American Capital Closes $362 Million Managed CLO

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.

 



Capital Structure










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

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

N/A

BBB

L+4.85%

Class E

4.56%

16,500,000

N/A

BB-

L+6.00%

Subordinated Notes

11.80%

42,730,000

N/A

N/A

N/A


100%

$362,230,000










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.



RELATED LINKS
http://www.AmericanCapital.com

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