Interim Management Statement -- European Capital Limited Reports 2011 Net Operating Income of Euro 53 Million and Net Loss of Euro (2) Million

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Mar 23, 2012, 02:20 ET

ST. PETER PORT, Guernsey, March 23, 2012 /PRNewswire/ -- European Capital Limited ("European Capital" or the "Company") today issues an Interim Management Statement announcing net operating income ("NOI") for the half year and year ended 31 December 2011 of euro 14 million and euro 53 million, respectively. Net loss for the half year and year were euro (88) million and euro (2) million, respectively. As at 31 December 2011, net asset value ("NAV") was euro 627 million, a 12%, or euro 88 million decrease from the 30 June 2011 NAV of euro 715 million and a euro 2 million decrease from the 31 December 2010 NAV of euro 629 million.

H2 2011 FINANCIAL SUMMARY

euro 14 million NOI
euro (13) million net realised loss on investments
euro (102) million net unrealised depreciation on investments
euro (88) million net loss
euro 79 million of cash proceeds from realisations

2011 FINANCIAL SUMMARY

euro 53 million NOI
- euro 5 million, or 11%, increase over 2010
euro (29) million net realised loss on investments
- euro 23 million improvement over 2010
euro (4) million net unrealised depreciation on investments
- euro 93 million decline over 2010
euro (2) million net loss
- euro 107 million decline over 2010
euro 194 million of cash proceeds from realisations
- euro 89 million less than 2010
euro 288 million of AAA rated debt raised
euro 627 million NAV at year end
- euro 2 million decrease over Q4 2010
0.7:1 debt to equity at year end

"Considering the volatility in the eurozone during this past year, I am pleased with our performance," said Malon Wilkus, Chairman and Chief Executive Officer. "We were able to strengthen our balance sheet by generating euro 194 million of cash realisations, reducing our leverage while our net asset value remained relatively unchanged. Despite this challenging environment, we remain focused on improving our balance sheet, growing our portfolio companies and originating high quality investment opportunities."

PORTFOLIO VALUATION

For the year ended 31 December 2011, net unrealised depreciation of investments totalled euro (4) million. In the first half of the year there was appreciation of euro 98 million on our private finance portfolio mainly driven by improvements in the performance of portfolio companies. This first half appreciation has reversed in the second half of the year with total depreciation of euro 102 million. This depreciation has resulted from the negative effect on public markets of economic uncertainty in the eurozone and its effect on the performance at certain portfolio companies.

"During the year, we have continued to strengthen our balance sheet," said Ira Wagner, President. "We have improved our asset coverage ratio to 243%. We continued to see liquidity in the portfolio during the year and are focused not only on maximising the value of our current investments but also on originating new opportunities to generate shareholder value. This has been made possible through the debt refinancing that we completed in June last year."

PORTFOLIO LIQUIDITY AND PERFORMANCE

In the second half of 2011, euro 79 million of cash proceeds were received from realisations of portfolio investments. The Company made euro 3 million in new committed investments in the second half of the year to support the current portfolio.

Since inception, European Capital has invested euro 3.3 billion in 91 portfolio companies. European Capital has realised euro 1.9 billion from the portfolio since inception, including senior debt syndications. Out of the euro 1.9 billion we have exited fully 41 portfolio companies, realising an aggregate of euro 1.2 billion comprising:

euro 789 million of principal repayments;
euro 166 million from loan syndications and sales;
euro 123 million of collections of PIK notes and dividends; and
euro 111 million from sales of equity.

These exits achieved an aggregate IRR of 9.7%. The equity investments of these exited portfolio companies have achieved a 29.0% IRR.

European Capital's portfolio as of 31 December 2011 at fair market value was euro 1.0 billion, with an average investment size of euro 19 million per portfolio company. European Capital's largest investment represents 13.8% of total investment assets at fair value and the ten largest investments represent 54.3% of total investment assets at fair value as of 31 December 2011.

