MCG Capital closes $13.5M loan to Color Star Growers MCG Capital Corporation announced the closing of its $13.5 million loan to Color Star Growers of Colorado, Inc. and its related affiliates. MCG’s financing consists of a subordinated term loan funded in connection with Color Star’s recent debt refinancing. Color Star is a family owned distributor and grower of flowering annuals. The Company has greenhouse operations in nine locations, servicing markets from the Texas Valley north to Montana and from St. Louis to the Rocky Mountains.
MCG intends to repurchase up to $75M of common stock through 'Dutch Auction' MCG Capital announced that it expects to commence a modified "Dutch Auction" tender offer for up to $75M of its common stock at a price per share not less than $3.25 and not greater than $3.75. The tender offer is expected to commence on November 3 and to expire on December 3, unless extended. The maximum number of shares proposed to be purchased in the tender offer represents approximately 53% of MCG's currently outstanding common stock. Tenders of shares must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to that time.
MCG Capital sees stock buyback accretive to Q4 NAV by 5c In October , MCG Capital continued to buy back stock in the open market and purchased 2.46M shares at an average price of $3.52, which the company anticipates will result in an additional 5c per share accretion to our NAV in Q4.