1)
Amount of
Interest,
Fees or
Dividends
Credited to
Income(2) December 31,
2016 Fair
Value Gross
Additions(3) Gross
Reductions(4) March 31,
2017 Fair
Value
Indianapolis Aviation Partners, LLC
15% Secured Debt 156 3,100 — — 3,100
Warrants — 2,649 61 — 2,710

Marine Shelters Holdings, LLC
12% PIK Secured Debt — 9,387 — 9,387 —
Preferred Member Units — — 100 100 —

MH Corbin Holding LLC
10% Secured Debt 335 13,197 8 175 13,030
Preferred Member Units 35 6,000 — — 6,000

NAPCO Precast, LLC
Prime Plus 2.00% (Floor 7.00%) 63 2,713 2 2 2,713
18% Secured Debt 181 3,952 3 3 3,952
Member Units 29 10,920 — — 10,920

NRI Clinical Research, LLC
LIBOR Plus 6.50% (Floor 1.50%) 10 200 200 — 400
14% Secured Debt 160 4,261 11 11 4,261
Warrants — 680 — — 680
Member Units — 2,462 — — 2,462

NuStep, LLC
12% Secured Debt 728 — 20,394 — 20,394
Preferred Member Units — — 10,200 — 10,200

OMi Holdings, Inc.
Common Stock 192 13,080 — — 13,080

Pegasus Research Group, LLC
Member Units 60 8,620 — 180 8,440

River Aggregates, LLC
Zero Coupon Secured Debt 19 627 19 — 646
Member Units — 4,600 — — 4,600
Member Units — 2,510 — — 2,510

SoftTouch Medical Holdings LLC
LIBOR Plus 9.00% (Floor 1.00%) 182 7,140 4 4 7,140
Member Units 155 9,170 — — 9,170

Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
— — — — —

$ 12,988 $ 594,282 $ 85,423 $ 21,466 $ 658,239

Affiliate Investments

AFG Capital Group, LLC
11% Secured Debt $ 382 $ 12,790 $ 18 $ — $ 12,808
Warrants

$
—
$
670
$
20
$
—
$
690
Warrants — 490 40 — 530
Member Units — 2,020 160 — 2,180 Member Units 7 2,750 100 — 2,850

Barfly Ventures, LLC
12% Secured Debt 529 4,042 4 94 3,952 12% Secured Debt 235 5,827 1,808 — 7,635
Options — — 470 470 Options — 490 — — 490
Warrants — 473 — 233 240 Warrants — 280 — — 280

BBB Tank Services, LLC
LIBOR Plus 9.50% (Floor 1.00%) 21 797 — — 797
15% Secured Debt 152 3,991 1 — 3,992
Member Units — 800 — — 800

Boss Industries, LLC
Preferred Member Units 43 2,586 43 179 2,450 Preferred Member Units 89 2,800 120 — 2,920

Bridge Capital Solutions
13% Secured Debt 249 6,890 110 — 7,000
Corporation
Warrants — 1,300 80 — 1,380
Bridge Capital Solutions Corporation
13% Secured Debt 307 5,610 63 — 5,673
Warrants — 3,370 — — 3,370
13% Secured Debt 33 1,000 — — 1,000
Preferred Member Units 25 1,000 — — 1,000

Buca C, LLC
LIBOR Plus 7.25% (Floor 1.00%) 546 25,299 231 — 25,530 LIBOR Plus 7.25% (Floor 1.00%) 494 22,671 21 1,634 21,058
Preferred Member Units 55 3,711 2,059 — 5,770 Preferred Member Units 57 4,660 58 728 3,990

CAI Software LLC
12% Secured Debt 139 4,661 4 325 4,340 12% Secured Debt 110 3,683 3 203 3,483
Member Units 12 1,000 300 — 1,300 Member Units 30 2,480 100 — 2,580

CapFusion, LLC
13% Secured Debt 150 — 8,302 — 8,302 13% Secured Debt 518 13,202 50 — 13,252
Warrants — — 1,200 — 1,200 Warrants — 1,200 — — 1,200

Chandler Signs Holdings, LLC
12% Secured Debt 178 — 4,456 — 4,456 12% Secured Debt 137 4,500 2 2 4,500
Class A Units — — 1,500 — 1,500 Class A Units 63 3,240 — — 3,240

Condit Exhibits, LLC
Member Units 17 1,010 — — 1,010

Congruent Credit Opportunities
LP Interests (Fund II) 250 2,834 — 1,185 1,649
Funds
LP Interests (Fund III) 205 12,024 — 121 11,903

Daseke, Inc.
12% Current / 2.5% PIK Secured Debt 799 21,253 155 20 21,388
Common Stock 22,660 — — 22,660

Dos Rios Partners
LP Interests (Fund) — 2,031 1,070 519 2,582
LP Interests (Fund A) — 648 340 — 988

East Teak Fine Hardwoods, Inc.
Common Stock 4 860 — — 860

East West Copolymer &
12% Secured Debt 298 9,463 7 — 9,470
Rubber, LLC
Warrants — 50 — — 50

EIG Traverse Co-Investment, L.P.
LP Interests 231 4,755 5,050 — 9,805

Freeport Financial Funds
LP Interests (Fund) 130 6,045 — 277 5,768
LP Interests (Fund III) 98 2,077 1,487 — 3,564

Gault Financial, LLC (RMB
10% Secured Debt 383 10,930 39 — 10,969
Capital, LLC)
Warrants — — — — —

Glowpoint, Inc.
8% Secured Debt 10 397 — — 397
12% Secured Debt 279 8,929 5 294 8,640
Common Stock — 3,840 — 830 3,010

Guerdon Modular Holdings, Inc.
LIBOR Plus 8.50% (Floor 1.00%) 15 (15 ) 961 — 946
13% Secured Debt 348 10,295 5 — 10,300
Common Stock 1,990 — 780 1,210

Houston Plating and
Member Units (24 ) 8,440 — 2,360 6,080
Coatings, LLC

I-45 SLF LLC
Member units 433 7,200 2,000 164 9,036

Indianhead Pipeline
12% Secured Debt 209 5,853 32 225 5,660
Services, LLC
Preferred Member Units 19 2,302 267 — 2,569
Warrants — — — — —
Member Units — — — — —

KBK Industries, LLC
12.5% Secured Debt 182 5,900 3 3 5,900
Member Units — 3,680 — 170 3,510

L.F. Manufacturing
Member Units — 1,485 185 — 1,670
Holdings, LLC

MPS Denver, LLC
Member Units — 1,130 — 290 840

OnAsset Intelligence, Inc.
12% PIK Secured Debt 123 4,006 123 — 4,129
Preferred Stock — 1,380 — — 1,380
Warrants — — — — —

OPI International Ltd.
10% Unsecured Debt 12 473 — — 473
Common Stock — 3,200 — — 3,200

Table of Contents
Company

Investment(1)
Amount of
Interest,
Fees or
Dividends
Credited to
Income(2) December 31,
2016 Fair
Value Gross
Additions(3) Gross
Reductions(4) March 31,
2017 Fair
Value
Condit Exhibits, LLC
Member Units 11 1,840 — — 1,840

Congruent Credit Opportunities Funds
LP Interests (Fund II) — 1,518 — 141 1,377
LP Interests (Fund III) 320 16,181 2,396 — 18,577

Daseke, Inc.
12% Current / 2.5% PIK Secured Debt 676 21,799 255 22,054 —
Common Stock — 24,063 — 24,063 —

Dos Rios Partners
LP Interests (Dos Rios Partners, LP) — 4,925 704 — 5,629
LP Interests (Dos Rios Partners—A, LP) — 1,444 207 — 1,651

Dos Rios Stone Products LLC
Class A Units — 2,070 — — 2,070

East Teak Fine Hardwoods, Inc.
Common Stock 29 860 — 110 750

East West Copolymer & Rubber, LLC
12% Current / 2% PIK Secured Debt — 8,630 — 6,390 2,240
Warrants — — — — —

EIG Fund Investments
LP Interests (EIG Global Private Debt fund-A, L.P.) 45 2,804 352 1,690 1,466
LP Interests (EIG Traverse Co-Investment, L.P.) 263 9,905 68 — 9,973

Freeport Financial Fund Investments
LP Interests (Freeport Financial SBIC 102 5,620 55 — 5,675
Fund LP)
LP Interests (Freeport First Lien Loan 195 4,763 2,796 52 7,507
Fund III LP)

Gault Financial, LLC (RMB Capital, LLC)
10.5% Secured Debt 326 11,079 1,017 146 11,950
Warrants — — — — —

Glowpoint, Inc.
12% Secured Debt 274 3,997 9 996 3,010
Common Stock — 2,080 190 — 2,270

Guerdon Modular Holdings, Inc.
13% Secured Debt 357 10,594 9 — 10,603
Preferred Stock — 1,140 — — 1,140
Common Stock — 80 — — 80

Hawk Ridge Systems, LLC
10% Secured Debt 255 9,901 4 — 9,905
Preferred Member Units 150 2,850 — — 2,850
Preferred Member Units — 150 — — 150

Houston Plating and Coatings, LLC
Member Units 1 4,000 230 — 4,230

I-45 SLF LLC
Member Units 691 14,586 1,321 — 15,907

Indianhead Pipeline Services, LLC
12% Secured Debt 727 5,079 563 225 5,417
Preferred Member Units 98 2,677 98 — 2,775
Warrants — — — — —
Member Units — — — — —

KBK Industries, LLC
10% Secured Debt 31 1,250 100 175 1,175
12.5% Secured Debt 188 5,889 3 — 5,892
Member Units — 2,780 — — 2,780

L.F. Manufacturing Holdings, LLC
Member Units — 1,380 — — 1,380

OnAsset Intelligence, Inc.
12% PIK Secured Debt 136 4,519 135 — 4,654
Preferred Stock — — — — —
Warrants — — — — —

OPI International Ltd.
10% Unsecured Debt 12 473 — — 473
Common Stock — 1,600 — 1,220 380

PCI Holding Company, Inc.
12% Secured Debt 400 13,000 10 10 13,000
Preferred Stock 172 5,370 170 — 5,540

Table of Contents

Company

Investment(1)
Amount of
Interest, Fee
or Dividends
Credited to
Income(2) December 31,
2015 Value Gross
Additions(3) Gross
Reductions(4) March 31,
2016
Fair Value
PCI Holding Company, Inc.
12% Secured Debt 134 — 12,870 — 12,870
Preferred Stock 142 4,887 142 939 4,090

Radial Drilling Services Inc.
12% Secured Debt 5 1,500 5 — 1,505
Warrants — — — — —

Rocaceia, LLC (Quality Lease
12% Secured Debt — 250 — — 250
and Rental Holdings, LLC)
Preferred Member Units — — — — —

Samba Holdings, Inc.
12.5% Secured Debt 791 24,662 32 932 23,762
Common Stock — 30,220 — — 30,220

Tin Roof Acquisition Company
12% Secured Debt 436 13,807 15 105 13,717
Class C Preferred Stock 63 2,477 62 — 2,539

UniTek Global Services, Inc.
LIBOR Plus 7.50% (Floor 1.00%) 61 2,812 — — 2,812
LIBOR Plus 8.50% (Floor 1.00%) 34 1,255 3 — 1,258
15% PIK Unsecured Debt 26 638 24 — 662
Preferred Stock — 5,540 260 — 5,800
Common Stock — — 1,120 — 1,120

Universal Wellhead Services
Class A Preferred Units — 3,000 — 980 2,020
Holdings, LLC

Volusion, LLC
10.5% Secured Debt 527 16,199 62 — 16,261
Preferred Member Units — 14,000 — — 14,000
Warrants — 1,400 — — 1,400

Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
— (4,515 ) — — —

$ 8,523 $ 350,519 $ 45,301 $ 11,025 $ 389,310

Company

Investment(1)
Amount of
Interest,
Fees or
Dividends
Credited to
Income(2) December 31,
2016 Fair
Value Gross
Additions(3) Gross
Reductions(4) March 31,
2017 Fair
Value
Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)
12% Secured Debt — 250 — — 250
Preferred Member Units — — — — —

Tin Roof Acquisition Company
12% Secured Debt 417 13,385 16 169 13,232
Class C Preferred Stock 68 2,738 69 — 2,807

UniTek Global Services, Inc.
LIBOR Plus 7.50% (Floor 1.00%) 113 5,021 1 1 5,021
LIBOR Plus 8.50% (Floor 1.00%) 22 824 2 — 826
15% PIK Unsecured Debt 30 745 28 — 773
Preferred Stock 434 6,410 434 224 6,620
Common Stock — 3,010 — 200 2,810

Universal Wellhead Services Holdings, LLC
Preferred Member Units — 720 — — 720
Member Units — 610 — — 610

Valley Healthcare Group, LLC
LIBOR Plus 12.50% (Floor 0.50%) 433 12,844 6 100 12,750
Preferred Member Units — 1,600 — — 1,600

Volusion, LLC
11.5% Secured Debt 645 15,298 141 — 15,439
Preferred Member Units — 14,000 — — 14,000
Warrants — 2,576 — 126 2,450

Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
— — — — —

$ 9,899 $ 375,948 $ 13,735 $ 60,659 $ 329,024

This schedule should be read in conjunction with Main Street's consolidated financial statements, including the consolidated schedule of investments and notes to the consolidated financial statements.
(1)
The principal amount, the ownership detail for equity investments and if the investment is income producing is included in the consolidated schedule of investments.

