American Capital (ACAS) Reduces Unsecured Credit Facility's Tangible Net Worth Covenant
American Capital, Ltd. (Nasdaq: ACAS) announced today that it has amended its unsecured credit facility to reduce the facility's minimum tangible net worth covenant to $4.5 billion plus 40% of new issuances of equity and debt converted into equity after Q308. In connection with the amendment, the size of the facility was changed from $1.565 billion to $1.409 billion as of September 29, 2008, and $1.252 billion on December 31, 2009, and the maturity date was revised from May 16, 2012 to March 31, 2011. Interest on borrowings under the amended credit facility will initially be charged at LIBOR plus a spread of 3.25%, up from 0.90% and the unused facility fee increased from 12.5 basis points to 50 basis points.
In addition, American Capital affirmed its FY08 dividend forecast of $4.19 per share and Q408 dividend forecast of $1.10 per share, which is forecasted to be paid as a $1.05 quarterly dividend and a $0.05 bonus dividend. In addition, American Capital reiterates its forecast that it will rollover more than $500 million of ordinary taxable income and net long term capital gains from 2008 to pay 2009 dividends.
American Capital, Ltd., formerly known as American Capital Strategies, Ltd., is a principal investment firm specializing in management and employee private equity buyouts, acquisitions, recapitalizations, mergers and acquisition, add-on acquisitions, securitizations, special situations, growth capital investments in middle market companies, early stage in mature private and public companies, corporate divestitures, acquisitions of portfolio companies of private equity firms, acquisitions of family-owned or closely held businesses, change of control, or the exit of minority shareholders, going private transactions, and ownership transitions.
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