Management & ESOP Buyouts | Sponsor Finance | Direct Investments
Financing for Growth, Acquisitions, Recapitalizations & Securitizations
Asset Management
Since its August 1997 IPO, American Capital and the funds it manages have invested approximately $32 billion
| Vol. 9 No. 2 | (800) 248-9340 | August 2008 |
Washington, DC
Headquarters
(301) 951-6122
Malon Wilkus
Chairman, Chief Executive Officer
Steven Burge
President, North American Private Finance
John Erickson
President, Structured Finance and Chief Financial Officer
Gordon O'Brien
President, Specialty Finance and Operations
Ira Wagner
President, European Private Finance
Samuel A. Flax
Executive Vice President and General Counsel
Roland Cline
Senior Managing Director
Brian Graff
Senior Managing Director
Darin Winn
Senior Managing Director
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American Capital and its Funds Under Management Invests Approximately $4.8 Billion Year to Date
American Capital Raises $302 Million in March Equity Offering
American Capital Agency Corp. Raises $200 Million in May IPO and $100 Million in Concurrent Private Placement, Invests Approximately $2.5 Billion in Agency Backed Securities
Table of Contents
Investment Activity of American Capital and Its Funds Under Management
($ in millions)
| American Capital and Managed Funds | American Capital | |
| INVESTMENTS | ||
| 2nd Quarter | $3,599 | $918 |
| 2nd Quarter (#) | 37 | 30 |
| Year to Date | $4,800 | $1,800 |
| Year to Date (#) | 68 | 53 |
| REALIZATIONS | ||
| 2nd Quarter | $560 | $470 |
| Year to Date | $1,580 | $1,400 |
Both the dollar amounts and numbers in this chart are estimates. Please refer to the quarterly earnings release, 10Qs and 10Ks for actual information.
Additional Investments for Existing Portfolio Companies
Affordable Care
Additional investment in portfolio company Affordable Care, Inc. to support the acquisition of a management services platform supporting five dental practices from Fields Dental Management LLC and Piedmont Dental Center P.A., a dental care provider with locations in South Carolina.
New Investments – Sponsor Finance
Qioptiq Group
$85 million joint investment with European Capital in Qioptiq Group, a designer, developer and manufacturer of high-precision optical solutions for the defense, medical and industrial markets with offices in Europe, the U.S. and Asia.
BPWest
$68 million to support the acquisition of BPWest, Inc., the holding company for Anchor Drilling Fluids USA, Inc., the nation's largest independent provider of drilling fluids and fluid-handling services for onshore oil and gas drilling.
New Investments – Direct Investments
Core Business Credit
$300 million commitment to Core Business Credit, a newly-formed commercial finance company that will provide asset-based financing to middle market companies nationally.
NextPoint™ Networks
Investment in NextPoint™ Networks, the world's first fully integrated fixed-mobile connectivity platform.
American Capital on Video
We encourage you to visit our Multimedia Video Library
to see recent interviews with members from various investment teams and also to hear more about our company and portfolio.
American Capital Management Presentations
American Capital actively communicates with shareholders, prospective shareholders and analysts regarding the company, its performance and ongoing strategy. For the latest updates from American Capital's management team, including new webcasts and corporate presentations, visit the Investor Relations section of the website or click here.
Capital Raising
American Capital's March 2008 Equity Offering Totals $302 Million
European Capital Renews Multi-Currency Secured Credit Facility
European Capital Obtains €270 Million Unsecured Credit Facility
European Capital Announces Issuance of €267 Million of AAA-Rated Investment Grade Notes
Realizations
American Capital Realizes a Gain of $69 Million in the Second Quarter from its Investment in BPWest; Provides $68 Million to Support Castle Harlan's $250 Million Acquisition of BPWest
Corporate News
American Capital Announces Senior Management Expansion
American Capital Announces the Hiring of New Chicago and West Coast Sponsor Finance Team Leaders
American Capital Hosts Equity Investor Conference and Annual Meeting on May 19; Stockholders Vote to Change Company Name to American Capital, Ltd.
