Medley Capital to invest in middle-market private firms via stock sale

By Toni Weeks

San Luis Obispo, Calif., Aug. 22 – Medley Capital Corp. said in a 497 filing with the Securities and Exchange Commission that it plans to sell shares of its common stock.

The non-diversified, closed-end management investment company seeks to generate current income and capital appreciation by lending directly to privately held middle-market companies for acquisitions, growth or refinancing. The portfolio generally consists of senior secured first-lien loans and senior secured second-lien loans.

Goldman Sachs & Co., Barclays, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the joint bookrunning managers. Keefe, Bruyette & Woods, Inc. is the lead manager. BB&T Capital Markets, Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., MLV & Co. LLC, National Securities Corp. and Gilford Securities Inc. are the co-managers.

Brook Taube, Seth Taube and Andrew Fentress comprise the company’s portfolio management team.

Proceeds will be used to fund new investment opportunities, to repay outstanding debt under the company’s revolving facility and for general corporate purposes. Medley plans to reborrow under its revolver to make investments in portfolio companies in accordance with its investment objective, the filing noted.

The company plans to sell 5 million shares at $13.02 apiece. There is an over-allotment option of an additional 750,000 shares.

The last reported sale price of common shares on Aug. 20 was $13.29 (NYSE: MCC).

Settlement is expected Aug. 26.

There is a 2.8% sales load. Including a base management fee of 2.95%, total annual expenses are expected to be 11.17%.

The company also announced in the filing that it sold 671,278 shares for proceeds of $8.8 million between Aug. 5 and Aug. 18 in an at-the-market stock offering announced early this month. The sales agreement for that offering allows the company to sell up to $100 million of its shares from time to time with a sales load of 2%.

MCC Advisors LLC is the investment manager and has its corporate offices in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.