Bethesda, MD - April 3, 2003 - American Capital Strategies Ltd.
(Nasdaq:ACAS)announced today that it has received $47 million in prepayments and exits on three portfolio companies in the first quarter of 2003, realizing $3.8 million in gains. American Capital has completely exited its investment in senior debt and senior subordinated debt with warrants of Lubricating Specialties Company, earning a 19% compounded annual return. American Capital has partially exited its investment in subordinated notes issued by Weston Solutions Inc., earning a cumulative 32% compounded annual return, and has partially exited its subordinated notes issued by Plastech Engineered Products Inc., earning an excellent return. None of these exits involved financing from American Capital.
"Our investments in Lubricating Specialties, Weston and Plastech have produced excellent returns and are our most recent successes in building shareholder value while supporting the capital needs of middle market companies," said Chairman, President and CEO Malon Wilkus. "These companies, through earnings and refinancings, prepaid our investments, demonstrating the strength of our portfolio companies and their ability to perform in a tough economic environment. We continue to anticipate additional exits this year in the near-term and are on track to achieve our guidance of $10 to $30 million of net capital gains this year."
American Capital has exited 24 investments since its August 1997 IPO. American Capital's blended return for all exits since its IPO is 19%. American Capital's annual return to shareholders from its IPO through the end of March is 17%, taking in to account $11.00 of dividends paid during that period.
For a chart detailing all of American Capital's exits click here.
Lubricating Specialties Company is the largest independent manufacturer, blender and marketer of greases and lubricants on the West Coast. American Capital invested $22.7 million in December 2000 in the form of senior debt and senior subordinated debt with warrants. Lubricating Specialties prepaid $7.2 million of the senior notes during 2001 and prepaid the $15.5 million of senior subordinated debt in March 2003. American Capital earned $0.8 million of realized capital gains on its investment in the first quarter of 2003.
For more information about American Capital's Lubricating Specialties investment click here.
American Capital invested $30 million in a going-private acquisition of Weston Solutions in June 2001. That initial investment took the form of senior and junior subordinated notes with warrants and preferred and common equity. In August 2002, Weston prepaid $10 million in junior subordinated notes and in February 2003, they prepaid $10.5 million of the remaining $17 million senior subordinated debt, both made possible by the company's ahead-of-plan performance. American Capital earned $1.4 million of realized capital gains on its investment in the first quarter of 2003. Weston is a leading environment and redevelopment firm, delivering comprehensive solutions to complex problems for industry and government worldwide. American Capital continues to own 31% of the Company.
For more information about Weston click here.
American Capital invested $30 million of senior subordinated notes in Plastech in November 2001. In February 2003, Plastech prepaid $20 million of the senior subordinated notes. American Capital earned $1.6 million of realized capital gains on its investment in the first quarter of 2003. Plastech is a leading designer and manufacturer of interior and exterior automotive components and systems supplying original equipment manufacturers and tier one suppliers in the automotive industry. American Capital continues to own 2% of the Company.
For more information about Plastech click here.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1.7 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 should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
American Capital paid $2.55 in regular dividends in 2002, a 15% increase over 2001, and including the bonus dividend declared in 2002, paid or declared a total of $2.57 in dividends in 2002. American Capital has paid or declared a total of $11.00 per share in dividends since its August 1997 IPO at $15 per share.
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.
