|American Capital Recognizes $39 Million of Total Net Realized Gain from 9 Exits|
Bethesda, MD - April 11, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has received total proceeds of $268 million from exits and prepayments of nine portfolio companies, realizing a total net gain of $39 million. American Capital earned a positive 48%, 31%, 32%, 25%, 22%, 15%, 18%, 17% and a negative 49% compounded annual rate of return on its exited investments in these companies, including interest, dividends and fees earned over the life of American Capital's exited investments in the companies.
Network for Medical Communication & Research LLC
In January 2002, American Capital invested $22 million in senior debt and senior and junior subordinated debt with warrants to acquire an interest in NMCR. In 2002, NMCR repaid its $3 million of senior debt.
"NMCR has a market-leading reputation for excellence in the delivery medical education and market research programs. We are proud of what the NMCR management team and physician partners have been able to accomplish and are delighted to have been a part of the company's growth," said American Capital Regional Managing Director Darin Winn.
For more information about the NMCR transaction, click here.
3SI Acquisition Holdings Inc.
In July 2002, American Capital invested $13 million in 3SI, supporting Lincolnshire Equity Fund II's acquisition. In December 2003, American Capital sponsored a buyout of 3SI from Lincolnshire, with $58 million of funds from American Capital. In September 2004, American Capital invested a subsequent $7 million to support 3SI's acquisition of the assets of U.S. Currency Protection Corp., a designer, manufacturer and supplier of wireless tracking devices and dye-packs used to protect and recover cash from bank robberies.
"Our cumulative investments in 3SI have produced a wonderful outcome for American Capital," said American Capital Managing Director Do. "We were very pleased to have worked with 3SI's excellent management over the years, both as a minority investor and then as a majority investor."
For more information about the 3SI transactions, click here.
Edge Products LLC
In March 2005, American Capital invested $30 million in a revolving credit facility, senior term loan, senior subordinated debt, junior subordinated debt and common equity in Edge Products.
"We're delighted to have worked closely with Edge's high caliber founding owners and management team throughout our investment. Edge's management team has been successful at leveraging the Company's competitive advantages and we wish them continued success in the coming years," said American Capital Managing Director Frank Do.
For more information about the Edge Products transaction, click here.
Alemite Holdings LP
In June 2002, American Capital invested $10 million in senior subordinated debt with warrants in Alemite to finance partially Sentinel Capital's acquisition of Alemite from Invensys plc, a publicly traded British concern. In July 2004, American Capital was repaid its $10 million senior subordinated debt investment in Alemite.
"We are happy to have been able to work with Sentinel Capital and Alemite, assisting in the companys spin off from its corporate parent and establishing it on a solid footing as an independent company," said American Capital Principal Adam Spence.
For more information about the Alemite transactions, click here.
In March 2005, American Capital invested $35 million in senior subordinated debt of NewQuest, supporting GTCR Golder Rauner LLCs recapitalization.
"Our investment in NewQuest was an excellent opportunity for us to have expanded our relationship with GTCR, a sponsor with extensive experience in the healthcare industry," said American Capital Principal Demian Kircher.
For more information about the NewQuest transaction, click here.
Technical Concepts Holdings LLC
In February 2003, American Capital invested $33.5 million in senior term notes and senior and junior subordinated debt with warrants in Technical Concepts, supporting Liberty Partners acquisition.
"We were delighted to have worked alongside Liberty Partners in their 2003 acquisition of Technical Concepts. Technical Concepts is a global leader in automated top quality restroom equipment, supported by a highly regarded management team dedicated to constant product innovation," said American Capital Principal Sean Eagle.
For more information about the Technical Concepts transaction, click here.
Vector Products Inc.
In September 2005, American Capital invested $35 million in the senior term B debt of Vector.
"We're pleased to have partnered with Vector's management team to support their growth initiatives and entrance into new consumer market categories," said American Capital Principal Steve Martinez.
For more information about the Vector transaction, click here.
Beacon Hospice Inc.
In February 2005, American Capital invested $24 million in the revolving credit facility, senior term loan B and senior subordinated debt of Beacon, supporting Halpern Denny & Co.s acquisition.
"American Capitals investment in Beacon has been an excellent opportunity to invest with Halpern Denny, a new private equity relationship for American Capital, and support a leading hospice provider in the New England region," said American Capital Managing Director Jon Isaacson.
For more information about the Beacon transaction, click here.
American Decorative Surfaces Inc.
In May 2002, American Capital invested $38 million in subordinated debt and equity in American Decorative Surfaces, which used the proceeds to purchase certain assets of Decorative Surfaces International Inc., in a sale conducted under Section 363 of the Bankruptcy Code. In 2005, American Capital sold a portion of its debt and equity investments in American Decorative Surfaces for nominal consideration, realizing a loss of $23 million.
For more information about the American Decorative Surfaces transaction, click here.
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From its IPO through the fourth quarter of 2005, American Capital has earned a 17% compounded annual return on 118 exits and prepayments of senior debt, subordinated debt and equity investments, totaling $2.6 billion of invested capital, including interest, dividends, fees and net gains on these investments. These exits and prepayments represent 30% of all amounts invested by American Capital since its August 1997 IPO.
For a chart showing American Capitals exited portfolio companies, click here.
ABOUT AMERICAN CAPITAL
As of March 31, 2006, American Capital shareholders have enjoyed a total return of 410% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1 billion in dividends and paid $19.91 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 our website.
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.
SOURCE: American Capital Ltd.www.americancapital.com