Bethesda, MD - May 26, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has been repaid its $40 million senior and subordinated debt investments in ACE Cash Express Inc. (Nasdaq: AACE), realizing a 24% compounded annual rate of return. ACE, one of the nation's largest owners, operators and franchisors of retail financial services stores, has used proceeds from its recent successful follow-on public stock offering to repay the American Capital notes. The 24% return includes the interest and fees received over the life of American Capital's investment in the company. In March 2003, American Capital invested $40 million to recapitalize ACE's term loans and senior notes.
For more information about the ACE transaction, go to:
http://www.ACAS.com/our_portfolio/companies/company.cfm?p_comp=94
For a chart detailing American Capital's capital gains and losses, go to
http://www.ACAS.com/investor_relations/capital_gains.cfm
For a chart listing American Capital's exited portfolio companies, go to
http://www.ACAS.com/our_portfolio/exited_companies.cfm
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.
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 $14.52 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $3 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, Senior Vice President, Business Development, at (800) 248-9340, or visit our www.AmericanCapital.com.
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.
