MVC Capital Completes Sale of Centile Holdings B.V. to VOIP Holdings GmbH
PURCHASE, N.Y., Aug. 02, 2018 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (“MVC” or the “Fund”) announced today the completed sale of Centile Holdings B.V. (“Centile”), a leading European developer of unified communications and fixed-mobile convergence platforms for operators and integrators, to VOIP Holdings GmbH.
As a result of the sale, MVC received cash proceeds of approximately $5.8 million at closing. An additional $1.2 million of proceeds are to be held in escrow for 15 months from the closing. Assuming the full receipt of all escrow proceeds, the monetization of Centile results in a realized gain of $3.5 million, or an approximate 2X return on its initial investment.1
“The completed sale of Centile reflects continued progress in executing against the Fund’s strategy to monetize its remaining equity investments and redeploy proceeds into yielding investments,” said Michael Tokarz, Chairman and Portfolio Manager of MVC Capital, Inc. “We are actively reviewing our portfolio for additional equity monetizations to further supplement the growth of our yielding investments and distributions to our shareholders.”
Q Advisors, a global TMT investment banking boutique, acted as the exclusive financial advisor to Centile in connection with the transaction.
About MVC Capital, Inc.
MVC Capital (MVC) 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. For additional information about MVC, please visit MVC’s website at www.mvccapital.com.
Safe Harbor Statement and Other Disclosures
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
The information contained in this press release contains forward-looking statements. These forward- looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: MVC Capital’s ability to deliver value to all shareholders and execute its yield investment strategy, including enhancing its yield; the ability to redeploy capital into yield investments; the ability to monetize equity investments; the ability to pay and grow MVC distributions and changes in economic or financial market conditions and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. All investments are speculative, involve significant risk and are subject to a loss of principal and/or interest. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.
This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of MVC’s common stock.
Investor Relations Contacts
Jackie Rothchild MVC Capital 914.510.9400
Jeffrey Goldberger / Allison Soss KCSA Strategic Communications 212.896.1249 / 212.896.1267
1 The amounts shown above at closing and after the escrow period are net of transaction fees and expenses and based on the exchange rate on July 31, 2018. The escrow proceeds remain subject to currency fluctuations.