MVC Capital Announces Pursuit of Strategic Options for U.S. Gas & Electric, Inc.
PURCHASE, N.Y.--(BUSINESS WIRE)--
MVC Capital, Inc. (NYSE: MVC) (the "Fund"), a publicly traded business
development company that makes private debt and equity investments,
today announced that U.S. Gas & Electric, Inc. ("USG&E"), an MVC
portfolio company, has engaged a Tier I investment bank to lead the
pursuit of strategic alternatives for USG&E to maximize shareholder
value, including a public equity offering (potentially in Canada) or a
sale, which could monetize all or a portion of the Fund's investment.
USG&E, headquartered in North Miami Beach, Florida, is a retail energy
marketer that sells natural gas and electricity to residential and small
commercial customers. Due to organic growth in the Company and through
strategic acquisitions which the Fund arranged, MVC's positions in USG&E
have grown to be approximately 20% of the Fund's portfolio as of January
31, 2012. A monetization event is being sought for fiscal 2012.
"We are hopeful that we can foster a key liquidity event for the Fund's
shareholders," said Michael Tokarz, Chairman and Portfolio Manager of
MVC. "We have spent a significant amount of time with USG&E over the
last four plus years and take pride in working with this management
team. We are pleased with the prospect of the strategic opportunities
being pursued," said Puneet Sanan, Chairman of USG&E and Managing
Director of The Tokarz Group Advisers, LLC.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of any shares
referred to herein (including in MVC Capital, Inc. or U.S. Gas &
Electric, Inc.) in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or jurisdiction.
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.
For MVC's investor relations, please call 914-510-9400. All media
inquiries should be directed to Nathaniel Garnick at 212-687-8080.
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.
MVC Capital, Inc.
Investor Relations, 914-510-9400
Inquiries: Nathaniel Garnick, 212-687-8080
Source: MVC Capital, Inc.
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