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MCG Capital Announces Completion of Sale of Jet Broadband Holdings, LLC

^{Published on 2010-08-02 06:30:24 - Market Wire}
 

ARLINGTON, Va.--([ BUSINESS WIRE ])--MCG Capital Corporation (Nasdaq:MCGC) (aMCGa) announced today that on July 30, 2010 Jet Broadband Holdings, LLC, a majority-owned, control investment of MCG, completed the sale of substantially all of its assets to Shentel Cable Company, a wholly-owned subsidiary of Shenandoah Telecommunications Company. In December 2005, MCG made its initial debt and equity investment in Jet Broadband. The total fair value of MCGa™s debt and equity investments in Jet Broadband Holdings, LLC as of March 31, 2010 was $49.5 million. After transaction expenses, MCGa™s expected cash proceeds in connection with the exit of this investment are approximately $50 million. MCG announced the planned sale on April 19, 2010.

Jet Broadband is a broadband communications company focused on serving medium-sized communities in Virginia and West Virginia.

About MCG Capital Corporation

MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit [ www.mcgcapital.com ].

Forward-looking Statements:

Statements in this press release regarding managementa™s future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws.Forward-looking statements can be identified by terminology such as aanticipate,a abelieve,a acould,a acould increase the likelihood,a aestimate,a aexpect,a aintend,a ais planned,a amay,a ashould,a awill,a awill enable,a awould be expected,a alook forward,a amay provide,a awoulda or similar terms, variations of such terms or the negative of those terms.Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in MCGa™s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 filed with the Securities and Exchange Commission under the section aRisk Factors,a as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission.As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein.MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.