Bethesda, MD - February 23, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today Plastech Engineered Products Inc. has prepaid American Capital's remaining subordinated debt investment, together with accrued interest and fees. Plastech prepaid $20 million of the original $30 million subordinated debt investment in the first quarter of 2003, resulting in a $1.6 million realized gain. In the first quarter of 2004, Plastech has prepaid the remaining $10 million subordinated debt investment, resulting in an additional $0.7 million realized gain. American Capital earned a 27% total return on its $30 million subordinated debt investment, including interest and fees received over the life of American Capital's investment. Plastech's repayment occurred as part of an acquisition and recapitalization. American Capital retains its warrants for common stock representing a 2% diluted ownership of the company.
In November 2001, American Capital invested $30 million in senior subordinated debt in Plastech. Headquartered in Dearborn, MI, Plastech is a privately-held leading Tier I automotive supplier. With annual anticipated sales in excess of $1 billion, Plastech becomes one of the four largest injection molders in North America.
Click here for more information about the Plastech transaction.
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 January 31, 2004, American Capital shareholders have enjoyed a total return of 273% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has declared a total of $13.82 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 investor in and sponsor of 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.
