Reports euro 0.18 NOI and euro 0.21 Realised Earnings in Q2 2007
ST. PETER PORT, Guernsey, England, Aug. 22 /PRNewswire-FirstCall/
-- European Capital Limited ("European Capital") (LSE:ECAS)
announced today its third quarter 2007 dividend and its results for
the second quarter of 2007. THIRD QUARTER 2007 DIVIDEND DECLARATION
European Capital's Board of Directors has declared a third quarter
2007 dividend of euro 0.13 per share payable on 26 October 2007 to
record holders of its ordinary share on the register as of 16:30
BST on 28 September 2007. This is a 30% increase over the second
quarter 2007 dividend of euro 0.10 per share. This is in line with
the dividend target announced at the time European Capital declared
its second quarter 2007 dividend. European Capital has now paid or
declared a total of euro 24.9 million in dividends since its May
2007 initial public offering ("IPO"). 2007 DIVIDEND GUIDANCE
European Capital is reiterating its target of total 2007 dividends
post IPO of euro 0.37 per share. This would represent a 37%
increase over the total 2007 post IPO dividends targeted in the
European Capital prospectus of euro 0.27 per share. European
Capital continues to target a fourth quarter 2007 interim dividend
of euro 0.14 per ordinary share. SECOND QUARTER 2007 RESULTS
Earnings for the quarter increased euro 23.4 million to euro 25.7
million, compared to euro 2.3 million for the second quarter of
2006. Earnings per share for the quarter increased euro 0.24 to
euro 0.27 compared to euro 0.03 for the second quarter of 2006. For
the quarter, net portfolio appreciation and gains, excluding
foreign exchange translation, totalled euro 3.2 million compared to
euro-nil for the second quarter of 2006. Earnings less unrealised
appreciation and depreciation and unrealised foreign exchange
translation ("Realised Earnings") increased euro 0.17 to euro 0.21
per share for the quarter compared to euro 0.04 per share for the
second quarter of 2006. Net operating income ("NOI") increased euro
0.13 to euro 0.18 per share from euro 0.05 per share for the second
quarter of 2006. "This is a great time to be a well capitalised
financial institution," said Malon Wilkus, European Capital
Chairman. "With less than 0.6:1 debt to equity, European Capital
has huge competitive advantages in this new credit environment.
With our One Stop Buyout(TM) and one stop financing, we fund
transactions that are impossible for some of our competitors to
close. With demonstrated access to capital, we are taking advantage
of lower multiples, wider spreads and better terms to generate
outstanding risk adjusted returns for our shareholders." Second
quarter 2007 dividends were euro 0.10 per share. For the quarter,
European Capital's dividend payout ratio was 48% of Realised
Earnings of euro 0.21 per basic share. European Capital's net asset
value ("NAV") per share at 30 June 2007 was euro 9.82, a euro 0.09
increase over the 10 May 2007 IPO NAV per share of euro 9.73. "The
advantage of our business model becomes more evident in a widening
spread environment like today," said John Erickson, American
Capital Chief Financial Officer. "As interest rate spreads widen,
our interest income and our spread income generally grows, which
allows us to increase our NOI and our dividends. During widening
spread environments, we may experience slower growth in our equity
portfolio as more expensive credit reduces valuation multiples, but
our growing spread income should allow us to continue to generate
excellent returns on equity, just when other companies find it
difficult to produce similar results." During the second quarter of
2007, European Capital completed an IPO of 14.6 million shares,
including the full exercise of the over-allotment option granted to
the underwriters, at a price of euro 9.84 per share, for gross
proceeds of approximately euro 144 million. The shares are traded
on the London Stock Exchange under the ticker symbol "ECAS." Prior
to the IPO, American Capital exercised its warrant to purchase
18.75 million shares of European Capital for an exercise price of
euro 9.50 per share, or euro 178 million. As at 30 June 2007
European Capital's market capitalisation was euro 1.1 billion. "The
current credit and economic environment is ideal for us to continue
