American Capital Realizes 24% Return on Investment in ACE Cash Express
May 26 2004 - 7:39PM
PR Newswire (US)
American Capital Realizes 24% Return on Investment in ACE Cash
Express BETHESDA, Md., May 26 /PRNewswire-FirstCall/ -- American
Capital Strategies Ltd. (NASDAQ:ACAS) announced today that it has
been repaid its $40 million senior and subordinated debt
investments in ACE Cash Express Inc. (NASDAQ:AACE), realizing a 24%
compounded annual rate of return. ACE, one of the nation's largest
owners, operators and franchisors of retail financial services
stores, has used proceeds from its recent successful follow-on
public stock offering to repay the American Capital notes. The 24%
return includes the interest and fees received over the life of
American Capital's investment in the company. In March 2003,
American Capital invested $40 million to recapitalize ACE's term
loans and senior notes. For more information about the Ace
transaction, go to:
http://www.acas.com/our_portfolio/companies/company.cfm?p_comp=94
For a chart detailing American Capital's capital gains and losses,
go to http://www.acas.com/investor_relations/capital_gains.cfm. For
a chart listing American Capital's exited portfolio companies, go
to http://www.acas.com/our_portfolio/exited_companies.cfm. Through
the first quarter of 2004, American Capital enjoyed a 14%
compounded annual return on 59 announced exits and repayments of
senior debt, subordinated debt and equity, totaling $708 million
since its August 1997 IPO. In the same period, American Capital
exited or received prepayments totaling 25% of all announced
investments made since its 1997 IPO. Thirty-one percent of these
exits and prepayments were from portfolio companies that had at one
time been either a loan grade 1 or 2 in its four point loan grading
system, with 1 being the lowest loan grade. As of April 30, 2004,
American Capital shareholders have enjoyed a total return of 213%
since the Company's IPO -- an annualized return of 19%, assuming
reinvestment of dividends. American Capital has declared a total of
$14.52 per share in dividends since its August 1997 IPO. American
Capital is a publicly traded buyout and mezzanine fund with capital
resources of approximately $3 billion. American Capital is an
investor in and sponsor of management and employee buyouts; invests
in private equity sponsored buyouts, and provides capital directly
to private and small public companies. American Capital provides
senior debt, mezzanine debt and equity to fund growth, acquisitions
and recapitalizations. Companies interested in learning more about
American Capital's flexible financing should contact Mark Opel,
Principal, at 800-248-9340, or visit the website at
http://www.americancapital.com/. This press release contains
forward-looking statements. The statements regarding expected
results of American Capital Strategies are subject to various
factors and uncertainties, including the uncertainties associated
with the timing of transaction closings, changes in interest rates,
availability of transactions, changes in regional or national
economic conditions, or changes in the conditions of the industries
in which American Capital has made investments. DATASOURCE:
American Capital Strategies Ltd. CONTACT: John Erickson, Chief
Financial Officer, +1-301-951-6122, or Brian Maney, Director,
Corporate Communications, +1-301-951-6122, both of American Capital
Strategies Ltd. Web site: http://www.americancapital.com/
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