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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C.&nbsp; 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>August 31, 2012<BR>
</B>Date of report (date of earliest event reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Medley Capital Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Delaware</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or Other Jurisdiction of Incorporation)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: bold; text-align: center">1-35040</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 48%; font-weight: bold; text-align: center">27-4576073</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>375 Park Avenue, 33<SUP>rd</SUP> Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, NY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)&nbsp;
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(212) 759-0777</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s Telephone Number, Including
Area Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not Applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; font-weight: bold">ITEM 1.01.</TD>
    <TD STYLE="width: 90%; font-weight: bold">Entry into a Material Definitive Agreement.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Commitment for Credit Facility</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 31, 2012, Medley Capital Corporation
(the &ldquo;Company&rdquo;) entered into a $55,000,000 Senior Secured Term Loan Credit Agreement (the &ldquo;Term Loan Agreement&rdquo;)
and an amendment to its existing secured syndicated revolving credit facility pursuant to an Amendment No. 1 (the &ldquo;ING Credit
Agreement Amendment&rdquo;) to the Senior Secured Revolving Credit Agreement dated August 4, 2011 (the &ldquo;ING Credit Agreement&rdquo;
and together with the ING Credit Agreement Amendment, the &ldquo;Amended ING Facility&rdquo;), each with certain lenders party
thereto from time to time and ING Capital LLC, as administrative agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">The combined
Term Loan Agreement and Amended ING Facility (the &ldquo;Facilities&rdquo;) increase the Company&rsquo;s current financing capacity
by $62.5 million to $187.5 million and provides for an aggregate accordion feature permitting subsequent increases to the Facilities
up to an aggregate maximum amount of $300 million. Financing available under the </FONT>Amended ING Facility <FONT STYLE="color: black">was
increased from $125 million to $132.5 million and the revolving period was extended from August 2014 to August 2015, followed by
a one-year amortization period and a final maturity in August 2016. Pricing on the </FONT>Amended ING Facility<FONT STYLE="color: black">
was reduced to LIBOR plus 3.75%, with no floor. The </FONT>Amended ING Facility<FONT STYLE="color: black"> also provides for a
step down in pricing to LIBOR plus 3.25% if the Company&rsquo;s net asset value (as defined and determined pursuant to the Amended
ING Facility) exceeds $350 million. The Term Loan has a bullet maturity in August </FONT>2017,<FONT STYLE="color: black"> bears
interest at LIBOR plus 4.00%, with no floor</FONT> and has substantially similar terms to the Amended ING Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Borrowings under the Facilities are subject
to, among other things, a minimum borrowing/collateral base. Substantially all of the Company&rsquo;s assets are pledged as collateral
under the Facilities. The Facilities require the Company to, among other things (i) make representations and warranties regarding
the collateral as well the Company&rsquo;s business and operations, (ii) agree to certain indemnification obligations, and (iii)
agree to comply with various affirmative and negative covenants. The documents for each of the Facilities also include default
provisions such as the failure to make timely payments under the Facilities, the occurrence of a change in control, and the failure
by the Company to materially perform under the operative agreements governing the Facilities, which, if not complied with, could
accelerate repayment under the Facilities, thereby materially and adversely affecting the Company&rsquo;s liquidity, financial
condition and results of operations<FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing description of the Amended
ING Facility does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended ING
Facility attached hereto as Exhibit 10.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing description of the Term Loan
Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Term Loan Agreement
attached hereto as Exhibit 10.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 4, 2012, the Company issued
a press release regarding the matters described herein, which is attached hereto as Exhibit 99.1 and incorporated by reference
herein.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM&nbsp;2.03.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information set forth under Item 1.01
of this current report on Form 8-K is hereby incorporated in this Item 2.03 by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ITEM 9.01.&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 92%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Exhibit No.</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Amendment No. 1 to the Senior Secured Revolving Credit Agreement among the Company as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated August 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Senior Secured Term Loan Credit Agreement among the Company as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated, dated August 31, 2012.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press release, dated September 4, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Signatures</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 50%">MEDLEY CAPITAL CORPORATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: August 31, 2012</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Richard T. Allorto, Jr. &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name: &nbsp;&nbsp;Richard T. Allorto, Jr. &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;&nbsp; &nbsp;Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-indent: -3.5in">&nbsp;</P>

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[{"type": "8-K", "sequence": "1", "filename": "v323011_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 18124}]
{"company-data": {"conformed-name": "Medley Capital Corp", "cik": "0001490349", "irs-number": "274576073", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "814-00818", "film-number": "121075079"}, "business-address": {"street1": "375 PARK AVENUE", "street2": "SUITE 3304", "city": "NEW YORK", "state": "NY", "zip": "10152", "phone": "212-759-0777"}, "mail-address": {"street1": "375 PARK AVENUE", "street2": "SUITE 3304", "city": "NEW YORK", "state": "NY", "zip": "10152"}, "former-company": {"former-conformed-name": "Medley Capital BDC LLC", "date-changed": "20100426"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 31, 2012
Date of report (date of earliest event reported)
Medley Capital Corporation
(Exact Name of Registrant as Specified in
Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-35040
27-4576073
(Commission File Number)
(IRS Employer Identification No.)