our growth," said Ira Wagner, President of European Capital
Financial Services Limited, the Investment Sub-Manager of European
Capital. "In the past few weeks, European Capital's stock price has
declined along with most financial stocks. However, European
Capital has a much better capitalised balance sheet than many
financial institutions, CLOs and hedge funds; some of which are
levered above 4:1 debt to equity. We are levered less than 0.6:1
debt to equity and are in good shape to handle continued
uncertainty in the capital markets. In recent months we have opened
offices in Frankfurt and Madrid to provide better coverage of
middle market opportunities in these markets." In the second
quarter of 2007, European Capital invested euro 0.7 billion of
capital. In the second quarter of 2007, European Capital had euro
3.2 million of net appreciation, depreciation, gains and losses,
excluding foreign currency exchange translation. This comprised of
net appreciation of euro 0.9 million and net gains of euro 2.3
million. The weighted average effective interest rate on European
Capital's total investments in debt securities at 30 June 2007 was
12.1%. At the same time, one loan totalling euro 20 million was on
non-accrual. This is 1.6% of total loans at 30 June 2007, compared
to no loans at 30 June 2006. The fair value of this loan at 30 June
2007 was euro 10.7 million or 0.9% of total loans. "Our portfolio
continues to perform very well, with our delinquencies and
non-accruals at less than 2% of total loans," said Ira Wagner, "We
believe the current environment, whereby many investors have lost
access to capital despite very low commercial loan default rates,
will result in a significant increase in our investment
opportunities over and above our already outstanding deal flow. We
continue to focus on developing one of the largest middle market
deal flows in our industry so that we can continue to be
extraordinarily selective as to which companies we invest in. We
also continue to have the significant advantage of not being
reliant on commercial or investment banks for financing for our One
Stop Buyouts(TM) and one-stop- financings because we are able to
fund the entire transaction. In addition, when we conclude that it
is time to sell a portfolio company, we may choose to provide the
buyer with the appropriate debt financing to supplement their
equity to fund the transaction; a capability most of our
competitors lack. Therefore, we continue to believe that our
capital flexibility and our very large deal flow will provide us
with excellent investment and exit opportunities going forward."
Since its inception in August 2005 up until 30 June 2007, European
Capital has invested in 58 portfolio companies totalling euro 2.3
billion. European Capital has invested euro 707 million in the
second quarter of 2007. Since its inception up to the second
quarter of 2007, European Capital has earned a 17% compounded
annual return, including interest, dividends, fees and net gains,
on nine realisations of senior debt, subordinated debt and equity
investments, totalling euro 227 million of invested capital. These
realisations represent 10% of all amounts invested by European
Capital. "Our low levered balance sheet and capital markets
creditability have allowed us to execute our IPO during a time when
access to capital was closed to many institutions," said Tom
McHale, Senior Vice President of Finance, American Capital. "We
have no investments in sub prime residential mortgages. Zero
percent of our portfolio today is in CMBS investments. Less than
0.5% of our portfolio assets are in CDOs. We have few covenant-lite
loans. And, since inception our equity investments have produced a
27% IRR. We are very well capitalised and have a portfolio that is
performing in a market where opportunities have just become far
more profitable." THIRD PARTY VALUATION OF PORTFOLIO INVESTMENTS
European Capital's Board of Directors is responsible for
determining the fair value of European Capital's portfolio
investments on a quarterly basis. In that regard, the Board retains
Houlihan Lokey Howard & Zukin Financial Advisors Inc.
("Houlihan Lokey") to assist it by having Houlihan Lokey regularly
review a designated percentage of fair value determinations.
