PURCHASE, N.Y., Oct. 15, 2012 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (the "Fund"), a publicly traded business development company that makes private debt and equity investments, announced today that its board of directors has declared a dividend of 13.5 cents per share, or a total of approximately $3.2 million to be distributed to shareholders for the fourth quarter of fiscal 2012. The dividend is payable on October 31, 2012 to shareholders of record on October 25, 2012 and represents a 12.5% increase over the prior dividend.
The increase in the quarterly dividend is attributable to the receipt of an approximate $2.4 million dividend from U.S. Gas & Electric (USG&E). On September 24, 2012, USG&E's board approved an initial dividend to its shareholders, with future distributions projected to be paid quarterly. MVC Capital anticipates receiving dividends from USG&E for as long as it maintains its equity investment in USG&E, and its cash flows can support the dividend. Each quarterly dividend must be approved by USG&E's board of directors and be permissible under its gas and electric supply credit documentation.
"We are pleased to have an opportunity to increase our quarterly dividend for our shareholders," stated Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc. "The dividend we started receiving from USG&E this quarter will allow our shareholders to directly benefit from the strong cash flows of this portfolio investment."This distribution represents the 30 th consecutive quarterly dividend paid by the Fund since implementing a dividend policy in July of 2005. The dividends issued under current management have resulted in approximately $85.6 million in distributions to the Fund's shareholders. The amount and specific timing of any future dividends paid pursuant to the Fund's quarterly dividend policy will be determined by the board of directors. There can be no assurance that future dividend payments will match or exceed those set out in this news release, or that they will be made at all.
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