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MVC Capital Provides $10MM Second Lien Loan to LegalShield

August 02, 2013, 07:19 AM
Filed Under: Technology

MVC Capital, a publicly traded business development company that makes private debt and equity investments, announced the completion of a second lien term loan of $10.0 million to Pre-Paid Legal Services, Inc. d/b/a LegalShield. LegalShield is a leading marketer of legal counsel and identity theft solutions to families and small businesses in the U.S. and Canada.

This loan was entered into as part of a syndicate for a $175 million second lien term loan, whereby Morgan Stanley Senior Funding, Inc. and RBC Capital Markets served as Joint Lead Arrangers and Joint Bookrunners. The second lien term loan matures on July 1, 2020. The second lien term loan is part of a $515 million senior secured credit facility that also includes a $310 million senior secured first lien term loan and a $30 million revolving credit facility.

LegalShield raised the new credit facility to refinance existing indebtedness of $395.0 million, which included an original $8 million investment made by MVC Capital on July 14, 2011, which earned an approximate 11.6% IRR over the near two-year holding period.

"Based on our familiarity with LegalShield and the positive results of our previous investment, we have continued confidence in maintaining this relationship," said Michael Tokarz, chairman & portfolio manager of MVC Capital, Inc.

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