MCG Capital Corporation (Nasdaq: MCGC) (“MCG” or the “Company”) today announced that its Board of Directors had authorized a stock repurchase program of up to $35.0 million.
Under the program, MCG management is authorized to repurchase shares in open market transactions, including through block purchases, depending on prevailing market conditions and other factors. MCG intends to fund the repurchases through its available liquidity.
In announcing the stock repurchase program, Richard W. Neu, CEO of MCG, commented, “the MCG Board of Directors believes that adoption of a stock repurchase program provides us with an extremely effective tool to manage our unencumbered cash and overall capital position in our efforts to enhance stockholder value. As communicated after our third quarter earnings call, we look forward to providing further updates on our future business strategy, including management of our capital position, no later than our next earnings conference call which is anticipated to be on or around March 1.”
MCG will soon mail to all stockholders the notice required by Section 23(c) of the Investment Company Act of 1940, as amended, regarding the possibility of share repurchases over the following six months. The repurchase program may be extended, modified or discontinued at any time for any reason. The program does not obligate MCG to acquire any specific number of shares, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases.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 management’s belief that adoption of a stock repurchase program provides MCG with an extremely effective tool to manage the Company’s unencumbered cash and overall capital position in its efforts to enhance stockholder value and those risks, uncertainties and factors referred to in MCG’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 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.