MCG Capital announced receipt of an unsolicited letter outlining a proposed transaction from HC2 Holdings. MCG’s board of directors, in consultation with its financial and legal advisers, will review the terms of the proposal submitted by HC2 Holdings.

On April 28, 2015, MCG executed a merger agreement with PennantPark Floating Rate Capital, which provides for the acquisition of MCG by PFLT in a stock and cash transaction. MCG’s board of directors has not changed its recommendation in support of the merger with PFLT. MCG will have no further comment on HC2 Holdings’ proposal until the Board has completed its review.

Morgan Stanley is serving as financial advisor to MCG and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to MCG.

Arlingtton, VA-based MCG Capital is a commercial finance company providing capital and advisory services to lower middle-market companies throughout the U.S.