BETHESDA,
Md., March 25, 2015
/PRNewswire/ -- American Capital, Ltd. ("American Capital" or the
"Company") (Nasdaq: ACAS) announced today that on February 23, 2015, its Board of Directors
reinstated authorization for share repurchases under its Share
Repurchase and Dividend Program. American Capital included the
written notice to stockholders required by Section 23(c) of the
Investment Company Act of 1940 regarding the possibility of share
repurchases over the next six months in the Proxy Statement for its
2015 Annual Meeting of Stockholders. The Company expects to
begin considering share repurchases under the Program in the second
quarter.
The Board adopted the Program in September 2011, but suspended repurchases in
March 2014 as the Company undertook a
process to evaluate potential capital requirements that could
result from its previously announced plan to consider
organizational changes to enhance shareholder value. On
November 5, 2014, the Company
announced that its Board had unanimously approved a plan to proceed
with the spin-off of new business development companies to its
shareholders, with American Capital continuing as a public asset
management company. The Board has since determined that it is
appropriate to reinstate authorization for share repurchases while
the Company seeks to accomplish the announced spin-off.
Under the Program, starting in the third quarter of 2011
through the first quarter of 2014, American Capital made open
market purchases of 101.6 million shares totaling $1.2 billion, or 29.4% of the Company's
outstanding shares of common stock as of June 30, 2011. At an average price of
$11.74 per share, these purchases
were $1.88 per share accretive to the
Company's $19.29 net asset value per
share as of March 31,
2014.
Going forward, under the Program, American Capital will
consider quarterly setting an amount to be utilized for stock
repurchases or dividends. Generally, the amount may be
utilized for repurchases if the price of American Capital's common
stock represents a discount to its net asset value per share, and
the amount may be utilized for the payment of cash dividends if the
price of American Capital's common stock represents a premium to
its net asset value 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 the spin-off
transaction, its cash position, operational issues, economic
conditions and the current trading price of American Capital's
common stock and other factors.
The Program may be suspended, terminated or modified at
any time for any reason. The Program does not obligate American
Capital to acquire any specific number of shares of the Company's
common stock, and all repurchases will be made in accordance with
SEC Rule 10b-18, which sets certain restrictions on the method,
timing, price and volume of stock repurchases.
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 $22 billion of assets,
including assets on its balance sheet and fee earning assets under
management by affiliated managers, with $86
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.
FORWARD LOOKING STATEMENTS
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.
Contact:
Investor Relations - (301) 951-5917
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SOURCE American Capital, Ltd.