BETHESDA, Md., May 7, 2014 /PRNewswire/ -- American Capital,
Ltd. ("American Capital" or the "Company") (NASDAQ: ACAS) announced
net operating income ("NOI") before income taxes for the quarter
ended March 31, 2014 of $16
million, or $0.06 per diluted
share. NOI for the quarter ended March 31, 2014 was
$5 million, or $0.02 per diluted share. Net earnings for
the quarter ended March 31, 2014 was $70 million, or $0.25 per diluted share. As of
March 31, 2014, net asset value ("NAV") per share was
$19.29, a 7% annualized, or
$0.32 per share, increase from the
December 31, 2013 NAV per share of $18.97.
Q1 2014 FINANCIAL SUMMARY
- $19.29 NAV per share
- $0.32 per share, or 7%,
annualized increase
- $0.06 NOI before income taxes per
diluted share, or $16 million
- 69% decline from Q4 2013
- $0.02 NOI after income taxes per
diluted share, or $5 million
- $0.09 net realized earnings per
diluted share, or $26 million
- $0.12 per diluted share, or 57%,
decline from Q4 2013
- $0.16 net unrealized appreciation
per diluted share, or $44 million
- $1.02 per diluted share, or
$283 million, improvement over Q4
2013
- $0.25 net earnings per diluted
share, or $70 million
- 6% annual return on average shareholders' equity
- $0.91 per diluted share, or
$252 million, improvement over Q4
2013
- $442 million of cash proceeds
from realizations
- $104 million dividend
distribution from European Capital Limited ("European
Capital")
- Plus, $195 million in proceeds
from American Capital Asset Management, LLC ("ACAM") related to the
repayment of ACAM's initial investment in American Capital Senior
Floating, Ltd. ("ACSF")
- 8.9 million shares of American Capital common stock
repurchased, totaling $137 million
- $15.38 average price per
share
- $0.13 accretive to NAV per
share
- Refinanced $450 million Secured
Term Loan
- Reduced interest rate from LIBOR + 3.00% to LIBOR + 2.75%
- Reduced LIBOR floor from 1.00% to 0.75%
- Extended maturity date by one year to August 2017
American Capital also announced that it has retained Goldman
Sachs as a financial advisor to the Company as it evaluates
separating its investment assets from its asset management
business. As discussed in the Company's Annual Report on Form
10-K filed with the Securities and Exchange Commission for the year
ended December 31, 2013, the Company
is undertaking a process to evaluate its corporate structure to
determine whether that structure and the various legal, regulatory
and accounting regimes under which it operates are the optimum
means for the operation and capitalization of its business.
There is no assurance that this evaluation process will result in
any changes to the Company's corporate structure or operations or
that the Company will provide any further communications regarding
the progress or results of this evaluation process.
"We have made progress evaluating our corporate structure," said
Malon Wilkus, Chairman and Chief
Executive Officer. "In addition to engaging Goldman Sachs,
our Board of Directors suspended our Share Repurchase and Dividend
Program, as we evaluate the capital requirements of our
alternatives."
"Also, subsequent to quarter end, we created ACE III, our fifth
fund or company investing in private equity, which will have
$1.1 billion of assets and committed
capital," continued Mr. Wilkus. "This significant development
in our asset management business expands our base of institutional
investors and provides the opportunity to become their long-term
asset management partner. ACE III increases ACAM's earning
assets under management by 7%, and it will earn fees and
participate in investment gains. It also will generate
liquidity of up to approximately $640
million."
"With our substantial liquidity, excellent Leverage Finance Team
and an unlevered balance sheet, we have begun investing in senior
floating rate loans," said Mr. Wilkus. "Late in the first
quarter, we invested $199 million in
these loans, and have invested approximately $140 million more quarter to date and intend
on investing significantly more during the remaining portion of
this quarter and the year. This will have a positive impact
on earnings starting in the second quarter."
PORTFOLIO VALUATION
For the quarter ended
March 31, 2014, net unrealized appreciation, before income
taxes, totaled $32 million. The
primary components of the net unrealized appreciation were:
- $121 million unrealized
appreciation in American Capital's investment in ACAM, primarily
due to an increase in actual and forecasted growth and multiple
expansion;
- $60 million unrealized
appreciation in American Capital's investment in European Capital,
driven by a reduction in the discount applied to the NAV of
European Capital and net unrealized appreciation of European
Capital's underlying investment portfolio.
- The Company's equity investment in European Capital was valued
at $801 million as of March 31, 2014, or 87% of European Capital's NAV,
compared to $841 million as of
December 31, 2013 or 85% of European
Capital's NAV; partially offset by
- $146 million net unrealized
depreciation from American Capital's private finance portfolio
primarily driven by the ACE III transaction and declining company
specific performance.
"American Capital Asset Management appreciated this quarter by
$121 million," said John Erickson, Chief Financial Officer.
"The appreciation was in part due to an improving outlook for AGNC
and MTGE, the two mortgage REITs ACAM manages, and the creation of
ACE III. Also, ACSF, a business development company managed
by ACAM and focused on senior floating rate loans, successfully
completed its IPO. By quarter end, ACSF had fully invested
the IPO proceeds at attractive risk adjusted yields. Like
AGNC and MTGE, we expect ACSF to perform and grow as it has quite
attractive investment opportunities in a very large market."
PORTFOLIO REALIZATIONS AND PERFORMANCE
In the first
quarter of 2014, $442 million of cash
proceeds were received from realizations of portfolio investments,
including a dividend distribution of $104
million from European Capital and $195 million in proceeds from ACAM related to the
repayment of ACAM's initial investment in ACSF. American
Capital made $321 million in new
committed investments during the quarter, including $199 million of senior floating rate loans.
The weighted average effective interest rate on American
Capital's debt investments as of March 31, 2014 was 9.1%, 90
basis points lower than the December 31, 2013 rate of
10.0%. The primary drivers of the decline in the weighted
average effective interest rate relates to the new investments in
senior floating rate loans at quarter end and new non-accruing
loans as a result of weaker company performance.
