BETHESDA, Md., -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today its second financing in the past week. American Capital purchased a $3.89 million Senior Note and a $7 million Senior Subordinated Note with warrants of BIW Connector Systems, L.L.C. ("BIW").
BIW is a manufacturer of specialized electrical connectors primarily for the oil field and aircraft industries. BIW has been acquired by an investor group led by Thurteen Investments, Inc., a Northbrook, Illinois based investment firm.
Ira Wagner, Principal of American Capital, said: "We are pleased that Thurteen Investments selected ACAS. Thurteen is a sophisticated, experienced buyout firm and we are gratified that we were able to respond quickly and competitively to fund the transaction. We are excited about the future prospects of BIW under its new ownership. BIW has an outstanding product line and reputation for quality service worldwide, and we believe they will have continued success in the future. This is a classical buyout financing that is the kind of transaction that ACAS is seeking to make. It is structured correctly; has a good management team with their own money at risk; and the company operates very well in a stable market. We hope to add more loans and investments like BIW to our portfolio."
Thurteen Investments purchased BIW from Draka, USA, a subsidiary of Draka Holding Company, a Netherlands based company. BIW is located in Santa Rosa, CA. BIW markets its products in the U.S. and abroad and is a major provider of electrical connectors to the oil field industry with multiple patents covering a range of proprietary applications.
With this financing, American Capital has invested a total of $20.6 million since its initial public offering in August of this year. This compares favorably to the $17 million projection made by Merrill Ross, an analyst at Friedman, Billings and Ramsey, early this year. "Having completed the financing of this very successful company, we feel we have exceeded our projections for this year." said Malon Wilkus, President of American Capital Strategies. "We believe we are well positioned to have a very successful new year."
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