MVC Completion of Sale of U.S. Gas & Electric:

Formerly reported on MVC Capital’s June 1^st, 2017 8-K filed with the SEC, U.S. Gas & Electric (“USG&E”) MVC, and James B. Wiser have merged with Crius Energy Trust, Mace Merger Sub., Inc, Verengo, and Crius Solar Fulfillment LLC on May 30^th, 2017 as of July 5^th, 2017. 

MVC received $128.1 million for their investment in USG&E as a result of the transaction.  This amount compensates MVC for two outstanding loans to USG&E with an $11 million payment.  The payment for MVC’s equity investment in USG&E has been given a fair value of approximately $116.4 million (it should be noted that this does not include distributions and other fees made after their 2007 investment) which is substantially larger than the $89.4 million fair value reported as of April 30^, 2017.  Combined, MVC expects to see a profit of $115.9 million.  The $116.4 million is made up of $50 million in cash, 9.5% second-lien callable notes maturing July 2025 with a face amount of $40.5 million, and 3,484,982 Crius trust units, yielding 7.5%, valued at $25.9 million (based on the July 5^th, 2017 closing price for Crius trust unites).