BETHESDA, Md., Sept. 18 /PRNewswire-FirstCall/ -- American Capital
Strategies Ltd. (Nasdaq: ACAS) announced today it has invested $54 million
in its portfolio company TransFirst Holdings Inc., a leading provider of
transaction processing services and payment technologies. American
Capital's investment takes the form of a second lien junior secured term
loan. A syndicate led by Merrill Lynch Capital is providing a secured loan
facility consisting of a senior secured revolving loan facility, first lien
senior secured term loan and second lien junior secured term loan. GTCR
Golder Rauner LLC is the majority owner of TransFirst.
"We're delighted that GTCR has asked us to provide financing to support
the recapitalization of our portfolio company TransFirst, a premier
provider of processing services with prominent national status. Our
continuing investment in TransFirst represents American Capital's ninth
investment with GTCR and totals $264 million in commitments to six GTCR
portfolio companies," said American Capital Regional Managing Director
Darin Winn. "With this investment American Capital is not only building on
our relationship with GTCR, we are also delivering on our long-term
commitment to growing a portfolio company."
American Capital has invested $5 billion in the last twelve months,
approximately $3.5 billion year to date and $1 billion quarter to date.
These amounts do not include American Capital's unfunded equity commitment
and debt funded to its portfolio company European Capital. For more
information about American Capital's portfolio, go to
"TransFirst continues to be an excellent portfolio company to support.
In addition to outperforming our original expectations, the Company employs
a compelling, highly scalable business model focused on small and medium
sized merchants, has a diversified, high-quality customer base and records
impressive historical financial performance," said American Capital
Principal Jon Leiman. "In addition, we're also extremely pleased with the
successful integration of the Fifth Third Bank portfolio, whose acquisition
we supported in 2004. The detailed strategy and process methodology
developed by GTCR and TransFirst management allowed for the integration to
occur well ahead of schedule and resulted in attractive sales volume
growth, reduced costs per transaction and a broadened customer base."
"We're pleased to work with GTCR and TransFirst's management team. Both
groups have deep experience in transaction processing and will leverage the
Company's leading payment processing and customer service infrastructure to
address the specific processing needs of merchants within specific industry
verticals and independent sales organizations," said American Capital Vice
President John Neis. "The merchant acquiring industry provides
fundamentally attractive growth opportunities for TransFirst as
increasingly more small and medium size merchants accept electronic
payments. The Company can continue to focus on expansion into several
high-growth merchant markets that remain under-served, yet have great
American Capital originally invested in TransFirst in April 2004,
supporting TransFirst's acquisition of the third party and agent bank
merchant division of Fifth Third Bank Processing Solutions. 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 1,200 sales channel
partners representing approximately 154,000 merchants throughout the U.S.
In addition to its headquarters, TransFirst also has operating facilities
in Colorado, Nebraska, Kansas, Wisconsin and California and employs over
550. TransFirst recorded 2006 net revenue of approximately $130 million for
the year ending June 30, 2006.
"We have been partnering with American Capital since 2004 and continue
to turn to them for debt financing for new investments as well for our
existing portfolio companies," said GTCR Principal Barry Dunn. "To date,
they have always been supportive of our strategy at TransFirst."
For more information about American Capital's original investment in
TransFirst, go to
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with
capital resources of $8.9 billion. American Capital invests in and sponsors
management and employee buyouts, invests in private equity buyouts,
provides capital directly to early stage and mature private and small
public companies and through its asset management business is a manager of
debt and equity investments in private companies. American Capital provides
senior debt, mezzanine debt and equity to fund growth, acquisitions,
recapitalizations and securitizations. American Capital invests up to $400
million per company.
As of August 31, 2006, American Capital shareholders have enjoyed a
total return of 476% since the Company's IPO -- an annualized return of
21%, assuming reinvestment of dividends. American Capital has paid a total
of $1.2 billion in dividends and paid or declared $21.56 dividends per
share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible
financing should contact Mark Opel, Senior Vice President, Business
Development, at (800) 248-9340, or visit our website at
ABOUT GTCR GOLDER RAUNER
Founded in 1980, GTCR Golder Rauner is a leading private equity
investment firm and long-term strategic partner for management teams. GTCR
currently manages more than $8 billion of equity and mezzanine capital
invested in a wide range of companies and industries.
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. 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, national or
international economic conditions, or changes in the conditions of the
industries in which American Capital has made investments.
SOURCE American Capital Strategies Ltd.