This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MVC Capital Receives $66 Million In Gross Proceeds From Sale Of Summit Research Labs

Stocks in this article: MVC

PURCHASE, N.Y., April 2, 2013 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (the "Company"), a publicly traded business development company that makes private debt and equity investments, announced today the completed sale of a portfolio company, Summit Research Labs ("Summit"), a specialty chemical company that manufactures and markets antiperspirant actives globally, to an affiliate of One Rock Capital Partners, LLC.

MVC received gross equity proceeds of $66 million, realizing a gain of $50 million from the transaction, a $3.5 million premium to the last reported fair market value placed on Summit by the Company's Valuation Committee as of January 31, 2013. This transaction reflects a 31% gross IRR 1 for MVC since the time of its original investment in Summit in August 2006. The gross IRR includes all fees and distributions received from its equity position in Summit over the life of the investment. MVC also received $16.5 million in gross debt proceeds from its original $8.0 million second lien loan provided to Summit. 

As part of the agreement, MVC provided Summit with a new, $22 million second lien loan, which matures in five and a half years. 

"We are pleased to have finalized the sale of Summit and are proud to have helped the company become a leading global manufacturer of antiperspirant actives," said Michael Tokarz, Chairman and Portfolio Manager of MVC. "Our team looks forward to redeploying these proceeds into new yielding investments, which we believe will build additional value for our shareholders." 

"MVC will continue to maintain an active working relationship with Summit by providing a $22 million loan to support its growth objectives. We believe that Summit can continue to provide an excellent return for our shareholders," said Shivani Khurana, Director of Summit and Managing Director of TTGA, investment adviser to MVC Capital, Inc.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs