Bethesda, MD - May 3, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has realized a $4 million gain on the repayment of its $18.75 million senior subordinated debt investment in Atlantech International Inc. American Capital retains its preferred equity, common equity and warrant investments totaling approximately 7% diluted ownership in Atlantech. Based on the most recent quarterly valuation of its equity investments in Atlantech, American Capital has earned a total return of 20% on its total investment. The repayment occurred as part of a debt refinancing led by an existing senior lender.
In December 2000, American Capital invested $19.75 million in support of the acquisition of Atlantech by KRG Capital Partners. Atlantech is a holding company for The Tensar Corporation, the largest manufacturer of polymeric earthwork geogrid reinforcement products and systems in the world. Geogrids permit cheaper, faster and more durable construction of transportation and environmental infrastructure projects, including roadways, parking lots, retaining walls and coastal protection systems. Atlantech packages these products with valued-added engineering services to provide complete solutions for its clients. Tensar's customers include municipal, county and state departments of transportation and environmental regulatory agencies, as well as customers from the commercial and industrial sectors. For more information about American Capital's investment click here.
Through the first quarter of 2004, American Capital enjoyed a 14% compounded annual return on 59 announced exits and repayments of senior debt, subordinated debt and equity, totaling $708 million since its August 1997 IPO. In the same period, American Capital exited or received prepayments totaling 25% of all announced investments made since its 1997 IPO. Thirty-one percent of these exits and prepayments were from portfolio companies that had at one time been either a loan grade 1 or 2 in its four point loan grading system, with 1 being the lowest loan grade. From its 1997 IPO through the first quarter of 2004, American Capital's annual rate of net realized loss on its investments was 1% of assets based on American Capital's cash investments less its cash exits and repayments including the cost basis of its cash investments at period end.
For a chart detailing American Capital capital gains and losses click here.
For a chart listing American Capital's exited portfolio companies click here.
As of April 30, 2004, American Capital shareholders have enjoyed a total return of 213% since the Company's IPO - an annualized return of 19%, assuming reinvestment of dividends. American Capital has declared a total of $13.82 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.7 billion. American Capital is an investor in and sponsor of 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.
KRG Capital is a private equity firm located in Denver, CO that manages in excess of $800 million. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. KRG seeks investment opportunities where the KRG professionals can work in concert with the owners and operating managers who are committed to expanding their companies and becoming industry leaders.
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.
