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Main Street Announces $10MM Investment in AFG Capital

November 13, 2014, 07:53 AM
Filed Under: Rental

Main Street Capital Corporation recently led a new portfolio investment totaling $10 million of invested capital in AFG Capital Group, LLC ("AFG"), with Main Street funding $8.0 million of the investment. The proceeds of the investment were used to complete a minority recapitalization, refinance existing debt and provide capital to fund AFG's near-term growth opportunities. Main Street's investment in AFG included $6.8 million of first-lien, senior secured term debt with equity warrant participation and a $1.2 million equity investment.In addition, Main Street and its co-investor are providing AFG a commitment for additional term loans to support its future growth opportunities.

Headquartered in Grandview, Texas, and founded in 2004, AFG offers rent-to-own financing solutions to various manufacturers, including barn, carport, storage shed and other manufacturers nationwide. AFG operates through several subsidiaries and under several trade names in addition to AFG, including AFG Rentals, Corland Leasing and Leland's Rentals.

AFG is a leading provider of its rent-to-own financing solutions in Texas, and also provides its solutions in the South and the mid-Atlantic. Main Street's investment will enable AFG to continue to grow its existing operations and also execute on its near-term opportunities to expand its operations to additional manufacturers nationwide.

Main Street completed its investment to support AFG's management team, which retained majority equity ownership of AFG. Main Street is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.

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