ETFs
MCC

Medley Capital Jumps After Settlement Reached Related to Proposed Merger With Sierra Income

Medley Capital (MCC) and FrontFour Capital Group LLC, an investment management group, said Tuesday that they have entered into a settlement related to Medley's planned merger with Sierra Income Corp. and Sierra's proposed concurrent purchase of Medley Management (MDLY).

The agreement allows Medley Capital to undertake a "go-shop" process to solicit superior transactions to the merger, and, if the deal is consummated, a settlement fund will be created. It will consist of $17 million of cash and $30 million of Sierra common stock.

As part of the settlement, two new independent directors were named to the company's board, including David Lorber, co-founder of FrontFour.

"We are pleased to have come to an understanding that is expected to provide MCC stockholders with considerably more value in connection with the proposed mergers if consummated, and new, independent voices in the boardroom to help steer the 'go-shop' process to solicit superior transactions," Lorber said in a statement.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MCC MDLY

Latest ETFs Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More