<SEC-DOCUMENT>0001213900-20-013611.txt : 20200903
<SEC-HEADER>0001213900-20-013611.hdr.sgml : 20200903
<ACCEPTANCE-DATETIME>20200528165214
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001213900-20-013611
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20200528

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Medley Capital Corp
		CENTRAL INDEX KEY:			0001490349
		IRS NUMBER:				274576073
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		212-759-0777

	MAIL ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Medley Capital BDC LLC
		DATE OF NAME CHANGE:	20100426
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<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">[Letterhead of Eversheds Sutherland (US)
LLP]</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">May 28, 2020</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><U>VIA EDGAR</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 8pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Jeffrey Foor, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">U.S. Securities and Exchange Commission</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="font-weight: normal">Washington,
DC 20549</FONT></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-weight: normal">Re:</FONT></TD><TD><FONT STYLE="font-weight: normal">Medley Capital Corporation</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Preliminary Proxy Statement on Schedule
14A filed on May 1, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">File No. 814-00818</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">Dear Mr. Foor:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On behalf of Medley Capital Corporation
(the &ldquo;<B><I>Company</I></B>&rdquo;), set forth below are the Company&rsquo;s responses to the oral comments of the staff
of the Division of Investment Management (the &ldquo;<B><I>Staff</I></B>&rdquo;) of the Securities and Exchange Commission (the
&ldquo;<B><I>SEC</I></B>&rdquo;) that we received on May 11, 2020 regarding the Company&rsquo;s preliminary proxy statement filed
on May 1, 2020 (the &ldquo;<B><I>Preliminary Proxy Statement</I></B>&rdquo;). The Staff&rsquo;s comments are set forth below and
are followed by the Company&rsquo;s responses. References to the &ldquo;Proxy Statement&rdquo; contained herein are to the definitive
proxy statement filed with the SEC concurrently with this letter on May 28, 2020. Terms used but not defined herein have the meaning
ascribed to them in the Preliminary Proxy Statement.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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">1.</TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: On a supplemental basis, please explain the Company&rsquo;s legal reasoning
for not disclosing the stockholder class action, captioned as FrontFour Capital Group LLC, et al. v. Brook Taube et al., Case No.
2019-0100 (the &ldquo;Delaware Action&rdquo;).</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
respectfully advises the Staff on a supplemental basis that, on December 20, 2019, the Court of Chancery of the State of Delaware
(the &ldquo;Delaware Court of Chancery&rdquo;) entered into the Order and Final Judgment approving the settlement of the Delaware
Action (the &ldquo;Settlement&rdquo;). Among other things, the Order and Final Judgment and the Settlement provides for: (i) the
dismissal of the Delaware Action with prejudice and (ii) mutual releases between and among &nbsp;FrontFour Capital Group LLC and
FrontFour Master Fund, Ltd. and the Settlement Class (as defined in the Settlement), on the one hand, and the Company, Brook Taube,
Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, Arthur S. Ainsberg, MCC Advisors LLC, Medley LLC and
Medley Group LLC, on the other hand, of all claims that were or could have been asserted in the Delaware Action through September
26, 2019. The Settlement also provides that, if the merger with Sierra Income Corp (&ldquo;Sierra&rdquo;) with and into MCC (the
&ldquo;MCC Merger&rdquo;) had been consummated, for the creation of a settlement fund (the &ldquo;Settlement Fund&rdquo;), consisting
of $17 million in cash and $30 million of Sierra&rsquo;s common stock, with the number of shares of Sierra&rsquo;s common stock
to be calculated using the pro forma net asset value of $6.37 per share as of June 30, 2019, which would have been distributed
to eligible members of the Settlement Class (as defined in the Settlement). The Delaware Court of Chancery awarded attorney&rsquo;s
fees as follows: (i) an award of $3,000,000 to lead plaintiffs&rsquo; counsel and $75,000 to counsel to plaintiff Stephen Altman
and $420,334.97 of plaintiff counsel expenses payable to the lead plaintiff&rsquo;s counsel, which were paid on December 23, 2019,
and (ii) an award that was contingent upon the closing of the proposed merger transactions (the &ldquo;Contingent Fee Award&rdquo;).
As a result of the termination of the <FONT STYLE="font-size: 10pt">Amended and Restated Agreement and Plan of Merger, dated as
of July 29, 2019, by and between the Company and Sierra (the &ldquo;Amended MCC Merger Agreement&rdquo;) </FONT>and <FONT STYLE="font-size: 10pt">the
Amended and Restated Agreement and Plan of Merger, dated as of July 29, 2019, by and among Medley Management Inc., Sierra, and
Sierra Management, Inc. (the &ldquo;Amended MDLY Merger Agreement&rdquo;) </FONT>by Sierra on May 1, 2020, no Settlement Fund will
be established or paid to the Company&rsquo;s stockholders and no Contingent Fee Award will be paid to plaintiff&rsquo;s counsel.
The other terms of the Settlement, including the releases provided for in the Order and Final Judgment, remain in effect.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">Eversheds
Sutherland (US) LLP is part of a global legal practice, operating through various separate and distinct legal entities, under
Eversheds Sutherland. For a full description of the structure and a list of offices, please visit
www.eversheds-sutherland.com.</FONT></P>




