MCG Capital Corporation reported unaudited consolidated financial results for the third quarter and nine months ended September 30 2009. Net operating income for the quarter ended September 30, 2009 was $8.7 million, or $0.11 per share decreased 33.5% to $8.7 million from the comparable period in 2008. Net income for the quarter ended September 30, 2009 was $4.2 million, or $0.06 per share which represented a $71.1 million improvement over the net loss of $66.9 million, or $0.90 per share, reported for the comparable period in 2008. This improvement was attributable primarily to a $75.3 million reduction in the net investment loss recognized on the fair value of MCG's investment portfolio, partially offset by a $4.4 million, or 33.5%, decrease in net operating income. Net asset value per common share for the quarter ended September 30, 2009 was $8.06 as compared to $7.97 at June 30, 2009 and $8.66 a year ago. Revenue for the third quarter of 2009 was $23.6 million, which represents a 24.6% decrease from the comparable period in 2008. The decreases in MCG's revenues, net operating income and DNOI resulted primarily from a reduction in the average portfolio balance stemming from the Company's monetization activities, a 250 basis point decrease in average LIBOR, an increase on loans placed on non-accrual status, as well as decreases in MCG's loan originations and loan fees. Total net realized loss on investments was $4.3 million against $9.5 million a year ago. For the nine months, total revenues were $76.2 million against $105.4 million a year ago. Total net realized loss on investments was $29.9 million against $9.1 million a year ago. Net loss was $52.6 million or $0.71 per share against $133.95 million or $1.87 per share a year ago. Net cash provided by operating activities was $120.56 million against $122.6 million a year ago.

Effective October 29, 2009, the Board of Directors of MCG Capital Corporation amended and restated the company's current Amended and Restated Bylaws. In addition to the amendments described below, the Amended and Restated Bylaws include certain changes to (i) clarify language and (ii) make various technical corrections and non-substantive changes. The Amended and Restated Bylaws: eliminate the requirement that stockholders who nominate persons for election to the Company's board; comply with all applicable limitations on ownership contained in the Investment Company Act of 1940 Act, as amended, and rules and regulations promulgated thereunder; include a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among such stockholder and beneficial owner, if any, and their respective affiliates and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his or her respective affiliates and associates, or others acting in concert therewith, on the other hand; and eliminate the requirement that stockholders who propose business to come before an annual meeting of the Company's stockholders comply with all applicable limitations on ownership contained in the Investment Company Act of 1940 Act, as amended, and rules and regulations promulgated thereunder.

MCG Capital Corporation, Q3 2009 Earnings Call, Nov-04 2009