(2)
Represents the total amount of interest, fees and dividends credited to income for the portion of the period for which an investment was included in Control or Affiliate categories, respectively. For investments transferred between Control and Affiliate categories during the period, any income or investment balances related to the time period it was in the category other than the one shown at ~~period-end~~period end is included in "Amounts from investments transferred from other 1940 Act classifications during the ~~period".~~period."

(3)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in net unrealized depreciation as well as the movement of an existing portfolio company into this category and out of a different category.

(4)
Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in net unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

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Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
        The information in this section contains forward-looking statements that involve risks and uncertainties. Please see "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, ~~2015,~~2016, filed with the Securities and Exchange Commission (the "SEC") on February ~~26, 2016,~~24, 2017, for a discussion of the uncertainties, risks and assumptions associated with these statements. You should read the following discussion in conjunction with the consolidated financial statements and related notes and other financial information included in the Annual Report on Form 10-K for the year ended December 31, ~~2015.~~2016.
ORGANIZATION
        Main Street Capital Corporation ("MSCC") is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ("LMM") companies and debt capital to middle market ("Middle Market") companies. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in ~~diverse~~a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its LMM portfolio. MSCC and its consolidated subsidiaries invest primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.
        MSCC was formed in March 2007 to operate as an internally managed business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF") ~~and~~, Main Street Capital II, LP ("MSC II") and ~~together~~Main Street Capital III, LP ("MSC III" and, collectively with MSMF and MSC II, the "Funds"), and each of their general partners. The Funds are each licensed as a Small Business Investment Company ("SBIC") by the United States Small Business Administration ("SBA"). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.
        MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries or their portfolio companies ("External Parties") and ~~receive~~receives fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission ("SEC") to allow the External Investment Manager to register as a registered investment adviser ~~("RIA")~~ under the Investment Advisers Act of 1940, as ~~amended (the "Advisers Act").~~amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements.
        MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.
        MSCC has certain direct and indirect wholly owned subsidiaries that have elected to be taxable entities (the "Taxable Subsidiaries"). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes. The External Investment Manager is also a direct wholly owned subsidiary that has elected to

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be a taxable entity. The Taxable Subsidiaries and the External Investment Manager are each taxed at their normal corporate tax rates based on their taxable income.
        Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our," the "Company" and "Main Street" refer to MSCC and its consolidated subsidiaries, which include the Funds and the Taxable Subsidiaries.
OVERVIEW
        Our principal investment objective is to maximize our portfolio's total return by generating current income from our debt investments and capital appreciation from our equity and ~~equity related~~equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. Our LMM companies generally have annual revenues between $10 million and $150 million, and our LMM portfolio investments generally range in size from $5 million to $50 million. Our Middle Market investments are made in businesses that are generally larger in size than our LMM portfolio companies, with annual revenues typically between $150 million and $1.5 billion, and our Middle Market investments generally range in size from $3 million to $15 million. Our private loan ("Private Loan") portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio.
        We seek to fill the financing gap for LMM businesses, which, historically, have had more limited access to financing from commercial banks and other traditional sources. The underserved nature of the LMM creates the opportunity for us to meet the financing needs of LMM companies while also negotiating favorable transaction terms and equity participations. Our ability to invest across a company's capital structure, from secured loans to equity securities, allows us to offer portfolio companies a comprehensive suite of financing options, or a "one stop" financing solution. Providing customized, "one stop" financing solutions is important to LMM portfolio companies. We generally seek to partner directly with entrepreneurs, management teams and business owners in making our investments. Our LMM portfolio debt investments are generally secured by a first lien on the assets of the portfolio company and typically have a term of between five and seven years from the original investment date. ~~We believe that our LMM investment strategy has limited correlation to the broader debt and equity markets.~~
        Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of ~~interest bearing~~interest-bearing debt securities in privately held companies that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have an expected duration of between three and seven years from the original investment date.
        Our Private Loan portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our Private Loan portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date.
        Our other portfolio ("Other Portfolio") investments primarily consist of investments which are not consistent with the typical profiles for our LMM, Middle Market or Private Loan portfolio investments, including investments which may be managed by third parties. In our Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.

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        Our external asset management business is conducted through the External Investment Manager. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed. We have entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with HMS Income Fund, Inc. ("HMS Income"). Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities.
        The following tables provide a summary of our investments in the LMM, Middle Market and Private Loan portfolios as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager which are discussed further below):

As of March 31, 2016 As of March 31, 2017

LMM(a) Middle
Market Private
Loan LMM(a) Middle Market Private Loan

(dollars in millions)
(dollars in millions)

Number of portfolio companies
72 84 42 73 69 49
Fair value
$ 860.7 $ 579.5 $ 271.3 $ 886.6 $ 568.8 $ 384.2
Cost
$ 694.5 $ 636.3 $ 294.8 $ 772.1 $ 588.9 $ 403.7
% of portfolio at cost—debt
70.9% 98.0% 93.7% 67.6% 96.9% 94.0%
% of portfolio at cost—equity
29.1% 2.0% 6.3% 32.4% 3.1% 6.0%
% of debt investments at cost secured by first priority lien
91.7% 85.4% 86.7% 96.1% 88.8% 90.2%
Weighted-average annual effective yield(b)
12.4% 8.1% 9.6% 12.2% 8.6% 9.6%
Average EBITDA(c)
$ 6.1 $ 94.2 $ 13.7 $ 4.6 $ 95.5 $ 24.8
(a)
At March 31, ~~2016,~~2017, we had equity ownership in approximately ~~96%~~99% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately ~~35%~~37%.

(b)
The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2017, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect our expenses or any sales load paid by an investor.

(c)
The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, one Middle Market portfolio company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

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As of December 31, 2016

LMM(a) Middle Market Private Loan

(dollars in millions)

Number of portfolio companies
73 78 46
Fair value
$ 892.6 $ 630.6 $ 342.9
Cost
$ 760.3 $ 646.8 $ 357.7
% of portfolio at cost—debt
69.1% 97.2% 93.5%
% of portfolio at cost—equity
30.9% 2.8% 6.5%
% of debt investments at cost secured by first priority lien
92.1% 89.1% 89.0%
Weighted-average annual effective yield(b)
12.5% 8.5% 9.6%
Average EBITDA(c)
$ 5.9 $ 98.6 $ 22.7
(a)
At December 31, 2016, we had equity ownership in approximately 99% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 36%.

(b)
The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2016, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect our expenses or any sales load paid by an investor.

(c)
The average EBITDA is calculated using a simple average for the LMM portfolio and a ~~weighted average~~weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, ~~four~~one Middle Market portfolio ~~companies~~company and ~~six Private Loan portfolio companies, as~~

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~~EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.~~

As of December 31, 2015

LMM(a) Middle
Market Private
Loan

(dollars in millions)

Number of portfolio companies
71 86 40
Fair value
$ 862.7 $ 586.9 $ 248.3
Cost
$ 685.6 $ 637.2 $ 268.6
% of total investments at cost—debt
70.4% 98.3% 94.3%
% of total investments at cost—equity
29.6% 1.7% 5.7%
% of debt investments at cost secured by first priority lien
91.8% 86.6% 87.3%
Weighted-average annual effective yield(b)
12.2% 8.0% 9.5%
Average EBITDA(c)
$ 6.0 $ 98.8 $ 13.1
~~(a)~~
~~At December 31, 2015, we had equity ownership in approximately 96% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 36%.~~

~~(b)~~
The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31 2015, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect our expenses or any sales load paid by an investor.

~~(c)~~
The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, three ~~Middle Market portfolio companies and six~~ Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio ~~companies, and those portfolio companies whose primary purpose is to own real estate.~~companies.
        As of March 31, ~~2016,~~2017, we had Other Portfolio investments in ten companies, collectively totaling approximately ~~$78.7~~$106.3 million in fair value and approximately ~~$86.6~~$111.8 million in cost basis and which comprised approximately ~~4.3%~~5.4% of our Investment Portfolio (as defined in "—Critical Accounting Policies—Basis of Presentation" below) at fair value. As of December 31, ~~2015,~~2016, we had Other Portfolio investments in ten companies, collectively totaling approximately ~~$74.8~~$100.3 million in fair value and approximately ~~$75.2~~$107.1 million in cost basis and which comprised approximately ~~4.2%~~5.0% of our Investment Portfolio at fair value.
        As previously discussed, the External Investment Manager is a wholly owned subsidiary that is treated as a portfolio investment. As of March 31, 2017, there was no cost basis in this investment and the investment had a fair value of approximately $33.5 million, which comprised approximately 1.7% of our Investment Portfolio at fair value. As of December 31, 2016, there was no cost basis in this investment and the investment had a fair value of ~~$27.8~~approximately $30.6 million, which comprised ~~1.5% of our Investment Portfolio at fair value. As of December 31, 2015, there was no cost basis in this investment and the investment had a fair value of $27.3 million, which comprised~~approximately 1.5% of our Investment Portfolio at fair value.
        Our portfolio investments are generally made through MSCC and the Funds. MSCC and the Funds share the same investment strategies and criteria, although they are subject to different regulatory regimes. An investor's return in MSCC will depend, in part, on the Funds' investment returns as they are wholly owned subsidiaries of MSCC.

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        The level of new portfolio investment activity will fluctuate from period to period based upon our view of the current economic fundamentals, our ability to identify new investment opportunities that meet our investment criteria, and our ability to consummate the identified opportunities. The level of new investment activity, and associated interest and fee income, will directly impact future investment income. In addition, the level of dividends paid by portfolio companies and the portion of our portfolio

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debt investments on non-accrual status will directly impact future investment income. While we intend to grow our portfolio and our investment income over the long term, our growth and our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or losses and unrealized appreciation or depreciation on our investments will also fluctuate depending upon portfolio activity, economic conditions and the performance of our individual portfolio companies. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results.
        Because we are internally managed, we do not pay any external investment advisory fees, but instead directly incur the operating costs associated with employing investment and portfolio management professionals. We believe that our internally managed structure provides us with a beneficial operating expense structure when compared to other publicly traded and privately held investment firms which are externally managed, and our internally managed structure allows us the opportunity to leverage our non-interest operating expenses as we grow our Investment Portfolio. For ~~each of~~ the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was 1.6% and 1.4%, respectively, on an annualized basis.
        During May 2012, we entered into an investment sub-advisory agreement with HMS Adviser, LP ("HMS Adviser"), which is the investment advisor to HMS Income, a ~~non-publicly traded~~non-listed BDC, ~~whose registration statement on Form N-2 was declared effective by the SEC in June 2012,~~ to provide certain investment advisory services to HMS Adviser. In December 2013, after obtaining required no-action relief from the SEC to allow us to own a registered investment adviser, we assigned the sub-advisory agreement to the External Investment Manager since the fees received from such arrangement could otherwise have negative consequences on our ability to meet the source-of-income requirement necessary for us to maintain our RIC tax treatment. Under the investment sub-advisory agreement, the External Investment Manager is entitled to 50% of the base management fee and the incentive fees earned by HMS Adviser under its advisory agreement with HMS Income. Based upon several fee waiver agreements with HMS Income and HMS Adviser, the External Investment Manager did not begin accruing the base management fee and incentive fees, if any, until January 1, 2014. ~~Beginning January 1, 2016, the~~The External Investment Manager has conditionally agreed to waive a limited amount of the incentive fees otherwise ~~earned during the three months ended March 31, 2016.~~earned. During the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$2.3~~$2.6 million and ~~$1.4~~$2.3 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser.
        During April 2014, we received an exemptive order from the SEC permitting co-investments by us and HMS Income in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act. We have made, and in the future intend to continue to make, such co-investments with HMS Income in accordance with the conditions of the order. The order requires, among other things, that we and the External Investment Manager consider whether each such investment opportunity is appropriate for HMS Income and, if it is appropriate, to propose an allocation of the investment opportunity between us and HMS Income. Because the External Investment Manager may receive performance-based fee compensation from HMS Income, this may provide it an incentive to allocate opportunities to HMS Income instead of us. However, both we and the External Investment Manager have policies and procedures in place to manage this conflict.

