Medley Capital Corp. announced the end of the company's "go-shop" process, which did not provide a superior proposal as defined in the terms of the amended merger agreement with Sierra Income Corp. and Medley Management Inc.
The 60-day go-shop period, which was meant to review proposals from competing companies, expired Sept. 27.
After the expiry date of the go-shop period, Medley Capital became subject to the "no-shop" clause, which restricts the ability of the company to solicit alternative acquisition proposals from, engage in negotiations or discussions with, or provide confidential information to third parties.
Consequently, Medley Capital's board of directors recommended the amended deal between Sierra Income, Medley Capital and Medley Management to its shareholders.
The company said that during the go-shop period, Houlihan Lokey, the independent financial adviser to its special committee, contacted 194 potential buyers and strategic partners, resulting in 27 parties executing nondisclosure agreements with MCC.