MCG Capital Board of Directors Names B. Hagen Saville President and Chief Executive Officer and Announces Changes to its Board of Directors
MCG Capital Corporation (Nasdaq: MCGC) (“MCG” or the “Company”) announced today that on October 26, 2012 B. Hagen Saville, 51, has been elected as President and Chief Executive Officer effective as of November 1, 2012. Mr. Saville succeeds Richard W. Neu, who will remain as Chair of the Company's Board of Directors. In addition, to facilitate a reduction in the size of the Board of Directors and consistent with MCG's cost reduction efforts, Board members A. Hugh Ewing, III and Wallace B. Millner, III have tendered their resignations effective December 31, 2012, at which point the Board will be reduced from seven members to five. In addition to his current role as chair of the investment and valuation committee, Mr. Millner served as Chair of the Board from November 2002 to February 2005 and from 1998 through May 2001 and as a chair of the audit committee. Since joining the Board in 2007, Mr. Ewing has served on various committees, and now serves on each of the audit, compensation, nominating and corporate governance and investment and valuation committees.
Of Mr. Neu's transition from CEO/Chair to Chair of the Company's Board of Directors, Mr. Saville said “I would like to thank Rick for his stewardship through an important period in the Company's history. With Rick's guidance, we have simplified our capital and expense structure, successfully returned to our roots as a strong middle-market debt lender, and transitioned our workforce to a small group of committed, highly-skilled professionals. I am pleased that Rick will continue his work with MCG as a member of the MCG Board to further strengthen the Company and maximize value to shareholders.”
“I would like to extend my gratitude to the departing board members for their service to the Company,” said Mr. Neu. “We have been fortunate to have B's thoughtful leadership and experience as a financial leader since the Company's inception in 1998. Hugh's insight into complex financial issues and his dedication to building MCG's future throughout a challenging economic period has been invaluable.”
Mr. Neu also remarked “I have greatly valued my time as Chief Executive Officer at MCG, in particular, the opportunity to work so closely with the Company's dedicated and talented employees and management team. I am confident that Hagen's deep knowledge of our market and level of engagement will benefit both the Company and its stockholders. I look forward to being part of MCG's next chapter in my capacity as Chair of the Company's Board of Directors.”
Mr. Saville has been the Company's President and Chief Operating Officer since October 2011, before which he was Executive Vice President of Business Development from March 1998 to October 2011. Mr. Saville co-founded the Company in March 1998 and earlier in his career worked in both commercial and investment banking.
Mr. Neu has been a Director of the Company since 2007 and has served as the Chairman of the Company's Board of Directors since April 2009. Mr. Neu currently serves on the board of directors and audit committee of Huntington Bancshares Incorporated and is the lead director and serves on the audit committee and governance committee of Dollar Thrifty Automotive Group, Inc. Mr. Neu was the Chief Financial Officer and Treasurer of Charter One Financial, Inc. from December 1985 to August 2004, and was a director of Charter One Financial, Inc. from 1992 to August 2004.
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including the Company's ability maximize value to shareholders and those risks, uncertainties and factors referred to in MCG's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
MCG Capital Corporation
Keith Kennedy, 703-247-7513