Exhibit 10.1

 

Execution Version

 

SUPPLEMENT AND JOINDER AGREEMENT

 

THIS SUPPLEMENT AND JOINDER AGREEMENT (this “Agreement”), dated as of December 30, 2011, is being executed and delivered pursuant to that certain Amended and Restated Credit Agreement, dated as of September 20, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Main Street Capital Corporation, a Maryland corporation (the “Borrower”), the Guarantors party thereto, Branch Banking and Trust Company, as administrative agent (the “Administrative Agent”), Regions Capital Markets, as Syndication Agent, BB&T Capital Markets, as lead arranger, and the Lenders from time to time party thereto by Amegy Bank N.A. (the “Additional Lender”), the Required Lenders (as defined in the Credit Agreement), the Borrower, the Guarantors and the Administrative Agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

RECITALS

 

Pursuant to Section 2.14 of the Credit Agreement, the Borrower has notified the Administrative Agent that the Borrower proposes to increase the aggregate Revolver Commitments under the Credit Agreement by $25,000,000 from the current $210,000,000 to $235,000,000.

 

The Additional Lender has agreed to extend to the Borrower a new Revolver Commitment in the amount of $20,000,000 and to become a Lender for all purposes of the Credit Agreement.

 

Cadence Bank, N.A., an existing Lender under the Credit Agreement (“Cadence Bank”), has agreed to increase its Revolver Commitment to the Company from $17,500,000 to $22,500,000.

 

As required by Section 2.14(a) of the Credit Agreement, the Administrative Agent has given each of the Lenders the right of first refusal for participating in the Commitment Increase and each Lender has declined to participate as an Increasing Lender.

 

The parties to this Agreement are entering into this Agreement for purposes of (a) effecting the Commitment Increase under the Credit Agreement and (b) the extension of the new Revolver Commitment of the Additional Lender and the increased Revolver Commitment of Cadence Bank, all as contemplated by Section 2.14 of the Credit Agreement.

 

NOW, THEREFORE, in consideration of the Recitals and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Additional Lender, the Lenders, the Borrower, the Guarantors and the Administrative Agent, intending to be legally bound hereby, agree as follows:

 











 

SECTION 1.           Recitals.  The Recitals are incorporated herein by reference and shall be deemed to be a part of this Agreement.

 

SECTION 2.           Commitment Increase.  By executing and delivering this Agreement, the Additional Lender hereby becomes a party to the Credit Agreement as a Lender thereunder with the same force and effect as if originally named therein as a Lender and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Lender thereunder.  The Administrative Agent hereby approves the Additional Lender as an Eligible Assignee.  The Additional Lender hereby extends to the Borrower, subject to and on the terms and conditions set forth in the Credit Agreement, a Revolver Commitment in the amount of $20,000,000, from and after the Effective Date of this Agreement, and agrees to perform in accordance with the terms thereof all of the obligations which by the terms of the Credit Agreement and the other Loan Documents are required to be performed by it as a Lender thereunder.  The Additional Lender represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) from and after the Effective Date of this Agreement, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and shall have and perform all of the obligations of a Lender thereunder, and (iii) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements of the Borrower delivered pursuant to Section 5.01 of the Credit Agreement, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to extend the Revolver Commitment to the Borrower pursuant to the terms of the Credit Agreement, on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender.  The Additional Lender agrees that it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions and analysis in taking or not taking action under the Credit Agreement or any other Loan Documents.

 

Cadence Bank hereby extends to the Borrower, subject to and on the terms and conditions set forth in the Credit Agreement, a Revolver Commitment in the amount of $22,500,000, from and after the Effective Date of this Agreement, and agrees to perform in accordance with the terms thereof all of the obligations which by the terms of the Credit Agreement and the other Loan Documents are required to be performed by it as a Lender thereunder.

 

The Required Lenders hereby waive the requirement set forth in Section 2.14(d)(i)(F) for a legal opinion in connection with the Commitment Increase contemplated by this Agreement.  The Required Lenders hereby waiver the requirement set forth in Section 2.14(a) for a ten (10) days notice period in connection with the Commitment Increase.

 

SECTION 3.           Obligations of Lenders.  Each party hereto acknowledges and agrees that the Revolver Commitments of the Additional Lender and the other Lenders under the Credit Agreement are several and not joint commitments and obligations of such Lenders.

