BETHESDA, Md., Nov. 2 /PRNewswire/ -- American Capital (Nasdaq:ACAS) announced today that it has obtained a credit facility from LaSalle National Bank, a subsidiary of ABN AMRO, the eight largest bank in the world. LaSalle has committed to fund the initial $25 million under the facility and will be the agent bank for a total facility of $50 million, syndicated on a best efforts basis as
American Capital's credit needs increase.
American Capital Chief Financial Officer John Erickson said, ``American Capital currently has $31 million in cash and no debt on our balance sheet. After reviewing numerous alternatives, we concluded that the LaSalle credit facility would best enable us to execute our business plan. LaSalle offered a commitment on favorable terms during this period of uncertainty in the marketplace, and there is substantial interest from banks familiar with our work in joining the syndicate as our assets and credit needs grow in the coming quarters.''
Senior Vice President of Commercial Lending at LaSalle, Michael Burton commented, ``We have worked with American Capital for many years and have provided senior financing to a number of its portfolio companies. We continue to be impressed with the quality of American Capital's investments and are very pleased to be part of their future growth.''
American Capital CEO Malon Wilkus said, ``As banks have become more conservative in their lending practices over the past year and the public capital markets are largely closed to middle market companies, the number and quality of American Capital's opportunities have increased. This credit facility positions American Capital to continue meeting the financial needs of middle market companies. We have seen an increased volume of interest in American Capital by management and ESOP buyout groups, companies seeking growth and acquisition financing, and we are well positioned to meet that demand.''
Last week, American Capital announced that its Board of Directors declared a fourth quarter dividend of $0.37 per share. The dividend is a 16% increase over the previous quarter and a 76% increase over the prior year. 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 has offices in Bethesda, Maryland: New York City; San Francisco; Pittsburgh; Boston; Dallas; and Chicago.
American Capital is a buyout and specialty finance company with capital resources exceeding $175 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 restructurings. 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 shareholder 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 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, or changes in the conditions of the industries in which American Capital has made investments.
