BETHESDA, Md., Dec. 21 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that its Board of Directors has declared a dividend on its common stock of $0.11 per share payable on January 26, 1999, to shareholders of record as of December 31, 1998.
John Erickson, American Capital CFO commented, "American Capital's tax status as a RIC requires that the Company declare a dividend to distribute 98% of its taxable income by December 31 each year in order to avoid paying an excise tax. The company estimates that the $0.11 per share bonus dividend is sufficient to prevent the company from paying the excise tax."
American Capital has paid four quarterly dividends in 1998 as set forth below. This extra or bonus dividend brings the total dividend in 1998 to $1.34 per share.
- 1st Quarter $ 0.25
- 2nd Quarter $ 0.29
- 3rd Quarter $ 0.32
- 4th Quarter $ 0.37
- Bonus $ 0.11
- Total Dividend 1998 $ 1.34
For more information on our dividends, please visit our Shareholder website.
American Capital is a buyout and specialty finance company with capital resources exceeding $190 million. American Capital invests $3 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP 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 website at www.American-Capital.com or its shareholder site at www.ACAS1.com.
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.
