American Capital Comments on New Business Development Companies, Invests $15.6 Million in New Portfolio Company
17 4월 2004 - 5:37AM
PR Newswire (US)
American Capital Comments on New Business Development Companies,
Invests $15.6 Million in New Portfolio Company BETHESDA, Md., April
16 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd.
announced today its views on new Business Development Companies
(BDCs). "This is an appropriate time to welcome the new BDCs that
have recently gone public and those that may follow. They will
accelerate the growing investor interest in BDCs," said Malon
Wilkus, American Capital Chairman, President and CEO. "We have long
thought it inevitable that private equity and mezzanine
partnerships would ultimately adopt the BDC structure. Compared to
typical private equity and mezzanine partnerships, BDCs can retain
their capital, enjoy greater access and lower cost of capital and
offer investors greater transparency, control and liquidity. BDCs
can also offer debt and equity and longer term capital to
companies. In addition, internally managed BDCs, like American
Capital, are free of the many conflicts that exist between the
general and limited partners of these partnerships. We expect many
of the new BDCs to provide capital to larger companies outside the
market targeted by American Capital and therefore not be our direct
competitors. More importantly, we also expect that the recent
creation of new BDCs will accelerate the process of displacing many
of the hundreds of traditional private equity and mezzanine
partnerships that will no longer have access to capital. Overall,
we believe this is a positive development for American Capital."
"In 2003, mezzanine and equity partnerships raised approximately
$24 billion of capital, one of the lowest levels in years. The
capital raised by BDCs should serve over time to replace, not
augment, these levels," said American Capital COO Ira Wagner. "With
our most recent announced investment, our 92 portfolio companies
now have combined revenues of over $7 billion and about $1 billion
of EBITDA. We continue to have a robust pipeline of financing
opportunities, which has grown 103% over the past 12 months to over
$6 billion." American Capital Invests $15.6 Million in Premier
Provider of Electronic Processing Services American Capital is also
announcing it has invested $15.6 million in TransFirst Holdings
Inc. ("TransFirst"), a leading provider of transaction processing
services and payment technologies. American Capital's investment
takes the form of senior subordinated debt and supports
TransFirst's acquisition of the third party and agent bank merchant
division of Fifth Third Bank (NASDAQ:FITB) Processing Solutions.
Merrill Lynch Capital provided a revolving credit facility and
senior term loans; GTCR and management provided senior subordinated
debt, while GTCR provided equity financing and is the majority
owner. American Capital has invested approximately $1.1 billion in
the last twelve months and over $150 million year to date. For more
information about American Capital's portfolio, go to
http://www.americancapital.com/our_portfolio/our_portfolio.cfm "We
are pleased to be working again with GTCR, a strong equity sponsor,
supporting the expansion of TransFirst, a premier provider of
electronic transaction processing services," said American Capital
COO Ira Wagner. "We believe that GTCR's familiarity with the
payment processing sector and its developed expertise with growing
processing-related companies will enable it to assist in maximizing
TransFirst's value. This investment illustrates American Capital's
ability to build on relationships with many of our private equity
partners and assist in their new portfolio investments." Founded in
1995, Dallas-based TransFirst is a provider of a complete line of
merchant credit and debit transaction processing services,
including transaction authorization, transaction data capture and
transmission, merchant reporting, merchant acceptance, transaction
settlement and clearing, real-time transaction monitoring and
transaction charge-back solutions. TransFirst's customer base is
made up of more than 760 banks and approximately 150,000 merchants
throughout the U.S. It includes customers involved in the health
care industry, agent banking, card-not-present services (including
merchants involved in mail, telephone and internet sales) and
independent sales organizations. In addition to its headquarters,
TransFirst also has operating facilities in Colorado, Nebraska,
Kansas, Wisconsin and California and employs nearly 350. Since
2000, revenue has grown at a CAGR of approximately 50%. "TransFirst
is an extremely attractive investment opportunity: The company
shows impressive historical financial performance, employing a
compelling business model focused on merchants and agents in high
growth, service- intensive markets. TransFirst enjoys distinct
competitive advantages -- excellent customer service, a broad
service offering allowing for client customization, private
labeling of its TransLink reporting system and fully automated risk
assessment of transactions and merchants," said American Capital
Managing Director Tom Gregory. "TransFirst's strategic acquisition
will increase the company's customer base, specifically broadening
its focus on the higher margin Independent Service Organization
segment, and will also result in significant cost reductions
through the company's robust shared services platform. With its
strong and deep management team, TransFirst is in an excellent
position to capitalize on favorable industry dynamics as credit and
debit card purchasing volumes continue to increase, driven by the
widespread adoption of card-based payment." For more information
about TransFirst's broad offering of top quality electronic
transaction processing services, go to:
http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20040416a.html
"Having worked with American Capital on a previous investment, we
were familiar with their exceptional investment abilities and
professional staff and were confident that they would be capable of
providing the necessary support to complete this transaction," said
GTCR Principal Barry Dunn. "TransFirst is well-positioned to expand
its reach within the electronic transaction processing market and
further solidify its leadership position in its niche." As of March
31, 2004, American Capital shareholders have enjoyed a total return
of 296% since the Company's IPO -- an annualized return of 23%,
assuming reinvestment of dividends. American Capital has declared a
total of $13.82 per share in dividends since its August 1997 IPO.
American Capital is a publicly traded buyout and mezzanine fund
with capital resources in excess of $2.7 billion. American Capital
is an investor in and sponsor of management and employee buyouts;
invests in private equity sponsored buyouts, and provides capital
directly to private and small public companies. American Capital
provides senior debt, mezzanine debt and equity to fund growth,
acquisitions and recapitalizations. Companies interested in
learning more about American Capital's flexible financing should
contact Mark Opel, Principal, at (800) 248-9340, or visit our
website at http://www.americancapital.com/. Founded in 1980, GTCR
Golder Rauner LLC is a leading private equity investment firm and
long-term strategic partner for outstanding management teams. The
Chicago-based firm pioneered the investment strategy of identifying
and partnering with exceptional executives to build leading
companies through a combination of acquisitions and strong internal
growth. GTCR currently manages more than $6 billion of equity
capital invested in a wide range of companies and industries.
Portfolio companies include Transaction Network Services, Inc., a
leading provider of data communications services to the credit card
and ATM transaction processing industry; Cardinal Logistics
Management, Inc., a provider of knowledge-based, integrated
logistics solutions; Alliant Resources Group, a leading U.S.
distributor of insurance and financial services; and VeriFone,
Inc., the leading provider of secure electronic payment solutions
for financial institutions, merchants and consumers. This press
release contains forward-looking statements. The statements
regarding expected results of American Capital Strategies 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 or national economic conditions, or changes in the
conditions of the industries in which American Capital has made
investments. DATASOURCE: American Capital Strategies Ltd. CONTACT:
L. Thomas Gregory, Managing Director, +1-312-681-7400 or Brian
Maney, Director, Corporate Communications, +1-301-951-6122, both of
American Capital Strategies Ltd. Web site:
http://www.americancapital.com/ http://www.acas.com/
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