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PURCHASE, N.Y., Nov 02, 2009 (BUSINESS WIRE) -- MVC Capital, Inc. (NYSE: MVC) (the "Fund"), a publicly traded business development company that makes private debt and equity investments, today filed an 8-K and issued its unaudited net asset value for the year ended October 31, 2009.
As part of its regular quarter-end review, the Fund's Valuation Committee made determinations, consistent with the Fund's valuation procedures and FAS 157, regarding the fair values of the Fund's investments, resulting in an aggregate net increase of approximately $32.3 million or $1.33 per share, effective October 31, 2009. The fair values of the following portfolio companies were adjusted: Amersham Corporation, Custom Alloy Corporation, MVC Automotive Group B.V., MVC Partners, LLC, Ohio Medical Corporation, Security Holdings, B.V., SGDA Sanierungsgesellschaft für Deponien und Altlasten GmbH, Summit Research Labs, Inc., U.S. Gas & Electric, Inc., Vendio Services, Inc., and Vitality Foodservice, Inc.
The foregoing increase takes into account a substantial upward adjustment to the fair valuation of the Fund's investment in U.S. Gas & Electric, Inc. ("USG&E"), one of the Fund's portfolio companies. This adjustment was based upon, among other things: (i) USG&E's materially improved financing options, (ii) cost savings and other tangible operational improvements resulting from the integration of its recent purchase of Energy Service Providers, Inc. ("ESPI"), (iii) USG&E's continued strong income growth, as well as a rapidly expanding customer base, and (iv) increased market multiples for comparable companies.
Robert Knapp, Chairman of the Valuation Committee of the Board of Directors of MVC Capital, said, "USG&E, through the acquisition of ESPI and a successful integration to date, has seen significant growth given its access to new energy markets, a 20% increase in its customer base within a three-month period, and the expected securing of a long-term flexible credit facility necessary for a company with its growth profile. As a result, the valuation of these combined businesses resulted in the Fund's accrual of a substantial unrealized capital gain for this investment during the fourth quarter of 2009."
The Fund's net asset value as of October 31, 2009 is approximately $17.47 per share.
MVC-G
About MVC Capital, Inc.
MVC 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 the MVC's website at www.mvccapital.com. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
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, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.
SOURCE: MVC Capital, Inc.
MVC Capital, Inc.
Nathaniel Garnick, 212-687-8080
Copyright Business Wire 2009