MCG Capital Corporation Responds to Revised Unsolicited Proposal From HC2 Holdings

MCG Capital Corporation

acknowledges receipt of an unsolicited letter dated June 23, 2015, from HC2 Holdings, Inc. (NYSE MKT:

), further revising the terms of a proposed transaction previously submitted to the board of directors of MCGC. MCGC's Board of Directors, in consultation with its financial and legal advisers, will review the terms of the revised proposal submitted by HC2 Holdings. On April 28, 2015, MCGC executed a merger agreement with PennantPark Floating Rate Capital Ltd.

which provides for the acquisition of MCGC by PFLT in a stock and cash transaction currently valued at approximately $175.0 million, or approximately $4.75 per MCGC common share at closing, representing a 15.8% premium to MCGC's closing stock price on April 28, 2015. MCGC's Board of Directors has not changed its recommendation in support of the merger with PFLT. MCGC will have no further comment on HC2 Holdings' revised proposal until the Board has completed its review. Morgan Stanley & Co. LLC is serving as financial advisor to MCG, Wachtell, Lipton, Rosen & Katz is serving as legal counsel to MCG and Sutherland Asbill & Brennan LLP is serving as legal counsel to MCG with respect to the Investment Company Act of 1940.