PURCHASE, N.Y., Dec. 16, 2013 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (the "Fund"), a publicly traded business development company that makes private debt and equity investments, announced today the termination of its agreement to sell U.S. Gas and Electric ("USG&E"), a portfolio company, to United States Gas & Electric Holdings, Inc. ("US Holdings"), a company organized to acquire USG&E.
US Holdings was unable to satisfy the closing conditions of the original agreement (October 4, 2013) and subsequently submitted a transaction termination notice to MVC on December 10, 2013. Following the expiration of the exclusive closing rights granted to US Holdings as part of the sale agreement, the Board of Directors of MVC Capital determined it prudent and in the best interest of its shareholders to then reopen the sale process.
"While we are disappointed USG&E was not sold under the terms of the original agreement, this significant, performing asset provides MVC with optionality," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital. Mr. Tokarz stated "We have received indications of interest to purchase USG&E from other potential buyers. We also note the viable option to retain ownership of USG&E and look to benefit from its consistent operating performance, growth potential and solid cash flow."
ABOUT U.S. GAS & ELECTRIC
U.S. Gas & Electric, its subsidiaries and family of companies ("USG&E") is a leading retail energy supplier to commercial and residential customers in Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, and Pennsylvania. USG&E provides energy to customers with wide ranges of energy usage patterns and requirements and gives them the benefit of being a part of a large wholesale buying pool.
About MVC Capital, Inc.
MVC Capital, Inc. 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 transactional outcomes, future results and conditions. Certain factors could cause actual outcomes, results and conditions to differ materially from those projected in these forward-looking statements, including: the ability of any potential USG&E buyer to enter into and complete a binding transaction to purchase USG&E; MVC Capital's ability to execute its investment strategy; the performance and cash flow of USG&E and MVC Capital's other investments; 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. There can be no assurance that MVC Capital will successfully enter into and close a transaction to sell USG&E to any potential buyer or that USG&E will continue to perform successfully. Past performance is no guarantee of future results. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release. Investors are referred to the website of MVC Capital at www.mvccapital.com, where MVC Capital may provide updated information on the status of any USG&E transaction, as and when MVC Capital may deem it appropriate to do so.
CONTACT: Investor Relations:
Jeffrey Goldberger / Garth RussellKCSA Strategic Communications
212-896-1249 / 212-896-1250
Nathaniel Garnick / Patrick ScanlanSard Verbinnen & Co
Source: MVC Capital