0001140361-20-006758.txt : 20200325 0001140361-20-006758.hdr.sgml : 20200325 20200324214801 ACCESSION NUMBER: 0001140361-20-006758 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200324 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200325 DATE AS OF CHANGE: 20200324 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MVC CAPITAL, INC. CENTRAL INDEX KEY: 0001099941 IRS NUMBER: 943346760 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 814-00201 FILM NUMBER: 20739855 BUSINESS ADDRESS: STREET 1: RIVERVIEW AT PURCHASE STREET 2: 287 BOWMAN AVENUE, 3RD FLOOR CITY: PURCHASE STATE: NY ZIP: 10577 BUSINESS PHONE: 914-701-0310 MAIL ADDRESS: STREET 1: RIVERVIEW AT PURCHASE STREET 2: 287 BOWMAN AVENUE, 3RD FLOOR CITY: PURCHASE STATE: NY ZIP: 10577 FORMER COMPANY: FORMER CONFORMED NAME: MEVC DRAPER FISHER JURVETSON FUND I INC DATE OF NAME CHANGE: 19991207 FORMER COMPANY: FORMER CONFORMED NAME: MEVC DRAPER FISHER JURVETSON FUND I INC DATE OF NAME CHANGE: 19991207 8-K 1 form8k.htm 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)

March 24, 2020

MVC CAPITAL, INC.
(the "Fund")
(Exact name of registrant as specified in its charter)

DELAWARE, 814-00201, 943346760
(Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification Number)

287 Bowman Avenue
2nd Floor
Purchase, NY 10577
(Address of registrant's principal executive office)

914-701-0310
(Registrant's telephone number)



(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
MVC
New York Stock Exchange
Senior Notes
MVCD
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 8.01.
Other Events.

On March 24, 2020, the Company issued a press release with a letter to shareholders from the Chairman and Portfolio Manager.  A copy of the press release is filed with this Form 8-K as Exhibit 99.1.

Item 9.01
Financial Statements and Exhibits


(d) Exhibits

99.1
Press release of the Company, dated March 24, 2020

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
MVC CAPITAL, INC.
 
     
 
By:
/s/ Michael Tokarz  
 
Michael Tokarz  
 

Chairman
 
       
Dated: March 24, 2020
 



EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

MVC Business Update Related to COVID-19
Michael Tokarz, Chairman and Portfolio Manager Shareholder Letter

Dear Fellow Shareholders,

It is certainly an unprecedented time in the world that warrants providing our shareholders and bondholders with our business update in response to the continued spread of COVID-19.

Our Operations

In order to ensure the safety of our Investment Adviser’s team and to help reduce the risks relating to spreading the Coronavirus, we implemented our contingency plans two weeks ago and are working under our business continuity procedures with our team working remotely. We will continue to execute on our contingency plans throughout this period.

Liquidity and Capital Structure

The Company has capital for investments from cash on hand and a line of credit, and through portfolio monetizations and loan repayments. We expect the current market environment will cause delays and negatively impact valuations as potential acquirors await further information regarding the impact of COVID-19 on our portfolio companies.

Based upon the January 31, 2020 NAV, MVC was leveraged at 0.4X, after taking into account the announced $20 million note redemption scheduled for March 26, 2020 and the repayment of a $25 million credit facility, following the January quarter end. The median BDC leverage is 1X. We have access to capital through our $50 million Credit Facility with People’s United Bank N.A., which is undrawn. We have unrestricted cash of approximately $29 million, net of the note redemption and repayment, which is available to support our portfolio.

Supporting Portfolio Companies

As we continue to monitor the effects of COVID-19, our investment team is actively engaged with each of our portfolio companies. MVC is providing additional insight and support as these companies work through the impact of COVID-19 on their businesses and take steps to protect their workforce and company.

Portfolio Composition

MVC investments are diversified by security type, industry and geographic region, and the impact of COVID-19 on our portfolio companies will vary. Of note, our portfolio exposure to the Oil and Gas industry is limited. While it is too early to know the full impact of COVID-19 on our portfolio, we will continue to work with our portfolio companies to better understand what we can do as a financial partner to help them weather the current market environment.
 


On behalf of our Board of Directors and our entire management team, I would like to thank you for your continued support of MVC Capital, especially during these uncertain times. We stand ready to answer any questions that you may have and wish each of you and your families good health.

Sincerely,
Michael T. Tokarz

MVC-G

Safe Harbor Statement and Other Disclosures
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors In addition to those risks described from time to time in our filings with the Securities and Exchange Commission and other similar risks, the forward-looking statements in this release are subject to the uncertainties regarding the duration, spread and effects of COVID-19, and its economic, financial and market consequences, both generally and for the specific companies in which we are invested. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Investor Contact
Jackie Rothchild
MVC Capital
914.510.9400

Or

Jeffrey Goldberger / Allison Soss
KCSA Strategic Communications
212.896.1249 / 212.896.1267