Bethesda, MD - January 22, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that its has realized a $6 million gain by completely exiting its investment in California Pellet Mill, the world's leading supplier of process machinery for the animal feed and oilseed processing industries. The exit resulted from the sale of the company on December 31, 2003. American Capital received total proceeds of $30 million upon the exit, earning a 52% compounded annual rate of return on its investment in a senior term loan, senior subordinated notes and 10% equity interest. The 52% return includes the realized gain and the interest and fees received over the life of American Capital's investment in the company. The sale proceeds recognized by American Capital include proceeds to be held in escrow to secure standard representations and warranties of the sale of approximately $0.5 million. The amount realized by American Capital exceeded the third quarter 2003 valuation of the investment by $2.7 million.
In February 2003, American Capital invested $24.3 million to support The Compass Group's recapitalization of California Pellet Mill.
For more information about the transaction click here.
"We are delighted to have supported both The Compass Group and California Pellet Mill in a transaction that allowed the company to pursue new opportunities while it continued to provide customers with the best products to meet their animal feed and soybean oil equipment needs," said American Capital Principal Ken Jones.
For a chart detailing American Capital capital gains and losses click here.
For a chart listing American Capital's exited portfolio companies click here.
As of December 31, 2003, American Capital shareholders have enjoyed a total return of 247% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $13.12 per share in dividends since its August 1997 IPO.
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.
