MCG Capital Announces New Three-Year Maturity For $150 Million Warehouse Credit Facility
MCG Capital Corporation (Nasdaq: MCGC) (“MCG”) announced today that SunTrust Robinson Humphrey, Inc. has agreed to renew MCG’s committed secured warehouse credit facility (the "Three Pillars Warehouse"). This $150 million warehouse financing facility is funded through Three Pillars Funding LLC, an asset-backed commercial paper conduit administered by SunTrust Robinson Humphrey, Inc., and is secured by the assets of MCG Commercial Loan Funding Trust.
“We are pleased to announce the new three-year maturity of this important facility for MCG,” said Steven F. Tunney, CEO and President. “We enjoy a strong relationship with SunTrust and appreciate their continued support as we continue to focus our efforts on loan originations, increasing our operating income and the future growth of distributions to our stockholders.”
MCG also announced that SunTrust Bank has provided the renewal of its liquidity facility that supports the Three Pillars Warehouse. In addition, MCG and SunTrust Robinson Humphrey, Inc. agreed to a number of modifications to the Three Pillars Warehouse terms, including an extension of the legal final maturity date of this facility to January 2014, subject to contractual terms and conditions. If a new agreement or extension is not executed by January 2013, the Three Pillars Warehouse enters a 12-month amortization period during which principal under the facility is paid down through orderly monetizations of portfolio company assets that are financed in the facility.
The new interest rate on the Three Pillars Warehouse equals the commercial paper rate plus 3.25%. Outstanding borrowings on the Three Pillars Warehouse were approximately $98.8 million as of January 24, 2011. MCG paid to SunTrust Robinson Humphrey, Inc. a facility renewal fee of $1.5 million, or 1.00%.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. MCG’s investment objective is to achieve current income and capital gains. Portfolio companies generally use capital provided by MCG to finance acquisitions, recapitalizations, buyouts, organic growth and working capital.
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