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CRITICAL ACCOUNTING POLICIES
Basis of Presentation
        Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For each of the periods presented herein, our consolidated financial statements include the accounts of MSCC and its

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consolidated subsidiaries. The Investment Portfolio, as used herein, refers to all of our investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments, and the investment in the External Investment Manager, but excludes all "Marketable securities and idle funds investments". "Marketable securities and idle funds investments" are classified as financial instruments and are reported separately on our consolidated balance sheets and consolidated schedules of investments due to the nature of such investments.Manager. Our results of operations and cash flows for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016, and financial position as of March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, are presented on a consolidated basis. The effects of all intercompany transactions between us and our consolidated subsidiaries have been eliminated in consolidation.
        Our accompanying unaudited consolidated financial statements are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, ~~2015.~~2016. Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
        Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs and Accounting Standards Codification ("~~Codification" or "ASC"~~ASC") 946,Financial Services—Investment Companies ("ASC 946"), we are precluded from consolidating other entities in which we have equity investments, including those in which we have a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if we hold a controlling interest in an operating company that provides all or substantially all of its services directly to us or to any of our portfolio companies. Accordingly, as noted above, our consolidated financial statements include the financial position and operating results for the Funds and the Taxable Subsidiaries. Our consolidated financial statements also include the financial position and operating results for our wholly owned operating subsidiary, Main Street Capital Partners, LLC, ("MSCP"), as the wholly owned subsidiary provides all of its services directly or indirectly to Main Street or our portfolio companies. We have determined that all of our portfolio investments do not qualify for this exception, including the investment in the External Investment Manager. Therefore, our Investment Portfolio is carried on the consolidated balance sheet at fair value with any adjustments to fair value recognized as "Net Change in Unrealized Appreciation (Depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net Realized Gain (Loss)."

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Investment Portfolio Valuation
        The most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our Investment Portfolio and the related amounts of unrealized appreciation and depreciation. As of ~~both~~ March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, our Investment Portfolio valued at fair value represented approximately 95% and 96% of our total ~~assets.~~assets, respectively. We are required to report our investments at fair value. We follow the provisions of ~~FASB~~Financial Accounting Standards Board ("FASB") ASC 820,Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. ASC 820 requires us to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact. See "Note B.1.—Valuation of the Investment Portfolio"

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in the notes to consolidated financial statements for a detailed discussion of our investment portfolio valuation process and procedures.
        Due to the inherent uncertainty in the valuation process, our determination of fair value for our Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.
        Our Board of Directors has the final responsibility for overseeing, reviewing and approving, in good faith, our determination of the fair value for our Investment Portfolio and our valuation procedures, consistent with 1940 Act requirements. We believe our Investment Portfolio as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 approximates fair value as of those dates based on the markets in which we operate and other conditions in existence on those reporting dates.
Revenue Recognition
Interest and Dividend Income
        We record interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with our valuation policies, we evaluate accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding the debtor's ability to service the debt or other obligations, or if a loan or debt security is ~~fully impaired,~~ sold or written off, we remove it from non-accrual status.
Fee Income
        We may periodically provide services, including structuring and advisory services, to our portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into ~~interest~~ income over the life of the financing.

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Payment-in-Kind ("PIK") Interest and Cumulative Dividends
        We hold certain debt and preferred equity instruments in our Investment Portfolio that contain PIK interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though we may not have collected the PIK interest and cumulative dividends in cash. We stop accruing PIK interest and cumulative dividends and write off any accrued and uncollected interest and dividends in arrears when we determine that such

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PIK interest and dividends in arrears are no longer collectible. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~3.1%~~3.4% and ~~2.2%~~3.1%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~0.8%~~1.8% and ~~1.0%~~0.8%, respectively, of our total investment income was attributable to cumulative dividend income not paid currently in cash.
Share-Based Compensation
        We account for our share-based compensation plans using the fair value method, as prescribed by ASC 718,Compensation—Stock Compensation. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.
Income Taxes
        MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC's taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its "investment company taxable income" (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its ~~tax exempt~~tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible ~~U.S Federal~~U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the ~~U.S~~U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which ~~generated~~ such taxable ~~income.~~income was generated.
        The Taxable Subsidiaries primarily hold certain portfolio investments for us. The Taxable Subsidiaries permit us to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes and to continue to comply with the "source-income" requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with us for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in our consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. This

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~~income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements.~~
        MSCC's wholly owned subsidiary MSCP is included in our consolidated financial statements for financing reporting purposes. For tax purposes, MSCP has elected to be treated as a taxable entity, and therefore is not consolidated with MSCC for income tax purposes and is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The taxable income, or loss, of MSCP may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements.
        The Taxable Subsidiaries ~~and MSCP~~ use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided, if necessary, against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.
        Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income

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generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.
INVESTMENT PORTFOLIO COMPOSITION
        Our LMM portfolio investments primarily consist of secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Our LMM portfolio companies generally have annual revenues between $10 million and $150 million, and our LMM investments generally range in size from $5 million to $50 million. The LMM debt investments are typically secured by either a first or second priority lien on the assets of the portfolio company, generally bear interest at fixed rates, and generally have a term of between five and seven years from the original investment date. In most LMM portfolio companies, we receive nominally priced equity warrants and/or make direct equity investments in connection with a debt investment.
        Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio companies generally have annual revenues between $150 million and $1.5 billion, and our Middle Market investments generally range in size from $3 million to $15 million. Our Middle Market portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date.
        Our Private Loan portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our Private Loan portfolio debt investments are generally secured by either a first or second priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date.
        Our Other Portfolio investments primarily consist of investments which are not consistent with the typical profiles for LMM, Middle Market and Private Loan portfolio investments, including investments

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which may be managed by third parties. In the Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.
        Our external asset management business is conducted through the External Investment Manager. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed. We have entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with HMS Income. Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities. In the first quarter of 2014, we began allocating costs to the External Investment Manager pursuant to the sharing agreement. Our total expenses for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are net of expenses allocated to the External Investment Manager of ~~$1.2~~$1.5 million and ~~$0.8~~$1.2 million, respectively. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed. The total contribution of the External Investment Manager to our net investment income consists of the combination of the expenses allocated to the External Investment Manager and dividend income from the External Investment

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Manager. For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the total contribution to our net investment income was ~~$1.9~~$2.2 million and ~~$1.2~~$1.9 million, respectively.
        The following tables summarize the composition of our total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).
Cost:
March 31,
2016 December 31,
2015 March 31,
2017 December 31,
2016
First lien debt
75.3% 75.8% 76.6% 76.1%
Equity
13.4% 13.5% 15.6% 14.5%
Second lien debt
9.3% 8.7% 6.2% 7.7%
Equity warrants
0.9% 0.9% 1.0% 1.1%
Other
1.1% 1.1% 0.6% 0.6%

100.0% 100.0% 100.0% 100.0%

Fair Value:
March 31,
2016 December 31,
2015 March 31,
2017 December 31,
2016
First lien debt
66.2% 66.1% 69.6% 68.7%
Equity
24.2% 24.9% 23.2% 22.6%
Second lien debt
8.3% 7.7% 5.8% 7.2%
Equity warrants
0.6% 0.6% 0.8% 0.9%
Other
0.7% 0.7% 0.6% 0.6%

100.0% 100.0% 100.0% 100.0%

        Our LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments carry a number of risks including: (1) investing in companies which may have limited operating histories and financial resources; (2) holding investments that generally are not publicly traded and which may be subject to legal and other restrictions on resale; and (3) other risks common

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to investing in below investment grade debt and equity investments in our Investment Portfolio. Please see "Risk Factors—Risks Related to Our Investments" contained in our Form 10-K for the fiscal year ended December 31, ~~2015~~2016 and "Risk Factors" below for a more complete discussion of the risks involved with investing in our Investment Portfolio.
PORTFOLIO ASSET QUALITY
        We utilize an internally developed investment rating system to rate the performance of each LMM portfolio company and to monitor our expected level of returns on each of our LMM investments in relation to our expectations for the portfolio company. The investment rating system takes into consideration various factors, including each investment's expected level of returns, the collectability of our debt investments and the ability to receive a return of the invested capital in our equity investments, comparisons to competitors and other industry participants, the portfolio company's future outlook and other factors that are deemed to be significant to the portfolio company.
•
Investment Rating 1 represents a LMM portfolio company that is performing in a manner which significantly exceeds expectations.

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•
Investment Rating 2 represents a LMM portfolio company that, in general, is performing above expectations.

•
Investment Rating 3 represents a LMM portfolio company that is generally performing in accordance with expectations.

•
Investment Rating 4 represents a LMM portfolio company that is underperforming expectations. Investments with such a rating require increased monitoring and scrutiny by us.

•
Investment Rating 5 represents a LMM portfolio company that is significantly underperforming. Investments with such a rating require heightened levels of monitoring and scrutiny by us and involve the recognition of significant unrealized depreciation on such investment.
All new LMM portfolio investments receive an initial Investment Rating of 3.
        The following table shows the distribution of our LMM portfolio investments on the 1 to 5 investment rating scale at fair value as of March 31, ~~2016~~2017 and December 31, ~~2015:~~2016:

As of March 31, 2016 As of December 31, 2015 As of March 31, 2017 As of December 31, 2016
Investment Rating
Investments at
Fair Value Percentage of
Total Portfolio Investments at
Fair Value Percentage of
Total Portfolio Investments at
Fair Value Percentage of
Total Portfolio Investments at
Fair Value Percentage of
Total Portfolio

(dollars in thousands)

(dollars in thousands)

1
$ 304,597 35.5% $ 332,606 38.6% $ 241,988 27.3% $ 253,420 28.4%
2
231,931 26.9% 143,268 16.6% 195,294 22.0% 258,085 28.9%
3
211,116 24.5% 277,160 32.1% 354,367 40.0% 294,807 33.0%
4
105,838 12.3% 107,926 12.5% 82,485 9.3% 75,433 8.5%
5
7,264 0.8% 1,750 0.2% 12,425 1.4% 10,847 1.2%

Total
$ 860,746 100.0% $ 862,710 100.0% $ 886,559 100.0% $ 892,592 100.0%

        Based upon our investment rating system, the weighted-average rating of our LMM portfolio was approximately ~~2.2~~2.4 and 2.3 as of ~~both~~ March 31, ~~2016~~2017 and December 31, ~~2015.~~2016, respectively.
        As of March 31, 2017, our total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.2% of its fair value and 2.7% of its cost. As of December 31, 2016, our total Investment Portfolio had ~~six~~four investments on non-accrual status, which comprised approximately ~~0.5%~~0.6% of its fair value and ~~3.8% of our cost . As of December 31, 2015, our total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.4%~~3.0% of its ~~fair value and 3.7% of its~~ cost.

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        The operating results of our portfolio companies are impacted by changes in the broader fundamentals of the United States economy. In the event that the United States economy contracts, it is likely that the financial results of ~~small-to~~small to mid-sized companies, like those in which we invest, could experience deterioration or limited growth from current levels, which could ultimately lead to difficulty in meeting their debt service requirements, ~~and~~to an increase in ~~defaults.~~defaults on our debt investments and to difficulty in maintaining historical dividend payment rates on our equity investments. Consequently, we can provide no assurance that the performance of certain portfolio companies will not be negatively impacted by economic cycles or other conditions, which could also have a negative impact on our future results.

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DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
Comparison of the three months ended March 31, ~~2016~~2017 and March 31, ~~2015~~2016

Three Months Ended
March 31, Net Change Three Months Ended
March 31, Net Change

2016 2015 Amount % 2017 2016 Amount %

(dollars in thousands)
(dollars in thousands)

Total investment income
$ 42,006 $ 37,179 $ 4,827 13% $ 47,889 $ 42,006 $ 5,883 14%
Total expenses
(14,842 ) (13,688 ) (1,154 ) 8% (16,723 ) (14,842 ) (1,881 ) 13%

Net investment income
27,164 23,491 3,673 16% 31,166 27,164 4,002 15%
Net realized gain (loss) from investments
13,603 (2,120 ) 15,723
Net realized gain from investments
27,565 13,603 13,962
Net realized loss from SBIC debentures
(5,217 ) — (5,217 )
Net change in net unrealized appreciation (depreciation) from:

Portfolio investments
(27,529 ) 14,204 (41,733 ) (22,091 ) (27,529 ) 5,438
SBIC debentures and marketable securities and idle funds
1,311 (442 ) 1,753 5,665 1,311 4,354

Total net change in net unrealized appreciation (depreciation)
(26,218 ) 13,762 (39,980 )
Total net change in net unrealized depreciation
(16,426 ) (26,218 ) 9,792
Income tax benefit (provision)
2,263 291 1,972 (5,638 ) 2,263 (7,901 )

Net increase in net assets resulting from operations
$ 16,812 $ 35,424 $ (18,612 ) –53% $ 31,450 $ 16,812 $ 14,638 87%

Three Months Ended
March 31, Net Change Three Months Ended
March 31, Net Change

2016 2015 Amount % 2017 2016 Amount %

(dollars in thousands, except per share
amounts)
(dollars in thousands, except per share
amounts)

Net investment income
$ 27,164 $ 23,491 $ 3,673 16% $ 31,166 $ 27,164 $ 4,002 15%
Share-based compensation expense
1,589 1,263 326 26% 2,269 1,589 680 43%

Distributable net investment income(a)
$ 28,753 $ 24,754 $ 3,999 16% $ 33,435 $ 28,753 $ 4,682 16%

Net investment income per share—Basic and diluted
$ 0.57 $ 0.54 $ 0.03 6%

Distributable net investment income per share—Basic and diluted(a)
$ 0.57 $ 0.54 $ 0.03 6% $ 0.61 $ 0.57 $ 0.04 7%

