MVC Private Equity Fund Agrees to Sell Plymouth Rock Energy
October 30 2018 - 6:50AM
MVC Capital, Inc. (NYSE: MVC) (“MVC Capital”), a publicly-traded
business development company that makes private debt and equity
investments, announced that MVC Private Equity Fund, L.P. (“MVC PE
Fund”) has agreed to sell its stake in Plymouth Rock Energy
(“Plymouth”) to ENGIE Resources (“ENGIE”). Consummation of the
transaction is subject to the satisfaction of certain closing
conditions, including receiving approval from the Federal Energy
Regulatory Commission. The anticipated closing is expected by
November 30, 2018.
On October 29, 2018, ENGIE agreed to purchase
Plymouth, a leading retail energy provider of natural gas and
electricity. As part of the transaction, MVC PE Fund is
anticipating a gross return on its equity investment in Plymouth of
approximately 3.4X (1), based on the equity investments made
since November 2011 (2).
“We are very pleased with the outcome of this
transaction,” said Shivani Khurana, Managing Director of The Tokarz
Group Advisers, LLC, the Portfolio Manager to MVC PE Fund.
“Throughout the years of MVC’s involvement with Plymouth, we formed
a collaborative partnership with management, helped them expand
their market share and ultimately, sell the business at a favorable
price.”
“The Plymouth team has built a leading energy
marketing company in the Northeast through the hard work of its
highly-skilled personnel and strong investment partners,” said Adam
Sokol, President of Plymouth. “Since 2004, we have organically
grown the business through strong customer relationships and
customer service, and we believe that the business is well
positioned for future growth under ENGIE,” said David Sokol, Vice
President of Plymouth.
“We are very happy with the purchase, and the
fine job done by Plymouth staff to build this portfolio of
customers,” said Graham Leith, Senior Vice President, Head of
Retail, ENGIE Resources. “Plymouth’s customers will join our
portfolio of over 25,000 commercial & industrial power &
natural gas customers, expanding our market share in New York, and
it should give us a much larger presence down-state.”
Since inception of the MVC PE Fund, MVC Capital
invested a total of $14.6 million in the MVC PE Fund. With the
expected exit of Plymouth, coupled with the sale of AccuMed in late
2016, the MVC PE Fund will have returned to MVC Capital $21.8
million or 150% of its total invested capital, with three
investments remaining (3).
KeyBanc Capital Markets acted as the exclusive
financial advisor to Plymouth Rock Energy. Locke Lord acted as the
legal counsel for Plymouth. Plymouth Rock Fuel Corp., a separately
operated entity not owned by Plymouth or MVC PE Fund, is not
included as part of the transaction with ENGIE.
MVC-G
About
MVC
Capital,
Inc.
MVC Capital, Inc. is a Business Development
Company (BDC) 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.
About Plymouth
Rock Energy
Plymouth Rock Energy, LLC, headquartered in Woodmere, NY, is a
leading energy supplier of natural gas and electricity with
approximately 465,000 Residential Customer Equivalents operating in
39 utility markets in the following 7 states: New York, New Jersey,
Pennsylvania, Maryland, Ohio, Illinois and Massachusetts.
About ENGIE
Resources
ENGIE Resources is a subsidiary of ENGIE North America and part
of the international energy group ENGIE. ENGIE is one of the
largest electricity suppliers to non-residential customers in the
United States and offers solar and other renewable energy options,
demand response and on-bill financing as well as customized plans.
ENGIE strives to offer valuable products and services, strong
customer service and financial strength to its customers. For more
about ENGIE Resources, call 1-866-999-8374.
Forward-Looking Statements
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 close the Plymouth transaction; receipt of the escrow proceeds
from the above transaction; the performance of MVC Private Equity
Fund and its portfolio companies; MVC Capital's ability to execute
its investment strategy; the performance of MVC Capital's
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. MVC Capital
disclaims and does not undertake any obligation to update or revise
any forward-looking statement in this press release.
CONTACT: MVC Capital, Inc.
Investor Relations:Jackie Shapiro-RothchildMVC
Capital914-510-9400
ENGIE
Corporate CommunicationsJulie VitekENGIE North
America713-636-1962
[1] The anticipated gross return of 3.4X assumes the full
receipt of the escrow proceeds that are anticipated to be released
at various dates ranging from 120 days from closing through one
year following the closing. The gross return on investment excludes
the carried interest and other fees charged to
investors.[2] Past performance is no guarantee of future
results. The return data shown excludes $4.9 million of debt
invested by the MVC PE Fund since 2011, which was repaid in full in
June 2018.[3] The return data shown includes escrow
proceeds.
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