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American Capital, Ltd. Announces Stock Repurchases and Policy for Possible Additional Repurchases or Dividends

BETHESDA, Md., Sept. 15, 2011 /PRNewswire via COMTEX/ -- American Capital, Ltd. ("American Capital") (Nasdaq: ACAS) announced today that since early August, it has made open market purchases of 9.1 million shares of American Capital common stock at an average price of $8.21 per share, totaling $75.0 million. American Capital also announced that its Board of Directors has adopted a program that may provide for additional repurchases of shares or dividend payments through December 31, 2012.

With regard to the repurchases completed to date, American Capital repurchased 4.9 million shares at an average price of $8.12 per share in August, totaling $39.8 million, and 4.23 million shares at an average price of $8.31 per share in September through today, totaling $35.2 million.

Under the newly adopted program, quarterly, American Capital will consider setting an amount to be utilized for stock repurchases or dividends. Generally, the amount may be utilized for repurchases if the price of American Capital's common stock represents a discount to the net asset value of its shares, and the amount may be utilized for the payment of cash dividends if the price of American Capital's common stock represents a premium to the net asset value of its shares. In determining the quarterly amount, the Board of Directors will be guided by American Capital's net cash provided by operating activities in the preceding quarter. As appropriate, the Board of Directors will also consider cash and cash equivalents on hand, debt service considerations, investment plans, its forecast of financial liquidity and economic conditions, operational issues and the current trading price of American Capital's common stock.

"American Capital has come a long way over the past several years and today has the financial capability and results to increase shareholder value through accretive stock repurchases or dividends," said Malon Wilkus, Chairman and CEO of American Capital. "The stock repurchases made to date have had a positive impact on shareholder value. Though we may be facing headwinds in the current economy, we are optimistic that our portfolio companies, having been tested through the last recession, will perform well in the future."

American Capital will soon mail to all stockholders the notice required by Section 23(c) of the Investment Company Act of 1940 regarding the possibility of share repurchases over the following six months. The repurchase and dividends program may be suspended, terminated or modified at any time for any reason. The program does not obligate American Capital to acquire any specific number of shares, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases.

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 $52 billion in assets under management and eight offices in the U.S., Europe and Asia. American Capital and European Capital will consider investment opportunities from $10 million to $300 million. For further information, please refer to http://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.

CONTACT:
Investors - (301) 951-5917

SOURCE: American Capital, Ltd.