MVC Capital Agrees to Sell European Investment in Centile Holdings B.V. to VOIP Holdings GmbH
July 09 2018 - 6:54AM
MVC Capital, Inc. (NYSE:MVC) ("MVC" or the "Fund") announced
today that it has signed an agreement to sell Centile Holdings B.V.
(“Centile”), a leading European developer of unified communications
and fixed-mobile convergence platforms for operators and
integrators to VOIP Holdings GmbH. Consummation of the transaction
is subject to the satisfaction of certain closing conditions and is
anticipated to close by July 31, 2018.
MVC expects to receive gross proceeds of approximately $7.5
million1 , a 2X multiple on its initial investment and a gross IRR
of 11% over the life of the investment2. The anticipated
gross proceeds closely approximate the last reported carrying value
of Centile as of April 30, 2018.
“Selling Centile is consistent with the Fund’s strategy to
monetize its equity investments in order to redeploy capital into
yielding investments. Generating enhanced yield for our
shareholders remains a key strategic priority for MVC. The sale of
Centile, a European-based investment reflects continued progress in
this regard,” said Michael Tokarz, Chairman and Portfolio Manager
of MVC Capital, Inc. “The sale of Centile at a price approximating
its carrying value, despite significant currency headwinds during
our investment hold period, also demonstrates MVC’s and its
Valuation Committee’s adherence to a solid valuation process.”
Q Advisors, a global TMT investment banking boutique, acted as
the exclusive financial advisor to Centile in connection with the
transaction.
MVC-G
About MVC Capital,
Inc.
MVC Capital (MVC) is a business development
company traded on the New York Stock Exchange that
provides long-term debt and equity investment capital to fund
acquisition, growth and recapitalizations of companies in a
variety of industries. For additional information about MVC, please
visit MVC's website at www.mvccapital.com.
_______________1 Gross consideration assumes the full receipt of
all escrow proceeds scheduled to be released 18 months from the
date of closing and excludes: 1) transaction fees and expenses
associated with the sale and 2) currency exchange changes that can
result prior to the close anticipated for July 31, 2018.
2 The anticipated gross IRR since 2011, before fees
and incentive compensation paid, assumes the full receipt of
all net proceeds and takes into consideration all estimated
transaction related expenses. For purposes of calculating the
gross IRR on the sale, the currency exchange rate on the date of
the transaction signing was utilized. The currency value at closing
could be different.
Safe Harbor Statement and Other
Disclosures
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
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: MVC
Capital's ability to deliver value to all shareholders and
execute its yield investment strategy, including enhancing its
yield; the ability to redeploy capital into yield investments; the
ability to monetize equity investments, including closing the
Centile transaction; the ability to monetize other equity
investments at close to their recent carrying values; the ability
to estimate accurately fair valuations for portfolio company
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. All
investments are speculative, involve significant risk and are
subject to a loss of principal and/or interest. MVC Capital
disclaims and does not undertake any obligation to update or revise
any forward-looking statement in this press release.
This press release is for informational purposes
only and is not an offer to purchase or a solicitation of an offer
to sell shares of MVC's common stock.
Investor Relations Contacts
Jackie Rothchild MVC Capital 914.510.9400
Or
Jeffrey Goldberger / Allison Soss KCSA Strategic
Communications 212.896.1249 / 212.896.1267
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