Bethesda, MD - November 6, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it intends to undertake a public offering of 5.6 million shares of its common stock. The net proceeds of the offering will be applied to reduce the borrowings under American Capital's existing revolving credit facility. This will create availability under this facility, which will generally be available for funding future American Capital investments.
Underwriters for the offering will be Wachovia Securities, Citigroup, A.G. Edwards & Sons, Inc. and Legg Mason Wood Walker Incorporated. American Capital expects to grant the underwriters an option to purchase an additional 840,000 shares to cover over-allotments.
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.
All common shares will be offered under American Capital's existing shelf registration statement filed with the Securities and Exchange Commission. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of these securities will be made only by means of a prospectus. When available, copies of the prospectus supplement may be obtained from Wachovia Securities, 7 Saint Paul Street, 1st Floor, Baltimore, MD 21202. 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.