During the year to 31 December 2011, European Capital:

Realised proceeds of euro 194 million, compared with euro 283 million in 2010. The proceeds were at an average of 4.9% above the prior half year's valuations of the realised investments. The realisations proceeds for the year included:
- euro 53 million repayment of a debt investment in Norma, resulting in a 13% annual mezzanine rate of return;
- euro 30 million repayment of a debt investment in Gondola, resulting in a 10% annual senior and mezzanine rate of return;
- euro 25 million repayment of a debt investment in Integrated Dental Holdings resulting in a 13% annual mezzanine rate of return;
- euro 23 million repayment of a debt investment in Flint Ink resulting in a 10% annual senior and mezzanine rate of return.
Invested euro 19.7 million in existing portfolio companies for the year, compared with euro 2.4 million in the same period of 2010.

As at 31 December 2011, loans with a cost of euro 245 million and a fair value of euro 40 million were on non-accrual, representing 5.6% of total loans at fair value, compared to euro 301 million cost and euro 77 million fair value of non-accrual loans, representing 8.9% of total loans at fair value as of 31 December 2010.

DEBT REFINANCING

In the first half of 2011, European Capital's consolidated subsidiary ECAS 2011-1 Loan B.V. ("ECAS 2011-1") sold and issued euro 288 million of AAA-rated secured floating rate notes, backed by assets with a par value of euro 865 million originated by other European Capital consolidated subsidiaries. The notes were rated by Standard & Poor's and comply with recent regulations affecting securitisations. The notes have a coupon payment of Euribor plus 320 basis points, payable semi-annually, and are due in 2024. The proceeds of the sale were used to refinance two existing debt obligations of European Capital consolidated subsidiaries, including a secured senior multicurrency term loan facility and an issuance of secured senior notes, as well as to make new investments.

"Our balance sheet continues to strengthen," said Juan Carlos Morales Cortes, Director. "The refinancing has provided us with long term certainty for our borrowing. The majority of our borrowing now have a maturity beyond 2022. The refinancing also provides us with liquidity to invest in new opportunities and will allow us to invest in existing portfolio companies for organic growth and add-on acquisitions, as well as to make new mezzanine investments and One-Stop Buyouts® of operating companies."

The terms of this securitisation allow for the reinvestment of proceeds from sale or repayment of investments held by ECAS 2011-1. Reinvestment must be made into eligible assets in compliance with certain criteria. The reinvestment period is for a period of two years from the date of the securitisation in June 2011; with the final application of such proceeds to be reinvested by December 2013, in line with the reinvestment criteria. As at 31 December 2011, there were proceeds available for reinvestment of euro 108 million, which has risen to euro 137 million as of the date of this release. As of the date of this release euro 11 million of the realised proceeds has been committed.

EUROPEAN CAPITAL LIMITED
CONSOLIDATED BALANCE SHEETS
As of 31 December 2011, 30 June 2011 and 31 December 2010
(in thousands)

	31 December 2011	30 June 2011	31 December 2011 Versus 30 June 2011		31 December 2010	31 December 2011 Versus 31 December 2010
	euro	euro	euro	%	euro	euro	%
	(audited)	(unaudited)			(audited)
Assets
Investments at fair value (Cost basis of euro 1,555,191, euro 1,638,416 and euro 1,721,230, respectively)	973,607	1,099,214	(125,607)	-11%	1,075,766	(102,159)	-9%
Cash and cash equivalents	2,803	2,257	546	24%	3,006	(203)	-7%
Restricted cash and cash equivalents	142,056	69,653	72,403	104%	21,380	120,676	NM
Interest receivable	5,496	7,848	(2,352)	-30%	5,282	214	4%
Derivatives agreements at fair value	126	3,021	(2,895)	-96%	10,290	(10,164)	-99%
Other	4,529	6,522	(1,993)	-31%	8,316	(3,787)	-46%
Total assets	1,128,617	1,188,515	(59,898)	-5%	1,124,040	4,577	0%
Liabilities and Shareholder's Equity
Debt (maturing within one year euro 2,356, euro 1,704 and euro 224,742, respectively)	439,017	429,685	9,332	2%	484,872	(45,855)	-9%
Due to European Capital Financial Services (Guernsey) Limited	1,439	1,818	(379)	-21%	1,351	88	7%
Derivatives agreements at fair value	24,272	915	23,357	NM	3,283	20,989	NM
Other	37,153	41,266	(4,113)	-10%	5,458	31,695	NM
Total liabilities	501,881	473,684	28,197	6%	494,964	6,917	1%
Shareholder's equity:
Share Capital	224,475	224,475	-	0%	224,475	-	0%
Undistributed net realised earnings	1,078,718	1,087,988	(9,270)	-1%	1,064,903	13,815	1%
Net unrealised foreign currency depreciation	(110,079)	(133,373)	23,294	17%	(98,147)	(11,932)	-12%
Net unrealised depreciation of investments	(566,378)	(464,259)	(102,119)	-22%	(562,155)	(4,223)	-1%
Total shareholder's equity	626,736	714,831	(88,095)	-12%	629,076	(2,340)	0%
Total liabilities and shareholder's equity	1,128,617	1,188,515	(59,898)	-5%	1,124,040	4,577	0%

