May 5, 2020
Sierra Income Corporation Terminates Merger Agreements

On May 5, 2020, Sierra Income Corporation (“Sierra”) announced that effective as of May 1, 2020, its...

Sierra Income Corporation Terminates Merger Agreements

May 5, 2020 | Luke Schmidt | Blue Vault

On May 5, 2020, Sierra Income Corporation (“Sierra”) announced that effective as of May 1, 2020, its board of directors had terminated its previously announced mergers with Medley Capital Corporation (“MCC”) and Medley Management Inc. (“MDLY”).

On July 29, 2019, Sierra, MCC, and MDLY entered into amended and restated definitive merger agreements.  As a part of these amended agreements, each party was permitted to terminate the respective agreements if the mergers were not consummated on or before March 31, 2020.  As this date had passed and none of the mergers were finalized, any party could terminate the agreements.

In determining to terminate the merger agreements, Sierra considered a number of factors, including, among other factors, changes in the relative valuations of Sierra, MCC and MDLY, the changed circumstances and the unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic, and the uncertainty regarding the parties’ ability to satisfy the conditions to closing in a timely manner.

Sierra is a non-traded business development company that invests primarily in first lien senior secured debt, second lien secured debt and, to a lesser extent, subordinated debt of middle-market companies in a broad range of industries with annual revenue between $50 million and $1 billion.  As of December 31, 2019, Sierra reported total assets of $925.9 million, including total investments of $675.6 million and cash of $225.3 million.  Sierra raised cumulative capital of $978.4 million during its offering period, which began in April of 2012 and ended in July of 2018.

Sources:  SEC, Blue Vault

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