Item 8.01. Other Events.

On December 17, 2008, MCG Capital Corporation, a Delaware Corporation (the "Company"), repurchased for $1,300,000, in a privately negotiated transaction, a total of $5,000,000 of its outstanding debt securities under the Company's debt securitization through MCG Commercial Loan Trust 2006-1 (the "MCG Commercial Loan Trust 2006-1"), a wholly owned subsidiary. To date, the Company has repurchased an aggregate of $15,120,000 of its outstanding debt securities under the MCG Commercial Loan Trust 2006-1 for $3,974,000. The Company is aware that certain additional debt securities under the MCG Commercial Loan Trust 2006-1 currently may be available for purchase at substantial discounts to their respective face amounts. In order to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption, the Company may, from time to time, purchase such debt for cash in open market purchases and/or privately negotiated transactions. The Company will evaluate any such transactions in light of then-existing market conditions, taking into account the Company's current liquidity and prospects for future access to capital. The amounts involved in any such transactions, individually or in the aggregate, may be material.

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