NM = Not Meaningful

EUROPEAN CAPITAL LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months and Year Ended 31 December 2011 and 2010
(in thousands)
(unaudited)

	Six Months Ended		Six Months Ended		Year ended		Year Ended
	31 December		31 December		31 December		31 December
	2011	2010	2011 Versus 2010		2011	2010	2011 Versus 2010
	euro	euro	euro	%	euro	euro	euro	%
OPERATING INCOME:
Interest and dividend income	39,484	62,215	(22,731)	-37%	105,724	118,457	(12,733)	-11%
Fee and other income	407	921	(514)	-56%	915	1,385	(470)	-34%
Total operating income	39,891	63,136	(23,245)	-37%	106,639	119,842	(13,203)	-11%
OPERATING EXPENSES:
Interest	13,584	17,728	(4,144)	-23%	26,471	46,492	(20,021)	-43%
Management fee	11,686	8,101	3,585	44%	22,666	17,313	5,353	31%
General and administrative	1,015	3,006	(1,991)	-66%	4,718	6,370	(1,652)	-26%
Corporate restructuring costs	-	(162)	162	100%	-	1,858	(1,858)	-100%
Total operating expenses	26,285	28,673	(2,388)	-8%	53,855	72,033	(18,178)	-25%
OPERATING INCOME BEFORE INCOME TAXES	13,606	34,463	(20,857)	-61%	52,784	47,809	4,975	10%
Provision for income taxes	(44)	(67)	23	34%	(88)	(146)	58	40%
NET OPERATING INCOME	13,562	34,396	(20,834)	-61%	52,696	47,663	5,033	11%

Net realised loss on extinguishment of debt	-	-	-	NM	(8,240)	-	(8,240)	100%

Net realised loss on investments
Portfolio company investments	(13,208)	(60,071)	46,863	78%	(28,826)	(52,225)	23,399	45%
Foreign currency translations	(9,335)	5,756	(15,091)	-262%	(5,307)	22,786	(28,093)	-123%
Derivative agreements	(289)	(180)	(109)	-61%	3,492	(435)	3,927	NM
Total net realised loss on investments	(22,832)	(54,495)	31,663	58%	(30,641)	(29,874)	(767)	-3%

NET REALISED (LOSS) EARNINGS	(9,270)	(20,099)	10,829	54%	13,815	17,789	(3,974)	-22%

Net unrealised (depreciation) appreciation on investments
Portfolio company investments	(101,955)	93,393	(195,348)	-209%	(3,624)	89,354	(92,978)	-104%
Foreign currency translations	23,294	(29,377)	52,671	179%	(11,932)	(4,965)	(6,967)	-140%
Derivative agreements	(164)	1,252	(1,416)	-113%	(599)	2,400	(2,999)	-125%
Total net unrealised (depreciation) appreciation on investments	(78,825)	65,268	(144,093)	-221%	(16,155)	86,789	(102,944)	-119%

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ("NET EARNINGS")	(88,095)	45,169	(133,264)	-295%	(2,340)	104,578	(106,918)	-102%


NM = Not Meaningful

EUROPEAN CAPITAL LIMITED
OTHER FINANCIAL INFORMATION
Six Months Ended 31 December 2011, 30 June 2011 and 31 December 2010
(in thousands)

