PIPER JAFFRAY FINANCIAL CONFERENCE, NEW YORK, Nov. 19 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) is a buyout and specialty finance company with capital resources exceeding $175 million. It invests $2 to $20 million of senior debt, subordinated debt and/or equity in companies for growth, acquisitions, employee buyouts, management buyouts, liquidity and restructurings. It also provides financial advisory and M&A services through an investment banking subsidiary.
Founded in 1985, American Capital completed an IPO in August 1997, raising $150 million in equity capital. As of November 1998, it has deployed and committed $138 million of this capital, offering innovative and flexible one- stop financing to middle-market companies that are typically underserved by banks and other financial institutions. American Capital's ability to become a long-term financial partner, take a minority ownership position in its transactions, and use the benefit of ESOP strategies sets it apart from its peers. The company is the leading firm funding ESOP companies.
Since the IPO, American Capital's progress has been rapid. From the fourth quarter of 1997 to the third quarter of 1998, investments have grown from $20.6 to $120.7 million and revenue from interest and fees increased from $2.8 to $4.8 million. During the same period, dividends per share increased from $0.21 to $0.37.
American Capital's portfolio companies are diversified, representing a wide range of industries and many leaders in their respective markets. Transactions with American Capital financing, primarily in the form of subordinated debt and equity, have included buyouts, recapitalizations, and growth financings. The performance of the portfolio companies has been strong and the quality of the investments is high. At the end of the third quarter, the average debt/EBITDA ratio of portfolio companies was 3.9, with an average interest coverage ratio of 2.4 and average debt service coverage of 2.0. All American Capital investments have received a loan grading of 3 or 4 (good or excellent) based on American Capital's internal loan grading program.
American Capital carefully reviews potential transactions. All investments must be unanimously supported by a three-member investment committee and approved by the company's Board of Directors. American Capital has 29 employees in 7 offices throughout the United States.
For more information contact Malon Wilkus at 301-951-6122 or John Hoffmire, Vice President of Sales and Marketing at 781-862-4447 or visit its Web site at www.American-Capital.com.
