American Capital Announces Authorization of Reinstatement of Share Repurchases

BETHESDA, Md., March 25, 2015 /PRNewswire/ -- American Capital, Ltd. ("American Capital" or the "Company") (Nasdaq: ACAS) announced today that on February 23, 2015, its Board of Directors reinstated authorization for share repurchases under its Share Repurchase and Dividend Program. American Capital included the written notice to stockholders required by Section 23(c) of the Investment Company Act of 1940 regarding the possibility of share repurchases over the next six months in the Proxy Statement for its 2015 Annual Meeting of Stockholders.  The Company expects to begin considering share repurchases under the Program in the second quarter.

The Board adopted the Program in September 2011, but suspended repurchases in March 2014 as the Company undertook a process to evaluate potential capital requirements that could result from its previously announced plan to consider organizational changes to enhance shareholder value.  On November 5, 2014, the Company announced that its Board had unanimously approved a plan to proceed with the spin-off of new business development companies to its shareholders, with American Capital continuing as a public asset management company.  The Board has since determined that it is appropriate to reinstate authorization for share repurchases while the Company seeks to accomplish the announced spin-off.

Under the Program, starting in the third quarter of 2011 through the first quarter of 2014, American Capital made open market purchases of 101.6 million shares totaling $1.2 billion, or 29.4% of the Company's outstanding shares of common stock as of June 30, 2011.  At an average price of $11.74 per share, these purchases were $1.88 per share accretive to the Company's $19.29 net asset value per share as of March 31, 2014.  

Going forward, under the Program, American Capital will consider quarterly 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 its net asset value per share, 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 its net asset value per share. 

In determining the quarterly amount, the Board of Directors will be guided by American Capital's net cash provided by operating activities in preceding quarters, its capital requirements associated with completion of the spin-off transaction, its cash position, operational issues, economic conditions and the current trading price of American Capital's common stock and other factors.

The Program may be suspended, terminated or modified at any time for any reason. The Program does not obligate American Capital to acquire any specific number of shares of the Company's common stock, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases.  

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 $22 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $86 billion of total assets under management (including levered assets).  Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of total net book value.   From its eight offices in the U.S., Europe and Asia, American Capital and its wholly owned affiliate, European Capital, will consider investment opportunities from $10 million to $600 million.  For further information, please refer to www.AmericanCapital.com.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking information and statements.  Forward-looking statements give our current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business.  You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts.  These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.  Forward looking statements are not guarantees of performance or results, and involve known and unknown risks, uncertainties (some of which are beyond the Company's control), assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  Should one or more of these risks or uncertainties materialize, the Company's actual results may vary in material respects from those projected in any forward-looking statements.  A detailed discussion of these and other factors that may affect future results is contained in our filings with the U.S. Securities and Exchange Commission.  Any forward-looking statement made by the Company in this press release speaks only as of the date on which it is made.  The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact: Investor Relations - (301) 951-5917

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SOURCE American Capital, Ltd.