NEW YORK, July 20 /PRNewswire-FirstCall/ -- GSC Investment
Corp. (NYSE: GNV) ("GNV" or the "Company") announced today that the
two major independent proxy advisory firms, ISS Proxy Advisory
Services ("ISS") and Glass Lewis have recommended that GNV's
stockholders vote "FOR" the proposal to approve the issuance of
9,868,422 shares of the Company's common stock for an aggregate
purchase price of approximately $15,000,000 at a price per share below the
current net asset value per share of such stock and "FOR" the
proposal to approve the Investment Advisory and Management
Agreement, pursuant to which Saratoga Investment Advisors, LLC
("Saratoga") would be appointed as
the Company's new investment adviser at GNV's Special Meeting of
Stockholders that will occur on July 30,
2010.
ISS and Glass Lewis are the leading independent proxy advisory
firms and their voting analyses and recommendations are relied upon
by major institutional investment funds, mutual funds and
fiduciaries throughout the world.
In recommending that GNV stockholders support the proposals, ISS
said:
"We note that the company and its advisors have conducted an
extensive strategic review process to determine the most viable
option for the company given its liquidity needs, lack of superior
financial alternatives and the downside risk."*
ISS also acknowledged that the recapitalization plan allows
stockholders to participate in the future growth of the
Company:
"[The recapitalization plan] would permit the company's
shareholders the greatest opportunity to participate in the
company's economic recovery on a post-transaction basis."*
In its July 9th report Glass Lewis
concluded that:
"…the Proposed Agreement (Proposal 2) is in the best
interests of shareholders, who should directly benefit from the
services and duties of Saratoga
and the capital infusion provided by Saratoga Partners (Proposal
1)."*
GNV's stockholders are encouraged to read the definitive proxy
statement detailing the $55 million
recapitalization plan of GSC Investment Corp. in its entirety as it
provides, among other things, a comprehensive discussion of the
process that led to the recapitalization plan. GNV's board of
directors unanimously recommends that GNV's stockholders vote "FOR"
all proposals at the upcoming special meeting.
YOUR PARTICIPATION IS IMPORTANT - PLEASE VOTE TODAY!
NOT VOTING is the same as a NO VOTE
GNV urges stockholders to follow the ISS and Glass Lewis
recommendations by voting "FOR" each of the proposals today.
Stockholders who have questions about the proposals or who
need assistance voting their shares should contact the Company's
proxy solicitor, Morrow & Co., LLC, toll-free at (800) 607-0088
or (203) 658-9400 or by email at GSC@morrowco.com. The proxy
statement and other information relating to the recapitalization
plan and special meeting are available at the SEC website
(www.sec.gov) or under the Investor Relations section of the
Company's website at (www.gscinvestmentcorp.com)
*Permission to use quotations from the ISS or Glass Lewis report
was neither sought nor obtained.
About GSC Investment Corp.
GSC Investment Corp. is a specialty finance company that invests
primarily in leveraged loans and mezzanine debt issued by U.S.
middle-market companies, high yield bonds and collateralized loan
obligations. It has elected to be treated as a business
development company under the Investment Company Act of 1940.
The Company may also opportunistically invest in distressed
debt, debt issued by non-middle market companies, and equity
securities issued by middle and non-middle market companies.
The Company draws upon the support and investment advice of
its external manager, GSC Group, an alternative asset investment
manager that focuses on complex, credit-driven strategies.
GSC Investment Corp. is traded on the New York Stock Exchange
under the symbol "GNV".
About Saratoga Investment Advisors, LLC
Saratoga Investment Advisors, LLC is a New York-based investment firm formed to focus
on credit driven strategies. It is affiliated with Saratoga
Partners, a leading middle-market private equity investment firm
with $750 million of committed and
invested institutional equity capital. Saratoga Partners
primarily invests in businesses with strong management teams and
valuations of between $50 million and $500
million, specializing in companies in manufacturing and
business services. It also has a successful record in special
situations and distressed investing. Since Saratoga was
founded in 1984 as a division of the New
York investment firm Dillon, Read & Co., Inc., it has
invested in 35 companies with an aggregate value of more than
$3.7 billion. It has been an
independent firm since its spinoff in 1998 after Dillon Read was acquired by Swiss Bank
Corporation (a predecessor to UBS AG). Saratoga is an
alternative asset investment manager led by its Managing Directors,
Christian Oberbeck, Richard Petrocelli and Charles Phillips.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking
statements, including statements with regard to the proposed common
Stock Purchase Agreement and other actions described in this press
release. Words such as "intends," "believes," "expects,"
"projects," and "future" or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are subject to risks and uncertainties, including the
satisfaction of the conditions of the proposed transactions
contemplated by the Stock Purchase Agreement, and other factors
enumerated in the filings GSC Investment Corp. makes with the SEC.
GSC Investment Corp. undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
ADDITIONAL INFORMATION ABOUT THE RECAPITALIZATION PLAN AND
WHERE TO FIND IT
A copy of the definitive proxy statement of the Company and
other materials have been filed with the SEC. INVESTORS AND
SECURITY HOLDERS ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT
AND THESE OTHER MATERIALS CAREFULLY BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED
TRANSACTIONS. Investors and security holders may obtain a
free copy of the definitive proxy statement and other documents
filed by the Company with the SEC at the SEC's website at
www.sec.gov or under the Investor Relations section of the
Company's website at www.gscinvestmentcorp.com.
The Company and its directors, executive officers and other
members of its management and employees may be deemed to be
participants in the solicitation of proxies from its stockholders
in connection with the proposed transaction. Information
concerning the interests of the Company's participants in the
solicitation is set forth in the Company's definitive proxy
statement relating to the proposed transactions.
Contact:
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Debbie Lombardi
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GSC Group
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973-593-5438
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John Ferguson
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Morrow & Co., LLC
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203-658-9400
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SOURCE GSC Investment Corp.