Houlihan Lokey is a leading valuation firm engaged in approximately
1,000 valuation assignments per year for clients worldwide. Each
quarter, Houlihan Lokey reviews European Capital's determination of
the fair value of all portfolio companies that have been a
portfolio company at least one year and that have a fair value in
excess of euro 10 million. In the second quarter of 2007, Houlihan
Lokey reviewed valuations of 12 portfolio company investments
having an aggregate euro 355 million in fair value as of the period
end. In addition, Houlihan Lokey representatives attend European
Capital's quarterly valuation meetings and provide periodic reports
and recommendations to the Audit Committee of the Board of
Directors. For those portfolio company investments that Houlihan
Lokey has reviewed during each applicable period, using the scope
of review set forth by European Capital's Board of Directors, the
Board has made a fair value determination that is within the
aggregate range of fair value for such investments as determined by
Houlihan Lokey. For full financial information on the six months
ended 30 June 2007, please refer to our Interim Consolidated
Financial Statements which can be found on our web site
http://www.europeancapital.com/. Financial highlights for the
quarter are as follows: EUROPEAN CAPITAL LIMITED CONSOLIDATED
BALANCE SHEETS As of 30 June 2007 and 31 December 2006 (in
thousands, except per share data) (all amounts in euros unless
otherwise noted) Q2 2007 Versus 30 June 31 December Q4 2006 2007
2006 euro % (unaudited) Assets Investments at fair value (Cost
basis of euro 1,587,174, and euro 1,072,938 respectively) 1,607,020
1,077,709 529,311 49% Cash and cash equivalents 7,349 85,932
(78,583) -91% Restricted cash 67,938 12,913 55,025 426% Other
11,163 18,031 (6,868) -38% Total assets 1,693,470 1,194,585 498,885
42% Liabilities and Shareholders' Equity Debt (maturing within one
year euro 2,196 and euro 39 respectively) 606,774 422,414 184,360
44% Due to European Capital Financial Services (Guernsey) Limited
5,352 3,568 1,784 50% Accrued dividends payable 10,836 21,750
(10,914) -50% Other 6,648 2,699 3,949 146% Total liabilities
629,610 450,431 179,179 40% Commitments and contingencies
Shareholders' equity: Ordinary shares (nil par value, authorised to
issue unlimited number of shares, 108,364 issued and outstanding)
1,030,371 - 1,030,371 NM Preference shares (nil par value,
authorised to issue unlimited number of shares, 75,000 issued and
outstanding) - 737,696 (737,696) -100% Undistributed net realised
earnings 14,542 1,261 13,281 1053% Net unrealised foreign currency
gains 1,456 332 1,124 339% Net unrealised appreciation of
investments 17,491 5,638 11,853 210% Other reserve - (773) 773 100%
Total shareholders' equity 1,063,860 744,154 319,706 43% Total
liabilities and shareholders' equity 1,693,470 1,194,585 498,885
42% NM = Not Meaningful EUROPEAN CAPITAL LIMITED CONSOLIDATED
STATEMENTS OF OPERATIONS Three and Six Months Ended 30 June 2007
and 2006 (in thousands, except per share data) (unaudited) (all
amounts in euros unless otherwise noted) Three Months Three Months
Ended Ended 30 June 30 June 30 June 2007 2007 2006 Versus 2006 euro
% OPERATING INCOME: Interest and dividend income 39,680 12,557
