BETHESDA, Md., Sept. 6,
2012 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS)
("American Capital") announced today that an affiliate, ACAS CLO
2012-1, Ltd. (the "CLO"), has closed on the sale of $362 million of collateralized loan obligation
bonds. The CLO is externally managed by American Capital
Asset Management, LLC ("American Capital Asset Management"), a
subsidiary of a wholly-owned portfolio company of American Capital,
for an annual management fee of 42 basis points of total
assets.
The CLO has primarily invested the proceeds of the bonds in
broadly syndicated senior secured commercial loans purchased in the
market.
"The CLO continues a long history by American Capital and its
affiliates of issuances and investments in CLOs," said Mark Pelletier, American Capital Managing
Director, CDO and CLO Group. "We are pleased to have
completed this transaction in challenging market conditions and
believe our success is the result of the strong performance of our
prior transactions. CLO investors have become extremely
focused on manager performance and we believe our record will help
us raise additional CLOs even if some managers are shut out of the
market. We look forward to continuing to perform for our
investors."
"Launching the CLO, with its associated recurring management
fees, is another important development in the growth of American
Capital's asset management business," said Malon Wilkus, American Capital Chairman and CEO.
"With the addition of this fund, American Capital now manages
approximately $17 billion of assets,
including assets on its balance sheet and fee earning assets under
management by affiliated managers, with over $100 billion of total assets under management,
including levered assets."
The bonds sold by the CLO included AAA(sf) through BB-(sf) rated
tranches, and a non‑rated equity tranche of subordinated
notes. American Capital purchased $29.9 million of the non‑rated equity
tranche of subordinated notes, with third party investors
purchasing the remaining $12.8 million.
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Capital
Structure
|
|
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|
|
|
|
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|
|
|
Tranche
|
% of
Total Capital
|
Principal Amount ($)
|
Moody's
|
S&P
|
Spread
|
|
Class
A-1
|
57.56%
|
208,500,000
|
Aaa
|
AAA
|
L+1.52%
|
|
Class
A-2
|
2.76%
|
10,000,000
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Aaa
|
AAA
|
2.42%
|
|
Class
B
|
13.25%
|
48,000,000
|
N/A
|
AA
|
L+2.80%
|
|
Class
C
|
5.38%
|
19,500,000
|
N/A
|
A
|
L+3.60%
|
|
Class
D
|
4.69%
|
17,000,000
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N/A
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BBB
|
L+4.85%
|
|
Class
E
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4.56%
|
16,500,000
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N/A
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BB-
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L+6.00%
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Subordinated Notes
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11.80%
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42,730,000
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N/A
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N/A
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N/A
|
|
100%
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$362,230,000
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|
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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. American
Capital manages
$17 billion of
assets, including assets on its balance sheet and fee earning
assets under management by affiliated managers, with
$100 billion of total assets under management
(including levered assets). From its seven offices in the
U.S. and
Europe, American Capital
and its affiliate, European Capital, will consider investment
opportunities from
$10 million to $500
million. For further information, please refer to
www.AmericanCapital.com.
This press release contains forward-looking information and
statements. Forward-looking statements give our current
expectations and projections relating to the Company's financial
condition, results of operations, plans, objectives, future
performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to
historical or current facts. These statements may include words
such as "anticipate," "estimate," "expect," "project," "plan,"
"intend," "believe," "confident," "may," "should," "can have,"
"likely," "future" and other words and terms of similar meaning in
connection with any discussion of the timing or nature of future
operating or financial performance or other events. Forward looking
statements are not guarantees of performance or results, and
involve known and unknown risks, uncertainties (some of which are
beyond the Company's control), assumptions and other factors that
may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. Should one or
more of these risks or uncertainties materialize, the Company's
actual results may vary in material respects from those projected
in any forward-looking statements. A detailed discussion of these
and other factors that may affect future results is contained in
our filings with the U.S. Securities and Exchange Commission.
Any forward-looking statement made by the Company in this
press release speaks only as of the date on which it is made. The
Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by
law.
Contact:
Investor Relations - (301) 951-5917
SOURCE American Capital, Ltd.