Bethesda, MD - May 27, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has invested $44.5 million in the buyout of Imaging and Sensing Technology Corporation ("IST"), a leading designer and assembler of equipment for use in nuclear power plants. American Capital's investment takes the form of a senior term loan, senior and junior subordinated debt with warrants, redeemable preferred stock and common equity. American Capital is also providing a revolving credit facility. American Capital owns more than 90% of IST on a fully diluted basis.
"This is our third investment in companies that serve the nuclear power industry and we have built a strong knowledge base in this industry," said COO Ira Wagner. "American Capital's industry knowledge and one-stop financing capability set us apart in this investment."
American Capital investments in companies serving the nuclear power industry include PaR Nuclear Holding Company Inc., a leader in the design, assembly, installation and service of large-scale, high-precision robotic systems, and Global Dosimetry Solutions Inc., a provider of radiation dosimetry services. American Capital recently announced a partial exit from its investment in PaR, earning a 38% compounded annual return and realizing a $9.5 million gain.
American Capital has invested over $1.1 billion in the last twelve months and over $300 million year to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.cfm.
"American Capital is backing a strong management team, one that extends down to the unit level," said American Capital Managing Director Robert Klein. "It has been responsible for improving profitability, building IST's impressive backlog and paying down debt, and maintaining the Company's position as the dominant player in its niches. All of these elements, combined with industry dynamics driving significant growth, such as robust, long-term prospects for nuclear power, promise a bright future for IST."
"We look forward to working with IST," said American Capital Managing Director Brian Graff. "The Company supplies government and blue-chip customers and has seen an increase in revenues, order backlog and profitability through a growing pipeline of large contracts and increases in recurring revenues from its installed base."
Incorporated in 1988 and headquartered in Horseheads, New York, IST consists of three core lines of business: the Sensing Systems Group, a leading producer of radiation and thermal detectors and electrical penetrations; the Imaging Systems Group, the global market leader in heat and radiation tolerant closed circuit television cameras for remote inspection; and the Spectral Technologies Group, a manufacturer of specialized lamps used in analytical research instrumentation. IST employs approximately 275 people.
"American Capital's ability to understand our business, build a relationship and match the company with appropriate financing is a critical component of IST's continued growth and development," said IST CEO Don Hartman.
For more information about IST's market leading products, go to
http://www.ACAS.com/news/press_releases/pr/pr.cfm?p_pr=pr20040527a.html
As of April 30, 2004, American Capital shareholders have enjoyed a total return of 213% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $3 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, Senior Vice President, Business Development, at (800) 248-9340, or visit our www.AmericanCapital.com.
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.
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This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.
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