Bethesda, MD - May 28, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has closed on its previously announced common stock offering and the underwriters exercised their over-allotment option in full. As a result, American Capital sold in the offering a total of 7,475,000 shares of its common stock at $25.71 per share. The total gross proceeds from the offering, including the over-allotment, were approximately $192.2 million.
Citigroup, Wachovia Securities, J.P. Morgan Securities Inc. and UBS Securities LLC were the underwriters. Citigroup acted as book-running manager of the offering.
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.
All shares of common stock will be offered under American Capital's existing shelf registration statement filed with the Securities and Exchange Commission. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of these securities will be made only by means of a prospectus.
Copies of the prospectus may be obtained from Citigroup Global Markets Inc., 140 58th Street, 8th Floor, Brooklyn, New York 11220 (telephone number: 718-765-6732). This press release contains forward-looking statements. The statements regarding American Capital 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, and changes in the conditions of the industries in which American Capital has made investments.
