MCGC Says Its Board Will Review Terms Of Revised Proposal Submitted By HC2

(RTTNews) - MCG Capital Corporation (MCGC) acknowledged receipt of an unsolicited letter dated June 15, 2015, from HC2 Holdings, Inc. (HCHC), further revising the terms of a proposed transaction originally submitted to the board of MCGC on May 4, 2015 and revised on May 19, 2015, June 2, 2015 and June 3, 2015. MCGC's Board of Directors will review the terms of the revised proposal submitted by HC2 Holdings.

On April 28, 2015, MCGC executed a merger agreement with PennantPark Floating Rate Capital Ltd. (PFLT) which provides for the acquisition of MCGC by PFLT in a stock and cash transaction currently valued at approximately $175.0 million, or approximately $4.75 per MCGC common share at closing, representing a 15.8% premium to MCGC's closing stock price on April 28, 2015.

MCGC said its board has not changed its recommendation in support of the merger with PFLT. MCGC will have no further comment on HC2 Holdings' revised proposal until the Board has completed its review.