American Capital Closes $414 Million Managed CLO
BETHESDA, Md., April 1, 2013
BETHESDA, Md., April 1, 2013 /PRNewswire/ --American Capital, Ltd. (Nasdaq:
ACAS) ("American Capital") announced today that an affiliate, ACAS CLO 2013-1,
Ltd. (the "CLO"), has closed on the sale of $414 million of collateralized
loan obligation bonds. The transaction was arranged by Deutsche Bank
Securities Inc. The CLO is externally managed by American Capital Leveraged
Finance Management, LLC, a subsidiary of American Capital Asset Management,
LLC, a wholly-owned portfolio company of American Capital, for an annual
management fee of 50 basis points of total assets.
The CLO has primarily invested the proceeds of the bonds in broadly syndicated
senior secured loans purchased in the primary and secondary markets.
"We are pleased that we materially improved pricing on the financing of our
latest CLO versus the CLO that we raised last September," said Mark Pelletier,
American Capital Managing Director, CDO and CLO Group. "We now manage three
CLOs and have investments in the equity of 25 CLOs."
"With this new CLO, American Capital Asset Management continues to expand its
funds under management and now manages six private funds and two public
REITs," said Malon Wilkus, American Capital Chairman and CEO.
The bonds sold by the CLO included AAA(sf) through B(sf) rated tranches, and a
non‑rated equity tranche of subordinated notes. American Capital Leveraged
Finance Management purchased $25.3million of the non‑rated equity tranche of
subordinated notes, with third party investors purchasing the remaining
$11million. The retention of an equity investment by American Capital
Leveraged Finance Management is intended to make ACAS CLO 2013-1 compliant
with risk retention rules applicable to credit institutions regulated in the
European Economic Area.
Tranche % of Total Capital Principal Amount ($) Moody's S&P Spread
Class A 59.50% 246,500,000 Aaa AAA L+1.18%
Class B-1 7.97% 33,000,000 N/A AA L+1.90%
Class B-2 4.83% 20,000,000 N/A AA L+3.36%
Class C 6.52% 27,000,000 N/A A L+2.75%
Class D 5.31% 22,000,000 N/A BBB L+3.60%
Class E 4.47% 18,500,000 N/A BB L+4.90%
Class F 2.66% 11,000,000 N/A B L+6.10%
Subordinated Notes 8.76% 36,300,000 N/A N/A N/A
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.
American Capital manages $18.6 billion of assets, including assets on its
balance sheet and fee earning assets under management by affiliated managers,
with $117 billion of total assets under management (including levered
assets). American Capital, through a wholly-owned portfolio company, manages
publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with
approximately a $13 billion market capitalization and American Capital
Mortgage Investment Corp. (Nasdaq: MTGE) with approximately a $1.5 billion
market capitalization. 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.
The securities referred to herein have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of such act. This announcement does not constitute
an offer to sell or the solicitation of any offer to buy any of the
securities. This announcement appears as a matter of record only.
This press release contains forward-looking information and statements.
Forward-looking statements give our current expectations and projections
relating to the Company's financial condition, results of operations, plans,
objectives, future performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to historical or
current facts. These statements may include words such as "anticipate,"
"estimate," "expect," "project," "plan," "intend," "believe," "confident,"
"may," "should," "can have," "likely," "future" and other words and terms of
similar meaning in connection with any discussion of the timing or nature of
future operating or financial performance or other events. Forward looking
statements are not guarantees of performance or results, and involve known and
unknown risks, uncertainties (some of which are beyond the Company's control),
assumptions and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements.
Should one or more of these risks or uncertainties materialize, the Company's
actual results may vary in material respects from those projected in any
forward-looking statements. A detailed discussion of these and other factors
that may affect future results is contained in our filings with the U.S.
Securities and Exchange Commission. Any forward-looking statement made by the
Company in this press release speaks only as of the date on which it is made.
The Company undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future developments or otherwise,
except as may be required by law.
Investor Relations - (301) 951-5917
Mark Pelletier, Managing Director, CDO and CLO Group – (212) 213-2009
SOURCE American Capital, Ltd.
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