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MCG Capital Announces Early Repayment of Series 2005-A Private Placement Debt

^{Published on 2011-03-29 13:15:37 - Market Wire}
 

ARLINGTON, Va.--([ BUSINESS WIRE ])--MCG Capital Corporation (Nasdaq: MCGC) (aMCGa) announced today that it had repaid in full the remaining $17.4 million of Series 2005-A unsecured notes (the aNotesa). The Notes carried an interest rate of 9.98% and had a maturity date of October 2011. MCG initially issued $50.0 million of the Notes in October 2005 and previously had repaid in the aggregate $32.6 million in principal.

"We have now retired our highest cost debt capital, and we continue to search for opportunities to strengthen the balance sheet."

aThis early repayment of the Notes improves our balance sheet flexibility, as we no longer have any scheduled debt due in 2011 and have only $8.7 million in scheduled debt maturities in 2012," said Steven F. Tunney, Sr, MCGa™s President and CEO. aWe have now retired our highest cost debt capital, and we continue to search for opportunities to strengthen the balance sheet.a

In addition to the $17.4 million repayment of principal, MCG paid $0.8 million in accrued interest and $0.9 million in prepayment fees, in accordance with the terms of the Notes. The Series 2007-A unsecured notes due October 2012 remain outstanding with a balance of $8.7 million.

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 plans to strengthen its balance sheet, 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.