NexPoint warns MCC stockholders of dire situation at MCC, including risk of default, evident in recent Form 10-Q
NexPoint lays out path for improved oversight at MCC via independent director nominees who will act in best interest of MCC stockholders
DALLAS, May 16, 2019 – NexPoint Advisors, L.P. (“NexPoint”) issued a presentation today to stockholders of Medley Capital Corporation (“MCC” or the “Company”) as it seeks stockholder support in electing two independent directors to the MCC board of directors (the “Board”).
To view the presentation, visit: www.MedleyCapitalVote.com/Stockholder-Materials/
On May 13, 2019, NexPoint filed a definitive proxy statement soliciting MCC stockholders to elect two independent directors, Mark T. Goglia and Stephen A. Mongillo, to the Board at the Company’s annual meeting of stockholders scheduled for Tuesday, June 4, 2019 (including any adjournments or postponements and any meeting that may be called in lieu thereof by the Company, the “Annual Meeting”).
The two directors up for reelection, Seth Taube and Arthur S. Ainsberg, were among those who the Delaware Chancery Court found to have violated their fiduciary duties; yet, they were still re-nominated by the MCC board.
As NexPoint highlights in its presentation, the Annual Meeting gives stockholders the opportunity to replace the incumbent directors with two additional independent directors, which NexPoint believes is necessary to protect stockholder interests.
The Form 10-Q (the “10-Q”) filed by MCC on May 10, 2019 underscores the need to improve the oversight at MCC—not to mention the urgency needed in doing so. NexPoint believes the 10-Q raises serious questions about portfolio valuation, showing that the MCC portfolio is comprised almost entirely (88%) of Level 3 fair valued positions (with the remaining 12% position also fair valued at NAV), almost 40% of which are affiliated or controlled positions. It also plainly states that MCC is at risk of violating debt covenants.
NexPoint believes its independent director nominees would provide the oversight necessary to improve the Company’s financial situation and protect stockholders’ interests.
As such, NexPoint urges MCC shareholders to vote FOR its slate of two director nominees, Mark T. Goglia and Stephen A. Mongillo, at the Annual Meeting using the BLUE proxy card.
Though NexPoint is seeking to become the Company’s external investment adviser, its nominees – who are unaffiliated with any members of the NexPoint Group – will act solely in the best interests of all MCC stockholders.
The presentation to MCC stockholders, proxy statement, and additional information on NexPoint’s director nominees can be found at: www.MedleyCapitalVote.com
About NexPoint Advisors, L.P.
NexPoint, together with its affiliates, is a multibillion-dollar global alternative investment manager founded in 1993 by Jim Dondero and Mark Okada. A pioneer in the leveraged loan market, the firm has evolved over 25 years, building on its credit expertise and value-based approach to expand into other asset classes. Today, NexPoint and its affiliates operate a diverse investment platform, serving both institutional and retail investors worldwide. In addition to high yield credit, the firm’s investment capabilities include public equities, real estate, private equity and special situations, structured credit, and sector- and region-specific verticals built around specialized teams.
NexPoint Advisors, L.P. (“NexPoint”) has filed a definitive proxy statement with the Securities and Exchange Commission (the “SEC”) together with the other participants named therein to be used to solicit (the “Solicitation”) proxies for, among other matters, the election of its slate of director nominees at the Annual Meeting of Stockholders (the “Annual Meeting”) of Medley Capital Corporation (the “Company”) expected to take place on June 4, 2019. Stockholders are advised to read the definitive proxy statement and any other documents related to the Solicitation because they contain important information, including information relating to the participants in the Solicitation. These materials and other materials filed by the participants with the SEC in connection with the Solicitation are available at no charge on the SEC’s website at www.sec.gov. In addition, the participants in the Solicitation will provide copies of the definitive proxy statement without charge, upon request. Requests for copies should be directed to the participants’ proxy solicitor.