MCG Capital Corporation (Nasdaq: MCGC) (“MCG” or the “Company”) today
announced the receipt of a green light letter from the U.S. Small
Business Administration (“SBA”) inviting MCG to continue its application
process to obtain a license to form and operate a second Small Business
Investment Company (“SBIC”).
MCG began the application process during 2012 and recently met with the
investment committee of the Investment Division of the SBA, which voted
to permit MCG to advance to the second part of the process. The receipt
of the SBIC application is subject to the approval of the SBA.
If approved, the additional license would provide MCG with an
incremental source of attractive long-term capital. However, receipt of
a green light letter from the SBA does not assure an applicant that the
SBA will ultimately issue an SBIC license and the Company has received
no assurance or indication from the SBA that it will receive a second
SBIC license, or of the timeframe in which it would receive a second
license, should one ultimately be granted.
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 management’s future
expectations, beliefs, intentions, goals, strategies, plans or prospects
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 “anticipate,”
“believe,” “could,” “could increase the likelihood,” “estimate,”
“expect,” “intend,” “is planned,” “may,” “should,” “will,” “will
enable,” “would be expected,” “look forward,” “may provide,” “would” 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 the timing or receipt of a
second SBIC license and the impact that an additional license would have
on MCG’s prospects or sources of attractive long-term capital, as well
as those risks, uncertainties and factors referred to in MCG’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2012 filed with
the Securities and Exchange Commission under the section “Risk Factors,”
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.
