BETHESDA, Md., August 9 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced the successful completion of its first secondary offering, selling 5,000,000 shares of common stock to the public at $17 per share. With this offering, American Capital has raised more than $210 million in capital resources in a little over four months, including the $125 million credit facility provided by First Union National Bank.
The company successfully completed this equity offering in a very difficult capital market environment. The S&P 500 has fallen approximately 7.5% since its high on July 19th and the Russell 2000 has fallen approximately 7.7%. "Many offerings have failed to be completed in the current market environment so we are extremely pleased with the support of our shareholders. We believe that our success reflects our track record of delivering results to shareholders, including having paid $2.39 per share in dividends over the past two years," said Malon Wilkus, Chairman and CEO of American Capital.
The offering was underwritten by BancBoston Robertson Stephens Inc., Legg Mason Wood Walker, Incorporated, U.S. Bancorp Piper Jaffray Inc., Ferris, Baker Watts, Incorporated, Friedman, Billings, Ramsey & Co., Inc., J.J.B. Hilliard, W.L. Lyons, Inc. and Scott & Stringfellow, Inc.
John Erickson, Chief Financial Officer, stated, "We are pleased that investors continued to support our growth by participating in this offering. We believe we will be able to substantially reduce dilution from the offering by deploying the capital immediately to repay borrowings under our credit facility. We have expanded our excellent shareholder base and that should result in increased float and liquidity in our stock."
Click here for further information about American Capital and its dividend, currently yielding approximately 10%.
American Capital is a buyout and specialty finance company with capital resources exceeding $360 million. American Capital invests in senior debt, subordinated debt and equity in middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and our flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at (800) 248-9340 or visit the company's website at www.AmericanCapitalOnline.com or its shareholder site at www.ACASOnline.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