(a)
Distributable net investment income is net investment income as determined in accordance with U.S. GAAP, excluding the impact of share-based compensation expense which is non-cash in nature. We believe presenting distributable net investment income and related per share amounts is useful and appropriate supplemental disclosure of information for analyzing our financial performance since share-based compensation does not require settlement in cash. However, distributable net investment income is a non-U.S. GAAP measure and should not be considered as a replacement to net investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, distributable net investment income should be reviewed only in connection with such U.S. GAAP measures in analyzing our financial performance. A reconciliation of net

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investment income in accordance with U.S. GAAP to distributable net investment income is presented in the table above.
Investment Income
        For the three months ended March 31, ~~2016,~~2017, total investment income was ~~$42.0~~$47.9 million, a ~~13%~~14% increase over the ~~$37.2~~$42.0 million of total investment income for the corresponding period of ~~2015.~~2016. This comparable period increase was principally attributable to (i) a ~~$2.1~~$6.3 million increase in interest income primarily related to higher average levels of portfolio debt investments and increased activities involving

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existing Investment Portfolio debt investments and (ii) a ~~$2.5~~$0.4 million increase in fee income, partially offset by a $0.6 million decrease in dividend income from Investment Portfolio equity ~~investments and (iii) a $0.5 million increase in fee income.~~investments. The ~~$4.8~~$5.9 million increase in total investment income in the three months ended March 31, ~~2016~~2017 includes ~~a consistent amount~~an increase of ~~investment income from~~$2.7 million related to higher accelerated prepayment, repricing and ~~repricing~~other activity for certain Investment Portfolio debt investments when compared to the same period in ~~2015.~~2016.
Expenses
        For the three months ended March 31, ~~2016,~~2017, total expenses increased to ~~$14.8~~$16.7 million from ~~$13.7~~$14.8 million for the corresponding period of ~~2015.~~2016. This comparable period increase in operating expenses was principally attributable to (i) a $0.7 million increase in share-based compensation expense, (ii) a $0.6 million increase in compensation expense related to increases in the number of personnel, base compensation levels and incentive compensation accruals, (iii) a $0.5 million increase in general and administrative expenses, primarily related to non-recurring professional fees and other expenses incurred on certain potential new portfolio investment opportunities which were terminated during the due diligence and legal documentation processes, and (iv) a $0.4 million increase in interest expense, primarily due to ~~an increase in interest expense on the Credit Facility generally due to~~ the higher average interest rate and balance outstanding on ~~the~~our Credit ~~facility~~Facility in the three months ended March 31, 2016 when compared to the prior year, (ii) a $0.4 million increase in general and other administrative expenses, (iii) a $0.3 million increase in compensation expense related primarily to increases in the number of personnel and base compensation levels and (iv) a $0.3 million increase in share-based compensation expense,2017, with these increases partially offset by a ~~$0.3~~$0.4 million increase in the expenses allocated to the External Investment Manager, ~~(see further discussion in "Overview"),~~ in each case when compared to the same period in the prior year. For ~~each of~~ the three months ended March 31, ~~2016 and 2015,~~2017, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was 1.6% on an annualized basis, compared to 1.4% on an annualized ~~basis.~~basis for the three months ended March 31, 2016 and 1.5% for the year ended December 31, 2016.
Net Investment Income
        Net investment income for the three months ended March 31, 2017 was $31.2 million, or a 15% increase, compared to net investment income of $27.2 million for the corresponding period of 2016. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses as discussed above.
Distributable Net Investment Income
        For the three months ended March 31, ~~2016,~~2017, distributable net investment income increased 16% to ~~$28.8~~$33.4 million, or ~~$0.57~~$0.61 per share, compared with ~~$24.8~~$28.8 million, or ~~$0.54~~$0.57 per share, in the corresponding period of ~~2015.~~2016. The increase in distributable net investment income was primarily due to the higher level of total investment income, partially offset by higher operating expenses both as discussed above. Distributable net investment income on a per share basis for the three months ended March 31, 2017 reflects (i) an increase of approximately $0.05 per share from the comparable period in 2016 ~~reflects~~attributable to the net increase in the comparable levels of accelerated prepayment, repricing and other activity for certain Investment Portfolio debt investments and (ii) a greater number of average shares outstanding compared to the corresponding period in ~~2015~~2016 primarily due to ~~the March 2015 equity offering,~~ shares issued through the ATM Program (as defined in "—Liquidity and Capital Resources—Capital Resources" below) ~~and shares issued pursuant to our dividend reinvestment plan.~~
~~Net Investment Income~~
        Net investment income for the three months ended March 31, 2016 was $27.2 million, or a 16% increase, compared to net investment income of $23.5 million for the corresponding period of 2015. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses as discussed above..
Net Increase in Net Assets Resulting from Operations
        The net increase in net assets resulting from operations during the three months ended March 31, ~~2016~~2017 was $31.5 million, or $0.57 per share, compared with $16.8 million, or $0.33 per share, ~~compared with $35.4 million, or $0.77 per share,~~ during the

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three months ended March 31, ~~2015.~~2016. This ~~$18.6~~$14.6 million ~~decrease~~increase from the same period in the prior year ~~period~~ was primarily the result of (i) a ~~$40.0~~$14.0 million ~~decrease~~increase in the net realized gain (loss) from investments, (ii) a $9.8 million improvement in net change in unrealized appreciation (depreciation) from portfolio investments and SBIC debentures, including accounting reversals relating to realized gains (losses), from net unrealized depreciation of $26.2 million for the three months ended March 31, 2016 ~~partially offset by (i)~~to a ~~$3.7~~net

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unrealized depreciation of $16.4 million for the three months ended March 31, 2017, and (iii) a $4.0 million increase in net investment income as discussed above, partially offset by (i) a $5.2 million realized loss on the repayment of SBIC debentures outstanding at MSC II which had previously been accounted for on the fair value method of accounting and (ii) a ~~$15.7~~$7.9 million increase in the ~~net realized gain (loss)~~income tax provision from ~~investments from a net realized loss~~an income tax benefit of ~~$2.1 million during the three months ended March 31, 2015 to a net realized gain of $13.6~~$2.3 million for the three months ended March 31, 2016 ~~and (iii) a $2.0 million increase in the~~to an income tax ~~benefit from the prior year. The net realized gain~~provision of ~~$13.6~~$5.6 million for the three months ended March 31, ~~2016~~2017. The net realized gain from investments of $27.6 million for the three months ended March 31, 2017 was primarily the result of (i) the net realized gain of $22.3 million on the exit of atwo LMM investments, (ii) the realized gain of $2.6 million on the exit of one Private Loan investment ~~totaling $14.4 million~~ and ~~(ii)~~(iii) the net realized gain of ~~$1.3~~$2.5 million due to activity in our Other ~~Portfolio, partially offset by (i) the net~~Portfolio. The realized loss of ~~$1.6~~$5.2 million on the ~~exit~~repayment of ~~a Marketable securities and idle funds investment and (ii)~~SBIC debentures is related to the ~~net~~previously recognized bargain purchase gain resulting from recording the MSC II debentures at fair value on the date of the acquisition of MSC II in 2010. The effect of the realized loss is offset by the reversal of ~~$0.9 million relating~~all previously recognized unrealized depreciation on these SBIC debentures due to fair value adjustments since the ~~restructure~~date of ~~a Middle Market investment.~~the acquisition.
        The following table provides a summary of the total net unrealized depreciation of ~~$26.2~~$16.4 million for the three months ended March 31, ~~2016:~~2017:

Three Months Ended March 31, 2016 Three Months Ended March 31, 2017

LMM(a) Middle Market Private Loan Other(b) Total LMM(a) Middle Market Private Loan Other(b) Total

(dollars in millions)
(dollars in millions)

Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized gains/losses recognized during period
$ (14.4 ) $ 2.9 $ — $ (1.2 ) $ (12.7 )
Accounting reversals of net unrealized appreciation recognized in prior periods due to net realized gains recognized during period
$ (20.0 ) $ (1.8 ) $ (1.4 ) $ (1.1 ) $ (24.3 )
Net unrealized appreciation (depreciation) relating to portfolio investments
3.5 (9.3 ) (3.2 ) (5.8 ) (14.8 ) 2.2 (2.0 ) (3.3 ) 5.3 2.2

Total net change in unrealized appreciation (depreciation) relating to portfolio investments
$ (10.9 ) $ (6.4 ) $ (3.2 ) $ (7.0 ) $ (27.5 ) $ (17.8 ) $ (3.8 ) $ (4.7 ) $ 4.2 $ (22.1 )

Net unrealized appreciation relating to marketable securities
1.4
Unrealized depreciation relating to SBIC debentures(c)
(0.1 )
Net unrealized appreciation relating to SBIC debentures(c)
5.7

Total net change in unrealized appreciation (depreciation)
$ (26.2 )
Total net change in unrealized depreciation
$ (16.4 )

(a)
LMM includes unrealized appreciation on 2822 LMM portfolio investments and unrealized depreciation on 2115 LMM portfolio investments.

(b)
Other includes ~~$6.3 million of unrealized depreciation relating to the Other Portfolio offset by $0.5~~$2.9 million of unrealized appreciation relating to the External Investment ~~Manager.~~Manager and $2.4 million of net unrealized appreciation relating to the Other Portfolio.

(c)
Relates to unrealized ~~depreciation~~appreciation on the SBIC debentures held by MSC II which are accounted for on a fair value ~~basis.~~basis and includes $6.0 million of accounting reversals resulting from the reversal of previously recognized unrealized depreciation recorded since the date of acquisition of MSC II on the debentures repaid due to fair value adjustments since such date, partially offset by $0.3 million of current period unrealized depreciation on the remaining SBIC debentures.
        The income tax ~~benefit~~provision for the three months ended March 31, ~~2016~~2017 of ~~$2.3~~$5.6 million principally consisted of ~~(i)~~ a deferred tax ~~benefit~~provision of ~~$2.6~~$4.4 million, which is primarily the result of the net activity relating to our portfolio investments held in our Taxable Subsidiaries, including changes in net operating loss carryforwards, changes in net unrealized appreciation/depreciation and other temporary ~~book~~book-tax differences, as well as other current tax ~~differences, partially offset by~~expense of $1.3 million related to (i) a $0.9 million

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accrual for excise tax on our estimated undistributed taxable income and (ii) other current tax expense of $0.4 million related to accruals for U.S. federal and state income ~~and excise taxes, state and other~~ taxes.

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Liquidity and Capital Resources
Cash Flows
        For the three months ended March 31, ~~2016,~~2017, we experienced a net ~~decrease~~increase in cash and cash equivalents in the amount of ~~$3.1~~approximately $9.1 million, which is the ~~net~~ result of ~~$3.8~~approximately $55.8 million of cash ~~used for~~provided by our operating activities and ~~$0.7~~approximately $46.6 million of cash ~~provided~~used by financing activities.
        During the period, we ~~used $3.8~~generated $55.8 million of cash ~~for~~from our operating activities, which resulted primarily from (i) cash flows we generated from the operating profits earned through our operating activities totaling ~~$25.9~~$26.9 million, which is our ~~$28.8~~$33.4 million of distributable net investment income, excluding the non-cash effects of the accretion of unearned income of ~~$1.9~~$4.7 million, payment-in-kind interest income of ~~$1.3~~$1.6 million, cumulative dividends of ~~$0.3~~$0.9 million and the amortization expense for deferred financing costs of ~~$0.6~~$0.7 million, (ii) cash uses totaling ~~$121.2~~$192.6 million ~~which primarily resulted~~consisting of (a) $186.9 million from ~~(a)~~ the funding of new portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, ~~2015, which together total $113.9 million,~~2016, (b) ~~$5.5~~$4.1 million related to decreases in payables and accruals and ~~(d)~~(c) $1.6 million related to increases in other assets ~~of $1.8 million,~~ and (iii) cash proceeds totaling ~~$91.5~~$221.5 million ~~from (a) $90.9 million in cash proceeds~~which resulted from the sales and repayments of debt investments and sales of ~~equity investments~~ and ~~(b) $0.6 million~~return on capital of ~~cash proceeds from the sale of Marketable securities and idle funds~~equity investments.
        During the three months ended March 31, ~~2016, $0.7~~2017, $46.6 million in cash was ~~provided by~~used in financing activities, which principally consisted of (i) ~~$15.0 million in net cash proceeds from the Credit Facility and (ii) $9.8 million in net cash proceeds from the ATM Program, partially offset by (iii) $24.0~~$28.6 million in cash dividends paid to stockholders, ~~and~~(ii) $55.0 million in net repayments on the Credit Facility, (iii) $25.2 million in repayment of SBIC debentures, (iv) ~~$0.1~~$0.6 million for payment of deferred loan costs, SBIC debenture fees and other ~~costs.~~costs and (v) $0.3 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock, partially offset by (i) $37.7 million in net cash proceeds from the ATM Program (described below) and (ii) $25.4 million in cash proceeds from issuance of SBIC debentures.
Capital Resources
        As of March 31, ~~2016,~~2017, we had ~~$17.2~~$33.6 million in cash and cash equivalents ~~$1.5 million in Marketable securities~~ and ~~idle funds investments and $249.0~~$267.0 million of unused capacity under the Credit Facility, which we maintain to support our investment and operating activities. As of March 31, ~~2016,~~2017, our net asset value totaled ~~$1,077.0~~$1,243.9 million, or ~~$21.18~~$22.44 per share.
        The Credit Facility, which provides additional liquidity to support our investment and operational activities, ~~includes total~~provides for commitments of $555.0 million from a diversified group of fourteen lenders and matures in September ~~2020.~~2021. The Credit Facility also contains an accordion feature which allows us to increase the total commitments under the facility to up to $750.0 million from new and existing lenders on the same terms and conditions as the existing commitments.
        Borrowings under the Credit Facility bear interest, subject to our election, on a per annum basis at a rate equal to the applicable LIBOR rate ~~(0.44%~~(0.98% as of March 31, ~~2016)~~2017) plus (i) 1.875% (or the applicable base rate (Prime Rate of ~~3.5%~~4.00% as of March 31, ~~2016)~~2017) plus 0.875%) as long as we maintain an investment grade rating and meet certain agreed upon excess collateral and maximum leverage requirements, (ii) 2.0% (or the applicable base rate plus 1.0%) if we maintain an investment grade rating but do not meet certain excess collateral and maximum leverage requirements or (iii) 2.25% (or the applicable base rate plus 1.25%) if we do not maintain an investment grade rating. We pay unused commitment fees of 0.25% per annum on the unused lender commitments under the Credit Facility. The Credit Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the