 

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SECTION 4.           Conditions to Effectiveness.  Each party hereto agrees that this Agreement and the effectiveness of the Commitment Increase as provided in this Agreement shall be subject to satisfaction by the Borrower of the following conditions and requirements:

 

(a)           The Borrower shall have delivered to the Administrative Agent the following in form and substance satisfactory to the Administrative Agent:

 

(i)            duly executed counterparts of this Agreement signed by the Additional Lender, the Borrower and the Guarantors;

 

(ii)           a duly executed Revolver Note payable to the Additional Lender (the “Note”);

 

(iii)          a duly executed Revolver Note payable to Cadence Bank in the amount of $22,500,000 (the “Amended Cadence Note”);

 

(iv)          a certificate of the Secretary or Assistant Secretary of the Borrower and each Guarantor, certifying to and attaching the resolutions adopted by the board of directors (or similar governing body) of such party approving or consenting to the Commitment Increase, the Note and the Amended Cadence Note;

 

(v) a certificate of the Chief Financial Officer or another Responsible Officer of the Borrower, certifying that (x) as of the Commitment Increase Date, all representations and warranties of the Borrower and the Guarantors contained in this Agreement and the other Loan Documents are true and correct (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty is true and correct as of such date), (y) immediately after giving effect to the Commitment Increase (including any Borrowings in connection therewith and the application of the proceeds thereof), the Borrower is in compliance with the covenants contained in Article V of the Credit Agreement, and (z) no Default or Event of Default has occurred and is continuing, both immediately before and after giving effect to such Commitment Increase (including any Borrowings in connection therewith and the application of the proceeds thereof);

 

(vi)  such other documents or items that the Administrative Agent, the Lenders or their counsel may reasonably request.

 

(b)           The Borrower shall have paid (i) to the Additional Lender an upfront fee in an amount separately agreed between the Borrower, the Administrative Agent and the Additional Lender, (ii) to Cadence Bank an upfront fee in an amount separately agreed between the Borrower, the Administrative Agent and Cadence Bank and (iii) to the Administrative Agent an arrangement fee in an amount previously agreed between the Borrower and the Administrative Agent.

 

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(c)           The Borrower shall have paid to the Administrative Agent, upon application with appropriate documentation, all reasonable costs and expenses of the Administrative Agent, including reasonable fees, charges and disbursements of counsel for the Administrative Agent, incurred in connection with this Agreement and the transactions contemplated herein.

 

SECTION 5.           Representations and Warranties. The Borrower and the Guarantors hereby represent and warrant to each of the Lenders as follows:

 

(a)           No Default or Event of Default under the Credit Agreement or any other Loan Document has occurred and is continuing unwaived by the Lenders on the date hereof, or shall result from the Commitment Increase.

 

(b)           The Borrower and the Guarantors have the power and authority to enter into this Agreement and issue the Note and the Amended Cadence Note and to do all acts and things as are required or contemplated hereunder or thereunder to be done, observed and performed by them.

 

(c)           Each of this Agreement, the Note and the Amended Cadence Note has been duly authorized, validly executed and delivered by one or more authorized officers of the Borrower and the Guarantors and constitutes the legal, valid and binding obligations of the Borrower and the Guarantors enforceable against them in accordance with their respective terms.

 

(d)           The execution and delivery of each of this Agreement, the Note and the Amended Cadence Note and the performance by the Borrower and the Guarantors hereunder and thereunder do not and will not require the consent or approval of any regulatory authority or governmental authority or agency having jurisdiction over the Borrower, or any Guarantor, nor be in contravention of or in conflict with the articles of incorporation, bylaws or other organizational documents of the Borrower, or any Guarantor that is a corporation, the articles of organization or operating agreement of any Guarantor that is a limited liability company, or the provision of any statute, or any judgment, order or indenture, instrument, agreement or undertaking, to which any Borrower, or any Guarantor is party or by which the assets or properties of the Borrower and the Guarantors are or may become bound.

 

SECTION 6.           Effect of Agreement.  On the Effective Date, this Agreement shall have the effects set forth in Section 2.14(e) of the Credit Agreement and the Additional Lender, Cadence Bank and the Administrative Agent shall make such payments and adjustments among the Lenders as are contemplated thereby such that each Lender’s Advances remain consistent with their pro rata percentage of the Revolver Commitments after giving effect to the Commitment Increase.  The Revolver Commitment of the Additional Lender and Cadence Bank shall be as set forth on the signature pages to this Agreement and the Revolver Commitments of all existing Lenders shall remain unchanged from those set forth on the signature pages to the Credit Agreement and restated on the signature pages hereto.  For ease of reference, the percentage interest of each Lender after giving effect to the Commitment Increase is also set forth on the signature pages hereto.

 

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SECTION 7.           No Other Amendment.  Except as supplemented hereby, the Credit Agreement and all other documents executed in connection therewith shall remain in full force and effect.  The Credit Agreement, as supplemented hereby, and all rights, powers and obligations created thereby or thereunder and under the Loan Documents and all such other documents executed in connection therewith are in all respects ratified and confirmed.

 

SECTION 8.           Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same agreement.

 

SECTION 9.           Governing Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of North Carolina.

