BETHESDA, Md., Dec. 24 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that it has invested $15 million in the form of senior subordinated debt in Centennial Broadcasting, LLC, owner and operator of 7 radio stations, 3 in Las Vegas, 3 in New Orleans and 1 in Vero Beach, Florida. American Capital participated with Wachovia Bank to refinance a senior bridge acquisition loan. In addition to the debt, Centennial is capitalized with approximately $40 million of equity by Gordon Gray, Jr., an experienced media industry investor.
Centennial was formed in 1997 with Allen Shaw joining as President and CEO and Steve Watts joining as Chief Financial Officer. Mr. Shaw has more than thirty years of experience in the radio industry and is credited as being one of the pioneers of the FM format. Centennial has acquired stations that it believes can be improved operationally by its experienced management team and has developed and is implementing a strategic plan to capture increased market share.
American Capital Principal, Ira Wagner commented, "Centennial Broadcasting's management has over 50 years combined experience in the broadcasting industry. Allen Shaw has a proven track record of success in assembling and managing clusters of radio stations in top 50 markets. He combines an ability to attract high quality local market managers with his keen insights in programming and marketing. Together with Steve Watts, they have drawn praise from their peers and competitors throughout the industry. We are pleased to be working with such a seasoned and well respected management team."
Allen Shaw, President and CEO of Centennial Broadcasting stated, "We are pleased to have American Capital as a financial partner in Centennial. We believe we have attracted quality personnel that are capable of increasing the success of our radio stations in both rapidly growing Las Vegas and in New Orleans. Our market managers in these cities, Harry Williams in Las Vegas and Tom Kennedy in New Orleans, have proven themselves in the radio industry to be extremely capable managers. Centennial is pleased that American Capital is tuned in to its needs and supports its overall operating strategies."
Malon Wilkus, CEO of American Capital commented, "I am very pleased with our investment in Centennial. We continue to originate solid opportunities in strong companies. I would also like to note, that our internet development is paying off, Centennial found American Capital via a visit to our Web site. We are pleased to have met Centennial and its representatives on its initial stop along the electronic highway."
American Capital completed two transactions this past week, Centennial and the Constar transaction. And, American Capital just announced a $.11 per share special dividend, that takes American Capital's total dividend for the year to $1.34 per share. Based on December 22, 1998 closing price of $18 per share, American Capital's dividend yield equals 7.4%. Please click here for further information about American Capital's dividends.
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 Web site 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.
