MVC Capital and Equus Complete Share Exchange

PURCHASE, N.Y., May 15, 2014 (GLOBE NEWSWIRE) -- MVC Capital, Inc. ("MVC") (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, announced today the signing of a share exchange agreement with Equus Total Return, Inc. ("Equus"), another publicly traded business development company, as part of a transformational reorganization under the Investment Company Act of 1940 recently adopted by the Board of Directors of Equus.

Under the terms of the reorganization, Equus will pursue a merger or consolidation with MVC, a subsidiary of MVC, or one or more of MVC's portfolio companies. Absent Equus merging or consolidating with/into MVC itself (whereby MVC would own a majority of Equus shares), the current intention is for Equus to (i) be restructured into a publicly-traded operating company focused on the energy and/or financial services sectors and (ii) seek to terminate its election as a business development company.

Pursuant to the share exchange agreement, MVC has received 2,112,000 shares of Equus in exchange for 395,839 shares of MVC. The exchange was calculated based upon each company's respective net asset value per share (NAV). As part of the reorganization, MVC may acquire additional Equus shares from time to time, either through Equus' direct sale of newly issued shares to MVC or through the purchase of Equus shares by MVC. The consummation of the reorganization is anticipated to occur within one year, and Equus currently intends to maintain common stock listed on the New York Stock Exchange after that point unless Equus is merged with MVC.

"We are encouraged by the strategic possibilities this transaction presents," said Bruce W. Shewmaker, Managing Director of MVC Capital, Inc. "Equus has access to energy and finance sector expertise and a substantial portion of its assets held in cash, all of which we will seek to capitalize on through a potentially creative business combination."


About MVC Capital, Inc.

MVC 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 additional information about MVC, please visit the MVC's website at

About Equus Total Return, Inc.

The Fund is a business development company that trades as a closed-end fund on the New York Stock Exchange, under the symbol "EQS". Additional information on the Fund may be obtained from the Fund's website at

Forward-Looking Statements

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 Equus, including its ability to achieve its expected financial and business objectives; Equus' ability to execute its reorganization and complete transactions contemplated thereby; MVC Capital's ability to execute its investment strategy; the performance of MVC Capital's investments (including the investment in Equus); MVC's ability to complete the transactions contemplated by Equus' reorganization; the fulfillment of closing conditions under, or the execution of customary additional documentation for, agreements related to the reorganization, including the share exchange agreement; 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 / Brad Nelson KCSA Strategic Communications 212-896-1249 / 212-896-1217 Media Inquiries Nathaniel Garnick / Patrick Scanlan Sard Verbinnen & Co. 212-687-8080

Source:MVC Capital