American Capital Receives $79 Million from the Sale of Pan Am Holdings, Inc. and Generates a 16% Return on Its Investment

BETHESDA, Md., Aug. 23, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital" or the "Company") announced today that its portfolio company Pan Am Holdings, Inc. and its subsidiaries, including Pan Am International Flight Academy, Inc. (collectively, "Pan Am"), were sold to ANA Holdings Inc. ("ANA"), parent company of All Nippon Airways Co. Ltd., one of the leading airlines in the world.  American Capital and its affiliated funds received $94 million in debt and equity proceeds and realized a gain of $12 million from the transaction, subject to post-closing adjustments.  Of the total proceeds, American Capital received $79 million, realizing a gain of $7 million from the transaction, subject to post-closing adjustments.  American Capital's compounded annual rate of return earned on its debt and equity securities over the life of its investment was 16%, including interest, gains and fees. 

"We are extremely pleased with the results of our sale of Pan Am and excited for the company to join ANA, a leading aviation group with global operations," said Myung Yi, Managing Director, Special Situations Group.  "Our investment in Pan Am is an excellent example of our Special Situations Group's commitment to growing portfolio companies through leveraging American Capital's diverse industry knowledge, including aerospace, and working closely with management teams to expand companies' operations, market reach and service offerings."

"The combination of Pan Am and ANA creates a strong partnership and positions the new entity to meet the forecasted demand for pilots and training facilities worldwide," said Andrew Flesch, Principal, Special Situations Group.  "Pan Am's training expertise combined with ANA's extensive airline operations will provide a diversified service offering for airline customers."

American Capital first invested in the One Stop Buyout® of Pan Am in July 2006.  Founded in 1992, the Pan Am International Flight Academy, based in Miami, FL, grew out of the flight simulation and training center of the former Pan Am Airways.  The company offers airlines and individuals training on over 60 full-flight simulators with courses for Pilots, Cabin Crew, Mechanics and Aircraft Dispatchers.  Its principal customers are commercial passenger airlines and air freight carriers, which are primarily regional carriers in North and South America, and air traffic control authorities worldwide.  In September 2010, Pan Am acquired Aeroservice Aviation Center, a commercial simulation provider based in Miami, FL. In December 2012, Pan Am acquired Airline Career Academy, a leading pilot training academy specializing in JAA/EASA and FAA ab initio training.   The company has training facilities in Miami, FL, Orlando, FL, Memphis, TN, Minneapolis, MN, Las Vegas, NV, and Cincinnati, OH.  For more information on American Capital's investment in Pan Am, please visit:
http://www.americancapital.com/Pages/our_portfolio/companies/panam.aspx.

Since American Capital's 1997 IPO through the second quarter of 2013, the Company has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 360 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $19 billion of committed capital.  American Capital earned a 26% compounded annual return on the exit of its equity investments, including dividends, fees and net gains. For a chart showing a partial listing of American Capital's exited portfolio companies, please go to http://www.americancapital.com/Pages/our_portfolio/exited.aspx. 

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.

ABOUT ANA HOLDINGS
ANA is a holding company that includes the shares of other companies such as All Nippon Airways Co., Ltd, low cost carrier Peach Aviation Limited, and trading company All Nippon Airways Trading Co., Ltd. ANA has an established presence in pilot training services through panda Flight Academy Inc., which it established in 2011.

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:
Myung Yi, Managing Director, Special Situations Group (301) 951-6122
Andrew Flesch, Principal, Special Situations Group (301) 951-6122
Yaniv Zief, Vice President, Special Situations Group (301) 951-6122

SOURCE American Capital, Ltd.