Medley Capital Corporation (NYSE:MCC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
| Entry into a Material Definitive Agreement. |
Amendments to the Credit Facilities
On February 8, 2017, Medley Capital Corporation (the Company)
entered into Amendment No. 2 to its existing Amended and Restated
Senior Secured Revolving Credit Agreement (the Revolver
Amendment) and Amendment No. 2 to its existing Amended and
Restated Senior Secured Term Loan Credit Agreement (the Term Loan
Amendment and, together with the Revolver Amendment, the
Amendments), each with certain lenders party thereto, ING Capital
LLC, as administrative agent (the Administrative Agent), and,
solely with respect to Section 2.9 of each Amendment, MCC
Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC
Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere
LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment
Holdings AAR, LLC, as subsidiary guarantors. The Amendments amend
certain provisions of the Companys Amended and Restated Senior
Secured Revolving Credit Agreement (as amended by Amendment No.
1, the Revolving Credit Facility) and the Amended and Restated
Senior Secured Term Loan Credit Agreement (as amended by
Amendment No. 1, the Term Loan Facility and, together with the
Revolving Credit Facility, each as further amended, the
Facilities).
The Facilities were amended to permit the payment, prepayment or
redemption of principal and interest on the 2019 Notes (as
defined in the Facilities) in an aggregate amount not to exceed
$1,500,000 (which right is in addition to the ability to
refinance the 2019 Notes), and, in addition, the Revolving Credit
Facility was amended to permit the prepayment of the Companys
loans under the Term Loan Facility in an aggregate amount not to
exceed $74,000,000 prior to September 30, 2017.
Borrowings under the Facilities are subject to, among other
things, a minimum borrowing/collateral base and substantially all
of the Companys assets are pledged as collateral under the
Facilities. In addition, the Facilities require the Company to,
among other things (i)make representations and warranties
regarding the collateral as well the Companys business and
operations, (ii)agree to certain indemnification obligations and
(iii) agree to comply with various affirmative and negative
covenants. The documentation for each of the Facilities also
includes default provisions such as the failure to make timely
payments under the Facilities, the occurrence of a change in
control and the failure by the Company to materially perform
under the operative agreements governing the Facilities, which,
if not complied with, could accelerate repayment under the
Facilities, thereby materially and adversely affecting the
Companys liquidity, financial condition and results of
operations.
The foregoing description of the Revolver Amendment does not
purport to be complete and is qualified in its entirety by
reference to the full text of the Revolver Amendment attached
hereto as Exhibit 10.1.
The foregoing description of the Term LoanAmendment does not
purport to be complete and is qualified in its entirety by
reference to the full text of the Term Loan Amendment attached
hereto as Exhibit 10.2.
Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The information set forth under Item 1.01 of this current report
on Form 8-K is hereby incorporated in this Item 2.03 by
reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description | |
| 10.1 |
Amendment No. 2 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 8, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent. |
|
| 10.2 |
Amendment No. 2 to Amended and Restated Senior Secured Term Loan Credit Agreement dated as of February 8, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent. |
About Medley Capital Corporation (NYSE:MCC)
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor. Medley Capital Corporation (NYSE:MCC) Recent Trading Information
Medley Capital Corporation (NYSE:MCC) closed its last trading session up +0.18 at 8.00 with 652,527 shares trading hands.
