American Capital Announces the Purchase of 8.9M of Its Shares, Suspends Share Repurchase Program
American Capital, Ltd. (Nasdaq: ACAS) ("American Capital" or the "Company") announced today that in the first quarter of 2014, it made open market purchases of 8.9 million shares of American Capital common stock, or 3.3% of the Company's outstanding shares as of December 31, 2013. The shares were purchased at an average price of $15.38 per share, totaling $137 million.
Starting in the third quarter of 2011, American Capital has made open market purchases of 101.6 million shares, or 29.4% of the Company's outstanding shares as of June 30, 2011, at an average price of $11.74 per share, totaling $1.2 billion. Purchases starting in the third quarter of 2011 through December 2013 were $1.75 per share accretive to the Company's $18.97 net asset value per share ("NAV") as of December 31, 2013. Accretion from the purchases in the first quarter of 2014 will be disclosed in the Company's first quarter earnings release.
These share purchases were completed in accordance with the Company's Share Repurchase and Dividend Policy. The Company's Board of Directors has decided to suspend such purchases for an indefinite period. As previously disclosed in the Company's Annual Report on Form 10‑K filed with the Securities and Exchange Commission for the year ending December 31, 2013, the Company is undertaking a process to evaluate its corporate structure to determine whether that structure and the various legal, regulatory and accounting regimes under which it operates are the optimum means for the operation and capitalization of its business. The Board has determined that it is appropriate to suspend share purchases as it considers the capital requirements of organizational changes that could result from this evaluation.
ABOUT AMERICAN CAPITAL American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $93 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately $9 billion of net book value, American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value and American Capital Senior Floating, Ltd. (Nasdaq: ACSF). From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The statements regarding expected results of American Capital 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, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
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