BETHESDA, Md., Sept. 3 /PRNewswire-FirstCall/ -- American Capital Ltd. (Nasdaq: ACAS) announced today that it has received notices of acceleration concerning $393 million of its privately placed notes. Shortly after the receipt of these notices, American Capital entered into forbearance agreements with holders of 99% of the notes. Under these agreements, each of the participating holders have agreed that they will not sue American Capital to collect payment for the outstanding amounts owed under its notes or to commence an involuntary bankruptcy proceeding, absent certain events, unless the holders of a majority of the outstanding principal amount of its notes have agreed to terminate the forbearance period.
Under the terms of the notes, the applicable holders became entitled to the "make-whole" payments of approximately $21.6 million and default interest only following the acceleration of the notes. Under the forbearance agreements, the Company agreed to add to the outstanding principal amount of certain of the notes the $21.6 million of make-whole payments and agreed to pay default interest on all of the notes retroactive to March 30, 2009.
The Company noted that it continues negotiations with representatives of its three principal unsecured creditor groups with the goal of reaching a comprehensive restructuring of its unsecured debt.
The notes were due on various dates, including $82 million which was originally scheduled to mature two days after the date of the acceleration notice. The accelerated notes represent all of the privately placed notes issued directly by American Capital and approximately 17% of its $2.4 billion unsecured debt and 9% of its total consolidated debt outstanding as of June 30, 2009.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $11 billion(1) in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.
(1) As of June 30, 2009.
This press release contains forward-looking statements. The statements regarding expected results of American Capital and its business 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.
Investors - (301) 951-5917
Media - (301) 968-9400
SOURCE: American Capital Ltd.
Investors, (301) 951-5917 or Media, (301) 968-9400