Hot Healthcare Equipment Companies To Invest In 2015

Hot Healthcare Equipment Companies To Invest In 2015: Main Street Capital Corp (MAIN)

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, which it generally define as companies with annual revenues between $10 million and $100 million that operate in diverse industries. Main Street's LMM portfolio investments principally consist of secured debt, equity warrants and direct equity investments in privately held LMM companies. Main Street's privately placed portfolio investments consist of primarily debt investments in middle market businesses that are generally larger in size than the portfolio companies within the LMM portfolio. Its LMM portfolio investments range in size from $5 million to $25 million. As of December 31, 2011, it had debt and equity investments in 54 LMM portfolio companies. On February 29, 2012, MSCC completed the exit of its debt investment and a portion of its equity investments in Drilling Info, Inc., (Drilling In fo). Effective September 5, 2013, Main Street Capital Corp acquired TBT Holding Co Inc, a manufacturer of dump trailers, from Harbert Management Corp's Harbert Private Equity Fund II LLC subsidiary.

On January 5, 2012, Main Street fully exited its debt and equity investments in Currie Acquisitions, LLC (Currie). On February 17, 2012, MSCC acquired a total of approximately 8.5% of the total dollar value of the MSC II limited partnership interests not owned by MSCC. The Company has approximately 75% of its total LMM portfolio investments at cost were in the form of debt investments as of December 31, 2011. At December 31, 2011, it had equity ownership in approximately 94% of its LMM portfolio companies and the average fully diluted equity ownership in those portfolio companies was approximately 34%. Its portfolio investments ar! e generally made through MSCC and the Funds.

Debt Investments

The Company's LMM debt investments have terms o f three to seven years, with limited required amortization p! rior to maturity, and provide for monthly or quarterly payment of interest at fixed interest rates generally between 12% and 14% per annum, payable in cash. The Company also provides floating interest rates for a portion of a single tranche debt security. In addition, certain LMM debt investments may have a form of interest that is not paid but is accrued and added to the loan balance and paid at maturity. As of December 31, 2011, 93% of its LMM debt investments at cost were secured by first priority liens on the assets of LMM portfolio companies. In addition to seeking a senior lien position in the capital structure of its LMM portfolio companies, it seeks to limit the downside of its LMM investments by negotiating covenants that are designed to protect its LMM investments while affording its portfolio companies as much flexibility in managing their businesses as is reasonable.

Warrants

In connection with its LMM debt investments, the Company has received equity warrants to establish or increase its equity interest in the LMM portfolio company. Warrants it receives in connection with a LMM debt investment typically require only a nominal cost to exercise, and thus, as a LMM portfolio company appreciates in value, it may achieve additional investment return from this equity interest. The Company structures the warrants to provide provisions protecting the rights as a minority-interest holder, as well as secured or unsecured put rights, or rights to sell such securities back to the LMM portfolio company, upon the occurrence of specified events.

Direct Equity Investments

The Company usually makes its direct equity investments in connection with debt investments. In addition, the Company may have both equity warrants and direct equity positions in some! of its L! MM portfolio companies. The Company makes its direct equity investments in connection with debt investments. In addition, it may have bot h equity warrants and direct equity positions in some of its! LMM port! folio companies. It seeks to maintain fully diluted equity positions in its LMM portfolio companies of 5% to 50%, and may have controlling equity interests in some instances.

Advisors' Opinion:

• [By Grass Hopper]

  Examples of the first class of publicly ‐traded private equity firms include Kohlberg Kravis Roberts & Co. L.P. (KKR), The Blackstone Group L.P. (BX), and Oaktree Capital Group, LLC (OAK). Examples of the second class are Wendel SA (MF FP), Exor SpA (EXO IM) and, to some extent, Reinet Investments SCA (REI SJ). Examples of the third class are American Capital, Ltd. (ACAS), Main Street Capital, Gladstone Capital Corp. (MAIN), and Prospect Capital Corp. (PSEC).

• [By GURUFOCUS]

  Main Street Capital Corporation (MAIN) is a business development company specializing in long- term equity, equity related, and debt investments in small and lower middle market companies. Yield: 6.3%

source from Top Stocks Blog:http://www.topstocksblog.com/hot-healthcare-equipment-companies-to-invest-in-2015.html