BETHESDA, Md., April 1 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has closed the previously announced $100 million credit facility with First Union National Bank, the sixth largest bank in the United States. The facility has a two-year term, is priced at LIBOR plus 250 and is secured by the senior and subordinated debt assets of American Capital.
American Capital Chief Financial Officer John Erickson said, "First Union fully underwrote the $100 million credit facility based on the quality of our assets and the strength of our business plan. We appreciate their commitment to American Capital and look forward to a long-term relationship."
Jim Sigman, Director, Asset Securitization Division of First Union Capital Markets Corporation commented, "As the leading source of capital to companies such as American Capital, we are impressed with the quality of American Capital's investments and its outstanding performance. They have distinguished themselves as a leader in funding middle market companies and we look forward to a growing relationship."
American Capital Chairman and CEO Malon Wilkus noted, "This credit facility expands our capital resources to more than $265 million. It allows American Capital to continue meeting the growing capital requirements of middle market companies. The cost of this facility is entirely in line with our business plan. By entering into this agreement, First Union has expressed its long-term confidence in American Capital and we look forward to working with them as our business grows."
Yesterday, American Capital paid $.41 a share in dividends. Click here for more information on American Capital's dividend history.
American Capital is a buyout and specialty finance company with capital resources exceeding $265 million. American Capital invests $3 to $20 million 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.
American Capital has offices in Bethesda, Maryland, New York City, San Francisco, Chicago, Boston, Pittsburgh and Dallas.
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.
