Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS), announced today the successful completion of its second follow-on equity offering, selling 5,500,000 shares of common stock to the public at $20.50 per share for a total of approximately $106 million, net of underwriting fees. With this offering, American Capital now has over $560 million in capital resources, including availability under a $225 million revolving credit facility. The offering brings American Capital's total market capitalization to $487 million.
"In the past month, many firms have postponed their plans to raise equity due to the very difficult capital markets. We are gratified to have the support of our existing stockholders as well as our many new ones. Their support allowed American Capital to be one of the few follow-on equity offerings completed in today's market, " said American Capital Chairman and CEO Malon Wilkus. "American Capital's solid track record of increasing earnings, capital gains and dividends shows our commitment to our investors, who reward us with their continued support."
American Capital has paid a $1.78 per share dividend over the past four quarters, an 18% increase over the prior four quarters.
Click here for more information about the Company's dividend history.
"We will use the proceeds of this offering to pay down our line of credit to approximately $40 million," said CFO John Erickson. "In addition, we believe the new equity will position American Capital to increase and to diversify its debt funding sources.
The offering was underwritten by Robertson Stephens, First Union Securities, Inc., A.G. Edwards & Sons, Inc. and PaineWeber Incorporated.
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Capital.com, Inc., a portfolio company of American Capital Strategies, Ltd. (Nasdaq:ACAS), is a business finance portal where premier financing sources compete to provide receivable and inventory financing, machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing for growth, acquisitions, management buyouts, liquidity, recapitalizations, ESOP transactions and SBA loans. Companies in need of financing or information about financial services should contact Capital.com at info@Capital.com, or call Harry Kelly, vice president, at (646) 935-1100.
This press release is neither an offer to sell nor a solicitation of an offer to buy shares. Such an offer is made by prospectus only. 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.
