BETHESDA, Md., July 28 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today that ACAS Business Loan Trust 2006-1, a wholly owned, consolidated subsidiary of American Capital, has issued $436 million of investment grade notes backed by up to $500 million of senior and subordinated business loans originated by American Capital. Wachovia Capital Markets, LLC acted as the co-lead manager, structuring agent and initial purchaser of the securities. Citigroup Global Markets Inc. was also the co-lead manager and initial purchaser. Banc of America Securities LLC, BMO Capital Markets Corp., Credit Suisse Securities (USA) Inc., Dresdner Kleinwort Wasserstein Securities LLC and WestLB AG, London Branch were co- managers and initial purchasers. The blended pricing of the offered notes, excluding fees, is LIBOR plus 39 basis points.
The private placement note offering to investors consists of the following offered notes:
Expected Rating Spread Over Weighted Class Of Note Amount S&P/Moody's/ LIBOR Average ($Millions) Fitch (Basis Points) Life A 291 AAA/Aaa/AAA 23 4.9 years B 37 AA/Aa2/AA 36 5.4 years C 72.5 A/A2/A 65 5.6 years D 35.5 BBB/Baa2/BBB 125 5.8 years ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of $8.9 billion. 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 up to $350 million per company.
As of June 30, 2006, American Capital shareholders have enjoyed a total return of 398% since the Company's IPO -- an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of approximately $1.2 billion in dividends and paid $20.73 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 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 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.
