Commercial finance company MCG Capital Corporation has received full repayment of a $21.5 million second lien investment from Dayton Parts Holdings, LLC.

Dayton Parts is a non-affiliate investment in MCG Capital's investment portfolio. This second lien loan, which was a repayment at par and $0.9 million above its fair value at September 30, 2008, was scheduled to mature in June 2011. MCG Capital made the original investment in Dayton Parts in December 2005.
 
Steven Tunney, President and CEO of MCG Capital, said: "This $21.5 million repayment at par supports our strategic plan to preserve liquidity and deleverage our balance sheet. It is interesting to note that in both this pay-off and the previously announced Cherry Hill Holdings pay-off, our former borrowers were able to refinance their debt with a new lender at a lower interest rate than they were paying MCG. Since we began our deleveraging initiatives in July 2008, MCG Capital has announced a total of $113.6 million in investment monetizations at 98% of their previously reported fair value.”
 
Earlier on December 23, 2008, MCG Capital has received full repayment at par of $11.8 million in senior debt investments from Cherry Hill Holdings, Inc.
 
Cherry Hill is an affiliate investment in MCG Capital’s investment portfolio. The senior loans, which had a 10.1% weighted average coupon rate, were scheduled to mature in August 2011. MCG Capital made the original investment in Cherry Hill in August 2006.