As of March 31, 2014, loans with a fair value of
$165 million were on non-accrual,
representing 9.2% of total loans at fair value, compared to
$154 million fair value of
non-accrual loans, or 9.7% of total loans at fair value as of
December 31, 2013. The $11
million increase in the fair value of loans on non-accrual
was generally driven by loans placed on non-accrual status due to
weaker portfolio company performance. Total loans on
non-accrual were valued at 52.4% of cost at the end of the quarter,
a 1.3% decrease from the prior quarter. This is an estimate
of the amount the Company expects to recover on non-accruing
loans. The estimated loss on total loans at cost, defined as
net accumulated depreciation on non-accrual loans plus realized
losses on loans during the period, was $150
million, or 7.8%. Net operating income before income
taxes of $0.06 per diluted share
during the quarter was reduced by $0.06 per diluted share due to the net impact of
debt and equity securities being added and removed from non-accrual
status.
"European Capital received €141 million of realizations in the
first quarter, which allowed European Capital to distribute €75
million, or $104 million, to American
Capital," said Ira Wagner,
President, European Private Finance. "It's also gratifying to
report that European Capital increased its NAV by €25 million, or
12% annualized, prior to its distributions to American Capital, and
that American Capital's investment in European Capital appreciated
$60 million."
STOCK REPURCHASE AND DIVIDEND PROGRAM
American
Capital's Board of Directors adopted a program that may provide for
repurchases of shares or dividend payments. Under the
program, American Capital may consider quarterly 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 NAV 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 NAV of its shares.
During the quarter, American Capital made open market purchases
of 8.9 million shares, or $137
million, of American Capital common stock at an average
price of $15.38 per share.
Since the inception of the program in August
2011, American Capital has made open market purchases of
101.6 million shares, or $1.2
billion, of American Capital common stock at an average
price of $11.74 per share. This
represents 29% of shares outstanding immediately prior to the
launch of the program.
In March 2014, American Capital's
Board of Directors suspended the program for an indefinite
period.
|
AMERICAN CAPITAL,
LTD.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
As of March 31,
2014, December 31, 2013 and March 31, 2013
|
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q4
|
|
Q1 2014 Versus
Q4 2013
|
|
Q1
|
|
Q1 2014 Versus
Q1 2013
|
|
2014
|
|
2013
|
|
$
|
|
%
|
|
2013
|
|
$
|
|
%
|
|
(unaudited)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair
value (cost of $5,465, $5,548 and $5,694, respectively)
|
$
5,020
|
|
$
5,072
|
|
$
(52)
|
|
(1%)
|
|
$
5,411
|
|
$
(391)
|
|
(7%)
|
|
Cash and cash
equivalents
|
468
|
|
315
|
|
153
|
|
49%
|
|
360
|
|
108
|
|
30%
|
|
Restricted cash and
cash equivalents
|
104
|
|
74
|
|
30
|
|
41%
|
|
53
|
|
51
|
|
96%
|
|
Interest and dividend
receivable
|
32
|
|
38
|
|
(6)
|
|
(16%)
|
|
48
|
|
(16)
|
|
(33%)
|
|
Deferred tax asset,
net
|
419
|
|
414
|
|
5
|
|
1%
|
|
452
|
|
(33)
|
|
(7%)
|
|
Other
|
91
|
|
96
|
|
(5)
|
|
(5%)
|
|
79
|
|
12
|
|
15%
|
|
Total
assets
|
$
6,134
|
|
$
6,009
|
|
$
125
|
|
2%
|
|
$
6,403
|
|
$
(269)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
$
790
|
|
$
791
|
|
$
(1)
|
|
—%
|
|
$
662
|
|
$
128
|
|
19%
|
|
Trade date settlement
liability
|
202
|
|
15
|
|
187
|
|
NM
|
|
—
|
|
202
|
|
100%
|
|
Other
|
64
|
|
77
|
|
(13)
|
|
(17%)
|
|
72
|
|
(8)
|
|
(11%)
|
|
Total
liabilities
|
1,056
|
|
883
|
|
173
|
|
20%
|
|
734
|
|
322
|
|
44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undesignated
preferred stock, $0.01 par value, 5.0 shares
authorized, 0 issued and outstanding
|
—
|
|
—
|
|
—
|
|
—%
|
|
—
|
|
—
|
|
—%
|
|
Common stock, $0.01
par value, 1,000.0 shares authorized, 267.9, 274.8 and
303.0 issued and 263.3, 270.2 and 297.8
outstanding, respectively
|
3
|
|
3
|
|
—
|
|
—%
|
|
3
|
|
—
|
|
—%
|
|
Capital in excess of
par value
|
6,178
|
|
6,296
|
|
(118)
|
|
(2%)
|
|
6,677
|
|
(499)
|
|
(7%)
|
|
Distributions in
excess of net realized earnings
|
(748)
|
|
(774)
|
|
26
|
|
3%
|
|
(837)
|
|
89
|
|
11%
|
|
Net unrealized
depreciation of investments
