MCG Capital closes sale of equity interest in Pharmalogic

Abstract

According to a Form 8-K filed April 1, as of Dec. 31, 2014, MCG Capital valued its equity investment in RadioPharmacy at $12.0 million.

MCG Capital Corp. and RadioPharmacy Investors LLC on March 31 completed the sale through a merger of 100% of MCG Capital's equity interest in RadioPharmacy's subsidiary, Pharmalogic Holdings Corp., to an entity owned by Webster Capital III LP.

According to a Form 8-K filed April 1, as of Dec. 31, 2014, MCG Capital valued its equity investment in RadioPharmacy at $12.0 million. For the quarter ended March 31, MCG Capital expects the deal to contribute approximately $600,000 to its net asset value. The final impact on net asset value will be determined at the time the MCG Capital financial statements for the quarter ended March 31 are finalized after the fair value process by its board.

At March 31, MCG Capital had 37,074,117 shares outstanding.

In connection with the deal, MCG Capital amended and restated its existing senior secured credit facility with Pharmalogic and provided first-lien financing consisting of a $17.5 million term loan and a $1.0 million revolver at 8.5% to support the sale. The credit facility matures Dec. 31, 2017.