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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>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>March 21, 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: 10pt 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>

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    <TD STYLE="width: 48%; vertical-align: top; font-weight: bold; text-align: center">1-35040</TD>
    <TD STYLE="width: 4%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 48%; vertical-align: top; font-weight: bold; text-align: center">27-4576073</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(Commission File Number)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(IRS Employer Identification No.)</TD></TR>
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<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;</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">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>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

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

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

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

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

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

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
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    <TD STYLE="width: 12%; font-weight: bold">Item&nbsp;1.01.</TD>
    <TD STYLE="font-weight: bold">Entry into a Material Definitive Agreement.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March&nbsp;21, 2012, Medley Capital
Corporation (the &ldquo;Company&rdquo;) and U.S. Bank National Association (the &ldquo;Trustee&rdquo;) entered into a First Supplemental
Indenture (the &ldquo;First Supplemental Indenture&rdquo;) to the Indenture dated February 7, 2012 between the Company and the
Trustee (the &ldquo;Indenture&rdquo;) relating to the Company&rsquo;s issuance, offer and sale of $40,000,000 aggregate principal
amount of 7.125% senior notes due 2019 (the &ldquo;Initial Notes&rdquo;) and up to $6,000,000 aggregate principal amount of the
Company&rsquo;s 7.125% senior notes due 2019 (the &ldquo;Optional Notes&rdquo; and together with the Initial Notes, the &ldquo;Notes&rdquo;).
On March 21, 2012, the Initial Notes were issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes mature on March&nbsp;30, 2019
and may be redeemed in whole or in part at the Company&rsquo;s option at any time or from time to time on or after March&nbsp;30,
2015 at a redemption price of par plus accrued and unpaid interest.&nbsp; The Notes bear interest at a rate of 7.125%&nbsp;per
year payable quarterly on March&nbsp;30, June&nbsp;30, September&nbsp;30 and December&nbsp;30 of each year, commencing on June&nbsp;30,
2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes are the Company&rsquo;s
direct unsecured obligations and rank: (i)&nbsp;<I>pari passu</I> with all outstanding and future senior unsecured
indebtedness; (ii)&nbsp;senior to any of our future indebtedness that expressly provides it is subordinated to the Notes;
(iii)&nbsp;effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is
initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such
indebtedness, including without limitation, borrowings under our revolving credit facility; and (iv)&nbsp;structurally
subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without
limitation, the indebtedness of MOF I BDC LLC and Medley SBIC, L.P.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Indenture, as supplemented by the
First Supplemental Indenture, contains certain covenants including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>For the period of time during which the Notes are outstanding, the Company will not violate (regardless of whether it is subject
to) Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;)
or any successor provisions. These provisions generally prohibit the Company from making additional borrowings, including through
the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act,
equals at least 200% after such borrowings.</TD></TR>                                                     <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>For the period of time during which the Notes are outstanding, the Company will not violate (regardless of whether it is subject
to) Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions. These provisions generally
prohibit the Company from declaring any cash dividend or distribution upon any class of its capital stock, or purchasing any such
capital stock if its asset coverage, as defined in the 1940 Act, is below 200% at the time of the declaration of the dividend or
distribution or the purchase and after deducting the amount of such dividend, distribution or purchase.</TD></TR>                                                                                                                 <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>If, at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange
Act of 1934, to file any periodic reports with the Securities and Exchange Commission, the Company agrees to furnish to holders
of the Notes and the Trustee, for the period of time during which the Notes are outstanding, the Company&rsquo;s audited annual
consolidated financial statements, within 90 days of its fiscal year end, and unaudited interim consolidated financial statements,
within 45 days of its fiscal quarter end (other than its fourth fiscal quarter). All such financial statements will be prepared,
in all material respects, in accordance with applicable United States generally accepted accounting principles</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These covenants are subject to important
limitations and exceptions that are described in the Indenture. The Indenture provides for customary events of default and further
provides that the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding series of Notes may declare
such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Notes were sold pursuant to an underwriting
agreement dated March 13, 2012 among the Company and MCC Advisors LLC, and Jefferies &amp; Company, Inc. and Janney Montgomery
Scott LLC, as representatives of the several underwriters named in the underwriting agreement. The Notes were offered and sold
pursuant to the Company&rsquo;s Registration Statement on Form&nbsp;N-2, as amended (File No.&nbsp;333&ndash;179237) and the preliminary
prospectus supplement filed with the Securities and Exchange Commission on March&nbsp;12, 2012, as supplemented by the prospectus
supplement dated March 13, 2012.&nbsp;The transaction closed on March&nbsp;21, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company intends to use the net proceeds
from the sale of the Notes to repay a portion of the outstanding indebtedness under its revolving credit facility and for general
corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing descriptions of the Indenture,
the First Supplemental Indenture and the Notes do not purport to be complete and are qualified in their entirety by reference to
the full text of the Indenture, the First Supplemental Indenture and the Notes, respectively, each filed as exhibits hereto and
incorporated by reference herein.</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&nbsp;2.03. Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information set forth under Item&nbsp;1.01
above with respect to the Notes is hereby incorporated by reference into this Item&nbsp;2.03, insofar as it relates to the creation
of a direct financial obligation.</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"><B>Item&nbsp;9.01. 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"><U>Number</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Indenture, dated as of February 7, 2012 (for senior debt securities) between the registrant and U.S. Bank National Association,
as trustee; incorporated by reference to Exhibit 99.D.2 to the registrant&rsquo;s Amendment No. 1 to the Registration Statement
on Form N-2 (File No. 333-179237) filed on February 10, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: black">2.</FONT></TD><TD><FONT STYLE="color: black">First Supplemental Indenture, dated March 21, 2012, between the registrant and U.S. Bank National
Association, which includes the </FONT>form of registered 7.125% Senior Note due 2019; incorporated by reference to<FONT STYLE="color: black">
</FONT>Exhibit 99.D.4 <FONT STYLE="color: black">to the registrant&rsquo;s Post-Effective Amendment No. 2 to the Registration Statement
on Form N-2 (File No. 333-179237 filed on March 21, 2012).</FONT></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">&nbsp;</P>

