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MCG Capital Announces New Three-Year Maturity for $150 Million Warehouse Credit Facility

^{Published on 2011-01-25 13:05:48 - Market Wire}
 

ARLINGTON, Va.--([ BUSINESS WIRE ])--MCG Capital Corporation (Nasdaq: MCGC) (aMCGa) announced today that SunTrust Robinson Humphrey, Inc. has agreed to renew MCGa™s committed secured warehouse credit facility (the "Three Pillars Warehouse"). This $150 million warehouse financing facility is funded through Three Pillars Funding LLC, an asset-backed commercial paper conduit administered by SunTrust Robinson Humphrey, Inc., and is secured by the assets of MCG Commercial Loan Funding Trust.

"We enjoy a strong relationship with SunTrust and appreciate their continued support as we continue to focus our efforts on loan originations, increasing our operating income and the future growth of distributions to our stockholders."

aWe are pleased to announce the new three-year maturity of this important facility for MCG,a said StevenF. Tunney, CEO and President. aWe enjoy a strong relationship with SunTrust and appreciate their continued support as we continue to focus our efforts on loan originations, increasing our operating income and the future growth of distributions to our stockholders.a

MCG also announced that SunTrust Bank has provided the renewal of its liquidity facility that supports the Three Pillars Warehouse. In addition, MCG and SunTrust Robinson Humphrey, Inc. agreed to a number of modifications to the Three Pillars Warehouse terms, including an extension of the legal final maturity date of this facility to January 2014, subject to contractual terms and conditions. If a new agreement or extension is not executed by January 2013, the Three Pillars Warehouse enters a 12-month amortization period during which principal under the facility is paid down through orderly monetizations of portfolio company assets that are financed in the facility.

The new interest rate on the Three Pillars Warehouse equals the commercial paper rate plus 3.25%. Outstanding borrowings on the Three Pillars Warehouse were approximately $98.8 million as of January 24, 2011. MCG paid to SunTrust Robinson Humphrey, Inc. a facility renewal fee of $1.5 million, or 1.00%.

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. MCGa™s investment objective is to achieve current income and capital gains. Portfolio companies generally use capital provided by MCG to finance acquisitions, recapitalizations, buyouts, organic growth and working capital.

Forward-looking Statements:

Statements in this press release regarding managementa™s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements regarding the Companya™s strategic focus on loan originations, increasing operating income and the growth of stockholder distributions 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 September 30, 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.