Medley Capital Corporation Announces Termination of Amended Merger Agreement With Sierra Income Corporation and Continued Role of Special Committee

NEW YORK, May 05, 2020 (GLOBE NEWSWIRE) -- Medley Capital Corporation (NYSE: MCC) (“MCC” or the “Company”) today announced that it has received a notice of termination from Sierra Income Corporation (“Sierra”) of its agreement to merge with MCC pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of July 29, 2019, between MCC and Sierra (the “Amended Merger Agreement”).

Under the Amended Merger Agreement, either party may, subject to certain conditions, terminate the Amended Merger Agreement if the merger is not consummated by March 31, 2020. Sierra elected to do so on May 1, 2020. Representatives of Sierra informed the Company that in determining to terminate the Amended Merger Agreement, Sierra considered a number of factors, including, among other factors, changes in the relative valuation of the Company and Sierra, the changed circumstances and the unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic, and the uncertainty regarding the parties’ ability to satisfy the conditions to closing the merger in a timely manner.

Following this, the Special Committee of the Board of Directors of MCC will remain constituted. The termination frees the Special Committee to explore strategic alternatives seeking to maximize stockholder value. The Special Committee continues to consult with Houlihan Lokey, its financial advisor.

About Medley Capital Corporation

Medley Capital Corporation is a closed-end, externally managed business development company ("BDC") that trades on the New York Stock Exchange (NYSE: MCC) and the Tel Aviv Stock Exchange (TASE: MCC). Medley Capital Corporation's 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 these companies expand their businesses, refinance and make acquisitions. Our portfolio generally consists of senior secured first lien loans and senior secured second lien loans. Medley Capital Corporation is externally managed by MCC Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. For additional information, please visit Medley Capital Corporation at www.medleycapitalcorp.com.