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American Capital Invests $63 Million in Buyout of Primrose

Bethesda, MD - April 12, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $63 million in the buyout of Primrose Holdings Inc., a leading franchisor of early childhood education and high-quality child care in the upscale demographic segment of the child care industry. American Capital's investment takes the form of senior and junior subordinated debt and convertible preferred and common equity. Wachovia Corporation (NYSE: WB) and CIT Group Inc. (NYSE: CIT) are investing in a senior term loan. CIT is also providing a revolving credit facility. Post close, American Capital owns 85% of Primrose, on a fully diluted basis, with Primrose's management team owning the remainder. More...