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American Capital Reaches Deal with Lenders

NEW YORK (Reuters) – Struggling private equity lender American Capital Ltd said on Thursday it has entered into forbearance agreements with some of its lenders after receiving notices of acceleration concerning $393 million of privately placed notes.

The company reached deals with these lenders, which added a $21.6 million “make-whole” payment to the outstanding principal, and agreed to pay default interest on all of the privately placed notes back-dated to March 30.

The notes were due on various dates and included $82 million, which was originally scheduled to mature just two days after the date of the acceleration notice.

The accelerated notes represent 17 percent of its $2.4 billion unsecured debt and 9 percent of its total consolidated debt outstanding as of June 30.

(Reporting by Yinka Adegoke; Editing Bernard Orr)