|
(355)
|
|
(399)
|
|
44
|
|
11%
|
|
(174)
|
|
(181)
|
|
(104%)
|
|
Total shareholders'
equity
|
5,078
|
|
5,126
|
|
(48)
|
|
(1%)
|
|
5,669
|
|
(591)
|
|
(10%)
|
|
Total liabilities and
shareholders' equity
|
$
6,134
|
|
$
6,009
|
|
$
125
|
|
2%
|
|
$
6,403
|
|
$
(269)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per common share
outstanding
|
$
19.29
|
|
$18.97
|
|
$0.32
|
|
2%
|
|
$19.04
|
|
$0.25
|
|
1%
|
|
AMERICAN CAPITAL,
LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Months Ended
March 31, 2014 and December 31, 2013
|
|
(in millions,
except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Q1 2014 Versus
Q4 2013
|
|
|
Q1
2014
|
|
Q4
2013
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
REVENUE
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
$
71
|
|
$
92
|
|
$
(21)
|
|
(23%)
|
|
|
Fee income
|
13
|
|
26
|
|
(13)
|
|
(50%)
|
|
|
Total operating
revenue
|
84
|
|
118
|
|
(34)
|
|
(29%)
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Interest
|
12
|
|
12
|
|
—
|
|
—%
|
|
|
Salaries, benefits
and stock-based compensation
|
42
|
|
41
|
|
1
|
|
2%
|
|
|
General and
administrative
|
14
|
|
13
|
|
1
|
|
8%
|
|
|
Total operating
expenses
|
68
|
|
66
|
|
2
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME TAXES
|
16
|
|
52
|
|
(36)
|
|
(69%)
|
|
|
|
|
|
|
|
|
|
|
|
Tax
provision
|
(11)
|
|
(14)
|
|
3
|
|
21%
|
|
|
NET OPERATING
INCOME
|
5
|
|
38
|
|
(33)
|
|
(87%)
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain
(loss)
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
21
|
|
12
|
|
9
|
|
75%
|
|
|
Foreign currency
transactions
|
2
|
|
3
|
|
(1)
|
|
(33%)
|
|
|
Derivative
agreements
|
1
|
|
1
|
|
—
|
|
—%
|
|
|
Tax (provision)
benefit
|
(3)
|
|
3
|
|
(6)
|
|
NM
|
|
|
Total net realized
gain
|
21
|
|
19
|
|
2
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED
EARNINGS
|
26
|
|
57
|
|
(31)
|
|
(54%)
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
35
|
|
(261)
|
|
296
|
|
NM
|
|
|
Foreign currency
translation
|
(4)
|
|
21
|
|
(25)
|
|
NM
|
|
|
Derivative agreements
and other
|
1
|
|
3
|
|
(2)
|
|
(67%)
|
|
|
Tax benefit
(provision)
|
12
|
|
(2)
|
|
14
|
|
NM
|
|
|
Total net unrealized
appreciation (depreciation)
|
44
|
|
(239)
|
|
283
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
("NET EARNINGS (LOSS)")
|
$
70
|
|
$
(182)
|
|
$
252
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.02
|
|
$
0.14
|
|
$
(0.12)
|
|
(86%)
|
|
|
Diluted
|
$
0.02
|
|
$
0.14
|
|
$
(0.12)
|
|
(86%)
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.10
|
|
$
0.21
|
|
$
(0.11)
|
|
(52%)
|
|
|
Diluted
|
$
0.09
|
|
$
0.21
|
|
$
(0.12)
|
|
(57%)
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
(LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.26
|
|
$
(0.66)
|
|
$
0.92
|
|
NM
|
|
|
Diluted
|
$
0.25
|
|
$
(0.66)
|
|
$
0.91
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OF COMMON STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Basic
|
270.7
|
|
277.5
|
|
(6.8)
|
|
(2%)
|
|
|
Diluted
|
283.4
|
|
277.5
|
|
5.9
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not
meaningful.
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL,
LTD.
|
|
OTHER FINANCIAL
INFORMATION
|
|
Three Months Ended
March 31, 2014, December 31, 2013 and March 31, 2013
|
|
(in millions,
except per share data)
|
|
(unaudited)
|
|
|
|
|
|
Q1 2014
Versus
Q4 2013
|
|
|
|
Q1 2014
Versus
Q1 2013
|
|
|
|
Q1
2014
|
|
Q4
2013
|
|
$
|
|
%
|
|
Q1
2013
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
Capital Assets at Fair Value
|
$
6,134
|
|
$
6,009
|
|
$
125
|
|
2%
|
|
$
6,403
|
|
$
(269)
|
|
(4%)
|
|
|
|
Third-Party
Assets at Fair Value(1)
|
77,425
|
|
87,201
|
|
(9,776)
|
|
(11%)
|
|
105,222
|
|
(27,797)
|
|
(26%)
|
|
|
|
Total
|
$
83,559
|
|
$
93,210
|
|
$
(9,651)
|
|
(10%)
|
|
$
111,625
|
|
$
(28,066)
|
|
(25%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-Party Earning
Assets Under Management(2)
|
$
12,771
|
|
$
12,677
|
|
$
94
|
|
1%
|
|
$
14,881
|
|
$
(2,110)
|
|
(14%)
|
|
|
|
Total Earning Assets
Under Management(3)
|
$
18,825
|
|
$
18,603
|
|
$
222
|
|
1%
|
|
$
21,208
|
|
$
(2,383)
|
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior
Debt
|
$
264
|
|
$
499
|
|
$
(235)
|
|
(47%)
|
|
$
80
|
|
$
184
|
|
230%
|
|
|
|
Mezzanine
Debt
|
4
|
|
—
|
|
4
|
|
100%
|
|
—
|
|
4
|
|
100%
|
|
|
|
Preferred
Equity
|
1
|
|
103
|
|
(102)
|
|
(99%)
|
|
16
|
|
(15)
|
|
(94%)
|
|
|
|
Common
Equity
|
13
|