Private Equity International Ranks American Capital One of the World's Largest Private Equity Firms
American Capital Reorganizes Sponsor Finance Group: Opens Boston Office, Reorganizes Northeast and California Offices
Fitch Affirms American Capital's IDR at 'BBB': Outlook Stable
Buyouts Nominates American Capital for Buyout Firm of the Year
New Managed Fund: American Capital Agency Corp. (AGNC)
American Capital Agency Corp. Raises $200 Million in May 2008 IPO and $100 Million in Concurrent Private Placement
American Capital Agency Corp. Declares and Pays $0.31 Dividend
American Capital Agency Corp. Added to Russell 3000
American Capital Agency Corp. Announces Second Quarter Earnings
Charts
Dividends
Investment Value
Capital Raising
American Capital's March 2008 Equity Offering Totals $302 Million
In March, American Capital closed a public offering of 8.7 million shares of its common stock at $36.41 per share. All of the shares were offered directly by American Capital and sold for $302 million in net proceeds. In addition, American Capital granted the underwriters an option to purchase up to an additional 1,305,000 shares of common stock to cover over-allotments to be sold directly by the Company.
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley and Co. Incorporated were the joint book-running managers for the offering. Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities Inc. and UBS Investment Bank were the co-managers for the offering.
For the complete release, click here.
European Capital Renews Multi-Currency Secured Credit Facility
In June, European Capital Limited (LSE: ECAS) and its subsidiaries, European Capital S.A. SICAR and ECAS S.à.r.l. (collectively, "European Capital") renewed European Capital's multi-currency revolving credit facility, denominated in Euros, Pounds Sterling and U.S. Dollars. The renewal of the facility resulted in a commitment of €580 million ($905 million). Wachovia Securities International Ltd. was the lead arranger and sole bookrunner of the facility. The lenders in European Capital's revolving credit facility are Wachovia Bank, N.A., London Branch, Bank of Montreal Ireland p.l.c., Eureka Securitisation plc, an affiliate of Citibank, N.A., London Branch and Alpine Securitization Corp., an affiliate of Credit Suisse. The facility is secured by certain debt investments made by European Capital, has a variable advance rate and a spread of 250 bps.
For the complete press release, click here.
European Capital Obtains €270 Million Unsecured Credit Facility
In February, European Capital Limited (LSE: ECAS) announced that European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital, obtained a three year unsecured subordinated revolving credit facility with an aggregate commitment of $400 million (€270 million) from European Capital's affiliate American Capital, Ltd. American Capital is the lender under the facility.
For the complete press release, click here.
European Capital Announces Issuance of €267 Million of AAA-Rated Investment Grade Notes
Also in February, European Capital Limited (LSE: ECAS) announced that ECAS 2007-1 Loan BV ("ECAS 2007-1 BV"), an entity consolidated by European Capital, had issued €267 million of AAA-rated secured floating rate notes, backed by €457 million in loans originated by European Capital subsidiaries. The notes were rated by Standard & Poors. Affiliates of Deutsche Bank AG acted as the arranger and underwriter.
For the complete press release, click here.
Additional Investments for Existing Portfolio Companies
American Capital Invests in Affordable Care for Add-On Acquisition
In June, American Capital invested in its portfolio company Affordable Care, Inc. to support the acquisition of a management services platform supporting five dental practices from Fields Dental Management LLC and Piedmont Dental Center P.A., a dental care provider with locations in South Carolina. Affordable Care is a dental practice management services company that supports a network of affiliated dental practices providing removable prosthetics and related services. American Capital's investment takes the form of junior and senior subordinated debt.
American Capital first invested in Affordable Care in 2006. Founded in 1975 and based in Kinston, NC, the Affordable Care network is America's largest provider of dentures. The company currently provides dental practice management and on-site dental laboratory services supporting a network of 134 affiliated dental practices operating under the brand of Affordable Dentures. The company operates in 35 states (predominantly east of the Mississippi) with approximately 175 affiliated dentists. The Affordable Care-affiliated practices provide low-cost dentures and same-day service with no appointment necessary.
