MVC Announces Stock Buyback of Up to $15 Million
September 18 2018 - 6:55AM
MVC Capital, Inc. (NYSE:MVC) ("MVC"), a publicly traded business
development company that makes private debt and equity investments
announced that, after discussions with various large shareholders
and taking into account Management’s recommendations, the Board has
approved the Company’s implementation of a $10 million stock
repurchase program. The program, which is to be completed by
the end of the 2018 calendar year, will consist of an issuer tender
offer and/or open market repurchases. The offer price of any
tender offer would be determined prior to the commencement of the
offer based upon market and other factors.
In addition, the Board directed the Company to
pursue an additional $5 million in stock repurchases in the open
market in 2019, using a portion of the proceeds of equity
monetizations and subject to MVC’s common stock continuing to trade
at a significant discount to NAV. Open market repurchases
would be made pursuant to the Company’s unlimited stock repurchase
program adopted in 2013.
Additionally, the Board announced that, also as
a result of company discussions with certain shareholders, it has
determined to nominate an additional director, Scott Krase, for
election at the 2018 Annual Meeting of the shareholders of
MVC. The other nominees for election at the 2018 Annual
Meeting are the current seven directors of MVC. The 2018
Annual Meeting will be held on October 30, 2018. Further
information on the nominees will be included in the Company’s proxy
statement to be filed in connection with the 2018 Annual
Meeting.
The repurchases being announced today represent
the Board’s further steps to address MVC’s share price
discount to NAV. In 2017, the Company repurchased a total of
$40 million of shares through two dutch tender offers. In
addition, MVC continues to be focused on yield investment activity
seeking to drive value for all shareholders.
THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES
ONLY AND DOES NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF
AN OFFER TO SELL SHARES OF MVC CAPITAL COMMON STOCK. A TENDER
OFFER FOR SHARES OF MVC CAPITAL COMMON STOCK DESCRIBED IN THIS
PRESS RELEASE HAS NOT COMMENCED. IF A TENDER OFFER IS COMMENCED, IT
WILL BE MADE ONLY PURSUANT TO AN OFFER TO PURCHASE, LETTER OF
TRANSMITTAL AND RELATED MATERIALS THAT MVC CAPITAL WOULD DISTRIBUTE
TO ITS SHAREHOLDERS AND FILE WITH THE SECURITIES AND EXCHANGE
COMMISSION. SHAREHOLDERS AND INVESTORS SHOULD READ CAREFULLY THE
OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS
BECAUSE THEY WOULD CONTAIN IMPORTANT INFORMATION, INCLUDING THE
VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER. SHAREHOLDERS
AND INVESTORS WILL BE ABLE TO OBTAIN A FREE COPY OF THE TENDER
OFFER STATEMENT ON SCHEDULE TO, THE OFFER TO PURCHASE, LETTER OF
TRANSMITTAL AND OTHER DOCUMENTS THAT MVC CAPITAL WOULD FILE WITH
THE SECURITIES AND EXCHANGE COMMISSION AT THE COMMISSION'S WEBSITE
AT WWW.SEC.GOV OR BY CALLING THE INFORMATION AGENT
(IDENTIFIED AT THE TIME THE OFFER IS MADE) FOR THE TENDER OFFER.
SHAREHOLDERS ARE URGED TO CAREFULLY READ THESE MATERIALS PRIOR TO
MAKING ANY DECISION WITH RESPECT TO ANY TENDER OFFER.
MVC-G
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. For
additional information about MVC, please visit MVC's website at
www.mvccapital.com.
Safe Harbor Statement and Other
Disclosures
The information contained in this press release
contains forward-looking statements, including with respect to the
commencement of a tender offer or other share repurchases by the
Company as currently intended, any equity monetization and
the expectation that its strategies should result in a narrowing or
elimination of the discount of the Company's share price to NAV.
These forward-looking statements are subject to the inherent
uncertainties in predicting future events, activities, results and
circumstances. Certain factors could cause actual events,
activities, results and circumstances to differ materially from
those contained in these forward-looking statements, including,
among other things: the extent of the Company's cash position from
time to time and alternative opportunities for deployment of its
cash; the ability of the Company to identify suitable yielding
investments and to consummate such investments on terms the Company
deems appropriate; the ability of the Company to dispose of its
remaining equity portfolio on suitable terms and the timing of any
such dispositions; the performance of the Company's investments;
and economic, business and market factors affecting the market
price of the Company's shares, including factors that may be
unrelated to the Company's performance; general economic, business
and market factors; and other factors identified under "Risk
Factors" in the Company's periodic reports that it files with the
Securities and Exchange Commission.
There can be no assurance that MVC will achieve
its investment objectives. There is no assurance that the market
price of MVC's shares, either absolutely or relative to net asset
value, will increase as a result of any of the activities discussed
in this release, or otherwise that the yield investment activity
will enhance shareholder value over the long-term. The Company
assumes no duty to update any of the disclosures contained in this
press release.
Additional Information and Where to Find
It
The Company will file a definitive proxy
statement on Schedule 14A with the SEC in connection with the
solicitation of proxies for its 2018 Annual Meeting of
Stockholders. Before making any voting decision with respect to
matters to be presented to the Annual Meeting, shareholders are
urged to read all relevant documents filed with or furnished to the
SEC, including among other things the Company's definitive proxy
statement and any supplements thereto, which contain important
information. Shareholders may obtain a free copy of the definitive
proxy statement and other relevant documents that the Company files
with or furnishes to the SEC from the SEC's website at www.sec.gov
or the Company's website at www.mvccapital.com as soon as
reasonably practicable after such materials are electronically
filed with, or furnished to, the SEC.
Investor Contact
Jackie Rothchild MVC Capital 914.510.9400
Or
Jeffrey Goldberger / Allison Soss KCSA Strategic
Communications 212.896.1249 / 212.896.1267
MVC Capital (NYSE:MVC)
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