|
230
|
|
(217)
|
|
(94%)
|
|
2
|
|
11
|
|
550%
|
|
|
|
Structured
Products
|
39
|
|
65
|
|
(26)
|
|
(40%)
|
|
—
|
|
39
|
|
100%
|
|
|
|
Total by Security
Type
|
$
321
|
|
$
897
|
|
$
(576)
|
|
(64%)
|
|
$
98
|
|
$
223
|
|
228%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Floating Rate
Loans ("SFRL")
|
$
199
|
|
$
-
|
|
$
199
|
|
100%
|
|
$
-
|
|
$
199
|
|
100%
|
|
|
|
Sponsor Finance
Investments
|
62
|
|
94
|
|
(32)
|
|
(34%)
|
|
29
|
|
33
|
|
114%
|
|
|
|
Investments in ACAM
and Fund Development
|
34
|
|
240
|
|
(206)
|
|
(86%)
|
|
—
|
|
34
|
|
100%
|
|
|
|
Structured
Products
|
19
|
|
27
|
|
(8)
|
|
(30%)
|
|
—
|
|
19
|
|
100%
|
|
|
|
American Capital One
Stop Buyouts®
|
—
|
|
—
|
|
—
|
|
—%
|
|
27
|
|
(27)
|
|
(100%)
|
|
|
|
Add-on Financing for
Growth and Working Capital
|
4
|
|
44
|
|
(40)
|
|
(91%)
|
|
3
|
|
1
|
|
33%
|
|
|
|
Add-on Financing for
Distressed Situations
|
3
|
|
33
|
|
(30)
|
|
(91%)
|
|
3
|
|
—
|
|
—%
|
|
|
|
Add-on Financing for
Acquisitions
|
—
|
|
391
|
|
(391)
|
|
(100%)
|
|
—
|
|
—
|
|
—%
|
|
|
|
Add-on Financing for
Recapitalizations, not Including Distressed Investments
|
—
|
|
68
|
|
(68)
|
|
(100%)
|
|
36
|
|
(36)
|
|
(100%)
|
|
|
|
Total by
Use
|
$
321
|
|
$
897
|
|
$
(576)
|
|
(64%)
|
|
$
98
|
|
$
223
|
|
228%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Investments
|
$
324
|
|
$
245
|
|
$
79
|
|
32%
|
|
$
60
|
|
$
264
|
|
440%
|
|
|
|
Payment of Accrued
Payment-in-Kind Notes and Dividends and Accreted OID
|
63
|
|
52
|
|
11
|
|
21%
|
|
60
|
|
3
|
|
5%
|
|
|
|
Loan Syndications and
Sales
|
20
|
|
10
|
|
10
|
|
100%
|
|
4
|
|
16
|
|
400%
|
|
|
|
Scheduled Principal
Amortization
|
19
|
|
7
|
|
12
|
|
171%
|
|
9
|
|
10
|
|
111%
|
|
|
|
Principal
Prepayments
|
16
|
|
245
|
|
(229)
|
|
(93%)
|
|
148
|
|
(132)
|
|
(89%)
|
|
|
|
Total by
Source
|
$
442
|
|
$
559
|
|
$
(117)
|
|
(21%)
|
|
$
281
|
|
$
161
|
|
57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Management
|
$
198
|
|
$
-
|
|
$
198
|
|
100%
|
|
$
8
|
|
$
190
|
|
NM
|
|
|
|
European
Capital
|
104
|
|
158
|
|
(54)
|
|
(34%)
|
|
—
|
|
104
|
|
100%
|
|
|
|
American Capital One
Stop Buyouts®
|
66
|
|
141
|
|
(75)
|
|
(53%)
|
|
169
|
|
(103)
|
|
(61%)
|
|
|
|
Sponsor Finance
Investments
|
56
|
|
248
|
|
(192)
|
|
(77%)
|
|
86
|
|
(30)
|
|
(35%)
|
|
|
|
Structured
Products
|
17
|
|
4
|
|
13
|
|
325%
|
|
5
|
|
12
|
|
240%
|
|
|
|
Direct and Other
Investments
|
1
|
|
8
|
|
(7)
|
|
(88%)
|
|
13
|
|
(12)
|
|
(92%)
|
|
|
|
Total by Business
Line
|
$
442
|
|
$
559
|
|
$
(117)
|
|
(21%)
|
|
$
281
|
|
$
161
|
|
57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation,
Depreciation, Gain and Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Realized
Gain
|
$
25
|
|
$
66
|
|
$
(41)
|
|
(62%)
|
|
$
31
|
|
$
(6)
|
|
(19%)
|
|
|
|
Gross Realized
Loss
|
(4)
|
|
(54)
|
|
50
|
|
93%
|
|
(38)
|
|
34
|
|
89%
|
|
|
|
Portfolio Net
Realized Gain (Loss)
|
21
|
|
12
|
|
9
|
|
75%
|
|
(7)
|
|
28
|
|
NM
|
|
|
|
Foreign Currency
Transactions
|
2
|
|
3
|
|
(1)
|
|
(33%)
|
|
—
|
|
2
|
|
100%
|
|
|
|
Derivative
Agreements
|
1
|
|
1
|
|
—
|
|
—%
|
|
(14)
|
|
15
|
|
NM
|
|
|
|
Tax (Provision)
Benefit
|
(3)
|
|
3
|
|
(6)
|
|
NM
|
|
13
|
|
(16)
|
|
NM
|
|
|
|
Net Realized Gain
(Loss)
|
21
|
|
19
|
|
2
|
|
11%
|
|
(8)
|
|
29
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Unrealized
Appreciation of American Capital One Stop Buyouts®
|
29
|
|
66
|
|
(37)
|
|
(56%)
|
|
54
|
|
(25)
|
|
(46%)
|
|
|
|
Gross Unrealized
Depreciation of American Capital One Stop Buyouts®
|
(142)
|
|
(201)
|
|
59
|
|
29%
|
|
(45)
|
|
(97)
|
|
(216%)
|
|
|
|
Gross Unrealized
Appreciation of Sponsor Finance, Direct and Other
Investments
|
7
|
|
6
|
|
1
|
|
17%
|
|
28
|
|
(21)
|
|
(75%)
|
|
|
|
Gross Unrealized
Depreciation of Sponsor Finance, Direct and Other
Investments
|
(40)
|
|
(23)
|
|
(17)
|
|
(74%)
|
|
(24)
|
|
(16)
|
|
(67%)
|
|
|
|
Net Unrealized
(Depreciation) Appreciation of Private Finance Portfolio
Investments
|
(146)
|
|
(152)
|
|
6
|
|
4%
|
|
13
|
|
(159)
|
|
NM
|
|
|
|
Net Unrealized
Appreciation of European Capital Investment
|
64
|
|
102
|
|
(38)
|
|
(37%)
|
|
111
|
|
(47)
|
|
(42%)
|
|
|
|
Net Unrealized
Appreciation (Depreciation) of European Capital Foreign Currency
Translation
|
—
|
|
(7)
|
|
7
|
|
100%
|
|
17
|
|
(17)
|
|
(100%)
|
|
|
|
Net Unrealized
Appreciation (Depreciation) of American Capital Asset Management,
LLC
|
121
|
|
(185)
|
|
306
|
|
NM
|
|
214
|
|
