Bethesda, MD - October 15, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that control of its portfolio company, BLI Holdings Corp., has been sold by Bain Capital LLC to ClearLight Partners LLC. Investor Charles River Partners LLC will retain an equity position in BLI and all present senior managers will remain. BLI was recapitalized as part of the transaction and American Capital was repaid its original $12 million senior subordinated debt investment and $1.4 million of payment-in-kind or PIK interest notes in BLI. ClearLight selected ING Capital and Merrill Lynch Capital as well as American Capital to help finance the recapitalization of BLI, with American Capital investing $17 million in BLI senior subordinated debt in the transaction. BLI is an outsource manufacturer and packager of personal care products.
American Capital earned a 20% compounded annual rate of return on its investment in subordinated notes, including the repayment of all interest and fees received over the life of American Capital's investment in the company. Sale proceeds recognized by American Capital approximated the most recent quarterly valuation of the investment. American Capital first invested in BLI in August 2001.
"BLI has performed very well since our original investment. Our growing reputation among private equity firms allows us to take advantage of opportunities to reinvest in good companies when they are sold," said American Capital COO Ira Wagner. "We are pleased to be working with ClearLight for the second time in the past twelve months, and believe that BLI will continue to prosper under Clearlight's partnership with management."
Over the past six years, IPO-to-date, American Capital's proceeds from exits and prepayments exceeded the associated prior quarter's valuation of the investments by $28 million in aggregate, or 7%. Year-to-date, net realized gains announced by American Capital total $16 million.
American Capital has invested almost $850 million in the past twelve months and more than $650 million this year.
For more information about American Capital's portfolio click here.
"BLI has increased its business with existing customers and added significant new customers since we first invested in the company,C said American Capital Managing Director Jeri Harman. "An important player in the recession resistant personal care product industry with a strong management team and a blue chip customer base, BLI is prepared to meet demands of personal care product companies as they continue to decrease cost levels through outsourcing their product manufacturing."
Founded in 1989 and headquartered in City of Industry, Calif., BLI manufactures and packages personal care products, including lotion, soap, hairspray, shampoo, conditioner and perfume through its two operating subsidiaries, Bocchi Laboratories and Medicia Corporation. The company has experienced strong sales over the past few years, with significant growth over the past year, and has approximately 1,000 employees in five operating facilities located in California and New Jersey. Customers include leading, well recognized personal care companies.
"American Capital's strong, established relationship with BLI and its knowledge of the company made it a compelling partner in this transaction," said ClearLight Partners Managing Partner Michael Kaye. "We are looking forward to expanding our relationship with American Capital as we partner together again and support a growing leader in the personal care product market."
For more information about BLI's superior and flexible manufacturing capabilities and R&D services click here.
Since its August 1997 IPO, American Capital has earned a 19% compounded annual return on 42 exits and prepayments of senior debt, subordinated debt and equity, totaling $457 million, including announced exits through the third quarter of 2003 and the losses noted above. These exits and prepayments represent 20% of all investments made since our August 1997 IPO through the third quarter of 2003. Proceeds from these exits and prepayments exceeded the associated prior quarter's valuation of the investments by $28 million in aggregate, or 7%.
For a chart detailing these exits click here.
As of September 30, 2003, American Capital shareholders have enjoyed a total return of 183% since the Company's IPO -- an annualized return of 19%, assuming reinvestment of dividends. American Capital has paid or declared a total of $12.37 per share in dividends since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $2 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 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. ClearLight portfolio companies include Futurelogic Inc., a leading thermal printing manufacturer with dominant market share in the gaming industry and serving various other markets, in which American Capital has also invested.
Click here for more information about the Futurelogic transaction.
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.