Piedmont Dental was founded in 1979 and has locations across South Carolina. Piedmont Dental's products and services, which include removable prosthetics, extractions, relines and repairs, closely mirror those offered by the other dental practices affiliated with Affordable Care.
For the complete press release, click here.
Contact Jon Isaacson, Managing Director, Buyouts Group or Sean Eagle, Principal, Buyouts Group at (301) 951-6122.
New Investments – Sponsor Finance
European Capital and American Capital Jointly Invest $85 Million in the Qioptiq Group
In May, European Capital Limited (LSE: ECAS), announced that it invested $57 million in the Qioptiq Group, a leading designer, developer and manufacturer of high-precision optical solutions for the defense, medical and industrial markets. The investment was led by the Paris office of European Capital Financial Services Limited ("European Capital Services") and supported Candover's recapitalization of Qioptiq. European Capital invested mezzanine debt in Qioptiq, which was arranged and underwritten by The Royal Bank of Scotland and Unicredit. In addition to the $57 million investment by European Capital, American Capital invested $28 million in the transaction.
"European Capital successfully teamed up with American Capital to provide this dollar denominated investment," said Ira Wagner, President of European Capital Services. "The ability to fund in Euros, Pounds Sterling and Dollars is another one of European Capital's many competitive advantages."
Founded in 2005 as a spin-off of the high-tech optics division of Thales, Qioptiq is a world leading developer of high precision optical systems. Supported by Candover, Qioptiq expanded its geographical reach and product offering through the acquisition of Linos in 2006, a leading German manufacturer of high precision optics for the European medical and industrial markets, and of Pointsource in 2008, a leading UK-based producer of fiber optic laser solutions used in biomedical and commercial applications. The Company has operations in Europe, Asia and the U.S. and employs over 2,400 people worldwide. Qioptiq's products are used in a broad array of industries including defense, biomedical and industrial solutions. The Company achieved 2007 revenues in excess of $350 million, proforma of the acquisition of Pointsource, completed in 2008.
For the complete press release, click here.
Contact Jean Eichenlaub, Regional Managing Director Southern Europe, European Capital Financial Services, at +33 (0)1 40 68 06 66.
New Investments – Direct Investments
American Capital Commits $300 Million to Core Business Credit
In May, American Capital committed $300 million to Core Business Credit in a newly-formed commercial finance company that will provide asset-based financing to middle market companies nationally. American Capital's investment is in subordinated debt and equity of the company. Core's senior management team members, consisting of Michael Haddad, President and Chief Executive Officer, and Executive Vice Presidents Milton Iskra, Paul Martin and Ken Cichocki, also invested in equity alongside American Capital. In addition, Core has obtained a $125 million senior credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. This makes Core's total committed capitalization in excess of $425 million as of May 19, 2008.
Based in Dallas, Core plans predominately to make asset-based loans secured by accounts receivable, inventory, equipment and owner-occupied real estate. It will also provide warehouse and rediscount loans as well as senior stretch loans to its customers. Core is targeting customers with annual revenues of $35 million to $500 million, at least one fiscal year of operating history, larger syndicated facilities and financing needs of $7.5 million to $30 million.
For the complete press release, click here.
Contact Bob Grunewald, Managing Director, Financial Services Group, at (301) 951-6122.
American Capital Invests in NextPoint™ Networks
In February, American Capital announced that it and its affiliates invested in NextPoint™ Networks, Inc. in January. NextPoint is the result of the merger of NexTone Communications, a leader in software-centric session border controllers (SBCs) and IP session management, and American Capital portfolio company Reef Point Systems, a provider of secure fixed-mobile connectivity solutions. The combined entity leverages NexTone's SBC and Reef Point Systems' fixed-mobile connectivity solutions to create the world's first Integrated Border Gateway (IBG) – a single box providing edge-to-edge solutions to fixed-line and wireless service providers seeking global interconnectivity. American Capital's investment is in preferred equity of the company. American Capital Equity I, LLC and American Capital Equity II, LP, funds managed by affiliates of American Capital, respectively provided 30% and 12% of the American Capital equity investment. One Equity Partners, the private equity arm of JPMorgan Chase (NYSE:JPM), and American Capital led the round of financing with participation from Jersualem Venture Partners, Core Capital Partners, Safeguard Scientifics (NYSE:SFE) and Summerhill Venture Partners.