(93)
|
|
(43%)
|
|
|
|
Net Unrealized
Depreciation of Structured Products
|
(2)
|
|
(14)
|
|
12
|
|
86%
|
|
(8)
|
|
6
|
|
75%
|
|
|
|
Reversal of Prior
Period Net Unrealized Appreciation Upon Realization
|
(2)
|
|
(5)
|
|
3
|
|
60%
|
|
(12)
|
|
10
|
|
83%
|
|
|
|
Net Unrealized
Appreciation (Depreciation) of Portfolio Company
Investments
|
35
|
|
(261)
|
|
296
|
|
NM
|
|
335
|
|
(300)
|
|
(90%)
|
|
|
|
Foreign Currency
Translation - European Capital
|
(4)
|
|
20
|
|
(24)
|
|
NM
|
|
(38)
|
|
34
|
|
89%
|
|
|
|
Foreign Currency
Translation - Other
|
—
|
|
1
|
|
(1)
|
|
(100%)
|
|
(2)
|
|
2
|
|
100%
|
|
|
|
Derivative Agreements
and Other
|
1
|
|
3
|
|
(2)
|
|
(67%)
|
|
4
|
|
(3)
|
|
(75%)
|
|
|
|
Reversal of Prior
Period Net Unrealized Depreciation Upon Realization of Terminated
Swaps
|
—
|
|
—
|
|
—
|
|
—%
|
|
9
|
|
(9)
|
|
(100%)
|
|
|
|
Tax Benefit
(Provision)
|
12
|
|
(2)
|
|
14
|
|
NM
|
|
—
|
|
12
|
|
100%
|
|
|
|
Net Unrealized
Appreciation (Depreciation) of Investments
|
44
|
|
(239)
|
|
283
|
|
NM
|
|
308
|
|
(264)
|
|
(86%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gains, Losses,
Appreciation and Depreciation
|
$
65
|
|
$
(220)
|
|
$
285
|
|
NM
|
|
$
300
|
|
$
(235)
|
|
(78%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per
Share
|
$
19.29
|
|
$
18.97
|
|
$
0.32
|
|
2%
|
|
$
19.04
|
|
$
0.25
|
|
1%
|
|
|
|
Debt at
Cost
|
$
790
|
|
$
791
|
|
$
(1)
|
|
—%
|
|
$
662
|
|
$
128
|
|
19%
|
|
|
|
Debt at Fair
Value
|
$
821
|
|
$
817
|
|
$
4
|
|
—%
|
|
$
674
|
|
$
147
|
|
22%
|
|
|
|
Market
Capitalization
|
$
4,160
|
|
$
4,226
|
|
$
(66)
|
|
(2%)
|
|
$
4,348
|
|
$
(188)
|
|
(4%)
|
|
|
|
Total Enterprise
Value(4)
|
$
4,482
|
|
$
4,706
|
|
$
(224)
|
|
(5%)
|
|
$
4,650
|
|
$
(168)
|
|
(4%)
|
|
|
|
Asset Coverage
Ratio
|
528 %
|
|
588 %
|
|
|
|
|
|
956 %
|
|
|
|
|
|
|
|
Debt to Equity
Ratio
|
0.2x
|
|
0.2x
|
|
|
|
|
|
0.1x
|
|
|
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on SFRL at Period End
|
4.5 %
|
|
N/A
|
|
|
|
|
|
N/A
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on Debt Investments, Excluding SFRL, at
Period End
|
9.7 %
|
|
10.0 %
|
|
|
|
|
|
10.6 %
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on All Debt Investments at Period
End
|
9.1 %
|
|
10.0 %
|
|
|
|
|
|
10.6 %
|
|
|
|
|
|
|
|
Loans on Non-Accrual
at Cost
|
$
315
|
|
$
287
|
|
$
28
|
|
10%
|
|
$
313
|
|
$
2
|
|
1%
|
|
|
|
Loans on Non-Accrual
at Fair Value
|
$
165
|
|
$
154
|
|
$
11
|
|
7%
|
|
$
208
|
|
$
(43)
|
|
(21%)
|
|
|
|
Non-Accrual Loans at
Cost as a Percentage of Total Loans at Cost
|
16.4%
|
|
17.0%
|
|
|
|
|
|
16.3%
|
|
|
|
|
|
|
|
Non-Accrual Loans at
Fair Value as a Percentage of Total Loans at Fair Value
|
9.2%
|
|
9.7%
|
|
|
|
|
|
11.3%
|
|
|
|
|
|
|
|
Non-Accruing Loans at
Fair Value as a Percentage of Non-Accruing Loans at Cost
|
52.4%
|
|
53.7%
|
|
|
|
|
|
66.5%
|
|
|
|
|
|
|
|
Estimated
Loss(5)
|
$
150
|
|
$
156
|
|
$
(6)
|
|
(4%)
|
|
$
124
|
|
$
26
|
|
21%
|
|
|
|
Estimated Loss as a
Percentage of Total Loans at Cost
|
7.8%
|
|
9.3%
|
|
|
|
|
|
6.4%
|
|
|
|
|
|
|
|
Past Due Loans at
Cost
|
$
-
|
|
$
26
|
|
$
(26)
|
|
(100%)
|
|
$
73
|
|
$
(73)
|
|
(100%)
|
|
|
|
Debt to Equity
Conversions at Cost
|
$
-
|
|
$
74
|
|
$
(74)
|
|
(100%)
|
|
$
1
|
|
$
(1)
|
|
(100%)
|
|
|
|
Return on Average
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Net Operating
Income Return on Average Shareholders' Equity
|
2.1%
|
|
2.9%
|
|
|
|
|
|
7.3%
|
|
|
|
|
|
|
|
LTM Net Realized
Earnings Return on Average Shareholders' Equity
|
1.7%
|
|
1.9%
|
|
|
|
|
|
4.1%
|
|
|
|
|
|
|
|
LTM Net (Loss)
Earnings Return on Average Shareholders' Equity
|
(1.7%)
|
|
3.4%
|
|
|
|
|
|
16.8%
|
|
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Return on Average Shareholders'
Equity
|
0.4%
|
|
2.8%
|
|
|
|
|
|
3.3%
|
|
|
|
|
|
|
|
Current Quarter
Annualized Net Realized Earnings Return on Average Shareholders'
Equity
|
2.1%
|
|
4.3%
|
|
|
|
|
|
2.8%
|
|
|
|
|
|
|
|
Current Quarter
Annualized Net Earnings (Loss) Return on Average Shareholders'
Equity
|
5.5%
|
|
(13.8%)
|
|
|
|
|
|
24.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
total assets of American Capital Agency Corp., American Capital
Mortgage Investment Corp., American Capital Senior Floating, Ltd,
European Capital, American Capital Equity I, American
Capital Equity II, ACAS CLO 2007-1, ACAS CLO
2012-1, ACAS CLO
2013-1 and ACAS CLO 2013-2, less American Capital's investment in
the funds.
