Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that its portfolio company Centennial Broadcasting LLC has repaid $18.9 million in senior subordinated debt. Inclusive of fees and interest, American Capital realized a compounded annual rate of return of 24%.
American Capital invested in Centennial, an owner and operator of radio stations, in December 1998 as part of a recapitalization. At that time, Centennial acquired a group of radio stations as part of their strategy of assembling and managing clusters of radio stations in top 50 markets. Beasley Broadcast Group (Nasdaq: BBGI) is purchasing Centennial's radio stations for approximately $113.5 million. The transaction includes repayment of Centennial's debt to American Capital. Beasley anticipates that the purchase will allow them to expand their market position.
"The Centennial exit is a strong start to the new year," said American Capital CFO John Erickson. "We continue to build a solid track record of capital appreciation. Of our $165 million 1997 and 1998 investment pool, we have realized returns upon exiting $42 million of our investments in Four-S Baking, Specialty Transportation Services, Electrolux and Centennial of 35%, 44%, 29% and 24%, respectively."
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.
