Additional Commitment for Credit Facility

On January 23, 2013, Medley Capital Corporation (the "Company") announced the closing of an additional $37.5 million of commitments to its Senior Secured Term Loan Credit Agreement (the "Term Loan Facility") and Senior Secured Revolving Credit Agreement (the "Revolving Credit Facility" and, collectively with the Term Loan Facility, as amended, the "Facilities"). Total commitments to the Facilities are $300 million, comprised of $200 million committed to the Revolving Credit Facility and $100 million committed to the Term Loan Facility. With these additional commitments, the Company has exercised the aggregate accordion feature permitting subsequent increases to the Facilities up to an aggregate maximum amount of $300 million.

In connection with the foregoing, the Company entered into Amendment No. 2 to its existing Term Loan Facility (the "Term Loan Agreement Amendment") in order to effectuate the increased commitments thereunder. The Revolving Credit Agreement did not require an amendment.

The foregoing description of the Term Loan Agreement Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Term Loan Agreement Amendment, which is attached hereto as Exhibit 10.1.

The foregoing description of the Revolving Credit Facility and the Term Loan Facility does not purport to be complete and is qualified in its entirety by reference to the full text of the Revolving Credit Facility and the Term Loan Facility, which were filed as Exhibits 10.1 and 10.2, respectively, to the Company's Form 8-K on December 13, 2012.

On January 23, 2013, the Company issued a press release regarding the matters described herein, which is attached hereto as Exhibit 99.1 and incorporated by reference herein.

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.

(d) Exhibits.

Exhibit No.                                 Description

    10.1          Amendment No. 2 to the Senior Secured Term Loan Credit Agreement
                  among the Company as borrower, the Lenders party thereto, and
                  ING Capital LLC, as Administrative Agent, dated January 23,
                  2013.

    99.1          Press release, dated January 23, 2013.