Medley Capital Corp (NYSE:MCC) – Closure Announcement of its Offering of 6M shares and Dropping Hedge Fund Interest


Dallas, Texas 09/10/2013 (Financialstrend) – Basically through secured loans, subordinate loans and equity positions, Medley Capital Corp (NYSE:MCC), provides customized financing solutions to small and mid-sized companies. It’s a non-diversified business development company. On Monday, the stock closed at $13.52 and at this price it trades just around 12.5% below its 52-week high of $15.46.

On September 9, the company announced closing of its public offering of 6M shares and additional 0.9M shares of the underwriters’ option to purchase. The pricing of the registered public offering was announced at $13 per share.

The company raised funds to repay the portion of outstanding debt, to fund new investment opportunities and for general corporate purposes. In the net proceeds MCC raised over $86 million after deduction of estimated offering expenses and underwriting discounts and commissions.

The firms which acted as joint book-running managers for the registered public offering of MCC include Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and J.P. Morgan Securities LLC.

With consideration to churning sentiment among the hedge funds, as total of 4 funds cut their interest in Q1, MCC is also an important stock to monitor for hedge fund and insider trading activity. McKinley Capital Management, at the top of the list, dropped the investment by $6.4 million in stock followed by Clough Capital Partners which dropped the stock worth $2.8 million.

Amidst the dropping sentiment, there exists fund manager who maintain bullish on the stock and topped their holdings in MCC including PEAK6 Capital Management, AQR Capital Management and Millennium Management.

MCC is trading ex-dividend since late August for the quarterly dividend payout scheduled to be paid on September 13, 2013. MCC announced a dividend of $0.37 per share – the same dividend which it is paying since last four quarters. The annual dividend yield stands over 2.7% at the current stock price.