Main Street Capital (NYSE: MAIN) Invests $66 Million in Flame King Holdings for Growth
- Main Street Capital invests $66 million in Flame King Holdings to enhance operational capabilities and support growth.
- The investment, structured as senior secured debt, aims to meet Flame King’s working capital needs.
- Main Street Capital previously invested in Flame King in 2021, reflecting confidence in its market expansion potential.
Main Street Capital Fuels Growth for Flame King Holdings with $66 Million Investment
Main Street Capital Corporation (NYSE: MAIN) makes a substantial move in the propane storage industry by announcing a $66 million investment in Flame King Holdings, LLC on July 2, 2025. This funding is part of a minority recapitalization effort aimed at enhancing Flame King's operational capabilities and supporting its ongoing growth initiatives. The investment, structured as first-lien, senior secured term debt, is designed to meet the company's working capital needs and is complemented by a revolving line of credit. Main Street Capital previously invested in Flame King in October 2021, indicating a strong belief in the company's potential for expansion within the propane storage solutions market.
Flame King, established in 1998 and headquartered in Commerce, California, is recognized as a leading supplier of propane storage products. The company offers a wide range of steel and aluminum propane cylinders, available in sizes from 1 lb. to 420 lbs. These products cater to a diverse clientele, including recreational users, commercial businesses, and industrial clients, and are distributed through retailers, propane tank exchanges, RV original equipment manufacturers (OEMs), and online channels. This latest investment is poised to bolster Flame King's ability to innovate and meet the increasing demand for propane storage solutions, as the market continues to evolve.
By providing tailored long-term debt and equity capital solutions to lower middle-market companies, Main Street Capital demonstrates its commitment to fostering growth in sectors that reflect potential for significant development. The partnership with Flame King exemplifies Main Street's strategy to collaborate closely with management teams and entrepreneurs, offering customized financing alternatives that align with their operational goals. This strategic investment not only enhances Flame King's market position but also underscores Main Street Capital's role as a vital contributor to the propane storage industry’s growth narrative.
In addition to its investment activities, Main Street Capital also manages assets for external parties through its subsidiary, MSC Adviser I, LLC. This dual focus on capital provision and asset management strengthens Main Street's footprint in the investment landscape, allowing it to play a pivotal role in the growth of innovative companies like Flame King while serving a diverse range of investors.
