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 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
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