27,123 216% Fee and Other Income 1,737 (146) 1,883 1290% Total
operating income 41,417 12,411 29,006 234% OPERATING EXPENSES:
Interest 8,264 2,389 5,875 246% Management fee and reimbursed
expenses 9,373 5,850 3,523 60% Incentive fee 5,115 - 5,115 NM
General and administrative 1,831 489 1,342 274% Total operating
expenses 24,583 8,728 15,855 182% OPERATING INCOME BEFORE INCOME
TAXES 16,834 3,683 13,151 357% Provision for income taxes (35) -
(35) NM NET OPERATING INCOME 16,799 3,683 13,116 356% Net realised
foreign currency gains (losses) 869 (1,053) 1,922 183% Net realised
gain on investments 2,321 202 2,119 1049% TOTAL NET REALISED
EARNINGS 19,989 2,832 17,157 606% Net unrealised foreign currency
appreciation (depreciation) 4,906 (292) 5,198 1780% Net unrealised
appreciation (depreciation) of investments 840 (202) 1,042 516%
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ("EARNINGS")
25,735 2,338 23,397 1001% NET OPERATING INCOME PER SHARE: Basic
& Diluted 0.18 0.05 0.13 263% NET REALISED EARNINGS PER SHARE:
Basic & Diluted 0.21 0.04 0.17 462% NET EARNINGS PER SHARE:
Basic & Diluted 0.27 0.03 0.24 776% WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: Basic 94,247 75,000 19,247 26% Diluted 94,247
75,000 19,247 26% DIVIDENDS DECLARED PER SHARE 0.10 0.00 0.10 100%
NM = Not Meaningful EUROPEAN CAPITAL LIMITED CONSOLIDATED
STATEMENTS OF OPERATIONS Three and Six Months Ended 30 June 2007
and 2006 (in thousands, except per share data) (unaudited) all
amounts in euros unless otherwise noted Six Months Ended Six Months
Ended 30 June 30 June 30 June 2007 2007 2006 Versus 2006 euro %
OPERATING INCOME: Interest and dividend income 73,962 19,543 54,419
278% Fee and Other Income 5,027 1,020 4,007 393% Total operating
income 78,989 20,563 58,426 284% OPERATING EXPENSES: Interest
15,204 3,896 11,308 290% Management fee and reimbursed expenses
20,739 13,070 7,669 59% Incentive fee 5,115 - 5,115 NM General and
administrative 3,361 1,453 1,908 131% Total operating expenses
44,419 18,419 26,000 141% OPERATING INCOME BEFORE INCOME TAXES
34,570 2,144 32,426 1512% Provision for income taxes (179) - (179)
NM NET OPERATING INCOME 34,391 2,144 32,247 1504% Net realised
foreign currency gains (losses) 3,155 (2,141) 5,296 247% Net
realised gain on investments 2,321 202 2,119 1049% TOTAL NET
REALISED EARNINGS 39,867 205 39,662 NM Net unrealised foreign
currency appreciation (depreciation) 1,124 (982) 2,106 214% Net
unrealised appreciation (depreciation) of investments 11,853 1,204
10,649 884% INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
("EARNINGS") 52,844 427 52,417 NM NET OPERATING INCOME PER SHARE:
Basic & Diluted 0.41 0.03 0.38 1321% NET REALISED EARNINGS PER
SHARE: Basic & Diluted 0.47 0.00 0.47 NM NET EARNINGS PER
SHARE: Basic & Diluted 0.62 0.00 0.62 100% WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING: Basic 84,677 75,000 9,677 13% Diluted
84,677 75,000 9,677 13% DIVIDENDS DECLARED PER SHARE 0.31 0.00 0.31
100% NM = Not Meaningful EUROPEAN CAPITAL LIMITED OTHER FINANCIAL
INFORMATION Three Months Ended 30 June 2007, 31 December 2006 and
30 June 2006 (in thousands, except per share data) (unaudited) all
amounts in euros unless otherwise noted Q2 Q4 Q2 2007 vs. Q4 2006
2007 2006 euro % New Investments: Senior Debt 330,409 187,650