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equity ownership or assets of the Funds and the External Investment Manager. The Credit Facility contains certain affirmative and negative covenants, including but not limited to: (i) maintaining a minimum availability of at least 10% of the borrowing base, (ii) maintaining an interest coverage ratio of at least 2.0 to 1.0, (iii) maintaining an asset coverage ratio of at least 1.5 to 1.0 and (iv) maintaining a minimum tangible net worth. The Credit Facility is provided on a revolving basis through its final

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maturity date in September ~~2020,~~2021, and contains two, one-year extension options which could extend the final maturity by up to two years, subject to certain conditions, including lender approval. As of March 31, ~~2016,~~2017, we had ~~$306.0~~$288.0 million in borrowings outstanding under the Credit Facility, the interest rate on the Credit Facility was ~~2.3%~~2.7% and we were in compliance with all financial covenants of the Credit Facility.
        Due to each of the Funds' status as a licensed SBIC, we have the ability to issue, through the Funds, debentures guaranteed by the SBA at favorable interest rates and favorable terms and ~~conditions. In addition, in December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the~~conditions up to a maximum amount of ~~SBA-guaranteed debentures that affiliated~~$350.0 million through our three existing SBIC ~~funds can have outstanding from $225.0~~licenses. During the three months ended March 31, 2017, we issued $25.4 million ~~to $350.0 million. This new legislation may allow us to issue additional~~of SBIC debentures ~~subject~~and opportunistically prepaid $25.2 million of our existing SBIC debentures as part of an effort to ~~SBA approval, above~~manage the ~~$225.0~~maturity dates of our oldest SBIC debentures, leaving $109.8 million ~~that we have outstanding as~~ of ~~March 31, 2016. We announced on March 29, 2016 that we were issued a "green light" or "go forth" letter from the SBA inviting us to continue~~remaining capacity under our ~~application process to obtain a license to form and operate a third~~ SBIC ~~subsidiary to gain access to the additional SBIC debentures.~~licenses. Debentures guaranteed by the SBA have fixed interest rates that equal prevailing 10-year Treasury Note rates plus a market spread and have a maturity of ten years with interest payable ~~semi-annually.~~semiannually. The principal amount of the debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. Main Street expects to issue new SBIC debentures under the SBIC program in the future in an amount up to the regulatory maximum amount of $350.0 million for affiliated SBIC funds. On March 31, ~~2016,~~2017, through our ~~two~~three wholly owned SBICs, we had ~~$225.0~~$240.2 million of outstanding SBIC debentures guaranteed by the SBA, which bear a weighted-average annual fixed interest rate of approximately ~~4.2%~~3.8%, paid ~~semi-annually,~~semiannually, and mature ten years from issuance. The first maturity related to our SBIC debentures ~~does not occur until 2017,~~occurs in 2019, and the weighted-average remaining ~~weighted-average~~ duration is approximately ~~5.3~~5.7 years as of March 31, ~~2016.~~2017.
        In April 2013, we issued $92.0 million, including the underwriters' full exercise of their over-allotment option, in aggregate principal amount of the 6.125% ~~Notes.~~Notes (the "6.125% Notes"). The 6.125% Notes are unsecured obligations and rank pari passu with our current and future unsecured indebtedness; senior to any of our future indebtedness that expressly provides it is subordinated to the 6.125% Notes; effectively subordinated to all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under our Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without limitation, the indebtedness of the Funds. The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in part at any time or from time to time at our option on or after April 1, 2018. We may from time to time repurchase 6.125% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2016,~~2017, the outstanding balance of the 6.125% Notes was $90.7 million.
        The indenture governing the 6.125% Notes (the "6.125% Notes Indenture") contains certain covenants, including covenants requiring our compliance with (regardless of whether we are subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring us to provide financial information to the holders of the 6.125% Notes and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 6.125% Notes Indenture.
        In November 2014, we issued $175.0 million in aggregate principal amount of the 4.50% Notes (the "4.50% Notes") at an issue price of 99.53%. The 4.50% Notes are unsecured obligations and rank pari passu with our current and future unsecured indebtedness; senior to any of our future indebtedness that expressly provides it is subordinated to the 4.50% Notes; effectively subordinated to

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all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under our Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes mature on December 1, 2019, and may be redeemed in

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whole or in part at any time at our option subject to certain ~~make whole~~make-whole provisions. The 4.50% Notes bear interest at a rate of 4.50% per year payable ~~semi-annually~~semiannually on June 1 and December 1 of each year, beginning June 1, 2015. We may from time to time repurchase 4.50% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2016,~~2017, the outstanding balance of the 4.50% Notes was $175.0 million.
        The indenture governing the 4.50% Notes (the "4.50% Notes Indenture") contains certain covenants, including covenants requiring our compliance with (regardless of whether we are subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring us to provide financial information to the holders of the 4.50% Notes and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes Indenture.
        During March 2015, we completed a follow-on public equity offering of 4,370,000 shares of common stock, including the underwriters' full exercise of their option to purchase 570,000 additional shares, resulting in total net proceeds, including exercise of the underwriters' option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $127.8 million.
        ~~During~~ November 2015, we ~~entered into~~commenced a program ~~(the "ATM Program")~~ with ~~underwriters~~certain selling agents through which we can sell shares of our common stock by means of at-the-market offerings from time to time ~~up to 1,000,000 shares of our common stock.~~(the "ATM Program"). During the ~~fourth quarter of 2015,~~three months ended March 31, 2017, we sold ~~140,568~~1,035,286 shares of our common stock at a weighted-average price of ~~$31.98~~$36.86 per share and raised ~~$4.5~~$38.2 million of gross proceeds under the ATM Program. Net proceeds were ~~$4.3~~$37.7 million after commissions to the ~~underwriter~~selling agents on shares sold and offering costs. As of March 31, 2017, 499,500 shares were available for sale under the ATM Program.
During the ~~three months~~year ended ~~March~~December 31, 2016, we sold ~~321,714~~3,324,646 shares of our common stock at a weighted-average price of ~~$31.01~~$34.17 per share and raised ~~$10.0~~$113.6 million of gross proceeds under the ATM Program. Net proceeds were ~~$9.8~~$112.0 million after commissions to the ~~underwriter~~selling agents on shares sold and offering costs. As of ~~March~~December 31, 2016, ~~537,718~~sales transactions representing 42,413 shares had not settled and were ~~available for sale under~~not included in shares issued and outstanding on the ~~ATM Program.~~face of the consolidated balance sheet, but were included in the weighted-average shares outstanding in the consolidated statement of operations and in the shares used to calculate our net asset value per share.
        We anticipate that we will continue to fund our investment activities through existing cash and cash equivalents ~~the liquidation of Marketable securities and idle funds investments,~~ and a combination of future issuances of debt and equity capital. Our primary uses of funds will be investments in portfolio companies, operating expenses and cash distributions to holders of our common stock.
        We periodically invest excess cash balances into ~~Marketable~~"Marketable securities and idle funds ~~investments.~~investments". The primary investment objective of Marketable securities and idle funds investments is to generate incremental cash returns on excess cash balances prior to utilizing those funds for investment in our LMM, Middle Market and Private Loan portfolio investments. Marketable securities and idle funds investments generally consist of debt investments, independently rated debt investments, certificates of deposit with financial institutions, diversified bond funds and publicly traded debt and equity investments. The composition of Marketable securities and idle funds investments will vary in a given period based upon, among other things, changes in market conditions, the underlying fundamentals in our Marketable securities and idle funds investments, our outlook regarding future LMM, Middle Market and Private Loan portfolio investment needs, and any regulatory requirements applicable to us.
        If our common stock trades below our net asset value per share, we will generally not be able to issue additional common stock at the market price unless our stockholders approve such a sale and our Board of Directors makes certain determinations. We did not seek stockholder authorization to sell

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shares of our common stock below the then current net asset value per share of our common stock at our ~~2016~~2017 annual meeting of stockholders because our common stock price per share had been trading significantly above the current net asset value per share of our common stock since 2011. We would therefore need future approval from our stockholders to issue shares below the then current net asset value per share.

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        In order to satisfy the Code requirements applicable to a RIC, we intend to distribute to our stockholders, after consideration and application of our ability under the Code to ~~spillover~~carry forward certain excess undistributed taxable income from one tax year into the next tax year, substantially all of our taxable income. In addition, as a BDC, we generally are required to meet a coverage ratio of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200%. This requirement limits the amount that we may borrow. In January 2008, we received an exemptive order from the SEC to exclude ~~SBA guaranteed~~SBA-guaranteed debt securities issued by MSMF and any other wholly owned subsidiaries of ours which operate as SBICs from the asset coverage requirements of the 1940 Act as applicable to us, which, in turn, enables us to fund more investments with debt capital.
        Although we have been able to secure access to additional liquidity, including ~~recent public equity and historical debt offerings, our $555.0 million~~through the Credit Facility, ~~and the~~public debt issuances, leverage available ~~leverage~~ through the SBIC program and equity offerings, there is no assurance that debt or equity capital will be available to us in the future on favorable terms, or at all.
Recently Issued or Adopted Accounting Standards
        In May 2014, the FASB issued ~~ASU~~Accounting Standards Update ("ASU") 2014-09,Revenue from Contracts with Customers (Topic 606). ASU ~~2014-9~~2014-09 supersedes the revenue recognition requirements under ASC ~~Topic~~ 605,Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. ~~The~~In March 2016, the FASB ~~tentatively decided to defer~~issued ASU 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the ~~effective date~~implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12,Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the scope and application of the new revenue standard ~~for public entities under U.S. GAAP for one year. If finalized, the~~and related cost guidance. The new guidance will be effective for the annual reporting period beginning after December 15, 2017, including interim periods within that reporting period. Early adoption would be permitted for annual reporting periods beginning after December 15, 2016. We ~~are currently evaluating~~expect to identify similar performance obligations under ASC 606 as compared

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with deliverables and separate units of account previously identified. As a result, we expect timing of our revenue recognition to remain the ~~impact the adoption of this new accounting standard will have on our consolidated financial statements.~~same.
        In May 2015, the FASB issued ASU 2015-07,Fair Value Measurements—Disclosures for Certain Entities that Calculate Net Asset Value per Share. This amendment updates guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy, while investments for which fair value is measured at net asset value per share but the practical expedient is not applied should continue to be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard during the three months ended March 31, 2016. There was no impact of the adoption of this new accounting standard on our consolidated financial statements as none of our investments are measured through the use of the practical expedient.
        In February 2016, the FASB issued ASU 2016-02,Leases,, which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease

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term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. ~~The impact~~While we continue to assess the effect of adoption, we currently believe the ~~adoption~~most significant change relates to the recognition of ~~this~~a new ~~accounting standard~~right-of-use asset and lease liability on our consolidated balance sheet for our office space operating lease. We currently have one operating lease for office space and do not expect a significant change in our leasing activity between now and adoption. See further discussion of our operating lease obligation in "Note M—Commitments and Contingences" in the notes to the consolidated financial ~~statements is currently being evaluated.~~statements.
        In March 2016, the FASB issued ASU 2016-09,Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company elected to early adopt this standard during the three months ended March 31, 2016. See further discussion of the impact of the adoption of this standard in "Note ~~B.8.~~B.7.—Summary of Significant Accounting Policies—Share-based Compensation" in the notes to consolidated financial statements.
        In August 2016, the FASB issued ASU 2016-15,Statement of Cash Flows (Topic 230), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. Early application is permitted. The impact of the adoption of this new accounting standard on our consolidated financial statements is not expected to be material.
        From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. We believe that the impact of recently issued standards and any that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

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Inflation
        Inflation has not had a significant effect on our results of operations in any of the reporting periods presented herein. However, our portfolio companies have experienced, and may in the future experience, the impacts of inflation on their operating results, including periodic escalations in their costs for labor, raw materials and ~~third party~~third-party services and required energy consumption.
Off-Balance Sheet Arrangements
        We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments include commitments to extend credit and fund equity capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. At March 31, ~~2016,~~2017, we had a total of ~~$141.9~~$118.2 million in outstanding commitments comprised of (i) 3027 investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded and (ii) ~~nine~~eight investments with equity capital commitments that had not been fully called.

