Sierra Income Corporation Funds $15.3 Million Investment to facilitate Integrity - Cornerstone Merger

(New York, NY) May 1, 2014 – Sierra Income Corporation (“SIC”), a business development company that targets senior secured investments in US middle market companies, announced today that it funded an originated senior secured first lien term loan and equity investment to facilitate the merger of Integrity Nutraceuticals (Integrity) with Cornerstone Research and Development, Inc. (“Cornerstone”). The combined company will be a leading developer and value-added manufacturer of specially formulated, science-based nutraceutical products for dietary supplement companies in the United States and internationally.  The financing provided by SIC assisted Integrity and Cornerstone in combining two complementary businesses, expanding manufacturing capabilities, product distribution, and development resources. 

 “We are pleased to be able to provide this investment to help Integrity and Cornerstone grow and diversify their businesses, creating both significant scale and enhanced capabilities” said Seth Taube, CEO of Sierra Income Corporation.  “Our origination teams continue to leverage our broad proprietary network to generate attractive investment opportunities in dynamic middle market companies”.

About Sierra Income Corporation

Sierra is a non-traded, externally managed, non-diversified closed end management investment company that has filed an election to be treated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income, and to a lesser extent, long-term capital appreciation. The Company invests primarily in senior secured debt, second lien debt and, to a lesser extent, subordinated debt of U.S. small and middle market companies with enterprise values ranging from approximately $50 million to $4 billion. Sierra’s investment activities are managed by its investment adviser, SIC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended.

About SIC Advisors LLC

SIC Advisors LLC, an affiliate of Medley LLC (“Medley”), is a registered investment adviser under the Investment Advisers Act of 1940, as amended. Medley specializes in credit investing, including direct private lending and corporate credit related strategies and provides first lien, second lien and unitranche term loans to lower middlemarket and middle-market companies with an investment size between $7 and 50 million. Medley supports acquisition and growth financings, leveraged buyouts, management buyouts, bank debt restructurings, CAPEX, Chapter 11 exit financing and DIP financing. Medley is headquartered in New York with offices in San Francisco.

There can be no assurance that we will be able to sustain distributions at any particular level. All distributions are subject to board approval. Sierra’s previous distributions to stockholders were funded from expense support payments that are subject to repayment to its investment adviser, SIC Advisors LLC (“SIC Advisors”). The level of these distributions was not based on our investment performance and may not continue in the future. If SIC Advisors had not agreed to make expense support payments, these distributions would have come from paid in capital. The reimbursement of these payments owed to SIC Advisors will reduce the future distributions to which investors would otherwise be entitled.