142,759 76% Subordinated Debt 292,994 129,740 163,254 126%
Preferred Equity 74,879 63,795 11,084 17% Common Equity 2,072
14,031 (11,959) -85% CDO/CLO Investments 6,510 - 6,510 NM Total
706,864 395,216 311,648 79% European Capital Sponsored Buyouts
420,636 233,367 187,269 80% Financing for Private Equity Buyouts
194,719 148,091 46,628 31% Direct Investments - - - - Add-on
Financing for Acquisitions 15,471 13,758 1,713 12% Add-on Financing
for Recapitalisations 69,528 - 69,528 NM CDO/CLO Investments 6,510
- 6,510 NM Total 706,864 395,216 311,648 79% Realisations: Senior
Loan Syndications 214,032 122,702 91,330 74% Principal Prepayments
85,634 30,306 55,328 183% Payment of Accrued Payment-in-kind
Interest and Dividends and Original Issue Discount 5,894 - 5,894 NM
Sale of Equity Investments 2,322 1,357 965 71% Total 307,882
154,365 153,517 99% Appreciation, Depreciation, Gains and Losses:
Gross Realised Gains 2,321 1,345 976 73% Gross Realised Losses - -
- - Net Realised Gains 2,321 1,345 976 73% Gross Unrealised
Appreciation at 6, 2 and 0 Portfolio Companies 13,491 3,678 9,813
267% Gross Unrealised Depreciation at 2, 1 and 1 Portfolio
Companies (12,651) - (12,651) NM Current Portfolio Net Unrealised
Appreciation 840 3,678 (2,838) -77% Net Depreciation From the
Recognition of Net Realised Gains - (402) 402 NM Net Unrealised
Appreciation (Depreciation) for Foreign Currency Translation 4,906
1,819 3,087 170% Net Realised Appreciation (Depreciation) for
Foreign Currency Translation 869 (829) 1,698 NM Net Unrealised
Appreciation 6,615 4,266 2,349 55% Net Gains, Losses, Appreciation
and Depreciation 8,936 5,611 3,325 59% Other Financial Data: Net
Asset Value per Share 9.82 9.92 (0.10) -1% Market Capitalisation
1,146,491 NM NM NM Total Enterprise Value 1,745,916 NM NM NM Credit
Quality: Weighted Average Effective Interest Rate on Debt
Investments 12% 12.5% Loans on Non-Accrual at Face 20,000 - 20,000
NM Loans on Non-Accrual at Fair Value 10,672 - 10,672 NM Past Due
Loans at Face - - - NM Past Due and Non-Accrual Loans at Face as a
Percentage of Total Loans 1.6% 0% Past Due and Non-Accrual Loans at
Fair Value as a Percentage of Total Loans 0.9% 0% Number of
Portfolio Companies on Non-Accrual and Past Due 1 - Return on
Equity: LTM Net Operating Income Return on Average Equity at Cost
9.4% 7.9% LTM Realised Earnings Return on Average Equity at Cost
10.4% 7.9% LTM Earnings Return on Average Equity 13.3% 9.5% Current
Quarter Net Operating Income Return on Average Equity at Cost
Annualised 7.4% 10.1% Current Quarter Realised Earnings Return on
Average Equity at Cost Annualised 8.8% 10.4% Current Quarter
Earnings Return on Average Equity Annualised 11.3% 13.7% Dividends:
Dividend Coverage (Realised Earnings per Basic Share/Dividend per
Share) 2.10 x 1.48 x Dividend Payout Ratio (Dividend per
Share/Realised Earnings per Basic Share) 0.48 x .68 x NM = Not
Meaningful Q2 Q2 2007 vs. Q2 2006 2006 euro % New Investments:
Senior Debt 33,005 297,404 901% Subordinated Debt 104,098 188,896
181% Preferred Equity - 74,879 NM Common Equity - 2,072 NM CDO/CLO
Investments - 6,510 NM Total 137,103 569,761 416% European Capital
Sponsored Buyouts - 420,636 100% Financing for Private Equity
Buyouts 137,103 57,616 42% Direct Investments - - - Add-on
Financing for Acquisitions - 15,471 NM Add-on Financing for