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Contractual Obligations
        As of March 31, ~~2016,~~2017, the future fixed commitments for cash payments in connection with our SBIC debentures, ~~and~~ the 4.50% Notes, ~~and~~ the 6.125% Notes and rent obligations under our office lease for each of the next five years and thereafter are as follows:

2016 2017 2018 2019 2020 2021 and
thereafter Total

(dollars in thousands)
2017 2018 2019 2020 2021 Thereafter Total
SBIC debentures
$ — $ 15,000 $ 10,200 $ 20,000 $ 55,000 $ 124,800 $ 225,000 $ — $ — $ 20,000 $ 55,000 $ 40,000 $ 125,200 $ 240,200
Interest due on SBIC debentures
4,748 9,423 8,130 7,807 6,608 10,992 47,708 5,014 9,228 9,228 8,033 5,484 14,388 51,375
Notes 6.125%
— — — — — 90,655 90,655 — — — — — 90,655 90,655
Interest due on 6.125% Notes
4,164 5,553 5,553 5,553 5,553 13,881 40,257 4,165 5,553 5,553 5,553 5,553 6,939 33,316
4.50% Notes
— — — 175,000 — — 175,000 — — 175,000 — — — 175,000
Interest due on 4.50% Notes
7,875 7,875 7,875 7,875 — — 31,500 7,875 7,875 7,875 — — — 23,625
Operating Lease Obligation(1)
46 683 749 763 777 4,959 7,977

Total
$ 16,787 $ 37,851 $ 31,758 $ 216,235 $ 67,161 $ 240,328 $ 610,120 $ 17,100 $ 23,339 $ 218,405 $ 69,349 $ 51,814 $ 242,141 $ 622,148

(1)
Operating Lease Obligation means a rent payment obligation under a lease classified as an operating lease and disclosed pursuant to FASB ASC 840, as may be modified or supplemented.
        As of March 31, ~~2016,~~2017, we had ~~$306.0~~$288.0 million in borrowings outstanding under our Credit Facility, and the Credit Facility is currently scheduled to mature in September ~~2020.~~2021. The Credit Facility contains two, one-year extension options which could extend the maturity to September ~~2021.~~2023, subject to lender approval. See further discussion of the Credit Facility terms in "—Liquidity and Capital Resources—Capital ~~Resources".~~Resources."
Related Party Transactions
        As discussed further above, the External Investment Manager is treated as a wholly owned portfolio company of MSCC and is included as part of our Investment Portfolio. At March 31, ~~2016,~~2017, we had a receivable of ~~$2.3~~approximately $2.0 million due from the External Investment Manager which included approximately ~~$1.6~~$1.3 million primarily related to operating expenses incurred by us required to support the External Investment Manager's business ~~along with~~and approximately $0.7 million of dividends declared but not paid by the External Investment ~~Manager~~Manager.

Table of ~~approximately $0.7 million.~~Contents
        In November 2015, our ~~board~~Board of ~~directors~~Directors approved and adopted the Main Street Capital Corporation Deferred Compensation Plan (the "2015 Deferred Compensation Plan"). The 2015 Deferred Compensation Plan became effective on January 1, 2016 and replaced the Deferred Compensation Plan for Non-Employee Directors previously adopted by the ~~board~~Board of ~~directors~~Directors in June 2013 (the "2013 Deferred Compensation Plan"). Under the 2015 Deferred Compensation Plan, non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and directors' fees, subject to certain limitations. Individuals participating in the 2015 Deferred Compensation Plan receive distributions of their respective balances based on predetermined payout schedules or other events as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan, including phantom Main Street stock units. As of March 31, ~~2016, $1.1~~2017, $2.8 million of compensation and directors' fees had been deferred under the 2015 Deferred Compensation Plan (including amounts previously deferred under the 2013 Deferred Compensation Plan). ~~As of March 31, 2016, $1.05~~Of this amount, $1.7 million ~~of this deferred compensation and fees~~ was deferred into phantom Main Street stock units, representing ~~34,645~~55,938 shares of our common stock. Including phantom stock units issued through dividend reinvestment, the phantom stock units outstanding as of March 31, 2017 represented 65,882 shares of our common stock. Any amounts deferred under the plan represented by phantom Main Street stock units will not be issued or included as outstanding on the consolidated statement of changes in net assets until such shares are actually distributed to the participant in accordance with the plan, but are included in operating expenses and weighted-average shares outstanding in our consolidated statement of operations as earned.
Recent Developments
        In April 2016, we led a new portfolio investment totaling $6.0 million of invested capital to facilitate the majority recapitalization of BBB Tank Services, LLC ("BBB"), with us funding $4.8 million of the investment. Our investment in BBB included a combination of first-lien, senior secured term debt and a direct equity investment. We and our co-investor are also providing BBB an

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undrawn revolving line of credit to support its future working capital needs. Headquartered in Baytown, Texas, and founded in 2001, BBB provides products and services to the above-ground storage tank market. BBB's products and services include routine and emergency maintenance and repairs, replacement seals for floating roofs, application of protective coatings, and new tank construction and are provided primarily to owners of storage terminals that hold crude, refined petroleum products, chemicals and other commodities.
        In April 2016, Safety Holdings, Inc., doing business as SambaSafety® ("SambaSafety"), completed a transaction with a private equity group to complete a majority recapitalization of SambaSafety. This transaction resulted in the repayment of our debt investment and the exit of our equity investment in SambaSafety. 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 insights insurance carriers need to accurately price risk throughout the insurance policy lifecycle. We made our initial investment in SambaSafety in November 2011 and the majority recapitalization transaction resulted in realized value received by us that is consistent with the fair market values for our investments in SambaSafety as of March 31, 2016.
        In April 2016, we led a new portfolio investment totaling $16.4 million of invested capital to facilitate the management-led buyout of Gulf Publishing Company ("Gulf") and The Petroleum Economist Limited ("Petroleum Economist", and together with Gulf, the "Companies"), with us funding $13.1 million of the investment. Our investment in the Companies included a combination of first-lien, senior secured term debt and a direct equity investment. Headquartered in Houston, Texas, Gulf Publishing Company was incorporated in 1916 by a team of oil company executives and oilfield equipment manufacturers as wildcat discoveries were being made along the Houston Ship Channel. Today, Gulf Publishing produces and distributes leading trade journals, industry research, databases, software, conferences and events designed for the needs of the energy industry.
During April ~~2016,~~2017, we declared a semi-annual supplemental cash dividend of $0.275 per share payable in June ~~2016.~~2017. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that we declared for the second quarter of ~~2016~~2017 of ~~$0.180~~$0.185 per share for each of April, May and June ~~2016.~~2017.
        In May ~~2016,~~2017, we declared regular monthly dividends of ~~$0.180~~$0.185 per share for each month of July, August and September of ~~2016.~~2017. These regular monthly dividends equal a total of ~~$0.540~~$0.555 per share for the third quarter of ~~2016~~2017 and represent a ~~2.9%~~2.8% increase from the regular monthly dividends declared for the third quarter of ~~2015.~~2016. Including the semi-annual supplemental dividend declared for June 2017 and the regular monthly dividends declared for the ~~first quarter~~second and third quarters of ~~2016,~~2017, we will have paid ~~$17.775~~$20.545 per share in cumulative dividends since our October 2007 initial public offering.
Item 3.    Quantitative and Qualitative Disclosures about Market Risk
        We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio ~~investments and Marketable securities and idle funds~~ investments. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks. Our investment income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent ofthat any debt investments ~~that~~ include floating interest rates. The majority of our debt investments are made with either fixed interest rates or floating rates that are subject to contractual minimum interest rates for the term of the investment. As of March 31, ~~2016,~~2017, approximately ~~61%~~65% of our debt investment portfolio (at cost) bore interest at floating rates, ~~97%~~

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98% of which were subject to contractual minimum interest ~~rates. As of March 31, 2016, none of our Marketable securities and idle funds investments (at cost) bore interest at floating~~ rates. Our interest expense will be affected by changes in the published LIBOR rate in connection with our Credit Facility; however, the interest rates on our outstanding SBIC debentures, ~~and our~~ 4.50% Notes and 6.125% Notes, which comprise the majority of our outstanding debt, are fixed for the life of such debt. As of March 31, ~~2016,~~2017, we had not entered into any interest rate hedging arrangements. The following table shows the approximate annualized increase or decrease in the components of net investment income

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due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of March 31, ~~2016.~~2017.
Basis Point Change
Increase in
Interest
Income Increase in
Interest
Expense Increase
(Decrease) in
Net Investment
Income Increase
(Decrease) in
Net Investment
Income per Share Increase in
Interest
Income Increase in
Interest
Expense Increase
(Decrease) in Net
Investment
Income Increase
(Decrease) in Net
Investment
Income per
Share

(dollars in thousands)

(dollars in thousands)

25 $ 2,207 $ (720 ) $ 1,487 $ 0.03
50
$ 1,038 $ (1,530 ) $ (492 ) $ (0.01 ) 4,556 (1,440 ) 3,116 0.06
100
4,932 (3,060 ) 1,872 0.04 9,333 (2,880 ) 6,453 0.12
150
9,256 (4,590 ) 4,666 0.09 14,163 (4,320 ) 9,843 0.18
200
13,579 (6,120 ) 7,459 0.15 19,006 (5,760 ) 13,246 0.24
300
22,226 (9,180 ) 13,046 0.26 28,692 (8,640 ) 20,052 0.36
400
30,889 (12,240 ) 18,649 0.37 38,406 (11,520 ) 26,886 0.49
500
39,567 (15,300 ) 24,267 0.48
        The hypothetical results would also be impacted by the changes in the amount of debt outstanding under our Credit Facility (with an increase (decrease) in the debt outstanding under the Credit Facility resulting in an (increase) decrease in the hypothetical interest expense).
Item 4.    Controls and Procedures
        As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chairman and Chief Executive Officer, ~~and~~our President, our Chief Financial Officer, our Chief Compliance Officer and our Chief Accounting Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15 of the Securities Exchange Act of 1934). Based on that evaluation, our Chairman and Chief Executive Officer, ~~and~~our President, our Chief Financial Officer, our Chief Compliance Officer and our Chief Accounting Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them of material information relating to us that is required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934. There have been no changes in our internal control over financial reporting that occurred during the quarter ended March 31, ~~2016~~2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION
Item 1.    Legal Proceedings
        We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may ~~try to~~ seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.
Item 1A.    Risk Factors
        There have been no material changes to the risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2015~~2016 that we filed with the SEC on February 24, 2017, and as updated in our registration statement on Form N-2 filed on April 26, ~~2016.~~2017.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
        During the three months ended March 31, ~~2016,~~2017, we issued ~~113,631~~48,675 shares of our common stock under our dividend reinvestment plan. These issuances were not subject to the registration requirements of the Securities Act of 1933, as amended. The aggregate value of the shares of common stock issued during the three months ended March 31, ~~2016~~2017 under the dividend reinvestment plan was approximately ~~$3.3~~$1.8 million.
Item 6.    Exhibits
        Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):
Exhibit
Number Description of Exhibit
31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1

Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2

Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

Table of Contents

SIGNATURES
        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Main Street Capital Corporation

Date: May ~~6, 2016~~5, 2017

/s/ VINCENT D. FOSTER
Vincent D. Foster
Chairman and Chief Executive Officer
(principal executive officer)

Date: May ~~6, 2016~~5, 2017

/s/ BRENT D. SMITH
Brent D. Smith
Chief Financial Officer and Treasurer
(principal financial officer)

Date: May ~~6, 2016~~5, 2017

/s/ SHANNON D. MARTIN
Shannon D. Martin
Vice President and Chief Accounting Officer
(principal accounting officer)

Table of Contents

EXHIBIT INDEX
Exhibit
Number Description of Exhibit
31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1

Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2

Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Liquidation of Distressed Assets
		10% Secured Debt (Maturity—November 21, 2016)	13,046	12,936	10,969
		Warrants (29,025 equivalent units)		400	—

				13,336	10,969

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		8% Secured Debt (Maturity—October 18, 2018)	400	397	397
		12% Secured Debt (Maturity—October 18, 2018)	9,000	8,934	8,640
		Common Stock (7,711,517 shares)		3,958	3,010

