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    Medley Capital Corporation [MCC] Could Test $25 After Deal with Golub Capital LLC

    By Nicholas K

    Oct 13,2020

    7:34 AM UTC

    Medley Capital Corporation [NYSE: MCC] has sustained gains since last week.  This follows last week’s announcement that it has entered into a Membership Interest Purchase Agreement together with MCC Senior Loan Strategy JV LLC, the other partner with interests in MCC JV and a member of Golub Capital LLC with Golub LLC, in which Golub LLC purchased both MCC and MCC JV Interests for a total of $156.4 million. The purchase is subject to various adjustments, following the terms and conditions set in the purchase agreement.

    Following this transaction, MCC JV has managed to pay in full all of its outstanding borrowings and ended its senior secured revolving credit facility. This facility was dated August 4, 2015, after Deutsche Bank AG, the New York Branch amended it. These repayments and adjustments have had a significant positive impact on the two establishments. In addition to debt repayment, the two establishments, MCC and MCC JV received some proceeds. They received $41.0 million and $6.6 million.

    The Chair of the MCC special Committee, David Lorber said that they believe that the transaction is significant for MCC, as it is set to improve the firm’s liquidity and strengthen its balance sheet giving it a positive edge. Both companies are now out of debt and on their way to making massive profits. The special committee that saw the success of this transaction received advice from Houlihan Lokey.

    About Medley Capital Corporation

    A closed-end business establishment Medley Capital Corporation is externally managed and has common stocks and outstanding bonds both of which are traded on the New York Stock Exchange. The stock trades under the symbol (NYSE: MCV), and the bonds under the symbol (NYSE: MCX). The company aims to generate current income and capital appreciation. The company lends to private firms in the middle market through direct originated agreements, to help the firms grow their business and acquire new assets. MCC is externally advised and is registered under the Investment Advisers Act of 1940.

    About MCC Advisors LLC

    Medley Advisors LLC are the primary advisors of Medley Capital Corporation. The advisors are under Medley Management, an asset management company that controls about $3.6 billion worth of assets. It manages these assets under two companies, Sierra Income Corporation and Medley Capital Corporation. The firm has financed over 400 companies across 35 industries in the United States and North America for over 18 years. Medley LLC has bonds trading in the New York Stock Exchange (NYSE: MDLX) and (NYSE: MDLQ).

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