MVC Completion of Sale of U.S. Gas & Electric:
Formerly reported on MVC Capital’s June 1st, 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 30th, 2017 as of July 5th, 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 5th, 2017 closing price for Crius trust unites).