|
|
(2) Represents
third-party earning assets under management from which the
associated base management fees are calculated.
|
|
(3) Represents
total assets of American Capital less American Capital's investment
in the funds as well as third-party earning assets under management
from which the associated base management fees
are calculated.
|
|
(4) Enterprise
value is calculated as debt at cost plus market capitalization less
cash and cash equivalents on hand.
|
|
(5) Net
accumulated depreciation on non-accrual loans plus realized losses
on loans during the period presented.
|
|
Static Pool
(1)
|
|
Portfolio
Statistics
($ in millions, unaudited)
|
1997-
2003
|
|
|
|
|
|
|
|
|
|
1997-2014
Static Pools
Aggregate
|
|
Aggregate
|
2004
|
2005
|
2006
|
2007
|
2008
|
2011
|
2012
|
2013
|
2014
|
|
IRR at Fair Value of
All Investments(2)
|
12.2 %
|
12.6 %
|
13.4 %
|
10.5 %
|
(2.9%)
|
9.5 %
|
24.4 %
|
(3.8%)
|
48.0 %
|
7.4 %
|
8.8 %
|
|
IRR of Exited
Investments(3)
|
12.8 %
|
15.8 %
|
20.2 %
|
8.2 %
|
(2.4%)
|
7.2 %
|
23.4 %
|
17.1 %
|
24.9 %
|
N/A
|
10.1 %
|
|
IRR at Fair Value of
Equity Investments Only(2)(4)(5)
|
17.7 %
|
24.4 %
|
13.1 %
|
14.3 %
|
(9.7%)
|
20.6 %
|
35.6 %
|
(48.4%)
|
274.1 %
|
N/A
|
10.9 %
|
|
IRR of Exited Equity
Investments Only(3)(4)(5)
|
21.9 %
|
45.8 %
|
38.2 %
|
11.0 %
|
7.9 %
|
21.7 %
|
35.1 %
|
N/A
|
N/A
|
N/A
|
24.3 %
|
|
IRR at Fair Value of
All One Stop Buyout® Investments(2)
|
10.9 %
|
14.0 %
|
27.2 %
|
12.9 %
|
1.2 %
|
16.0 %
|
70.6 %
|
(11.0%)
|
338.5 %
|
N/A
|
13.0 %
|
|
IRR at Fair Value of
All One Stop Buyout® Equity Investments(2)(4)(5)
|
15.8 %
|
23.6 %
|
38.4 %
|
16.0 %
|
(9.6%)
|
16.3 %
|
70.6 %
|
(48.4%)
|
337.8 %
|
N/A
|
16.6 %
|
|
IRR at Fair Value of
Current One Stop Buyout® Investments(2)
|
11.3 %
|
(2.2%)
|
23.9 %
|
12.1 %
|
(2.5%)
|
19.4 %
|
70.6 %
|
(11.0%)
|
338.5 %
|
N/A
|
9.9 %
|
|
IRR of Exited One
Stop Buyout® Investments(3)
|
10.4 %
|
21.4 %
|
25.8 %
|
11.3 %
|
13.9 %
|
14.2 %
|
N/A
|
19.6 %
|
N/M
|
N/A
|
14.6 %
|
|
Committed
Investments(7)
|
$3,846
|
$2,289
|
$5,152
|
$5,329
|
$7,542
|
$1,063
|
$208
|
$880
|
$302
|
$270
|
$26,881
|
|
Total Exits and
Prepayments of Committed Investments(7)
|
$3,513
|
$2,084
|
$2,703
|
$4,471
|
$5,754
|
$769
|
$168
|
$282
|
$17
|
$—
|
$19,761
|
|
Total Interest,
Dividends and Fees Collected
|
$1,363
|
$707
|
$1,480
|
$1,508
|
$1,551
|
$424
|
$30
|
$55
|
$15
|
$—
|
$7,133
|
|
Total Net Realized
(Loss) Gain on Investments
|
$(116)
|
$16
|
$368
|
$(317)
|
$(1,212)
|
$(113)
|
$11
|
$4
|
$—
|
$—
|
$(1,359)
|
|
Current Cost of
Investments
|
$294
|
$215
|
$1,601
|
$623
|
$1,363
|
$245
|
$62
|
$566
|
$238
|
$258
|
$5,465
|
|
Current Fair Value of
Investments
|
$294
|
$69
|
$2,021
|
$669
|
$616
|
$248
|
$72
|
$496
|
$276
|
$259
|
$5,020
|
|
Current Fair Value of
Investments as a % of Total Investments at Fair Value
|
5.8 %
|
1.4%
|
40.3 %
|
13.3 %
|
12.3 %
|
4.9 %
|
1.4 %
|
9.9 %
|
5.5 %
|
5.2 %
|
100.0 %
|
|
Net Unrealized
(Depreciation) Appreciation
|
$—
|
$(146)
|
$420
|
$46
|
$(747)
|
$3
|
$10
|
$(70)
|
$38
|
$1
|
$(445)
|
|
Non-Accruing Loans at
Cost
|
$52
|
$6
|
$19
|
$95
|
$110
|
$33
|
$—
|
$—
|
$—
|
$—
|
$315
|
|
Non-Accruing Loans at
Fair Value
|
$22
|
$2
|
$4
|
$34
|
$74
|
$29
|
$—
|
$—
|
$—
|
$—
|
$165
|
|
Equity Interest at
Fair Value(4)
|
$214
|
$60
|
$1,703
|
$405
|
$236
|
$109
|
$34
|
$99
|
$67
|
$—
|
$2,927
|
|
Debt to Adjusted
EBITDA(8)(9)(12)(13)(16)
|
14.3
|
1.8
|
1.7
|
4.7
|
5.5
|
6.5
|
4.7
|
4.9
|
6.7
|
5.9
|
3.8
|
|
Interest
Coverage(10)(12)(13)(16)
