BETHESDA, Md., Oct. 30 /PRNewswire/ -- American Capital (Nasdaq:ACAS) announced today that its Board of Directors has declared a fourth quarter dividend of $0.37 per share payable on December 31, 1998, to record holders as of December 21, 1998. This dividend is a 16% increase over the previous quarter and a 76% increase over the prior year. The Board expects to meet in December to declare a Bonus Dividend that will have its record date in December.
American Capital CFO John Erickson commented, ``The $0.37 dividend plus our expected Bonus Dividend is in line with our plan and is expected to be a distribution of ordinary income. Our tax status as a RIC requires that we declare a dividend to distribute 98% of our taxable income by December 31 each year in order to avoid paying an excise tax.''
American Capital provides the estimated tax characteristics of its dividend on a quarterly basis and those estimates are subject to recharacterization. This dividend is our ordinary investment dividend. The actual tax characteristics will be reported to each shareholder on form 1099 in January.
Dividends for the prior quarters are as follows:
Year Quarter Dividend Amount % Increase
1998 4Q $0.37 16%
1998 3Q $0.32 10%
1998 2Q $0.29 16%
1998 1Q $0.25 19%
1997 4Q $0.21 -
American Capital is a buyout and specialty finance company with capital resources exceeding $150 million. American Capital invests $1 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, employee buyouts, management buyouts, liquidity and restructuring. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing at 781-862-4447 or visit its Web site or its Shareholders web site.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies, Ltd. are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings and national economic trends.