				13,289	12,047

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—August 13, 2019)(9)	960	946	946
		13% Secured Debt (Maturity—August 13, 2019)	10,400	10,300	10,300
		Common Stock (212,033 shares)		2,983	1,210

				14,229	12,456

Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (248,082 units)(8)		996	6,080

I-45 SLF LLC(12)(13)	Investment Partnership
		Member units (Fully diluted 20.0%; 24.4% profits interest)(8)		9,200	9,036

Indianhead Pipeline Services,��LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2017)	5,775	5,660	5,660
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,320	2,569
		Warrants (31,928 equivalent units)		459	—
		Member Units (14,732 units)		1	—

				8,440	8,229

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
		12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,878	5,900
		Member Units (250 units)(8)		341	3,510

				6,219	9,410

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)(8)		2,019	1,670

MPS Denver, LLC	Specialty Card Printing
		Member Units (13,800 units)		1,130	840

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)	4,129	4,129	4,129
		Preferred Stock (912 shares; 7% cumulative)		1,981	1,380
		Warrants (5,333 equivalent shares)		1,919	—

				8,029	5,509

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services
		10% Unsecured Debt (Maturity—April 8, 2018)	473	473	473
		Common Stock (20,766,317 shares)		1,371	3,200

				1,844	3,673

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)	13,000	12,870	12,870
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)		2,904	4,090

				15,774	16,960

Radial Drilling Services Inc.	Oil and Gas Lateral Drilling Technology Provider
		12% Secured Debt (Maturity—November 22, 2016)(14)	4,200	3,946	1,505
		Warrants (316 equivalent shares)		758	—

				4,704	1,505

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)	Provider of Rigsite Accommodation Unit Rentals and Related Services
		12% Secured Debt (Maturity—January 8, 2018)(14)(18)	30,785	30,281	250
		Preferred Member Units (250 units)		2,500	—

				32,781	250

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Non-Control/Non-Affiliate Investments(7)

AccuMED Corp.(10)	Medical Device Contract Manufacturer
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)	$	10,352	$	10,255	$	10,255

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)		9,263		9,097		9,089

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 7.10%, Secured Debt (Maturity—November 2, 2020)		14,813		14,398		14,442

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)		10,150		10,082		9,757

AM General LLC(11)	Specialty Vehicle Manufacturer
		LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)		2,175		2,145		1,620

AM3 Pinnacle Corporation(10)	Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties
		Common Stock (60,240 shares)				2,000		—

American Seafoods Group, LLC(11)	Catcher-Processor of Alaskan Pollock
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)		9,875		9,864		9,616

AMF Bowling Centers, Inc.(11)	Bowling Alley Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)		7,887		7,786		7,769

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Fram Group Holdings, Inc.(11)	Manufacturer of Automotive Maintenance Products
		LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)	9,267	9,181	8,556
		LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)	700	699	485

				9,880	9,041

GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)	3,950	3,894	3,743
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)	800	786	760

				4,680	4,503

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity—August 15, 2019)(9)	332	317	332
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)	11,609	11,510	11,609

				11,827	11,941

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)	7,799	7,737	7,737

Grupo Hima San Pablo, Inc.(11)	Tertiary Care Hospitals
		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)	4,850	4,809	4,607
		13.75% Secured Debt (Maturity—July 31, 2018)	2,000	1,947	1,840

				6,756	6,447

GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 10, 2020)(9)	9,850	9,776	9,505

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Legendary Pictures Funding, LLC(10)	Producer of TV, Film, and Comic Content
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)	7,500	7,378	7,369

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	4,065

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		9% Unsecured Debt (Maturity—June 30, 2020)	188	188	188
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		188	188

				501	501

MediMedia USA, Inc.(11)	Provider of Healthcare Media and Marketing
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)	7,772	7,719	7,597

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)	15,583	15,487	15,497

Milk Specialties Company(11)	Processor of Nutrition Products
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)	730	727	731

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	15,462	15,102	15,102
		Warrants (1,437,409 equivalent units)		280	280

				15,382	15,382

Mood Media Corporation(11)(13)	Provider of Electronic Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)	14,919	14,798	13,970

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


RCHP, Inc.(11)	Regional Non-Urban Hospital Owner/Operator
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 23, 2019)(9)	5,448	5,427	5,427
		LIBOR Plus 10.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity—October 23, 2019)(9)	4,000	3,956	4,040

				9,383	9,467

Renaissance Learning, Inc.(11)	Technology-based K-12 Learning Solutions
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)	3,000	2,976	2,678

RGL Reservoir Operations Inc.(11)(13)	Oil & Gas Equipment and Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)	3,940	3,845	1,005

RLJ Entertainment, Inc.(10)	Movie and TV Programming Licensee and Distributor
		LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.37%, Secured Debt (Maturity—September 11, 2019)(9)	9,253	9,253	9,103

RM Bidder, LLC(10)	Acquisition Vehicle
		Warrants (327,532 equivalent units)		425	300
		Member Units (2,779 units)		46	44

				471	344

SAExploration, Inc.(10)(13)	Geophysical Services Provider
		Common Stock (6,472 shares)		65	27

Sage Automotive Interiors, Inc(11)	Automotive Textiles Manufacturer
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 8, 2021)(9)	3,000	2,975	2,970

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—June 9, 2021)(9)	7,369	7,238	7,148

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Sotera Defense Solutions, Inc.(11)	Defense Industry Intelligence Services
		LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity—April 21, 2017)(9)	10,082	9,891	9,326

Stardust Finance Holdings, Inc.(11)	Manufacturer of Diversified Building Products
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—March 13, 2022)(9)	12,375	12,213	12,282

Subsea Global Solutions, LLC(10)	Underwater Maintenance and Repair Services
		LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)	5,533	5,484	5,410

Synagro Infrastructure Company, Inc(11)	Waste Management Services
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—August 22, 2020)(9)	4,714	4,650	3,830

Targus International, LLC(11)	Distributor of Protective Cases for Mobile Devices
		15% PIK Secured Debt (Maturity—December 31, 2019)	1,019	1,019	1,019
		Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)		2,555	2,555

				3,574	3,574

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)	7,931	7,919	7,872
		LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)	10,500	10,425	10,420

				18,344	18,292

Templar Energy LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 25, 2020)(9)	4,000	3,962	450

The Tennis Channel, Inc.(10)	Television-Based Sports Broadcasting
		Warrants (114,316 equivalent shares)		235	—

Portfolio Company(1)	Business Description	Type of Investment(2)(3)		Cost(4)		Fair Value


Vivid Seats LLC(11)	Provider of Online Secondary Ticket Marketplace
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 1, 2020)(9)	10,000		9,307		9,363

Western Dental Services, Inc.(11)	Dental Care Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)	4,904		4,901		4,438

Wilton Brands LLC(11)	Specialty Housewares Retailer
		LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)	1,490		1,476		1,363

Worley Claims Services, LLC(10)	Insurance Adjustment Management and Services Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)	6,419		6,367		6,196

YP Holdings LLC(11)	Online and Offline Advertising Operator
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—June 4, 2018)(9)	4,455		4,359		4,165

Zilliant Incorporated	Price Optimization and Margin Management Solutions
		Preferred Stock (186,777 shares)			154		260
		Warrants (952,500 equivalent shares)			1,071		1,190

					1,225		1,450

Subtotal Non-Control/Non-Affiliate Investments (49.9% of total investments at fair value)				$	974,053	$	908,662

Total Portfolio Investments, March 31, 2016				$	1,712,251	$	1,818,071

Portfolio Company(1)	Business Description	Cost(4)		Fair Value


Marketable Securities and Idle Funds Investments

Other Marketable Securities and Idle Funds Investments(13)(15)	Investments in Marketable Securities and Diversified, Registered Bond Funds

0	0	$	1,778	$	1,519

Subtotal Marketable Securities and Idle Funds Investments (0.1% of total investments at fair value)		$	1,778	$	1,519

Total Investments, March 31, 2016		$	1,714,029	$	1,819,590

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Datacom, LLC	Technology and Telecommunications Provider
		10.5% Secured Debt (Maturity—May 31, 2019)	11,205	11,122	10,970
		Class A Preferred Member Units (15% cumulative)(8)		1,181	1,181
		Class B Preferred Member Units (6,453 units)		6,030	5,079

				18,333	17,230

Garreco, LLC	Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)	5,800	5,739	5,739
		Member Units (1,200 units)		1,200	1,270

				6,939	7,009

GRT Rubber Technologies LLC	Manufacturer of Engineered Rubber Products
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)	16,122	15,988	15,988
		Member Units (5,879 units)		13,065	15,580

				29,053	31,568

Gulf Manufacturing, LLC	Manufacturer of Specialty Fabricated Industrial Piping Products
		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)	777	777	777
		Member Units (438 units)(8)		2,980	13,770

				3,757	14,547

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		9% Secured Debt (Maturity—January 8, 2016)	5,010	5,010	5,010
		Preferred Stock (8% cumulative)(8)		1,361	1,361
		Common Stock (107,456 shares)		718	2,600

				7,089	8,971

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
		Member Units (500 units)(8)		589	460
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)		1,215	2,220

				1,804	2,680

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value


Non-Control/Non-Affiliate Investments(7)

AccuMED, Corp.(10)	Medical Device Contract Manufacturer
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)	$	9,750	$	9,648	$	9,648

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)		9,506		9,329		9,328

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 6.76%, Secured Debt (Maturity—November 2, 2020)		15,000		14,562		14,625

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)		10,150		10,080		10,008

AM General LLC(11)	Specialty Vehicle Manufacturer
		LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)		2,256		2,221		1,867

AM3 Pinnacle Corporation(10)	Provider of Comprehensive Internet, TV and Voice Services for Multi-Dwelling Unit Properties
		Common Stock (60,240 shares)				2,000		—

American Seafoods Group, LLC(11)	Catcher-Processor of Alaskan Pollock
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)		9,975		9,963		9,892

AMF Bowling Centers, Inc.(11)	Bowling Alley Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)		7,907		7,802		7,835

Anchor Hocking, LLC(11)	Household Products Manufacturer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)		2,306		2,306		2,179
		Member Units (440,620 units)				4,928		3,250

						7,234		5,429

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Energy and Exploration Partners, LLC(11)	Oil & Gas Exploration & Production
		8.75% Secured Debt (Maturity—January 23, 2016)(14)	221	221	221
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—January 22, 2019)(9)(14)	9,390	9,048	2,371

				9,269	2,592

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)	7,000	6,838	4,673

Extreme Reach, Inc.(11)	Integrated TV and Video Advertising Platform
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—February 7, 2020)(9)	8,875	8,866	8,731

Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products and Solutions
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—April 3, 2020)(9)	11,333	11,004	10,086

Fram Group Holdings, Inc.(11)	Manufacturer of Automotive Maintenance Products
		LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)	9,652	9,547	7,275
		LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)	700	699	350

				10,246	7,625

GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)	3,960	3,901	3,742
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)	800	786	792

				4,687	4,534

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Leadrock Properties, LLC	Real Estate Investment
		10% Secured Debt (Maturity—May 4, 2026)	1,440	1,416	1,416

Legendary Pictures Funding, LLC(10)	Producer of TV, Film, and Comic Content
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)	7,500	7,372	7,425

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	4,875

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		9% Unsecured Debt (Maturity—June 30, 2020)	188	188	188
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		188	188

				501	501

MediMedia USA, Inc.(11)	Provider of Healthcare Media and Marketing
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)	7,772	7,714	7,422

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)	15,583	15,483	15,583

Milk Specialties Company(11)	Processor of Nutrition Products
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)	792	789	792

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	14,186	13,817	13,817
		Warrants (1,437,409 equivalent units)		280	280

				14,097	14,097

Miramax Film NY, LLC(11)	Motion Picture Producer and Distributor
		Member Units (500,000 units)(8)		864	864

Mood Media Corporation(11)(13)	Provider of Electronic Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)	14,957	14,827	14,266

Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Cost(4)		Fair Value


Marketable Securities and Idle Funds Investments

PennantPark Investment Corporation(13)(15)	Business Development Company
		Common Stock (343,149 shares)(8)	$	3,629	$	2,121

Other Marketable Securities and Idle Funds Investments(13)(15)	Investments in Marketable Securities and Diversified, Registered Bond Funds
				1,778		1,572

Subtotal Marketable Securities and Idle Funds Investments (0.2% of total investments at fair value)			$	5,407	$	3,693

Total Investments, December 31, 2015			$	1,672,049	$	1,803,689

Type of Investment	Fair Value as of December 31, 2015 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	530,612	Discounted cash flow	Weighted-average cost of capital	10.5% - 25.1%	13.4%	13.9%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.0x - 8.5x(2)	7.0x	5.5x
Debt investments	$	628,492	Discounted cash flow	Risk adjusted discount factor	8.1% - 15.3%(2)	11.9%	11.9%
				Expected principal recovery percentage	16.6% - 100.0%	99.7%	100.0%
Debt investments	$	637,052	Market approach	Third party quote	12.1 - 100.1

Total Level 3 investments	$	1,796,156

Fair Value:

