BETHESDA, Md., Feb.. 3 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that it has obtained a commitment from First Union Capital Markets for a fully underwritten $100 million credit facility. Once closed, the First Union facility will replace the existing LaSalle National Bank credit facility. American Capital expects to execute definitive documentation in several weeks, subject to normal conditions of closing.
American Capital Chief Financial Officer, John Erickson said, ``We are extremely pleased with this facility. After thorough due diligence First Union developed a high regard for the quality of our investments. First Union understands our history, business plan and future needs and we appreciate their strong commitment to American Capital.''
American Capital CEO Malon Wilkus said, ``In August 1997, we raised $150 million through our IPO. Once the First Union facility closes, we will have over $250 million in capital resources. The First Union facility allows American Capital to continue its rapid response to the needs of middle market companies. The pricing on the facility is very much in line with our business plan.''
American Capital's portfolio companies reflect the broad diversity of businesses in the middle market. Please click here for more information about American Capital's portfolio.
Yesterday, American Capital announced that its 4th Quarter, 1998 net operating income increased 99% over the same quarter of 1997, and that it paid a total of $1.34 in dividends in 1998. For more information on American Capital's dividend history, please click here.
American Capital is a buyout and specialty finance company with capital resources exceeding $190 million. American Capital invests $3 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at 781-862-4447 or visit its website at www.American-Capital.com or its shareholder site at www.ACAS1.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
