Bethesda, MD - December 22, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that ACAS Business Loan Trust 2003-2, a wholly-owned affiliate of American Capital, has issued approximately $318 million of investment grade notes backed by approximately $397 million of senior and subordinated business loans originated by American Capital. Wachovia Capital Markets, LLC acted as the lead manager, structuring and placement agent and initial purchaser of the securities. BB&T Capital Markets and Harris Nesbitt Corp. were co-managers.
American Capital and subsidiaries have raised $1.1 billion in capital during 2003 including $558 million during the fourth quarter. American Capital's capital resources now exceed $2.5 billion. The private placement is American Capital's fifth term debt securitization. These securitizations are on-balance sheet financings for American Capital.
The private placement note offering to investors consists of $258 million Class A notes, $40 million Class B notes and $20 million Class C notes. American Capital retained $40 million of Class D notes and $40 million of Class E notes. The A, B and C class notes were rated by three rating agencies and the Class D notes were rated by Fitch as follows:
| Class of Note |
S&P |
Moody's |
Fitch |
|
| A |
AAA |
Aaa |
AAA |
| B |
AA |
Aa1 |
AA |
| C |
A |
A1 |
A+ |
| D |
NR |
NR |
BBB |
|
The Class A notes were priced at LIBOR plus 48 basis points; the Class B notes were priced at LIBOR plus 95 basis points; and the Class C notes were priced at LIBOR plus 175 basis points. The all-in-cost of debt, including interest rate swaps and fees, is 4.8%, which is a lower cost than any of American Capital's prior securitizations.
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.5 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private 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 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.
The securities referred to herein have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This announcement does not constitute an offer to sell or the solicitation of any offer to buy any of the securities. This announcement appears as a matter of record only.
