|American Capital Invests $17 Million in Add-on Acquisition for Portfolio Company H-Cube|
Bethesda, MD - April 28, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $17 million in its portfolio company H-Cube LLC to support its acquisition of Blackheath Financial, a provider of outsourced real estate analysis and consulting services to commercial mortgage-backed securities ("CMBS") underwriters and investors. H-Cube is a portfolio company of GTCR Golder Rauner LLC and the parent company of Zenta Global Ltd., a U.S.-based leader in high quality business process outsourcing ("BPO") services, and Global Realty Outsourcing Inc. ("GRO"), a leading real estate outsourcing partner to the commercial and residential real estate and financial services markets. American Capital's investment takes the form of a senior term loan and preferred equity.
"This is American Capital's eighth transaction with GTCR and it is the third within the H Cube BPO platform," said American Capital Regional Managing Director Darin Winn. "Our private equity partner, GTCR, brings to this deal over 25 years of experience investing in a range of service-oriented industries including transaction processing and business process outsourcing. We are pleased to be once again working with GTCR and look forward to a long and expanding relationship with the firm in further developing the H-Cube platform and in other endeavors."
American Capital has invested over $3.7 billion in the last twelve months, approximately $1 billion year to date and nearly $260 million quarter to date. These amounts do not include American Capital's unfunded equity commitment and debt funded to its portfolio company European Capital. For more information about American Capital's portfolio, click here.
"American Capital is backing a premium, high value added outsourced service provider to the CMBS industry," said American Capital Principal Demian Kircher. "Blackheath has been successful in serving leading multinational financial institutions and offering a flexible service model. The combination of Blackheath, Zenta and GRO creates a large, diversified BPO platform for financial institutions and the leading outsourced provider to the CMBS industry. The combined product offerings of Blackheath and GRO will position them to gain greater market share and increase their value as a one-stop outsourced CMBS service provider."
Headquartered in New York, Blackheath provides onsite and offsite services for every facet of CMBS transactions from origination and due diligence to securitization assistance and investor due diligence. In addition to its headquarters, the Company has offices in Irvine, CA and London. Blackheath's clients include major multinational investment banks and a variety of investors in the CMBS market.
American Capital first invested in H-Cube in May 2005, supporting the acquisition of Zenta. American Capital's investment took the form of a senior term loan and an equity co-investment alongside GTCR and H-Cube senior management. American Capital also committed additional debt financing to support the Company's anticipated growth and for other corporate purposes. In December 2005, American Capital made a subsequent senior term debt and equity investment in H-Cube to support the acquisition of GRO.
"We are pleased to be joining with American Capital in the second add-on for the H Cube BPO platform," said David Randell, GTCR Principal. "American Capital's flexibility, efficiency and broad range of expertise have been critical in our many partnerships. We look forward to maximizing the strategic advantages of this transaction and to a continued and growing relationship with American Capital."
For more information about American Capital's previous investments in support of H-Cube's BPO platform, click here.
ABOUT AMERICAN CAPITAL
As of December 31, 2005, American Capital shareholders have enjoyed a total return of 412% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid $19.11 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.
ABOUT GTCR GOLDER RAUNER LLC
ABOUT H-CUBE LLC
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.
SOURCE: American Capital Ltd.www.americancapital.com