Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced its Board of Directors has declared a fourth quarter 1999 dividend of $0.44 per share, payable on December 31, 1999 to record holders as of December 15, 1999. The dividend is a 2% increase over the previous quarter's regular dividend of $0.43 per share.
The dividend is a distribution of ordinary income. American Capital's tax status as a Regulated Investment Company (RIC) requires it to declare a dividend and distribute 98% of ordinary income. American Capital has estimated the fourth quarter results in determining the dividend and will consider declaring an additional dividend before December 31, 1999 if actual results are more favorable and it is necessary to avoid paying an excise tax.
A summary of American Capital's dividend history follows. Click here for further dividend history. American Capital offers a Dividend Reinvestment Plan (DRIP). For more information regarding this Plan, please visit www.ACAS1.com/Divid/reinvest.html or call its Shareholder Relations Department at (301) 841-1359.
The Board of Directors of the Company has elected to retain the capital gains of approximately $924,000 or $0.05 per share realized for the tax year ended September 30, 1999. Pursuant to the Internal Revenue Code, the Company will pay the Federal taxes due on the retained capital gains and it will be treated as a deemed distribution to shareholders of record on September 30, 1999. Those shareholders will also receive a credit on their tax return for the taxes paid by the Company.
Capital gains of $925,000 were realized by ACS Capital Investment Corp. (CIC) during the tax year. CIC's capital gains are excluded from American Capital's distribution requirements since CIC is a taxable subsidiary and taxes are paid by the subsidiary.
Below is a chart showing the historical performance of American Capital stock relative to the S&P 500 since its IPO in August of 1997. For comparisons to other indexes please click here. Click here for information about American Capital's stock performance as of today.
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. Through www.AmericanCapitalOnline.com financing is provided to small and middle market companies in need of capital for receivable and inventory financing, working capital loans, machinery and equipment loans, real estate loans, construction financing, acquisition funding, management buyouts, ESOP financings, liquidity and restructurings.
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.