Hotels, Restaurants & Leisure	7.7%	7.8%
Machinery	7.1%	7.0%
Software	5.7%	5.9%
Energy Equipment & Services	5.6%	6.0%
Diversified Consumer Services	5.5%	5.7%
Media	5.5%	5.1%
Construction & Engineering	5.0%	5.1%
IT Services	4.5%	4.6%
Specialty Retail	4.2%	6.0%
Electronic Equipment, Instruments & Components	3.7%	3.7%
Internet Software & Services	3.5%	2.9%
Health Care Providers & Services	3.2%	3.3%
Commercial Services & Supplies	3.1%	3.1%
Health Care Equipment & Supplies	3.0%	2.9%
Auto Components	3.0%	2.8%
Diversified Financial Services	2.8%	2.2%
Road & Rail	2.6%	2.6%
Diversified Telecommunication Services	2.5%	2.7%
Food Products	2.2%	2.1%
Building Products	2.0%	1.6%
Professional Services	1.8%	1.7%
Pharmaceuticals	1.6%	1.7%
Consumer Finance	1.3%	0.6%
Air Freight & Logistics	1.2%	1.3%
Leisure Equipment & Products	1.2%	1.1%
Oil, Gas & Consumable Fuels	1.0%	1.2%
Other(1)	9.5%	9.3%

	100.0%	100.0%

	Amount

Congruent Credit Opportunities Fund III, LP		17,980

	$	26,468
Freeport Fund Investments
Freeport First Lien Loan Fund III LP	$	8,936
Freeport Financial SBIC Fund LP		1,375

	$	10,311
I-45 SLF LLC	$	7,800
Dos Rios Partners
Dos Rios Partners, LP	$	3,416
Dos Rios Partners—A, LP		1,085

	$	4,501
Brightwood Capital Fund III, LP	$	3,750
EIG Fund Investments	$	2,220
LKCM Headwater Investments I, L.P.	$	2,500
Access Media Holdings, LLC	$	1,485

Total equity commitments	$	85,387
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
Volusion, LLC	$	7,000
CapFusion, LLC		6,400
Barfly Ventures, LLC		4,594
Arcus Hunting LLC		4,139
UniRush, LLC		4,000
Apex Linen Service, Inc.		3,200
Buca C, LLC		2,670
Hojeij Branded Foods, LLC		2,028
Applied Products, Inc.		2,000
Mid-Columbia Lumber Products, LLC		2,000
PT Network, LLC		1,938
Datacom, LLC		1,800
Glowpoint, Inc.		1,600
IDX Broker, LLC		1,500
LaMi Products, LLC		1,765
Messenger, LLC		1,417
Grace Hill, LLC		1,327
Lamb's Venture, LLC		1,000
Minute Key, Inc.		800
HW Temps LLC		800
Mystic Logistics, Inc.		800

Company	Investment(1)	Amount of Interest, Fee or Dividends Credited to Income(2)			December 31, 2015 Value			Gross Additions(3)		Gross Reductions(4)		March 31, 2016 Fair Value		Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value

Indianapolis Aviation Partners, LLC														15% Secured Debt		156		3,100		—		—		3,100
														Warrants		—		2,649		61		—		2,710

Marine Shelters Holdings, LLC														12% PIK Secured Debt		—		9,387		—		9,387		—
														Preferred Member Units		—		—		100		100		—

MH Corbin Holding LLC														10% Secured Debt		335		13,197		8		175		13,030
														Preferred Member Units		35		6,000		—		—		6,000

NAPCO Precast, LLC														Prime Plus 2.00% (Floor 7.00%)		63		2,713		2		2		2,713
														18% Secured Debt		181		3,952		3		3		3,952
														Member Units		29		10,920		—		—		10,920

NRI Clinical Research, LLC														LIBOR Plus 6.50% (Floor 1.50%)		10		200		200		—		400
														14% Secured Debt		160		4,261		11		11		4,261
														Warrants		—		680		—		—		680
														Member Units		—		2,462		—		—		2,462

NuStep, LLC														12% Secured Debt		728		—		20,394		—		20,394
														Preferred Member Units		—		—		10,200		—		10,200

OMi Holdings, Inc.														Common Stock		192		13,080		—		—		13,080

Pegasus Research Group, LLC														Member Units		60		8,620		—		180		8,440

River Aggregates, LLC														Zero Coupon Secured Debt		19		627		19		—		646
														Member Units		—		4,600		—		—		4,600
														Member Units		—		2,510		—		—		2,510

SoftTouch Medical Holdings LLC														LIBOR Plus 9.00% (Floor 1.00%)		182		7,140		4		4		7,140
														Member Units		155		9,170		—		—		9,170

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period																—		—		—		—		—

															$	12,988	$	594,282	$	85,423	$	21,466	$	658,239



Affiliate Investments
AFG Capital Group, LLC	11% Secured Debt	$	382		$	12,790		$	18	$	—	$	12,808	Warrants	$	—	$	670	$	20	$	—	$	690
	Warrants		—			490			40		—		530
	Member Units		—			2,020			160		—		2,180	Member Units		7		2,750		100		—		2,850

Barfly Ventures, LLC	12% Secured Debt		529			4,042			4		94		3,952	12% Secured Debt		235		5,827		1,808		—		7,635
	Options		—			—			470				470	Options		—		490		—		—		490
	Warrants		—			473			—		233		240	Warrants		—		280		—		—		280

BBB Tank Services, LLC														LIBOR Plus 9.50% (Floor 1.00%)		21		797		—		—		797
														15% Secured Debt		152		3,991		1		—		3,992
														Member Units		—		800		—		—		800

Boss Industries, LLC	Preferred Member Units		43			2,586			43		179		2,450	Preferred Member Units		89		2,800		120		—		2,920

Bridge Capital Solutions	13% Secured Debt		249			6,890			110		—		7,000
Corporation	Warrants		—			1,300			80		—		1,380
Bridge Capital Solutions Corporation														13% Secured Debt		307		5,610		63		—		5,673
														Warrants		—		3,370		—		—		3,370
														13% Secured Debt		33		1,000		—		—		1,000
														Preferred Member Units		25		1,000		—		—		1,000

Buca C, LLC	LIBOR Plus 7.25% (Floor 1.00%)		546			25,299			231		—		25,530	LIBOR Plus 7.25% (Floor 1.00%)		494		22,671		21		1,634		21,058
	Preferred Member Units		55			3,711			2,059		—		5,770	Preferred Member Units		57		4,660		58		728		3,990

CAI Software LLC	12% Secured Debt		139			4,661			4		325		4,340	12% Secured Debt		110		3,683		3		203		3,483
	Member Units		12			1,000			300		—		1,300	Member Units		30		2,480		100		—		2,580

CapFusion, LLC	13% Secured Debt		150			—			8,302		—		8,302	13% Secured Debt		518		13,202		50		—		13,252
	Warrants		—			—			1,200		—		1,200	Warrants		—		1,200		—		—		1,200

Chandler Signs Holdings, LLC	12% Secured Debt		178			—			4,456		—		4,456	12% Secured Debt		137		4,500		2		2		4,500
	Class A Units		—			—			1,500		—		1,500	Class A Units		63		3,240		—		—		3,240

Condit Exhibits, LLC	Member Units		17			1,010			—		—		1,010

Congruent Credit Opportunities	LP Interests (Fund II)		250			2,834			—		1,185		1,649
Funds	LP Interests (Fund III)		205			12,024			—		121		11,903

Daseke, Inc.	12% Current / 2.5% PIK Secured Debt		799			21,253			155		20		21,388
	Common Stock					22,660			—		—		22,660

Dos Rios Partners	LP Interests (Fund)		—			2,031			1,070		519		2,582
	LP Interests (Fund A)		—			648			340		—		988

East Teak Fine Hardwoods, Inc.	Common Stock		4			860			—		—		860

East West Copolymer &	12% Secured Debt		298			9,463			7		—		9,470
Rubber, LLC	Warrants		—			50			—		—		50

EIG Traverse Co-Investment, L.P.	LP Interests		231			4,755			5,050		—		9,805

Freeport Financial Funds	LP Interests (Fund)		130			6,045			—		277		5,768
	LP Interests (Fund III)		98			2,077			1,487		—		3,564

Gault Financial, LLC (RMB	10% Secured Debt		383			10,930			39		—		10,969
Capital, LLC)	Warrants		—			—			—		—		—

Glowpoint, Inc.	8% Secured Debt		10			397			—		—		397
	12% Secured Debt		279			8,929			5		294		8,640
	Common Stock		—			3,840			—		830		3,010

Guerdon Modular Holdings, Inc.	LIBOR Plus 8.50% (Floor 1.00%)		15			(15	)		961		—		946
	13% Secured Debt		348			10,295			5		—		10,300
	Common Stock					1,990			—		780		1,210

Houston Plating and	Member Units		(24	)		8,440			—		2,360		6,080
Coatings, LLC

I-45 SLF LLC	Member units		433			7,200			2,000		164		9,036

Indianhead Pipeline	12% Secured Debt		209			5,853			32		225		5,660
Services, LLC	Preferred Member Units		19			2,302			267		—		2,569
	Warrants		—			—			—		—		—
	Member Units		—			—			—		—		—

KBK Industries, LLC	12.5% Secured Debt		182			5,900			3		3		5,900
	Member Units		—			3,680			—		170		3,510

L.F. Manufacturing	Member Units		—			1,485			185		—		1,670
Holdings, LLC

MPS Denver, LLC	Member Units		—			1,130			—		290		840

OnAsset Intelligence, Inc.	12% PIK Secured Debt		123			4,006			123		—		4,129
	Preferred Stock		—			1,380			—		—		1,380
	Warrants		—			—			—		—		—

OPI International Ltd.	10% Unsecured Debt		12			473			—		—		473
	Common Stock		—			3,200			—		—		3,200

	As of March 31, 2016						As of March 31, 2017

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		72		84		42		73		69		49
Fair value	$	860.7	$	579.5	$	271.3	$	886.6	$	568.8	$	384.2
Cost	$	694.5	$	636.3	$	294.8	$	772.1	$	588.9	$	403.7
% of portfolio at cost—debt		70.9%		98.0%		93.7%		67.6%		96.9%		94.0%
% of portfolio at cost—equity		29.1%		2.0%		6.3%		32.4%		3.1%		6.0%
% of debt investments at cost secured by first priority lien		91.7%		85.4%		86.7%		96.1%		88.8%		90.2%
Weighted-average annual effective yield(b)		12.4%		8.1%		9.6%		12.2%		8.6%		9.6%
Average EBITDA(c)	$	6.1	$	94.2	$	13.7	$	4.6	$	95.5	$	24.8

	As of March 31, 2016				As of December 31, 2015				As of March 31, 2017				As of December 31, 2016

Investment Rating	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
			(dollars in thousands)						(dollars in thousands)
1	$	304,597		35.5%	$	332,606		38.6%	$	241,988		27.3%	$	253,420		28.4%
2		231,931		26.9%		143,268		16.6%		195,294		22.0%		258,085		28.9%
3		211,116		24.5%		277,160		32.1%		354,367		40.0%		294,807		33.0%
4		105,838		12.3%		107,926		12.5%		82,485		9.3%		75,433		8.5%
5		7,264		0.8%		1,750		0.2%		12,425		1.4%		10,847		1.2%

Total	$	860,746		100.0%	$	862,710		100.0%	$	886,559		100.0%	$	892,592		100.0%

Basis Point Change	Increase in Interest Income		Increase in Interest Expense			Increase (Decrease) in Net Investment Income			Increase (Decrease) in Net Investment Income per Share			Increase in Interest Income		Increase in Interest Expense			Increase (Decrease) in Net Investment Income		Increase (Decrease) in Net Investment Income per Share

			(dollars in thousands)									(dollars in thousands)
25												$	2,207	$	(720	)	$	1,487	$	0.03
50	$	1,038	$	(1,530	)	$	(492	)	$	(0.01	)		4,556		(1,440	)		3,116		0.06
100		4,932		(3,060	)		1,872			0.04			9,333		(2,880	)		6,453		0.12
150		9,256		(4,590	)		4,666			0.09			14,163		(4,320	)		9,843		0.18
200		13,579		(6,120	)		7,459			0.15			19,006		(5,760	)		13,246		0.24
300		22,226		(9,180	)		13,046			0.26			28,692		(8,640	)		20,052		0.36
400		30,889		(12,240	)		18,649			0.37			38,406		(11,520	)		26,886		0.49
500		39,567		(15,300	)		24,267			0.48

Exhibit Number			Description of Exhibit

	31.1		Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	31.2		Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	32.1		Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
	32.2		Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).


		Main Street Capital Corporation
Date: May ~~6, 2016~~5, 2017		/s/ VINCENT D. FOSTER Vincent D. Foster Chairman and Chief Executive Officer (principal executive officer)
Date: May ~~6, 2016~~5, 2017		/s/ BRENT D. SMITH Brent D. Smith Chief Financial Officer and Treasurer (principal financial officer)
Date: May ~~6, 2016~~5, 2017		/s/ SHANNON D. MARTIN Shannon D. Martin Vice President and Chief Accounting Officer (principal accounting officer)