			Six Months Ended			Six Months Ended
	Six Months Ended		31 December 2011 Versus			31 December 2011 Versus
	31 December 2011	30 June 2011	30 June 2011		31 December 2010	31 December 2010
	euro	euro	euro	%	euro	euro	%

New Investments:
Subordinated debt	212	-	212	100%	-	212	100%
Convertible Bond	223	6,300	(6,077)	-96%	-	223	100%
Preferred Equity	-	10,053	(10,053)	-100%	555	(555)	-100%
Common Equity	2,874	-	2,874	100%	1,000	1,874	187%
Total	3,309	16,353	(13,044)	-80%	1,555	1,754	113%

Add-on Financing for Acquisitions	297	-	297	100%	-	297	100%
Add-on Financing for Recapitalisations	3,012	16,353	(13,341)	-82%	1,555	1,457	94%
Total	3,309	16,353	(13,044)	-80%	1,555	1,754	113%

Realisations:
Principal Prepayments	47,688	75,824	(28,136)	-37%	90,888	(43,200)	-48%
Payment of Accrued Payment-in-kind Interest and Dividends and Original Issue Discount	14,338	17,614	(3,276)	-19%	23,814	(9,476)	-40%
Sale of Equity Investments	1,293	-	1,293	100%	17,138	(15,845)	-92%
Sale of Loans	15,992	21,046	(5,054)	-24%	1,558	14,434	NM
Total	79,311	114,484	(35,173)	-31%	133,398	(54,087)	-41%

Appreciation, Depreciation, Gains and Losses:
Gross Realised Gains	419	-	419	100%	7,677	(7,258)	-95%
Gross Realised Losses	(13,627)	(15,618)	1,991	13%	(67,749)	54,122	80%
Portfolio Net (Losses) Gains	(13,208)	(15,618)	2,410	15%	(60,072)	46,864	78%
Foreign Currency	(9,335)	4,028	(13,363)	-332%	5,756	(15,091)	-262%
Derivative Agreements	(289)	3,781	(4,070)	-108%	(179)	(110)	-61%
Extinguishment of debt	-	(8,240)	8,240	100%	-	-	100%
Net Realised Losses	(22,832)	(16,049)	(6,783)	-42%	(54,495)	31,663	58%

Gross Unrealised Appreciation of Portfolio Investments	40,142	133,965	(93,823)	-70%	95,928	(55,786)	-58%
Gross Unrealised Depreciation of Portfolio Investments	(158,510)	(53,870)	(104,640)	-194%	(63,491)	(95,019)	-150%
Reversal of Prior Period Unrealised (Depreciation) Appreciation Upon Realisation	16,413	18,236	(1,823)	-10%	60,957	(44,544)	-73%
Net Unrealised Depreciation of Portfolio Investments	(101,955)	98,331	(200,286)	-204%	93,394	(195,349)	-209%
Foreign Currency	23,294	(35,226)	58,520	166%	(29,377)	52,671	179%
Derivative Agreements	(164)	(435)	271	62%	1,252	(1,416)	-113%
Net Unrealised Depreciation of Investments	(78,825)	62,670	(141,495)	-226%	65,269	(144,094)	-221%
						-
Net Gains, Losses, Appreciation and Depreciation	(101,657)	46,621	(148,278)	-318%	10,774	(112,431)	-1044%

Other Financial Data:
Net Asset Value	626,736	714,831	(88,095)	-12%	629,076	(2,340)	0%
Financial Liabilities	439,017	429,685	9,332	2%	484,872	(45,855)	-9%
Asset Coverage Ratio	243%	266%			230%
Debt to Equity Ratio	0.7 x	0.6 x			0.8 x
Credit Quality:
Weighted Average Effective Interest Rate on Debt Investments	6.5%	8.9%	-2.4%	-27%	8.8%	-2.3%	-25.9%
Loans on Non-Accrual at Cost	244,947	199,985	44,962	22%	300,669	(55,722)	-19%
Loans on Non-Accrual at Fair Value	39,940	65,190	(25,250)	-39%	77,180	(37,240)	-48%
Non-Accrual Loans at Cost as a Percentage of Total Loans	23.0%	17.3%			23.8%
Non-Accrual Loans at Fair Value as a Percentage of Total Loans	5.6%	7.8%			8.9%
Return on Equity:
LTM Net Operating Income Return on Average Equity at Cost	4.2%	5.8%			3.7%
LTM Realised Earnings Return on Average Equity at Cost	1.1%	0.2%			1.4%
LTM Earnings Return on Average Equity	-0.4%	20.4%			18.0%
Current Half Year Net Operating Income Return on Average Equity at Cost Annualised	2.2%	6.2%			5.4%
Current Half Year Realised Earnings Return on Average Equity at Cost Annualised	-1.5%	3.6%			-3.2%
Current Half Year Earnings Return on Average Equity Annualised	-26.2%	25.2%			15.1%

