By GlobeNewswire, October 11, 2013, 08:50:00 AM EDT
PURCHASE, N.Y., Oct. 11, 2013 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, today announced that it has invested $7.5 million in Advantage Insurance Holdings Ltd. ("Advantage"), a provider of specialty insurance, reinsurance and related services. Advantage management and other investors participated in the financing alongside MVC.
Advantage is an international insurance holding company with subsidiaries in the United States, Puerto Rico and the Cayman Islands. Today, Advantage serves over 200 clients worldwide and administers over $1.2 billion of insurance assets. GSO Capital Partners, the debt investment platform of Blackstone, serves as the exclusive investment adviser to Advantage for the general account portfolios of its insurance company subsidiaries.
MVC's investment in newly-issued convertible preferred shares provides Advantage with the capital needed to grow its core insurance businesses and pay down short term debt. The terms of the convertible preferred include an 8% liquidation preference compounded annually in addition to full participation in any equity appreciation of Advantage. MVC also holds certain ongoing liquidity rights as well as an option to purchase additional shares. The annual liquidity rights, which are subject to certain conditions, begin in 2014.
"We are excited to partner with Advantage, which for the last twenty years has delivered impressive growth on a limited capital base," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc. "We are confident that the Advantage team can profitably grow its insurance business and that GSO can deliver strong returns on Advantage's capital and surplus. Our preferred stock investment seeks to provide MVC with downside protection and potential liquidity options, while retaining equity upside in the potential future growth of Advantage."
Walter Keenan, Chief Executive Officer of Advantage, said, "We appreciate the support from MVC Capital, and look forward to leveraging the deep experience of the MVC team as we seek to grow Advantage's business over the coming years."
About MVC Capital, Inc.
MVC Capital 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.
The information contained in this press release 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: Advantage's ability to achieve its expected financial results and business objectives; MVC Capital's ability to execute its investment strategy; the performance of MVC Capital's investments (including the investment in Advantage); 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 press release.
CONTACT: Investor Relations
Jackie RothchildMVC Capital
Jeffrey Goldberger / Garth RussellKCSA Strategic Communications
212-896-1249 / 212-896-1250
Nathaniel Garnick / Patrick ScanlanSardVerbinnen& Co
Source: MVC Capital