Bethesda, MD - October 3, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $27 million in Academy Events Services LLC ("Academy"), one of the largest tent manufacturers, and a leading tent and accessories lessor for the special events equipment rental market. American Capital's investment takes the form of a revolving loan facility, senior term loans, a senior subordinated loan with warrants, and preferred and common stock. Cambridge Capital Partners is the equity sponsor, and management is also investing in the equity. The transaction combines the assets of Academy Tent & Canvas Inc. and Event Technical Services Inc.
The predecessor companies, founded in 1981 and 1983, have established reputations for quality and service within the growing $7 billion special events equipment rental market. The company has provided tents to events that are American institutions: the Rose Bowl, the Academy Awards, the US Open, the Kentucky Derby, the Super Bowl and the Bell South Classic, as well as the 2002 Winter Olympics, where the company was sole tent and flooring provider. Headquarted in Vernon, CA, the company employs 260 in four facilities located in California and Kentucky, in addition to event specific temporary employees.
"This is American Capital's eighth transaction with an equity sponsor and the sixteenth new portfolio company investment year-to-date," said COO Ira Wagner. "Our ability to provide one-stop senior and subordinated debt financing to Cambridge Capital was critical to getting this transaction closed. Academy is a leading company in the special events industry and we are pleased to be supporting their growth strategy. We are also pleased to complete our first transaction with Cambridge Capital Partners."
American Capital has invested more than $500 million in the past twelve months, and approximately $350 million this year.
Click here for more information about American Capital's portfolio.
"American Capital is investing in a leader in a growing industry," said Mark Schindel, Principal. "The combination of the two companies should result in substantial cost savings as well as efficient and better focused marketing of products and services, which, along with management's and Cambridge's leadership, will drive growth."
"Since its inception, Academy has quickly risen to be a leader in its industry," said David Posner, Managing Partner of Cambridge Capital Partners. "With American Capital as our investment partner, we will build on Academy's leadership and assist its continuing growth by helping to expand its product line as well as its geographic presence."
Click here for more information about Academy's special events coverage.
You Can't Restate A Dividend
American Capital has a declared a $.66 per share dividend to be paid on October 1, 2002 to record holders as of September 12, 2002. This dividend is an 18% increase over the third quarter 2001 regular dividend of $0.56 per share. American Capital has paid or declared $9.64 in dividends since its August 1997 IPO at $15.00 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. American Capital is an equity partner in 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 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. 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.
