Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that subject to stockholder approval, it will initiate a Directed Share Subscription Program. The program will allow American Capital stockholders to participate directly in certain initial public offerings of stock by ACAS portfolio companies. American Capital's stockholders will be asked to consider certain amendments to the company's investment policies so as to allow the program at the ACAS' annual stockholders' meeting, to be held on May 3, 2000.
"The Directed Share Subscription Program is a continuation of our commitment to maximize stockholder value," said Malon Wilkus, American Capital's Chairman and Chief Executive Officer. "Through an investment in American Capital, we make available to our stockholders the opportunity to invest in a diversified portfolio of mid-market companies. Now we are adding the choice to invest in particular companies if they emerge into the public market."
ACAS will seek to offer the opportunity to its stockholders to subscribe directly for shares of stock being sold in initial public offerings by ACAS portfolio companies. However, there is no assurance that such an opportunity will be made available in any particular company.
Participation by ACAS in the program may cause ACAS to be an underwriter under Federal securities laws. Because such an activity is prohibited by ACAS' current investment policies, ACAS stockholders will be asked to consider an amendment to those policies at the annual stockholders meeting. The program will only be implemented if such an amendment is approved.
Click here for additional information on the directed share subscription program.
American Capital is a buyout and specialty finance company. ACAS acts as an equity partner in management and employee buyout transactions; invests debt and equity in support of companies led by sophisticated private equity firms, and makes strategic investments in private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Capital.com, Inc., a portfolio company of American Capital Strategies, Ltd. (Nasdaq:ACAS), is a business finance portal where premier financing sources compete to provide receivable and inventory financing, machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing for growth, acquisitions, management buyouts, liquidity, recapitalizations, ESOP transactions and SBA loans. Companies in need of financing or information about financial services should contact Capital.com at info@Capital.com, or call Harry Kelly, vice president, at (646) 935-1100.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.
