|American Capital Secured Credit Facility Increased to $1.25 Billion|
Bethesda, MD – October 31, 2006 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that the Company, through a special purpose subsidiary, has completed an amendment to its commercial paper conduit securitization facility administered by Wachovia Capital Markets LLC, which increased the facility amount from $1 billion to $1.25 billion. The amendment also extended the term of the facility for an additional year to October 2007, and increased the number of banks participating in the facility from four to six. New institutional lenders are HSBC Bank USA, National Association, backed by conduit lender Bryant Park Funding LLC, and Credit Suisse, New York Branch, backed by conduit lender Alpine Securitization Corp. The facility is priced at LIBOR plus 75 basis points and is secured by certain senior and subordinated debt assets originated by American Capital.
"We are pleased that our lenders have again confirmed their confidence in American Capital with significantly increased commitments. With the expansion of the Wachovia Capital Markets secured credit facility, including the addition of Credit Suisse and HSBC, American Capital now has $2.5 billion of capacity from our combined credit facilities, increasing our total debt capacity under term debt and revolving credit facilities to over $5.5 billion," said Tom McHale, American Capital Senior Vice President, Finance.
“American Capital’s access to a diverse pool of attractively priced and flexible capital is a tremendous competitive advantage for the Company,” said John Hooker, American Capital Vice President, Debt Capital Markets. “The increased debt capacity will allow for us to continue pursuing a robust pipeline of compelling investment opportunities.”
American Capital had the following amounts outstanding under each term debt issuance and facility as of September 30, 2006:
*Amendment as of October 5, 2006 to increase commitment to $1.25 billion.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with $11.5 billion in capital resources under management. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests from $5 million to $500 million per company.
As of September 30, 2006, American Capital shareholders have enjoyed a total return of 500% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of over $1.2 billion in dividends and paid $21.56 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.
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 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.
SOURCE: American Capital Ltd.www.americancapital.com