Since March 2006, American Capital invested $20 million in convertible preferred securities of Reef Point. Reef Point is the leader in fixed-mobile convergence (FMC) border platforms and solutions. Reef Point's Universal Convergence Gateway (UCG) and its associated solution suites enable service providers to deliver secure mobile voice, data and multimedia over a single, scalable platform, interoperating with fixed-line and mobile network technologies, and network operating systems.
Gaithersburg, MD-based NextPoint Networks, formed by the merger of NexTone and Reef Point, delivers global, FMC border platforms and secure interconnectivity solutions. NextPoint's technology platform, products and solution suites will enable mobile and fixed line operators to deliver secure voice, data and multimedia over a scalable platform, interoperating with both fixed-line and mobile network technologies and operating systems. Approximately 550 service providers and enterprises worldwide will use NextPoint's IntelliConnect system to manage technical complexities, optimize business economics, and remove partnership hurdles.
For the complete press release, click here.
Contact Miles Arnone, Managing Director, Technology Group, at (508) 320-9417.
Realizations
American Capital Realizes Gain of $69 Million in the Second Quarter 2008 from its Investment in BPWest; Provides $68 Million to Support Castle Harlan's $250 Million Acquisition of BPWest
In April, American Capital realized a gain of $69 million in the second quarter of 2008 from the sale of its portfolio company BPWest, Inc., the holding company for Anchor Drilling Fluids USA, Inc., to Castle Harlan, Inc. American Capital's inception to date total realized gain on its investment in BPWest is $80 million. Including the investments in BPWest of American Capital's funds under management, the gain totals $123 million over the life of the investment. Including inception to date dividends, cumulative gains and dividend income realized by American Capital and affiliates of American Capital totaled over $139 million over the life of the investment.
Anchor is the nation's largest independent provider of drilling fluids and fluid-handling services for onshore oil and gas drilling. In support of Castle Harlan's acquisition of BPWest, American Capital provided $68 million of financing in the form of senior subordinated notes and senior term loans.
American Capital formed BPWest in 2005 to acquire Anchor Drilling Fluids USA Inc. American Capital invested $21 million in a senior term loan, senior subordinated debt and preferred and common equity of BPWest. In 2006, American Capital invested an additional $39 million in a partial recapitalization of BPWest and to support the acquisition of two separate companies, Toby's Vacuum and Truck Services Inc. and Ozark Mud and Chemical Inc. American Capital has earned a 100% compounded annual rate of return on its investment, including interest, dividends and fees earned over the life of its investment. On its equity only investment, American Capital earned a 198% compounded annual rate of return, including dividends and fees earned over the life of its investment. Including the investments in BPWest of American Capital's funds under management, the combined American Capital group earned a 117% compounded annual rate of return on its investment, including interest, dividends and fees earned over the life of their investments. On the equity only investments, the combined American Capital group earned a 214% compounded annual rate of return, including dividends and fees earned over the life of their investments.
For the complete press release, click here.
For more information about American Capital's original investment in BPWest, click here.
Contact Kevin Kuykendall, Managing Director, Energy Group, at (214) 273-6634 or Chris Carey, Principal, Sponsor Finance Group, at (212) 213-2009.
Corporate News
American Capital Announces Senior Management Expansion
In July, American Capital announced an expansion and realignment of its senior management team, effective August 1. Steven W. Burge will assume the newly established position of President, North American Private Finance, with responsibility for most aspects of the Company's North American buyouts and sponsor finance businesses. Mr. Burge joined the Company in 2007 after an extensive career at leading private equity firms.
