PURCHASE, N.Y. -- MVC Capital, Inc. ("MVC") (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, announced today the completion of a second lien term loan of $10.0 million to G3K Displays, Inc. ("G3K").
Under the terms of the transaction, MVC has committed to provide a $10.0 million loan in two installments: $6.0 million upfront followed by $4.0 million in delayed draws subject to G3K reaching certain milestones. The loan, which carries a cash interest rate of 13%, matures in five years and includes warrants.
Headquartered in Hoboken, NJ, G3K is a leading innovator in custom design, manufacturing and installation of in-store environments, signage, displays and fixtures for the retail industry. Leveraging its integrated supply chain and engineering and manufacturing capabilities, G3K serves several major retailers including Foot Locker, adidas, 7-Eleven and Luxottica.
"With an experienced management team and attractive growth prospects, G3K is an excellent addition to our portfolio," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc. "Our investment not only provides G3K with the working capital necessary to satisfy the strong current demand for its products, it is structured to benefit MVC shareholders by generating current income combined with the potential for equity upside."
"We look forward to partnering with the management of this top-tier company in its class that has done a good job servicing its blue-chip customer base and positioning them to win more customers," said Shivani Khurana, Managing Director of TTGA, investment adviser to MVC.
Steven M. Kaitz, Chief Executive Officer of G3K Displays, said, "We are excited to partner with MVC as we embark on expansion plans for our business. With MVC's support, we have access to the necessary working capital and business expertise to diversify our customer base, fulfill increasing orders and implement new systems to help increase our scale and efficiency."
About G3K Displays, Inc.
G3K is a custom designer, manufacturer and installer of in-store environments, signage, display and fixtures for major retailers such as Foot Locker, adidas, 7-Eleven and Luxottica. The company provides a turnkey solution from concept to completion while leveraging its integrated supply chain to support its off-the-shelf and specialized solutions for clients. With its vast international and domestic engineering and manufacturing capabilities, G3K is able to address real time production changes with consistency. G3K is headquartered in Hoboken, NJ with offices in Long Island City, NY; Fairfield, CT; Portland, OR; North Springfield, VT; São Paulo, Brazil; and Huizhou, Guangdong, China.
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 www.mvccapital.com.
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