ST. PETER PORT, Guernsey,
June 28 /PRNewswire-FirstCall/ --
European Capital Limited ("European Capital") announced today that
it has recently completed the restructuring and partial retirement
of its debt. European Capital's parent company, American
Capital, Ltd., is also announcing today completion of its debt
restructuring.
On 18 December 2009, European
Capital's wholly owned subsidiary ECAS S.a r.l. amended its
existing secured multi-currency credit facility into a term
facility. As of 31 May 2010,
the balance under the facility was euro 272
million. Interest on the borrowings under this amended
facility is charged at Euribor or LIBOR, depending on the currency
of the borrowing, plus a margin of 2.5%, and a Program Fee of
either 5.0% or 7.5%, paid in kind, based on the amount outstanding
under the facility as shown in the table below. This facility
is collateralized by the assets of ECAS S.a r.l. The facility
matures on 31 December 2011, with all
scheduled principal amortization until 30 June 2011
already met.
Program Fee declines as principal is repaid:
Advances outstanding Program fee
Greater than euro 200 million 7.5%
Less than euro 200 million 5.0%
As of 4 March 2010, European
Capital S.A. SICAR, a wholly-owned subsidiary of European Capital,
paid down the remaining euro 85
million balance on its unsecured multi-currency revolving
credit facility. American Capital funded $75 million to European Capital S.A. SICAR as a
bridge loan. As of 31 May 2010,
the amount outstanding under the bridge loan was $15 million.
European Capital now has euro 283
million of secured debt, euro 142
million of unsecured debt and euro
168 million of securitized debt and has approximately
euro 583 million of net asset
value.
"I am pleased to complete the amendment and partial retirement
of European Capital's debt, having delevered our balance sheet by
more than euro 201 million over the
past six months," said Malon Wilkus,
Chairman and Director, European Capital Limited. "This should
enhance shareholder value and provides us with a capital structure
to continue to finance and grow our portfolio companies.
Since November 2009, European
Capital has had euro 224 million in
realizations, which has resulted in significant deleveraging."
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European
equity, mezzanine and senior debt investments with euro 1.2 billion in assets under
management. It is managed by European Capital Financial
Services (Guernsey) Limited ("ECFSG" or the "Investment Manager"),
a wholly-owned affiliate of American Capital, Ltd.
ABOUT AMERICAN CAPITAL
American Capital (Nasdaq: ACAS) is a publicly traded private
equity firm and global asset manager with $14 billion in capital resources under
management. American Capital, both directly and through its
asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate and structured products. Founded in 1986,
American Capital currently has eight offices in the U.S.,
Europe and Asia. For further information, please
refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The
statements regarding expected results of European Capital and/or
American Capital 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, national or international
economic conditions, or changes in the conditions of the industries
in which European Capital and/or American Capital has made
investments.
Contact:
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Tom
McHale, Director,
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+1
(301) 951-6122
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European Capital
Financial Services Limited
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Juan
Carlos Morales Cortes, Operations and Finance Director,
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+44
20 7539 7000
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European Capital
Financial Services Limited
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Info@EuropeanCapital.com
www.EuropeanCapital.com
SOURCE European Capital Limited