Bethesda, MD - January 8, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS)announced today that the company has sold 4.1 million shares of common stock to the public at $22.75 per share for total gross proceeds of approximately $93.3 million. Managing underwriters for the offering were A.G. Edwards & Sons, Inc., BB&T Capital Markets, a division of Scott & Stringfellow, Inc., Legg Mason Wood Walker, Incorporated, and U.S. Bancorp Piper Jaffray Inc. American Capital has granted the underwriters an option to purchase an additional 615,000 shares at $22.75 per share to cover over-allotments.
The net proceeds of the offering will be applied to reduce the borrowings under American Capital's existing revolving credit facility. This will create availability under this facility, which will generally be available for funding future American Capital investments.
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend, 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 is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from A.G. Edwards & Sons, Inc., One North Jefferson, St. Louis, Missouri 63103. 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.
