Bethesda, MD - January 8, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested $22 million to acquire an interest in Network for Medical Communication and Research LLC, a provider of specialized medical educational programs, research, and content for physicians and other medical personnel. American Capital's investment is in senior debt and senior and junior subordinated debt with warrants, and results in 50.1% ownership of the fully diluted equity. NMCR founders and management participated in the transaction in the form of an investment in the junior subordinated debt, the retention of a subordinated seller note, and the continued ownership of the balance of the fully diluted equity.
"This is American Capital's fifth buyout since June and our first in 2002," said Malon Wilkus, Chairman, President and CEO. "The very difficult financing environment has not changed. American Capital continues to close transactions in this environment because of our ability to fund the entire capital structure of a transaction and our buyout expertise."
American Capital has invested $400 million in middle market companies in the past year.
"NMCR's unique product offerings, highly skilled staff of in-house physicians, ability to assemble leading practitioners in the medical community and excellent reputation add up to an outstanding investment," said American Capital Managing Director and Principal Darin Winn. "NMCR's core competence in oncology provides a solid foundation for growth into other medical specialties."
Based in Atlanta, GA, NMCR was founded in order to deliver educational content to doctors in a concise format, as well as create a forum for doctors to discuss and debate cancer treatment topics and issues for the purpose of improving patient care and enhancing the effectiveness of pharmaceutical research and development activities. According to the pharmaceutical industry, over 400 drugs are in development for cancer alone. Since its founding by two doctors in 1993, the company has achieved a leading reputation for its distinctive methodology centered on disease treatment case studies and unbiased content. In addition to these meetings, NMCR provides a wide range of informational products to medical and health professionals pertaining to developments in the treatment of cancer.
"Since its founding, NMCR has experienced rapid growth. Teaming with American Capital provides us with a financial partner with whom we can work to grow the business both vertically and horizontally," said NMCR CEO Frank Tidikis.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. 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. The Company has paid and declared $7.76 per share in dividends since going public in 1997.
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.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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
