Bethesda, MD - November 12, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that the company has sold 7.6 million shares of common stock to the public at $26.90 per share for total gross proceeds of approximately $204 million. The offering was underwritten by Wachovia Securities, Citigroup, A.G. Edwards & Sons, Inc. and Legg Mason Wood Walker, Incorporated. American Capital has granted the underwriters an option to purchase an additional 1,140,000 shares at $26.90 to cover over-allotments.
Substantially all of the net proceeds of the offering will be applied to reduce the borrowings under American Capital's existing revolving credit facility. This will create availability under this facility, which will generally be available for funding future American Capital investments.
As of October 31, 2003, American Capital shareholders have enjoyed a total return of 207% since the Company's IPO -- an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid or declared a total of $13.06 per share in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2 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.
This press release is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of these securities will be made only by means of a prospectus. Copies of the prospectus supplement may be obtained from Wachovia Securities, 7 Saint Paul Street, 1st Floor, Baltimore, MD 21202. 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.
