MVC Private Equity Fund Completes Sale of Plymouth Rock Energy to ENGIE Resources
December 21 2018 - 6:55AM
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 completed the sale of Plymouth Rock Energy (“Plymouth”)
to ENGIE Resources (“ENGIE”).
On October 29, 2018, ENGIE agreed to purchase
Plymouth, a leading retail energy provider of natural gas and
electricity. On December 19, 2018, the transaction closed. As
a result of the sale, MVC PE Fund received a gross return on its
equity investment of approximately 3.4X1, based on the equity
investments made since November 2011.2
Since inception of the MVC PE Fund, MVC Capital
invested a total of $14.6 million in the MVC PE Fund. The MVC PE
Fund has distributed 147% of the entire MVC PE Fund’s contributed
capital.3 There are three remaining investments in the MVC PE Fund,
all valued above cost, as of the most recent valuation
date.
“The completed sale of Plymouth reflects
continued progress of our stated strategy of monetizing our
remaining equity investments and redeploying proceeds into yielding
investments,” said Michael Tokarz, Chairman and Portfolio
Manager of MVC Capital.
“We thank the Plymouth team for their efforts to
grow the business into a leading energy marketer in the Northeast
and wish the ENGIE and Plymouth team continued success,” said,
Shivani Khurana, Managing Director of The Tokarz Group Advisers,
LLC, the Portfolio Manager to MVC PE Fund.
KeyBanc Capital Markets acted as the exclusive
financial advisor to Plymouth Rock Energy. Locke Lord acted as the
legal counsel for Plymouth.
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: receipt of the escrow
proceeds from the Plymouth transaction; the performance of MVC
Private Equity Fund and its portfolio companies; MVC Capital's
ability to execute its investment strategy, including redeploying
capital into yield-generating investments; 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 Capital
914-510-9400
ENGIE
Corporate CommunicationsJulie VitekENGIE North
America713-636-1962
1 The 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, receipt of potential tax refunds, and expenses to be
paid.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, when including all management fees, expenses and
carried interest is 136% of the contributed capital. Distributions
from the Plymouth sale are anticipated to be made on December 27,
2018. Additional payments from escrows and other sources,
including tax refunds may be received over time.
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