MCG CAPITAL SHAREHOLDER ALERT – National Securities Law Firm Seeks Higher Price for MCG Capital Shareholders in Connection with its Acquisition, and Encourages Shareholders to Contact Law Firm for More Information

April 29, 2015
New York, New York

Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it is investigating the acquisition of MCG Capital Corporation (NASDAQ: MCGC) (“MCG” or the “Company”) on behalf of its shareholders. PennantPark Floating Rate Capital Ltd. (“PFLT”) and MCG announced that they have entered into a definitive agreement under which PFLT will acquire MCG in a stock and cash transaction currently valued at approximately $175 million, or approximately $4.75 per MCG share. Under the terms of the transaction, MCG stockholders will receive $4.521 in PFLT shares for each MCGC share. Additionally, each MCG shareholder will receive $0.226 per share in cash. Following the transaction, PFLT stockholders are expected to own approximately 56% of the combined company and MCG stockholders will own approximately 44%.

Our investigation has determined that the offer price of only $4.75 per share unfairly under-values the true going forward inherent value of MCG and that shareholders are not receiving the maximum value for their shares. Indeed, among other things, the Company has over $105 million of cash on its balance sheet or $2.85 per share in cash, and no long-term debt. Further, the book value per share of the Company is $4.69 per share. The investigation further seeks to determine whether the senior management of MCG are entering into this deal for their own self-interests to the detriment of the Company’s shareholders.

If you are a shareholder of MCG and would like additional information as to how the acquisition may affect your rights as a shareholder, and how you may be eligible to obtain a higher price for your shares, please contact us toll free at 1-800-906-6432 or contact us via our website.

Tripp Levy PLLC represents individual and institutional shareholders in mergers and acquisitions transactions and, along with its affiliate, has recovered billions of dollars for shareholders in securities actions around the globe. Tripp Levy PLLC is affiliated with the law firm Milberg LLP. The National Law Journal has named Milberg one of the “50 Elite Trial Lawyer Firms” and one of the “50 Leading Plaintiff Firms in America.” Attorney advertising. Prior results do not indicate a similar outcome.