MCG Capital Corporation (Nasdaq: MCGC) (“MCG”) announced today that Avenue Broadband LLC (“Avenue”), a majority-owned, control investment of MCG, completed the sale of all outstanding shares of its capital stock in Avenue Broadband Holdings Inc. to Telecommunications Management, LLC, a wholly-owned subsidiary of NewWave Communications, LLC. In December 2007, MCG made its initial debt and equity investment in Avenue. After transaction expenses, MCG’s cash proceeds in connection with the exit of this investment are expected to be approximately $51.4 million. The total fair value of MCG's debt and equity investment in Avenue as of December 31, 2010 was $50.5 million. MCG announced the planned sale on February 16, 2011.
Avenue is a cable television, high speed internet, and digital telephone service provider serving systems in Indiana and Illinois.
NewWave Communications is a leading communications services company serving more than 117,000 customers and offers video, voice and high-speed data services within smaller to mid-sized communities in Missouri, Tennessee, Kentucky, Illinois, Indiana, and Arkansas. NewWave is headquartered in Sikeston, Missouri.
About MCG Capital CorporationMCG 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 those risks, uncertainties and factors referred to in MCG’s Annual Report on Form 10-K for the year ended December 31, 2010 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.