Blog Coverage Main Street Capital Exits from Daseke Following Merger of Daseke with Hennessy Capital Acquisition Corp. II
LONDON, UK / ACCESSWIRE / December 30, 2016 / Active Wall St. blog coverage looks at the headline from investment firm Main Street Capital Corp. (NYSE: MAIN) as the Company announced on December 29, 2016, that it would exit from Transportation and Logistics company Daseke Inc. following the merger of Daseke with blank cheque company Hennessy Capital Acquisition Corp. II (NASDAQ: HCAC). Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
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Event leading to the exit by Main Street
On December 23, 2016, Daseke announced that it had entered into an agreement to merge with HCAC, wherein HCAC will acquire a minor stake and merge into Daseke. The merger will help Daseke transform into a public listed company with NASDAQ. Under the agreed terms, HCAC will acquire all outstanding shares of Daseke and change its name to Daseke. The transaction will lead to Daseke becoming a publicly traded company with an initial enterprise value of $702 million. The transaction will also result in HCAC acquiring the debts, tax burden, and repurchase of shares from certain shareholders of Daseke. One of the shareholders being Main Street Capital, it will receive payment for its debt investment on completion of the merger leading it to exit from Daseke. The merger will also end Main Street's equity investment in Daseke.
Main Street is confident that the value received for its investment in Daseke would be above the fair market value.
The Daseke/HCAC merger is expected to be completed in the first quarter of 2017, subject to customary closing conditions and regulatory approvals.
About the Companies
Hennessy Capital Acquisition Corp. II is a blank check company founded by Daniel J. Hennessy for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Daseke was founded in 2009 and is currently a leading consolidator of the open deck freight market in North America. Daseke has over a period of time acquired other transportation companies helping it become the largest owner of open deck equipment and the second largest open deck transportation and logistics solutions company in North America.
Main Street is an investment firm that offers long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
Main Street's Major and most Recent Corporate Developments and News
On December 22, 2016 Main Street invested $22.8 million in Clad-Rex Steel, LLC leading specialty manufacturer of vinyl-clad metal used in a variety of industrial, commercial and consumer applications as an alternative to conventional pre-painted and powder-coated metals. With this investment, Main Street bought off the non-management equity owners, of Clad-Rex. The funding is a combination of first-lien, senior secured term debt, and direct equity investment in Clad-Rex.
Main Street had announced its financial results for the third quarter of 2016 in November 2016. The Company reported the total investment income of $46.6 million for the third quarter. Main Street had also declared regular monthly dividends totaling $0.555 per share for the fourth quarter of 2016. Additionally, it declared a semi-annual supplemental cash dividend of $0.275 per share for December 2016.
Stock Performance
At the close of trading on Thursday, December 29, 2016, Main Street Capital's stock ended the session at $36.82, marginally up 0.25% from its previous closing price of $36.73. A total volume of 225.44 thousand shares have exchanged hands. Main Street Capital's stock price advanced 6.97% in the past three months, 12.09% in the last six months, and 26.53% in the previous twelve months. Furthermore, since the start of the year, shares of the company have surged 26.62%. The stock is trading at a PE ratio of 19.34 and has a dividend yield of 6.03%.
Hennessy Capital Acquisition's share price finished yesterday's trading session at $10.09, rising slightly by 0.30%. A total volume of 76.41 thousand shares exchanged hands. The stock has advanced 2.44%, 2.96%, and 2.44% in the last month, the previous three months and past six months, respectively. Furthermore, since the start of the year, shares of the company have gained 4.67%. The stock currently has a market cap of $67.98 million.
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