BETHESDA, Md., Sept. 15, 2011 /PRNewswire/ -- American Capital,
Ltd. ("American Capital") (Nasdaq: ACAS) announced today that since
early August, it has made open market purchases of 9.1 million
shares of American Capital common stock at an average price of
$8.21 per share, totaling
$75.0 million. American
Capital also announced that its Board of Directors has adopted a
program that may provide for additional repurchases of shares or
dividend payments through December 31,
2012.
With regard to the repurchases completed to date, American
Capital repurchased 4.9 million shares at an average price of
$8.12 per share in August, totaling
$39.8 million, and 4.23 million
shares at an average price of $8.31
per share in September through today, totaling $35.2 million.
Under the newly adopted program, quarterly, American Capital
will consider setting an amount to be utilized for stock
repurchases or dividends. Generally, the amount may be
utilized for repurchases if the price of American Capital's common
stock represents a discount to the net asset value of its shares,
and the amount may be utilized for the payment of cash dividends if
the price of American Capital's common stock represents a premium
to the net asset value of its shares. In determining the
quarterly amount, the Board of Directors will be guided by American
Capital's net cash provided by operating activities in the
preceding quarter. As appropriate, the Board of Directors
will also consider cash and cash equivalents on hand, debt service
considerations, investment plans, its forecast of financial
liquidity and economic conditions, operational issues and the
current trading price of American Capital's common stock.
"American Capital has come a long way over the past several
years and today has the financial capability and results to
increase shareholder value through accretive stock repurchases or
dividends," said Malon Wilkus,
Chairman and CEO of American Capital. "The stock repurchases
made to date have had a positive impact on shareholder value.
Though we may be facing headwinds in the current economy, we
are optimistic that our portfolio companies, having been tested
through the last recession, will perform well in the future."
American Capital will soon mail to all stockholders the notice
required by Section 23(c) of the Investment Company Act of 1940
regarding the possibility of share repurchases over the following
six months. The repurchase and dividends program may be suspended,
terminated or modified at any time for any reason. The
program does not obligate American Capital to acquire any specific
number of shares, and all repurchases will be made in accordance
with SEC Rule 10b-18, which sets certain restrictions on the
method, timing, price and volume of stock repurchases.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. 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 has $52
billion in assets under management and eight offices in the
U.S., Europe and Asia. American Capital and European
Capital will consider investment opportunities from $10 million to $300 million. For further
information, please refer to www.AmericanCapital.com.
Performance data quoted above represents past performance of
American Capital. Past performance does not guarantee future
results and the investment return and principal value of an
investment in American Capital will likely fluctuate.
Consequently, an investor's shares, when sold, may be worth
more or less than their original cost. Additionally, American
Capital's current performance may be lower or higher than the
performance data quoted above.
This press release contains forward-looking statements.
The statements regarding expected results of 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 American Capital has
made investments.
CONTACT:
Investors - (301) 951-5917
SOURCE American Capital, Ltd.