NM = Not Meaningful

EUROPEAN CAPITAL LIMITED
STATIC POOL INFORMATION
Portfolio Statistics for Investments Made in Each of the Following Years
(all numbers in thousands of euro, unless otherwise stated)

Portfolio statistics (1) (15)	2005	2006	2007	2008	Aggregate

IRR at Fair Value of All Investments (2) (14)	11.7%	5.1%	(2.3)%	2.0%	1.7%
IRR of Exited Investments (3) (14)	14.4%	8.3%	(0.5)%	(0.5)%	5.6%
IRR at Fair Value of Equity Investments only (2) (4) (5) (14)	4.9%	8.5%	(16.1)%	(60.1)%	(1.4)%
IRR of Exited Equity Investments only (3) (4) (5) (14)	21.1%	18.8%	(45.1)%	0.0%	(16.4)%
IRR at Fair Value of All One Stop Buyout® Investments (2) (14)	(24.7)%	10.0%	(21.6)%		(1.0)%
IRR at Fair Value of Current One Stop Buyout® Investments (2) (14)	(27.8)%	7.6%	(10.0)%		2.3%
IRR at Exited One Stop Buyout® Investments (3) (14)	6.9%	16.9%	(100.0)%		(22.5)%
Committed Investments (14)	240,673	1,236,637	1,511,315	333,927	3,322,552
Total Exits and Prepayments of Comitted Investments (14)	223,645	899,917	643,314	83,041	1,849,917
Total Interest, Dividends and Fees Collected (14)	81,216	179,371	307,136	72,244	639,967
Total Net Realised Gains (Loss) on Investments	11,750	(55,611)	(65,397)	(27,797)	(137,055)
Current Cost of Investments	17,111	405,847	877,308	254,925	1,555,191
Current Fair Value of Investments	539	304,438	457,237	211,393	973,607
Current Fair Value of Investments as a % of Total Investments at Fair Value	0.1%	31.3%	47.0%	21.7%	100.0%
Net Unrealised Depreciation (16)	(16,550)	(58,184)	(391,345)	(61,496)	(527,575)
Non-Accruing Loans at Cost	9,212	13,860	210,323	11,552	244,947
Non-Accruing Loans at Fair Value	-	2,127	31,435	6,378	39,940
Equity Interest at Fair Value (4)	257	167,832	78,035	1,826.00	247,950
Debt to adjusted EBITDA (4) (7) (8) (9) (12)	5.6	4.1	6.1	5.3	5.3
Interest Coverage (4) (9) (12)	0.0	5.8	6.2	3.2	5.4
Debt Service Coverage (4) (9) (12)	0.0	3.0	5.0	2.2	3.8
Average Age of Companies (4) (12)	20	63	46	39	50
Diluted Ownership Percentage (4) (13)	0.2%	61.9%	13.5%	0.3%	25.8%
Average Revenue (4) (10) (12)	733,870	261,365	251,552	199,837	243,670
Average Adjusted EBITDA (4) (7) (12)	134,266	32,112	45,383	37,802	39,635
Total Revenues (4) (10)	1,202,092	5,850,669	13,271,151	1,325,965	21,649,877
Total Adjusted EBITDA (4) (7)	205,301	626,848	2,318,982	241,752	3,392,883
% Senior Loans (4) (9) (11)	0.0%	25.4%	35.5%	0.0%	25.2%
% Loans with Lien (4) (9) (11)	100.0%	100.0%	100.0%	100.0%	100.0%

