Retail Supplier Parent In Discussions For Monetizing Investment in Supplier, Could Include Sale, Partial Sale, Other Mechanisms

MVC Capital on Friday provided investors with an update on its business strategy, which included a discussion concerning its investment in U.S. Gas & Electric ("US Gas").

MVC reported that performance of U.S. Gas & Electric has "been strong" with US Gas recording 20 consecutive months of trailing 12-month EBITDA increases. U.S. Gas & Electric is "very close" to its all-time high of performance in 2013 (which had been $35 million in annual EBITDA).

"We continue to explore other opportunities to enhance our shareholder value with this asset [US Gas], which may include an outright or partial sale, or other potential accretive structures such as a dividend recapitalization, or through other capital market transactions," MVC executives said.

Given U.S. Gas & Electric's "strong performance" and distributions received from US Gas ($12.5 million this far in 2016), MVC highlighted the importance of "patience" in disposition opportunities for US Gas

"We are currently in discussions regarding seeking to extract more value from this investment [US Gas]. In addition to potentially selling the company outright, we are also contemplating a partial sale of US Gas that would allow us to continue to profit from its performance," MVC executives added.