Bethesda, MD - June 20, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has invested in a company formed by KRG Capital Partners L.L.C. to purchase Trinity Hospice L..L.C., one of the largest providers of hospice care in the United States. American Capital's investment takes the form of a revolving credit facilty, senior secured notes, and preferred and common equity.
"This is American Capital's eleventh new portfolio company investment of 2002," said Chief Operating Officer Ira Wagner. "We are pleased to be working with KRG again, and to be investing in a company that provides such a valuable service to the community."
American Capital has invested approximately $500 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
Trinity was formed in 1998 to provide physical, emotional and spiritual care to terminally ill patients. Based in Tulsa, the company operates in Oklahoma, Louisiana, Missouri, Mississippi, Arizona, Kansas and Pennsylvania.
In contrast to traditional medical care, which is "curative" in nature, hospices focus on "palliative" care, which attempts to manage a patient's physical pain caused by disease in addition to addressing the psychosocial and spiritual needs of both patients and their families. Hospice care is provided through an interdisciplinary team. Medicinal services are provided by the hospice medical director (physician), nurses and home health aides; emotional services are provided by social workers and community volunteers; spiritual services are provided by the chaplain. Trinity does not own or operate healthcare facilities, but rather focuses its resources on providing services to patients primarily in their own residences, or in assisted living facilities or third-party nursing homes where the patient is living.
"American Capital's financing will provide Trinity with growth capital to expand its business in both its existing facilities as well as new markets." said Kevin Webb, CEO of Trinity. "We look forward to our partnership with American Capital and KRG."
Click here for more information about the services that Trinity offers its patients.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations. The Company generally invests from $5 million to $35 million. The Company has paid and declared $8.98 per share in dividends since going public in 1997.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.This press release contains forward-looking statements. 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.
