American Capital Files for $1.5 Billion Mixed-Shelf

(Reuters) – American Capital Ltd (ACAS.O) plans to periodically sell $1.5 billion in debt securities, common shares and preferred stock, it said in a regulatory filing.

American Capital, a provider of financing to small and mid-sized businesses, said it intends to use the proceeds for general corporate purposes, acquisitions and to repay debt within the next two years.

Earlier this month, the struggling private equity lender posted a $547 million loss and said it remained in default on a $2.3 billion debt facility. 

The company has struggled as the recession has reduced the value of its portfolio companies to which it makes loans in return for equity stakes.

Under a shelf registration filed with the U.S. Securities and Exchange Commission, a company may sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale.

Shares of the company were trading flat at $2.87 Wednesday late morning on Nasdaq. (Reporting by Archana Shankar in Bangalore; Editing by Anne Pallivathuckal)