BETHESDA, Md., American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today its financing of the acquisition of the municipal solid waste business of Jack Gray Transportation, Inc. ("JGT") by Specialty Transportation Services, Inc. ("STS"). American Capital purchased from STS $8,000,000 in Senior and Junior Subordinated Notes with warrants and $500,000 in Common Stock.
STS is a unique firm, operating a national network of solid waste hauling services for both municipalities and commercial clients.� The company has terminal operations in California, Washington, Oregon, Arizona, Tennessee, New York, North and South Carolina. � This business was developed over the last fifteen years under the leadership of Gary Goldberg, Executive Vice President of JGT, growing from one initial contract in Long Island, New York to a business with combined revenues in excess of $30 Million.
Under an agreement with JGT, Mr. Goldberg had the opportunity to acquire the company.� Mr. Goldberg was joined by Aasche Transportation Services (NASDAQ Symbol: "ASHE") to participate as equity investors.� Aasche is an interstate trucking company, specializing in temperature controlled transport.� Joining ACAS in the financing, Mellon Bank provided the Senior Term and Revolving Credit for the Company.
Gary Goldberg said "This is a special day for me!� After building this business over 15 years I now have the ability to take advantage of opportunities that JGT chose not to pursue.� STS has tremendous potential for growth that I and my management team intend to capitalize on.� I am grateful that American Capital saw the same potential in the business as we did."
Joseph Bute, Principal of American Capital, said: "This transaction demonstrates the financial strength of ACAS.� We were able to fund all of the subordinated debt for the company and participate as an equity investor as well.� In addition, we responded rapidly to STS's need for a strong financial partner.� After the buyer encountered difficulties in arranging the financing immediately prior to the expiration date of the purchase agreement, ACAS committed to fund the entire transaction, including senior debt, subordinated debt and equity, to insure that the deal would not be lost.� By stepping forward at a critical juncture in the negotiations, the company was able to complete its equity funding efforts and close the transaction."
With this transaction, American Capital has invested a total of $33.1 million since its initial public offering in August of 1997.� "Having completed our second financing of 1998, we feel we have an early start on a busy, exciting year. � ACAS is continuing its drive to become a leader in the field of specialty finance for small and medium size businesses," said Malon Wilkus, President of American Capital Strategies.
