American Capital Closes $414 Million Managed CLO

News provided by

American Capital, Ltd.

Sep 25, 2013, 03:37 ET

BETHESDA, Md., Sept. 25, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that an affiliate, ACAS CLO 2013-2, Ltd. (the "CLO"), has closed on the sale of $414 million of collateralized loan obligation bonds.  The transaction was arranged by Citibank, N.A.  The CLO is externally managed by American Capital CLO Management, LLC, a subsidiary of American Capital Asset Management, LLC, a wholly-owned portfolio company of American Capital, for an annual management fee of 50 basis points of total assets.

The CLO has primarily invested the proceeds of the bonds in broadly syndicated senior secured loans purchased in the primary and secondary markets.

"We are pleased to close our second CLO of 2013 today.  American Capital now has four CLOs under management, totaling $1.5 billion in total assets," said Mark Pelletier, American Capital Managing Director, Leveraged Finance Group.

"We view CLO issuance as an integral part of our continued growth as an asset manager and are gratified by the ongoing support of our investors and partners in supporting our latest issuance," said Tom McHale, American Capital Senior Vice President, Finance. 

The bonds sold by the CLO included tranches rated AAA(sf) through B(sf) by S&P and a non-rated equity tranche of subordinated notes.  American Capital purchased $8.0 million of the non-rated equity tranche of subordinated notes, with third party investors purchasing the remaining $30.5 million. 







Capital Structure







Tranche

% of Total Capital

Principal Amount ($)

Moody's

S&P

Spread/Coupon

Class A-1a

23.90%

99,000,000

Aaa (sf)

AAA(sf)

L+1.35%

Class A-1b

33.80%

140,000,000

Aaa (sf)

AAA(sf)

L+1.10%*

Class A-1c

2.41%

10,000,000

Aaa (sf)

AAA(sf)

3.559%

Class A-2a

10.56%

43,750,000

N/A

AA(sf)

L+1.75%

Class A-2b

2.41%

10,000,000

N/A

AA(sf)

4.550%

Class B

6.76%

28,000,000

N/A

A(sf)

L+2.65%

Class C

4.83%

20,000,000

N/A

BBB(sf)

L+3.25%

Class D

4.35%

18,000,000

N/A

BB(sf)

L+4.50%

Class E

1.69%

7,000,000

N/A

B(sf)

L+5.75%

Equity

9.28%

38,450,000

N/A

N/A

100%

$414,200,00



  • The spread over LIBOR payable on the Class A-1b Notes will be (i) 110bps up to but excluding the Payment Date in April 2015; (ii) 160bps from and including the Payment Date in April 2015 to but excluding the Payment Date in April 2016; and (iii) 190bps thereafter

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 $21 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $119 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 $10 billion of net book value and American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $1 billion 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.

The securities referred to herein have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such act. This announcement does not constitute an offer to sell or the solicitation of any offer to buy any of the securities. This announcement appears as a matter of record only.

This press release may contain 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
Mark Pelletier, Managing Director, Leveraged Finance Group – (212) 213-2009

SOURCE American Capital, Ltd.