Bethesda, MD - December 19, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $27 million in Futurelogic Inc., a leading thermal printing manufacturer with dominant market share in the gaming industry and serving various other markets. American Capital's investment takes the form of a revolving credit facility, senior term loan, senior subordinated debt with warrants, junior subordinated debt and common equity. ClearLight Partners is the equity sponsor. Futurelogic founding management will retain significant equity ownership. Thermal printing is the accepted technology for transaction-based receipt printing, such as vouchers for slot machine winnings, pay-at-the-pump gasoline purchases, or for certain labeling, such as bar codes used in inventory tracking or shipping.
"Futurelogic is exactly the sort of investment at which American Capital excels: we are backing entrepreneurs who have succeeded in growing their company with outstanding proprietary products, and we are supporting an equity sponsor with one-stop financing as they work to continue growing Futurelogic," said American Capital COO Ira Wagner. "This is our fifth new portfolio investment this quarter and we are on track to achieve our 2002 plan."
American Capital has invested over $500 million in middle market companies in the last twelve months.
For more information about American Capital's portfolio click here.
"Futurelogic's gifted management has established the company's technological leadership and dominant market share by leveraging significant barriers to entry: high regulatory thresholds; the need for uniformity in a complex environment within their customer base; and the consistent production of reliable, maintenance free printers," said American Capital Principal and Managing Director Jeri J. Harman. "This was our first opportunity to close a transaction with ClearLight Partners and we look forward working with ClearLight in the future."
Founded in 1983, Glendale, CA based Futurelogic is now the dominant supplier for thermal printers found in cashless slot machines. Recent revenue growth has been strong, more than tripling over the last three years. Company products are also found in medical devices, to print receipts from drug dispensers; in gasoline pumps, to print credit card receipts; and in developing markets, including vending machines that dispense receipts and promotional coupons, and in produce labeling printers, enabling efficient category management that tracks produce from growers to consumers.
"American Capital's ability to invest at all levels of the capital structure was critical to the success of this transaction," said ClearLight General Partner Rob Healy. "We look forward to helping Futurelogic capitalize on its strong growth potential."
For more information about Futurelogic's history of innovation click here.
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.
ClearLight Partners, LLC is a $300 million private equity firm based in Newport Beach, CA that invests in middle market businesses with strong potential for value creation. ClearLight seeks to partner with world class management teams who have a track record of building successful companies within their industry and have the vision to build a market leader.
You Can't Restate a Dividend!
American Capital has declared a $.67 per share dividend to be paid on December 31, 2002 to record holders as of December 12, 2002. This dividend is an 18% increase over the fourth quarter 2001 regular dividend of $0.57 per share. The Company has also declared an extra dividend of $0.02 per share to be paid on January 10, 2003 to record holders as of December 31, 2002. Total dividends paid or declared for 2002 is $2.57, a 12% increase over 2001. American Capital has declared a total of $10.33 in dividends since its August 1997 IPO at $15 per share.
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.