In addition, Ira Wagner, American Capital's Executive Vice President and Chief Operating Officer, will become President, European Private Finance and continue as President of European Capital Financial Services Limited, the Company's wholly owned affiliate that manages European Capital Limited (LSE: ECAS). Also, John Erickson, the Company's Executive Vice President and Chief Financial Officer, will become President, Structured Finance and Chief Financial Officer. Gordon O'Brien, Senior Vice President and Managing Director, will become President, Specialty Finance and Operations. Mr. Wagner, Mr. Erickson and Mr. O'Brien will continue with responsibility for several of the Company's investing and asset management areas. Mr. O'Brien will add responsibility for the Company's planned Asian investing activities.
Malon Wilkus, the Company's Chairman and CEO, will continue his existing responsibilities. With the designation of the four new Presidents, he will no longer have the title of President. Senior Vice Presidents and Regional Managing Directors Brian Graff and Darin Winn will become Senior Vice Presidents and Senior Managing Directors and continue to manage most of the Company's North American buyout and sponsor finance investment teams. There will be no significant changes in the titles or responsibilities of the Company's other executive officers.
Mr. Burge, 52, joined American Capital in May 2007. From 1998 through 2006, he was a Partner at Norwest Equity Partners, where he managed the firm's Los Angeles office and was responsible for all aspects of private equity investment activities. Prior to that, he was a co founder and Managing Director of Wells Fargo Equity Capital, where he directed the firm's private equity activities. Before joining Wells Fargo, he was the Managing General Partner of Wedbush Capital Partners, responsible for all private equity investment activity. Earlier in his career, Mr. Burge was in the leverage finance groups of Wells Fargo & Company and Security Pacific Bank.
For the complete press release, click here.
American Capital Announces the Hiring of New Chicago and West Coast Sponsor Finance Team Leaders
In June, American Capital announced that Joseph Romic and Bradley Nii joined the firm to lead the Chicago and West Coast Sponsor Finance practices, respectively. The Sponsor Finance Group is responsible for the firm's debt and minority equity investments in support of private equity sponsors. Mr. Romic's team in Chicago includes senior professionals Jon Leiman, Michael Jordan and Jon Lindberg. The Chicago Sponsor Finance team's geographic responsibility includes Canada and the Midwest (Chicago, Cleveland, Detroit, Kansas City, Milwaukee, Minneapolis and St. Louis). Mr. Nii's team on the West Coast includes senior professionals Natasha Fox, Colin Cropper, Patrick White, Brian Cohen and Mehereen Khan.
Prior to joining American Capital, Mr. Romic was a Director in the Goldman Sachs Specialty Lending Group, where he spent four years originating debt and equity investments in middle market companies. Prior to Goldman Sachs, Mr. Romic was a Senior Vice President in the Global Sponsor Finance Group of General Electric Commercial Finance. He also spent ten years with Heller Financial, a publicly traded diversified commercial finance company, before it was acquired by GE in 2001.
Mr. Romic earned a Masters of Management from the J.L. Kellogg Graduate School of Management at Northwestern University and a Bachelor of Science in Accounting from Illinois Wesleyan University. He is also a Certified Public Accountant.
Prior to joining American Capital, Mr. Nii was a Senior Vice President in the Investment Banking Group at Lehman Brothers based in Los Angeles and focused on covering financial sponsors with a presence on the West Coast. Prior to covering financial sponsors, Mr. Nii was a Vice President in the Mergers and Acquisitions group in New York. While at Lehman Brothers, Mr. Nii was involved in a number of transactions and financings totaling over $100 billion in value in a variety of industry sectors. He was also a Certified Public Accountant with Ernst & Young from 1987 to 1996.
Mr. Nii holds a Bachelors of Science in Accounting from the University of Southern California.
For more information about the Sponsor Finance Group, please click here.
American Capital Hosts Equity Investor Conference and Annual Meeting on May 19; Stockholders Vote to Change Company Name to American Capital, Ltd.
On May 19, American Capital held its 2008 Equity Investor Conference followed by the 2008 Annual Meeting of Stockholders at the New York Palace Hotel in New York City.
