PURCHASE, N.Y., July 30, 2015 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) ("MVC" or the "Company"), a publicly traded business development company that makes private debt and equity investments, today provided an update on recent activity in its portfolio.
Investment Portfolio Activity Update
MVC monetized its investments in Prepaid Legal Services, Inc. ("Prepaid Legal") and Velocitius B.V. ("Velocitius") for net proceeds of approximately $19.2 million. In addition, MVC closed three new loans totaling approximately $11.8 million:
Monetizations
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MVC sold its position in Prepaid Legal for $10.0 million, generating an 11.6% return, plus fees over two years. In July 2013, MVC made a $10.0 million second lien term loan as part of a syndicate that refinanced Prepaid Legal's outstanding debt into a senior secured credit facility.
- MVC monetized virtually its entire position in Velocitius, a holding company that manages wind farms in Germany, for approximately $9.2 million1. MVC made its initial equity investment in Velocitius in 2006 with a follow-on investment in 2007 at an aggregate cost of $11.4 million.
Investments
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Initials, Inc. is a direct-selling company that offers customized bags, organizational products and fashion accessories.
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MVC invested $4.75 million in a Second Lien Note with a coupon of 12% cash and 3% PIK.
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MVC invested $4.75 million in a Second Lien Note with a coupon of 12% cash and 3% PIK.
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Thunderdome Restaurants, LLC is a family run restaurant group. MVC's financing is expected to support Thunderdome's expansion into more locations.
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MVC invested approximately $2 million in a Second Lien Note with a coupon of 12% cash.
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MVC invested approximately $2 million in a Second Lien Note with a coupon of 12% cash.
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United States Technologies, Inc. provides electronics design, manufacturing, engineering, testing, repair and refurbishment services for componentry critical to the defense, medical and nuclear industries. The proceeds from MVC's loan were used to refinance existing debt and for a strategic add-on acquisition.
- MVC invested $5 million in a First Lien Note with a coupon of 10.5% cash.
MVC's recent portfolio activity continues the process of monetizing investments and redeploying capital into income-oriented opportunities. Monetizing Velocitius reduces MVC's exposure and currency risk to Europe, where the economic climate remains challenging. Through proprietary deal flow and MVC's recently expanded investment team with significant lending experience, MVC's portfolio continues to shift to yielding investments.
About MVC Capital, Inc.
MVC is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit MVC's website at www.mvccapital.com.
Forward Looking Statements
The information contained in this report contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: the performance of MVC Capital's investments; the future performance of Initials, Inc., Thunderdome Restaurants, LLC and United States Technologies, Inc. and their ability to service and repay MVC Capital's loans; MVC Capital's ability to execute its yield investment strategy; and changes in economic or financial market conditions and other factors that are enumerated in the Company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this report.
1 The $9.2 million includes fees received upon exit and a $122K loss associated with a short-term hedge to protect the value of the transaction against fluctuations in the Euro.