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Bethesda, MD - August 16, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has committed $22 million to an add-on investment in Futurelogic Inc., a leading designer and developer of thermal printer solutions, supporting ClearLight Partners LLC's refinancing of Futurelogic. Proceeds of the new funding will be used, in part, to repay approximately $11 million in senior notes held by American Capital affiliates. An existing American Capital revolving loan facility will be terminated. American Capital's commitment takes the form of a new revolving loan facility and senior term loans. The net increase in American Capital's investment in Futurelogic is approximately $11 million, for a total of approximately $35 million, including interest that has been paid in kind. American Capital retains an equity interest in Futurelogic. Futurelogic management also retains an equity interest in the company.
"We are pleased to continue our investment in a successful portfolio company," said American Capital COO Ira Wagner. "Our continuing investment in Futurelogic demonstrates our long-term dedication to the growth of our portfolio companies and ability to build on our relationships with private equity sponsors."
American Capital has invested over $1.4 billion in the last twelve months and over $850 million year to date.
For more information about American Capital's portfolio click here.
 American Capital first invested in Futurelogic in December 2002, supporting ClearLight Partners' acquisition with a $27 million investment. Futurelogic, headquartered in Glendale, CA, is a leading designer and developer of customized small format embedded thermal printing solutions, with dominant market share in the gaming industry. Thermal printing is the accepted technology for transaction-based receipt printing, such as a voucher for a slot machine, a bar code label used for tracking purposes and pay-at-the-pump gasoline purchases. Pictured at left is the innovative PSA-66-ST thermal printer, used to produce vouchers in cashless slot machines.
"Having worked with American Capital previously on our initial buyout of Futurelogic in 2002 and then again in our buyout of BLI Holdings, we were confident that we could continue to count on them in this refinancing," said ClearLight Partners CFO Bob Polentz. "Futurelogic is well-positioned to execute its strategy and to continue its rapid, profitable growth."
For more information about Futurelogic's innovative thermal printing solutions click here.
As of July 31, 2004, American Capital shareholders have enjoyed a total return of 257% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.3 billion. American Capital is an investor in and sponsor of 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 and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
ClearLight Partners LLC is a $300 million private equity firm based in Newport Beach, CA. ClearLight portfolio companies include U.S. Education Corporation, a leading career education company with fifteen campuses across the Western U.S., and BLI Holdings Corp., an outsource manufacturer and packager of personal care products, in which American Capital has also invested.
For more information about the BLI transaction click here.
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.
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This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.
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