ARLINGTON, Va.--()--MCG Capital Corporation (Nasdaq: MCGC) (“MCG” or the “Company”) today announced the receipt of a green light letter from the U.S. Small Business Administration (“SBA”) inviting MCG to continue its application process to obtain a license to form and operate a second Small Business Investment Company (“SBIC”).
MCG began the application process during 2012 and recently met with the investment committee of the Investment Division of the SBA, which voted to permit MCG to advance to the second part of the process. The receipt of the SBIC application is subject to the approval of the SBA.
If approved, the additional license would provide MCG with an incremental source of attractive long-term capital. However, receipt of a green light letter from the SBA does not assure an applicant that the SBA will ultimately issue an SBIC license and the Company has received no assurance or indication from the SBA that it will receive a second SBIC license, or of the timeframe in which it would receive a second license, should one ultimately be granted.
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including the timing or receipt of a second SBIC license and the impact that an additional license would have on MCG’s prospects or sources of attractive long-term capital, as well as those risks, uncertainties and factors referred to in MCG’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.