Bethesda, MD - January 6, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS)announced today that it invested $37 million to sponsor the combination of its portfolio company Dixie Trucking Company Inc. with Service Transport Inc, under a new holding company, STACAS Holdings Inc. American Capital's investment takes the form of a bridge senior facility, senior and junior secured subordinated notes, and preferred equity. American Capital's senior loan is anticipated to be repaid from a third party lender shortly. American Capital will be the majority shareholder in the combined entity.
"American Capital met it's investment goals for 2002, making $573 million of new investments and commitments. We invested and committed a record $179 million during the fourth quarter, and are well positioned to achieve our investment goals in 2003," said American Capital Chief Operating Officer Ira Wagner. "Furthermore, the merger of Service Transport and Dixie Trucking continues to illustrate our ability to create value in our portfolio companies."
For more information about American Capital's portfolio click here.
American Capital is backing the merger of two well-managed, regional
less-than-truckload (LTL) carriers near a low point in the trucking
cycle. The combination will create a company that will provide overnight
and second-day ground transportation services within twelve contiguous
states throughout the Midwest and Southeast. American Capital is
pleased to expand our partnership with Jim Crisp, Dixie's current
CEO and the former President of Saia Motor Freight.
American Capital first invested in Dixie Trucking in August 1999 to support a management buyout. Service Transport was founded in 1979 and has grown to become one of the fifty largest regional LTL carriers in the U.S. The combined companies, to be based in Cookeville, TN, will have over 900 employees and serve thousands of customers representing a broad array of industries.
"The transaction is a win-win for Service Transport and Dixie's customers. The merger will give Service Transport's customers access to the Carolinas and Dixie's customers access to ten states, including Michigan, Ohio, Tennessee, Georgia and Mississippi," said Dixie CEO Jim Crisp, who assumes leadership of the new company. "With American Capital's backing, we have created a far more valuable company, becoming a significant player in our industry."
For more information about the combined companies click here.
You Can't Restate a Dividend!
American Capital paid or declared $2.55 in regular dividends in 2002, a 15% increase over 2001, and after including the bonus dividend, has paid or declared a total of $2.57 in dividends in 2002. American Capital has paid or declared a total of $10.33 in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $1.5 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private middle-market and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund 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.
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.
