NEW YORK, May 5, 2020 /PRNewswire/ -- Medley Management
Inc. (NYSE: MDLY) ("MDLY" or the "Company") today announced that is
has received a notice of termination from Sierra Income Corporation
("Sierra") of its agreement to merge with MDLY pursuant to the
Amended and Restated Agreement and Plan of Merger, dated as of
July 29, 2019, between MDLY and
Sierra (the "Amended MDLY Merger Agreement").
As previously disclosed, effective as of July 29, 2019, the Company, Sierra and
Sierra Management, Inc., a wholly owned subsidiary of Sierra
("Merger Sub"), entered into the Amended MDLY Merger Agreement,
pursuant to which the Company would be merged with and into Merger
Sub (the "MDLY Merger"). Section 9.1(c) of the Amended MDLY
Merger Agreement permits both the Company and Sierra to terminate
the Amended MDLY Merger Agreement if the MDLY Merger has not been
consummated on or before March 31, 2020 (the "Outside
Date").
On May 1, 2020, the Company
received a written notice of termination from Sierra in accordance
with Sections 9.1 and 10.2 of the Amended MDLY Merger
Agreement. As a result, the Amended MDLY Merger Agreement has
been terminated effective as of May 1,
2020.
As set forth in a Form 8-K filed by Sierra on May 5, 2020, Sierra terminated the Amended MDLY
Merger Agreement effective as of May 1,
2020 as the Outside Date has passed and the MDLY Merger has
not been consummated. In determining to terminate the Amended
MDLY Merger Agreement, Sierra considered a number of factors,
including, among other factors, changes in the relative valuation
of the Company and Sierra, 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 the MDLY Merger in a timely manner.
About Medley
Medley is an alternative asset management firm offering yield
solutions to retail and institutional investors. Medley's national
direct origination franchise is a premier provider of capital to
the middle market in the U.S. Medley has $4.1 billion of
assets under management in two business development companies,
Medley Capital Corporation (NYSE: MCC) (TASE: MCC) and Sierra
Income Corporation, and several private investment vehicles. Over
the past 18 years, Medley has provided capital to over 400
companies across 35 industries in North
America.1
Medley LLC, the operating company of Medley Management Inc., has
outstanding bonds which trade on the NYSE under the symbols (NYSE:
MDLX) and (NYSE: MDLQ). Medley Capital Corporation is dual-listed
on the New York Stock Exchange (NYSE: MCC) and the Tel Aviv Stock
Exchange (TASE: MCC) and has outstanding bonds which trade on both
the New York Stock Exchange under the symbols (NYSE: MCV) and
(NYSE: MCX).
Forward-Looking Statements
Statements included herein may contain "forward-looking
statements." Statements other than statements of historical
facts included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of assumptions, risks and uncertainties, which
change over time. Actual results may differ materially from those
anticipated in any forward-looking statements as a result of a
number of factors, including those described from time to time in
filings by the Company with the Securities and Exchange Commission,
including those described in the section "Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2019. Except as required by law, the
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements made herein speak only
as of the date of this press release.
This press release does not constitute an offer for any Medley
fund.
1 Medley Management Inc. is the parent company
of Medley LLC and several registered investment advisors
(collectively, "Medley"). Assets under management refers to assets
of our funds, which represents the sum of the net asset value of
such funds, the drawn and undrawn debt (at the fund level,
including amounts subject to restrictions) and uncalled committed
capital (including commitments to funds that have yet to commence
their investment periods). Assets under management are as
of December 31, 2019.
Investor Contact:
Sam Anderson
Head of Capital Markets & Risk Management
Medley Management Inc.
212-759-0777
Media Contact:
Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co. LP
212-257-4170
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SOURCE Medley Management Inc.