MVC Capital Inc. in Purchase has agreed to sell U.S. Gas & Electric Inc., a retail energy supplier headquartered in Mamaroneck, for approximately $97.2 million, MVC officials recently announced.
USG&E is the largest portfolio holding for MVC, a publicly traded business development company that makes private debt and equity investments in various industries.
The buyer in the pending deal, United States Gas & Electric Holdings Inc., is primarily owned by Louis Beck, chairman and CEO of Janus Hotels and Resorts Inc.; Lance T. Shaner, chairman of the Shaner Companies and Rex Energy Corp., CEO of Shaner Hotels and founder of Shaner Capital L.P., and members of the management of USG&E.
The sale, which is subject to regulatory approvals and requires US Holdings to obtain significant third-party financing, is expected to close by Oct. 31.
MVC expects to realize a gain of approximately $96.7 million from its $500,000 equity investment in the Mamaroneck company in 2007. As of July 31, MVC’s investment was valued at $92.7 million.
At closing, USG&E also will retire an approximate $10.2 million second lien loan previously provided by MVC.
U.S. Gas & Electric supplies commercial and residential customers in Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio and Pennsylvania.
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