Equity research analysts and investors were invited to join American Capital's senior management team and managing directors for an informative discussion on performance and ongoing strategy. As part of the conference, there was a senior management presentation and question and answer session. The conference was followed by American Capital's 2008 Annual Meeting of Stockholders. To view webcasts of the Equity Investor Conference or the Annual Meeting, or to download the presentations, click here.
At the Annual Meeting, stockholders voted to amend and restate the Certificate of Incorporation principally to change the legal name of the Company from "American Capital Strategies, Ltd." to "American Capital, Ltd." The Company was incorporated in Delaware in 1986 as "American Capital Strategies, Ltd." Since then, the Company has become a public company listed on The NASDAQ Global Stock Market, launched the website www.AmericanCapital.com and created the logo of "American Capital." The new shortened name more accurately reflects the name under which American Capital does business and the way the name is currently used in public, and clarifies the identity of the Company.
The change of the Company's name will not affect in any way the validity of currently outstanding stock certificates, nor will it be necessary for the Company's stockholders to surrender or exchange any stock certificates that they currently hold as a result of the name change. In addition, American Capital common stock will continue to be listed on The NASDAQ Global Stock Market under the symbol "ACAS."
More information on the name change and other items discussed at the meeting can be found in the Company's proxy statement available at www.AmericanCapital.com.
For further information or questions, please do not hesitate to contact our Investor Relations Department at 301-951-5917 or IR@AmericanCapital.com.
American Capital Reorganizes Sponsor Finance Group: Opens Boston Office, Reorganizes Northeast and California Offices
In May, American Capital announced the opening of a second office in the Boston area to expand its Sponsor Finance Group's investment activities. Leading the Sponsor Finance Group in Boston is Tim Robinson, Principal. Joining Mr. Robinson in Boston are David Morris as Vice President and Dan Hodges as Associate.
"We believe that there are great opportunities for American Capital to expand our support of private equity firms in the current investment environment. The opening of the Boston office is part of the American Capital Sponsor Finance Group's initiative to expand our coverage of the best private equity firms in the world," said Malon Wilkus, Chairman and Chief Executive Officer of American Capital. "Furthermore, we are making modest adjustments to our operations in response to changing investment environments where there are exceptional investment opportunities in both the U.S. and Europe in every one of our business lines. Overall, we are pleased with how the year is shaping up."
"The opening of the Boston office is part of a reorganization of our Eastern Region Sponsor Finance business, which includes expanding the Sponsor Finance Group in our New York office and the closing of our Philadelphia office," said Ira Wagner, President, European Private Finance. "Similarly, we are reorganizing our Western Region Sponsor Finance business by consolidating our San Francisco office into our Los Angeles and Palo Alto offices. We will now have over 240 investment professionals and approximately 600 total employees."
Mr. Robinson joins American Capital from BancBoston Capital where he was a Managing Director. While at BancBoston Capital, Mr. Robinson was responsible for originating, managing and divesting a diverse portfolio of private equity investments. Mr. Robinson received a B.A. in American Studies from Trinity College.
Mr. Morris joins American Capital from Citizens Capital Inc., where he was a Managing Director responsible for originating and managing mezzanine and equity investments. Before Citizens Capital, he was a strategy consultant for Mainspring Communications and also worked for BankBoston. Mr. Morris earned a B.S. in Marketing from Babson College and an M.B.A. from the F.W. Olin Graduate School of Business at Babson College.
Mr. Hodges joins American Capital from Wachovia Securities, where he was an analyst in the Leveraged Finance Group. While at Wachovia, he focused on debt financings for companies in the healthcare, consumer, media and telecommunications sectors. Mr. Hodges received a B.A. in Economics from Duke University.
For more information about the Sponsor Finance Group, please click here.
Private Equity International Names American Capital as One of the World's Largest Private Equity Firms
In May, Private Equity International (PEI) presented its second annual PEI 50, a list that ranks the largest 50 private equity firms in the world. American Capital was listed 15th. The list includes notable private equity firms such as The Carlyle Group, Kohlberg Kravis Roberts and The Blackstone Group. For more information on the ranking, visit the PEI 50 website at http://www.peimedia.com/pei50/.