375 Park Avenue, 33
rd
Floor
New York, NY
(Address of Principal Executive Offices) 
(Zip Code)
(212) 759-0777
(Registrant's Telephone Number, Including
Area Code)
Not Applicable
(Former Name or Former Address, if Changed
Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01.
Entry into a Material Definitive Agreement.
Additional Commitment for Credit Facility
On August 31, 2012, Medley Capital Corporation
(the "Company") entered into a $55,000,000 Senior Secured Term Loan Credit Agreement (the "Term Loan Agreement")
and an amendment to its existing secured syndicated revolving credit facility pursuant to an Amendment No. 1 (the "ING Credit
Agreement Amendment") to the Senior Secured Revolving Credit Agreement dated August 4, 2011 (the "ING Credit Agreement"
and together with the ING Credit Agreement Amendment, the "Amended ING Facility"), each with certain lenders party
thereto from time to time and ING Capital LLC, as administrative agent.
The combined
Term Loan Agreement and Amended ING Facility (the "Facilities") increase the Company's current financing capacity
by $62.5 million to $187.5 million and provides for an aggregate accordion feature permitting subsequent increases to the Facilities
up to an aggregate maximum amount of $300 million. Financing available under the
Amended ING Facility
was
increased from $125 million to $132.5 million and the revolving period was extended from August 2014 to August 2015, followed by
a one-year amortization period and a final maturity in August 2016. Pricing on the
Amended ING Facility
was reduced to LIBOR plus 3.75%, with no floor. The
Amended ING Facility
also provides for a
step down in pricing to LIBOR plus 3.25% if the Company's net asset value (as defined and determined pursuant to the Amended
ING Facility) exceeds $350 million. The Term Loan has a bullet maturity in August
2017,
bears
interest at LIBOR plus 4.00%, with no floor
and has substantially similar terms to the Amended ING Facility.
Borrowings under the Facilities are subject
to, among other things, a minimum borrowing/collateral base. Substantially all of the Company's assets are pledged as collateral
under the Facilities. The Facilities require the Company to, among other things (i) make representations and warranties regarding
the collateral as well the Company's business and operations, (ii) agree to certain indemnification obligations, and (iii)
agree to comply with various affirmative and negative covenants. The documents for each of the Facilities also include default
provisions such as the failure to make timely payments under the Facilities, the occurrence of a change in control, and the failure
by the Company to materially perform under the operative agreements governing the Facilities, which, if not complied with, could
accelerate repayment under the Facilities, thereby materially and adversely affecting the Company's liquidity, financial
condition and results of operations
.
The foregoing description of the Amended
ING Facility does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended ING
Facility attached hereto as Exhibit 10.1.
The foregoing description of the Term Loan
Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Term Loan Agreement
attached hereto as Exhibit 10.2.
On September 4, 2012, the Company issued
a press release regarding the matters described herein, which is attached hereto as Exhibit 99.1 and incorporated by reference
herein.
ITEM 2.03.         Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01
of this current report on Form 8-K is hereby incorporated in this Item 2.03 by reference.
ITEM 9.01.  Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
10.1
Amendment No. 1 to the Senior Secured Revolving Credit Agreement among the Company as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated August 31, 2012.
10.2
Senior Secured Term Loan Credit Agreement among the Company as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated, dated August 31, 2012.
99.1
Press release, dated September 4, 2012.
Signatures
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MEDLEY CAPITAL CORPORATION
Date: August 31, 2012
/s/ Richard T. Allorto, Jr.
Name:   Richard T. Allorto, Jr.
Title:     Chief Financial Officer