 

SECTION 10.         Effective Date.  The date on which the conditions set forth in this Agreement have been satisfied shall be the “Effective Date” of this Agreement.

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered, or have caused their respective duly authorized officers and representatives to execute and deliver, this Agreement as of the day and year first above written.

 

 

	
 
    	
ADDITIONAL   LENDER
    
	
 
    	
 
    	
 
    
	
COMMITMENTS
    	
AMEGY   BANK N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy Zawinsky
    
	
 
    	
Name:
    	
Timothy   Zawinsky
    
	
 
    	
Title:
    	
Vice   President
    
	
Revolver Commitment:
    	
 
    	
 
    
	
$20,000,000
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
8.5106383%
    	
 
    	
 
    
	
 
    	
 
    	
Amegy   Bank N.A.
    
	
 
    	
 
    	
4400   Post Oak Parkway
    
	
 
    	
 
    	
Houston,   Texas 77027
    
	
 
    	
 
    	
Attn:   Timothy Zawinsky
    
	
 
    	
 
    	
Telephone:   713-232-2217
    


 

[SIGNATURE PAGE TO SUPPLEMENT AND JOINDER AGREEMENT]

 











 

	
New Revolver Commitment:
    	
CADENCE   BANK, N.A.
    
	
$22,500,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
9.5744681%
    	
By:
    	
/s/   Edward H. Braddock
    
	
 
    	
Name:
    	
Edward   H. Braddock
    
	
 
    	
Title:
    	
Executive   Vice President
    


 

[SIGNATURE PAGE TO SUPPLEMENT AND JOINDER AGREEMENT]

 











 

	
 
    	
BORROWER
    
	
 
    	
 
    	
 
    
	
 
    	
MAIN   STREET CAPITAL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Reppert
    
	
 
    	
Name:
    	
Todd   A. Reppert
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INITIAL   GUARANTOR
    
	
 
    	
 
    
	
 
    	
MAIN   STREET CAPITAL PARTNERS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rodger Stout
    
	
 
    	
Name:   
    	
Rodger   Stout
    
	
 
    	
Title:
    	
Chief   Financial & Administrative Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INITIAL   GUARANTOR
    
	
 
    	
 
    
	
 
    	
MAIN   STREET EQUITY INTERESTS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rodger Stout
    
	
 
    	
Name:   
    	
Rodger   Stout
    
	
 
    	
Title:
    	
Vice   President, Treasurer and Assistant Secretary
    


 

[SIGNATURE PAGE TO SUPPLEMENT AND JOINDER AGREEMENT]

 











 

	
COMMITMENTS:
    	
ADMINISTRATIVE   AGENT AND LENDER
    
	
 
    	
 
    	
 
    
	
Revolver Commitment:
    	
BRANCH   BANKING AND TRUST COMPANY
    
	
$50,000,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
21.2765958%
    	
By:
    	
/s/   Michael F. Skorich
    
	
 
    	
Name:   
    	
Michael   F. Skorich
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
REQUIRED   LENDERS
    
	
 
    	
 
    
	
Revolver Commitment:
    	
CAPITAL   ONE, N.A.
    
	
$35,000,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
14.893617%
    	
By:
    	
/s/   Keith Morton
    
	
 
    	
Name:
    	
Keith   Morton
    
	
 
    	
Title:
    	
VP,   Underwriter
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Revolver Commitment:
    	
THE   FROST NATIONAL BANK
    
	
$30,000,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
12.7659574%
    	
By:
    	
/s/   Brenda Murphy
    
	
 
    	
Name:
    	
Brenda   Murphy
    
	
 
    	
Title:
    	
Market   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Revolver Commitment:
    	
REGIONS   BANK
    
	
$30,000,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
12.7659574%
    	
By:
    	
/s/   Larry C. Stephens
    
	
 
    	
Name:
    	
Larry   C. Stephens
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Revolver Commitment:
    	
TEXAS   CAPITAL BANK
    
	
$25,000,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
10.6382979%
    	
By:
    	
/s/   Brent Johnston
    
	
 
    	
Name:
    	
Brent   Johnston
    
	
 
    	
Title:
    	
Executive   Vice President
    


 

[SIGNATURE PAGE TO SUPPLEMENT AND JOINDER AGREEMENT]

 











 

	
Revolver Commitment:
    	
COMPASS   BANK
    
	
$22,500,000
    	
 
    	
 
    
	
Percentage Interest:
    	
 
    	
 
    
	
9.5744681%
    	
By:
    	
/s/   David C. Moriniere
    
	
 
    	
Name:
    	
David   C. Moriniere
    
	
 
    	
Title:
    	
Senior   Vice President
    


 

[SIGNATURE PAGE TO SUPPLEMENT AND JOINDER AGREEMENT]