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PURCHASE, N.Y., Aug. 1, 2013 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, announced today the completion of a second lien term loan of $10.0 million to Pre-Paid Legal Services, Inc. d/b/a LegalShield. LegalShield is a leading marketer of legal counsel and identity theft solutions to families and small businesses in the U.S. and Canada.
This loan was entered into as part of a syndicate for a $175 million second lien term loan, whereby Morgan Stanley Senior Funding, Inc. and RBC Capital Markets served as Joint Lead Arrangers and Joint Bookrunners. The second lien term loan matures on July 1, 2020. The second lien term loan is part of a $515.0 million senior secured credit facility that also includes a $310 million senior secured first lien term loan and a $30 million revolving credit facility. LegalShield raised the new credit facility to refinance existing indebtedness of $395.0 million, which included an original $8.0 million investment made by MVC Capital on July 14, 2011, which earned an approximate 11.6% IRR
1 over the near two-year holding period.
"Based on our familiarity with LegalShield and the positive results of our previous investment, we have continued confidence in maintaining this relationship," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc.
Puneet Sanan, Managing Director of The Tokarz Group Advisers commented, "Not only is LegalShield a leader in its industry, their management has developed a solid business model grounded in predictable recurring revenue and strong, consistent cash flows."
LegalShield is one of the nation's leading providers of legal safeguards for individuals, families and small businesses. LegalShield also offers one of the industry's most affordable identity theft plans. Members receive identity theft protection for the entire family for the cost most competitors charge to cover a single individual. LegalShield legal plans cover more than 1.4 million families and 3.5 million lives across North America. More than 34,000 companies offer the LegalShield plan to their employees as a voluntary benefit. For as little as $17 per month, LegalShield members get access to specialized attorneys who are experts in the areas of law that most impact families and small businesses. LegalShield has dedicated law firms in 49 states and four provinces in Canada. In 2012 alone, LegalShield firms received more than 2.1 million calls from members. For more information, visit
www.legalshield.com or call 800-654-7757.
1Gross IRR is calculated before giving effect to any taxes, management fees, incentive compensation, transaction expenses and other expenses, which may be substantial. Gross IRR may include interest income, management fees, dividends and any other cash flows received with respect to this investment.
About MVC Capital, Inc.
MVC Capital, Inc. is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries.