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.