BETHESDA, Md., Sept. 29, 2015 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital" or the "Company") announced today that in the third quarter of 2015 it made open market purchases of approximately 9.7 million shares of American Capital common stock, or 3.6% of the Company's outstanding shares as of June 30, 2015. The shares were purchased at an average price of $13.82 per share, totaling approximately $134.6 million.
On August 5, 2015, American Capital's Board of Directors modified its Share Repurchase Program (the "Program") beginning in the third quarter of 2015. Under the Program, American Capital will purchase between $300 million and $600 million of common stock at prices per share below 85% of its most recent quarterly net asset value per share, subject to certain conditions. The purchases will be made prior to the previously announced spin-off of American Capital Income, Ltd. by the Company.
Share repurchases under the Program started in the third quarter of 2011. Since the inception of the Program, American Capital has made open market purchases of 117.8 million shares, or 34.1% of the Company's outstanding shares as of June 30, 2011, at an average price of $12.05 per share, totaling $1.4 billion. Purchases starting in the third quarter of 2011 through June 2015 were $2.05 per share accretive to the Company's $20.35 net asset value ("NAV") per share as of June 30, 2015. Accretion from the purchases in the third quarter of 2015 will be disclosed in the Company's third quarter earnings release.
Under the Program, American Capital will consider quarterly setting an amount to be utilized for stock repurchases. Generally, the amount may be utilized for repurchases if the price of American Capital's common stock represents a discount to its NAV per share. In determining the quarterly amount, the Board of Directors will be guided by American Capital's net cash provided by operating activities in preceding quarters, its capital requirements associated with completion of its previously announced spin-off transaction, its cash position, operational issues, economic conditions, the current trading price of American Capital's common stock and other factors.
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 $23 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $81 billion of total assets under management (including levered assets). Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of total net book value. From its eight offices in the U.S., Europe and Asia, American Capital and its wholly owned affiliate, European Capital, will consider investment opportunities from $10 million to $600 million. For further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The statements regarding expected results of American Capital 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.
Contact: Investor Relations (301) 951-5917
SOURCE American Capital, Ltd.