MVC Capital (MVC) Agreement to Sell ...

MVC Capital (MVC) Agreement to Sell Its Investment in US Gas & Electric

Posted in the San Diego Forum

Mike Zaman

Henderson, NV

#1 Oct 4, 2013
Mike Zaman Reporting

MVC Capital, Inc.(NYSE:MVC)(the "Fund"), a publicly traded business development company that makes private debt and equity investments, announced today that an agreement has been reached to sell U.S. Gas & Electric, Inc.("USG&E" or the "Company"), MVC's largest portfolio holding, to United States Gas & Electric Holdings, Inc.("US Holdings"), a holding company primarily owned by Mr. Louis Beck, Mr. Lance T. Shaner and members of the management of USG&E.

The transaction, which is subject to regulatory approvals and various other closing conditions, including US Holdings successfully obtaining significant third-party financing, is expected to close by October 31, 2013. Upon satisfaction of the closing conditions, including establishment of an escrow, MVC expects to receive gross proceeds of approximately $97.2 million for its equity investment, resulting in a realized gain of approximately $96.7 million1 based upon a $500,000 equity investment made in August 2007. As of July 31, 2013, MVC's equity investment in the Company was valued at $92.7 million. In addition to the equity proceeds and upon closing, USG&E will also retire an approximate $10.2 million second lien loan previously provided by MVC. Since October 2012, MVC has received distributions from USG&E of approximately $10 million.


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