Majority Owned Portfolio Companies ("MOPC") (6)	2005-2008 Static Pools Aggregate
Number of MOPC	8
Total Revenues (10)	633,966
Total Gross Profits (10)	320,068
Total Adjusted EBITDA (7)	83,988
Total Capital Expenditure (10)	12,284
Total Current European Capital Investment in MOPC At Fair Value	294,035
Diluted Ownership Percentage of European Capital in MOPC (13)	74.6%
Total Cash	64,377
Total Assets	752,800
Total Debt	504,680
Total Third Party Debt at Cost	368,323
Total Shareholders' Equity at Fair Value	256,754

(1)	Static pool classification is based on the year the initial investment was made. Subsequent add-on investments are included in the static pool year of the original investment. There were no new investments made in 2009 to 2011.
(2)	Assumes investments are exited at current US GAAP fair value.
(3)	Includes fully exited investments of existing portfolio companies.
(4)	Excludes investments in Structured Products.
(5)	Excludes equity investments that are the result of conversions of debt and warrants received with the issuance of debt.
(6)	Majority Owned Portfolio Company ("MOPC") investments represents investments in which European Capital, or its affiliates, have a fully diluted ownership percentage of 50% or more or has over 50% board representation at the portfolio company.
(7)	Adjusted EBITDA may reflect certain adjustments to the reported EBITDA of a portfolio company for non-recurring, unusual or infrequent items or other pro-forma items or events to normalize current earnings which a buyer may consider in a change in control transactions. These adjustments may be material and are highly subjective in nature. Portfolio company reported EBITDA is for the most recently available twelve months, or when appropriate, the forecasted twelve months or current annualized run-rate
(8)	For portfolio companies with a nominal Adjusted EBITDA amount, the portfolio company's maximum debt leverage is limited to 15 times Adjusted EBITDA.
(9)	Excludes investments in which we own only equity.
(10)	For the most recent twelve months, or when appropriate, the forecasted twelve months.
(11)	As a percentage of our total debt investments.
(12)	Weighted average based on fair value.
(13)	Weighted average based on fair value of equity investments.
(14)	Non euro-denominated amounts are retranslated at the exchange rate ruling at the date of original investment.
(15)	Non euro-denominated balances, other than those referred to in (14), are retranslated at the exchange rate ruling at the balance sheet date.
(16)	Balance Sheet appreciation (depreciation) of investments excluding foreign exchange revaluation.

IMPORTANT DISCLOSURES

NAV

Any valuation information relating to the portfolio companies of European Capital stated or referred to in this release has been determined by the Board of European Capital in good faith, on a basis consistent with past practice and for the purposes of complying with its reporting obligations under applicable laws.

Forward-looking statements

This document may contain "forward-looking statements." By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond European Capital's control or which cannot be estimated precisely. These factors include, but are not limited to, uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, and changes in the conditions of the industries in which European Capital has made investments. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any such forward-looking statements.

Performance data quoted above represents past performance of European Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in European Capital will likely fluctuate. Additionally, European Capital's current performance may be lower or higher than the performance data quoted above.

Basis of preparation

This interim management statement has been prepared to provide further transparent information about European Capital and should not be relied on by any person for any other purpose. Certain financial information in this interim management statement is based on unaudited management accounts. Nothing in this document is intended to be, or should be construed as, a profit forecast.

ABOUT EUROPEAN CAPITAL

European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with euro 1.0 billion in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd ("American Capital"). It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG" or the "Investment Manager"), a wholly-owned affiliate of American Capital. The Investment Manager has offices in London and Paris. As of 31 December 2011 the Investment Manager had 5 investment teams with 20 investment professionals and employed 26 support staff. European Capital and its affiliates will consider senior and mezzanine debt investment opportunities from 5 million to 40 million in either euros or sterling and up to 100 million for One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.com.

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. Founded in 1986, American Capital has $68 billion in assets under management and seven offices in the U.S. and Europe American Capital and its affiliates will consider investment opportunities up to $300 million. For further information, please refer to www.AmericanCapital.com.

Contact: European Capital Financial Services Limited
+ 44 207 539 7000

Ira Wagner, President
Juan Carlos Morales Cortes, Director
Richard Smith, Finance Director

SOURCE European Capital Limited