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

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<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 ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top">MEDLEY CAPITAL CORPORATION</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 45%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 35%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Date: March 21, 2012</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: top">/s/ Richard T. Allorto, Jr.</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Name: &nbsp;&nbsp;Richard T. Allorto, Jr.</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Title:&nbsp;&nbsp;&nbsp; &nbsp;Chief Financial Officer</TD>
    <TD>&nbsp;</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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{"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": "12706584"}, "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
March 21, 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:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
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.
On March 21, 2012, Medley Capital
Corporation (the "Company") and U.S. Bank National Association (the "Trustee") entered into a First Supplemental
Indenture (the "First Supplemental Indenture") to the Indenture dated February 7, 2012 between the Company and the
Trustee (the "Indenture") relating to the Company's issuance, offer and sale of $40,000,000 aggregate principal
amount of 7.125% senior notes due 2019 (the "Initial Notes") and up to $6,000,000 aggregate principal amount of the
Company's 7.125% senior notes due 2019 (the "Optional Notes" and together with the Initial Notes, the "Notes").
On March 21, 2012, the Initial Notes were issued.
The Notes mature on March 30, 2019
and may be redeemed in whole or in part at the Company's option at any time or from time to time on or after March 30,
2015 at a redemption price of par plus accrued and unpaid interest.  The Notes bear interest at a rate of 7.125% per
year payable quarterly on March 30, June 30, September 30 and December 30 of each year, commencing on June 30,
2012.
The Notes are the Company's
direct unsecured obligations and rank: (i)
pari passu
with all outstanding and future senior unsecured
indebtedness; (ii) senior to any of our future indebtedness that expressly provides it is subordinated to the Notes;
(iii) effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is
initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such
indebtedness, including without limitation, borrowings under our revolving credit facility; and (iv) structurally
subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without
limitation, the indebtedness of MOF I BDC LLC and Medley SBIC, L.P.
The Indenture, as supplemented by the
First Supplemental Indenture, contains certain covenants including:
·
For the period of time during which the Notes are outstanding, the Company will not violate (regardless of whether it is subject
to) Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act of 1940, as amended (the "1940 Act")
or any successor provisions. These provisions generally prohibit the Company from making additional borrowings, including through
the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act,
equals at least 200% after such borrowings.
·
For the period of time during which the Notes are outstanding, the Company will not violate (regardless of whether it is subject
to) Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions. These provisions generally
prohibit the Company from declaring any cash dividend or distribution upon any class of its capital stock, or purchasing any such
capital stock if its asset coverage, as defined in the 1940 Act, is below 200% at the time of the declaration of the dividend or
distribution or the purchase and after deducting the amount of such dividend, distribution or purchase.
·
If, at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange
Act of 1934, to file any periodic reports with the Securities and Exchange Commission, the Company agrees to furnish to holders
of the Notes and the Trustee, for the period of time during which the Notes are outstanding, the Company's audited annual
consolidated financial statements, within 90 days of its fiscal year end, and unaudited interim consolidated financial statements,
within 45 days of its fiscal quarter end (other than its fourth fiscal quarter). All such financial statements will be prepared,
in all material respects, in accordance with applicable United States generally accepted accounting principles
These covenants are subject to important
limitations and exceptions that are described in the Indenture. The Indenture provides for customary events of default and further
provides that the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding series of Notes may declare
such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.
The Notes were sold pursuant to an underwriting
agreement dated March 13, 2012 among the Company and MCC Advisors LLC, and Jefferies & Company, Inc. and Janney Montgomery
Scott LLC, as representatives of the several underwriters named in the underwriting agreement. The Notes were offered and sold
pursuant to the Company's Registration Statement on Form N-2, as amended (File No. 333–179237) and the preliminary
prospectus supplement filed with the Securities and Exchange Commission on March 12, 2012, as supplemented by the prospectus
supplement dated March 13, 2012. The transaction closed on March 21, 2012.
The Company intends to use the net proceeds
from the sale of the Notes to repay a portion of the outstanding indebtedness under its revolving credit facility and for general
corporate purposes.
The foregoing descriptions of the Indenture,
the First Supplemental Indenture and the Notes do not purport to be complete and are qualified in their entirety by reference to
the full text of the Indenture, the First Supplemental Indenture and the Notes, respectively, each filed as exhibits hereto 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
above with respect to the Notes is hereby incorporated by reference into this Item 2.03, insofar as it relates to the creation
of a direct financial obligation.
Item 9.01. Financial Statements and Exhibits.
Number
1.
Indenture, dated as of February 7, 2012 (for senior debt securities) between the registrant and U.S. Bank National Association,
as trustee; incorporated by reference to Exhibit 99.D.2 to the registrant's Amendment No. 1 to the Registration Statement
on Form N-2 (File No. 333-179237) filed on February 10, 2012.
2.
First Supplemental Indenture, dated March 21, 2012, between the registrant and U.S. Bank National
Association, which includes the
form of registered 7.125% Senior Note due 2019; incorporated by reference to
Exhibit 99.D.4
to the registrant's Post-Effective Amendment No. 2 to the Registration Statement
on Form N-2 (File No. 333-179237 filed on March 21, 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: March 21, 2012
/s/ Richard T. Allorto, Jr.
Name:   Richard T. Allorto, Jr.
Title:     Chief Financial Officer