|
1.0
|
3.4
|
0.7
|
2.1
|
1.4
|
2.4
|
3.2
|
3.7
|
2.5
|
2.9
|
1.8
|
|
Debt Service
Coverage(11)(12)(13)(16)
|
1.0
|
1.4
|
0.5
|
1.9
|
1.2
|
2.1
|
2.5
|
3.1
|
2.2
|
2.6
|
1.5
|
|
Average Age of
Companies(13)(16)
|
39
yrs
|
37
yrs
|
14
yrs
|
40
yrs
|
34
yrs
|
20
yrs
|
21
yrs
|
17
yrs
|
23
yrs
|
21
yrs
|
25
yrs
|
|
Diluted Ownership
Percentage(4)(17)
|
56 %
|
77 %
|
95 %
|
50 %
|
55 %
|
70 %
|
69 %
|
95 %
|
75 %
|
N/A
|
81 %
|
|
Average
Revenue(13)(14)(16)
|
$180
|
$34
|
$198
|
$152
|
$176
|
$34
|
$100
|
$225
|
$284
|
$178
|
$178
|
|
Average Adjusted
EBITDA(8)(13)(16)
|
$38
|
$8
|
$68
|
$39
|
$28
|
$15
|
$24
|
$64
|
$33
|
$48
|
$48
|
|
Total
Revenue(13)(14)
|
$1,414
|
$227
|
$1,182
|
$2,971
|
$2,643
|
$220
|
$189
|
$1,883
|
$2,021
|
$719
|
$13,469
|
|
Total Adjusted
EBITDA(8)(13)
|
$201
|
$40
|
$264
|
$371
|
$257
|
$87
|
$45
|
$403
|
$370
|
$214
|
$2,252
|
|
% of Senior
Loans(12)(13)(15)
|
79 %
|
100 %
|
50 %
|
43 %
|
64 %
|
34 %
|
100 %
|
95 %
|
100 %
|
100 %
|
69 %
|
|
% of Loans with
Lien(12)(13)(15)
|
100 %
|
100 %
|
95 %
|
100 %
|
95 %
|
44 %
|
100 %
|
100 %
|
100 %
|
100 %
|
94 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority Owned
Portfolio Companies ("MOPC")(6)
|
1997-2014 Static
Pools
Aggregate
|
|
|
|
|
|
|
|
|
|
|
Total Number of
MOPC
|
$42
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue(14)
|
$3,445
|
|
|
|
|
|
|
|
|
|
|
Total Gross
Profit(14)
|
$1,731
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA(8)
|
$693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures(14)
|
$102
|
|
|
|
|
|
|
|
|
|
|
Total Current ACAS
Investment in MOPC at Fair Value
|
$2,996
|
|
|
|
|
|
|
|
|
|
|
Total Current ACAS
Investment in MOPC at Cost Basis
|
$3,066
|
|
|
|
|
|
|
|
|
|
|
Total Current ACAS
Debt Investment in MOPC at Fair Value
|
$1,060
|
|
|
|
|
|
|
|
|
|
|
Total Current ACAS
Debt Investment in MOPC at Cost Basis
|
$1,142
|
|
|
|
|
|
|
|
|
|
|
Diluted Ownership
Percentage of ACAS in MOPC(17)
|
78 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Cash(18)
|
$235
|
|
|
|
|
|
|
|
|
|
|
Total
Assets(18)
|
$4,475
|
|
|
|
|
|
|
|
|
|
|
Total
Debt(18)
|
$3,585
|
|
|
|
|
|
|
|
|
|
|
Total Third-party
Debt at Cost(18)
|
$1,946
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders'
Equity(18)(19)
|
$2,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not
Meaningful
|
|
1)
|
Static pool
classification is based on the year the initial investment was
made. Subsequent add-on investments are included in the static pool
year of the original investment. There were no investments made
in
2009 and 2010 static
pool years.
|
|
2)
|
Internal rate of
return ("IRR") calculations are based on a sequence of cash
proceeds invested, cash realizations or non-cash consideration
received, and the terminal value of an investment over time. For
active investments, the terminal value is assumed to be the current
fair value. For exited investments, the terminal value is the total
cash realization received upon exit. Additionally, IRR calculations
exclude securities traded but not yet settled at period
end.
|
|
3)
|
IRR calculations are
based on a sequence of cash proceeds invested, cash realizations or
non-cash consideration received, and the terminal value of an
investment over time. For exited investments, the terminal value is
the total cash realization received upon exit. This includes fully
exited investments of existing portfolio companies. Additionally,
IRR calculations exclude securities traded but not yet settled at
period end.
