NexPoint Advisors Enhances Medley Capital Corporation Proposal, Urges Remaining Independent Directors to Consider Offer

NexPoint Advisors, L.P. (“NexPoint“) announced today it has proposed to Medley Capital Corporation (“MCC” or the “Company“) a number of enhancements related to its original proposal to become MCC’s external investment advisor (the “Proposal“). NexPoint continues to urge the remaining members of the Special Committee (the “Special Committee“) of the MCC Board of Directors (the “Board“) to consider the Proposal, which NexPoint believes represents the best option for MCC stockholders as compared to every other alternative available to the Company. VIEW PDF

NexPoint communicated its proposed enhancements in a letter to the Special Committee (attached here), reiterating its willingness to negotiate on Proposal terms.

The Board and the Special Committee’s previous refusals to engage with NexPoint and adequately review the Proposal were denounced by the Court of Chancery of the State of Delaware (the “Court“). On March 11, 2019 the Court issued a Memorandum Opinion that found that the Board violated its fiduciary duties for its failure to negotiate with NexPoint, among other reasons.

Despite the Court’s findings, NexPoint believes the Special Committee can still act in the best interest of stockholders and fulfill its fiduciary duties by considering the Proposal, especially given the latest enhancements.

NexPoint stands ready to engage with the Special Committee immediately to negotiate and finalize the Proposal, and believes that the Proposal represents the best option for MCC stockholders.