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MCG Capital agrees sale of Jet Broadband.


Investment firm MCG Capital Corporation (NASDAQ:MCGC) reported on Monday that it has agreed to sell the assets of broadband communications company Jet Broadband Holdings LLC.

The business will be purchased by Shentel Cable Company, a wholly-owned subsidiary of US-based Shenandoah Telecommunications Company (NASDAQ:SHEN).

MCG made its initial debt and equity investment in Jet Broadband in December 2005. The total fair value of MCG's debt and equity investments in the company as of 31 December 2009 was USD50.2m.

After transaction expenses MCG's cash proceeds from the sale of the business are expected to be approximately USD49.7m.

Steven F. Tunney, MCG's president and CEO, said that the sale is in line with the strategy "to monetize equity assets at or near fair value to support the redeployment of capital into current yield oriented investments to grow operating income".

The deal remains subject to customary closing conditions, including regulatory clearance, but is expected to be completed in mid-August 2010.

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Publication:Internet Business News
Date:Apr 20, 2010
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