BETHESDA, Md., Aug. 8 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. ("American Capital") announced today that ACAS Business Loan Trust 2007-2, a wholly owned subsidiary of American Capital, has issued $338 million of investment grade class A and B notes backed by $500 million of senior and subordinated business loans originated and acquired by American Capital. Citigroup Global Markets Inc. and JP Morgan Securities Inc. acted as co-lead managers and joint bookrunners of the securities. Banc of America Securities LLC, Credit Suisse Securities (USA) Inc., HVB Capital Markets, Inc., HSBC Bank USA, National Association and Wachovia Capital Markets LLC were co-managers. The blended pricing of the offered notes, excluding fees, is LIBOR plus 47 basis points. American Capital retained all the class C through F notes in the securitization.
"American Capital's continued access to low cost capital through various means of fundraising highlights our asset quality and the strength of business model. Over the past 3 months we have raised $2.5 billion of new debt and equity capital," said Tom McHale, Senior Vice President, Finance. "Our diverse capital resources provide competitive advantages in the current credit environment."
"Our tenth term securitization comes at a time when the market is placing a premium on liquidity and wary of credit quality in general. The execution of this well-priced term securitization is a result of the strength of our assets and the performance of our previous nine balance sheet securitizations, five of which have been completely repaid," said John Hooker, Vice President, Debt Capital Markets.
The private placement note offering to investors consists of the following offered notes:
Class Of Amount Rating Spread Over LIBOR Expected
Note Sold Sold S&P/Moody's/Fitch (Basis Points) Weighted
($Millions) Average
Life
A $300.5 AAA/Aaa/AAA 40 2.99 years
B $37.5 AA/Aa2/AA 100 3.75 years
Total &
Weighted
Average $338 47 3.07 years
ABOUT AMERICAN CAPITAL
American Capital is the only alternative asset management company that is a member of the S&P 500. With $16 billion in assets under management(1), American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and euro 5 million to euro 500 million per company in Europe.
As of July 31, 2007, American Capital shareholders have enjoyed a total return of 505% since the Company's IPO-an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $1.7 billion in dividends and paid or declared $25.16 dividends per share since going public in August 1997 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/ or http://www.europeancapital.com/.
(1) Includes American Capital's investment in externally managed funds.
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.
