PURCHASE, N.Y., April 21, 2014 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, today announced that it will invest $15 million in Inland Environmental & Remediation, LP ("Inland").
Under the terms of the transaction, MVC has committed to provide a $15 million senior secured note to Inland in order to fund the development of new facilities throughout the U.S. oil and gas shale formations. MVC has funded $13 million of its $15 million commitment and anticipates funding the remaining $2 million, subject to Inland achieving certain milestones. The note will mature in five years and includes warrants.
Headquartered in Columbus, Texas, Inland has developed a patented, environmentally-friendly recycling process to transform waste produced from oil field drilling sites into a road base product used in road construction. Founded in 1999, Inland was the first company in Texas granted a permit to convert oil and gas waste into a safe road base product.
"MVC's investment in Inland is consistent with our strategy of making yielding investments that provide a strong and steady stream of cash flows and includes features that provide equity upside," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc. "We are excited to partner with the Company and work with its strong management team, led by its founder David Polston, to assist in its strategic near and long-term expansion initiatives. Inland possesses a unique competitive advantage made possible by its efficient and environmentally-friendly solutions to address the oil and gas industry's waste management requirements through recycling and reuse of waste."
David Polston, Founder and Chief Executive Officer at Inland Environmental & Remediation, added, "Based on an unprecedented level of drilling activity in the United States, we are experiencing increasingly strong demand for our services. With the support of MVC Capital, we plan to increase our operational footprint by building additional plants in the U.S. oil and gas shale formations to better service both existing and new customers. We look forward to working closely with MVC as we continue to execute our business plan."
About MVC Capital, Inc.
MVC Capital is a Business Development Company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For MVC's investor relations, please call Jackie Rothchild at 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: the performance of Inland, including its ability to achieve its expected financial and business objectives; MVC Capital's ability to execute its investment strategy; the performance of MVC Capital's investments (including the investment in Inland); and changes in economic or financial market conditions and other factors that are enumerated in the company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.
CONTACT: Investor Relations Jackie Rothchild MVC Capital, Inc. 914-510-9400 or Jeffrey Goldberger / Garth Russell KCSA Strategic Communications 212-896-1249 / 212-896-1250 Media Inquiries Nathaniel Garnick / Patrick Scanlan Sard Verbinnen & Co. 212-687-8080