Bethesda, MD - August 14, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today its response to certain rumors in the marketplace.
"We have become aware of a rumor circulating that American Capital is planning to file a Form 8-K with the Securities and Exchange Commission containing adverse information. This rumor is not true. The only Form 8-K American Capital plans to file is that which will voluntarily certify our financial statements, to be filed today," said Chairman, President and CEO Malon Wilkus.
American Capital has previously stated in its July 30 earnings release that: "The officers of American Capital are not subject to the Securities and Exchange Commission's Order No. 4-460, which requires the CEO and CFO of certain larger, publicly traded companies to file a statement with the SEC under oath concerning the company's financial statements. However, Messrs. Wilkus and Erickson intend to each voluntarily file such a statement as an attachment to a Form 8-K concurrent with the filing of the Company's second quarter Form 10-Q."
American Capital also announced that it will respond in detail to points raised by certain individuals and institutions, some of whom have indicated they have a short position in American Capital stock. American Capital will post these responses as they are prepared on its website. American Capital will post additional responses as appropriate should new issues arise.
American Capital has prepared the following initial responses.
1. Since American Capital's IPO its cumulative dividends have been paid entirely with cash flows from its portfolio companies.
2. American Capital is required by tax law to inform its shareholders of the tax characteristics of its dividend, including whether any portion of the dividend represents a return of capital. Since its IPO, no portion of the Company's dividends represent a return of capital.
3. Since American Capital's IPO through the second quarter of 2002, the Company has invested $1.263 billion in portfolio companies and has raised $1.138 billion in equity and debt capital. The balance of $125 million has been funded with realized gains or principal repayments from our portfolio companies. All of the principal repayments were as a result of portfolio companies repaying their loans or making normal amortization payments. American Capital presented this information in a 300 slide 2nd quarter of 2002 shareholder presentation available on its website. Review a graphical representation of this information.
American Capital has declared a $.66 per share dividend to be paid on October 1, 2002 to record holders as of September 12, 2002. This dividend is an 18% increase over the third quarter 2001 regular dividend of $0.56 per share. American Capital has paid or declared $9.64 in dividends since its August 1997 IPO at $15.00 per share.
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 private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
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.
