BETHESDA, Md., April 9 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has provided $3,250,000 of senior subordinated debt to The L.A. Studios, Inc. the largest privately audio post-production operation in the Western United States. The financing provided by American Capital will be used to open a new facility in Santa Monica named "Margarita Mix Santa Monica." L.A. Studios, Inc. currently operates L.A. Studios and Margarita Mix in Hollywood and Zona Playa in Santa Monica. L.A. Studios, Inc. is an employee-owned company providing audio post-production services for the animation, television, radio, advertising and film trailer markets. The Company's clients include Disney, CBS Television, ABC, NBC, Saatchi & Saatchi, BBDO and Wieden & Kennedy. Recently they completed a series of trailers for the Academy-award winning movie Titantic.
ACAS provided $3,250,000 in senior subordinated notes with detachable warrants. LaSalle National Bank is a co-investor providing $5.0 million in senior debt.
Roland Cline, ACAS Principal said, "L.A. Studios, Inc. has a superior management team, a proven track record of quality service and some of the best post-production audio talent in the U.S. This investment will enable L.A. Studios to continue to be the market leader in audio post-production services by combining cutting edge techniques and talent with the latest technology in the audio post-production arena. ACAS is excited about supporting management and the employee owners with these expansion efforts."
Jesse Meli, Chief Operating Officer, will oversee the Margarita Mix Santa Monica development project. "Without ACAS' diligence, the dreams of our expansion would not have been realized."
American Capital President & CEO, Malon Wilkus commented, "L.A. Studios, Inc. is a good growth financing opportunity for ACAS. It allows us to team up with a strong management team and help grow a business that has already proved itself successful in a highly competitive market. The funding we provide will transform L.A. Studios, Inc. into the most technologically advanced audio post-production studio in the Western U.S."
This completes American Capital's eighth investment, totaling $54 million, since going public in August of last year. ACAS has funded three corporate buyouts and two add-on acquisitions as part of this total.
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