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

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

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

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    <TD STYLE="width: 20%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 28, 2020</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 2&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Item 7 of Schedule 14A requires
disclosure of information required by Instruction 4 to Item 103 of Regulation S-K, which requires disclosure of &ldquo;any material
pending legal proceedings.&rdquo; As a result of the Order and Final Judgment and the Settlement described above, the Delaware
Action is no longer a pending legal proceeding and therefore is not required to be disclosed in the Proxy Statement. In addition,
the Company respectfully advises the Staff on a supplemental basis that information regarding the Delaware Action and the Settlement
are disclosed in the Company&rsquo;s Annual Report on Form 10-K for fiscal year ended September 30, 2019 that will be mailed to
stockholders along with the proxy material in connection with the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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">2.</TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: On page 2 of the Preliminary Proxy Statement, under the &ldquo;Vote Required&rdquo;
heading, with respect to the election of directors proposal, please describe the &ldquo;plurality&rdquo; voting standard to provide
that the director with the most votes will be elected even if less than a majority of stockholders entitled to vote at the Annual
Meeting voted in favor of the proposal to elect such director.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
has revised page 2 of the Proxy Statement to reflect the Staff&rsquo;s comment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&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">3.</TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: On a supplemental basis, please confirm that the Company is in compliance
with all other NYSE continued listing standard rules.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
respectfully advises the Staff on a supplemental basis that the Company is in compliance with all other NYSE continued listing
standard rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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">4.</TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: On page 17 of the Preliminary Proxy Statement, in the second to last paragraph,
please clarify which taxes that the Company pays will be reduced will be reduced as a result of the reverse stock split.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
has revised page 19 of the Proxy Statement to reflect the Staff&rsquo;s comment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&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"><B>5.</B></TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: Please explain why the Company is seeking stockholder authorization to effect
the reverse stock split within one year after obtaining stockholder approval thereof when the Company must be in compliance with
the minimum share price requirement by December 19, 2020.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
has revised the Proxy Statement to reflect that the Board intends to effect a reverse stock split no later than 60 days after stockholder
approval thereof, which would allow the Company trade at a price per share that is greater than $1.00 per share for at least 30
consecutive trading days in advance of December 19, 2020, which is the date by which the Company must regain compliance with the
minimum share price requirement.</P>

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

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

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    <TD STYLE="width: 80%; font-size: 10pt"></TD>
    <TD STYLE="width: 20%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 28, 2020</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 3&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&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">6.</TD><TD STYLE="text-align: justify"><B><U>Comment</U></B>: Please explain if the payment of cash for fractional shares is expected
to result in a large number of stockholders being &ldquo;cashed out&rdquo; (i.e., the stockholder will not hold any shares of the
Company&rsquo;s common stock following the reverse stock split) based on the range of the reverse stock split ratios that is expected
to be approved by stockholders.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Response</U></B>: The Company
respectfully advises the Staff on a supplemental basis that, based on the ratio for the reverse stock split of its common stock
of 1-20, the Company does not expect a large number stockholders to be &ldquo;cashed out&rdquo; as a result of effecting the reverse
stock split. In that regard, the Company has consulted with its transfer agent and based upon the information currently available
the Company&rsquo;s understanding is that only one shareholder of record will be &ldquo;cashed out&rdquo; following the reverse
stock split.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you have any questions
or additional comments concerning the foregoing, please contact Payam Siadatpour at (202) 383-0278, or the undersigned at (202)
383-0176.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%">Sincerely,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">/s/ Steven B. Boehm</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Steven B. Boehm</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">Cc:</TD><TD>Payam Siadatpour, Esq., Eversheds Sutherland (US) LLP</TD>
</TR></TABLE>

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