Fitch Affirms American Capital's IDR at 'BBB': Outlook Stable
In April, Fitch Ratings affirmed American Capital's long-term issuer default rating (IDR) and senior unsecured debt rating at 'BBB' and the outlook remained stable.
For the complete Fitch ratings press release, please click here.
Buyouts Nominates American Capital for Buyout Firm of the Year
In March, Thomson Financial's Buyouts publication presented its annual Deal of the Year Awards. American Capital was one of the five firms nominated for Buyout Firm of the Year. However, the award went to The Blackstone Group. The annual awards ceremony includes awards for: Buyout Firm of the Year, Mega Market Deal of the Year and Middle Market Firm of the Year Award, among others. For more information on the awards, visit the Buyouts website at http://www.buyoutsnews.com/PDFs/BuyoutsNews/BuyoutsYearbook08.pdf.
New Managed Fund: American Capital Agency Corp. (AGNC)
American Capital Agency Corp. Raises $200 Million in May 2008 IPO and $100 Million in Concurrent Private Placement
In May, American Capital's affiliate American Capital Agency Corp. (Nasdaq: AGNC) completed an initial public offering of 10,000,000 shares of its common stock at $20.00 per share for total gross proceeds of $200 million. American Capital Agency Corp.'s common stock began trading on The NASDAQ Global Market under the symbol "AGNC" on May 15, 2008.
For the complete release, click here.
For more information, please visit the American Capital Agency Corp. website at www.agnc.com.
American Capital Agency Corp. Declares and Pays $0.31 Dividend
In June, American Capital Agency Corp.'s Board of Directors declared a cash dividend of $0.31 per share for the shortened "stub" period from the closing of the Company's IPO and concurrent private placement on May 20, 2008 through June 30, 2008. The second quarter 2008 dividend was paid on July 29, 2008 to common shareholders of record as of July 2, 2008, with an ex-dividend date of June 30, 2008.
"On May 20, 2008, the Company raised over $286 million in net proceeds from its IPO and concurrent private placement," commented Malon Wilkus, Chairman, President and CEO. "Since then, the Company has invested these net proceeds, along with proceeds from borrowings under repurchase agreements with 12 global financial institutions, in approximately $2.5 billion of agency securities. On average, the portfolio was deployed for approximately 27 days during the stub period. With the successful deployment of our capital, we are pleased to be in a position to declare our inaugural dividend of $0.31 per share and expect that this will be the first of many attractive dividends for our shareholders for years to come."
For the complete release, click here.
American Capital Agency Corp. Added to Russell 3000
American Capital Agency Corp. was added to Russell Investments' Russell 3000 Index at the close of the market on Friday, June 27, 2008, when Russell reconstituted its family of indexes for 2008. The Russell 3000 Index measures the performance of the 3,000 largest public companies listed on U.S. stock exchanges, based on total market capitalization, which represents approximately 98% of the investable U.S. equity market, according to Russell. More detailed information can be found on the website of Russell Investments at www.russell.com.
"We are pleased to be included in the Russell 3000 Index, following our initial public offering just last month," said John Erickson, Chief Financial Officer. "We believe our inclusion in the Index will attract a wider investor audience."
American Capital Agency Corp. Announces Second Quarter Earnings
On July 29, American Capital Agency Corp. announced its second quarter earnings. On July 30, the Company held its quarterly shareholder call. .
For the complete second quarter earnings release, click here.
To listen to the reply of the shareholder call or to view the shareholder call slide presentation, click here.
Charts
Dividends
Investment Value
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This newsletter contains forward-looking statements. The statements regarding expected results of American Capital or any of its affiliates 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, national and international economic conditions, and changes in the conditions of the industries in which American Capital or such affiliate has made investments. This newsletter is neither an offer to sell nor a solicitation of an offer to buy shares of common stock of American Capital or any of the other companies mentioned herein. The offering of securities can be made only by means of a prospectus and a related prospectus supplement.
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