Recapitalisations - 69,528 NM CDO/CLO Investments - 6,510 NM Total
137,103 569,761 416% Realisations: Senior Loan Syndications 11,000
203,032 1846% Principal Prepayments 51,306 34,328 67% Payment of
Accrued Payment-in- kind Interest and Dividends and Original Issue
Discount - 5,894 NM Sale of Equity Investments 2,497 (175) -7%
Total 64,803 243,079 375% Appreciation, Depreciation, Gains and
Losses: Gross Realised Gains 202 2,119 1049% Gross Realised Losses
- - - Net Realised Gains 202 2,119 1049% - Gross Unrealised
Appreciation at 6, 2 and 0 Portfolio Companies - 13,491 NM Gross
Unrealised Depreciation at 2, 1 and 1 Portfolio Companies -
(12,651) NM Current Portfolio Net Unrealised Appreciation - 840 NM
Net Depreciation From the Recognition of Net Realised Gains (202)
202 NM Net Unrealised Appreciation (Depreciation) for Foreign
Currency Translation (292) 5,198 1780% Net Realised Appreciation
(Depreciation) for Foreign Currency Translation (1,053) 1,922 183%
Net Unrealised Appreciation (1,547) 8,162 528% Net Gains, Losses,
Appreciation and Depreciation (1,345) 10,281 764% Other Financial
Data: Net Asset Value per Share 4.94 4.88 99% Market Capitalisation
NM NM NM Total Enterprise Value NM NM NM Credit Quality: Weighted
Average Effective Interest Rate on Debt Investments 12.2% Loans on
Non-Accrual at Face - 20,000 NM Loans on Non-Accrual at Fair Value
- 10,672 NM Past Due Loans at Face - - NM Past Due and Non-Accrual
Loans at Face as a Percentage of Total Loans 0% Past Due and
Non-Accrual Loans at Fair Value as a Percentage of Total Loans 0%
Number of Portfolio Companies on Non-Accrual and Past Due - Return
on Equity: LTM Net Operating Income Return on Average Equity at
Cost -2.5% LTM Realised Earnings Return on Average Equity at Cost
-2.8% LTM Earnings Return on Average Equity -3.0% Current Quarter
Net Operating Income Return on Average Equity at Cost Annualised
4.7% Current Quarter Realised Earnings Return on Average Equity at
Cost Annualised 3.6% Current Quarter Earnings Return on Average
Equity Annualised 3.6% Dividends: Dividend Coverage (Realised
Earnings per Basic Share/Dividend per Share) - Dividend Payout
Ratio (Dividend per Share/Realised Earnings per Basic Share) - NM =
Not Meaningful EUROPEAN CAPITAL LIMITED STATIC POOL INFORMATION
Portfolio Statistics for Investments Made in Each of the Following
Years (in thousands) (unaudited) (all amounts in euros unless
otherwise noted) Portfolio statistics (1) (9) 2005 2006 2007
Aggregate Internal Rate of Return - All Investments (2) (8) 16.0%
16.7% 16.8% 16.5% Internal Rate of Return - Equity Investments only
(2) (8) (10) 38.6% 26.1% 14.6% 27.4% Original Investments and
Commitments (8) 237,436 1,201,561 876,545 2,315,542 Total Exits and
Prepayments of Original Investments (8) 42,624 519,175 220,147
781,946 Total Interest, Dividends and Fees Collected (8) 23,269
72,786 12,239 108,294 Total Net Gain on Investments 202 3,666 -
3,868 Current Cost of Investments 210,184 716,901 660,089 1,587,174
Current Fair Value of Investments 218,203 727,409 661,408 1,607,020
Net Appreciation 9,212 7,765 16,977 Non-Accruing Loans at Face -
20,000 20,000 Non-Accruing Loans at Fair Value - 10,672 10,672
Equity Interest at Fair Value 27,590 227,784 134,219 389,593 Debt