|
|
4)
|
Excludes investments
in Structured Products.
|
|
5)
|
Excludes equity
investments that are the result of conversions of debt and warrants
received with the issuance of debt.
|
|
6)
|
MOPC investments
represent portfolio company investments in which American Capital,
or its affiliates, have a fully diluted ownership percentage of 50%
or more or have over 50% board representation at the portfolio
company. Includes American Capital Asset Management, LLC prior to
the consolidation of the collateralized loan obligations. Excludes
our investment in European Capital.
|
|
7)
|
Represents committed
investment amount at the time of origination.
|
|
8)
|
Adjusted EBITDA may
reflect certain adjustments to the reported EBITDA of a portfolio
company for non-recurring, unusual or infrequent items or other
pro-forma items or events to normalize current earnings which a
buyer may consider in a change in control transactions. These
adjustments may be material and are highly subjective in nature.
Portfolio company reported EBITDA is for the most recently
available twelve months, or when appropriate, the forecasted twelve
months or current annualized run-rate.
|
|
9)
|
Debt, which
represents the debt and other liabilities senior to ACAS and the
total of ACAS's debt in each portfolio company's debt
capitalization, divided by Adjusted EBITDA. For portfolio companies
with a nominal Adjusted EBITDA amount, the portfolio company's
maximum debt leverage is limited to 15 times Adjusted
EBITDA.
|
|
10)
|
Adjusted EBITDA
divided by the total cash interest expense of the portfolio company
during the most recent twelve month period, or when appropriate as
a result of a new debt capital structure, the forecasted twelve
months.
|
|
11)
|
Adjusted EBITDA
divided by the total scheduled principal amortization and total
cash interest expense of the portfolio company during the most
recent twelve month period, or when appropriate, the forecasted
twelve months.
|
|
12)
|
Excludes investments
in which we own only equity.
|
|
13)
|
Excludes investments
in Structured Products, Senior Floating Rate Loans and managed
funds.
|
|
14)
|
For the most recent
twelve months, or when appropriate, the forecasted twelve
months.
|
|
15)
|
As a percentage of
our total debt investments.
|
|
16)
|
Weighted average
based on fair value.
|
|
17)
|
Weighted average
based on fair value of equity investments.
|
|
18)
|
As of the most recent
month end available.
|
|
19)
|
Calculated as the
estimated enterprise value of the MOPC less the cost basis of any
outstanding debt of the MOPC.
|
SHAREHOLDER CALL
American Capital invites
shareholders, analysts and interested parties to attend the
shareholder call on May 8, 2014 at
11:00 am ET. Callers who do not
plan on asking a question and have access to the internet are
encouraged to utilize the free live webcast at
www.AmericanCapital.com. Those who do plan on participating
in the Q&A or do not have the internet available may access the
call by dialing (888) 317-6016 (U.S. domestic) or (412) 317-6016
(international). All callers are asked to dial in 10-15
minutes prior to the call to register. Please advise the
operator you are dialing in for the American Capital shareholder
call.
A slide presentation will accompany the shareholder call and
will be available at www.AmericanCapital.com. Select the Q1
2014 Earnings Presentation link to download and print the
presentation in advance of the shareholder call.
An archived audio replay of the shareholder call combined with
the slide presentation will be made available on our website after
the call on May 8, 2014. In
addition, there will be a phone recording available from
1:00 pm ET May
8, 2014 until 9:00 am ET
May 22, 2014. If you are
interested in hearing the recording of the presentation, please
dial (877) 344-7529 (U.S. domestic) or (412) 317-0088
(international). The access code for both domestic and
international callers is 10044208.
ABOUT AMERICAN CAPITAL
American Capital, Ltd.
(NASDAQ: ACAS) 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, energy & infrastructure and structured
products. American Capital manages $19
billion of assets, including assets on its balance sheet and
fee earning assets under management by affiliated managers, with
$84 billion of total assets under
management (including levered assets). Through an affiliate,
American Capital manages publicly traded American Capital Agency
Corp. (NASDAQ: AGNC) with approximately $9
billion of net book value, American Capital Mortgage
Investment Corp. (NASDAQ: MTGE) with approximately $1 billion of net book value and American Capital
Senior Floating, Ltd. (NASDAQ: ACSF) with approximately
$151 million of net book value.
From its eight offices in the U.S. and Europe, American Capital and its affiliate,
European Capital, will consider investment opportunities from
$10 million to $750 million.
For further information, please refer to
www.AmericanCapital.com.
ADDITIONAL INFORMATION
Persons considering an
investment in American Capital should consider the investment
objectives, risks and charges and expenses of the Company carefully
before investing. Such information and other information
about the Company is available in the Company's annual report on
Form 10-K, quarterly reports on Form 10-Q and in the prospectuses
the Company issues from time to time in connection with its
offering of securities. Such materials are filed with the
Securities and Exchange Commission ("SEC") and copies are available
on the SEC's website, www.sec.gov. Prospective investors
should read such materials carefully before investing.
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.
Forward-looking statements are based on estimates, projections,
beliefs and assumptions of management of the Company at the time of
such statements and are not guarantees of future performance.
Forward-looking statements involve risks and uncertainties in
predicting future results and conditions. Actual results
could differ materially from those projected in these
forward-looking statements due to a variety of factors, including,
without limitation, 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. Certain
factors that could cause actual results to differ materially from
those contained in the forward-looking statements are included in
the "Risk Factors" section of the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2013 and the
Company's subsequent periodic filings. Copies are available
on the SEC's website at www.sec.gov. Forward-looking
statements are made as of the date of this press release, and are
subject to change without notice. We disclaim any obligation
to update or revise any forward-looking statements based on the
occurrence of future events, the receipt of new information, or
otherwise.
CONTACT:
Investors - (301) 951-5917
Media - (301) 968-9400
SOURCE American Capital, Ltd.