|American Capital Invests $8.9 Million in HALT Medical|
Bethesda, MD – June 22, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it and an affiliate have invested $8.9 million in HALT Medical Inc., a medical device company focused on women’s health. American Capital’s investment will be used for growth capital and takes the form of convertible preferred equity. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. HALT Medical management and other investors contributed $3.1 million for a total of $12 million in equity financing.
“Our equity financing for HALT Medical supports the commercialization of a beneficial medical procedure for women by a highly experienced management team with exceptional medical credentials,” said Darin Winn, American Capital Regional Managing Director. “Our Los Angeles based buyouts team, with significant expertise in investing in healthcare and medical products, and our Palo Alto Technology Group collaborated to bring us this compelling opportunity.”
American Capital has invested directly and through its funds under management $8.7 billion in the last twelve months, $4.6 billion year to date and approximately $3 billion quarter to date. Not including funds under management, American Capital has invested $6.1 billion in the last twelve months, $3.1 billion year to date and approximately $2 billion quarter to date. For more information about American Capital’s portfolio, please go to www.americancapital.com/our_portfolio/our_portfolio.html.
“HALT Medical has developed a unique device and procedure that essentially provides a ‘cure’ for women suffering from uterine fibroids, a common, but often untreated medical condition. HALT Medical’s procedure is a less expensive, less invasive and more effective alternative to existing treatments,” said Miles Arnone, American Capital Managing Director, Technology Group.
“The commercialization of HALT Medical’s procedure will substantially increase the number of women obtaining treatment for the condition and will provide access to treatment to greater segments of the population domestically and internationally,” said Kimberly Reed, American Capital Principal. “HALT Medical’s products are expected to reduce overall treatment costs and to date have extremely high success rates with quick recovery times and minimal side effects.”
Founded in 2005, HALT Medical is a medical device company focused on women’s health. It has developed a procedure and related equipment for treating uterine fibroids that is less expensive, more effective and less invasive than other alternatives. The Company is located in Pleasanton, CA.
“We are delighted that American Capital is investing in HALT Medical,” said Jeff Cohen, HALT Medical President and CEO. “American Capital was quick to appreciate our product and business model and has provided significant insights from its extensive experience in the medical products and technology industries. Its equity financing significantly streamlines our time to market and enhances our strategic options.“
ABOUT AMERICAN CAPITAL
American Capital is the second largest U.S. publicly traded alternative asset manager with $12 billion in assets under management (second to Fortress (NYSE: FIG)). American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.
As of May 31, 2007, American Capital shareholders have enjoyed a total return of 656% since the Company's IPO—an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $1.6 billion in dividends and paid or declared $24.24 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit www.AmericanCapital.com or www.EuropeanCapital.com.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
This announcement is neither an offer to sell nor a solicitation to buy securities. This announcement appears as a matter of record only.
SOURCE: American Capital Ltd.www.americancapital.com
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