Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that its Board of Directors has declared a dividend on its common stock of $0.22 per share payable on January 16, 2001, to shareholders of record as of December 29, 2000. The total dividends for 2000 are $2.17 per share, an increase of 25% over 1999.
John Erickson, Chief Financial Officer of American Capital, said, "We are pleased to have been able to deliver a 25% dividend increase this year. The strong dividend results in part from the $4.3 million short-term capital gain from our o2wireless investment. As a Regulated Investment Company, American Capital is required to annually declare a dividend to distribute 98% of its investment company taxable income by December 31st to avoid paying an excise tax. Short-term capital gains are included in investment company taxable income and unlike a long-term capital gain, may not be taxed and retained by a RIC. The Company estimates that the extra dividend of $0.22 per share is sufficient to prevent the Company from paying an excise tax."
American Capital has paid four quarterly dividends in 2000 as set forth below in comparison to 1999.
2000 1999 1998 1997
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1st Quarter $0.45 $ 0.41 $0.25 N/A
2nd Quarter $0.49 $ 0.43 $0.29 N/A
3rd Quarter $0.49 $ 0.43 $0.32 N/A
4th Quarter $0.52 $ 0.44 $0.37 $0.21
Extra $0.22 $ 0.03 $0.11
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Total Dividend $2.17 $ 1.74 $1.34 $0.21
For more information on our dividends click here.
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to 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.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.
