American Capital Refinances Secured Debt with $600 Mln Loan

American Capital said Wednesday that it completed the refinancing of all its recourse debt with a new four-year $600 million institutional term loan. In addition to repaying the recourse debt, proceeds will be used for working capital and general corporate. Also, American Capital said it has obtained a new four-year $250 milion senior secured revolving credit facility. J.P. Morgan Chase Bank was administrative agent and collateral agent for both loans.

PRESS RELEASE

American Capital, Ltd. (Nasdaq: ACAS) (“American Capital” or the “Company”) announced today that it has completed the refinancing of all of its recourse debt with a new four-year $600 million institutional term loan facility with J.P. Morgan Chase Bank, N.A. as administrative agent and collateral agent. J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC were joint lead arrangers and joint bookrunners on the transaction. Citibank, N.A., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA also served as managing agents. In addition to repaying the existing recourse debt, the proceeds will be used for working capital and general corporate purposes.
The term loan facility is priced at LIBOR plus 4.25%, with a LIBOR floor of 1.25%, and has a first lien on certain non-securitized assets of the Company and a second lien on most of its remaining non-securitized assets.
American Capital also announced that it has obtained a new four-year $250 million senior secured revolving credit facility with J.P. Morgan Chase Bank, N.A. as administrative agent and collateral agent. J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC were joint lead arrangers and joint bookrunners on the transaction. Citibank, N.A., Credit Suisse Securities (USA) LLC, Bank of America, N.A. and Goldman Sachs Bank USA served as managing agents. Draws on the revolving credit facility will be used for working capital and general corporate purposes.
The revolving credit facility has a three year revolving period and may be expanded through additional commitments up to $375 million. The revolving credit facility is priced at LIBOR plus 3.75%, and has a first lien on certain non-securitized loan assets of the Company and a second lien on most of its remaining non-securitized assets.
“We are extremely pleased to announce our new term debt financing and revolving credit facility,” said Malon Wilkus, Chairman and CEO. “We enjoyed strong demand and received the support of an excellent roster of debt investors. These facilities increase our capital availability and lower our interest cost, which will enhance our ability to make attractive new investments.”
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 $17 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $100 billion of total assets under management (including levered assets). From its seven offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $500 million. For further information, please refer to www.AmericanCapital.com.

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