Medley Wins Favorable Settlement in MusclePharm Litigation

NEW YORK, NY (November 7, 2016) - Medley Capital Corporation (NYSE: MCC) ("Medley") today confirmed that it has successfully reached a settlement agreement with MusclePharm Corporation ("MusclePharm") for claims MusclePharm made against Medley and its portfolio company, Capstone Nutrition ("Capstone") on June 21, 2016.

Under the settlement, MusclePharm must pay Capstone an undisclosed cash amount and other consideration, which it will use in connection with its obligations to Medley, including a Medley-led term loan. MusclePharm will also drop all claims against both Medley and Capstone and dismiss its complaint with prejudice.

Capstone initially filed a complaint against MusclePharm on May 16, 2016 for multiple contractual breaches, including non-payment for product and failure to meet minimum volume requirements.

"This settlement is a good result for Capstone and confirms our view that MusclePharm's counterclaims were entirely without merit," said Brook Taube, CEO of Medley. "Capstone is well-known for its exceptional manufacturing standards and high quality nutrition products, and we look forward to continuing to partner with the Capstone team as they grow their business."

ABOUT MEDLEY CAPITAL CORPORATION
Medley Capital Corporation is a closed-end, externally managed business development company ("BDC") that trades on the New York Stock Exchange (NYSE: MCC). Medley Capital Corporation's investment objective is to generate current income and capital appreciation by lending to privately-held middle market companies, primarily through directly originated transactions, to help these companies expand their businesses, refinance and make acquisitions. Our portfolio generally consists of senior secured first lien loans and senior secured second lien loans. In many of our investments, we receive warrants or other equity participation features, which we believe will increase the total investment returns. Medley Capital Corporation is externally managed by MCC Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. For additional information, please visit Medley Capital Corporation at www.medleycapitalcorp.com.

ABOUT MCC ADVISORS LLC
MCC Advisors LLC is a subsidiary of Medley Management Inc. (NYSE: MDLY). Medley is a credit-focused asset management firm offering yield solutions to retail and institutional investors. Medley's national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S. Medley has over $5 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE:MCC) and Sierra Income Corporation, as well as private investment vehicles. Over the past 14 years, we have provided in excess of $6 billion of capital to over 300 companies across 35 industries in North America. For additional information, please visit Medley Management Inc. at www.mdly.com.

SOURCE: Medley Capital Corporation

Investor Relations Contact:
Sam Anderson
Head of Capital Markets & Risk
Medley Management Inc.
212-759-0777

Media Contact:
Liz Bruce
Fitzroy Communications
212.498.9197

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Medley Capital Corporation via Globenewswire

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