American Capital Closes $411M Managed CLO

American Capital, Ltd.

("American Capital") announced today that an affiliate, ACAS CLO 2014-2, Ltd. ("ACAS CLO 2014-2"), has closed on the sale of $411 million of collateralized loan obligation ("CLO") bonds. The transaction was arranged by Wells Fargo Securities, LLC. ACAS CLO 2014-2 is externally managed by American Capital CLO Management, LLC, which is a subsidiary of American Capital Asset Management, LLC, a wholly-owned portfolio company of American Capital, for an annual management fee of 50 basis points on total assets. ACAS CLO 2014-2 has invested the proceeds of the bonds primarily in broadly syndicated senior secured floating rate loans purchased in the primary and secondary markets. American Capital Asset Management now manages approximately $2.8 billion of broadly syndicated senior secured floating rate loans in six CLOs and American Capital Senior Floating, Ltd.

, a business development company. "We are pleased to announce our fifth CLO transaction post the credit crisis and our sixth overall," said Mark Pelletier, President of American Capital CLO Management, LLC and President and Chief Investment Officer of American Capital Senior Floating, Ltd. "We are delighted to have again acted as a retention provider in accordance with European risk retention requirements, allowing us to continue to attract repeat as well as new European investors to our CLO platform." The bonds sold by ACAS CLO 2014-2 included tranches rated Aaa(sf) through Ba3(sf) by Moody's, a AAA(sf) tranche rated by Fitch and non‑rated subordinated notes. American Capital CLO Management, LLC purchased $25 million of the non‑rated subordinated notes, with third party investors purchasing the remaining $16 million. The retention of a control equity investment by American Capital CLO Management, LLC is intended to make ACAS CLO 2014-2 compliant with risk retention rules applicable to credit institutions regulated in the European Economic Area. Capital Structure Tranche % of Total Capital Principal Amount ($) Moody's Fitch Spread/Coupon Class A-1 55.0% $226,000,000 Aaa AAA L+160 Class A-2 8.8% $36,000,000 Aaa AAA 3.6340% Class B-1 7.3% $30,000,000 Aa2 NR L+220 Class B-2 1.5% $6,000,000 Aa2 NR 4.5510% Class C 6.6% $27,200,000 A2 NR L+320 Class D 5.8% $24,000,000 Baa3 NR L+390 Class E 5.1% $20,800,000 Ba3 NR L+575 Equity 9.9% $40,796,000 NR NR 100.0% $410,796,000