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MCG Capital Announces Sale of Superior Industries Investors, LLC

^{Published on 2011-03-07 16:45:28 - Market Wire}
 

ARLINGTON, Va.--([ BUSINESS WIRE ])--MCG Capital Corporation (Nasdaq:MCGC) (aMCGa) announced today that Superior Industries Investors, LLC (aSuperiora), a majority-owned, control investment of MCG, sold all outstanding shares of its capital stock of Superior International Industries Holdings, Inc. to a newly formed acquisition entity owned by Pfingsten Partners LLC and management. After transaction expenses, MCGa™s cash proceeds in connection with the exit of this investment are expected to be approximately $42.3 million. In September 2006, MCG made its initial debt and equity investment in Superior.

"This sale, and the combination of the equity realization and repayment of our subordinated debt investment, is another step forward in our strategic plan to monetize equity investments to support the redeployment of capital into current yield-oriented investments to grow operating income and stockholder distributions"

aThis sale, and the combination of the equity realization and repayment of our subordinated debt investment, is another step forward in our strategic plan to monetize equity investments to support the redeployment of capital into current yield-oriented investments to grow operating income and stockholder distributions," said Steven F. Tunney, Sr, MCGa™s President and CEO.

Superior is a leading manufacturer of recreational products, site solutions and shade products. Products are sold under numerous brand names including aPlaylanda, aGrounds For Playa and aWOWa play equipment; aChild Worksa playground components; aLitchfielda shelters; aWebcoata site furniture; aSuperior Shadea and aSkyspana shade products; and aGround Pluga anchoring products.

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, including statements regarding MCGa™s strategic plan to monetize junior capital to support the redeployment of capital into yield-oriented investments to grow operating income and 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 Annual Report on Form 10-K for the year ended December 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.