Bethesda, MD - January 9, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS)announced today that it has exited its investment in senior secured debt issued by Numatics Inc., earning a 21% compounded annual return. The exit was at the most recent quarterly valuation of these assets.
This is American Capital's first exit of 2003 and twentieth exit since its August 1997 IPO, bringing total exits to approximately $250 million on $1.6 billion of investments. American Capital has realized a compounded annual return of 18% on all of its exits since its IPO.
For a chart detailing all of American Capital's exits click here.
In November 2001, American Capital invested $31 million in the senior debt of Numatics Inc., a leading manufacturer of pneumatic valves, air filters, regulators, lubricators and motion control products. Numatics used the proceeds of the loan to repay senior bank facilities.
"This loan is a perfect example of banks pulling back from supporting middle market companies, thereby providing American Capital with an excellent investment opportunity. American Capital's underwriting, operating, and valuation capabilities gave us the comfort to step in and support this company during a recessionary period. Despite the troubled manufacturing sector, Numatics has performed according to plan and now has found it possible to repay our loan from internally generated cash flows and third party financing," said Malon Wilkus, Chairman, President and CEO.
"American Capital's increasing frequency of exits signals a seasoning portfolio," said COO Ira Wagner. "In addition, our current substantial transaction backlog provides us with excellent investment opportunities and we anticipate additional exits in 2003."
"We were pleased to assist Numatics and its seasoned management team in meeting its capital structure needs," said American Capital Principal Mark Schindel. "We look forward to working with Numatics again and to similar opportunities in the future."
You Can't Restate a Dividend!
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend declared in 2002, 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.
