PURCHASE, N.Y., July 30, 2013 (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 $9.5 million in Biogenic Reagents ("Biogenic"), a producer of high-performance carbon products made from renewable resources.
Under the terms of the transaction, MVC has committed to provide a $9.5 million senior secured convertible note to Biogenic in order to construct additional reactor capacity at the Company's production facility located in Marquette, Michigan. Biogenic has received strong support from the State of Michigan, led by the Michigan Strategic Fund and the Michigan Economic Development Corporation. The note will mature in five years.
Headquartered in Minneapolis, MN, with a subsidiary in Marquette, MI, Biogenic's specialty products include: activated carbon for use in purification of air, water, food and pharmaceuticals; metallurgical carbon for use as a reagent and energy source in the refinement of specialty metals; and thermal carbon for use in energy generation. Biogenic's products are replacing a variety of coal-based products as they can offer better performance with less environmental impact. Biogenic's products include activated carbons that greatly reduce mercury and other emissions from power plants and industrial facilities that allow customers to comply with EPA's stringent new air toxics standards, which require a substantial reduction of mercury emissions and other pollutants by 2015.
"We are pleased to partner with Biogenic, as they continue to expand their footprint and grow their operations. Biogenic has developed an innovative solution manufactured in its leading-edge production facility that provides a higher performing set of activated carbon products at a lower price point," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc. "We are impressed by Biogenic's strong management team and competitive advantage made possible by their unique process, technology and utilization of feedstock."
Jim Mennell, Chief Executive Officer at Biogenic Reagents, said: "Significant growth opportunities exist for Biogenic given the customer landscape and changing regulatory backdrop. We anticipate executing on these opportunities with MVC Capital, our financial partner that has already demonstrated their value-added approach and knowledge in our industry. We look forward to working closely with them as we continue to execute on 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 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
About Biogenic Reagents
Biogenic Reagents is a developer and producer of versatile, high-performance carbon products made from renewable resources. The company offers less expensive, higher-performing and cleaner alternatives to traditional coal-based carbon products. Privately held, Biogenic Reagents is headquartered in Minnesota with a production facility in Michigan. More information about Biogenic can be found at www.biogenicreagents.com.
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, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission. There can be no assurance that the portfolio company referenced herein will perform as anticipated or that our investment in such company will help us achieve our investment objective.
CONTACT: For MVC Capital, Inc. Nathaniel Garnick/Patrick Scanlan 212-687-8080Source:MVC Capital