to EBITDA (3) (4) 5.4 6.2 7.7 6.7 Interest Coverage (3) 4.6 2.8 1.8
2.6 Debt Service Coverage (3) 2.9 1.8 1.5 1.8 Average Age of
Companies 90 years 91 years 43 years 71 years Ownership Percentage
8.2% 31.2% 18.8% 23.0% Average Sales (5) 683,128 439,931 241,330
391,385 Average EBITDA (6) 107,174 58,404 41,779 58,193 Average
EBITDA margin (6) 15.7% 13.3% 17.3% 14.9% Total Sales (5) 5,449,825
15,841,798 6,236,113 27,527,736 Total EBITDA (6) 900,347 2,278,421
1,348,135 4,526,903 % of Senior Loans (7) 9% 22% 44% 29% % of Loans
with Lien (7) 100% 100% 95% 98% (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. (2) Assumes investments are exited at current
fair value. (3) These amounts do not include investments in which
European Capital owns only equity. (4) For portfolio companies with
a nominal EBITDA amount, the portfolio company's maximum debt
leverage is limited to 15 times EBITDA. (5) Sales of the most
recent twelve months, or when appropriate, the forecasted twelve
months. (6) EBITDA of the most recent twelve months, or when
appropriate, the forecasted twelve months. (7) As a percentage of
our total debt investments. (8) Non euro-denominated amounts are
retranslated at the exchange rate ruling at the date of original
investment. (9) Non euro-denominated balances, other than those
referred to in (8), are retranslated at the exchange rate ruling at
the balance sheet date. (10)Excludes equity investments that are
the result of conversions of debt and warrants received with the
issuance of debt. A summary of European Capital's dividend history
post IPO and target follows. For more information, please visit our
website at http://www.europeancapital.com/ or call our Investor
Relations Department at +44 (0) 800 458 0770. EUROPEAN CAPITAL'S
DIVIDEND HISTORY POST MAY 2007 IPO (all amounts in euros unless
otherwise noted) % Change of Dividend Year and Quarter Dividend
Over Prior Period Total 2007 Year-to-Date 0.37 N/A 0.37 Q4 Target
0.14 Q3 Declared 0.13 Q2 (IPO = 10 May 2007) 0.10 SHAREHOLDER CALL
European Capital invites shareholders, analysts and other
interested persons to attend the European Capital Shareholder Call
on Thursday 23 August 2007 at 15.00 BST (10:00 EDT). The dial in
number will be +1 (612) 332-0335. Callers within the United States
should dial +1 (800) 288-8961. Please advise the operator you are
dialling in for the European Capital Shareholder Call. Point your
browser to http://www.europeancapital.com/ and click on the Q2 2007
Shareholder Call Slide Show button. BEFORE THE CALL: REVIEW SLIDE
PRESENTATION IN ADVANCE OF THE SHAREHOLDER CALL The quarterly
shareholder presentation includes a slide presentation to accompany
the call that participants may download and print prior to the
call. You may wish to take the time to review the slides in advance
of the Shareholder Call. DURING THE CALL: VIEW STREAMING SLIDE
PRESENTATION DURING THE SHAREHOLDER CALL During the Shareholder
Call you may watch and listen to the webcast or listen to the
Shareholder Call by phone and step through the slides at your own
pace. AFTER THE CALL: LISTEN AND VIEW AUDIO SLIDE PRESENTATION
AFTER THE CALL The audio of the Shareholder Call combined with the
slide presentation will be made available on our website after the
call on 23 August on our website http://www.europeancapital.com/.
AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL: There
will be a phone recording available from 22:00 BST Thursday 23
August until 04:59 BST Saturday 8 September. If you are interested
in hearing the recording of the presentation, please dial +1 (320)
365-3844. Callers within the United States may dial +1 (800)
475-6701. The access code for all callers is 882240. For further
information or questions, please do not hesitate to call our
Investor Relations Department at +44 (0) 800 458 0770. ABOUT
EUROPEAN CAPITAL European Capital is a publicly traded investment
company for pan-European equity, mezzanine and senior debt
investments with capital resources of approximately euro 2.1
billion ($2.9 billion). It is managed by European Capital Financial
Services (Guernsey) Limited ("ECFSG" or "the Investment Manager"),
a wholly-owned affiliate of American Capital Strategies, Ltd
("American Capital"). European Capital invests in and sponsors
management and employee buyouts, invests in private equity buyouts
and provides capital directly to private and public companies
headquartered predominantly in Europe. European Capital generally
invests between euro 5 million and euro 500 million per transaction
in equity, mezzanine debt and senior debt to fund growth,
acquisitions and recapitalisations. The investment objective of
European Capital is to provide investors with dividend income and
the potential for share value appreciation by investing in debt and
equity investments in private and public companies headquartered
primarily in Europe. European Capital seeks to achieve this through
pursuing the following types of investments: European Capital
One-Stop Buyouts(TM) Through our One-Stop Buyouts(TM), European
Capital provides equity, mezzanine debt and senior debt as the lead
investor in the buyout of private and public companies. Mezzanine
Direct with Sponsors European Capital provides debt and equity
financing for buyouts sponsored by private equity firms where
European Capital is either the sole or lead mezzanine debt
investor. Syndicated Mezzanine and Senior Debt European Capital
provides mezzanine and senior financing for buyouts sponsored by
private equity firms where European Capital is neither the sole nor
lead mezzanine or senior debt investor. Direct Investments European
Capital provides debt and equity financing directly to private and
public companies, which is used for growth, acquisitions or
recapitalisations, and investing in structured finance vehicles.
Companies interested in learning more about European Capital's
flexible financing should contact Simon Henderson or Nathalie Faure
Beaulieu at + 44 (0)20 7539 7000 in London, Jean Eichenlaub at + 33
(0)1 40 68 06 66 in Paris, Robert von Finckenstein at +49 (0) 69 71
71 297-0 in Frankfurt, or Luis Felipe Castellanos at +(34) 91 745
99 63 in Madrid, or visit the website at
http://www.europeancapital.com/. ABOUT AMERICAN CAPITAL American
Capital Strategies Ltd. is an affiliate of European Capital and the
only alternative asset management company that is a member of the
S&P 500. With $16 billion in assets under management(1),
American Capital is the largest U.S. publicly traded private equity
fund and one of the largest publicly traded alternative asset
managers. American Capital, both directly and through its global
asset management business, is an investor in management and
employee buyouts, private equity buyouts, and early stage and
mature private and public companies. American Capital provides
senior debt, mezzanine debt and equity to fund growth,
acquisitions, recapitalizations and securitizations. American
Capital and its affiliates invest from $5 million to $800 million
per company in North America and euro 5 million to euro 500 million
per company in Europe. IMPORTANT DISCLOSURES This document may
contain "forward-looking statements". By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. Many of these risks
and uncertainties relate to factors beyond European Capital's
control or which cannot be estimated precisely. These Factors
include, but are not limited to, uncertainties associated with the
timing of transaction closings, changes in interest rates,
availability of transactions, changes in regional, national or
international economic conditions, and changes in the conditions of
the industries in which European Capital has made investments.
Actual outcomes and results may therefore differ materially from
any outcomes or results expressed or implied by any such
forward-looking statements. Performance data quoted above
represents past performance of European Capital. Past performance
does not guarantee future results and the investment return and
principal value of an investment in European Capital will likely
fluctuate. Consequently, an investor's shares, when sold, may be
worth more or less than their original cost. Additionally, European
Capital's current performance may be lower or higher than the
performance data quoted above. Nothing in this document is intended
to be a profit forecast. CONTACT: John Erickson, Chief Financial
Officer, American Capital +1 (301) 951-6122 Tom McHale, Senior Vice
President, Finance, American Capital +1 (301) 951-6122 DATASOURCE:
European Capital Limited CONTACT: John Erickson, Chief Financial
Officer, American Capital, +1-301-951-6122, or Tom McHale, Senior
Vice President, Finance, American Capital, +1-301-951-6122 Web
site: http://www.europeancapital.com/
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