ARLINGTON, Va., June 2 /PRNewswire-FirstCall/ -- MCG Capital Corporation(Nasdaq: MCGC) (the 'Company') announced today that it entered into anagreement effective May 30, 2008 for a one-year unsecured revolving line ofcredit facility (the 'Facility') with a committed amount of $70 million. TheFacility may be expanded through new or additional commitments up to $150million during the Facility's term. The Facility generally bears interest ata rate equal to LIBOR plus 2.75% and has a commitment fee of 25 basis pointsper annum on undrawn amounts.
The Company will use the Facility for origination of loans to andinvestments in primarily middle market companies, repayment of indebtedness,working capital, and other general corporate purposes. On May 30, 2008, therewas $8 million outstanding under the Facility. In conjunction with theclosing of the Facility, the Company paid off and terminated its unsecuredrevolving credit facility with Bayerische Hypo-Und Vereinsbank, AG, New YorkBranch.
SunTrust Robinson Humphrey, Inc. acted as Arranger for the Facility. Thelending institutions that committed to the Facility are SunTrust Bank, ChevyChase Bank, F.S.B., Sovereign Bank, and BMO Capital Markets Inc.
In addition, the Company announced today that it reduced the outstandingbalance under the MCG Commercial Loan Trust 2006-2 warehouse credit facilitywith Merrill Lynch Capital Corp. from $61 million as of May 7, 2008 to $23million as of May 30, 2008. The remaining outstanding balance is due August31, 2008.
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance companyproviding capital and advisory services to middle market companies throughoutthe United States. Our investment objective is to achieve current income andcapital gains. Our capital generally is used by our portfolio companies tofinance acquisitions, recapitalizations, buyouts, organic growth and workingcapital.
Forward-looking Statements:
This press release contains forward-looking statements (i.e., statementsthat are not historical fact) describing the Company's future plans andobjectives. These forward-looking statements are not guarantees of futureperformance and are subject to risks, uncertainties, and other factors, someof which are beyond our control and difficult to predict and could causeactual results to differ materially from those expressed or forecasted in theforward-looking statements including, without limitation, the risks,uncertainties and other factors we identify from time to time in our filingswith the Securities and Exchange Commission, including our Form 10-Ks, Form10-Qs and Form 8-Ks. Although we believe that the assumptions on which theseforward-looking statements are based are reasonable, any of those assumptionscould prove to be inaccurate and, as a result, the forward-looking statementsbased on those assumptions also could be incorrect. In light of these andother uncertainties, the inclusion of a projection or forward-lookingstatement in this press release should not be regarded as a representation byus that our plans and objectives will be achieved. You should not place unduereliance on these forward-looking statements, which apply only as of the dateof this press release. We undertake no obligation to update such statements toreflect subsequent events.
SOURCE MCG Capital Corporation
