American Capital Announces Stock Repurchases Policy for Possible Additional Repurchases or Dividends
American Capital (Nasdaq: ACAS) announced today that since early August, it has made open market purchases of 9.1 million shares of American Capital common stock at an average price of $8.21 per share, totaling $75.0 million. American Capital also announced that its Board of Directors has adopted a program that may provide for additional repurchases of shares or dividend payments through December 31, 2012.
With regard to the repurchases completed to date, American Capital repurchased 4.9 million shares at an average price of $8.12 per share in August, totaling $39.8 million, and 4.23 million shares at an average price of $8.31 per share in September through today, totaling $35.2 million.
Under the newly adopted program, quarterly, American Capital will consider setting an amount to be utilized for stock repurchases or dividends. Generally, the amount may be utilized for repurchases if the price of American Capital's common stock represents a discount to the net asset value of its shares, and the amount may be utilized for the payment of cash dividends if the price of American Capital's common stock represents a premium to the net asset value of its shares. In determining the quarterly amount, the Board of Directors will be guided by American Capital's net cash provided by operating activities in the preceding quarter.
As appropriate, the Board of Directors will also consider cash and cash equivalents on hand, debt service considerations, investment plans, its forecast of financial liquidity and economic conditions, operational issues and the current trading price of American Capital's common stock.
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