Houlihan Lokey Advises Medley Capital Corporation

Houlihan Lokey is pleased to announce that Medley Capital Corporation (MCC) has sold the MCC Senior Loan Strategy JV LLC (MCC JV) to a private fund managed by Golub Capital LLC (Golub) for $156.4 million. The transaction signed and closed on October 8, 2020.

MCC, the MCC JV, the other holder of membership interests in the MCC JV (Other MCC JV Member), and an affiliate of Golub entered into a purchase agreement pursuant to which a private fund affiliated with and managed by Golub concurrently purchased all of MCC’s interest in the MCC JV and all of the Other MCC JV Member’s interest in the MCC JV for a total purchase price of $156.4 million (subject to various adjustments). In connection with the closing of the transaction, MCC JV repaid (in full) all outstanding borrowings under, and terminated, its senior-secured revolving credit facility. Considering the debt repayment and adjustments, MCC and the Other MCC JV Member received net proceeds (before transaction expenses) of $41.0 million and $6.6 million, respectively.

MCC is a closed-end, externally managed business development company. Its investment objective is to generate current income and capital appreciation by lending to privately held middle-market companies—primarily through directly originated transactions—to help them expand their businesses, refinance, and make acquisitions. MCC’s investment portfolio generally consists of senior-secured first and second lien loans. The company is externally managed by MCC Advisors LLC.

Golub is a market-leading, award-winning direct lender and credit asset manager, with more than $30 billion of capital under management. The company specializes in delivering reliable, creative, and compelling financing solutions to middle-market companies backed by private equity sponsors. Golub’s credit expertise also forms the foundation of its Late Stage Lending business and its Broadly Syndicated Loan investment program. Across its activities, the firm nurtures long-term, win-win partnerships that inspire repeat business from its private equity sponsor clients and investors. Founded over 25 years ago, Golub has more than 500 employees and lending offices in Chicago, New York, and San Francisco today.

Houlihan Lokey advised the special committee of MCC for this transaction.